ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES EXCHANGE ACT OF 1934
|
For the fiscal year ended December 31, 2014
|
|
OR
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ________________ to ________________
|
Delaware
|
|
27-0903295
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
|
|
|
600 West Chicago Avenue, Suite 400
Chicago, Illinois
|
|
60654
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Class A Common Stock, par value $0.0001
|
|
Nasdaq Global Select Market
|
Yes
x
|
No
|
PART I
|
Page
|
Forward-Looking Statements
|
|
Item 1. Business
|
|
Item 1A. Risk Factors
|
|
Item 1B. Unresolved Staff Comments
|
|
Item 2. Properties
|
|
Item 3. Legal Proceedings
|
|
Item 4. Mine Safety Disclosures
|
|
PART II
|
|
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Item 6. Selected Financial Data
|
|
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 7A. Quantitative and Qualitative Disclosure about Market Risk
|
|
Item 8. Financial Statements and Supplementary Data
|
|
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
|
Item 9A. Controls and Procedures
|
|
Item 9B. Other Information
|
|
PART III
|
|
Item 10. Directors, Executive Officers and Corporate Governance
|
|
Item 11. Executive Compensation
|
|
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|
Item 13. Certain Relationships and related Transactions, and Director Independence
|
|
Item 14. Principal Accountant Fees and Services
|
|
Part IV
|
|
Item 15. Exhibits and Financial Statement Schedule
|
•
|
Gross billings increased to
$7.6 billion
in 2014, as compared to
$5.8 billion
in 2013. In 2014,
43.6%
,
27.0%
and
29.4%
of our gross billings were generated in North America, EMEA and Rest of World, respectively, as compared to
49.5%
,
34.5%
and
16.0%
in 2013. Gross billings represent the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. Gross billings differs from our revenue, which is presented net of the merchant's share of the transaction price for transactions in which we act as a third party marketing agent. Gross billings and revenue are the same for transactions in which we sell merchandise directly to customers as the merchant of record.
|
•
|
Revenue increased to
$3.2 billion
in 2014, as compared to
$2.6 billion
in 2013. In 2014,
57.2%
,
30.1%
and
12.7%
of our revenue was generated in North America, EMEA and Rest of World, respectively, as compared to
59.1%
,
28.9%
and
12.0%
in 2013.
|
•
|
Gross profit increased to
$1,549.2 million
in 2014, as compared to
$1,501.5 million
in 2013.
|
•
|
Loss from operations was
$14.8 million
in 2014, compared to
$75.8 million
of income from operations in 2013.
|
•
|
The number of active customers, which is defined as customers who have made a purchase on our platform within the last twelve months, increased to 53.9 million as o
f December 31, 2014
from 43.7 million as of December 31, 2013
.
|
•
|
As of December 31, 2014, we had approximately 370,000 active deals available to customers through our marketplaces.
|
North America
|
1,369
|
EMEA
|
1,896
|
Rest of World
|
1,719
|
Total
|
4,984
|
•
|
size of active customer base and breadth merchant relationships;
|
•
|
mobile penetration;
|
•
|
understanding of local business trends;
|
•
|
ability to structure deals to generate positive return on investment for merchants; and
|
•
|
strength and recognition of brand.
|
Name
|
|
Age
|
Position
|
||||||||||
|
|
|
|||||||||||
Eric Lefkofsky
|
45
|
Co-Founder, Chief Executive Officer and Director
|
|||||||||||
Jason Child
|
46
|
Chief Financial Officer
|
|||||||||||
Dane Drobny
|
47
|
General Counsel and Corporate Secretary
|
|||||||||||
Sri Viswanath
|
39
|
Chief Technology Officer
|
|||||||||||
Brian Stevens
|
40
|
Chief Accounting Officer
|
•
|
acquire new customers and retain existing customers;
|
•
|
attract new merchants and retain existing merchants who wish to offer deals through the sale of Groupons;
|
•
|
effectively address and respond to challenges in international markets;
|
•
|
expand the number, variety and relevance of products and deals we offer, particularly as we attempt to build a more complete local marketplace;
|
•
|
continue to achieve mobile adoption as customer usage continues to shift toward mobile devices;
|
•
|
increase the awareness of our brand domestically and internationally;
|
•
|
successfully achieve the anticipated benefits of business combinations or acquisitions;
|
•
|
provide a superior customer service experience for our customers and merchants;
|
•
|
avoid interruptions to our services, including as a result of cybersecurity breaches;
|
•
|
respond to changes in consumer and merchant access to and use of the Internet and mobile devices;
|
•
|
react to challenges from existing and new competitors; and
|
•
|
respond to seasonal changes in supply and demand.
|
•
|
our ability to maintain merchant and customer satisfaction such that our marketplace will continue to attract high quality merchants;
|
•
|
our ability to successfully respond to macroeconomic challenges, including by optimizing our deal mix to take into account consumer preferences at a particular point in time;
|
•
|
political, economic and civil instability and uncertainty (including acts of terrorism, civil unrest, labor unrest, violence and outbreaks of war);
|
•
|
currency exchange rate fluctuations;
|
•
|
strong local competitors, many of whom have been in the market longer than us or have greater resources in the local market;
|
•
|
different regulatory requirements, including regulation of gift cards and coupon terms, Internet services, professional selling, distance selling, bulk emailing, privacy and data protection, banking and money transmitting, that may limit or prevent the offering of our services in some jurisdictions, cause unanticipated compliance expenses or limit our ability to enforce contractual obligations;
|
•
|
difficulties in integrating with local payment providers, including banks, credit and debit card networks and electronic funds transfer systems;
|
•
|
different employee/employer relationships and the existence of workers' councils and labor unions;
|
•
|
shorter payment cycles and greater problems in collecting accounts receivable;
|
•
|
higher Internet service provider costs;
|
•
|
seasonal reductions in business activity;
|
•
|
expenses associated with localizing our products, including offering customers the ability to transact business in the local currency; and
|
•
|
differing intellectual property laws.
|
•
|
the size and composition of our customer base and the number of merchants we feature;
|
•
|
the timing and market acceptance of deals we offer, including the developments and enhancements to those deals offered by us or our competitors;
|
•
|
customer and merchant service and support efforts;
|
•
|
selling and marketing efforts;
|
•
|
ease of use, performance, price and reliability of services offered either by us or our competitors;
|
•
|
our ability to generate large volumes of sales, particularly with respect to goods and travel deals;
|
•
|
our ability to cost-effectively manage our operations; and
|
•
|
our reputation and brand strength relative to our competitors.
|
•
|
our financial results;
|
•
|
any financial projections that we provide to the public, any changes in these projections or our failure for any reason to meet these projections or projections made by research analysts;
|
•
|
the amount of shares of our Class A common stock that are available for sale;
|
•
|
the relative success of competitive products or services;
|
•
|
the public's response to press releases or other public announcements by us or others, including our filings with the SEC and announcements relating to litigation;
|
•
|
speculation about our business in the press or the investment community;
|
•
|
future sales of our Class A common stock by our significant stockholders, officers and directors;
|
•
|
announcements about our share repurchase program and purchases under the program;
|
•
|
changes in our capital structure, such as future issuances of debt or equity securities;
|
•
|
our entry into new markets or exit from existing markets;
|
•
|
regulatory developments in the United States or foreign countries;
|
•
|
strategic acquisitions, joint ventures or restructurings announced or consummated by us or our competitors;
|
•
|
strategic dispositions of businesses or other assets announced or consummated by us; and
|
•
|
changes in accounting principles.
|
•
|
Our certificate of incorporation provides for a dual class common stock structure. As a result of this structure, our founders will have significant influence over all matters requiring stockholder approval, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets. This concentrated control could discourage others from initiating any potential merger, takeover or other change of control transaction that other stockholders may view as beneficial.
|
•
|
Our board of directors has the right to elect directors to fill a vacancy created by the expansion of the board of directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors.
|
•
|
Special meetings of our stockholders may be called only by our Executive Chairman of the Board, our Chief Executive Officer, our board of directors or holders of not less than the majority of our issued and outstanding capital stock. This limits the ability of minority stockholders to take certain actions without an annual meeting of stockholders.
|
•
|
Our stockholders may not act by written consent unless the action to be effected and the taking of such action by written consent is approved in advance by our board of directors. As a result, a holder, or holders, controlling a majority of our capital stock would generally not be able to take certain actions without holding a stockholders' meeting.
|
•
|
Our certificate of incorporation prohibits cumulative voting in the election of directors. This limits the ability of minority stockholders to elect director candidates.
|
•
|
Stockholders must provide timely notice to nominate individuals for election to the board of directors or to propose matters that can be acted upon at an annual meeting of stockholders. These provisions may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of our company.
|
•
|
Our board of directors may issue, without stockholder approval, shares of undesignated preferred stock. The ability to authorize undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to acquire us.
|
Description of Use
|
Segment
|
Square Feet
|
Various lease expirations through
|
Corporate offices
|
North America
|
504,000
|
December 2023
|
Corporate offices
|
EMEA
|
389,000
|
June 2024
|
Corporate offices
|
Rest of World
|
414,000
|
June 2018
|
|
|
|
|
Fulfillment and data centers
|
North America
|
331,000
|
December 2018
|
Fulfillment and data centers
|
EMEA
|
16,000
|
March 2019
|
Fulfillment and data centers
|
Rest of World
|
51,000
|
August 2016
|
2013
|
High
|
Low
|
||||
First Quarter
|
$
|
6.36
|
|
$
|
4.24
|
|
Second Quarter
|
$
|
8.69
|
|
$
|
5.37
|
|
Third Quarter
|
$
|
12.76
|
|
$
|
8.26
|
|
Fourth Quarter
|
$
|
12.31
|
|
$
|
8.40
|
|
|
|
|
||||
2014
|
High
|
Low
|
||||
First Quarter
|
$
|
12.42
|
|
$
|
7.61
|
|
Second Quarter
|
$
|
8.24
|
|
$
|
5.18
|
|
Third Quarter
|
$
|
7.28
|
|
$
|
5.68
|
|
Fourth Quarter
|
$
|
8.43
|
|
$
|
5.72
|
|
Date
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program
|
||||||
October 1-31, 2014
|
|
468,100
|
|
|
$
|
6.24
|
|
|
468,100
|
|
|
$
|
107,000,000
|
|
November 1-30, 2014
|
|
319,400
|
|
|
$
|
7.60
|
|
|
319,400
|
|
|
$
|
105,000,000
|
|
December 1-31, 2014
|
|
364,600
|
|
|
$
|
7.58
|
|
|
364,600
|
|
|
$
|
102,000,000
|
|
Total
|
|
1,152,100
|
|
|
$
|
7.04
|
|
|
1,152,100
|
|
|
$
|
102,000,000
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(in thousands, except share and per share amounts)
|
||||||||||||||||||
Consolidated Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third party and other
|
$
|
1,627,539
|
|
|
$
|
1,654,654
|
|
|
$
|
1,879,729
|
|
|
$
|
1,589,604
|
|
|
$
|
312,941
|
|
Direct
|
1,564,149
|
|
|
919,001
|
|
|
454,743
|
|
|
20,826
|
|
|
—
|
|
|||||
Total revenue
|
3,191,688
|
|
|
2,573,655
|
|
|
2,334,472
|
|
|
1,610,430
|
|
|
312,941
|
|
|||||
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third party and other
|
241,885
|
|
|
232,062
|
|
|
297,739
|
|
|
243,789
|
|
|
42,896
|
|
|||||
Direct
|
1,400,617
|
|
|
840,060
|
|
|
421,201
|
|
|
15,090
|
|
|
—
|
|
|||||
Total cost of revenue
|
1,642,502
|
|
|
1,072,122
|
|
|
718,940
|
|
|
258,879
|
|
|
42,896
|
|
|||||
Gross profit
|
1,549,186
|
|
|
1,501,533
|
|
|
1,615,532
|
|
|
1,351,551
|
|
|
270,045
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketing
|
269,043
|
|
|
214,824
|
|
|
336,854
|
|
|
768,472
|
|
|
290,569
|
|
|||||
Selling, general and administrative
|
1,293,716
|
|
|
1,210,966
|
|
|
1,179,080
|
|
|
821,002
|
|
|
196,637
|
|
|||||
Acquisition-related expense (benefit), net
|
1,269
|
|
|
(11
|
)
|
|
897
|
|
|
(4,537
|
)
|
|
203,183
|
|
|||||
Total operating expenses
|
1,564,028
|
|
|
1,425,779
|
|
|
1,516,831
|
|
|
1,584,937
|
|
|
690,389
|
|
|||||
(Loss) income from operations
|
(14,842
|
)
|
|
75,754
|
|
|
98,701
|
|
|
(233,386
|
)
|
|
(420,344
|
)
|
|||||
Other (expense) income, net
|
(33,353
|
)
|
|
(94,663
|
)
|
|
(3,759
|
)
|
|
(20,679
|
)
|
|
284
|
|
|||||
(Loss) income before provision (benefit) for income taxes
|
(48,195
|
)
|
|
(18,909
|
)
|
|
94,942
|
|
|
(254,065
|
)
|
|
(420,060
|
)
|
|||||
Provision (benefit) for income taxes
|
15,724
|
|
|
70,037
|
|
|
145,973
|
|
|
43,697
|
|
|
(6,674
|
)
|
|||||
Net loss
|
(63,919
|
)
|
|
(88,946
|
)
|
|
(51,031
|
)
|
|
(297,762
|
)
|
|
(413,386
|
)
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(9,171
|
)
|
|
(6,447
|
)
|
|
(3,742
|
)
|
|
18,335
|
|
|
23,746
|
|
|||||
Net loss attributable to Groupon, Inc.
|
(73,090
|
)
|
|
(95,393
|
)
|
|
(54,773
|
)
|
|
(279,427
|
)
|
|
(389,640
|
)
|
|||||
Dividends on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,362
|
)
|
|||||
Redemption of preferred stock in excess of carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,327
|
)
|
|
(52,893
|
)
|
|||||
Adjustment of redeemable noncontrolling interests to redemption value
|
—
|
|
|
—
|
|
|
(12,604
|
)
|
|
(59,740
|
)
|
|
(12,425
|
)
|
|||||
Net loss attributable to common stockholders
|
$
|
(73,090
|
)
|
|
$
|
(95,393
|
)
|
|
$
|
(67,377
|
)
|
|
$
|
(373,494
|
)
|
|
$
|
(456,320
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss per share
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
(0.11
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(1.03
|
)
|
|
$
|
(1.33
|
)
|
Diluted
|
$
|
(0.11
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(1.03
|
)
|
|
$
|
(1.33
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of shares outstanding
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
674,832,393
|
|
|
663,910,194
|
|
|
650,214,119
|
|
|
362,261,324
|
|
|
342,698,772
|
|
|||||
Diluted
|
674,832,393
|
|
|
663,910,194
|
|
|
650,214,119
|
|
|
362,261,324
|
|
|
342,698,772
|
|
|
As of December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
1,071,913
|
|
|
$
|
1,240,472
|
|
|
$
|
1,209,289
|
|
|
$
|
1,122,935
|
|
|
$
|
118,833
|
|
Working capital (deficit)
|
75,733
|
|
|
374,720
|
|
|
319,345
|
|
|
328,165
|
|
|
(196,564
|
)
|
|||||
Total assets
|
2,227,597
|
|
|
2,042,010
|
|
|
2,031,474
|
|
|
1,774,476
|
|
|
381,570
|
|
|||||
Total long-term liabilities
|
137,057
|
|
|
142,550
|
|
|
120,932
|
|
|
78,194
|
|
|
1,621
|
|
|||||
Total Groupon, Inc. Stockholders' Equity
|
762,826
|
|
|
713,651
|
|
|
744,040
|
|
|
702,541
|
|
|
8,077
|
|
•
|
Gross billings.
This metric represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. For third party revenue deals, gross billings differs from third party revenue reported in our consolidated statements of operations, which is presented net of the merchant's share of the transaction price. For direct revenue deals, gross billings are equivalent to direct revenue reported in our consolidated statements of operations. We consider this metric to be an important indicator of our growth and business performance as it is a proxy for the dollar volume of transactions generated through our marketplaces. Tracking gross billings on third party revenue deals also allows us to track changes in the percentage of gross billings that we are able to retain after payments to our merchants.
|
•
|
Revenue.
Third party revenue is derived from deals where we act as the marketing agent and is the purchase price paid by the customer less an agreed upon portion of the purchase price paid to the featured merchant, excluding applicable taxes and net of estimated refunds for which the merchant's share is recoverable. Direct revenue, when the Company is selling the product as the merchant of record, is the purchase price paid by the customer, excluding applicable taxes and net of estimated refunds.
|
•
|
Gross profit
. Gross profit reflects the net margin earned after deducting our cost of revenue from our revenue. Due to the lack of comparability between third party revenue, which is presented net of the merchant's share of the transaction price, and direct revenue, which is reported on a gross basis, we believe that gross profit is an important measure for evaluating our performance.
|
•
|
Adjusted EBITDA
. Adjusted EBITDA is a non-GAAP financial measure that comprises net income (loss) excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation and acquisition-related expense (benefit), net. We exclude stock-based compensation expense and depreciation and amortization because they are primarily non-cash in nature, and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity. Acquisition-related expense (benefit), net is comprised of the change in the fair value of contingent consideration arrangements and external transaction costs related to business combinations, primarily consisting of legal and advisory fees. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We believe that Adjusted EBITDA is a meaningful measure for evaluating our operating performance. For further information and a reconciliation to the most applicable financial measure under U.S. GAAP, refer to our discussion under Non-GAAP Financial Measures in the "
Results of Operations
" section.
|
•
|
Free cash flow.
