Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

SEGMENT INFORMATION [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Revenue and profit or loss information by reportable segment reconciled to consolidated net (loss) income for the three and nine months ended September 30, 2013 and 2012 were as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
North America
Revenue(1)	$	360,838		$	291,603		$	1,077,574		$	790,349
Segment cost of revenue and operating expenses(2)	335,670			252,510			962,532			667,655
Segment operating income(2)	25,168			39,093			115,042			122,694
EMEA
Revenue(3)	147,950			187,287			491,710			629,198
Segment cost of revenue and operating expenses(2)	132,346			158,179			417,222			531,968
Segment operating income(2)	15,604			29,108			74,488			97,230
Rest of World
Revenue	86,271			89,662			235,924			276,623
Segment cost of revenue and operating expenses(2)	87,890			107,375			276,105			306,535
Segment operating loss(2)	(1,619		)	(17,713		)	(40,181		)	(29,912		)
Consolidated
Revenue	595,059			568,552			1,805,208			1,696,170
Segment cost of revenue and operating expenses(2)	555,906			518,064			1,655,859			1,506,158
Segment operating income(2)	39,153			50,488			149,349			190,012
Stock-based compensation	26,870			22,619			89,223			77,706
Acquisition-related (benefit) expense, net	(1,529		)	2,431			(2,276		)	744
Loss on equity method investments	25			138			58			8,694
Other (income) expense, net	(857		)	(617		)	9,772			(54,445		)
Income before provision for income taxes	14,644			25,917			52,572			157,313
Provision for income taxes	15,936			26,857			62,657			128,297
Net (loss) income	$	(1,292	)	$	(940	)	$	(10,085	)	$	29,016

(1) North America contains revenue from the United States of $349.1 million and $278.5 million for the three months ended September 30, 2013 and 2012, respectively, and $1,039.7 million and $746.8 million for the nine months ended September 30, 2013 and 2012, respectively.

(2) Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related (benefit) expense, net. This presentation corresponds to the measure of segment profit or loss that the Company's chief operating decision maker uses in assessing segment performance and making resource allocation decisions. For the three months ended September 30, 2013 and 2012, stock-based compensation expense was approximately $21.1 million and $13.1 million, respectively, for the North America segment, approximately $2.6 million and $3.8 million, respectively, for the EMEA segment and approximately $3.2 million and $5.8 million, respectively, for the Rest of World segment. For the three months ended September 30, 2013 and 2012, acquisition-related (benefit) expense, net was approximately $1.0 million and $1.6 million of benefit, respectively, for the North America segment and approximately $0.5 million of benefit and $4.1 million of expense, respectively, for the EMEA segment. For the nine months ended September 30, 2013 and 2012, stock-based compensation expense was approximately $69.5 million and $48.2 million, respectively, for the North America segment, approximately $9.1 million and $10.3 million, respectively, for the EMEA segment and approximately $10.6 million and $19.2 million, respectively, for the Rest of World segment. For the nine months ended September 30, 2013 and 2012, acquisition-related (benefit) expense, net was approximately $1.4 million and $2.7 million of benefit, respectively, for the North America segment and approximately $0.9 million of benefit and $3.5 million of expense, respectively, for the EMEA segment. Acquisition-related (benefit) expense, net for the North America segment includes gains and losses relating to contingent consideration obligations incurred by U.S. legal entities relating to purchases of businesses that became part of the EMEA and Rest of World segments, which is consistent with the attribution used for internal reporting purposes.

(3) EMEA segment revenue for the three and nine months ended September 30, 2012 included an $18.5 million one-time increase to third party revenue for unredeemed vouchers ("Groupons") in Germany, which represented the cumulative impact of deals in that jurisdiction for which, based on a German tax ruling, the Company's obligation to the merchant would have ended prior to the quarter ended September 30, 2012.

Schedule of Segment Assets [Table Text Block]

The following table summarizes the Company's total assets by reportable segment as of September 30, 2013 and December 31, 2012 (in thousands):

	September 30, 2013		December 31, 2012
North America (1)	$	1,186,467	$	1,177,314
EMEA	599,523		649,978
Rest of World	164,550		204,182
Consolidated total assets	$	1,950,540	$	2,031,474

(1) North America contains assets from the United States of $1,144.6 million and $1,112.6 million as of September 30, 2013 and December 31, 2012, respectively. There were no other individual countries located outside of the United States that represented more than 10% of consolidated total assets as of September 30, 2013 or December 31, 2012.

