3.	Net income per share

Basic earnings per share for the Company’s common stock is computed by dividing, net income available to common shareholders attributable to common stock for the period, and the corresponding adjustment attributable to changes in redeemable non-controlling interest, by the weighted average number of common shares outstanding during the year.

Diluted earnings per share for the Company’s common stock assume the issuance of shares as a consequence of a convertible debt securities conversion event.

The following table shows how net income is allocated using the “if converted” method for earnings per common share for the years ended December 31, 2014, 2013 and 2012:


	Year Ended December 31,
	2014						2013						2012
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Net income	$	72,652,771		$	72,652,771		$	117,526,263		$	117,526,263		$	101,346,147		$	101,346,147

Net loss attributable to noncontrolling interests		(72,220	)		(72,220	)		(18,825	)		(18,825	)		(98,849	)		(98,849	)

Change in redeemable amount of noncontrolling interest		(434,717	)		(434,717	)		9,644			9,644			359,398			359,398

Net income attributable to MercadoLibre, Inc. Shareholders corresponding to common stock	$	72,145,834		$	72,145,834		$	117,517,082		$	117,517,082		$	101,606,696		$	101,606,696

Net income per share of common stock is as follows for the years ended December 31, 2014, 2013 and 2012:


	Year Ended December 31,
	2014				2013				2012
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income attributable to MercadoLibre, Inc. Shareholders per common share	$	1.63	$	1.63	$	2.66	$	2.66	$	2.30	$	2.30


Numerator:
Net income attributable to MercadoLibre, Inc. Shareholders	$	72,145,834	$	72,145,834	$	117,517,082	$	117,517,082	$	101,606,696	$	101,606,696


Denominator:
Weighted average of common stock outstanding for Basic earnings per share		44,153,884		44,153,884		44,152,600		44,152,600		44,147,861		44,147,861
Adjustment for stock options		—		—		—		—		—		1,977

Adjusted weighted average of common stock outstanding for Diluted earnings per share		44,153,884		44,153,884		44,152,600		44,152,600		44,147,861		44,149,838

On June 30, 2014, the Company issued the 2.25% Convertible Senior Notes due 2019 (please refer to Note 17 of these consolidated financial statements for discussion regarding these debt notes). The conversion of these debt notes are considered for diluted earnings per share utilizing the “if converted” method, the effect of that conversion is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. For the year ended December 31, 2014, the effect of the Convertible Senior Notes due 2019 on diluted earnings per share was anti-dilutive and, as a consequence, it was not computed for diluted earnings per share.

The denominator for diluted net income per share for the year ended on December 31, 2014 does not include any effect from the capped call because it would be antidilutive. In the event of conversion of any or all of the Notes, the shares that would be delivered to the Company under the note hedges are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes.