Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'MERCADOLIBRE INC | ' | ' |
Entity Central Index Key | '0001099590 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 44,153,892 | ' |
Entity Public Float | ' | ' | $3,470,000,342 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $140,285,104 | $101,489,002 |
Short-term investments | 76,593,214 | 93,694,805 |
Accounts receivable, net | 25,884,260 | 19,837,022 |
Credit cards receivables, net | 52,045,851 | 35,816,506 |
Prepaid expenses | 3,836,081 | 2,080,079 |
Deferred tax assets | 16,030,880 | 11,040,543 |
Other assets | 11,488,845 | 11,403,218 |
Total current assets | 326,164,235 | 275,361,175 |
Non-current assets: | ' | ' |
Long-term investments | 45,719,737 | 85,955,584 |
Property and equipment, net | 131,371,909 | 37,726,222 |
Goodwill | 55,101,218 | 60,366,063 |
Intangible assets, net | 6,591,585 | 7,279,865 |
Deferred tax assets | 3,014,905 | 5,862,247 |
Other assets | 24,399,184 | 6,118,120 |
Total non-current assets | 266,198,538 | 203,308,101 |
Total assets | 592,362,773 | 478,669,276 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 34,405,333 | 23,976,613 |
Funds payable to customers | 129,038,663 | 101,472,662 |
Salaries and social security payable | 23,182,811 | 19,974,463 |
Taxes payable | 17,854,110 | 19,210,568 |
Loans payable and other financial liabilities | 13,370,823 | 84,570 |
Dividends payable | 6,313,869 | 4,812,396 |
Total current liabilities | 224,165,609 | 169,531,272 |
Non-current liabilities: | ' | ' |
Salaries and social security payable | 9,185,269 | 3,452,445 |
Loans payable and other financial liabilities | 2,489,819 | 59,493 |
Deferred tax liabilities | 5,339,359 | 8,975,290 |
Other liabilities | 3,699,109 | 2,837,150 |
Total non-current liabilities | 20,713,556 | 15,324,378 |
Total liabilities | 244,879,165 | 184,855,650 |
Commitments and contingencies (Note 15) | ' | ' |
Redeemable noncontrolling interest | 4,000,000 | 4,000,000 |
Equity: | ' | ' |
Common stock, $0.001 par value, 110,000,000 shares authorized, 44,153,473 and 44,150,920 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 44,153 | 44,151 |
Additional paid-in capital | 121,562,193 | 120,468,759 |
Treasury stock | -1,012,216 | ' |
Retained earnings | 310,345,448 | 218,083,844 |
Accumulated other comprehensive loss | -87,455,970 | -48,783,128 |
Total Equity | 343,483,608 | 289,813,626 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $592,362,773 | $478,669,276 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Financial Position [Abstract] | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 |
Common stock, shares issued | 44,153,473 | 44,150,920 | ' |
Common stock, shares outstanding | 44,153,473 | 44,150,920 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Statement [Abstract] | ' | ' | ' |
Net revenues | $472,594,709 | $373,601,494 | $298,931,625 |
Cost of net revenues | -130,076,879 | -98,085,644 | -72,055,835 |
Gross profit | 342,517,830 | 275,515,850 | 226,875,790 |
Operating expenses: | ' | ' | ' |
Product and technology development | -40,888,139 | -28,626,880 | -23,349,787 |
Sales and marketing | -90,484,296 | -72,002,954 | -64,968,755 |
General and administrative | -57,606,340 | -45,228,145 | -38,785,083 |
Total operating expenses | -188,978,775 | -145,857,979 | -127,103,625 |
Income from operations | 153,539,055 | 129,657,871 | 99,772,165 |
Other income (expenses): | ' | ' | ' |
Interest income and other financial gains | 10,668,593 | 11,877,375 | 9,905,829 |
Interest expense and other financial losses | -2,355,929 | -1,138,379 | -3,648,733 |
Foreign currency gains | 1,258,476 | 11,597 | 2,353,005 |
Other (losses) gains, net | -751 | -190,938 | 73,894 |
Net income before income / asset tax expense | 163,109,444 | 140,217,526 | 108,456,160 |
Income / asset tax expense | -45,583,181 | -38,871,379 | -31,659,821 |
Net income | 117,526,263 | 101,346,147 | 76,796,339 |
Less: Net Income attributable to Redeemable Noncontrolling Interest | 18,825 | 98,849 | 16,286 |
Net income attributable to MercadoLibre, Inc. shareholders | $117,507,438 | $101,247,298 | $76,780,053 |
Basic EPS | ' | ' | ' |
Basic net income attributable to MercadoLibre, Inc. Shareholders per common share | $2.66 | $2.30 | $1.73 |
Weighted average of outstanding common shares | 44,152,600 | 44,147,861 | 44,138,397 |
Diluted EPS | ' | ' | ' |
Diluted net income attributable to MercadoLibre, Inc. Shareholders per common share | $2.66 | $2.30 | $1.73 |
Weighted average of outstanding common shares | 44,152,600 | 44,149,838 | 44,151,437 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $117,526,263 | $101,346,147 | $76,796,339 |
Other comprehensive (loss) income, net of income tax: | ' | ' | ' |
Currency translation adjustment | -37,971,615 | -11,319,211 | -15,797,597 |
Unrealized net gains on available for sale investments | 25,467 | 759,564 | 924,657 |
Less: reclassification adjustment for gains on available for sale investments included in net income | -759,564 | -924,657 | -45,527 |
Net change in accumulated other comprehensive loss, net of income tax | -38,705,712 | -11,484,304 | -14,918,467 |
Total Comprehensive Income | 78,820,551 | 89,861,843 | 61,877,872 |
Less: Comprehensive (loss) income attributable to Redeemable Noncontrolling Interest | -14,045 | 354,327 | -257,874 |
Comprehensive Income attributable to MercadoLibre, Inc. Shareholders | $78,834,596 | $89,507,516 | $62,135,746 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2010 | $171,718,270 | $44,131 | $120,391,622 | ' | $73,681,556 | ($22,399,039) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 44,131,376 | ' | ' | ' | ' |
Stock options exercised | 11,175 | 6 | 11,169 | ' | ' | ' |
Stock options exercised (in shares) | ' | 5,950 | ' | ' | ' | ' |
Stock-based compensation | 49,246 | ' | 49,246 | ' | ' | ' |
Dividend distribution | -14,124,568 | ' | ' | ' | -14,124,568 | ' |
