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Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of statutory tax rates by country

Statutory tax rates in the countries in which the Company operates for fiscal years 2023, 2022 and 2021 were as follows: 

						2023						2022						2021
Puerto Rico						18.5%						18.5%						18.5%
Curaçao						22.0%						22.0%						22.0%
USVI						21.0%						21.0%						22.5%
Ecuador, Panama, and Uruguay						25.0%						25.0%						25.0%
Aruba						22.0%						25.0%						25.0%
Chile						27.0%						27.0%						27.0%
Martinique, French Guiana and Guadeloupe						25.0%						25.0%						22.5%
Peru						29.5%						29.5%						29.5%
Costa Rica, Mexico and Trinidad and Tobago						30.0%						30.0%						30.0%
Colombia						35.0%						35.0%						31.0%
Brazil and Venezuela						34.0%						34.0%						34.0%
Argentina						35.0%						35.0%						35.0%
Netherlands						25.8%						25.8%						25.0%

Schedule of components of income tax expense

Income tax expense, net for fiscal years 2023, 2022 and 2021 consisted of the following:

						2023						2022						2021
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

Schedule of components of income tax expense by applying weighted-average statutory income tax rate

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:

						2023						2022						2021
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 carryforwards						3,784						132						144
Venezuela and Argentina remeasurement and inflationary impacts (iii)						(16,234)						(10,009)						577
Non-deductible expenses						15,548						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 Taxes						2,109						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.

Schedule of deferred tax assets and liabilities

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: 

						2023						2022
Tax loss carryforwards (i)						$	153,823					$	149,081
Purchase price allocation adjustment						12,288						11,298
Property and equipment, tax inflation adjustment						53,238						44,785
Tax Inflation adjustment						(381)						(2,689)
Other accrued payroll and other liabilities						41,787						36,055
Share-based compensation						3,669						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.

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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 components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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