Free cash flow is a non-GAAP financial measure that comprises net cash (used in) provided by operating activities less purchases of property and equipment and capitalized software. We use free cash flow, and ratios based on it, to conduct and evaluate our business because, although it is similar to cash flow from operations, we believe that it typically represents a more useful measure of cash flows because purchases of fixed assets, software developed for internal use and website development costs are necessary components of our ongoing operations. Free cash flow is not intended to represent the total increase or decrease in our cash balance for the applicable period. For further information and a reconciliation to the most applicable financial measure under U.S. GAAP, refer to our discussion under Non-GAAP Financial Measures in the "
Results of Operations
" section.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Gross billings
|
|
$
|
7,580,960
|
|
|
$
|
5,757,330
|
|
|
$
|
5,380,184
|
|
Revenue
|
|
3,191,688
|
|
|
2,573,655
|
|
|
2,334,472
|
|
|||
Gross profit
|
|
1,549,186
|
|
|
1,501,533
|
|
|
1,615,532
|
|
|||
Adjusted EBITDA
|
|
253,367
|
|
|
286,654
|
|
|
259,516
|
|
|||
Free cash flow
|
|
200,532
|
|
|
154,927
|
|
|
170,998
|
|
•
|
Active customers.
We define active customers as unique user accounts that have purchased a voucher or product from us during the trailing twelve months. We consider this metric to be an important indicator of our business performance as it helps us to understand how the number of customers actively purchasing our deals is trending.
|
•
|
Gross billings per average active customer.
This metric represents the trailing twelve months gross billings generated per average active customer. This metric is calculated as the total gross billings generated in the trailing twelve months, divided by the average number of active customers in such time period. Although we believe total gross billings, not trailing twelve months gross billings per average active customer, is a better indication of the overall growth of our marketplaces over time, trailing twelve months gross billings per average active customer provides an opportunity to evaluate whether our growth is primarily driven by growth in total customers or in spend per customer in any given period.
|
•
|
Units
. This metric represents the number of vouchers and products purchased from us by our customers, before refunds and cancellations. We consider unit growth to be an important indicator of the total volume of business conducted through our marketplaces.
|
|
|
Trailing twelve months ended December 31,
|
||||||||||
|
|
2014
|
|
2013
(1)
|
|
2012
(2)
|
||||||
TTM Active customers (in thousands)
|
|
53,852
|
|
|
43,673
|
|
|
40,564
|
|
|||
TTM Gross billings per average active customer
|
|
$
|
155.47
|
|
|
$
|
136.69
|
|
|
$
|
144.84
|
|
(1)
|
TTM active customers for the period ended December 31, 2013 has been reduced from 44.9 million active customers previously reported to 43.7 million to correct that operational information. This correction increased TTM gross billings per average active customer for the period ended December 31, 2013 from $134.01 previously reported to $136.69.
|
(2)
|
TTM active customers for the period ended December 31, 2012 has been reduced from 41.0 million active customers previously reported to 40.6 million to correct that operational information. This correction increased TTM gross billings per average active customer for the period ended December 31, 2012 from $143.88 previously reported to $144.84.
|
|
|
Year Ended December 31,
|
|||||||
|
|
2014
|
|
2013
|
|
2012
|
|||
Units (in thousands)
|
|
356,110
|
|
|
193,426
|
|
|
176,079
|
|
|
|
Year Ended December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(in thousands)
|
||||||
Revenue:
|
|
|
|
|
||||
Third party and other
|
|
$
|
1,627,539
|
|
|
$
|
1,654,654
|
|
Direct
|
|
1,564,149
|
|
|
919,001
|
|
||
Total revenue
|
|
3,191,688
|
|
|
2,573,655
|
|
||
Cost of revenue:
|
|
|
|
|
||||
Third party and other
|
|
241,885
|
|
|
232,062
|
|
||
Direct
|
|
1,400,617
|
|
|
840,060
|
|
||
Total cost of revenue
|
|
1,642,502
|
|
|
1,072,122
|
|
||
Gross profit
|
|
1,549,186
|
|
|
1,501,533
|
|
||
Operating expenses:
|
|
|
|
|
||||
Marketing
|
|
269,043
|
|
|
214,824
|
|
||
Selling, general and administrative
|
|
1,293,716
|
|
|
1,210,966
|
|
||
Acquisition-related expense (benefit), net
|
|
1,269
|
|
|
(11
|
)
|
||
Total operating expenses
|
|
1,564,028
|
|
|
1,425,779
|
|
||
(Loss) income from operations
|
|
(14,842
|
)
|
|
75,754
|
|
||
Other expense, net
|
|
(33,353
|
)
|
|
(94,663
|
)
|
||
Loss before provision for income taxes
|
|
(48,195
|
)
|
|
(18,909
|
)
|
||
Provision for income taxes
|
|
15,724
|
|
|
70,037
|
|
||
Net loss
|
|
(63,919
|
)
|
|
(88,946
|
)
|
||
Net income attributable to noncontrolling interests
|
|
(9,171
|
)
|
|
(6,447
|
)
|
||
Net loss attributable to Groupon, Inc.
|
|
$
|
(73,090
|
)
|
|
$
|
(95,393
|
)
|
|
|
Year Ended December 31,
|
||||||||||||||
|
|
2014
|
|
2013
|
||||||||||||
|
|
Statement of Operations line item
|
|
Stock-based compensation included in line item
|
|
Statement of Operations line item
|
|
Stock-based compensation included in line item
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Total cost of revenue
|
|
$
|
1,642,502
|
|
|
$
|
3,611
|
|
|
$
|
1,072,122
|
|
|
$
|
1,982
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Marketing
|
|
$
|
269,043
|
|
|
$
|
9,733
|
|
|
$
|
214,824
|
|
|
$
|
9,677
|
|
Selling, general and administrative
|
|
1,293,716
|
|
|
108,675
|
|
|
1,210,966
|
|
|
109,803
|
|
||||
Acquisition-related expense (benefit), net
|
|
1,269
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||
Total operating expenses
|
|
$
|
1,564,028
|
|
|
$
|
118,408
|
|
|
$
|
1,425,779
|
|
|
$
|
119,480
|
|
|
|
Year Ended December 31, 2014
|
||||||||||
|
|
At Avg.
|
|
Exchange
|
|
|
||||||
|
|
2013
|
|
Rate Effect
|
|
As
|
||||||
|
|
Rates
(1)
|
|
Effect
(2)
|
|
Reported
|
||||||
|
|
(in thousands)
|
||||||||||
Gross billings
|
|
$
|
7,620,860
|
|
|
$
|
(39,900
|
)
|
|
$
|
7,580,960
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
3,217,762
|
|
|
$
|
(26,074
|
)
|
|
$
|
3,191,688
|
|
Cost of revenue and operating expenses
|
|
3,233,993
|
|
|
(27,463
|
)
|
|
3,206,530
|
|
|||
(Loss) income from operations
|
|
$
|
(16,231
|
)
|
|
$
|
1,389
|
|
|
$
|
(14,842
|
)
|
(1)
|
Represents the financial statement balances that would have resulted had exchange rates in the reporting period been the same as those in effect in the prior year period.
|
(2)
|
Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the prior year period.
|
|
Year Ended December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
Gross billings:
|
|
|
|
||||
Third party
|
$
|
5,989,584
|
|
|
$
|
4,824,659
|
|
Direct
|
1,564,149
|
|
|
919,001
|
|
||
Other
|
27,227
|
|
|
13,670
|
|
||
Total gross billings
|
$
|
7,580,960
|
|
|
$
|
5,757,330
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2014
|
|
% of total
|
|
2013
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Gross billings:
|
|
|
|
|
|
|
|
|
||||||
North America
|
|
$
|
3,303,479
|
|
|
43.6
|
%
|
|
$
|
2,847,244
|
|
|
49.5
|
%
|
EMEA
|
|
2,046,807
|
|
|
27.0
|
|
|
1,983,599
|
|
|
34.5
|
|
||
Rest of World
|
|
2,230,674
|
|
|
29.4
|
|
|
926,487
|
|
|
16.0
|
|
||
Total gross billings
|
|
$
|
7,580,960
|
|
|
100.0
|
%
|
|
$
|
5,757,330
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
1,864,141
|
|
|
$
|
1,747,143
|
|
|
$
|
950,141
|
|
|
$
|
987,428
|
|
|
$
|
689,560
|
|
|
$
|
471,017
|
|
|
$
|
3,503,842
|
|
|
$
|
3,205,588
|
|
Direct
|
—
|
|
|
1,772
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,772
|
|
||||||||
Total
|
1,864,141
|
|
|
1,748,915
|
|
|
950,141
|
|
|
987,428
|
|
|
689,560
|
|
|
471,017
|
|
|
3,503,842
|
|
|
3,207,360
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
27,527
|
|
|
68,818
|
|
|
368,344
|
|
|
590,635
|
|
|
1,143,064
|
|
|
291,270
|
|
|
1,538,935
|
|
|
950,723
|
|
||||||||
Direct
|
1,074,913
|
|
|
774,023
|
|
|
442,344
|
|
|
115,881
|
|
|
46,892
|
|
|
27,325
|
|
|
1,564,149
|
|
|
917,229
|
|
||||||||
Total
|
1,102,440
|
|
|
842,841
|
|
|
810,688
|
|
|
706,516
|
|
|
1,189,956
|
|
|
318,595
|
|
|
3,103,084
|
|
|
1,867,952
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
336,898
|
|
|
255,488
|
|
|
285,978
|
|
|
289,655
|
|
|
351,158
|
|
|
136,875
|
|
|
974,034
|
|
|
682,018
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gross billings
|
$
|
3,303,479
|
|
|
$
|
2,847,244
|
|
|
$
|
2,046,807
|
|
|
$
|
1,983,599
|
|
|
$
|
2,230,674
|
|
|
$
|
926,487
|
|
|
$
|
7,580,960
|
|
|
$
|
5,757,330
|
|
(1)
|
Includes gross billings from deals with local merchants, from deals with national merchants, and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other gross billings as a component of the Local category. Other gross billings were previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current year presentation.
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2014
|
|
% of total
|
|
2013
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
749,548
|
|
|
23.5
|
%
|
|
$
|
745,563
|
|
|
29.0
|
%
|
Direct
|
|
1,074,913
|
|
|
33.7
|
|
|
775,795
|
|
|
30.1
|
|
||
Total segment revenue
|
|
1,824,461
|
|
|
57.2
|
|
|
1,521,358
|
|
|
59.1
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
518,786
|
|
|
16.3
|
|
|
627,034
|
|
|
24.4
|
|
||
Direct
|
|
442,344
|
|
|
13.8
|
|
|
115,881
|
|
|
4.5
|
|
||
Total segment revenue
|
|
961,130
|
|
|
30.1
|
|
|
742,915
|
|
|
28.9
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
359,205
|
|
|
11.3
|
|
|
282,057
|
|
|
11.0
|
|
||
Direct
|
|
46,892
|
|
|
1.4
|
|
|
27,325
|
|
|
1.0
|
|
||
Total segment revenue
|
|
406,097
|
|
|
12.7
|
|
|
309,382
|
|
|
12.0
|
|
||
Total revenue
|
|
$
|
3,191,688
|
|
|
100.0
|
%
|
|
$
|
2,573,655
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
674,605
|
|
|
$
|
671,846
|
|
|
$
|
391,179
|
|
|
$
|
430,020
|
|
|
$
|
167,552
|
|
|
$
|
182,010
|
|
|
$
|
1,233,336
|
|
|
$
|
1,283,876
|
|
Direct revenue
|
—
|
|
|
1,772
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,772
|
|
||||||||
Total
|
674,605
|
|
|
673,618
|
|
|
391,179
|
|
|
430,020
|
|
|
167,552
|
|
|
182,010
|
|
|
1,233,336
|
|
|
1,285,648
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
5,966
|
|
|
17,409
|
|
|
63,650
|
|
|
133,117
|
|
|
146,984
|
|
|
69,344
|
|
|
216,600
|
|
|
219,870
|
|
||||||||
Direct revenue
|
1,074,913
|
|
|
774,023
|
|
|
442,344
|
|
|
115,881
|
|
|
46,892
|
|
|
27,325
|
|
|
1,564,149
|
|
|
917,229
|
|
||||||||
Total
|
1,080,879
|
|
|
791,432
|
|
|
505,994
|
|
|
248,998
|
|
|
193,876
|
|
|
96,669
|
|
|
1,780,749
|
|
|
1,137,099
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
68,977
|
|
|
56,308
|
|
|
63,957
|
|
|
63,897
|
|
|
44,669
|
|
|
30,703
|
|
|
177,603
|
|
|
150,908
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total revenue
|
$
|
1,824,461
|
|
|
$
|
1,521,358
|
|
|
$
|
961,130
|
|
|
$
|
742,915
|
|
|
$
|
406,097
|
|
|
$
|
309,382
|
|
|
$
|
3,191,688
|
|
|
$
|
2,573,655
|
|
(1)
|
Includes revenue from deals with local and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other revenue as a component of the Local category. Other revenue was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current year presentation.
|
|
|
Year Ended December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(in thousands)
|
||||||
Cost of revenue:
|
|
|
|
|
||||
Third party
|
|
$
|
225,752
|
|
|
$
|
224,840
|
|
Direct
|
|
1,400,617
|
|
|
840,060
|
|
||
Other
|
|
16,133
|
|
|
7,222
|
|
||
Total cost of revenue
|
|
$
|
1,642,502
|
|
|
$
|
1,072,122
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2014
|
|
% of total
|
|
2013
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
106,375
|
|
|
6.5
|
%
|
|
$
|
98,697
|
|
|
9.2
|
%
|
Direct
|
|
986,103
|
|
|
60.0
|
|
|
709,824
|
|
|
66.2
|
|
||
Total segment cost of revenue
|
|
1,092,478
|
|
|
66.5
|
|
|
808,521
|
|
|
75.4
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
39,578
|
|
|
2.4
|
|
|
70,102
|
|
|
6.5
|
|
||
Direct
|
|
364,638
|
|
|
22.2
|
|
|
102,687
|
|
|
9.6
|
|
||
Total segment cost of revenue
|
|
404,216
|
|
|
24.6
|
|
|
172,789
|
|
|
16.1
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
95,932
|
|
|
5.8
|
|
|
63,263
|
|
|
5.9
|
|
||
Direct
|
|
49,876
|
|
|
3.1
|
|
|
27,549
|
|
|
2.6
|
|
||
Total segment cost of revenue
|
|
145,808
|
|
|
8.9
|
|
|
90,812
|
|
|
8.5
|
|
||
Total cost of revenue
|
|
$
|
1,642,502
|
|
|
100.0
|
%
|
|
$
|
1,072,122
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
93,538
|
|
|
$
|
89,123
|
|
|
$
|
26,634
|
|
|
$
|
46,295
|
|
|
$
|
29,025
|
|
|
$
|
28,604
|
|
|
$
|
149,197
|
|
|
$
|
164,022
|
|
Direct
|
—
|
|
|
2,554
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,554
|
|
||||||||
Total
|
93,538
|
|
|
91,677
|
|
|
26,634
|
|
|
46,295
|
|
|
29,025
|
|
|
28,604
|
|
|
149,197
|
|
|
166,576
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
854
|
|
|
2,090
|
|
|
8,216
|
|
|
16,760
|
|
|
55,498
|
|
|
29,645
|
|
|
64,568
|
|
|
48,495
|
|
||||||||
Direct
|
986,103
|
|
|
707,270
|
|
|
364,638
|
|
|
102,687
|
|
|
49,876
|
|
|
27,549
|
|
|
1,400,617
|
|
|
837,506
|
|
||||||||
Total
|
986,957
|
|
|
709,360
|
|
|
372,854
|
|
|
119,447
|
|
|
105,374
|
|
|
57,194
|
|
|
1,465,185
|
|
|
886,001
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
11,983
|
|
|
7,484
|
|
|
4,728
|
|
|
7,047
|
|
|
11,409
|
|
|
5,014
|
|
|
28,120
|
|
|
19,545
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total cost of revenue
|
$
|
1,092,478
|
|
|
$
|
808,521
|
|
|
$
|
404,216
|
|
|
$
|
172,789
|
|
|
$
|
145,808
|
|
|
$
|
90,812
|
|
|
$
|
1,642,502
|
|
|
$
|
1,072,122
|
|
(1)
|
Includes cost of revenue from deals with local merchants and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other cost of revenue as a component of the Local category. Other cost of revenue was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current year presentation.