LTRP shares issued | ' | 5 | -5 | ' | ' | ' |
LTRP shares issued (in shares) | ' | 4,694 | ' | ' | ' | ' |
Change in redeemable amount of noncontrolling interest | -610,853 | ' | ' | ' | -610,853 | ' |
Net income | 76,780,053 | ' | ' | ' | 76,780,053 | ' |
Other comprehensive loss | -14,644,307 | ' | ' | ' | ' | -14,644,307 |
Ending Balance at Dec. 31, 2011 | 219,179,016 | 44,142 | 120,452,032 | ' | 135,726,188 | -37,043,346 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 44,142,020 | ' | ' | ' | ' |
Stock options exercised | 5,700 | 4 | 5,696 | ' | ' | ' |
Stock options exercised (in shares) | 3,800 | 3,800 | ' | ' | ' | ' |
Stock-based compensation | 11,036 | ' | 11,036 | ' | ' | ' |
Dividend distribution | -19,249,040 | ' | ' | ' | -19,249,040 | ' |
LTRP shares issued | ' | 5 | -5 | ' | ' | ' |
LTRP shares issued (in shares) | ' | 5,100 | ' | ' | ' | ' |
Change in redeemable amount of noncontrolling interest | 359,398 | ' | ' | ' | 359,398 | ' |
Net income | 101,247,298 | ' | ' | ' | 101,247,298 | ' |
Other comprehensive loss | -11,739,782 | ' | ' | ' | ' | -11,739,782 |
Ending Balance at Dec. 31, 2012 | 289,813,626 | 44,151 | 120,468,759 | ' | 218,083,844 | -48,783,128 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 44,150,920 | ' | ' | ' | ' |
Stock options exercised | 3,020 | 2 | 3,018 | ' | ' | ' |
Stock options exercised (in shares) | 2,013 | 2,013 | ' | ' | ' | ' |
Stock-based compensation | 58,492 | ' | 58,492 | ' | ' | ' |
Stock-based compensation (in shares) | ' | 540 | ' | ' | ' | ' |
Dividend distribution | -25,255,478 | ' | ' | ' | -25,255,478 | ' |
LTRP shares issued | 1,031,933 | 9 | 1,031,924 | ' | ' | ' |
LTRP shares issued (in shares) | ' | 9,003 | ' | ' | ' | ' |
Common Stock repurchased | -1,012,225 | -9 | ' | -1,012,216 | ' | ' |
Common Stock repurchased (in shares) | ' | -9,003 | ' | ' | ' | ' |
Change in redeemable amount of noncontrolling interest | 9,644 | ' | ' | ' | 9,644 | ' |
Net income | 117,507,438 | ' | ' | ' | 117,507,438 | ' |
Other comprehensive loss | -38,672,842 | ' | ' | ' | ' | -38,672,842 |
Ending Balance at Dec. 31, 2013 | $343,483,608 | $44,153 | $121,562,193 | ($1,012,216) | $310,345,448 | ($87,455,970) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 44,153,473 | ' | ' | ' | ' |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Cash flows from operations: | ' | ' | ' | ||
Net income attributable to MercadoLibre, Inc. Shareholders | $117,507,438 | $101,247,298 | $76,780,053 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ||
Net income attributable to Redeemable Noncontrolling Interest | 18,825 | 98,849 | 16,286 | ||
Net Devaluation Loss in Venezuela | 6,420,929 | ' | ' | ||
Depreciation and amortization | 11,878,565 | 8,959,293 | 7,268,075 | ||
Accrued interest | -9,882,991 | -7,630,203 | -7,354,746 | ||
LTRP accrued compensation | 11,645,077 | 4,442,822 | 4,079,265 | ||
Deferred income taxes | -7,847,513 | -492,362 | 1,022,797 | ||
Changes in assets and liabilities: | ' | ' | ' | ||
Accounts receivable | -22,764,177 | -8,651,951 | -9,274,653 | ||
Credit Card Receivables | -27,315,403 | -15,570,142 | -19,494,707 | ||
Prepaid expenses | -2,074,543 | -898,959 | -436,310 | ||
Other assets | -23,127,493 | -5,809,218 | -6,532,978 | ||
Accounts payable and accrued expenses | 26,037,488 | 18,061,683 | 10,808,788 | ||
Funds payable to customers | 47,557,504 | 39,889,201 | 27,875,755 | ||
Other liabilities | 2,986,452 | 1,153,610 | 490,838 | ||
Interest received from investments | 11,473,203 | 5,091,468 | 4,177,168 | ||
Net cash provided by operating activities | 142,513,361 | 139,891,389 | 89,425,631 | ||
Cash flows from investing activities: | ' | ' | ' | ||
Purchase of investments | -1,135,940,553 | -539,355,434 | -379,044,395 | ||
Proceeds from sale and maturity of investments | 1,174,789,615 | 472,871,652 | 336,835,026 | ||
Payment for acquired businesses, net of cash acquired | -3,423,439 | [1] | ' | -5,468,180 | [2] |
Purchases of intangible assets | -458,804 | -1,390,654 | -280,706 | ||
Purchases of property and equipment | -113,755,566 | -16,747,746 | -18,924,161 | ||
Net cash used in investing activities | -78,788,747 | -84,622,182 | -66,882,416 | ||
Cash flows from financing activities: | ' | ' | ' | ||
Proceeds from loans payable and other financial liabilities | 31,453,613 | ' | ' | ||
Payments on loans payable and other financial liabilities | -15,936,551 | ' | ' | ||
Dividends paid | -23,754,005 | -17,968,004 | -10,593,206 | ||
Common Stock repurchased | -1,012,225 | ' | ' | ||
Stock options exercised | 3,020 | 5,700 | 11,175 | ||
Net cash used in financing activities | -9,246,148 | -17,962,304 | -10,582,031 | ||
Effect of exchange rate changes on cash and cash equivalents | -15,682,364 | -3,199,578 | -1,409,973 | ||
Net increase in cash and cash equivalents | 38,796,102 | 34,107,325 | 10,551,211 | ||
Cash and cash equivalents, beginning of the year | 101,489,002 | 67,381,677 | 56,830,466 | ||
Cash and cash equivalents, end of the year | 140,285,104 | 101,489,002 | 67,381,677 | ||
Supplemental cash flow information: | ' | ' | ' | ||
Cash paid for interest | 657,776 | 68,916 | 58,559 | ||
Cash paid for income and asset taxes | 55,995,590 | 38,837,721 | 31,050,206 | ||
Stock based compensation | 58,492 | ' | ' | ||
LTRP shares issued | 1,031,933 | ' | ' | ||
Acquisition of business | ' | ' | ' | ||
Cash and cash equivalents | 31,058 | [1] | ' | 3,876 | [2] |
Accounts receivable | 537,706 | [1] | ' | ' | |
Tax credits | ' | ' | 49,951 | [2] | |
Other current assets | 14,674 | [1] | ' | ' | |
Non current assets | 94,367 | [1] | ' | 99,522 | [2] |
Fixed Assets | 5,800 | [1] | ' | ' | |
Total assets acquired | 683,605 | [1] | ' | 153,349 | [2] |
Accounts payable and accrued expenses | 143,071 | [1] | ' | ' | |
Taxes payable | 179,545 | [1] | ' | ' | |
Payroll and social security payable | 123,098 | [1] | ' | ' | |
