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Segments | 3 Months Ended
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Mar. 31, 2012
Segments [Abstract] |
Segments | 5. Segments 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 and Uruguay). 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, headcount compensation, 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, 2012 |
|  | Brazil |  |  | Argentina |  |  | Mexico |  |  | Venezuela |  |  | Other Countries |  |  | Total |
Net revenues |  | $ | 42,164,654 |  |  | $ | 18,116,469 |  |  | $ | 6,583,865 |  |  | $ | 11,241,572 |  |  | $ | 5,629,446 |  |  | $ | 83,736,006 |
Direct costs |  |  | (25,743,214 | ) |  |  | (8,122,935 | ) |  |  | (3,646,637 | ) |  |  | (4,847,335 | ) |  |  | (2,815,667 | ) |  |  | (45,175,788 | )
Direct contribution |  |  | 16,421,440 |  |  |  | 9,993,534 |  |  |  | 2,937,228 |  |  |  | 6,394,237 |  |  |  | 2,813,779 |  |  |  | 38,560,218 |
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13,629,474 | )
Income from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 24,930,744 |
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,088,560 |
Interest expense and other financial results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (77,317 | )
Foreign currency loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,032,978 | )
Other losses, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,252 | )
Net income before income / asset tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 26,904,757 |
|  | Three Months Ended March 31, 2011 |
|  | Brazil |  |  | Argentina |  |  | Mexico |  |  | Venezuela |  |  | Other Countries |  |  | Total |
Net revenues |  | $ | 34,723,195 |  |  | $ | 10,579,932 |  |  | $ | 5,234,333 |  |  | $ | 6,770,453 |  |  | $ | 4,151,755 |  |  | $ | 61,459,668 |
Direct costs |  |  | (20,075,608 | ) |  |  | (4,427,098 | ) |  |  | (2,716,359 | ) |  |  | (3,069,739 | ) |  |  | (2,100,316 | ) |  |  | (32,389,120 | )
Direct contribution |  |  | 14,647,587 |  |  |  | 6,152,834 |  |  |  | 2,517,974 |  |  |  | 3,700,714 |  |  |  | 2,051,439 |  |  |  | 29,070,548 |
Operating expenses and indirect costs of net revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (9,779,392 | )
Income from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 19,291,156 |
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income and other financial gains |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,873,768 |
Interest expense and other financial results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (628,950 | )
Foreign currency loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (500,655 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,344 |
Net income before income / asset tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 20,055,663 |
The following table summarizes the allocation of the long-lived tangible assets based on geography:
|  | March 31, |  |  | December 31, |
|  | 2012 |  |  | 2011 |
US long-lived tangible assets |  | $ | 7,158,884 |  |  | $ | 5,976,544 |
Other countries long-lived tangible assets |  |  |  |  |  |  |  |
Argentina |  |  | 14,435,776 |  |  |  | 14,316,612 |
Brazil |  |  | 2,364,730 |  |  |  | 2,528,378 |
Mexico |  |  | 430,039 |  |  |  | 409,707 |
Venezuela (*) |  |  | 7,870,266 |  |  |  | 7,192,073 |
Other countries |  |  | 857,360 |  |  |  | 454,405 |
|  | $ | 25,958,171 |  |  | $ | 24,901,175 |
Total long-lived tangible assets |  | $ | 33,117,055 |  |  | $ | 30,877,719 |
(*) | On June 2, 2011, the Company’s Venezuelan subsidiary acquired an office property of 992 square meters in a building located in Caracas, Venezuela. The purchase price of $6,626,433 million was paid in cash.
The following table summarizes the allocation of the goodwill and intangible assets based on geography:
|  | March 31, |  |  | December 31, |
|  | 2012 |  |  | 2011 |
US intangible assets |  | $ | 28,882 |  |  | $ | — |
Other countries goodwill and intangible assets |  |  |  |  |  |  |  |
Argentina |  |  | 21,835,253 |  |  |  | 22,407,558 |
Brazil |  |  | 12,035,958 |  |  |  | 11,686,315 |
Mexico |  |  | 14,908,278 |  |  |  | 13,709,353 |
Venezuela |  |  | 6,595,222 |  |  |  | 6,599,584 |
Other countries |  |  | 15,158,681 |  |  |  | 14,185,995 |
|  | $ | 70,533,392 |  |  | $ | 68,588,805 |
Total goodwill and intangible assets |  | $ | 70,562,274 |  |  | $ | 68,588,805 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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