Revenue by Segment and Category [Table Text Block]

The following table summarizes the Company's third party and other and direct revenue by category for its three reportable segments for the nine months ended September 30, 2013 and 2012 (in thousands):

	North America				EMEA				Rest of World				Consolidated
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012		2013		2012		2013		2012
Local (1):
Third party	$	503,899	$	510,310	$	311,644	$	399,153	$	139,915	$	172,058	$	955,458	$	1,081,521
Direct	1,733		12,037		—		—		—		—		1,733		12,037
Total revenue	505,632		522,347		311,644		399,153		139,915		172,058		957,191		1,093,558
Goods:
Third party	11,794		48,392		110,821		137,322		50,262		62,217		172,877		247,931
Direct	511,357		181,664		18,903		27,373		20,249		4,241		550,509		213,278
Total revenue	523,151		230,056		129,724		164,695		70,511		66,458		723,386		461,209
Travel and other:
Third party and other	48,791		37,946		50,342		61,097		25,498		38,107		124,631		137,150
Direct	—		—		—		4,253		—		—		—		4,253
Total revenue	48,791		37,946		50,342		65,350		25,498		38,107		124,631		141,403
Total revenue	$	1,077,574	$	790,349	$	491,710	$	629,198	$	235,924	$	276,623	$	1,805,208	$	1,696,170

(1) Includes revenue from deals with local merchants, from deals with national merchants, and through local events (i.e., GrouponLive deals).

The following table summarizes the Company's third party and other and direct revenue by category for its three reportable segments for the three months ended September 30, 2013 and 2012 (in thousands):

	North America				EMEA				Rest of World				Consolidated
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2013		2012		2013		2012		2013		2012		2013		2012
Local (1):
Third party	$	158,189	$	134,993	$	91,448	$	109,552	$	51,507	$	54,632	$	301,144	$	299,177
Direct	1,040		6,450		—		—		—		—		1,040		6,450
Total revenue	159,229		141,443		91,448		109,552		51,507		54,632		302,184		305,627
Goods:
Third party	3,999		13,064		32,008		49,649		17,215		21,661		53,222		84,374
Direct	181,915		126,608		9,271		9,880		7,846		2,050		199,032		138,538
Total revenue	185,914		139,672		41,279		59,529		25,061		23,711		252,254		222,912
Travel and other:
Third party and other	15,695		10,488		15,223		18,206		9,703		11,319		40,621		40,013
Direct	—		—		—		—		—		—		—		—
Total revenue	15,695		10,488		15,223		18,206		9,703		11,319		40,621		40,013
Total revenue	$	360,838	$	291,603	$	147,950	$	187,287	$	86,271	$	89,662	$	595,059	$	568,552

(1) Includes revenue from deals with local merchants, from deals with national merchants, and through local events (i.e., GrouponLive deals).

Gross Profit by Segment and Category [Table Text Block]

The following table summarizes the Company's gross profit by category for its three reportable segments for the three months ended September 30, 2013 and 2012 (in thousands):

	North America					EMEA				Rest of World					Consolidated
	Three Months Ended September 30,					Three Months Ended September 30,				Three Months Ended September 30,					Three Months Ended September 30,
	2013			2012		2013		2012		2013		2012			2013			2012
Local (1):
Third party	$	139,204		$	121,817	$	81,194	$	99,136	$	44,104	$	41,319		$	264,502		$	262,272
Direct	(847		)	1,219		—		—		—		—			(847		)	1,219
Total gross profit	138,357			123,036		81,194		99,136		44,104		41,319			263,655			263,491
Goods:
Third party	3,519			11,789		28,036		44,928		11,530		15,680			43,085			72,397
Direct	18,090			16,279		907		2,035		486		(2,158		)	19,483			16,156
Total gross profit	21,609			28,068		28,943		46,963		12,016		13,522			62,568			88,553
Travel and other:
Third party and other	11,603			9,464		13,544		16,475		8,252		8,783			33,399			34,722
Direct	—			—		—		—		—		—			—			—
Total gross profit	11,603			9,464		13,544		16,475		8,252		8,783			33,399			34,722
Total gross profit	$	171,569		$	160,568	$	123,681	$	162,574	$	64,372	$	63,624		$	359,622		$	386,766

(1) Includes gross profit from deals with local merchants, from deals with national merchants, and through local events (i.e., GrouponLive deals).

The following table summarizes the Company's gross profit by category for its three reportable segments for the nine months ended September 30, 2013 and 2012 (in thousands):

	North America					EMEA					Rest of World					Consolidated
	Nine Months Ended September 30,					Nine Months Ended September 30,					Nine Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012		2013		2012			2013			2012
Local (1):
Third party	$	439,181		$	409,642	$	276,300		$	361,963	$	118,627	$	133,735		$	834,108		$	905,340
Direct	(790		)	1,909		—			—		—		—			(790		)	1,909
Total gross profit	438,391			411,551		276,300			361,963		118,627		133,735			833,318			907,249
Goods:
Third party	10,317			38,346		96,264			124,550		27,507		48,006			134,088			210,902
Direct	50,725			23,402		(239		)	3,009		187		(1,915		)	50,673			24,496
Total gross profit	61,042			61,748		96,025			127,559		27,694		46,091			184,761			235,398
Travel and other:
Third party and other	39,078			30,450		44,608			55,411		21,560		30,665			105,246			116,526
Direct	—			—		—			529		—		—			—			529
Total gross profit	39,078			30,450		44,608			55,940		21,560		30,665			105,246			117,055
Total gross profit	$	538,511		$	503,749	$	416,933		$	545,462	$	167,881	$	210,491		$	1,123,325		$	1,259,702

(1) Includes gross profit from deals with local merchants, from deals with national merchants, and through local events (i.e., GrouponLive deals).