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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Components of Pretax Income | The components of pretax income in consolidated companies for the years ended December 31, 2014, 2013 and 2012 are as follows:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
United States |  | $ | (10,848,050 | ) |  | $ | (1,641,203 | ) |  | $ | (753,531 | )
Brazil |  |  | 91,136,394 |  |  |  | 61,573,972 |  |  |  | 52,460,902 |
Argentina |  |  | 53,065,458 |  |  |  | 46,438,235 |  |  |  | 40,466,354 |
Venezuela |  |  | (31,360,284 | ) |  |  | 36,855,421 |  |  |  | 29,620,800 |
Mexico |  |  | 6,094,361 |  |  |  | 9,490,012 |  |  |  | 7,320,041 |
Other Countries |  |  | 13,707,942 |  |  |  | 10,393,007 |  |  |  | 11,102,960 |
|  | $ | 121,795,821 |  |  | $ | 163,109,444 |  |  | $ | 140,217,526 |
Summary of Income / Asset Tax Expense | Income / asset tax is composed of the following:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,120 |  |  | $ | — |  |  | $ | — |
Foreign |  |  | 66,786,496 |  |  |  | 49,488,472 |  |  | $ | 39,371,170 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 465,277 |  |  |  | 799,166 |  |  |  | 998,536 |
Foreign |  |  | (18,110,844 | ) |  |  | (4,913,379 | ) |  |  | (1,586,024 | )
|  |  | (17,645,567 | ) |  |  | (4,114,213 | ) |  |  | (587,488 | )
Income Tax: |  |  | 49,143,050 |  |  |  | 45,374,259 |  |  |  | 38,783,682 |
Foreign asset tax |  |  | — |  |  |  | 208,922 |  |  |  | 87,697 |
Income / asset tax expense |  | $ | 49,143,050 |  |  | $ | 45,583,181 |  |  | $ | 38,871,379 |
Reconciliation of Difference Between Actual Provision for Income Taxes and Provision Computed by Applying Income Tax Rate | The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the blended income tax rate for 2014, 2013 and 2012 to income before taxes:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Net income before income tax |  | $ | 121,795,821 |  |  | $ | 163,109,444 |  |  | $ | 140,217,526 |
Weighted average income tax rate |  |  | 33 | % |  |  | 34 | % |  |  | 33 | %
Income tax expense at blended tax rate |  | $ | 40,783,129 |  |  | $ | 55,241,195 |  |  | $ | 46,593,938 |
Permanent differences: |  |  |  |  |  |  |  |  |  |  |  |
Federal and assets taxes |  |  | 3,527 |  |  |  | — |  |  |  | — |
Transfer Pricing |  |  | 616,101 |  |  |  | — |  |  |  | — |
Non-deductible tax |  |  | 258,153 |  |  |  | — |  |  |  | — |
Non-deductible expenses |  |  | 2,310,535 |  |  |  | 1,777,180 |  |  |  | 1,657,662 |
Dividend distributions |  |  | 4,221,176 |  |  |  | 1,414,915 |  |  |  | 847,798 |
Impairment of Venezuelan long-lived assets |  |  | 14,734,001 |  |  |  | — |  |  |  | — |
Non-taxable income (*) |  |  | (9,564,540 | ) |  |  | (12,321,790 | ) |  |  | (9,852,468 | )
Currency translation |  |  | (5,217,696 | ) |  |  | (1,552,169 | ) |  |  | (1,213,340 | )
Change in valuation allowance |  |  | 1,094,214 |  |  |  | 736,910 |  |  |  | 572,790 |
Business Combination |  |  | (40,469 | ) |  |  | 34,706 |  |  |  | — |
True up |  |  | (55,081 | ) |  |  | 43,312 |  |  |  | 177,302 |
Income tax expense |  | $ | 49,143,050 |  |  | $ | 45,374,259 |  |  | $ | 38,783,682 |
(*) | Includes Argentine Tax holiday described in Note 2 “Income and asset tax”
Composition of Deferred Tax Assets and Liabilities | The following table summarizes the composition of deferred tax assets and liabilities for the years ended December 31, 2014 and 2013:
|  | December 31, 2014 |  |  | December 31, 2013 |
Deferred tax assets |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 8,278,013 |  |  | $ | 8,210,283 |
Unrealized net losses on investments |  |  | 42,783 |  |  |  | — |
Property and equipment |  |  | 2,636,124 |  |  |  | 147,263 |
Accounts payable and accrued expenses |  |  | 953,842 |  |  |  | 2,014,026 |
Payroll and social security payable |  |  | 5,407,562 |  |  |  | 3,960,481 |
Foreign exchange effect |  |  | 7,526,669 |  |  |  | 22,714 |
Customer lists |  |  | — |  |  |  | 47,929 |
Taxes payable |  |  | 354,272 |  |  |  | 1,058,659 |
Goodwill |  |  | 519,432 |  |  |  | — |
Provisions |  |  | 4,946,080 |  |  |  | 3,553,360 |
Foreign tax credit |  |  | 4,327,796 |  |  |  | 668,659 |
Tax loss carryforwards |  |  | 2,611,877 |  |  |  | 2,451,524 |
Total deferred tax assets |  |  | 37,604,450 |  |  |  | 22,134,898 |
Valuation allowance |  |  | (4,531,232 | ) |  |  | (3,089,113 | )
Total deferred tax assets, net |  |  | 33,073,218 |  |  |  | 19,045,785 |
|  | December 31, 2014 |  |  | December 31, 2013 |
Total deferred tax assets, net |  |  | 33,073,218 |  |  |  | 19,045,785 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Unrealized net gains on investments |  |  | — |  |  |  | (10,767 | )
Property and equipment |  |  | (3,233,145 | ) |  |  | (2,883,458 | )
Customer lists |  |  | (2,618,827 | ) |  |  | (45,963 | )
Non compete agreement |  |  | (265,670 | ) |  |  | (26,019 | )
Outside basis dividends |  |  | (4,327,796 | ) |  |  | (668,659 | )
Trademarks |  |  | (1,577,422 | ) |  |  | (1,693,256 | )
Convertible notes and Capped Call |  |  | (8,367,701 | ) |  |  | — |
Other liabilities |  |  | — |  |  |  | (11,237 | )
Total deferred tax liabilities |  |  | (20,390,561 | ) |  |  | (5,339,359 | )
Net deferred tax assets |  | $ | 12,682,657 |  |  | $ | 13,706,426 |
Tax Loss Carryforwards | As of December 31, 2014, consolidated loss carryforwards for income tax purposes were $8,755,535. If not utilized, tax loss carryforwards will begin to expire as follows:
2016 |  | $ | 36,411 |
2017 |  |  | 4,794 |
2018 |  |  | 39,327 |
Thereafter |  |  | 5,753,888 |
Without due dates |  |  | 2,921,115 |
Total |  | $ | 8,755,535 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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