含羞草传媒

(17) Information 含羞草传媒 含羞草传媒's Operating Segments

含羞草传媒, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and on-line commerce industries. 含羞草传媒 identifies its reportable segments as (A)听those consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B)听those equity method affiliates whose share of earnings represent 10% or more of 含羞草传媒's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.

含羞草传媒 evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, 含羞草传媒 reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.

For segment reporting purposes, 含羞草传媒 defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding all stock-based compensation and transaction related costs). 含羞草传媒 believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business鈥� performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, certain purchase accounting adjustments, separately reported litigation settlements, transaction related costs (including restructuring, integration, and advisory fees), and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. 含羞草传媒 generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

During the first quarter of 2019 the Company changed its reportable segments to combine HSN and QVC U.S. into one reportable segment called 鈥淨xH,鈥� and presented prior period information to conform with this change. 听As a result of the QRG Initiatives and additional integration activities to drive synergies between HSN and QVC U.S., the chief operating decision maker began reviewing HSN and QVC U.S. information as one business unit during the first quarter of 2019.听

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For the year ended December听31, 2019, 含羞草传媒 has identified the following consolidated subsidiaries as its reportable segments:

含羞草传媒's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. 听The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company's summary of significant accounting policies.

Performance Measures

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Other Information

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The following table provides a reconciliation of consolidated segment Adjusted OIBDA to operating income and earnings (loss) from continuing operations before income taxes:

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Revenue by Geographic Area

Revenue by geographic area based on the location of customers is as follows:

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Long-lived Assets by Geographic Area

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