Travelzoo 2007 Annual Report Download - page 85

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As of December 31, 2006 North America Europe Asia Pacific Elimination Consolidated
Property and equipment, net: .... $ 126 $ 46 $— $ — $ 172
Total assets ................. 45,922 3,093 — (5,315) 43,700
Revenue for each segment is recognized from the locations within a designated geographic region in
accordance with SAB 104. Property and equipment are attributed to the geographic region in which the assets
are located.
Significant customer information is as follows:
Customer 2007 2006 2005 2007 2006
December 31,December 31,
Year Ended
December 31,
Percent of
Account Receivable
Percent of
Revenues
Travelport Limited ....................... 15% 16% 12% 14% 16%
Expedia, Inc. ........................... 11% 14% * 18% 16%
Sabre Holdings Corporation ................ * * 15% * *
* Less than 10%
The agreements with these customers 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.
(8) 401(k) 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. Starting in 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’s contributions to the 401(k) Plan were
approximately $111,000 and $82,000 for the years ended December 31, 2007 and December 31, 2006, respectively.
There were no Company contributions to the 401(k) Plan for the year ended December 31, 2005.
(9) Related Party Transaction
In November 2007, the Company entered into an independent contractor agreement with Holger Bartel, a
member of the Company’s Board of Directors 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, 2007 totaled
approximately $116,000, all of which was due as of December 31, 2007 and reflected in accrued expenses in the
Consolidated Balance Sheets.
The Travelzoo Foundation (the “Foundation”), a private charitable trust, was formed in the fourth quarter of
2006 by Ralph Bartel, the Company’s Chairman, President and Chief Executive Officer. The Foundation was
funded with a cash donation from Ralph Bartel. The trustees of the Foundation currently consist of three members,
one of whom is Ralph Bartel. As of December 31, 2007, the Company was temporarily holding approximately
$468,000 of the Foundation’s cash, which is reflected in cash and cash equivalents, and the Company has recorded a
liability of approximately $468,000 to repay this amount in accrued expenses in the Consolidated Balance Sheets.
This amount was repaid to the Foundation in February 2008. For the years ended December 31, 2007 and 2006, the
Company did not make donations to the Foundation. Certain employees of the Company provide administrative
support to the Foundation at no cost to the Foundation. Such support to date has been insignificant.
53
TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)