Groupon 2013 Annual Report Download - page 49

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41
Classification of stock-based compensation within cost of revenue and operating expenses
Cost of revenue and operating expenses include stock-based compensation as follows:
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
Foreign exchange rate neutral operating results
The effect on our gross billings, revenue, cost of revenue and operating expenses, and income from operations for the
year ended December 31, 2013 from changes in exchange rates versus the U.S. dollar was as follows:
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.
Gross Billings
Gross billings represents the total dollar value of customer purchases of goods and services, excluding applicable taxes
and net of estimated refunds. Gross billings for the years ended December 31, 2013 and 2012 were as follows:
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
For third party revenue deals, gross billings differs from third party revenue reported in our consolidated statements of