Segment Reporting and Significant Customer Information

The Company manages its business geographically and has three reportable operating segments: Asia Pacific, Europe and North America. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. North America consists of the Company’s operations in Canada and the U.S.

Management relies on an internal management reporting process that provides revenue and segment operating profit (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating profit (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. These segment disclosures have been adjusted to remove the revenue and operating profit (loss) related to discontinued operations in the current and prior periods. See "Note 9: Discontinued Operations" for further information.

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



Three Months Ended June 30, 2017	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	1,963		$	8,005		$	16,443	$	26,411
Intersegment revenues	(13		)	(108		)	121		—
Total net revenues	1,950			7,897			16,564		26,411
Operating profit (loss)	$	(1,165	)	$	268		$	2,283	$	1,386



Three Months Ended June 30, 2016	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	2,401		$	9,638		$	17,759	$	29,798
Intersegment revenues	37			(181		)	144		—
Total net revenues	2,438			9,457			17,903		29,798
Operating profit (loss)	$	(1,233	)	$	1,704		$	2,966	$	3,437




Six Months Ended June 30, 2017	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	3,807		$	17,223		$	33,810	$	54,840
Intersegment revenues	(44		)	(255		)	299		—
Total net revenues	3,763			16,968			34,109		54,840
Operating profit (loss)	$	(2,706	)	$	1,217		$	4,937	$	3,448




Six Months Ended June 30, 2016	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	4,651		$	20,279		$	35,696	$	60,626
Intersegment revenues	42			(264		)	222		—
Total net revenues	4,693			20,015			35,918		60,626
Operating profit (loss)	$	(2,282	)	$	3,611		$	4,954	$	6,283



As of June 30, 2017	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	181	$	655	$	4,582	$	—		$	5,418
Total assets	$	4,055	$	47,398	$	63,099	$	(68,712	)	$	45,840



As of December 31, 2016	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	209	$	763	$	5,186	$	—		$	6,158
Total assets	$	5,295	$	49,125	$	65,961	$	(66,851	)	$	53,530

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. Revenues from unaffiliated customers excludes intersegment revenues and represents revenue with parties unaffiliated with Travelzoo and its wholly owned subsidiaries.

For the three and six months ended June 30, 2017 and 2016, the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 2017, the Company did not have any customers that accounted for 10% or more of accounts receivable. As of December 31, 2016, the Company had one customer that accounted for 16% of accounts receivable.

The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications (Top 20, Website, Newsflash, Travelzoo Network), Getaways vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Asia Pacific
Travel	$	1,858	$	2,220	$	3,525	$	4,247
Local	92		218		238		446
Total Asia Pacific revenues	$	1,950	$	2,438	$	3,763	$	4,693
Europe
Travel	$	6,795	$	8,075	$	14,801	$	17,082
Local	1,102		1,382		2,167		2,933
Total Europe revenues	$	7,897	$	9,457	$	16,968	$	20,015
North America
Travel	$	13,911	$	14,240	$	28,769	$	28,997
Local	2,653		3,663		5,340		6,921
Total North America revenues	$	16,564	$	17,903	$	34,109	$	35,918
Consolidated
Travel	$	22,564	$	24,535	$	47,095	$	50,326
Local	3,847		5,263		7,745		10,300
Total revenues	$	26,411	$	29,798	$	54,840	$	60,626

Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. The following table sets forth revenue for countries that exceed 10% of total revenue (in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Revenue
United States	$	15,244	$	16,585	$	31,469	$	33,378
United Kingdom	4,703		5,908		9,623		12,524
Germany	2,659		3,005		6,165		6,394
Rest of the world	3,805		4,300		7,583		8,330
Total revenues	$	26,411	$	29,798	$	54,840	$	60,626

The following table sets forth long lived asset by geographic area (in thousands):



	June 30,		December 31,
	2017		2016
United States	$	4,171	$	4,755
Rest of the world	1,247		1,403
Total long lived assets	$	5,418	$	6,158