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2014
|
|
% of total
|
|
2013
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
643,173
|
|
|
41.5
|
%
|
|
$
|
646,866
|
|
|
43.1
|
%
|
Direct
|
|
88,810
|
|
|
5.7
|
|
|
65,971
|
|
|
4.4
|
|
||
Total gross profit
|
|
731,983
|
|
|
47.2
|
|
|
712,837
|
|
|
47.5
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
479,208
|
|
|
30.9
|
|
|
556,932
|
|
|
37.1
|
|
||
Direct
|
|
77,706
|
|
|
5.0
|
|
|
13,194
|
|
|
0.9
|
|
||
Total gross profit
|
|
556,914
|
|
|
35.9
|
|
|
570,126
|
|
|
38.0
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
263,273
|
|
|
17.0
|
|
|
218,794
|
|
|
14.6
|
|
||
Direct
|
|
(2,984
|
)
|
|
(0.1
|
)
|
|
(224
|
)
|
|
(0.1
|
)
|
||
Total gross profit
|
|
260,289
|
|
|
16.9
|
|
|
218,570
|
|
|
14.5
|
|
||
Total gross profit
|
|
$
|
1,549,186
|
|
|
100.0
|
%
|
|
$
|
1,501,533
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
581,067
|
|
|
$
|
582,723
|
|
|
$
|
364,545
|
|
|
$
|
383,725
|
|
|
$
|
138,527
|
|
|
$
|
153,406
|
|
|
$
|
1,084,139
|
|
|
$
|
1,119,854
|
|
Direct
|
—
|
|
|
(782
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(782
|
)
|
||||||||
Total
|
581,067
|
|
|
581,941
|
|
|
364,545
|
|
|
383,725
|
|
|
138,527
|
|
|
153,406
|
|
|
1,084,139
|
|
|
1,119,072
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
5,112
|
|
|
15,319
|
|
|
55,434
|
|
|
116,357
|
|
|
91,486
|
|
|
39,699
|
|
|
152,032
|
|
|
171,375
|
|
||||||||
Direct
|
88,810
|
|
|
66,753
|
|
|
77,706
|
|
|
13,194
|
|
|
(2,984
|
)
|
|
(224
|
)
|
|
163,532
|
|
|
79,723
|
|
||||||||
Total
|
93,922
|
|
|
82,072
|
|
|
133,140
|
|
|
129,551
|
|
|
88,502
|
|
|
39,475
|
|
|
315,564
|
|
|
251,098
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
56,994
|
|
|
48,824
|
|
|
59,229
|
|
|
56,850
|
|
|
33,260
|
|
|
25,689
|
|
|
149,483
|
|
|
131,363
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gross profit
|
$
|
731,983
|
|
|
$
|
712,837
|
|
|
$
|
556,914
|
|
|
$
|
570,126
|
|
|
$
|
260,289
|
|
|
$
|
218,570
|
|
|
$
|
1,549,186
|
|
|
$
|
1,501,533
|
|
(1)
|
Includes gross profit from deals with local and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other gross profit as a component of the Local category. Other gross profit was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current year presentation.
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
|
2014
|
|
% of Segment Gross Billings
|
|
% of Segment Revenue
|
|
% of Total Marketing
|
|
2013
|
|
% of Segment Gross Billings
|
|
% of Segment Revenue
|
|
% of Total Marketing
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||
North America
|
|
$
|
137,648
|
|
|
4.2
|
%
|
|
7.5
|
%
|
|
51.2
|
%
|
|
$
|
113,612
|
|
|
4.0
|
%
|
|
7.5
|
%
|
|
52.9
|
%
|
EMEA
|
|
76,752
|
|
|
3.7
|
|
|
8.0
|
|
|
28.5
|
|
|
65,130
|
|
|
3.3
|
|
|
8.8
|
|
|
30.3
|
|
||
Rest of World
|
|
54,643
|
|
|
2.4
|
|
|
13.5
|
|
|
20.3
|
|
|
36,082
|
|
|
3.9
|
|
|
11.7
|
|
|
16.8
|
|
||
Total marketing
|
|
$
|
269,043
|
|
|
3.5
|
|
|
8.4
|
|
|
100.0
|
%
|
|
$
|
214,824
|
|
|
3.7
|
|
|
8.3
|
|
|
100.0
|
%
|
|
|
Year Ended December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(in thousands)
|
||||||
Revenue:
|
|
|
|
|
||||
Third party and other
|
|
$
|
1,654,654
|
|
|
$
|
1,879,729
|
|
Direct
|
|
919,001
|
|
|
454,743
|
|
||
Total revenue
|
|
2,573,655
|
|
|
2,334,472
|
|
||
Cost of revenue:
|
|
|
|
|
||||
Third party and other
|
|
232,062
|
|
|
297,739
|
|
||
Direct
|
|
840,060
|
|
|
421,201
|
|
||
Total cost of revenue
|
|
1,072,122
|
|
|
718,940
|
|
||
Gross profit
|
|
1,501,533
|
|
|
1,615,532
|
|
||
Operating expenses:
|
|
|
|
|
||||
Marketing
|
|
214,824
|
|
|
336,854
|
|
||
Selling, general and administrative
|
|
1,210,966
|
|
|
1,179,080
|
|
||
Acquisition-related (benefit) expense, net
|
|
(11
|
)
|
|
897
|
|
||
Total operating expenses
|
|
1,425,779
|
|
|
1,516,831
|
|
||
Income from operations
|
|
75,754
|
|
|
98,701
|
|
||
Other expense, net
|
|
(94,663
|
)
|
|
(3,759
|
)
|
||
(Loss) income before provision for income taxes
|
|
(18,909
|
)
|
|
94,942
|
|
||
Provision for income taxes
|
|
70,037
|
|
|
145,973
|
|
||
Net loss
|
|
(88,946
|
)
|
|
(51,031
|
)
|
||
Net income attributable to noncontrolling interests
|
|
(6,447
|
)
|
|
(3,742
|
)
|
||
Net loss attributable to Groupon, Inc.
|
|
(95,393
|
)
|
|
(54,773
|
)
|
||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
—
|
|
|
(12,604
|
)
|
||
Net loss attributable to common stockholders
|
|
$
|
(95,393
|
)
|
|
$
|
(67,377
|
)
|
|
|
Year Ended December 31,
|
||||||||||||||
|
|
2013
|
|
2012
|
||||||||||||
|
|
Statement of Operations line item
|
|
Stock-based compensation included in line item
|
|
Statement of Operations line item
|
|
Stock-based compensation included in line item
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Total cost of revenue
|
|
$
|
1,072,122
|
|
|
$
|
1,982
|
|
|
$
|
718,940
|
|
|
$
|
2,928
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Marketing
|
|
$
|
214,824
|
|
|
$
|
9,677
|
|
|
$
|
336,854
|
|
|
$
|
3,570
|
|
Selling, general and administrative
|
|
1,210,966
|
|
|
109,803
|
|
|
1,179,080
|
|
|
97,619
|
|
||||
Acquisition-related (benefit) expense, net
|
|
(11
|
)
|
|
—
|
|
|
897
|
|
|
—
|
|
||||
Total operating expenses
|
|
$
|
1,425,779
|
|
|
$
|
119,480
|
|
|
$
|
1,516,831
|
|
|
$
|
101,189
|
|
|
|
Year Ended December 31, 2013
|
||||||||||
|
|
At Avg.
|
|
Exchange
|
|
|
||||||
|
|
2012
|
|
Rate
|
|
|
||||||
|
|
Rates
(1)
|
|
Effect
(2)
|
|
As Reported
|
||||||
|
|
(in thousands)
|
||||||||||
Gross billings
|
|
$
|
5,797,599
|
|
|
$
|
(40,269
|
)
|
|
$
|
5,757,330
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
2,585,376
|
|
|
$
|
(11,721
|
)
|
|
$
|
2,573,655
|
|
Cost of revenue and operating expenses
|
|
2,513,664
|
|
|
(15,763
|
)
|
|
2,497,901
|
|
|||
Income from operations
|
|
$
|
71,712
|
|
|
$
|
4,042
|
|
|
$
|
75,754
|
|
(1)
|
Represents the financial statement balances that would have resulted had exchange rates in the reporting period been the same as those in effect in the comparable prior year period.
|
(2)
|
Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior year period.
|
|
Year Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(in thousands)
|
||||||
Gross billings:
|
|
|
|
||||
Third party
|
$
|
4,824,659
|
|
|
$
|
4,905,022
|
|
Direct
|
919,001
|
|
|
454,743
|
|
||
Other
|
13,670
|
|
|
20,419
|
|
||
Total gross billings
|
$
|
5,757,330
|
|
|
$
|
5,380,184
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2013
|
|
% of total
|
|
2012
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Gross billings:
|
|
|
|
|
|
|
|
|
||||||
North America
|
|
$
|
2,847,244
|
|
|
49.5
|
%
|
|
$
|
2,373,153
|
|
|
44.1
|
%
|
EMEA
|
|
1,983,599
|
|
|
34.5
|
|
|
1,928,508
|
|
|
35.8
|
|
||
Rest of World
|
|
926,487
|
|
|
16.0
|
|
|
1,078,523
|
|
|
20.1
|
|
||
Total gross billings
|
|
$
|
5,757,330
|
|
|
100.0
|
%
|
|
$
|
5,380,184
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
1,747,143
|
|
|
$
|
1,628,843
|
|
|
$
|
987,428
|
|
|
$
|
1,018,088
|
|
|
$
|
471,017
|
|
|
$
|
575,642
|
|
|
$
|
3,205,588
|
|
|
$
|
3,222,573
|
|
Direct
|
1,772
|
|
|
12,037
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,772
|
|
|
12,037
|
|
||||||||
Total gross billings
|
1,748,915
|
|
|
1,640,880
|
|
|
987,428
|
|
|
1,018,088
|
|
|
471,017
|
|
|
575,642
|
|
|
3,207,360
|
|
|
3,234,610
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
68,818
|
|
|
172,859
|
|
|
590,635
|
|
|
572,950
|
|
|
291,270
|
|
|
310,458
|
|
|
950,723
|
|
|
1,056,267
|
|
||||||||
Direct
|
774,023
|
|
|
391,238
|
|
|
115,881
|
|
|
36,393
|
|
|
27,325
|
|
|
10,822
|
|
|
917,229
|
|
|
438,453
|
|
||||||||
Total gross billings
|
842,841
|
|
|
564,097
|
|
|
706,516
|
|
|
609,343
|
|
|
318,595
|
|
|
321,280
|
|
|
1,867,952
|
|
|
1,494,720
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
255,488
|
|
|
168,176
|
|
|
289,655
|
|
|
296,824
|
|
|
136,875
|
|
|
181,601
|
|
|
682,018
|
|
|
646,601
|
|
||||||||
Direct
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
||||||||
Total gross billings
|
255,488
|
|
|
168,176
|
|
|
289,655
|
|
|
301,077
|
|
|
136,875
|
|
|
181,601
|
|
|
682,018
|
|
|
650,854
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gross billings
|
$
|
2,847,244
|
|
|
$
|
2,373,153
|
|
|
$
|
1,983,599
|
|
|
$
|
1,928,508
|
|
|
$
|
926,487
|
|
|
$
|
1,078,523
|
|
|
$
|
5,757,330
|
|
|
$
|
5,380,184
|
|
(1)
|
Includes gross billings from deals with local and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other gross billings as a component of the Local category. Other gross billings were previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current period presentation.
|
|
Year Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(in thousands)
|
||||||
Revenue:
|
|
|
|
||||
Third party
|
$
|
1,640,984
|
|
|
$
|
1,859,310
|
|
Direct
|
919,001
|
|
|
454,743
|
|
||
Other
|
13,670
|
|
|
20,419
|
|
||
Total revenue
|
$
|
2,573,655
|
|
|
$
|
2,334,472
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2013
|
|
% of total
|
|
2012
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
745,563
|
|
|
29.0
|
%
|
|
$
|
762,424
|
|
|
32.7
|
%
|
Direct
|
|
775,795
|
|
|
30.1
|
|
|
403,276
|
|
|
17.2
|
|
||
Total segment revenue
|
|
1,521,358
|
|
|
59.1
|
|
|
1,165,700
|
|
|
49.9
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
627,034
|
|
|
24.4
|
|
|
764,830
|
|
|
32.8
|
|
||
Direct
|
|
115,881
|
|
|
4.5
|
|
|
40,646
|
|
|
1.7
|
|
||
Total segment revenue
|
|
742,915
|
|
|
28.9
|
|
|
805,476
|
|
|
34.5
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
282,057
|
|
|
11.0
|
|
|
352,475
|
|
|
15.1
|
|
||
Direct
|
|
27,325
|
|
|
1.0
|
|
|
10,821
|
|
|
0.5
|
|
||
Total segment revenue
|
|
309,382
|
|
|
12.0
|
|
|
363,296
|
|
|
15.6
|
|
||
Total revenue
|
|
$
|
2,573,655
|
|
|
100.0
|
%
|
|
$
|
2,334,472
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
671,846
|
|
|
$
|
665,587
|
|
|
$
|
430,020
|
|
|
$
|
501,782
|
|
|
$
|
182,010
|
|
|
$
|
221,859
|
|
|
$
|
1,283,876
|
|
|
$
|
1,389,228
|
|
Direct revenue
|
1,772
|
|
|
12,037
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,772
|
|
|
12,037
|
|
||||||||
Total revenue
|
673,618
|
|
|
677,624
|
|
|
430,020
|
|
|
501,782
|
|
|
182,010
|
|
|
221,859
|
|
|
1,285,648
|
|
|
1,401,265
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
17,409
|
|
|
60,269
|
|
|
133,117
|
|
|
186,495
|
|
|
69,344
|
|
|
87,746
|
|
|
219,870
|
|
|
334,510
|
|
||||||||
Direct revenue
|
774,023
|
|
|
391,239
|
|
|
115,881
|
|
|
36,393
|
|
|
27,325
|
|
|
10,821
|
|
|
917,229
|
|
|
438,453
|
|
||||||||
Total revenue
|
791,432
|
|
|
451,508
|
|
|
248,998
|
|
|
222,888
|
|
|
96,669
|
|
|
98,567
|
|
|
1,137,099
|
|
|
772,963
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
56,308
|
|
|
36,568
|
|
|
63,897
|
|
|
76,553
|
|
|
30,703
|
|
|
42,870
|
|
|
150,908
|
|
|
155,991
|
|
||||||||
Direct revenue
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
||||||||
Total revenue
|
56,308
|
|
|
36,568
|
|
|
63,897
|
|
|
80,806
|
|
|
30,703
|
|
|
42,870
|
|
|
150,908
|
|
|
160,244
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total revenue
|
$
|
1,521,358
|
|
|
$
|
1,165,700
|
|
|
$
|
742,915
|
|
|
$
|
805,476
|
|
|
$
|
309,382
|
|
|
$
|
363,296
|
|
|
$
|
2,573,655
|
|
|
$
|
2,334,472
|
|
(1)
|
Includes revenue from deals with local and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other revenue as a component of the Local category. Other revenue was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current period presentation.
|
|
|
Year Ended December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(in thousands)
|
||||||
Cost of revenue:
|
|
|
|
|
||||
Third party
|
|
$
|
224,840
|
|
|
$
|
297,574
|
|
Direct
|
|
840,060
|
|
|
421,201
|
|
||
Other
|
|
7,222
|
|
|
165
|
|
||
Total cost of revenue
|
|
$
|
1,072,122
|
|
|
$
|
718,940
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2013
|
|
% of total
|
|
2012
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
98,697
|
|
|
9.2
|
%
|
|
$
|
145,212
|
|
|
20.2
|
%
|
Direct
|
|
709,824
|
|
|
66.2
|
|
|
365,179
|
|
|
50.8
|
|
||
Total segment cost of revenue
|
|
808,521
|
|
|
75.4
|
|
|
510,391
|
|
|
71.0
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
70,102
|
|
|
6.5
|
|
|
73,654
|
|
|
10.2
|
|
||
Direct
|
|
102,687
|
|
|
9.6
|
|
|
42,638
|
|
|
6.0
|
|
||
Total segment cost of revenue
|
|
172,789
|
|
|
16.1
|
|
|
116,292
|
|
|
16.2
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
63,263
|
|
|
5.9
|
|
|
78,873
|
|
|
11.0
|
|
||
Direct
|
|
27,549
|
|
|
2.6
|
|
|
13,384
|
|
|
1.8
|
|
||
Total segment cost of revenue
|
|
90,812
|
|
|
8.5
|
|
|
92,257
|
|
|
12.8
|
|
||
Total cost of revenue
|
|
$
|
1,072,122
|
|
|
100.0
|
%
|
|
$
|
718,940
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
89,123
|
|
|
$
|
123,871
|
|
|
$
|
46,295
|
|
|
$
|
47,812
|
|
|
$
|
28,604
|
|
|
$
|
48,124
|
|
|
$
|
164,022
|
|
|
$
|
219,807
|
|
Direct
|
2,554
|
|
|
10,128
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,554
|
|
|
10,128
|
|
||||||||
Total cost of revenue
|
91,677
|
|
|
133,999
|
|
|
46,295
|
|
|
47,812
|
|
|
28,604
|
|
|
48,124
|
|
|
166,576
|
|
|
229,935
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
2,090
|
|
|
11,981
|
|
|
16,760
|
|
|
18,066
|
|
|
29,645
|
|
|
21,475
|
|
|
48,495
|
|
|
51,522
|
|
||||||||
Direct
|
707,270
|
|
|
355,051
|
|
|
102,687
|
|
|
38,914
|
|
|
27,549
|
|
|
13,384
|
|
|
837,506
|
|
|
407,349
|
|
||||||||
Total cost of revenue
|
709,360
|
|
|
367,032
|
|
|
119,447
|
|
|
56,980
|
|
|
57,194
|
|
|
34,859
|
|
|
886,001
|
|
|
458,871
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
7,484
|
|
|
9,360
|
|
|
7,047
|
|
|
7,776
|
|
|
5,014
|
|
|
9,274
|
|
|
19,545
|
|
|
26,410
|
|
||||||||
Direct
|
—
|
|
|
—
|
|
|
—
|
|
|
3,724
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,724
|
|
||||||||
Total cost of revenue
|
7,484
|
|
|
9,360
|
|
|
7,047
|
|
|
11,500
|
|
|
5,014
|
|
|
9,274
|
|
|
19,545
|
|
|
30,134
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total cost of revenue
|
$
|
808,521
|
|
|
$
|
510,391
|
|
|
$
|
172,789
|
|
|
$
|
116,292
|
|
|
$
|
90,812
|
|
|
$
|
92,257
|
|
|
$
|
1,072,122
|
|
|
$
|
718,940
|
|
(1)
|
Includes cost of revenue from deals with local and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other cost of revenue as a component of the Local category. Other cost of revenue was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current period presentation.
