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Income taxes (Tables)

12 Months Ended

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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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

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