424B5
BAIDU, INC. filed this Form 424B5 on 06/26/2017
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Table of Contents

BAIDU, INC.

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

The Company did not include certain stock options and restricted shares in the computation of diluted earnings per share for the three-month periods ended March 31, 2016 and 2017 because those stock options and restricted shares were anti-dilutive for earnings per share for the respective periods.

 

15. SEGMENT REPORTING

The operations of the Company are organized into three segments, consisting of Search Services, Transaction Services, and iQiyi. Search Services are keyword-based marketing services targeted at and triggered by internet user’s search queries, which mainly include P4P services and other online marketing services. Transaction Services include Baidu Nuomi, Baidu Deliveries, Baidu Mobile Game, Baidu Wallet, Baidu Map and others. iQiyi represents the online video business.

The Company derives the results of the segments directly from its internal management reporting system. The CODM measures the performance of each segment based on metrics of revenue and earnings from operations and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. The Company does not allocate any share-based compensation expenses to its segments as the CODM does not use this information to measure the performance of the operating segments. Because substantially all of the Group’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented.

The table below provides a summary of the Group’s operating segment results for the three-month periods ended March 31, 2016 and 2017.

 

     For the three months ended  
     March 31,
2016
     March 31,
2017
     March 31,
2017
 
     RMB      RMB      US$  
     (In thousands)  
     (unaudited)  

Search Services

        

Revenues

     13,246,699        12,420,545        1,804,472  

Operating profit

     6,755,159        5,438,212        790,071  

Transaction Services

        

Revenues

     900,062        1,362,006        197,874  

Operating loss

     (3,368,760      (1,752,389      (254,589

iQiyi

        

Revenues

     1,925,405        3,316,571        481,836  

Operating loss

     (918,577      (926,682      (134,630

Inter-segment elimination

        

Revenues

     (251,594      (208,337      (30,267

Operating profit (loss)

     51,977        (122,684      (17,824

Segment operating profit

     2,519,799        2,636,457        383,028  

Unallocated operating expenses

     (309,062      (630,811      (91,645
  

 

 

    

 

 

    

 

 

 

Group consolidated operating profit

     2,210,737        2,005,646        291,383  
  

 

 

    

 

 

    

 

 

 

 

F-33