Total liabilities assumed | 445,714 | [1] | ' | ' | |
Net assets acquired | 237,891 | [1] | ' | 153,349 | [2] |
Goodwill, Identifiable Intangible Assets and deferred tax liabilities | 2,668,661 | [1] | ' | 8,966,744 | [2] |
Escrow for employment relationship | 547,945 | [1] | ' | ' | |
Non-controlling interest | ' | ' | -3,648,037 | [2] | |
Total purchase price | 3,454,497 | [1] | ' | 5,472,056 | [2] |
Cash and cash equivalents acquired | 31,058 | [1] | ' | 3,876 | [2] |
Payment for acquired businesses, net of cash acquired | $3,423,439 | [1] | ' | $5,468,180 | [2] |
[1] | Related to the acquisition of software development company - Neosur - See Note 6 | ||||
[2] | Related to the acquisition of Autoplaza.com - See Note 6 |
Nature_of_Business
Nature of Business | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Nature of Business | ' | |
1 | Nature of Business | |
MercadoLibre, Inc. (“MercadoLibre” or the “Company”) was incorporated in Delaware in October 1999. MercadoLibre is a Latin American e-commerce and payments-platform. MercadoLibre is an e-commerce enabler whose mission is to build the necessary online and technology tools to allow practically anyone to trade almost anything in Latin America. MercadoLibre enables commerce through its marketplace platform (including online classifieds for motor vehicles, vessels, aircraft, services and real estate), a Latin American online marketplace, which allows users to buy and sell in most of the Latin America country’s; through MercadoPago, which enables individuals and businesses to send and receive online payments; through MercadoClics, which facilitates the advertising service to large retailers and brands to promote their product and services on the web; and through MercadoShops which facilitates users to set-up, manage promote their own on-line web-stores. Additionally, during 2013 the Company launched the MercadoEnvios service, to facilitate the shipping of goods from sellers to buyers. | ||
As of December 31, 2013, the Company, through its wholly-owned subsidiaries, operated online commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal, Uruguay and Venezuela, and online payments solutions directed towards Argentina, Brazil, Mexico, Venezuela, Chile and Colombia. In addition, the Company operates a real estate classified platform that covers some areas of State of Florida, U.S.A. | ||
MercadoPago is currently available to users in each of Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
2 | Summary of significant accounting policies | ||||||||||||
Principles of consolidation | |||||||||||||
The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries. Ownership interests of minority interests are recorded as noncontrolling interest. These consolidated financial statements are stated in U.S. dollars. Intercompany transactions and balances have been eliminated for consolidation purposes. | |||||||||||||
Substantially all net revenues, cost of net revenues and operating expenses, are generated in the Company’s foreign operations, amounting to approximately 99.6%, 99.5% and 99.7% of the consolidated amounts during 2013, 2012 and 2011, respectively. Long-lived assets and Goodwill located in the foreign operations totaled $183,922,432 and $98,569,068 as of December 31, 2013 and 2012, respectively. | |||||||||||||
Cash and cash equivalents, short-term and long-term investments, amounted to $262,598,055 and $281,139,391 as of December 31, 2013 and 2012, respectively. As of December 31, 2013 those assets are located 39% in the United States of America and 61% in foreign locations, mainly in Brazil, Argentina and Venezuela. As of December 31, 2012 those assets are located 36% in the United States of America and 64% in foreign locations, mainly in Brazil, Argentina and Venezuela. | |||||||||||||
Use of estimates | |||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to accounting for allowance for doubtful accounts and chargeback provisions, depreciation, amortization, recoverability of goodwill and intangible assets with indefinite useful lives, useful lives of long-lived assets, impairment of short-term and long-term investments, compensation costs relating to the Company’s long term retention plan, recognition of income taxes and contingencies. Actual results could differ from those estimates. | |||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased, consisting primarily of money market funds and certificates of deposit, to be cash equivalents. | |||||||||||||
Investments | |||||||||||||
Time deposits are valued at amortized cost plus accrued interest. Debt securities classified as available-for-sale are recorded at fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive income (loss), net of the related tax provisions or benefits. | |||||||||||||
Investments are classified as current or non-current depending on their maturity dates and when it is expected to be converted into cash. | |||||||||||||
The Company assesses whether an other-than-temporary impairment loss on its investments has occurred due to declines in fair value or other market conditions. With respect to debt securities, this assessment takes into account the intent to sell the security, whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and if the Company does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists). The Company did not recognize any other-than-temporary impairment on our investments in 2013, 2012, or 2011. | |||||||||||||
Fair value measurements | |||||||||||||
Cash, money market funds, corporate and sovereign debt securities and asset backed securities are valued at fair value. Deposits in bank accounts, accounts receivables, credit cards receivables, prepaid expenses, other assets, accounts payables, funds payable to customers, payroll and social security payables, taxes payables, loans and provisions and other liabilities, are valued at cost plus accrued interest (when applicable) which approximates their fair value because of its short-term maturity. See Note 8 “Fair Value Measurement of Assets and Liabilities” for further details. | |||||||||||||
