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 September 30, 2017	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	1,767		$	8,008		$	14,912	$	24,687
Intersegment revenues	6			(62		)	56		—
Total net revenues	1,773			7,946			14,968		24,687
Operating profit (loss)	$	(1,679	)	$	309		$	1,388	$	18



Three Months Ended September 30, 2016	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	2,521		$	8,614		$	15,688	$	26,823
Intersegment revenues	36			(140		)	104		—
Total net revenues	2,557			8,474			15,792		26,823
Operating profit (loss)	$	(798	)	$	1,412		$	1,261	$	1,875




Nine Months Ended September 30, 2017	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	5,574		$	25,231		$	48,722	$	79,527
Intersegment revenues	(38		)	(317		)	355		—
Total net revenues	5,536			24,914			49,077		79,527
Operating profit (loss)	$	(4,385	)	$	1,526		$	6,325	$	3,466




Nine Months Ended September 30, 2016	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	7,173		$	28,893		$	51,384	$	87,450
Intersegment revenues	78			(403		)	325		—
Total net revenues	7,251			28,490			51,709		87,450
Operating profit (loss)	$	(3,080	)	$	5,022		$	6,216	$	8,158



As of September 30, 2017	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	151	$	577	$	4,537	$	—		$	5,265
Total assets	$	3,490	$	49,721	$	60,473	$	(70,520	)	$	43,164



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 nine months ended September 30, 2017 and 2016, the Company did not have any customers that accounted for 10% or more of revenue. As of September 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), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Asia Pacific
Travel	$	1,644	$	2,334	$	5,170	$	6,582
Local	129		223		366		669
Total Asia Pacific revenues	$	1,773	$	2,557	$	5,536	$	7,251
Europe
Travel	$	7,052	$	7,357	$	21,852	$	24,440
Local	894		1,117		3,062		4,050
Total Europe revenues	$	7,946	$	8,474	$	24,914	$	28,490
North America
Travel	$	12,146	$	12,494	$	40,916	$	41,490
Local	2,822		3,298		8,161		10,219
Total North America revenues	$	14,968	$	15,792	$	49,077	$	51,709
Consolidated
Travel	$	20,842	$	22,185	$	67,938	$	72,512
Local	3,845		4,638		11,589		14,938
Total revenues	$	24,687	$	26,823	$	79,527	$	87,450

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				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenue
United States	$	13,658	$	14,467	$	45,127	$	47,845
United Kingdom	4,483		4,994		14,136		17,518
Germany	2,881		3,042		9,047		9,436
Rest of the world	3,665		4,320		11,217		12,651
Total revenues	$	24,687	$	26,823	$	79,527	$	87,450

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



	September 30,		December 31,
	2017		2016
United States	$	4,124	$	4,755
Rest of the world	1,141		1,403
Total long lived assets	$	5,265	$	6,158