5. Segment reporting

Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed and resources are assigned, 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 in accordance with the criteria used for evaluation of the Company’s performance as determined by Management. The Company’s segments include Brazil, Argentina, Mexico and other countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Honduras, Nicaragua, El Salvador, Bolivia, Guatemala, Panama, Paraguay, Peru, Uruguay and the United States of America).

Direct contribution consists of net revenues from external customers less direct costs, which include costs of net revenues, product and technology development expenses, 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 and 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, 2019
	Brazil	Argentina	Mexico	Other Countries	Total
	(In thousands)
Net revenues	$ 302,384	$ 93,776	$ 54,561	$ 23,049	$ 473,770
Direct costs	(225,343)	(67,492)	(65,585)	(20,447)	(378,867)
Direct contribution	77,041	26,284	(11,024)	2,602	94,903

Operating expenses and indirect costs of net revenues					(84,764)
Income from operations					10,139

Other income (expenses):
Interest income and other financial gains					24,444
Interest expense and other financial losses					(15,559)
Foreign currency losses					(3,669)
Net income before income tax expense					$ 15,355



	Three Months Ended March 31, 2018
	Brazil	Argentina	Mexico	Other Countries	Total
	(In thousands)
Net revenues	$ 184,155	$ 101,939	$ 17,065	$ 17,817	$ 320,976
Direct costs	(176,980)	(57,295)	(26,323)	(17,272)	(277,870)
Direct contribution	7,175	44,644	(9,258)	545	43,106

Operating expenses and indirect costs of net revenues					(72,525)
Loss from operations					(29,419)

Other income (expenses):
Interest income and other financial gains					9,195
Interest expense and other financial losses					(10,734)
Foreign currency gains					5,601
Net loss before income tax gains					$ (25,357)

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


	March 31,	December 31,
	2019	2018
	(In thousands)
US property and equipment, net	$ 2,313	$ 2,959
Other countries
Argentina	74,070	58,358
Brazil	83,717	78,227
Mexico	19,372	16,497
Other countries	9,484	9,573
	$ 186,643	$ 162,655
Total property and equipment, net	$ 188,956	$ 165,614

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


	March 31,	December 31,
	2019	2018
	(In thousands)
US intangible assets	$ 33	$ 46
Other countries goodwill and intangible assets
Argentina	8,607	9,050
Brazil	31,746	32,955
Mexico	36,222	35,993
Chile	25,678	24,638
Other countries	5,224	4,782
	$ 107,477	$ 107,418
Total goodwill and intangible assets	$ 107,510	$ 107,464

Consolidated net revenues by similar products and services for the three-month periods ended March 31, 2019 and 2018 were as follows:


	Three months Ended March 31,

Consolidated Net Revenues	2019	2018
	(In thousands)
Enhanced Marketplace (*)	$ 253,035	$ 140,695
Non-marketplace () (*)	220,735	180,281
Total	$ 473,770	$ 320,976

(*) Includes Final Value Fees and Shipping fees.

(**) Includes, among other things, Ad Sales, Classified Fees, Payment Fees and other ancillary services.

(***) Includes $186,965 thousands and $144,763 thousands of Payment Fees for the three-month periods ended March 31, 2019 and 2018, respectively.