|
|
|
Year Ended December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(in thousands)
|
||||||
Gross profit:
|
|
|
|
|
||||
Third party
|
|
$
|
1,416,144
|
|
|
$
|
1,561,736
|
|
Direct
|
|
78,941
|
|
|
33,542
|
|
||
Other
|
|
6,448
|
|
|
20,254
|
|
||
Total gross profit
|
|
$
|
1,501,533
|
|
|
$
|
1,615,532
|
|
|
|
Year Ended December 31,
|
||||||||||||
|
|
2013
|
|
% of total
|
|
2012
|
|
% of total
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
North America:
|
|
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
646,866
|
|
|
43.1
|
%
|
|
$
|
617,212
|
|
|
38.2
|
%
|
Direct
|
|
65,971
|
|
|
4.4
|
|
|
38,097
|
|
|
2.4
|
|
||
Total gross profit
|
|
712,837
|
|
|
47.5
|
|
|
655,309
|
|
|
40.6
|
|
||
EMEA:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
556,932
|
|
|
37.1
|
|
|
691,176
|
|
|
42.8
|
|
||
Direct
|
|
13,194
|
|
|
0.9
|
|
|
(1,992
|
)
|
|
(0.1
|
)
|
||
Total gross profit
|
|
570,126
|
|
|
38.0
|
|
|
689,184
|
|
|
42.7
|
|
||
Rest of World:
|
|
|
|
|
|
|
|
|
||||||
Third party
|
|
218,794
|
|
|
14.6
|
|
|
273,602
|
|
|
16.9
|
|
||
Direct
|
|
(224
|
)
|
|
(0.1
|
)
|
|
(2,563
|
)
|
|
(0.2
|
)
|
||
Total gross profit
|
|
218,570
|
|
|
14.5
|
|
|
271,039
|
|
|
16.7
|
|
||
Total gross profit
|
|
$
|
1,501,533
|
|
|
100.0
|
%
|
|
$
|
1,615,532
|
|
|
100.0
|
%
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party and other
(2)
|
$
|
582,723
|
|
|
$
|
541,716
|
|
|
$
|
383,725
|
|
|
$
|
453,970
|
|
|
$
|
153,406
|
|
|
$
|
173,735
|
|
|
$
|
1,119,854
|
|
|
$
|
1,169,421
|
|
Direct
|
(782
|
)
|
|
1,909
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(782
|
)
|
|
1,909
|
|
||||||||
Total gross profit
|
581,941
|
|
|
543,625
|
|
|
383,725
|
|
|
453,970
|
|
|
153,406
|
|
|
173,735
|
|
|
1,119,072
|
|
|
1,171,330
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
15,319
|
|
|
48,288
|
|
|
116,357
|
|
|
168,429
|
|
|
39,699
|
|
|
66,271
|
|
|
171,375
|
|
|
282,988
|
|
||||||||
Direct
|
66,753
|
|
|
36,188
|
|
|
13,194
|
|
|
(2,521
|
)
|
|
(224
|
)
|
|
(2,563
|
)
|
|
79,723
|
|
|
31,104
|
|
||||||||
Total gross profit
|
82,072
|
|
|
84,476
|
|
|
129,551
|
|
|
165,908
|
|
|
39,475
|
|
|
63,708
|
|
|
251,098
|
|
|
314,092
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
(2)
|
48,824
|
|
|
27,208
|
|
|
56,850
|
|
|
68,777
|
|
|
25,689
|
|
|
33,596
|
|
|
131,363
|
|
|
129,581
|
|
||||||||
Direct
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
||||||||
Total gross profit
|
48,824
|
|
|
27,208
|
|
|
56,850
|
|
|
69,306
|
|
|
25,689
|
|
|
33,596
|
|
|
131,363
|
|
|
130,110
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total gross profit
|
$
|
712,837
|
|
|
$
|
655,309
|
|
|
$
|
570,126
|
|
|
$
|
689,184
|
|
|
$
|
218,570
|
|
|
$
|
271,039
|
|
|
$
|
1,501,533
|
|
|
$
|
1,615,532
|
|
(1)
|
Includes gross profit from deals with local merchants and national merchants and through local events.
|
(2)
|
During the three months ended March 31, 2014, the Company began classifying other gross profit as a component of the Local category. Other gross profit was previously aggregated with the Travel category. The prior year category information has been retrospectively adjusted to conform to the current period presentation.
|
|
|
Year Ended December 31,
|
|
|
||||||||||||||||||||||
|
|
2013
|
|
% of Segment Gross Billings
|
|
% of Segment Revenue
|
|
% of Total Marketing
|
|
2012
|
|
% of Segment Gross Billings
|
|
% of Segment Revenue
|
|
% of Total Marketing
|
||||||||||
|
|
(dollars in thousands)
|
|
|
||||||||||||||||||||||
North America
|
|
$
|
113,612
|
|
|
4.0
|
%
|
|
7.5
|
%
|
|
52.9
|
%
|
|
$
|
105,914
|
|
|
4.5
|
%
|
|
9.1
|
%
|
|
31.4
|
%
|
EMEA
|
|
65,130
|
|
|
3.3
|
|
|
8.8
|
|
|
30.3
|
|
|
156,476
|
|
|
8.1
|
|
|
19.4
|
|
|
46.5
|
|
||
Rest of World
|
|
36,082
|
|
|
3.9
|
|
|
11.7
|
|
|
16.8
|
|
|
74,464
|
|
|
6.9
|
|
|
20.5
|
|
|
22.1
|
|
||
Total marketing
|
|
$
|
214,824
|
|
|
3.7
|
|
|
8.3
|
|
|
100.0
|
%
|
|
$
|
336,854
|
|
|
6.3
|
|
|
14.4
|
|
|
100.0
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net loss
|
|
$
|
(63,919
|
)
|
|
$
|
(88,946
|
)
|
|
$
|
(51,031
|
)
|
Adjustments:
|
|
|
|
|
|
|
||||||
Stock-based compensation
(1)
|
|
122,019
|
|
|
121,462
|
|
|
104,117
|
|
|||
Acquisition-related expense (benefit), net
(2)
|
|
1,269
|
|
|
(11
|
)
|
|
897
|
|
|||
Depreciation and amortization
|
|
144,921
|
|
|
89,449
|
|
|
55,801
|
|
|||
Other expense, net
|
|
33,353
|
|
|
94,663
|
|
|
3,759
|
|
|||
Provision for income taxes
|
|
15,724
|
|
|
70,037
|
|
|
145,973
|
|
|||
Total adjustments
|
|
317,286
|
|
|
375,600
|
|
|
310,547
|
|
|||
Adjusted EBITDA
|
|
$
|
253,367
|
|
|
$
|
286,654
|
|
|
$
|
259,516
|
|
(1)
|
Represents stock-based compensation expense recorded within "Selling, general and administrative," "Cost of revenue," and "Marketing" on the consolidated statements of operations.
|
(2)
|
Represents changes in the fair value of contingent consideration related to business combinations and external transaction costs related to business combinations, primarily consisting of legal and advisory fees. External transaction costs were not material for the year ended December 31, 2012.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
|
$
|
288,824
|
|
|
$
|
218,432
|
|
|
$
|
266,834
|
|
Purchases of property and equipment and capitalized software
|
|
(88,292
|
)
|
|
(63,505
|
)
|
|
(95,836
|
)
|
|||
Free cash flow
|
|
$
|
200,532
|
|
|
$
|
154,927
|
|
|
$
|
170,998
|
|
|
|
|
|
|
|
|
||||||
Net cash used in investing activities
|
|
$
|
(229,456
|
)
|
|
$
|
(96,315
|
)
|
|
$
|
(194,979
|
)
|
Net cash (used in) provided by financing activities
|
|
$
|
(194,156
|
)
|
|
$
|
(81,697
|
)
|
|
$
|
12,095
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
(in thousands)
|
||||||||||
Cash provided by (used in):
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
288,824
|
|
|
$
|
218,432
|
|
|
$
|
266,834
|
|
Investing activities
|
|
(229,456
|
)
|
|
(96,315
|
)
|
|
(194,979
|
)
|
|||
Financing activities
|
|
(194,156
|
)
|
|
(81,697
|
)
|
|
12,095
|
|
|||
Effect of changes in exchange rates on cash and cash equivalents
|
|
(33,771
|
)
|
|
(9,237
|
)
|
|
2,404
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(168,559
|
)
|
|
$
|
31,183
|
|
|
$
|
86,354
|
|
|
Payments due by period
|
||||||||||||||||||||||||||
|
Total
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Thereafter
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Capital lease obligations
(1)
|
$
|
39,715
|
|
|
$
|
14,936
|
|
|
$
|
14,136
|
|
|
$
|
9,424
|
|
|
$
|
697
|
|
|
$
|
522
|
|
|
$
|
—
|
|
Operating lease obligations
(2)
|
202,126
|
|
|
53,776
|
|
|
49,094
|
|
|
38,628
|
|
|
27,659
|
|
|
11,455
|
|
|
21,514
|
|
|||||||
Purchase obligations
(3)
|
61,300
|
|
|
33,636
|
|
|
21,922
|
|
|
5,730
|
|
|
8
|
|
|
4
|
|
|
—
|
|
|||||||
Total
|
$
|
303,141
|
|
|
$
|
102,348
|
|
|
$
|
85,152
|
|
|
$
|
53,782
|
|
|
$
|
28,364
|
|
|
$
|
11,981
|
|
|
$
|
21,514
|
|
(1)
|
Capital lease obligations include both principal and interest components of future minimum capital lease payments.
|
(2)
|
Operating lease obligations are primarily for office facilities and are non-cancelable. Certain leases contain periodic rent escalation adjustments and renewal and expansion options. Operating lease obligations expire at various dates with the latest maturity in 2024.
|
(3)
|
Purchase obligations primarily represent non-cancelable contractual obligations related to information technology products and services.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,071,913
|
|
|
$
|
1,240,472
|
|
Accounts receivable, net
|
105,154
|
|
|
83,673
|
|
||
Deferred income taxes
|
16,271
|
|
|
27,938
|
|
||
Prepaid expenses and other current assets
|
207,991
|
|
|
210,415
|
|
||
Total current assets
|
1,401,329
|
|
|
1,562,498
|
|
||
Property, equipment and software, net
|
182,475
|
|
|
134,423
|
|
||
Goodwill
|
447,810
|
|
|
220,827
|
|
||
Intangible assets, net
|
110,557
|
|
|
28,443
|
|
||
Investments
|
24,298
|
|
|
20,652
|
|
||
Deferred income taxes, non-current
|
41,835
|
|
|
35,941
|
|
||
Other non-current assets
|
19,293
|
|
|
39,226
|
|
||
Total Assets
|
$
|
2,227,597
|
|
|
$
|
2,042,010
|
|
Liabilities and Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
21,855
|
|
|
$
|
27,573
|
|
Accrued merchant and supplier payables
|
910,567
|
|
|
752,943
|
|
||
Accrued expenses
|
230,352
|
|
|
226,986
|
|
||
Deferred income taxes
|
32,510
|
|
|
47,558
|
|
||
Other current liabilities
|
130,312
|
|
|
132,718
|
|
||
Total current liabilities
|
1,325,596
|
|
|
1,187,778
|
|
||
Deferred income taxes, non-current
|
773
|
|
|
10,853
|
|
||
Other non-current liabilities
|
136,284
|
|
|
131,697
|
|
||
Total Liabilities
|
1,462,653
|
|
|
1,330,328
|
|
||
Commitments and contingencies (see Note 8)
|
|
|
|
||||
Stockholders' Equity
|
|
|
|
||||
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 699,008,084 shares issued and 671,768,980 shares outstanding at December 31, 2014 and 670,149,976 shares issued and 665,717,176 shares outstanding at December 31, 2013
|
70
|
|
|
67
|
|
||
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at December 31, 2014 and December 31, 2013
|
—
|
|
|
—
|
|
||
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and December 31, 2013
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,847,420
|
|
|
1,584,211
|
|
||
Treasury stock, at cost, 27,239,104 shares at December 31, 2014 and 4,432,800 shares at December 31, 2013
|
(198,467
|
)
|
|
(46,587
|
)
|
||
Accumulated deficit
|
(921,960
|
)
|
|
(848,870
|
)
|
||
Accumulated other comprehensive income
|
35,763
|
|
|
24,830
|
|
||
Total Groupon, Inc. Stockholders' Equity
|
762,826
|
|
|
713,651
|
|
||
Noncontrolling interests
|
2,118
|
|
|
(1,969
|
)
|
||
Total Equity
|
764,944
|
|
|
711,682
|
|
||
Total Liabilities and Equity
|
$
|
2,227,597
|
|
|
$
|
2,042,010
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Third party and other
|
|
$
|
1,627,539
|
|
|
$
|
1,654,654
|
|
|
$
|
1,879,729
|
|
Direct
|
|
1,564,149
|
|
|
919,001
|
|
|
454,743
|
|
|||
Total revenue
|
|
3,191,688
|
|
|
2,573,655
|
|
|
2,334,472
|
|
|||
Cost of revenue:
|
|
|
|
|
|
|
||||||
Third party and other
|
|
241,885
|
|
|
232,062
|
|
|
297,739
|
|
|||
Direct
|
|
1,400,617
|
|
|
840,060
|
|
|
421,201
|
|
|||
Total cost of revenue
|
|
1,642,502
|
|
|
1,072,122
|
|
|
718,940
|
|
|||
Gross profit
|
|
1,549,186
|
|
|
1,501,533
|
|
|
1,615,532
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Marketing
|
|
269,043
|
|
|
214,824
|
|
|
336,854
|
|
|||
Selling, general and administrative
|
|
1,293,716
|
|
|
1,210,966
|
|
|
1,179,080
|
|
|||
Acquisition-related expense (benefit), net
|
|
1,269
|
|
|
(11
|
)
|
|
897
|
|
|||
Total operating expenses
|
|
1,564,028
|
|
|
1,425,779
|
|
|
1,516,831
|
|
|||
(Loss) income from operations
|
|
(14,842
|
)
|
|
75,754
|
|
|
98,701
|
|
|||
Other expense, net
|
|
(33,353
|
)
|
|
(94,663
|
)
|
|
(3,759
|
)
|
|||
(Loss) income before provision for income taxes
|
|
(48,195
|
)
|
|
(18,909
|
)
|
|
94,942
|
|
|||
Provision for income taxes
|
|
15,724
|
|
|
70,037
|
|
|
145,973
|
|
|||
Net loss
|
|
(63,919
|
)
|
|
(88,946
|
)
|
|
(51,031
|
)
|
|||
Net income attributable to noncontrolling interests
|
|
(9,171
|
)
|
|
(6,447
|
)
|
|
(3,742
|
)
|
|||
Net loss attributable to Groupon, Inc.
|
|
(73,090
|
)
|
|
(95,393
|
)
|
|
(54,773
|
)
|
|||
Adjustment of redeemable noncontrolling interests to redemption value
|
|
—
|
|
|
—
|
|
|
(12,604
|
)
|
|||
Net loss attributable to common stockholders
|
|
$
|
(73,090
|
)
|
|
$
|
(95,393
|
)
|
|
$
|
(67,377
|
)
|
|
|
|
|
|
|
|
||||||
Net loss per share
|
|
|
|
|
|
|
||||||
Basic
|
|
$(0.11)
|
|
$(0.14)
|
|
$(0.10)
|
||||||
Diluted
|
|
$(0.11)
|
|
$(0.14)
|
|
$(0.10)
|
||||||
|
|
|
|
|
|
|
||||||
Weighted average number of shares outstanding
|
|
|
|
|
|
|
||||||
Basic
|
|
674,832,393
|
|
|
663,910,194
|
|
|
650,214,119
|
|
|||
Diluted
|
|
674,832,393
|
|
|
663,910,194
|
|
|
650,214,119
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net loss
|
|
$
|
(63,919
|
)
|
|
$
|
(88,946
|
)
|
|
$
|
(51,031
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
11,625
|
|
|
12,933
|
|
|
425
|
|
|||
Pension liability adjustment (net of tax effect of $285 for the year ended December 31, 2014)
|
|
(1,500
|
)
|
|
—
|
|
|
—
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
||||||
Net unrealized (loss) gain during the period
|
|
(210
|
)
|
|
(175
|
)
|
|
53
|
|
|||
Reclassification adjustment for impairment included in net loss
|
|
831
|
|
|
—
|
|
|
—
|
|
|||
Net change in unrealized gain (loss) (net of tax effects of $383, $(108) and $34 for the years ended December 31, 2014, 2013 and 2012, respectively)
|
|
621
|
|
|
(175
|
)
|
|
53
|
|
|||
Other comprehensive income
|
|
10,746
|
|
|
12,758
|
|
|
478
|
|
|||
Comprehensive loss
|
|
(53,173
|
)
|
|
(76,188
|
)
|
|
(50,553
|
)
|
|||
Comprehensive income attributable to noncontrolling interests
|
|
(8,984
|
)
|
|
(6,821
|
)
|
|
(4,702
|
)
|
|||
Comprehensive loss attributable to Groupon, Inc.
