REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Cumulative Effect of and Impact of Revenue Accounting Changes

The following tables summarize the impacts of adopting the current revenue standard (in thousands, except per share data):

Unaudited Consolidated Balance Sheets at June 30, 2018:



	As reported (current revenue standard)			Current period adjustments			As adjusted (previous revenue standard)
ASSETS
Current assets:
Accounts receivable, net	$	1,715,055		$	(148,982	)	$	1,566,073
Prepaid expenses and other current assets	985,901			37,573			1,023,474

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,053,509		$	(110,170	)	$	943,339
Accrued expenses and other current liabilities	1,418,603			(8,883		)	1,409,720
Deferred merchant bookings	1,802,182			145,297			1,947,479

Deferred income taxes	502,581			(285		)	502,296

Stockholders' equity:
Retained earnings	15,953,078			(139,366		)	15,813,712
Accumulated other comprehensive income (loss)	(76,283		)	1,998			(74,285		)

Unaudited Consolidated Statements of Operations for the Three Months Ended June 30, 2018:



	As reported (current revenue standard)			Current period adjustments			As adjusted (previous revenue standard)

Agency revenues	$	2,566,293		$	(3,309	)	$	2,562,984
Merchant revenues	709,864			40,137			750,001
Advertising and other revenues	260,937			13			260,950
Cost of revenues				44,290			44,290

Operating expenses:
Performance marketing	1,141,893			(1,390		)	1,140,503
Sales and other expenses	203,593			(205		)	203,388
General and administrative	158,753			233			158,986
Foreign currency transactions and other	(15,046		)	(1,066		)	(16,112		)
Income tax expense	231,539			(1,011		)	230,528
Net income	977,372			(6,142		)	971,230
Net income applicable to common stockholders per basic common share	20.34			(0.13		)	20.21
Net income applicable to common stockholders per diluted common share	20.13			(0.13		)	20.00

Unaudited Consolidated Statements of Operations for the Six Months Ended June 30, 2018:



	As reported (current revenue standard)			Current period adjustments			As adjusted (previous revenue standard)

Agency revenues	$	4,679,632		$	52,678		$	4,732,310
Merchant revenues	1,236,331			101,677			1,338,008
Advertising and other revenues	549,332			104			549,436
Cost of revenues				89,950			89,950

Operating expenses:
Performance marketing	2,248,100			1,004			2,249,104
Sales and other expenses	369,393			—			369,393
General and administrative	320,892			1,034			321,926
Foreign currency transactions and other	(23,102		)	789			(22,313		)
Income tax expense	377,666			14,087			391,753
Net income	1,584,582			49,173		⁽¹⁾	1,633,755
Net income applicable to common stockholders per basic common share	32.87			1.02			33.89
Net income applicable to common stockholders per diluted common share	32.42			1.01			33.43

(1) The current period adjustment represents the net income recorded directly to retained earnings on January 1, 2018 of $188.5 million that would have been recognized in the first quarter of 2018 under the previous revenue standard, partially offset by $139.4 million that would have been recognized in the third quarter of 2018 under the previous revenue standard.

The cumulative effects of the revenue accounting changes on the Company's Unaudited Consolidated Balance Sheet as of January 1, 2018 were as follows (in thousands):



	Balance at December 31, 2017		Adjustments			Balance at January 1, 2018
ASSETS
Current assets:
Accounts receivable, net	$	1,217,801	$	205,324		$	1,423,125

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	667,523	$	171,644		$	839,167
Accrued expenses and other current liabilities	1,138,980		44,374			1,183,354
Deferred merchant bookings	980,455		(201,647		)	778,808

Deferred income taxes	481,139		2,414			483,553

Stockholders' equity:
Retained earnings	13,938,869		188,539			14,127,408

Geographic Information

The Company's geographic information is as follows (in thousands):



				International
Total revenues for the Three Months Ended June 30,	United States			The Netherlands		Other		Total
2018	$	423,267	⁽¹⁾	$	2,706,702	$	407,125	$	3,537,094	⁽¹⁾
2017	422,307		⁽²⁾	2,278,255		323,994		3,024,556		⁽²⁾

(1) Total revenues have been reduced for cost of revenues for NYOP transactions of $44.3 million in 2018.

(2) Total revenues have not been reduced for cost of revenues for NYOP transactions of $67.4 million in 2017.



				International
Total revenues for the Six Months Ended June 30,	United States			The Netherlands		Other		Total
2018	$	801,958	⁽¹⁾	$	4,829,426	$	833,911	$	6,465,295	⁽¹⁾
2017	821,492		⁽²⁾	3,965,558		656,910		5,443,960		⁽²⁾

(1) Total revenues have been reduced for cost of revenues for NYOP transactions of $90.0 million in 2018.

(2) Total revenues have not been reduced for the cost of revenues for NYOP transactions of $147.8 million