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Segment Reporting
 3 Months Ended
Mar. 31, 2016
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, Bolivia, Guatemala, Paraguay, Peru, Portugal, Uruguay and USA).

Direct contribution consists of net revenues from external customers less direct costs and any impairment of long lived assets. 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 Period March 31, 2016



 

Brazil

 

Argentina

 

Mexico

 

Venezuela

 

Other Countries

 

Total



 

(In thousands)

Net revenues

 

$               77,535 

 

$               48,201 

 

$             11,116 

 

$             12,105 

 

$               8,673 

 

$               157,630 

Direct costs

 

 (50,287)

 

 (27,757)

 

 (9,438)

 

 (5,134)

 

 (6,201)

 

 (98,817)

Direct contribution

 

 27,248 

 

 20,444 

 

 1,678 

 

 6,971 

 

 2,472 

 

 58,813 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

 

 (28,324)

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 30,489 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

 

 7,251 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

 

 (5,684)

Foreign currency gain

 

 

 

 

 

 

 

 

 

 

 

 5,147 

Net income before income / asset tax expense

 

 

 

 

 

 

 

 

 

 

 

$                 37,203 













 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months period ended March 31, 2015



 

Brazil

 

Argentina

 

Mexico

 

Venezuela

 

Other Countries

 

Total



 

(In thousands)

Net revenues

 

$               68,498 

 

$               47,431 

 

$              9,437 

 

$            13,955 

 

$              8,782 

 

$               148,103 

Direct costs

 

 (39,681)

 

 (24,785)

 

 (5,969)

 

 (4,204)

 

 (5,172)

 

 (79,811)

Impairment of Long-lived Assets

 

-

 

-

 

-

 

 (16,226)

 

-

 

 (16,226)

Direct contribution

 

 28,817 

 

 22,646 

 

 3,468 

 

 (6,475)

 

 3,610 

 

 52,066 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and indirect costs of net revenues

 

 

 

 

 

 

 

 

 

 

 

 (26,478)

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 25,588 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other financial gains

 

 

 

 

 

 

 

 

 

 

 

 4,308 

Interest expense and other financial losses

 

 

 

 

 

 

 

 

 

 

 

 (4,950)

Foreign currency gain

 

 

 

 

 

 

 

 

 

 

 

 (8,570)

Net income before income / asset tax expense

 

 

 

 

 

 

 

 

 

 

 

$                 16,376 

 





The following table summarizes the allocation of property and equipment, net based on geography:





 

 

 

 



 

March 31,

 

December 31,



 

2016

 

2015



 

(In thousands)

US property and equipment, net

 

$            11,862

 

$            12,756

Other countries

 

 

 

 

Argentina

 

 22,945 

 

 22,379 

Brazil

 

 23,445 

 

 17,150 

Mexico

 

 2,707 

 

 2,475 

Venezuela

 

 21,483 

 

 21,556 

Other countries

 

 7,490 

 

 5,317 



 

$            78,070

 

$            68,877

Total property and equipment, net

 

$            89,932

 

$            81,633

 





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

 



 

 

 

 



 

March 31,

 

December 31,



 

2016

 

2015



 

(In thousands)

US intangible assets

 

$                203

 

$                235

Other countries goodwill and intangible assets

 

 

 

 

Argentina

 

 8,542 

 

 8,763 

Brazil

 

 24,571 

 

 21,338 

Mexico

 

 46,419 

 

 46,186 

Venezuela

 

 7,434 

 

 7,217 

Other countries

 

 33,266 

 

 31,797 



 

$         120,232

 

$         115,301

Total goodwill and intangible assets

 

$         120,435

 

$         115,536





 





Consolidated net revenues by similar products and services for the three-month periods ended March 31, 2016 and 2015 were as follows:

 











 

 

 

 

 



 

Three-months Ended March 31,

 



 

 

 

 

 

Consolidated Net Revenues

 

2016

 

2015

 



 

(In thousands)

Marketplace

 

$            94,098

 

$            94,762

 

Non-marketplace (*)

 

$            63,532

 

$            53,341

 

Total

 

$          157,630

 

$          148,103

 







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