Concentration of credit risk | |||||||||||||
Cash and cash equivalents, short-term and long-term investments, credit card receivables and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents and investments are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located internationally. Accounts receivable balances are settled through customer credit cards, debit cards, and MercadoPago accounts, with the majority of accounts receivable collected upon processing of credit card transactions. The Company maintains an allowance for doubtful accounts and credit cards receivables based upon its historical experience and current aging of customers. Historically, such charges have been within management expectations. However, unexpected or significant future changes in trends could result in a material impact to future statements of income or cash flows. Due to the relatively small dollar amount of individual accounts receivable, the Company generally does not require collateral on these balances. The allowance for doubtful accounts is recorded as a charge to operating expense. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, no single customer accounted for more than 5% of net revenues. As of December 31, 2013 and 2012, no single customer accounted for more than 5% of accounts receivables. | |||||||||||||
Allowances for doubtful accounts | |||||||||||||
The Company maintains allowances for doubtful accounts, for management’s estimate of probable losses that may result if customers do not make the required payments. Allowances are based upon several factors including, but not limited to, historical experience and the current aging of customers. | |||||||||||||
The Company charges-off receivables when the customer balance becomes 180 days past due. | |||||||||||||
Provision for chargebacks | |||||||||||||
The Company is exposed to losses due to credit card fraud and other payment misuse. Provisions for these items represent our estimate of actual losses based on our historical experience, as well as economic conditions. | |||||||||||||
Credit cards receivables and funds payable to customers | |||||||||||||
Credit cards receivables mainly relate to the Company’s payments solution and arise due to the time taken to clear transactions through external payment networks or during a short period of time until those credit cards receivables are sold to financial institutions. | |||||||||||||
Credit cards receivables are presented net of the related allowance for doubtful accounts. | |||||||||||||
As of December 31, 2013 and 2012, there are no past due credit cards receivables. | |||||||||||||
Funds payable to customers relate also to the Company’s payments solution and are originated by the amounts due to sellers held by the Company until the transaction is completed. Funds, net of any amount due to the Company by the seller, are maintained in the seller’s current account until collection is requested by the customer. | |||||||||||||
Transfer of financial assets | |||||||||||||
The Company may sell credit cards coupons to financial institutions, included within “Credit cards receivables”. These transactions are accounted for as a true sale. Accounting guidance on transfer of financial assets establishes that the transferor has surrendered control over transferred assets if and only if all of the following conditions are met: (1) the transferred assets have been isolated from the transferor, (2) each transferee has the right to pledge or exchange the assets it received (3) the transferor does not maintain effective control over the transferred assets. When all the conditions are met, the Company derecognizes the corresponding financial asset from its balance sheet. As of December 31, 2013 and 2012, there is no continuing involvement with transferred financial assets. The aggregate amount of pre-tax gain included in net revenue recognized on sale of credit card coupons is $ 49,735,842, $39,502,228 and $32,566,802, for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Property and equipment, net | |||||||||||||
Property and equipment are recorded at their acquisition cost and depreciated over their estimated useful lives using the straight-line method. Repair and maintenance costs are expensed as incurred. | |||||||||||||
Costs related to the planning and post implementation phases of website development are recorded as an operating expense. Direct costs incurred in the development phase of website are capitalized and amortized using the straight-line method over an estimated useful life of three years. As of December 31, 2013 and 2012, the Company capitalized $5,387,385 and $3,970,717, respectively. | |||||||||||||
In April 2013, the Company through its Argentine subsidiary acquired three floors or 3,918 square meters in a new office building located in Buenos Aires for a total amount of $18,481,024 plus VAT. The price was paid in Argentine pesos. As of the date of these consolidated financial statements the Company has fully paid: i) $495,453 plus VAT in advance; ii) $3,184,580 plus VAT at the date of signing of the purchase agreement and iii) $14,800,991 plus VAT. | |||||||||||||
In May 2013, the Company acquired 1,158 square meters, 13 parking spaces and 4 storage spaces, in an office building located in Caracas for a total amount of $20,002,357 or BF$126,014,852. The price has been paid in Bolivares Fuertes. | |||||||||||||
