Chegg 2013 Annual Report Download - page 143

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CHEGG, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 16. Related-Party Transactions
During 2013 and 2012, we had purchases of $0.4 million and $0.2 million, respectively of products from
Adobe Systems, or Adobe, for which our Chief Executive Officer is a member of the Board of Directors. There
was no outstanding accounts receivable from and payable to Adobe as of December 31, 2013. The outstanding
accounts receivable from and payable to Adobe as of December 31, 2012, were $0.2 million and $15,000,
respectively. During 2012, we recorded brand advertising revenue of $0.2 million. There were no transactions
with Adobe in 2011.
In addition, during 2012, we purchased $0.1 million of products and services from Jive Software, for which
one of our directors is a member of the Board of Directors. There were no outstanding accounts receivable or
accounts payable between us and Jive Software as of December 31, 2012.
The terms of our contracts with the above related parties are consistent with our contracts with other
independent parties.
Note 17. Employee Benefit Plan
We sponsor a 401(k) savings plan for eligible employees and their beneficiaries. Contributions by us are
discretionary. Participants may contribute, on a pretax basis, a percentage of their annual compensation, but not
to exceed a maximum contribution amount pursuant to Section 401(k) of the Internal Revenue Code. During
2013, 2012 and 2011, our matching contributions totaled approximately $0.3 million, $0.3 million, $0.2 million,
respectively.
Note 18. Segment Information
Our chief operating decision-maker is our Chief Executive Officer who reviews financial information
presented on a consolidated basis. There are no segment managers who are held accountable by the chief
operating decision-maker, or anyone else, for operations, operating results, and planning for levels or
components below the consolidated unit level. Accordingly, we have determined that we have a single reporting
segment and operating unit structure.
Product Information
We derive our revenue from the rental or sale of print textbooks and from non-print products and digital
services, net of refunds or charge backs from our payment processors. Non-print products and digital services
primarily include the distribution of eTextbooks, Chegg Study, enrollment marketing services and brand
advertising. Revenue is as follows (in thousands):
Year Ended December 31,
2013 2012 2011
Print textbooks ............................... $203,077 $185,169 $160,392
Non-print products and digital services ............ 52,498 28,165 11,626
$255,575 $213,334 $172,018
Geographic Information
Our headquarters and most of our operations are located in the United States. We conduct our sales,
marketing and customer service activities primarily in the United States. Geographic revenue information is
based on the location of the customer. In 2013, 2012 and 2011, substantially all of our revenue and long-lived
assets are located in the United States.
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