|
|
$
|
(62,157
|
)
|
|
$
|
(83,009
|
)
|
|
$
|
(55,255
|
)
|
|
Groupon, Inc. Stockholders' Equity
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Treasury Stock
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income
|
|
Total Groupon Inc. Stockholders' Equity
|
|
Non-controlling Interests
|
|
Total Equity
|
|||||||||||||||||||||||
|
Shares
|
|
Amount
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||||||||||||
Balance at December 31, 2011
|
644,145,201
|
|
|
$
|
64
|
|
|
$
|
1,388,253
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(698,704
|
)
|
|
$
|
12,928
|
|
|
$
|
702,541
|
|
|
$
|
(3,074
|
)
|
|
$
|
699,467
|
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,773
|
)
|
|
—
|
|
|
(54,773
|
)
|
|
3,748
|
|
(1
|
)
|
(51,025
|
)
|
||||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(535
|
)
|
|
(535
|
)
|
|
960
|
|
|
425
|
|
|||||||||
Unrealized gain on available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
53
|
|
|
—
|
|
|
53
|
|
|||||||||
Adjustment of redeemable noncontrolling interest to redemption value
|
—
|
|
|
—
|
|
|
(12,604
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,604
|
)
|
|
—
|
|
|
(12,604
|
)
|
|||||||||
Restricted stock issued to employees in connection with acquisitions
|
152,446
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Purchases of additional interests in consolidated subsidiaries
|
51,000
|
|
|
—
|
|
|
(2,584
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,584
|
)
|
|
739
|
|
|
(1,845
|
)
|
|||||||||
Shares issued to settle liability-classified awards and contingent consideration
|
660,539
|
|
|
—
|
|
|
2,503
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,503
|
|
|
—
|
|
|
2,503
|
|
|||||||||
Exercise of stock options
|
9,025,164
|
|
|
1
|
|
|
9,312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,313
|
|
|
—
|
|
|
9,313
|
|
|||||||||
Vesting of restricted stock units
|
4,452,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Tax withholdings related to net share settlements of stock-based compensation awards
|
(1,563,647
|
)
|
|
—
|
|
|
(14,918
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,918
|
)
|
|
—
|
|
|
(14,918
|
)
|
|||||||||
Stock-based compensation on equity-classified awards
|
—
|
|
|
—
|
|
|
93,781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,781
|
|
|
—
|
|
|
93,781
|
|
|||||||||
Excess tax benefits, net of shortfalls, on stock-based compensation awards
|
—
|
|
|
—
|
|
|
21,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,263
|
|
|
—
|
|
|
21,263
|
|
|||||||||
Partnership distributions to noncontrolling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,312
|
)
|
|
(4,312
|
)
|
|||||||||
Balance at December 31, 2012
|
656,923,682
|
|
|
$
|
65
|
|
|
$
|
1,485,006
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(753,477
|
)
|
|
$
|
12,446
|
|
|
$
|
744,040
|
|
|
$
|
(1,939
|
)
|
|
$
|
742,101
|
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95,393
|
)
|
|
—
|
|
|
(95,393
|
)
|
|
6,447
|
|
|
(88,946
|
)
|
|||||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,559
|
|
|
12,559
|
|
|
374
|
|
|
12,933
|
|
|||||||||
Unrealized loss on available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
(175
|
)
|
|
—
|
|
|
(175
|
)
|
|||||||||
Common stock issued in connection with acquisition of business, net of issuance costs
|
276,217
|
|
|
—
|
|
|
3,051
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
—
|
|
|
3,051
|
|
|||||||||
Shares issued to settle liability-classified awards and contingent consideration
|
758,474
|
|
|
—
|
|
|
4,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,649
|
|
|
—
|
|
|
4,649
|
|
|||||||||
Exercise of stock options
|
4,003,544
|
|
|
—
|
|
|
4,062
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,062
|
|
|
—
|
|
|
4,062
|
|
|||||||||
Vesting of restricted stock units
|
15,565,805
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Shares issued under employee stock purchase plan
|
774,288
|
|
|
—
|
|
|
3,241
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,241
|
|
|
—
|
|
|
3,241
|
|
|||||||||
Tax withholdings related to net share settlements of stock-based compensation awards
|
(5,752,058
|
)
|
|
—
|
|
|
(47,684
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47,684
|
)
|
|
—
|
|
|
(47,684
|
)
|
|||||||||
Stock-based compensation on equity-classified awards
|
—
|
|
|
—
|
|
|
122,222
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122,222
|
|
|
—
|
|
|
122,222
|
|
Excess tax benefits, net of shortfalls, on stock-based compensation awards
|
—
|
|
|
—
|
|
|
9,666
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,666
|
|
|
—
|
|
|
9,666
|
|
|||||||||
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,432,800
|
)
|
|
(46,587
|
)
|
|
—
|
|
|
—
|
|
|
(46,587
|
)
|
|
—
|
|
|
(46,587
|
)
|
|||||||||
Partnership distributions to noncontrolling interest holders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,851
|
)
|
|
(6,851
|
)
|
|||||||||
Balance at December 31, 2013
|
672,549,952
|
|
|
$
|
67
|
|
|
$
|
1,584,211
|
|
|
(4,432,800
|
)
|
|
$
|
(46,587
|
)
|
|
$
|
(848,870
|
)
|
|
$
|
24,830
|
|
|
$
|
713,651
|
|
|
$
|
(1,969
|
)
|
|
$
|
711,682
|
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,090
|
)
|
|
—
|
|
|
(73,090
|
)
|
|
9,171
|
|
|
(63,919
|
)
|
|||||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,812
|
|
|
11,812
|
|
|
(187
|
)
|
|
11,625
|
|
|||||||||
Pension liability adjustment, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
|
(1,500
|
)
|
|
—
|
|
|
(1,500
|
)
|
|||||||||
Unrealized gain on available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
621
|
|
|
621
|
|
|
—
|
|
|
621
|
|
|||||||||
Common stock issued in connection with acquisitions of businesses, net of issuance costs
|
15,255,180
|
|
|
2
|
|
|
173,813
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173,815
|
|
|
—
|
|
|
173,815
|
|
|||||||||
Shares issued to settle liability-classified awards and contingent consideration
|
102,180
|
|
|
—
|
|
|
1,041
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,041
|
|
|
—
|
|
|
1,041
|
|
|||||||||
Purchase of interests in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(6,310
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,310
|
)
|
|
2,415
|
|
|
(3,895
|
)
|
|||||||||
Exercise of stock options
|
1,029,471
|
|
|
—
|
|
|
1,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,118
|
|
|
—
|
|
|
1,118
|
|
|||||||||
Vesting of restricted stock units
|
17,323,096
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Shares issued under employee stock purchase plan
|
857,171
|
|
|
—
|
|
|
5,396
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,396
|
|
|
—
|
|
|
5,396
|
|
|||||||||
Tax withholdings related to net share settlements of stock-based compensation awards
|
(5,708,990
|
)
|
|
—
|
|
|
(44,509
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,509
|
)
|
|
—
|
|
|
(44,509
|
)
|
|||||||||
Stock-based compensation on equity-classified awards
|
—
|
|
|
—
|
|
|
133,230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,230
|
|
|
—
|
|
|
133,230
|
|
|||||||||
Tax shortfalls, net of excess tax benefits, on stock-based compensation awards
|
—
|
|
|
—
|
|
|
(569
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(569
|
)
|
|
—
|
|
|
(569
|
)
|
|||||||||
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,806,304
|
)
|
|
(151,880
|
)
|
|
—
|
|
|
—
|
|
|
(151,880
|
)
|
|
—
|
|
|
(151,880
|
)
|
|||||||||
Partnership distributions to noncontrolling interest holders
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,312
|
)
|
|
(7,312
|
)
|
|||||||||
Balance at December 31, 2014
|
701,408,060
|
|
|
$
|
70
|
|
|
$
|
1,847,420
|
|
|
(27,239,104
|
)
|
|
$
|
(198,467
|
)
|
|
$
|
(921,960
|
)
|
|
$
|
35,763
|
|
|
$
|
762,826
|
|
|
$
|
2,118
|
|
|
$
|
764,944
|
|
(1)
|
Excludes less than
$0.1 million
attributable to redeemable noncontrolling interests for the year ended December 31, 2012, which were reported outside of permanent equity on the consolidated balance sheets.
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net loss
|
$
|
(63,919
|
)
|
|
$
|
(88,946
|
)
|
|
$
|
(51,031
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization of property, equipment and software
|
97,799
|
|
|
67,823
|
|
|
35,891
|
|
|||
Amortization of acquired intangible assets
|
47,122
|
|
|
21,626
|
|
|
19,910
|
|
|||
Stock-based compensation
|
122,019
|
|
|
121,462
|
|
|
104,117
|
|
|||
Deferred income taxes
|
(11,106
|
)
|
|
(18,055
|
)
|
|
(7,651
|
)
|
|||
Excess tax benefits on stock-based compensation
|
(15,980
|
)
|
|
(20,454
|
)
|
|
(27,023
|
)
|
|||
Loss on equity method investments
|
459
|
|
|
44
|
|
|
9,925
|
|
|||
(Gain) loss, net from changes in fair value of contingent consideration
|
(2,444
|
)
|
|
(3,171
|
)
|
|
897
|
|
|||
Gain on E-Commerce transaction
|
—
|
|
|
—
|
|
|
(56,032
|
)
|
|||
Impairments of investments
|
2,036
|
|
|
85,925
|
|
|
50,553
|
|
|||
Change in assets and liabilities, net of acquisitions:
|
|
|
|
|
|
||||||
Restricted cash
|
6,010
|
|
|
2,183
|
|
|
(4,372
|
)
|
|||
Accounts receivable
|
(13,660
|
)
|
|
10,989
|
|
|
10,534
|
|
|||
Prepaid expenses and other current assets
|
78
|
|
|
(62,906
|
)
|
|
(70,859
|
)
|
|||
Accounts payable
|
(11,911
|
)
|
|
(31,288
|
)
|
|
18,711
|
|
|||
Accrued merchant and supplier payables
|
115,106
|
|
|
88,468
|
|
|
149,918
|
|
|||
Accrued expenses and other current liabilities
|
(16,182
|
)
|
|
4,053
|
|
|
47,742
|
|
|||
Other, net
|
33,397
|
|
|
40,679
|
|
|
35,604
|
|
|||
Net cash provided by operating activities
|
288,824
|
|
|
218,432
|
|
|
266,834
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Purchases of property and equipment and capitalized software
|
(88,292
|
)
|
|
(63,505
|
)
|
|
(95,836
|
)
|
|||
Acquisitions of businesses, net of acquired cash
|
(131,463
|
)
|
|
(7,349
|
)
|
|
(46,890
|
)
|
|||
Purchases of investments
|
(6,904
|
)
|
|
(21,982
|
)
|
|
(37,523
|
)
|
|||
Settlement of liabilities related to purchase of additional interests in consolidated subsidiaries
|
(2,297
|
)
|
|
(1,959
|
)
|
|
—
|
|
|||
Purchases of additional interests in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
(14,130
|
)
|
|||
Purchases of intangible assets
|
(500
|
)
|
|
(1,520
|
)
|
|
(600
|
)
|
|||
Net cash used in investing activities
|
(229,456
|
)
|
|
(96,315
|
)
|
|
(194,979
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Payments for purchases of treasury stock
|
(153,253
|
)
|
|
(44,840
|
)
|
|
—
|
|
|||
Excess tax benefits on stock-based compensation
|
15,980
|
|
|
20,454
|
|
|
27,023
|
|
|||
Taxes paid related to net share settlements of stock-based compensation awards
|
(43,618
|
)
|
|
(47,575
|
)
|
|
(12,996
|
)
|
|||
Debt issuance costs
|
(1,029
|
)
|
|
—
|
|
|
—
|
|
|||
Common stock issuance costs in connection with acquisition of business
|
(158
|
)
|
|
—
|
|
|
—
|
|
|||
Payments of contingent consideration from acquisitions
|
—
|
|
|
(4,289
|
)
|
|
(4,700
|
)
|
|||
Settlements of purchase price obligations related to acquisitions
|
(3,136
|
)
|
|
(5,000
|
)
|
|
(2,233
|
)
|
|||
Proceeds from stock option exercises and employee stock purchase plan
|
6,514
|
|
|
7,303
|
|
|
9,313
|
|
|||
Partnership distribution payments to noncontrolling interest holders
|
(8,034
|
)
|
|
(6,130
|
)
|
|
(4,312
|
)
|
|||
Payments of capital lease obligations
|
(7,422
|
)
|
|
(1,620
|
)
|
|
—
|
|
|||
Net cash (used in) provided by financing activities
|
(194,156
|
)
|
|
(81,697
|
)
|
|
12,095
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(33,771
|
)
|
|
(9,237
|
)
|
|
2,404
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
(168,559
|
)
|
|
31,183
|
|
|
86,354
|
|
|||
Cash and cash equivalents, beginning of period
|
1,240,472
|
|
|
1,209,289
|
|
|
1,122,935
|
|
|||
Cash and cash equivalents, end of period
|
$
|
1,071,913
|
|
|
$
|
1,240,472
|
|
|
$
|
1,209,289
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
||||||
Income tax payments
|
$
|
24,006
|
|
|
$
|
60,767
|
|
|
$
|
126,987
|
|
Non-cash investing and financing activities
|
|
|
|
|
|
||||||
Issuance of common stock in connection with acquisition of business
|
$
|
173,972
|
|
|
$
|
3,051
|
|
|
$
|
—
|
|
Contingent consideration liabilities incurred in connection with acquisitions
|
4,388
|
|
|
3,567
|
|
|
3,400
|
|
|||
Equipment acquired under capital lease obligations
|
36,574
|
|
|
10,001
|
|
|
1,122
|
|
|||
Shares issued to settle liability-classified awards and contingent consideration
|
1,041
|
|
|
4,649
|
|
|
2,267
|
|
|||
Liability for purchases of treasury stock
|
374
|
|
|
1,747
|
|
|
—
|
|
|||
Liability for purchase of additional interests in consolidated subsidiaries
|
1,598
|
|
|
—
|
|
|
1,959
|
|
|||
Accounts payable and accrued expenses related to purchases of property and equipment and capitalized software
|
2,109
|
|
|
1,564
|
|
|
1,891
|
|
|||
Contribution of investment in E-Commerce transaction
|
—
|
|
|
—
|
|
|
47,042
|
|
|||
Stock issued in exchange for additional interests in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
527
|
|
|||
Shares issued to settle contingent consideration
|
—
|
|
|
—
|
|
|
236
|
|
Cash
|
|
$
|
96,496
|
|
Issuance of 13,825,283 shares of Class A common stock
|
|
162,862
|
|
|
Total
|
|
$
|
259,358
|
|
Cash and cash equivalents
|
$
|
24,768
|
|
Accounts receivable
|
17,732
|
|
|
Deferred income taxes
|
1,264
|
|
|
Prepaid expenses and other current assets
|
829
|
|
|
Property, equipment and software
|
5,944
|
|
|
Goodwill
|
218,692
|
|
|
Intangible assets:
(1)
|
|
||
Subscriber relationships
|
57,022
|
|
|
Merchant relationships
|
32,176
|
|
|
Developed technology
|
571
|
|
|
Trade name
|
19,325
|
|
|
Other non-current assets
|
3,033
|
|
|
Total assets acquired
|
$
|
381,356
|
|
Accounts payable
|
$
|
5,951
|
|
Accrued merchant and supplier payables
|
82,934
|
|
|
Accrued expenses
|
22,700
|
|
|
Other current liabilities
|
3,482
|
|
|
Deferred income taxes, non-current
|
1,264
|
|
|
Other non-current liabilities
|
5,667
|
|
|
Total liabilities assumed
|
$
|
121,998
|
|
Total acquisition price
|
$
|
259,358
|
|
(1)
|
The estimated useful lives of the acquired intangible assets are
5
years for subscriber relationships,
3
years for merchant relationships,
2
years for developed technology and
5
years for trade name.
|
Cash and cash equivalents
|
$
|
79
|
|
Accounts receivable
|
988
|
|
|
Deferred income taxes
|
640
|
|
|
Prepaid expenses and other current assets
|
22,081
|
|
|
Property, equipment and software
|
8,173
|
|
|
Goodwill
|
4,203
|
|
|
Intangible assets:
(1)
|
|
||
Subscriber relationships
|
5,490
|
|
|
Brand relationships
|
7,100
|
|
|
Trade name
|
4,500
|
|
|
Deferred income taxes, non-current
|
8,877
|
|
|
Total assets acquired
|
$
|
62,131
|
|
Accounts payable
|
$
|
1,640
|
|
Accrued supplier payables
|
4,092
|
|
|
Accrued expenses
|
9,118
|
|
|
Other current liabilities
|
482
|
|
|
Deferred income taxes, non-current
|
348
|
|
|
Other non-current liabilities
|
3,753
|
|
|
Total liabilities assumed
|
$
|
19,433
|
|
Total acquisition price
|
$
|
42,698
|
|
(1)
|
The estimated useful lives of the acquired intangible assets are
3
years for subscriber relationships,
5
years for brand relationships and
5
years for trade name.
|
Cash
|
|
$
|
17,364
|
|
Issuance of 1,429,897 shares of Class A common stock
|
|
11,110
|
|
|
Contingent consideration
|
|
4,388
|
|
|
Total
|
|
$
|
32,862
|
|
Net working capital (including acquired cash of $0.2 million)
|
|
$
|
(396
|
)
|
Goodwill
|
|
27,150
|
|
|
Intangible assets:
(1)
|
|
|
||
Subscriber relationships
|
|
2,555
|
|
|
Developed technology
|
|
3,372
|
|
|
Brand relationships
|
|
579
|
|
|
Deferred income taxes, non-current
|
|
(398
|
)
|
|
Total purchase price
|
|
$
|
32,862
|
|
(1)
|
Acquired intangible assets have estimated useful lives of between
1
and
5
years.
