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, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	1,977		$	8,396		$	14,928	$	25,301
Intersegment revenues	10			(18		)	8		—
Total net revenues	1,987			8,378			14,936		25,301
Operating profit (loss)	$	(1,600	)	$	940		$	1,374	$	714



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



Nine Months Ended September 30, 2018	Asia Pacific			Europe			North America		Consolidated
Revenues from unaffiliated customers	$	6,092		$	27,255		$	50,913	$	84,260
Intersegment revenues	(19		)	(97		)	116		—
Total net revenues	6,073			27,158			51,029		84,260
Operating profit (loss)	$	(4,812	)	$	3,347		$	6,914	$	5,449



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



As of September 30, 2018	Asia Pacific		Europe		North America		Elimination			Consolidated
Long-lived assets	$	158	$	344	$	3,619	$	—		$	4,121
Total assets	$	3,565	$	57,551	$	62,980	$	(82,794	)	$	41,302



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 September 30, 2018 and 2017, the Company did not have any customers that accounted for 10% or more of revenue. As of September 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				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Asia Pacific
Travel	$	1,851	$	1,644	$	5,682	$	5,170
Local	136		129		391		366
Total Asia Pacific revenues	$	1,987	$	1,773	$	6,073	$	5,536
Europe
Travel	$	7,387	$	7,052	$	23,849	$	21,852
Local	991		894		3,309		3,062
Total Europe revenues	$	8,378	$	7,946	$	27,158	$	24,914
North America
Travel	$	12,224	$	12,146	$	42,856	$	40,916
Local	2,712		2,822		8,173		8,161
Total North America revenues	$	14,936	$	14,968	$	51,029	$	49,077
Consolidated
Travel	$	21,462	$	20,842	$	72,387	$	67,938
Local	3,839		3,845		11,873		11,589
Total revenues	$	25,301	$	24,687	$	84,260	$	79,527

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,
	2018		2017		2018		2017
Revenue
United States	$	13,472	$	13,658	$	46,564	$	45,127
United Kingdom	4,921		4,483		15,940		14,136
Germany	2,832		2,881		9,123		9,047
Rest of the world	4,076		3,665		12,633		11,217
Total revenues	$	25,301	$	24,687	$	84,260	$	79,527

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



	September 30,		December 31,
	2018		2017
United States	$	3,619	$	3,893
Rest of the world	502		1,028
Total long lived assets	$	4,121	$	4,921