Segment Reporting and Significant Customer Information

The Company determines its reportable segments based upon the Company's chief operating decision maker managing the performance of the business. Historically, the Company managed its business geographically and operated in three reportable segments including Asia Pacific, Europe and North America. During the three months ended March 31, 2020, the Company classified the results of its Asia Pacific segment as discontinued operations in its condensed consolidated financial statements for current and prior periods presented. On January 13, 2020, Travelzoo agreed to the SPA with the Seller of Jack’s Flight Club to purchase 60% of the Shares. Upon acquisition, the Company's chief operating decision maker reviewed and evaluated JFC as a separate segment. The Company currently has three reportable operating segments: North America, Europe and Jack’s Flight Club. North America consists of the Company’s operations in Canada and the U.S. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications.

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.

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



Three Months Ended March 31, 2020	North America			Europe			Jack’s Flight Club			Elimination			Consolidated
Revenues from unaffiliated customers	$	12,549		$	7,103		$	683		$	(8	)	$	20,327
Intersegment revenues (expenses)	148			(156		)	—			8			—
Total net revenues	12,697			6,947			683			—			20,327
Operating profit (loss)	$	(976	)	$	(1,341	)	$	(3,015	)	$	(8	)	$	(5,340	)



Three Months Ended March 31, 2019	North America		Europe			Jack’s Flight Club		Elimination			Consolidated
Revenues from unaffiliated customers	$	18,136	$	11,054		$	—	$	(30	)	$	29,160
Intersegment revenues (expenses)	451		(481		)	—		30			—
Total net revenues	18,587		10,573			—		—			29,160
Operating profit (loss)	$	4,463	$	2,137		$	—	$	(30	)	$	6,570

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 the Company and its wholly owned subsidiaries.

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



As of March 31, 2020	North America		Europe		Jack’s Flight Club		Elimination			Consolidated
Long-lived assets	$	1,659	$	305	$	—	$	—		$	1,964
Total assets exclude discontinued operations	$	76,200	$	67,677	$	17,565	$	(102,899	)	$	58,543



As of December 31, 2019	North America		Europe		Elimination			Consolidated
Long-lived assets	$	2,598	$	263	$	—		$	2,861
Total assets exclude discontinued operations	$	66,057	$	74,604	$	(90,084	)	$	50,577

For the three months ended March 31, 2020 and 2019, the Company did not have any customers that accounted for 10% or more of revenue. As of March 31, 2020 and December 31, 2019, 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), Getaways vouchers, and hotel platform and vacation packages. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).



	Three Months Ended
	March 31,
	2020		2019
North America
Travel	$	11,156	$	16,317
Local	1,541		2,270
Total North America revenues	$	12,697	$	18,587
Europe
Travel	$	6,237	$	9,512
Local	710		1,061
Total Europe revenues	$	6,947	$	10,573
Jack’s Flight Club	$	683	$	—
Consolidated
Travel	$	17,393	$	25,829
Local	2,251		3,331
Jack’s Flight Club	683		—
Total revenues	$	20,327	$	29,160

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,
	2020		2019
Revenue
United States	$	11,515	$	16,895
United Kingdom	5,113		5,859
Germany	2,015		3,641
Rest of the world	1,684		2,765
Total revenues	$	20,327	$	29,160

The following table sets forth property and equipment by geographic area (in thousands):



	March 31,		December 31,
	2020		2019
United States	$	1,454	$	2,359
Rest of the world	510		502
Total long-lived assets	$	1,964	$	2,861