In October 2013, the Company through its Venezuelan subsidiary acquired an office property totaling 1,367 square meters, in Caracas, Venezuela. The purchase price of BF$328,195,200, or approximately $52,094,476, was paid in local currency. The Company’s Venezuelan subsidiary funded a portion of the purchase price with its own funds and the balance of approximately BF$85,115,000, or $13,510,317, pursuant to an unsecured line of credit. | |||||||||||||
The unsecured line of credit has a 12-month term and was obtained from a Venezuelan bank at a fixed interest rate of 13% per annum. As of December 31, 2013, the balance of the loan amounted to approximately BF$80,115,000, or $12,716,667. | |||||||||||||
Those buildings, excluding lands, are depreciated from the date when they were ready to be used, using the straight-line depreciation method over a 50-year depreciable life. | |||||||||||||
Goodwill and intangible assets | |||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. | |||||||||||||
Intangible assets consist of customer lists, trademarks, licenses and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date. Intangible assets with definite useful life are amortized over the period of estimated benefit to be generated by those assets and using the straight-line method; their estimated useful lives ranges from three to five years. Trademarks with indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. | |||||||||||||
Impairment of long-lived assets | |||||||||||||
The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparing the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by the asset. If such asset is considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of such asset. | |||||||||||||
Impairment of goodwill and intangible assets with indefinite useful life | |||||||||||||
Goodwill and intangible assets with indefinite useful life are reviewed at the end of the year for impairment or more frequently, if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level (considering each segment of the Company as a reporting unit) by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of such reporting unit. The Company adopted the new guidance to test goodwill and intangible assets with indefinite useful life and, as a consequence, it may perform a qualitative assessment before performing the quantitative assessment. If the Company performs the qualitative assessment and determines, on the basis of qualitative factors, that it is more likely than not that the fair | |||||||||||||
value of the reporting unit or the intangible asset with indefinite useful life is less than its carrying amount, the fair-value based on quantitative impairment test is applied. However, if the Company concludes, based on the qualitative assessment, that the fair value of each of its reporting units or the intangible assets with indefinite useful life is greater than the respective carrying amounts, the two-step impairment test is unnecessary. | |||||||||||||
As of December 31, 2013 and 2012, the Company elected to perform the quantitative impairment test for both goodwill and intangible assets with indefinite useful life. | |||||||||||||
For the year ended December 31, 2013, the fair values of the reporting units were estimated using the income approach. Cash flow projections used were based on financial budgets approved by management. The growth rates applied do not exceed the long-term average growth rate for the business in which the reporting unit operates. The Company uses discount rates to each reporting unit in the range of 10% to 20%. The average discount rate used for 2013 was 13.6%. That rate reflected the Company’s estimated weighted average cost of capital. Key drivers in the analysis include Confirmed Registered Users (“CRUs”), Gross Merchandise Volume (“GMV”) which represents a measure of the total U.S. dollar amount of all transactions completed through the MercadoLibre marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services and take rate defined as marketplace revenues as a percentage of gross merchandise volume. In addition, the analysis include a business to e-commerce rate, which represents growth of e-commerce as a percentage of GDP, internet penetration rates as well as trends in the Company’s market share. | |||||||||||||
If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and the second step is performed to measure the amount of impairment loss, if any. No impairment loss has been recognized in the years ended December 31, 2013, 2012 and 2011 and management’s assessment of the fair value of each reporting unit exceeds its carrying value. | |||||||||||||
Intangible assets with indefinite useful life are considered impaired if the carrying amount of the intangible asset exceeds its fair value. No impairment loss has been recognized in the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Revenue recognition | |||||||||||||
The Company generates revenues from different services provided. When more than one service is included in one single arrangement with the customer, the Company recognizes revenue according to multiple element arrangements accounting, distinguishing between each of the services provided and allocating revenues based on their respective selling prices. | |||||||||||||
Revenues are recognized when evidence of an arrangement exists, the fee is fixed or determinable and collection is reasonably assured. | |||||||||||||
Revenues from services are separately recognized according to the following criteria described for each type of services: | |||||||||||||
• | Revenues from intermediation services derive from listing and final value fees paid by sellers. Listing fee revenues are recognized ratably over the estimated period of the listing, while revenues related to final value fees are recognized at the time that the transaction is successfully concluded. An auction transaction is considered successfully concluded when at least one buyer has bid above the seller’s specified minimum price or reserve price, whichever is higher, at the end of the transaction term. Our payment services revenues are generated primarily from processing transactions for customers. Revenues resulting from a payment processing transaction are recognized once the transaction is completed. The Company does not charge a separate fee for on-platform transactions. | ||||||||||||
