Travelzoo 2010 Annual Report Download - page 86

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As of December 31, 2009: North America Europe
Discontinued
Operations Elimination Consolidated
Long-lived assets: ........... $ 5,319 $ 183 $— $ (2) $ 5,500
Total assets ................ 64,095 4,960 — (22,923) 46,132
Revenue for each segment is recognized from the locations within a designated geographic region. Property
and equipment are attributed to the geographic region in which the assets are located.
Significant customer information is as follows:
Customer 2010 2009 2008 2010 2009
Year Ended
December 31, December 31, December 31,
Percent of
Revenues Percent of
Accounts Receivable
Orbitz Worldwide ....................... * * 13% * *
* Less than 10%
The agreements with this customer are in the form of multiple insertion orders from groups of entities under
common control, in either the Company’s standard form or in the customer’s form.
(9) Employee Benefit Plan
The Company maintains a 401(k) Profit Sharing Plan & Trust (the “401(k) Plan”) for its employees in the
United States. The 401(k) Plan allows employees of the Company to contribute up to 80% of their eligible
compensation, subject to certain limitations. Since 2006, the Company matches employee contributions up to
$1,500 per year. Employee contributions are fully vested upon contribution, whereas the Company’s matching
contributions are fully vested after the first year of service. The Company also has various defined contribution
plans for our international employees. The Company’s contributions to these benefit plans were approximately
$902,000, $705,000 and $420,000 for the years ended December 31, 2010, December 31, 2009 and December 31,
2008, respectively.
(10) Related Party Transaction
In November 2007, the Company entered into an independent contractor agreement with Holger Bartel, the
Company’s former Chief Executive Officer, the Company’s Chairman, and brother of Ralph Bartel, who controls
the Company, to provide consulting services. Fees and expenses for these services during the year ended
December 31, 2008 totaled approximately $591,000. Effective October 1, 2008, Holger Bartel was appointed
as Chief Executive Officer of the Company and the independent contractor agreement between the Company and
Holger Bartel was terminated on September 30, 2008. Holger Bartel served as the Company’s Chief Executive
Officer until June 2010. In July 2010, the Company entered into an independent contractor agreement with Holger
Bartel to provide consulting services. Fees for these services rendered during the year ended December 31, 2010
totaled approximately $275,000.
On October 31, 2009, the Company completed the sale of its Asia Pacific operating segment to Azzurro Capital
Inc. and its wholly owned subsidiaries, Travelzoo (Asia) Limited and Travelzoo Japan K.K. Azzurro Capital Inc. is
owned and controlled by the Ralph Bartel 2005 Trust, on behalf of itself. Ralph Bartel, the Company’s principal
shareholder, is a Director of the Company and through September 30, 2010 was the Company’s Chairman.
Mr. Bartel is a member of the board of directors of Azzurro Capital Inc. and is currently the sole beneficiary of the
Ralph Bartel 2005 Trust. The Company’s receivables from Travelzoo (Asia) Limited and Travelzoo Japan K.K.
totaled $89,000 and $94,000 as of December 31, 2010 and 2009, respectively, and were related primarily to fees
under the Hosting Agreement and Referral Agreement. The $89,000 and $94,000 are part of prepaid expenses and
59
TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)