Groupon 2011 Annual Report Download - page 53

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Consolidated segment operating (loss) income (CSOI).
CSOI is the consolidated operating (loss) income of our two segments, North America and
International, adjusted for acquisition-related costs and stock-based compensation expense. Acquisition-related costs are non-recurring, non-
cash items related to
certain of our acquisitions. Stock-based compensation expense is a non-cash item. As reported under U.S. GAAP, we do not allocate stock1
based compensation
and acquisition1related expense to our segments. We use CSOI to allocate resources and evaluate performance internally.
We consider CSOI to be an important measure for management to evaluate the performance of our business as it excludes certain non-
cash expenses.
We believe it is important to view CSOI as a complement to our entire consolidated statements of operations. When evaluating our performance, you should
consider CSOI as a complement to other financial performance measures, including various cash flow metrics, net loss and our other U.S. GAAP results.
The following is a reconciliation of CSOI to the most comparable U.S. GAAP measure, ‘‘Loss from operations,’’
for the years ended December 31,
2009, 2010 and 2011.
___________________________________________
51
Year Ended December 31,
2009
2010
2011
(in thousands)
Loss from operations
$
(1,077
)
$
(420,344
)
$
(233,386
)
Adjustments:
Stock-based compensation (1)
115
36,168
93,590
Acquisition-related (2)
—
203,183
(4,537
)
Total adjustments
115
239,351
89,053
CSOI
$
(962
)
$
(180,993
)
$
(144,333
)
(1) Represents non-cash stock-
based compensation expense recorded within selling, general and administrative expense, cost of revenue and marketing expense.
(2) Primarily represents non-
cash charges for remeasurement of the fair value of contingent consideration related to acquisitions made by the Company in 2010 and 2011.