Travelzoo 2014 Annual Report Download - page 110

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75
For the year ended December 31, 2014, the Company’s retained earnings includes a total adjustment of $347,000 related
to the reverse/forward split, which includes transaction costs. During the year ended December 31, 2014, the Company’s
transfer agent issued checks amounting to $13.4 million to pay shareholders that held a right to cash in exchange for the
fractional shares that were a result of the reverse/forward split. The Company's transfer agent intends to pay $192,000 due to
the remaining shareholders that hold a right to cash after receiving the required documentation regarding their physical stock
certificates. As of December 31, 2014, the sale proceeds of $192,000 are held by the Company’s transfer agent in anticipation
of the payment to be made to the fractionalized shareholders and are included in Funds Held for Reverse/Forward Stock Split
on the Company’s balance sheet. As of December 31, 2014, the total amount payable of $192,000 to fractionalized shareholders
as a result of the execution of the reverse/forward split is reflected as a Payable to Shareholders for Reverse/Forward Stock
Split on the Company’s balance sheet.
Note 12: Segment Reporting and Significant Customer Information
The Company manages its business geographically and has two reportable operating segments: North America and
Europe. North America consists of the Company’s operations in Canada and the U.S. Europe consists of the Company’s
operations in France, Germany, Spain, and the U.K.
Management relies on an internal management reporting process that provides revenue and segment operating income
(loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating
income (loss) are appropriate measures of evaluating the operational performance of the Company’s segments.
The following is a summary of operating results and assets (in thousands) by business segment:
Year Ended December 31, 2014 North
America Europe Elimination and
Other (a) Consolidated
Revenues from unaffiliated customers $ 95,183 $ 46,893 $ — $ 142,076
Intersegment revenues 1,350 163 (1,513) —
Total net revenues 96,533 47,056 (1,513) 142,076
Operating income $ 7,679 $ 5,788 $ 7,583 $ 21,050
Year Ended December 31, 2013 North
America Europe Elimination and
Other (a) Consolidated
Revenues from unaffiliated customers $ 111,955 $ 46,279 $ — $ 158,234
Intersegment revenues 814 452 (1,266) —
Total net revenues 112,769 46,731 (1,266) 158,234
Operating income $ 16,568 $ 7,710 $ (22,000) $ 2,278
Year Ended December 31, 2012 North
America Europe Elimination and
Other (a) Consolidated
Revenues from unaffiliated customers $ 108,787 $ 42,381 $ — $ 151,168
Intersegment revenues 728 143 (871) —
Total net revenues 109,515 42,524 (871) 151,168
Operating income $ 21,481 $ 7,008 $ (3,000) $ 25,489
(a) Amount related to unexchanged promotional shares that include a $7.6 million release of reserve, a $22.0 million charge
and a $3.0 million charge for the years ended December 31, 2014, 2013 and 2012, respectively.
As of December 31, 2014 North
America Europe Elimination Consolidated
Long-lived assets $ 7,678 $ 1,507 $ — $ 9,185
Total assets $ 73,508 $ 40,818 $ (23,838) $ 90,488