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 March 31, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	2,042		$	10,332		$	18,510	$	30,884
Intersegment revenues	(20		)	(52		)	72		—
Total net revenues	2,022			10,280			18,582		30,884
Operating profit (loss)	$	(1,740	)	$	1,966		$	3,431	$	3,657



Three Months Ended March 31, 2017	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	1,844		$	9,218		$	17,367	$	28,429
Intersegment revenues	(31		)	(147		)	178		—
Total net revenues	1,813			9,071			17,545		28,429
Operating profit (loss)	$	(1,541	)	$	949		$	2,654	$	2,062



As of March 31, 2018	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	130	$	448	$	4,063	$	—		$	4,641
Total assets	$	3,799	$	55,202	$	63,657	$	(76,022	)	$	46,636



As of December 31, 2017	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	140	$	496	$	4,285	$	—		$	4,921
Total assets	$	3,697	$	54,593	$	60,246	$	(72,864	)	$	45,672

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 months ended March 31, 2018 and 2017, the Company did not have any customers that accounted for 10% or more of revenue. As of March 31, 2018 and December 31, 2017, 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 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
	March 31,
	2018		2017
Asia Pacific
Travel	$	1,901	$	1,668
Local	121		145
Total Asia Pacific revenues	$	2,022	$	1,813
Europe
Travel	$	9,053	$	8,005
Local	1,227		1,066
Total Europe revenues	$	10,280	$	9,071
North America
Travel	$	16,036	$	14,859
Local	2,546		2,686
Total North America revenues	$	18,582	$	17,545
Consolidated
Travel	$	26,990	$	24,532
Local	3,894		3,897
Total revenues	$	30,884	$	28,429

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
	March 31,
	2018		2017
Revenue
United States	$	17,118	$	16,226
United Kingdom	5,860		4,950
Germany	3,659		3,506
Rest of the world	4,247		3,747
Total revenues	$	30,884	$	28,429

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



	March 31,		December 31,
	2018		2017
United States	$	3,698	$	3,893
Rest of the world	943		1,028
Total long lived assets	$	4,641	$	4,921