• | Listing and optional feature services, which fees relate to the right of a seller to have the item offered listed in a preferential way, as well as classified advertising services, are recorded as revenue ratably during the listing period. Those fees are charged at the time the listing is uploaded onto the Company’s platform and is not subject to successful sale of the items listed. | ||||||||||||
• | Revenues derived from the use of the Company’s on-line payments solution, for transactions off-platform are earned once the transaction is considered completed, when the payment is processed by the Company. The Company also earns revenues as a result of offering financing to our MercadoPago users, either directly or when the Company elects to sell the corresponding financial assets to financial institutions. | ||||||||||||
• | Advertising revenues such as the sale of banners are recognized on accrual basis, and MercadoClics services or sponsorship of sites are recognized based on “per-click” (which are generated each time users on our websites click through our text-based advertisements to an advertiser’s designated website) values and as the “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our websites) are delivered. | ||||||||||||
• | Revenues from shipping services are generated when a buyer elects to receive the item through our shipping service and the service is rendered to the client. Revenues are disclosed net of third party provider’s cost. | ||||||||||||
Share-based payments | |||||||||||||
Shares granted under the 2008 long term retention plan (“the 2008 LTRP”) were accounted for at their grant date fair value. | |||||||||||||
Fair value of stock options was calculated using the Black-Scholes pricing model. This calculation is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. The use of a Black-Scholes model | |||||||||||||
requires extensive actual employee exercise behavior data and a number of complex assumptions including expected life, expected volatility, risk-free interest rate and dividend yield. As a result, the future stock-based compensation expense may differ from historical amounts. | |||||||||||||
Fair value of restricted and additional shares and shares granted under the 2008 LTRP was calculated using the grant date price of the Company’s shares. The 2008 LTRP has been fully settled during the first quarter of 2012. | |||||||||||||
The liability related to the variable portion of 2013, 2012, 2011, 2010 and 2009 long term retention plan is remeasured at fair value (See Note 16 “Long Term Retention Plan” for more details). | |||||||||||||
For share-based awards that have a graded vesting schedule, compensation cost is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was in-substance multiple awards. | |||||||||||||
Sales tax | |||||||||||||
The Company’s subsidiaries in Brazil, Argentina, Venezuela and Colombia are subject to certain sales taxes which are classified as cost of net revenues and totaled $28,388,734, $22,529,191, and $21,387,561 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Advertising costs | |||||||||||||
The Company expenses the costs of advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click basis, or on a straight-line basis over the term of the contract. Advertising costs totaled $31,594,894, $18,764,629 and $19,914,755 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Comprehensive income | |||||||||||||
Comprehensive income is comprised of two components, net income and other comprehensive income. This last component is defined as all other changes in the equity of the Company that result from transactions other than with shareholders. Other comprehensive income includes the cumulative translation adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries (except Venezuela since January 1, 2010, see “Foreign currency translation”) and unrealized gains and losses on investments classified as available-for-sale. Total comprehensive income attributable to MercadoLibre, Inc. shareholders’ for the years ended December 31, 2013, 2012 and 2011 amounted to $78,834,596, $89,507,516 and $62,135,746 respectively. | |||||||||||||
Redeemable noncontrolling interest | |||||||||||||
In September 2011, the Company acquired the 60% of the shares of AP Clasificados S.R.L. de C.V. (“AP Clasificados”), and signed a call and a put option agreement to acquire the remaining 40% interest in AP Clasificados (See note 6 “Business Combinations, Goodwill and Intangible Assets” for more detail). According to the signed agreement, the price for the remaining 40% interest call or put options will be determined by the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the seller’s interests as of the exercise date of the call/put option by (B) an amount equal to 3.5 times the amount of invoiced sales of such company for the twelve months period ending on the exercise date. | |||||||||||||
The put option is to be exercised if any of the following events occurs: (i) the third anniversary of the acquisition date, (ii) the termination of the employment of the main operating officer, and (iii) death or incapacitation of the main operating officer. The call option is to be exercised following the earlier to occur of (i) third anniversary of the acquisition date and (ii) members holding a majority of the issued and outstanding interests determine that an additional capital contribution is required to capitalize AP Clasificados and the seller does not make such additional capital contribution. | |||||||||||||