|
|
Year Ended
December 31, 2013 |
||
Revenue
|
$
|
2,763,639
|
|
Net loss
|
(217,613
|
)
|
Cash
|
|
$
|
9,459
|
|
Issuance of Class A common stock
|
|
3,051
|
|
|
Contingent consideration
|
|
3,567
|
|
|
Total
|
|
$
|
16,077
|
|
Net working capital (including acquired cash of $2.1 million)
|
|
$
|
1,728
|
|
Property and equipment
|
|
99
|
|
|
Goodwill
|
|
9,504
|
|
|
Intangible assets:
(1)
|
|
|
||
Subscriber relationships
|
|
1,928
|
|
|
Merchant relationships
|
|
757
|
|
|
Developed technology
|
|
2,742
|
|
|
Other intangible assets
|
|
50
|
|
|
Net deferred tax liabilities
|
|
(731
|
)
|
|
Total acquisition price
|
|
$
|
16,077
|
|
(1)
|
Acquired intangible assets have estimated useful lives of between
1
and
5
years.
|
Cash
|
|
$
|
49,013
|
|
Purchase price obligations
|
|
2,485
|
|
|
Contingent consideration
|
|
3,400
|
|
|
Total
|
|
$
|
54,898
|
|
(1)
|
Acquired intangible assets have estimated useful lives of between
1
and
5
years.
|
|
|
December 31,
|
||||||
|
|
2014
|
|
2013
|
||||
Warehouse equipment
|
|
$
|
4,859
|
|
|
$
|
3,997
|
|
Furniture and fixtures
|
|
18,610
|
|
|
13,526
|
|
||
Leasehold improvements
|
|
39,900
|
|
|
35,830
|
|
||
Office and telephone equipment
|
|
4,448
|
|
|
5,062
|
|
||
Purchased software
|
|
40,448
|
|
|
22,499
|
|
||
Computer hardware
(1)
|
|
135,731
|
|
|
84,673
|
|
||
Internally-developed software
|
|
133,598
|
|
|
79,113
|
|
||
Total property, equipment and software, gross
|
|
377,594
|
|
|
244,700
|
|
||
Less: accumulated depreciation and amortization
|
|
(195,119
|
)
|
|
(110,277
|
)
|
||
Property, equipment and software, net
|
|
$
|
182,475
|
|
|
$
|
134,423
|
|
(1)
|
Includes computer hardware acquired under capital leases of
$48.0 million
and
$11.8 million
as of
December 31, 2014
and
2013
, respectively.
|
|
|
North America
|
|
International
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||
Balance as of December 31, 2012
|
|
$
|
79,276
|
|
|
$
|
127,408
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206,684
|
|
Reallocation to new segments
|
|
—
|
|
|
(124,770
|
)
|
|
105,347
|
|
|
19,423
|
|
|
—
|
|
|||||
Goodwill related to acquisitions
|
|
4,893
|
|
|
—
|
|
|
4,611
|
|
|
—
|
|
|
9,504
|
|
|||||
Other adjustments
(1)
|
|
1,288
|
|
|
(2,638
|
)
|
|
5,711
|
|
|
278
|
|
|
4,639
|
|
|||||
Balance as of December 31, 2013
|
|
$
|
85,457
|
|
|
$
|
—
|
|
|
$
|
115,669
|
|
|
$
|
19,701
|
|
|
$
|
220,827
|
|
Goodwill related to acquisitions
|
|
31,353
|
|
|
—
|
|
|
—
|
|
|
218,692
|
|
|
250,045
|
|
|||||
Other adjustments
(1)
|
|
(92
|
)
|
|
—
|
|
|
(13,490
|
)
|
|
(9,480
|
)
|
|
(23,062
|
)
|
|||||
Balance as of December 31, 2014
|
|
$
|
116,718
|
|
|
$
|
—
|
|
|
$
|
102,179
|
|
|
$
|
228,913
|
|
|
$
|
447,810
|
|
(1)
|
Represents the impact of changes in foreign exchange rates on goodwill.
|
|
|
December 31, 2014
|
||||||||||
Asset Category
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
Subscriber relationships
|
|
$
|
103,858
|
|
|
$
|
48,754
|
|
|
$
|
55,104
|
|
Merchant relationships
|
|
39,448
|
|
|
18,677
|
|
|
20,771
|
|
|||
Trade names
|
|
29,190
|
|
|
10,666
|
|
|
18,524
|
|
|||
Developed technology
|
|
25,903
|
|
|
21,989
|
|
|
3,914
|
|
|||
Brand relationships
|
|
7,664
|
|
|
1,486
|
|
|
6,178
|
|
|||
Other intangible assets
|
|
17,045
|
|
|
10,979
|
|
|
6,066
|
|
|||
Total
|
|
$
|
223,108
|
|
|
$
|
112,551
|
|
|
$
|
110,557
|
|
|
|
December 31, 2013
|
||||||||||
Asset Category
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
Subscriber relationships
|
|
$
|
45,541
|
|
|
$
|
30,866
|
|
|
$
|
14,675
|
|
Merchant relationships
|
|
9,186
|
|
|
7,991
|
|
|
1,195
|
|
|||
Trade names
|
|
6,739
|
|
|
6,739
|
|
|
—
|
|
|||
Developed technology
|
|
23,038
|
|
|
19,547
|
|
|
3,491
|
|
|||
Other intangible assets
|
|
16,776
|
|
|
7,694
|
|
|
9,082
|
|
|||
Total
|
|
$
|
101,280
|
|
|
$
|
72,837
|
|
|
$
|
28,443
|
|
Years Ended December 31,
|
|
|
||
2015
|
|
$
|
40,495
|
|
2016
|
|
33,707
|
|
|
2017
|
|
18,653
|
|
|
2018
|
|
17,617
|
|
|
2019
|
|
85
|
|
|
Thereafter
|
|
—
|
|
|
Total
|
|
$
|
110,557
|
|
|
December 31, 2014
|
|
Percent Ownership of Voting Stock
|
|
December 31, 2013
|
|
Percent Ownership of Voting Stock
|
||||||||||||
Cost and equity method investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost method investments
|
$
|
15,630
|
|
|
6
|
%
|
to
|
19
|
%
|
|
$
|
15,788
|
|
|
6
|
%
|
to
|
19
|
%
|
Equity method investments
|
1,231
|
|
|
21
|
%
|
to
|
50
|
%
|
|
1,690
|
|
|
21
|
%
|
to
|
50
|
%
|
||
Total cost and equity method investments
|
16,861
|
|
|
|
|
17,478
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||||||
Convertible debt securities
|
2,527
|
|
|
|
|
3,174
|
|
|
|
||||||||||
Redeemable preferred shares
|
4,910
|
|
|
17
|
%
|
to
|
19
|
%
|
|
—
|
|
|
19
|
%
|
|
|
|||
Total available-for-sale securities
|
7,437
|
|
|
|
|
3,174
|
|
|
|
||||||||||
Total investments
|
$
|
24,298
|
|
|
|
|
$
|
20,652
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gain
|
|
Gross Unrealized Loss
|
|
Fair Value
|
|
Amortized Cost
|
|
Gross Unrealized Gain
|
|
Gross Unrealized Loss
|
|
Fair Value
|
||||||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Convertible debt securities
|
$
|
2,030
|
|
|
$
|
497
|
|
|
$
|
—
|
|
|
$
|
2,527
|
|
|
$
|
3,370
|
|
|
$
|
—
|
|
|
$
|
(196
|
)
|
|
$
|
3,174
|
|
Redeemable preferred shares
|
4,599
|
|
|
311
|
|
|
—
|
|
|
4,910
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total available-for-sale securities
|
$
|
6,629
|
|
|
$
|
808
|
|
|
$
|
—
|
|
|
$
|
7,437
|
|
|
$
|
3,370
|
|
|
$
|
—
|
|
|
$
|
(196
|
)
|
|
$
|
3,174
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Interest income
|
|
$
|
1,564
|
|
|
$
|
1,721
|
|
|
$
|
2,522
|
|
Interest expense
|
|
(907
|
)
|
|
(291
|
)
|
|
—
|
|
|||
Gain on E-Commerce transaction
|
|
—
|
|
|
—
|
|
|
56,032
|
|
|||
Impairments of investments
|
|
(2,036
|
)
|
|
(85,925
|
)
|
|
(50,553
|
)
|
|||
Loss on equity method investments
|
|
(459
|
)
|
|
(44
|
)
|
|
(9,925
|
)
|
|||
Foreign exchange (losses) gains, net
|
|
(31,526
|
)
|
|
(10,271
|
)
|
|
1,403
|
|
|||
Other
|
|
11
|
|
|
147
|
|
|
(3,238
|
)
|
|||
Other expense, net
|
|
$
|
(33,353
|
)
|
|
$
|
(94,663
|
)
|
|
$
|
(3,759
|
)
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Current portion of unamortized tax effects on intercompany transactions
|
$
|
14,193
|
|
|
$
|
28,502
|
|
Finished goods inventories
|
57,134
|
|
|
57,097
|
|
||
Prepaid expenses
|
42,231
|
|
|
29,404
|
|
||
Restricted cash
|
12,019
|
|
|
14,579
|
|
||
Income taxes receivable
|
41,788
|
|
|
39,994
|
|
||
VAT receivable
|
17,746
|
|
|
12,966
|
|
||
Prepaid marketing
|
7,443
|
|
|
17,301
|
|
||
Other
|
15,437
|
|
|
10,572
|
|
||
Total prepaid expenses and other current assets
|
$
|
207,991
|
|
|
$
|
210,415
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Accrued merchant payables
|
$
|
632,605
|
|
|
$
|
518,233
|
|
Accrued supplier payables
(1)
|
277,962
|
|
|
234,710
|
|
||
Total accrued merchant and supplier payables
|
$
|
910,567
|
|
|
$
|
752,943
|
|
(1)
|
Amounts include payables to suppliers of inventories and providers of shipping and fulfillment services.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Marketing
|
$
|
15,962
|
|
|
$
|
12,001
|
|
Refunds reserve
|
33,238
|
|
|
38,597
|
|
||
Payroll and benefits
|
65,743
|
|
|
64,966
|
|
||
Customer credits
|
44,463
|
|
|
44,728
|
|
||
Professional fees
|
14,292
|
|
|
18,906
|
|
||
Other
|
56,654
|
|
|
47,788
|
|
||
Total accrued expenses
|
$
|
230,352
|
|
|
$
|
226,986
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Income taxes payable
|
$
|
14,461
|
|
|
$
|
21,994
|
|
VAT payable
|
33,436
|
|
|
37,627
|
|
||
Sales taxes payable
|
9,042
|
|
|
10,412
|
|
||
Deferred revenue
|
43,903
|
|
|
47,259
|
|
||
Capital lease obligations
|
14,872
|
|
|
3,636
|
|
||
Other
|
14,598
|
|
|
11,790
|
|
||
Total other current liabilities
|
$
|
130,312
|
|
|
$
|
132,718
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Long-term tax liabilities
|
$
|
82,138
|
|
|
$
|
109,286
|
|
Deferred rent
|
13,200
|
|
|
9,148
|
|
||
Capital lease obligations
|
23,387
|
|
|
5,665
|
|
||
Other
|
17,559
|
|
|
7,598
|
|
||
Total other non-current liabilities
|
$
|
136,284
|
|
|
$
|
131,697
|
|
|
Foreign currency translation adjustments
|
|
Unrealized loss on available-for-sale securities
|
|
Pension liability adjustment
|
|
Total
|
||||||||
Balance as of December 31, 2012
|
$
|
12,393
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
12,446
|
|
Other comprehensive income
|
12,559
|
|
|
(175
|
)
|
|
—
|
|
|
12,384
|
|
||||
Balance as of December 31, 2013
|
24,952
|
|
|
(122
|
)
|
|
—
|
|
|
24,830
|
|
||||
Other comprehensive income (loss) before reclassification adjustments
|
11,812
|
|
|
(210
|
)
|
|
(1,500
|
)
|
|
10,102
|
|
||||
Reclassification adjustment for impairment included in net loss
|
—
|
|
|
831
|
|
|
—
|
|
|
831
|
|
||||
Other comprehensive income (loss)
|
11,812
|
|
|
621
|
|
|
(1,500
|
)
|
|
10,933
|
|
||||
Balance as of December 31, 2014
|
$
|
36,764
|
|
|
$
|
499
|
|
|
$
|
(1,500
|
)
|
|
$
|
35,763
|
|
|
|
Year Ended December 31,
|
|
Consolidated Statements of Operations Line Item
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
|
|||||||
Other-than-temporary impairment of available-for-sale security
|
|
$
|
1,340
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Other expense, net
|
Less: Tax effect
|
|
(509
|
)
|
|
—
|
|
|
—
|
|
|
Provision for income taxes
|
|||
Reclassification adjustment
|
|
$
|
831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
Capital Leases
|
|
Operating leases
|
||||
2015
|
|
$
|
14,936
|
|
|
$
|
53,776
|
|
2016
|
|
14,136
|
|
|
49,094
|
|
||
2017
|
|
9,424
|
|
|
38,628
|
|
||
2018
|
|
697
|
|
|
27,659
|
|
||
2019
|
|
522
|
|
|
11,455
|
|
||
Thereafter
|
|
—
|
|
|
21,514
|
|
||
Total minimum lease payments
|
|
39,715
|
|
|
$
|
202,126
|
|
|
Less: Amount representing interest
|
|
(1,456
|
)
|
|
|
|||
Present value of net minimum capital lease payments
|
|
38,259
|
|
|
|
|||
Less: Current portion of capital lease obligations
|
|
(14,872
|
)
|
|
|
|||
Total long-term capital lease obligations
|
|
$
|
23,387
|
|
|
|
2015
|
|
$
|
33,636
|
|
2016
|
|
21,922
|
|
|
2017
|
|
5,730
|
|
|
2018
|
|
8
|
|
|
2019
|
|
4
|
|
|
Thereafter
|
|
—
|
|
|
Total purchase obligations
|
|
$
|
61,300
|
|
•
|
if the Company proposes to amend its certificate of incorporation to alter or change the powers, preferences or special rights of the shares of a class of its stock so as to affect them adversely or to increase or decrease the par value of the shares of a class of the Company's stock;
|
•
|
if the Company proposes to treat the shares of a class of its stock differently with respect to any dividend or distribution of cash, property or shares of the Company's stock paid or distributed by the Company;
|
•
|
if the Company proposes to treat the shares of a class of its stock differently with respect to any subdivision or combination of the shares of a class of the Company's stock; or
|
•
|
if the Company proposes to treat the shares of a class of its stock differently in connection with a change in control, liquidation, dissolution, distribution of assets or winding down of the Company with respect to any consideration into which the shares are converted or any consideration paid or otherwise distributed to its stockholders.
|
|
|
Options
|
|
Weighted- Average Exercise Price
|
|
Weighted- Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value
(in thousands) (1) |
|||||
Outstanding at December 31, 2013
|
|
3,355,054
|
|
|
$
|
1.11
|
|
|
6.04
|
|
$
|
35,742
|
|
Exercised
|
|
(1,029,471
|
)
|
|
$
|
1.09
|
|
|
|
|
|
||
Forfeited
|
|
(62,589
|
)
|
|
$
|
2.41
|
|
|
|
|
|
||
Outstanding at December 31, 2014
|
|
2,262,994
|
|
|
$
|
1.09
|
|
|
5.03
|
|
$
|
16,226
|
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable at December 31, 2014
|
|
2,262,994
|
|
|
$
|
1.09
|
|
|
5.03
|
|
$
|
16,226
|
|
(1)
|
The aggregate intrinsic value of options outstanding and exercisable represents the total pretax intrinsic value (the difference between the fair value of the Company's stock on the last day of each period and the exercise price, multiplied by the number of options where the fair value exceeds the exercise price) that would have been received by the option holders had all option holders exercised their options as of
December 31, 2014
and 2013, respectively.
