Segments

The Company manages its business geographically and has two reportable operating segments: North America and Europe. North America consists of the Company’s operations in Canada and the U.S. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K.

Management relies on an internal management reporting process that provides revenue and segment operating income (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating income (loss) are appropriate measures of evaluating the operational performance of the Company’s segments.

The following is a summary of operating results from continuing operations and assets (in thousands) by business segment:



Three Months Ended June 30, 2013	North America		Europe		Elimination			Consolidated
Revenues from unaffiliated customers	$	30,249	$	11,078	$	—		$	41,327
Intersegment revenues	331		222		(553		)	—
Total net revenues	30,580		11,300		(553		)	41,327
Operating income	$	5,899	$	1,895	$	—		$	7,794



Three Months Ended June 30, 2012	North America		Europe		Elimination			Consolidated
Revenues from unaffiliated customers	$	28,712	$	10,648	$	—		$	39,360
Intersegment revenues	205		21		(226		)	—
Total net revenues	28,917		10,669		(226		)	39,360
Operating income	$	7,831	$	2,535	$	—		$	10,366




Six Months Ended June 30, 2013	North America		Europe		Elimination			Consolidated
Revenues from unaffiliated customers	$	60,160	$	23,344	$	—		$	83,504
Intersegment revenues	575		330		(905		)	—
Total net revenues	60,735		23,674		(905		)	83,504
Operating income	$	11,382	$	4,447	$	—		$	15,829




Six Months Ended June 30, 2012	North America		Europe		Elimination and Other (a)			Consolidated
Revenues from unaffiliated customers	$	57,268	$	21,425	$	—		$	78,693
Intersegment revenues	470		31		(501		)	—
Total net revenues	57,738		21,456		(501		)	78,693
Operating income	$	14,972	$	4,965	$	(3,000	)	$	16,937


(a)	Amount represents a charge related to unexchanged promotional merger shares of $3.0 million for the six months ended June 30, 2012.



As of June 30, 2013	North America		Europe		Elimination			Consolidated
Long-lived assets	$	4,550	$	1,916	$	—		$	6,466
Total assets	$	103,873	$	37,429	$	(30,983	)	$	110,319



As of December 31, 2012	North America		Europe		Elimination			Consolidated
Long-lived assets	$	3,389	$	1,911	$	—		$	5,300
Total assets	$	92,139	$	36,595	$	(30,901	)	$	97,833

Revenue for each segment is recognized based on the customer location within a designated geographic region. Property and equipment are attributed to the geographic region in which the assets are located.

For the three and six months ended June 30, 2013 and 2012, the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 2013 and December 31, 2012, the Company did not have any customers that accounted for 10% or more of accounts receivable.

The following table sets forth the breakdown of revenues (in thousands) by type and segment for the three and six months ended June 30, 2013 and 2012. Travel revenue includes travel publications (Top 20, Website, Newsflash, Travelzoo Network) and Getaways vouchers. Search revenue includes SuperSearch and Fly.com. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
North America
Travel	$	16,463	$	14,591	$	33,953	$	30,137
Search	5,980		5,985		11,683		11,990
Local	7,806		8,136		14,524		15,141
Total North America revenues	$	30,249	$	28,712	$	60,160	$	57,268
Europe
Travel	$	8,182	$	7,543	$	17,474	$	14,936
Search	840		1,012		1,710		2,302
Local	2,056		2,093		4,160		4,187
Total Europe revenues	$	11,078	$	10,648	$	23,344	$	21,425
Consolidated
Travel	$	24,645	$	22,134	$	51,427	$	45,073
Search	6,820		6,997		13,393		14,292
Local	9,862		10,229		18,684		19,328
Total revenues	$	41,327	$	39,360	$	83,504	$	78,693