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, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	2,073		$	8,527		$	17,475	$	28,075
Intersegment revenues	(9		)	(27		)	36		—
Total net revenues	2,064			8,500			17,511		28,075
Operating profit (loss)	$	(1,472	)	$	441		$	2,109	$	1,078



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



Six Months Ended June 30, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	4,115		$	18,859		$	35,985	$	58,959
Intersegment revenues	(29		)	(79		)	108		—
Total net revenues	4,086			18,780			36,093		58,959
Operating profit (loss)	$	(3,212	)	$	2,407		$	5,540	$	4,735



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



As of June 30, 2018	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	163	$	376	$	3,989	$	—		$	4,528
Total assets	$	4,771	$	55,426	$	65,654	$	(80,205	)	$	45,646



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 June 30, 2018 and 2017, the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Asia Pacific
Travel	$	1,930	$	1,858	$	3,831	$	3,525
Local	134		92		255		238
Total Asia Pacific revenues	$	2,064	$	1,950	$	4,086	$	3,763
Europe
Travel	$	7,409	$	6,795	$	16,462	$	14,801
Local	1,091		1,102		2,318		2,167
Total Europe revenues	$	8,500	$	7,897	$	18,780	$	16,968
North America
Travel	$	14,596	$	13,911	$	30,632	$	28,769
Local	2,915		2,653		5,461		5,340
Total North America revenues	$	17,511	$	16,564	$	36,093	$	34,109
Consolidated
Travel	$	23,935	$	22,564	$	50,925	$	47,095
Local	4,140		3,847		8,034		7,745
Total revenues	$	28,075	$	26,411	$	58,959	$	54,840

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,
	2018		2017		2018		2017
Revenue
United States	$	15,974	$	15,244	$	33,092	$	31,469
United Kingdom	5,159		4,703		11,019		9,623
Germany	2,632		2,659		6,291		6,165
Rest of the world	4,310		3,805		8,557		7,583
Total revenues	$	28,075	$	26,411	$	58,959	$	54,840

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



	June 30,		December 31,
	2018		2017
United States	$	3,989	$	3,893
Rest of the world	539		1,028
Total long lived assets	$	4,528	$	4,921