|
|
|
Restricted Stock Units
|
|
Weighted- Average Grant Date Fair Value (per share)
|
|||
Unvested at December 31, 2013
|
|
41,648,055
|
|
|
$
|
8.06
|
|
Granted
|
|
29,568,490
|
|
|
$
|
7.59
|
|
Vested
|
|
(17,323,096
|
)
|
|
$
|
8.07
|
|
Forfeited
|
|
(12,555,522
|
)
|
|
$
|
7.96
|
|
Unvested at December 31, 2014
|
|
41,337,927
|
|
|
$
|
7.78
|
|
|
|
Performance Share Units
|
|
Weighted- Average Grant Date Fair Value (per share)
|
|||
Unvested at December 31, 2013
|
|
—
|
|
|
$
|
—
|
|
Granted
|
|
1,983,232
|
|
|
$
|
8.07
|
|
Vested
|
|
—
|
|
|
$
|
—
|
|
Forfeited
|
|
(967,388
|
)
|
|
$
|
8.07
|
|
Unvested at December 31, 2014
|
|
1,015,844
|
|
|
$
|
8.07
|
|
|
|
Restricted Stock Awards
|
|
Weighted- Average Grant Date Fair Value (per share)
|
|||
Unvested at December 31, 2013
|
|
97,677
|
|
|
$
|
14.00
|
|
Granted
|
|
—
|
|
|
$
|
—
|
|
Vested
|
|
(50,481
|
)
|
|
$
|
14.54
|
|
Forfeited
|
|
(13,129
|
)
|
|
$
|
17.07
|
|
Unvested at December 31, 2014
|
|
34,067
|
|
|
$
|
15.53
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
United States
|
$
|
(20,057
|
)
|
|
$
|
62,021
|
|
|
$
|
88,638
|
|
International
|
(28,138
|
)
|
|
(80,930
|
)
|
|
6,304
|
|
|||
(Loss) income before provision for income taxes
|
$
|
(48,195
|
)
|
|
$
|
(18,909
|
)
|
|
$
|
94,942
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
(3,518
|
)
|
|
$
|
22,321
|
|
|
$
|
41,551
|
|
State
|
69
|
|
|
1,693
|
|
|
4,778
|
|
|||
International
|
30,279
|
|
|
64,078
|
|
|
107,295
|
|
|||
Total current taxes
|
26,830
|
|
|
88,092
|
|
|
153,624
|
|
|||
Deferred taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
(5,132
|
)
|
|
4,675
|
|
|
(2,977
|
)
|
|||
State
|
(742
|
)
|
|
(5,687
|
)
|
|
(236
|
)
|
|||
International
|
(5,232
|
)
|
|
(17,043
|
)
|
|
(4,438
|
)
|
|||
Total deferred taxes
|
(11,106
|
)
|
|
(18,055
|
)
|
|
(7,651
|
)
|
|||
Provision for income taxes
|
$
|
15,724
|
|
|
$
|
70,037
|
|
|
$
|
145,973
|
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
U.S. federal income tax (benefit) provision at statutory rate
|
$
|
(16,868
|
)
|
|
$
|
(6,618
|
)
|
|
$
|
33,230
|
|
Foreign income and losses taxed at different rates
|
4,815
|
|
|
14,299
|
|
|
10,565
|
|
|||
Unrecognized tax benefits on E-Commerce transaction
|
—
|
|
|
—
|
|
|
17,404
|
|
|||
State income taxes, net of federal benefits and state tax credits
|
(10,051
|
)
|
|
(5,361
|
)
|
|
3,965
|
|
|||
Change in valuation allowances
|
23,515
|
|
|
24,404
|
|
|
29,249
|
|
|||
Effect of foreign and state rate changes on deferred items
|
178
|
|
|
837
|
|
|
(487
|
)
|
|||
Tax effects of intercompany transactions
(1)
|
13,098
|
|
|
35,158
|
|
|
31,011
|
|
|||
Non-deductible stock-based compensation expense
|
6,503
|
|
|
9,000
|
|
|
14,641
|
|
|||
Federal research and development credits
|
(4,693
|
)
|
|
(4,650
|
)
|
|
—
|
|
|||
Non-deductible or non-taxable items
|
(773
|
)
|
|
2,968
|
|
|
6,395
|
|
|||
Provision for income taxes
|
$
|
15,724
|
|
|
$
|
70,037
|
|
|
$
|
145,973
|
|
(1)
|
Includes a tax benefit of
$24.4 million
for the year ended December 31, 2014 resulting from decreases in the Company's liabilities for uncertain tax positions.
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
Deferred tax assets:
|
|
|
|
||||
Reserves and allowances
|
$
|
32,379
|
|
|
$
|
65,356
|
|
Stock-based compensation
|
6,911
|
|
|
13,462
|
|
||
Net operating loss and tax credit carryforwards
|
221,674
|
|
|
152,271
|
|
||
Intangible assets, net
|
11,910
|
|
|
30,039
|
|
||
Investments
|
1,441
|
|
|
3,730
|
|
||
Unrealized foreign exchange losses
|
5,011
|
|
|
—
|
|
||
Other
|
2,610
|
|
|
1,692
|
|
||
Total deferred tax assets
|
281,936
|
|
|
266,550
|
|
||
Less valuation allowances
|
(205,486
|
)
|
|
(173,577
|
)
|
||
Deferred tax assets, net of valuation allowance
|
76,450
|
|
|
92,973
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Unrealized foreign exchange gains
|
—
|
|
|
(3,034
|
)
|
||
Prepaid expenses and other assets
|
(1,455
|
)
|
|
(1,078
|
)
|
||
Property, equipment and software, net
|
(25,159
|
)
|
|
(19,239
|
)
|
||
Deferred revenue
|
(25,013
|
)
|
|
(64,154
|
)
|
||
Total deferred tax liabilities
|
(51,627
|
)
|
|
(87,505
|
)
|
||
Net deferred tax asset
|
$
|
24,823
|
|
|
$
|
5,468
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Beginning Balance
|
|
$
|
110,305
|
|
|
$
|
85,481
|
|
|
$
|
55,127
|
|
Increases related to prior year tax positions
|
|
5,489
|
|
|
10,494
|
|
|
602
|
|
|||
Decreases related to prior year tax positions
|
|
(27,875
|
)
|
|
(2,103
|
)
|
|
(790
|
)
|
|||
Increases related to current year tax positions
|
|
17,348
|
|
|
14,565
|
|
|
29,465
|
|
|||
Foreign currency translation
|
|
(6,946
|
)
|
|
1,868
|
|
|
1,077
|
|
|||
Ending Balance
|
|
$
|
98,321
|
|
|
$
|
110,305
|
|
|
$
|
85,481
|
|
|
|
|
Fair Value Measurement at Reporting Date Using
|
||||||||||||
Description
|
December 31, 2014
|
|
Quoted Prices in Active Markets for
Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
440,596
|
|
|
$
|
440,596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Convertible debt securities
|
2,527
|
|
|
—
|
|
|
—
|
|
|
2,527
|
|
||||
Redeemable preferred shares
|
4,910
|
|
|
—
|
|
|
—
|
|
|
4,910
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
1,983
|
|
|
—
|
|
|
—
|
|
|
1,983
|
|
|
|
|
Fair Value Measurement at Reporting Date Using
|
||||||||||||
Description
|
December 31, 2013
|
|
Quoted Prices in Active Markets for
Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
585,514
|
|
|
$
|
585,514
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Convertible debt securities
|
3,174
|
|
|
—
|
|
|
—
|
|
|
3,174
|
|
||||
Redeemable preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
606
|
|
|
—
|
|
|
—
|
|
|
606
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Available-for-sale securities
|
|
|
|
|
|
|
||||||
Convertible debt securities:
|
|
|
|
|
|
|
||||||
Beginning Balance
|
|
$
|
3,174
|
|
|
$
|
3,087
|
|
|
$
|
—
|
|
Purchases of convertible debt securities
|
|
—
|
|
|
370
|
|
|
3,000
|
|
|||
Total gains (losses) included in other comprehensive income
|
|
693
|
|
|
(283
|
)
|
|
87
|
|
|||
Total gains (losses) included in other expense, net
|
|
(1,340
|
)
|
|
—
|
|
|
—
|
|
|||
Ending Balance
|
|
$
|
2,527
|
|
|
$
|
3,174
|
|
|
$
|
3,087
|
|
Unrealized (losses) gains still held
(1)
|
|
$
|
(647
|
)
|
|
$
|
(283
|
)
|
|
$
|
87
|
|
Redeemable preferred shares:
|
|
|
|
|
|
|
||||||
Beginning Balance
|
|
$
|
—
|
|
|
$
|
42,539
|
|
|
$
|
—
|
|
Acquisitions of preferred shares in exchange transactions (See note 6)
|
|
—
|
|
|
34,982
|
|
|
56,940
|
|
|||
Purchase of redeemable preferred shares
|
|
4,599
|
|
|
8,000
|
|
|
—
|
|
|||
Total gains included in other comprehensive income
|
|
311
|
|
|
—
|
|
|
—
|
|
|||
Other-than-temporary impairments included in earnings
|
|
—
|
|
|
(85,521
|
)
|
|
(14,401
|
)
|
|||
Ending Balance
|
|
$
|
4,910
|
|
|
$
|
—
|
|
|
$
|
42,539
|
|
Unrealized (losses) gains still held
(1)
|
|
$
|
311
|
|
|
$
|
(85,521
|
)
|
|
$
|
(14,401
|
)
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Contingent Consideration:
|
|
|
|
|
|
|
||||||
Beginning Balance
|
|
$
|
606
|
|
|
$
|
7,601
|
|
|
$
|
11,230
|
|
Issuance of contingent consideration in connection with acquisitions
|
|
4,388
|
|
|
3,567
|
|
|
3,400
|
|
|||
Settlements of contingent consideration liabilities
|
|
(424
|
)
|
|
(4,377
|
)
|
|
(4,936
|
)
|
|||
Reclass to non-fair value liabilities when no longer contingent
|
|
(143
|
)
|
|
(3,014
|
)
|
|
(4,978
|
)
|
|||
Total (gains) losses included in earnings
(2)
|
|
(2,444
|
)
|
|
(3,171
|
)
|
|
897
|
|
|||
Reclass of contingent consideration from Level 2 to Level 3
|
|
—
|
|
|
—
|
|
|
1,988
|
|
|||
Ending Balance
|
|
$
|
1,983
|
|
|
$
|
606
|
|
|
$
|
7,601
|
|
Unrealized (gains) losses still held
(1)
|
|
$
|
(2,405
|
)
|
|
$
|
360
|
|
|
$
|
211
|
|
(1)
|
Represents the unrealized losses or gains recorded in earnings and/or other comprehensive income (loss) during the period for assets and liabilities classified as Level 3 that are still held (or outstanding) at the end of the period.
|
(2)
|
Changes in the fair value of contingent consideration liabilities are classified within "Acquisition-related expense (benefit), net" on the consolidated statements of operations.
|
|
|
|
Fair Value Measurement at Reporting Date Using
|
||||||||||||
Description
|
December 31, 2012
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Asset impairments:
|
|
|
|
|
|
|
|
||||||||
Cost method investment in Life Media Limited (F-tuan) common shares
|
$
|
34,982
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,982
|
|
Equity method investment
|
$
|
495
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
495
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
||||||||
Cost method investments
|
|
$
|
15,630
|
|
|
$
|
16,134
|
|
|
$
|
15,788
|
|
|
$
|
15,573
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
|
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
||||||||||||
Basic loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allocation of net loss
|
|
$
|
(63,691
|
)
|
|
$
|
(228
|
)
|
|
$
|
(88,626
|
)
|
|
$
|
(320
|
)
|
|
$
|
(50,842
|
)
|
|
$
|
(189
|
)
|
Less: Allocation of adjustment of redeemable noncontrolling interests to redemption value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,557
|
|
|
47
|
|
||||||
Less: Allocation of net income attributable to noncontrolling interests
|
|
9,138
|
|
|
33
|
|
|
6,424
|
|
|
23
|
|
|
3,728
|
|
|
14
|
|
||||||
Allocation of net loss attributable to common stockholders
|
|
$
|
(72,829
|
)
|
|
$
|
(261
|
)
|
|
$
|
(95,050
|
)
|
|
$
|
(343
|
)
|
|
$
|
(67,127
|
)
|
|
$
|
(250
|
)
|
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average common shares outstanding
|
|
672,432,417
|
|
|
2,399,976
|
|
|
661,510,218
|
|
|
2,399,976
|
|
|
647,814,143
|
|
|
2,399,976
|
|
||||||
Basic loss per share
|
|
$
|
(0.11
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allocation of net loss attributable to common stockholders
|
|
$
|
(72,829
|
)
|
|
$
|
(261
|
)
|
|
$
|
(95,050
|
)
|
|
$
|
(343
|
)
|
|
$
|
(67,127
|
)
|
|
$
|
(250
|
)
|
Reallocation of net income attributable to common stockholders as a result of conversion of Class B
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Allocation of net loss attributable to common stockholders
|
|
$
|
(72,829
|
)
|
|
$
|
(261
|
)
|
|
$
|
(95,050
|
)
|
|
$
|
(343
|
)
|
|
$
|
(67,127
|
)
|
|
$
|
(250
|
)
|
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average common shares outstanding used in basic computation
|
|
672,432,417
|
|
|
2,399,976
|
|
|
661,510,218
|
|
|
2,399,976
|
|
|
647,814,143
|
|
|
2,399,976
|
|
||||||
Conversion of Class B
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Employee stock options
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted shares and RSUs
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Weighted-average diluted shares outstanding
(1)
|
|
672,432,417
|
|
|
2,399,976
|
|
|
661,510,218
|
|
|
2,399,976
|
|
|
647,814,143
|
|
|
2,399,976
|
|
||||||
Diluted loss per share
|
|
$
|
(0.11
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
(1)
|
Conversion of Class B shares into Class A shares and outstanding equity awards have not been reflected in the diluted loss per share calculation for the
years ended
December 31, 2014
,
2013
and
2012
because the effect would be antidilutive.
|
|
|
Year Ended December 31,
|
|||||||
|
|
2014
|
|
2013
|
|
2012
|
|||
Stock options
|
|
2,775,771
|
|
|
5,594,033
|
|
|
7,713,421
|
|
Restricted stock units
|
|
42,341,320
|
|
|
39,618,897
|
|
|
29,699,348
|
|
Restricted stock
|
|
52,854
|
|
|
298,292
|
|
|
577,048
|
|
ESPP shares
|
|
507,916
|
|
|
444,439
|
|
|
271,402
|
|
Total
|
|
45,677,861
|
|
|
45,955,661
|
|
|
38,261,219
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||
North America
|
|
|
|
|
|
|
||||||
Revenue
(1)
|
|
$
|
1,824,461
|
|
|
$
|
1,521,358
|
|
|
$
|
1,165,700
|
|
Segment cost of revenue and operating expenses
(2)
|
|
1,755,113
|
|
|
1,380,746
|
|
|
1,025,974
|
|
|||
Segment operating income
(2)
|
|
69,348
|
|
|
140,612
|
|
|
139,726
|
|
|||
EMEA
|
|
|
|
|
|
|
||||||
Revenue
(1)
|
|
961,130
|
|
|
742,915
|
|
|
805,476
|
|
|||
Segment cost of revenue and operating expenses
(2)
|
|
857,062
|
|
|
631,409
|
|
|
699,470
|
|
|||
Segment operating income
(2)
|
|
104,068
|
|
|
111,506
|
|
|
106,006
|
|
|||
Rest of World
|
|
|
|
|
|
|
||||||
Revenue
|
|
406,097
|
|
|
309,382
|
|
|
363,296
|
|
|||
Segment cost of revenue and operating expenses
(2)
|
|
471,067
|
|
|
364,295
|
|
|
405,313
|
|
|||
Segment operating loss
(2)
|
|
(64,970
|
)
|
|
(54,913
|
)
|
|
(42,017
|
)
|
|||
Consolidated
|
|
|
|
|
|
|
||||||
Revenue
|
|
3,191,688
|
|
|
2,573,655
|
|
|
2,334,472
|
|
|||
Segment cost of revenue and operating expenses
(2)
|
|
3,083,242
|
|
|
2,376,450
|
|
|
2,130,757
|
|
|||
Segment operating income
(2)
|
|
108,446
|
|
|
197,205
|
|
|
203,715
|
|
|||
Stock-based compensation
|
|
122,019
|
|
|
121,462
|
|
|
104,117
|
|
|||
Acquisition-related expense (benefit), net
|
|
1,269
|
|
|
(11
|
)
|
|
897
|
|
|||
(Loss) income from operations
|
|
(14,842
|
)
|
|
75,754
|
|
|
98,701
|
|
|||
Other expense, net
|
|
(33,353
|
)
|
|
(94,663
|
)
|
|
(3,759
|
)
|
|||
(Loss) income before provision for income taxes
|
|
(48,195
|
)
|
|
(18,909
|
)
|
|
94,942
|
|
|||
Provision for income taxes
|
|
15,724
|
|
|
70,037
|
|
|
145,973
|
|
|||
Net loss
|
|
$
|
(63,919
|
)
|
|
$
|
(88,946
|
)
|
|
$
|
(51,031
|
)
|
(1)
|
North America includes revenue from the United States of
$1,784.6 million
,
$1,471.9 million
and
$1,108.4 million
for the
years ended
December 31, 2014
,
2013
and
2012
respectively. Beginning in September 2013, direct revenue transactions in the EMEA Goods category have been transacted through a Switzerland-based subsidiary. As a result, EMEA includes revenue from Switzerland of
$468.7 million
for the
year ended
December 31, 2014
. There were no other individual countries that represented more than
10%
of consolidated total revenue for the years ended December 31, 2014, 2013 or 2012.
|
(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. The following table summarizes the Company's stock-based compensation expense and acquisition-related expense (benefit), net by reportable segment for the
years ended
December 31, 2014
,
2013
and
2012
. (in thousands):
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
|
|
Stock-based compensation
|
|
Acquisition-related
|
|
Stock-based compensation
|
|
Acquisition-related
|
|
Stock-based compensation
|
|
Acquisition-related
|
||||||||||||
North America
|
|
$
|
99,939
|
|
|
$
|
1,125
|
|
|
$
|
90,877
|
|
|
$
|
1,285
|
|
|
$
|
65,127
|
|
|
$
|
(2,780
|
)
|
EMEA
|
|
9,927
|
|
|
144
|
|
|
16,263
|
|
|
(1,296
|
)
|
|
15,123
|
|
|
3,677
|
|
||||||
Rest of World
|
|
12,153
|
|
|
—
|
|
|
14,322
|
|
|
—
|
|
|
23,867
|
|
|
—
|
|
||||||
Consolidated
|
|
$
|
122,019
|
|
|
$
|
1,269
|
|
|
$
|
121,462
|
|
|
$
|
(11
|
)
|
|
$
|
104,117
|
|
|
$
|
897
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
North America
(1)
|
$
|
1,150,417
|
|
|
$
|
1,267,158
|
|
EMEA
|
552,486
|
|
|
616,126
|
|
||
Rest of World
(1)
|
524,694
|
|
|
158,726
|
|
||
Consolidated total assets
|
$
|
2,227,597
|
|
|
$
|
2,042,010
|
|
(1)
|
North America contains assets from the United States of
$1,120.4 million
and
$1,231.3 million
as of
December 31, 2014
and
2013
, respectively. Rest of World contains assets from the Republic of Korea, including those assets acquired as a part of our acquisition of Ticket Monster described in Note 3 "
Business Combinations
," of
$388.0 million
as of
December 31, 2014
. There were no other individual countries that represented more than
10%
of consolidated total assets as of
December 31, 2014
and
2013
, respectively.