Redeemable noncontrolling interest is not considered to be a component of Equity and is reported in the mezzanine section between total liabilities and equity in the consolidated balance sheet for a total amount of $4,000,000 at December 31, 2013. The noncontrolling interest was measured at its estimated redemption value according to the abovementioned agreed conditions. Changes in the estimated redemption value as of the year-end were recorded in retained earnings. | |||||||||||||
Foreign currency translation | |||||||||||||
All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Venezuela since January 1, 2010, as described below. Accordingly, these foreign subsidiaries translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive income (loss). Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the consolidated statements of income under the caption “Foreign currency gain” and amounted to $1,258,476, $11,597 and $2,353,005 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Venezuelan currency status | |||||||||||||
According to U.S. GAAP, the Company has transitioned its Venezuelan operations to highly inflationary status as from January 1, 2010, which requires that transactions and balances are re-measured as if the U.S. dollar was the functional currency for such operation. The cumulative three year inflation rate as of December 31, 2010 exceeded 100%. As of the date of these consolidated financial statements, the cumulative three-year inflation rate approximates 100%. The Company continues to treat the economy of Venezuela as highly-inflationary. Therefore, no translation effect was accounted for in other comprehensive income during the years ended December 31, 2013, 2012 and 2011 related to the Venezuelan operations. | |||||||||||||
Until May 13, 2010, the Venezuelan subsidiaries had used an indirect mechanism consisting in the purchase and sale of securities, including national public debt bonds (DPNs) denominated in Bolivares Fuertes and bonds issued by the government that were denominated in U.S. dollars, to exchange Bolivares Fuertes for U.S. dollars and accordingly the Company used the parallel average exchange rate to re-measure those foreign currency transactions. However, on May 14, 2010, the Venezuelan government enacted reforms to its exchange regulations and closed-down such parallel market by declaring that foreign-currency-denominated securities issued by Venezuelan entities were included in the definition of foreign currency, thus making the Banco Central of Venezuela (BCV – the Venezuelan Central Bank) the only institution that could legally authorize the purchase or sale of foreign currency bonds, thereby excluding non-authorized brokers from the foreign exchange market. | |||||||||||||
On June 9, 2010 the Venezuelan Government, through its Central Bank, implemented a regulated market for trading with foreign currencies, being the BCV the only official institution through which foreign currency-denominated transactions could be brokered. Under that system, known as the Foreign Currency Securities Transactions System (SITME), entities domiciled in Venezuela could then buy U.S. dollar–denominated securities only through banks authorized by the BCV to import goods, services or capital inputs. For the period between May 14, 2010 and June 8, 2010 (during which there was no open foreign currency markets) the Company applied U.S. GAAP guidelines, which state that if exchangeability between two currencies is temporarily lacking at the transaction date or balance sheet date, the first subsequent rate at which exchanges could be made shall be used. Accordingly, the June 9, 2010 exchange rate published by the BCV was used to re-measure transactions during the abovementioned period. As of December 31, 2012, the exchange rate used to re-measure transactions was 5.30 Bolivares Fuertes per U.S. dollar. | |||||||||||||
In February 2013, the Government of Venezuela eliminated the SITME, which was a former system that allowed companies limited access to foreign currencies for payments to foreign suppliers, and devalued the official exchange rate to 6.3 Bolivares Fuertes per U.S. dollar. The devaluation required re-measurement of the Company’s Venezuelan subsidiaries’ non-U.S. dollar denominated monetary assets and liabilities at that rate from February 2013. | |||||||||||||
On March 19, 2013, the BCV announced the creation of the Sistema Complementario de Administración de Divisas, or SICAD, which would act jointly with the Commission for the Administration of Foreign Exchange Control (CADIVI). In order to operate within that system, a company had to be registered at the Registro Automatizado (Automatized Register, or “RUSAD”), and the acquisition of foreign currencies under that system was organized under an auction process to obtain foreign currencies for payments to foreign suppliers, where the minimum exchange rate to be offered was 6.30 Bolivares Fuertes per U.S. dollar. As of the date of these consolidated financial statements, the Company has been unable to access that auction process. | |||||||||||||
Accordingly, as of December 31, 2013, the exchange rate used to re-measure the net monetary assets of the Company’s Venezuelan subsidiaries was 6.30 Bolivares Fuertes per U.S. dollar, and transactions were re-measured at the monthly average exchange rate for the year ended December 31, 2013. | |||||||||||||
The SITME rate that had been used to re-measure foreign currency transactions during 2012 was 5.3 Bolivares Fuertes per U.S. dollar, and the devaluation of the official exchange rate of the Bolivares Fuertes against the U.S. dollar to 6.3 Bolivares Fuertes per U.S. dollar generated a foreign currency loss amounting to approximately $6.4 million in the first quarter of 2013. | |||||||||||||
