After studying this chapter, you should be able to:
The 2011 annual report of Groupon presents the following additional information in its financial statements regarding a calculation of its consolidated segment operating (loss) income (CSOI).
Management of Groupon explained that CSOI is the consolidated operating (loss) income, after adjustment for acquisition-related costs and stock-based compensation expense. They explained, “We consider CSOI to be an important measure for management to evaluate the performance of our business as it excludes certain non-cash expenses. We believe it is important to view CSOI as a complement to our entire consolidated statements of operations. When evaluating our performance, you should consider CSOI as a complement to other financial performance measures, including various cash flow metrics, net loss and our other U.S. GAAP results.”
Why do companies ...