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Income taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The Company’s operations are conducted by its foreign subsidiaries in Latin America and the Caribbean. The foreign subsidiaries are incorporated under the laws of their respective countries and as such the Company is taxed in such foreign countries.
 
Statutory tax rates in the countries in which the Company operates for fiscal years 2023, 2022 and 2021 were as follows: 
 202320222021
Puerto Rico18.5%18.5%18.5%
Curaçao22.0%22.0%22.0%
USVI21.0%21.0%22.5%
Ecuador, Panama, and Uruguay25.0%25.0%25.0%
Aruba22.0%25.0%25.0%
Chile27.0%27.0%27.0%
Martinique, French Guiana and Guadeloupe25.0%25.0%22.5%
Peru29.5%29.5%29.5%
Costa Rica, Mexico and Trinidad and Tobago30.0%30.0%30.0%
Colombia35.0%35.0%31.0%
Brazil and Venezuela34.0%34.0%34.0%
Argentina35.0%35.0%35.0%
Netherlands25.8%25.8%25.0%

Income tax expense, net for fiscal years 2023, 2022 and 2021 consisted of the following:
 202320222021
Current income tax expense$100,012 $100,925 $47,999 
Deferred income tax income
(4,310)(15,449)(16,066)
Income tax expense, net
$95,702 $85,476 $31,933 

    
Income tax expense, net for fiscal years 2023, 2022 and 2021, differed from the amounts computed by applying the Company’s weighted-average statutory income tax rate to pre-tax income (loss) as a result of the following:

 202320222021
Pre-tax income
$278,117 $226,396 $77,786 
Weighted-average statutory income tax rate (i)36.1 %39.0 %41.4 %
Income tax expense at weighted-average statutory tax rate on pre-tax income
100,411 88,314 32,230 
Permanent differences:
Change in valuation allowance (ii)(254)381 (26,865)
Expiration and changes in tax loss carryforwards3,784 132 144 
Venezuela and Argentina remeasurement and inflationary impacts (iii)(16,234)(10,009)577 
Non-deductible expenses15,548 24,845 21,488 
Tax benefits and Non-taxable income(12,826)(9,740)(10,463)
Income taxes withholdings on intercompany transactions (iv)9,704 6,374 6,572 
Differences including exchange rate, inflation adjustment and filing differences(5,586)(14,485)1,493 
Alternative Taxes2,109 359 1,461 
Others (v)(954)(695)5,296 
Income tax expense, net
$95,702 $85,476 $31,933 



(i)Weighted-average statutory income tax rate is calculated based on the aggregated amount of the income before taxes by country multiplied by the prevailing statutory income tax rate, divided by the consolidated income before taxes.
(ii)Comprises net changes in valuation allowances for the year, mainly related to net operating losses (“NOLs”).
(iii)Comprises changes in valuation allowance during 2023, 2022 and 2021 for $22,825, $57,329 and $(9,723), respectively in Venezuela.
(iv)Comprises income tax withheld on the payment of interest on intercompany loans.
(v)Mainly comprises income tax effects over intercompany transactions which are eliminated for consolidation purposes.
The tax effects of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities as of December 31, 2023 and 2022 are presented below: 

 20232022
Tax loss carryforwards (i)$153,823 $149,081 
Purchase price allocation adjustment12,288 11,298 
Property and equipment, tax inflation adjustment
53,238 44,785 
Tax Inflation adjustment
(381)(2,689)
Other accrued payroll and other liabilities41,787 36,055 
Share-based compensation3,669 2,340 
Provision for contingencies, bad debts and obsolescence
23,126 17,949 
Other deferred tax assets (ii)27,508 29,157 
Other deferred tax liabilities (5,403)(5,642)
Leases (iii)29,216 20,567 
Property and equipment - difference in depreciation rates(23,200)(17,446)
Valuation allowance (iv)(218,674)(201,414)
Net deferred tax asset$96,997 $84,041 

(i)As of December 31, 2023, the Company and its subsidiaries have accumulated NOLs amounting to $524,023. The Company has NOLs amounting to $192,833, expiring between 2024 and 2028, $122,422, expiring after 2028 and, $208,768 that do not expire. Changes in tax loss carryforwards for the year relate to generation of NOLs.
(ii)Other deferred tax assets reflect the net tax effects of temporary differences between the carrying amounts of assets for financial reporting purposes (accounting base) and the amounts used for income tax purposes (tax base). As of December 31, 2023 and 2022, this item includes: provision for regular expenses for $13,070 and $8,856, respectively, in Brazil, Colombia, Mexico, Panama and Venezuela.
(iii)As of December 31, 2023 and 2022, this item includes difference in depreciation of net leases (related to differences between ASC842 and local tax regulation) in Brazil; assets of $240,299 and $210,181 and liabilities of $211,083 and $189,614, respectively.
(iv)In assessing the realization of deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized.

The total amount of $96,997 for the year ended December 31, 2023, is presented in the consolidated balance sheet as non-current asset and non-current liability amounting to $98,163 and $1,166, respectively.

The total amount of $84,041 for the year ended December 31, 2022, is presented in the consolidated balance sheet as non-current asset and non-current liability amounting to $87,972 and $3,931, respectively.


Deferred income taxes have not been recorded for temporary differences related to investments in certain foreign subsidiaries. These temporary differences, comprise undistributed earnings considered permanently invested in subsidiaries amounted to $343,520 as of December 31, 2023. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs.

As of December 31, 2023, and 2022, the Company has not identified unrecognized tax benefits that would favorably affect the effective tax rate if resolved in the Company’s favor.
The Company account for uncertain tax positions by determining the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. This determination requires the use of significant judgment in evaluating the tax positions and assessing the timing and amounts of deductible and taxable items. The Company is regularly under audit in multiple tax jurisdictions and is currently under examination in several jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities for years prior to 2017.

As of December 31, 2023, there are certain matters related to the interpretation of income tax laws which could be challenged by tax authorities in an amount of $250 million, related to assessments for the fiscal years 2009 to 2017. No formal claim has been made for fiscal years within the statute of limitation by Tax authorities in any of the mentioned matters, however those years are still subject to audit and claims may be asserted in the future.

It is reasonably possible that, as a result of audit progression within the next 12 months, there may be new information that causes the Company to reassess the tax positions because the outcome of tax audits cannot be predicted with certainty. While the Company cannot estimate the impact that new information may have on their unrecognized tax benefit balance, it believes that the liabilities recorded are appropriate and adequate as determined under ASC 740.