|
(1)
|
Substantially all tangible property and equipment within North America is located in the United States.
|
(2)
|
Tangible property and equipment, net located within Ireland represented approximately
12%
of the Company's consolidated tangible property and equipment, net as of December 31, 2014. Tangible property and equipment, net located within Switzerland represented approximately
11%
|
|
Year Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
North America
|
$
|
83,106
|
|
|
$
|
57,700
|
|
|
$
|
30,580
|
|
EMEA
|
24,849
|
|
|
24,157
|
|
|
17,546
|
|
|||
Rest of World
|
36,966
|
|
|
7,592
|
|
|
7,675
|
|
|||
Consolidated total
|
$
|
144,921
|
|
|
$
|
89,449
|
|
|
$
|
55,801
|
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party and other
|
$
|
674,605
|
|
|
$
|
671,846
|
|
|
$
|
665,587
|
|
|
$
|
391,179
|
|
|
$
|
430,020
|
|
|
$
|
501,782
|
|
|
$
|
167,552
|
|
|
$
|
182,010
|
|
|
$
|
221,859
|
|
|
$
|
1,233,336
|
|
|
$
|
1,283,876
|
|
|
$
|
1,389,228
|
|
Direct
|
—
|
|
|
1,772
|
|
|
12,037
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,772
|
|
|
12,037
|
|
||||||||||||
Total
|
674,605
|
|
|
673,618
|
|
|
677,624
|
|
|
391,179
|
|
|
430,020
|
|
|
501,782
|
|
|
167,552
|
|
|
182,010
|
|
|
221,859
|
|
|
1,233,336
|
|
|
1,285,648
|
|
|
1,401,265
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party
|
5,966
|
|
|
17,409
|
|
|
60,269
|
|
|
63,650
|
|
|
133,117
|
|
|
186,495
|
|
|
146,984
|
|
|
69,344
|
|
|
87,746
|
|
|
216,600
|
|
|
219,870
|
|
|
334,510
|
|
||||||||||||
Direct
|
1,074,913
|
|
|
774,023
|
|
|
391,239
|
|
|
442,344
|
|
|
115,881
|
|
|
36,393
|
|
|
46,892
|
|
|
27,325
|
|
|
10,821
|
|
|
1,564,149
|
|
|
917,229
|
|
|
438,453
|
|
||||||||||||
Total
|
1,080,879
|
|
|
791,432
|
|
|
451,508
|
|
|
505,994
|
|
|
248,998
|
|
|
222,888
|
|
|
193,876
|
|
|
96,669
|
|
|
98,567
|
|
|
1,780,749
|
|
|
1,137,099
|
|
|
772,963
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party
|
68,977
|
|
|
56,308
|
|
|
36,568
|
|
|
63,957
|
|
|
63,897
|
|
|
76,553
|
|
|
44,669
|
|
|
30,703
|
|
|
42,870
|
|
|
177,603
|
|
|
150,908
|
|
|
155,991
|
|
||||||||||||
Direct
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,253
|
|
||||||||||||
Total
|
68,977
|
|
|
56,308
|
|
|
36,568
|
|
|
63,957
|
|
|
63,897
|
|
|
80,806
|
|
|
44,669
|
|
|
30,703
|
|
|
42,870
|
|
|
177,603
|
|
|
150,908
|
|
|
160,244
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total revenue
|
$
|
1,824,461
|
|
|
$
|
1,521,358
|
|
|
$
|
1,165,700
|
|
|
$
|
961,130
|
|
|
$
|
742,915
|
|
|
$
|
805,476
|
|
|
$
|
406,097
|
|
|
$
|
309,382
|
|
|
$
|
363,296
|
|
|
$
|
3,191,688
|
|
|
$
|
2,573,655
|
|
|
$
|
2,334,472
|
|
(1)
|
Includes revenue from deals with local and national merchants and through local events.
|
|
North America
|
|
EMEA
|
|
Rest of World
|
|
Consolidated
|
||||||||||||||||||||||||||||||||||||||||
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
|
Year Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||
Local
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party and other
|
$
|
581,067
|
|
|
$
|
582,723
|
|
|
$
|
541,716
|
|
|
$
|
364,545
|
|
|
$
|
383,725
|
|
|
$
|
453,970
|
|
|
$
|
138,527
|
|
|
$
|
153,406
|
|
|
$
|
173,735
|
|
|
$
|
1,084,139
|
|
|
$
|
1,119,854
|
|
|
$
|
1,169,421
|
|
Direct
|
—
|
|
|
(782
|
)
|
|
1,909
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(782
|
)
|
|
1,909
|
|
||||||||||||
Total
|
581,067
|
|
|
581,941
|
|
|
543,625
|
|
|
364,545
|
|
|
383,725
|
|
|
453,970
|
|
|
138,527
|
|
|
153,406
|
|
|
173,735
|
|
|
1,084,139
|
|
|
1,119,072
|
|
|
1,171,330
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Goods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party
|
5,112
|
|
|
15,319
|
|
|
48,288
|
|
|
55,434
|
|
|
116,357
|
|
|
168,429
|
|
|
91,486
|
|
|
39,699
|
|
|
66,271
|
|
|
152,032
|
|
|
171,375
|
|
|
282,988
|
|
||||||||||||
Direct
|
88,810
|
|
|
66,753
|
|
|
36,188
|
|
|
77,706
|
|
|
13,194
|
|
|
(2,521
|
)
|
|
(2,984
|
)
|
|
(224
|
)
|
|
(2,563
|
)
|
|
163,532
|
|
|
79,723
|
|
|
31,104
|
|
||||||||||||
Total
|
93,922
|
|
|
82,072
|
|
|
84,476
|
|
|
133,140
|
|
|
129,551
|
|
|
165,908
|
|
|
88,502
|
|
|
39,475
|
|
|
63,708
|
|
|
315,564
|
|
|
251,098
|
|
|
314,092
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Travel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Third party
|
56,994
|
|
|
48,824
|
|
|
27,208
|
|
|
59,229
|
|
|
56,850
|
|
|
68,777
|
|
|
33,260
|
|
|
25,689
|
|
|
33,596
|
|
|
149,483
|
|
|
131,363
|
|
|
129,581
|
|
||||||||||||
Direct
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
||||||||||||
Total
|
56,994
|
|
|
48,824
|
|
|
27,208
|
|
|
59,229
|
|
|
56,850
|
|
|
69,306
|
|
|
33,260
|
|
|
25,689
|
|
|
33,596
|
|
|
149,483
|
|
|
131,363
|
|
|
130,110
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total gross profit
|
$
|
731,983
|
|
|
$
|
712,837
|
|
|
$
|
655,309
|
|
|
$
|
556,914
|
|
|
$
|
570,126
|
|
|
$
|
689,184
|
|
|
$
|
260,289
|
|
|
$
|
218,570
|
|
|
$
|
271,039
|
|
|
$
|
1,549,186
|
|
|
$
|
1,501,533
|
|
|
$
|
1,615,532
|
|
(1)
|
Includes gross profit from deals with local and national merchants and through local events.
|
|
|
Quarter Ended
|
||||||||||||||||||||||||||||||
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
||||||||||||||||
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
||||||||||||||||
Consolidated Statements of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue
|
|
$
|
925,421
|
|
|
$
|
757,054
|
|
|
$
|
751,576
|
|
|
$
|
757,637
|
|
|
$
|
768,447
|
|
|
$
|
595,059
|
|
|
$
|
608,747
|
|
|
$
|
601,402
|
|
Cost of revenue
|
|
531,962
|
|
|
376,910
|
|
|
361,714
|
|
|
371,916
|
|
|
390,239
|
|
|
235,437
|
|
|
224,053
|
|
|
222,393
|
|
||||||||
Gross profit
|
|
393,459
|
|
|
380,144
|
|
|
389,862
|
|
|
385,721
|
|
|
378,208
|
|
|
359,622
|
|
|
384,694
|
|
|
379,009
|
|
||||||||
Income (loss) from operations
|
|
18,394
|
|
|
(5,429
|
)
|
|
(7,854
|
)
|
|
(19,953
|
)
|
|
13,352
|
|
|
13,812
|
|
|
27,412
|
|
|
21,178
|
|
||||||||
Net income (loss)
(1)
|
|
11,384
|
|
|
(19,018
|
)
|
|
(20,922
|
)
|
|
(35,363
|
)
|
|
(78,861
|
)
|
|
(1,292
|
)
|
|
(5,551
|
)
|
|
(3,242
|
)
|
||||||||
Net income (loss) attributable to Groupon, Inc.
(1)
|
|
8,788
|
|
|
(21,208
|
)
|
|
(22,875
|
)
|
|
(37,795
|
)
|
|
(81,247
|
)
|
|
(2,580
|
)
|
|
(7,574
|
)
|
|
(3,992
|
)
|
||||||||
Net earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$0.01
|
|
$(0.03)
|
|
$(0.03)
|
|
$(0.06)
|
|
$(0.12)
|
|
$(0.00)
|
|
$(0.01)
|
|
$(0.01)
|
||||||||||||||||
Diluted
|
|
$0.01
|
|
$(0.03)
|
|
$(0.03)
|
|
$(0.06)
|
|
$(0.12)
|
|
$(0.00)
|
|
$(0.01)
|
|
$(0.01)
|
||||||||||||||||
Weighted average number of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
671,885,967
|
|
|
669,526,524
|
|
|
675,538,392
|
|
|
682,378,690
|
|
|
668,046,073
|
|
|
666,432,848
|
|
|
662,361,436
|
|
|
658,800,417
|
|
||||||||
Diluted
|
|
681,543,847
|
|
|
669,526,524
|
|
|
675,538,392
|
|
|
682,378,690
|
|
|
668,046,073
|
|
|
666,432,848
|
|
|
662,361,436
|
|
|
658,800,417
|
|
(1)
|
Net loss and net loss attributable to Groupon, Inc. for the quarter ended December 31, 2013 included an impairment of the Company's investment in F-tuan of
$85.5 million
(
$77.8 million
, net of tax). See Note 6
"Investments."
|
|
Balance at
Beginning of
Year
|
|
Charged to
Expense
|
|
Acquisitions
and Other
|
|
Balance at End
of Year
|
||||||||
|
(in thousands)
|
||||||||||||||
TAX VALUATION ALLOWANCE:
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2014
|
$
|
173,577
|
|
|
$
|
23,515
|
|
|
$
|
8,394
|
|
|
$
|
205,486
|
|
Year ended December 31, 2013
|
159,249
|
|
|
24,404
|
|
|
(10,076
|
)
|
|
173,577
|
|
||||
Year ended December 31, 2012
|
128,215
|
|
|
27,751
|
|
|
3,283
|
|
|
159,249
|
|
GROUPON, INC.
|
||||
By:
|
|
/s/ ERIC P. LEFKOFSKY
|
||
|
|
Name:
|
|
Eric P. Lefkofsky
|
|
|
Title:
|
|
Chief Executive Officer
|
Signature
|
|
Title
|
|
|
|
/s/ Eric P. Lefkofsky
|
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
Eric P. Lefkofsky
|
|
|
/s/ Jason E. Child
|
|
Chief Financial Officer (Principal Financial Officer)
|
Jason E. Child
|
|
|
/s/ Brian C. Stevens
|
|
Chief Accounting Officer (Principal Accounting Officer)
|
Brian C. Stevens
|
|
|
/s/ Peter J. Barris
|
|
Director
|
Peter J. Barris
|
|
|
/s/ Robert J. Bass
|
|
Director
|
Robert J. Bass
|
|
|
/s/ Daniel T. Henry
|
|
Director
|
Daniel T. Henry
|
|
|
/s/ Ann E. Ziegler
|
|
Director
|
Ann E. Ziegler
|
|
|
/s/ Bradley A. Keywell
|
|
Director
|
Bradley A. Keywell
|
|
|
/s/ Theodore J. Leonsis
|
|
Director
|
Theodore J. Leonsis
|
|
|
/s/ Jeffrey T. Housenbold
|
|
Director
|
Jeffrey T. Housenbold
|
|
Exhibit
Number
|
|
Description
|
|
2.1
|
|
|
Share Purchase Agreement, dated as of November 6, 2013, among Groupon, Inc., Groupon Trailblazer, Inc., LivingSocial, Inc. and LivingSocial, B.V. (incorporated by reference to the Company's Current Report on Form 8-K filed on November 7, 2013).
|
2.2
|
|
|
Amendment No. 1 to the Share Purchase Agreement, dated as of November 26, 2013, among Groupon, Inc., Groupon Trailblazer, Inc., LivingSocial, Inc. and LivingSocial, B.V. (incorporated by reference to the Company's Current Report on Form 8-K filed on November 29, 2013).
|
2.3
|
|
|
Amendment No. 2 to the Share Purchase Agreement, dated as of January 1, 2014, among Groupon, Inc., Groupon Trailblazer, Inc., LivingSocial, Inc. and LivingSocial, B.V. (incorporated by reference to the Company's Current Report on Form 8-K filed on January 2, 2014).
|
2.4
|
|
|
Merger Agreement, dated as of January 13, 2014, among Groupon, Inc., Groupon Esteban, Inc., and Ideeli, Inc. (incorporated by reference to the Company's Current Report on Form 8-K filed on January 13, 2014).
|
3.1*
|
|
|
Sixth Amended and Restated Certificate of Incorporation.
|
3.3*
|
|
|
Amended and Restated By-Laws.
|
4.1*
|
|
|
Specimen Class A common stock certificate of the Registrant.
|
4.2*
|
|
|
Third Amended and Restated Investors Rights Agreement, dated as of December 10, 2010, between Groupon, Inc. and certain investors named therein.
|
10.1*
|
|
|
2008 Stock Option Plan.**
|
10.2*
|
|
|
Form of Notice of Grant of Stock Option under 2008 Stock Option Plan.**
|
10.3*
|
|
|
2010 Stock Plan.**
|
10.4*
|
|
|
Form of Notice of Grant of Stock Option under 2010 Stock Plan.**
|
10.5*
|
|
|
Form of Notice of Restricted Stock Unit Award under 2010 Stock Plan.**
|
10.6*
|
|
|
Amended and Restated Employment Agreement, dated as of April 29, 2011, by and between Groupon, Inc. and Jason Child.**
|
10.7
|
|
|
Amendment to Amended and Restated Employment Agreement, effective as of January 1, 2012, by and between Groupon, Inc. and Jason Child (incorporated by reference to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2012).**
|
10.8*
|
|
|
Agreement of Lease, dated as of October 14, 2010, by and between 600 West Chicago Associates LLC and Groupon, Inc.
|
10.9*
|
|
|
Agreement of Lease, dated as of December 7, 2010, by and between 600 West Chicago Associates LLC and Groupon, Inc.
|
10.10*
|
|
|
Form of Indemnification Agreement**
|
10.11
|
|
|
Form of Notice of Restricted Stock Award under 2011 Incentive Plan (incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2012).**
|
10.12
|
|
|
Form of Severance Benefit Agreement as entered into between Groupon, Inc. and its executive officers (incorporated by reference to the Company's Current Report on Form 8-K filed on August 7, 2013).**
|
10.13
|
|
|
Employment Agreement, dated as of May 11, 2014, by and between Groupon, Inc. and Dane Drobny (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2014).**
|
10.14
|
|
|
Credit Agreement, dated as of August 1, 2014, by and among JPMorgan Chase Bank, National Association, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding, Inc., Groupon, Inc., and the lenders party thereto from time to time (incorporated by reference to the Company’s Current Report on Form 8-K filed on August 5, 2014).
|
10.15
|
|
|
2011 Incentive Plan, as amended and restated effective as of May 20, 2014.**
|
10.16
|
|
|
Non-Employee Directors’ Compensation Plan.**
|
21.1
|
|
|
Subsidiaries of Groupon, Inc.
|
23.1
|
|
|
Consent of Ernst & Young LLP
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
|
|
Interactive data file
|
_________________________
First Name
|
_________________________
Middle Name
|
_________________________
Last Name
|
||||
___________________________________
Street Address
|
_______________
City
|
________
State
|
______________
Zip Code
|
|||
_________________________
Social Security Number
|
_________________________
Date of Birth
|
MALE
o
FEMALE
o
|
||||
_________________________
Telephone Number
|
___________________________________
Email
|
|
•
|
I elect to exchange a whole percentage of my Cash Retainer equal to ________% (0%-100%) for an award of DSUs under the terms of the Plan.
|
•
|
I elect to receive a distribution of my DSUs on [_____ ___, ____].
|
Subsidiary
|
|
Jurisdiction
|
U.S. Entities
|
|
|
Needish, Inc.
|
|
Delaware
|
GI International Holdings, Inc.
|
|
Delaware
|
Ideeli, Inc.
|
|
Delaware
|
Groupon Trailblazer, Inc.
|
|
Delaware
|
|
|
|
Foreign Entities
|
|
|
Groupon Holdings, BV
|
|
Netherlands
|
Groupon Europe, GMBH
|
|
Germany
|
|
|
|
|
|
|
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|