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Segment reporting
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment reporting

5. Segment reporting

Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed, the criteria used by management to evaluate the Company’s performance, the availability of separate financial information, and overall materiality considerations.

Segment reporting is based on geography as the main basis of segment breakdown to reflect the evaluation of the Company’s performance defined by the management. The Company’s segments include Brazil, Argentina, Mexico, Venezuela and other countries (such as Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Uruguay and USA).

Direct contribution consists of net revenues from external customers less direct costs. Direct costs include specific costs of net revenues, sales and marketing expenses, and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, allowances for doubtful accounts, payroll, third party fees. All corporate related costs have been excluded from the Company’s direct contribution.

Expenses over which segment managers do not currently have discretionary control, such as certain technology and general and administrative costs are monitored by management through shared cost centers and are not evaluated in the measurement of segment performance.

 

The following tables summarize the financial performance of the Company’s reporting segments:

 

     Three Months Ended March 31, 2014  
     Brazil     Argentina     Mexico     Venezuela     Other Countries     Total  

Net revenues

    $ 52,434,098      $ 27,961,744      $ 8,083,185      $ 19,356,587      $ 7,546,705      $ 115,382,319   

Direct costs

      (30,516,894 )      (16,915,878 )      (4,577,716 )      (5,634,981 )      (3,914,533 )      (61,560,002 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Direct contribution

      21,917,204        11,045,866        3,505,469        13,721,606        3,632,172        53,822,317   

Operating expenses and indirect costs of net revenues

                (19,821,230 ) 
            

 

 

  

Income from operations

                34,001,087   
            

 

 

  

Other income (expenses):

             

Interest income and other financial gains

                3,035,630   

Interest expense and other financial losses

                (1,027,180 ) 

Foreign currency gain

                3,093,471   

Other losses, net

                —     
            

 

 

  

Net income before income / asset tax expense

              $ 39,103,008   
            

 

 

  

 

     Three Months Ended March 31, 2013  
     Brazil     Argentina     Mexico     Venezuela     Other Countries     Total  

Net revenues

    $ 47,765,683      $ 25,620,747      $ 7,790,301      $ 15,130,551      $ 6,418,465      $ 102,725,747   

Direct costs

      (30,993,544 )      (13,475,710 )      (4,116,828 )      (6,008,108 )      (2,867,981 )      (57,462,171 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Direct contribution

      16,772,139        12,145,037        3,673,473        9,122,443        3,550,484        45,263,576   

Operating expenses and indirect costs of net revenues

                (16,692,392 ) 
            

 

 

  

Income from operations

                28,571,184   
            

 

 

  

Other income (expenses):

             

Interest income and other financial gains

                3,394,006   

Interest expense and other financial losses

                (360,352 ) 

Foreign currency loss

                (6,249,714 ) 

Other losses, net

                (3,733 ) 
            

 

 

  

Net income before income / asset tax expense

              $ 25,351,391   
            

 

 

  

The following table summarizes the allocation of the long-lived tangible assets based on geography:

 

     March 31,
2014		      December 31,
2013		  

US long-lived tangible assets

    $ 11,173,130       $ 9,131,777   

Other countries long-lived tangible assets

      

Argentina

      24,408,513         29,119,057   

Brazil

      6,725,644         5,559,702   

Mexico

      821,222         711,200   

Venezuela

      83,447,404         83,655,816   

Other countries

      2,889,014         3,194,357   
  

 

 

     

 

 

  
   $ 118,291,797       $ 122,240,132   
  

 

 

     

 

 

  

Total long-lived tangible assets

    $ 129,464,927       $ 131,371,909   
  

 

 

     

 

 

  

 

The following table summarizes the allocation of the goodwill and intangible assets based on geography:

 

     March 31,
2014		      December 31,
2013		  

US intangible assets

    $ 7,877       $ 10,503   

Other countries goodwill and intangible assets

      

Argentina

      12,650,884         15,575,776   

Brazil

      10,520,047         10,380,974   

Mexico

      14,497,179         14,512,949   

Venezuela

      6,906,569         6,913,604   

Other countries

      13,770,478         14,298,997   
  

 

 

     

 

 

  
   $ 58,345,157       $ 61,682,300   
  

 

 

     

 

 

  

Total goodwill and intangible assets

    $ 58,353,034       $ 61,692,803   
  

 

 

     

 

 

  

Consolidated net revenues by similar products and services for the three-month periods ended March 31, 2014 and 2013 were as follows:

 

Consolidated Net Revenues

    Three-month Period Ended March 31,  
   2014      2013  

Marketplace

    $ 83,442,528       $ 71,714,763   

Non-marketplace (*)

      31,939,791         31,010,984   
  

 

 

     

 

 

  

Total

    $ 115,382,319       $ 102,725,747   
  

 

 

     

 

 

  

 

(*) Includes, among other things, Ad Sales, Real Estate, Motors, Financing Fees, Off-platform Payment Fees and other ancillary services.