Until 2010 the Company was able to obtain U.S. dollars for any purpose, including dividends distribution, using alternative mechanisms other than through the CADIVI. Those U.S. dollars, obtained at a higher exchange rate than the one offered by CADIVI, and held in balance at U.S. bank accounts of its Venezuelan subsidiaries, were used for dividend distributions from its Venezuelan subsidiaries. CADIVI is the only means by which U.S. dollars for dividend distributions can be requested. The Company´s Venezuelan subsidiaries did not request authorization to CADIVI in 2012, neither during the year ended December 31, 2013, to acquire U.S. dollars to make dividend distributions. The Company has not distributed dividends from its Venezuelan subsidiaries since 2011. | |||||||||||||
In late December 2013, the Venezuelan government authorized the Central Bank of Venezuela to begin publishing the average exchange rate resulting from the weekly SICAD auctions. According to the regulations in force at that date, as of December 31, 2013 the SICAD mechanism then in force was only accessible for businesses operating in certain industry segments which did not include the company´s business. So, the company did not have access to U.S. dollars through those auctions during 2013. | |||||||||||||
The following table sets forth the assets, liabilities and net assets of the Company’s Venezuelan subsidiaries, before intercompany eliminations, as of December 31, 2013 and 2012 and net revenues for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Venezuelan operations | |||||||||||||
Net Revenues | $ | 84,572,485 | $ | 54,676,170 | $ | 34,828,878 | |||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | 126,873,804 | 62,938,728 | |||||||||||
Liabilities | (62,437,338 | ) | (22,652,965 | ) | |||||||||
Net Assets | $ | 64,436,466 | $ | 40,285,763 | |||||||||
As of December 31, 2013, net assets (before intercompany eliminations) of the Venezuelan subsidiaries amounted to approximately 18.8% of consolidated net assets, and cash and investments of the Venezuelan subsidiaries held in local currency in Venezuela amounted to approximately 9.8% of our consolidated cash and investments. | |||||||||||||
The Company’s ability to obtain U.S. dollars in Venezuela is negatively affected by the exchange regulations in Venezuela that are described above and elsewhere in these financial statements. In addition, its business and ability to obtain U.S. dollars in Venezuela would be negatively affected by additional material devaluations or the imposition of significant additional and more stringent controls on foreign currency exchange by the Venezuelan government. | |||||||||||||
Despite the current difficult macroeconomic environment in Venezuela, the Company continues to actively manage, through its Venezuelan subsidiaries, its investment in Venezuela. Based on current operating, political and economic conditions and certain other factors in Venezuela, management currently believes that its business plans and operating strategy in Venezuela will not be materially adversely impacted in the long run. | |||||||||||||
See Note 21 “Subsequent events” for recent developments relating to Venezuela exchange rate. | |||||||||||||
Argentine currency status | |||||||||||||
The Argentine government has implemented certain measures that control and restrict the ability of companies and individuals to exchange Argentine Pesos for foreign currencies. Those measures include, among other things, the requirement to obtain the prior approval from the Argentine Tax Authority of the foreign currency transaction (for example and | |||||||||||||
without limitation, for the payment of non-Argentine goods and services, payment of principal and interest on non-Argentine debt and also payment of dividends to parties outside of the country), which approval process could delay, and eventually restrict, the ability to exchange Argentine pesos for other currencies, such as U.S. dollars. Those approvals are administered by the Argentine Central Bank through the Local Exchange Market (“Mercado Unico Libre de Cambios” or “MULC”), which is the only market where exchange transactions may be lawfully made. Further, restrictions also currently apply to the acquisition of any foreign currency for holding as cash within Argentina. | |||||||||||||
Although the controls and restrictions on the acquisition of foreign currencies in Argentina do place certain limitations on the current ability of the Company to convert cash generated by its Argentine subsidiary to currencies different from the Argentine peso, based on the current state of Argentine currency rules and regulations, the Company does not expect that the current controls and restrictions, will have a material adverse effect on its business plans in Argentina or on its overall business, financial condition and results of operations. | |||||||||||||
Highly inflationary status in Venezuela | |||||||||||||
During May 2009, the International Practices Task Force discussed the highly inflationary status of the Venezuelan economy. | |||||||||||||
The cumulative three year inflation rate as of December 31, 2009 exceeded 100%. According to U.S. GAAP, calendar year-end companies should apply highly inflationary accounting as from January 1st of the year in which the status of hyperinflationary is raised. Therefore, the Company transitioned its Venezuelan operations to highly inflationary status as of January 1, 2010 considering the U.S. dollar as its functional currency. As of the date of these consolidated financial statements, the cumulative three-year inflation rate approximates 100%. The Company continues to treat the economy of Venezuela as highly-inflationary. | |||||||||||||
Income and asset taxes | |||||||||||||
The Company is subject to U.S. and foreign income taxes. The Company accounts for income taxes following the liability method of accounting which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. The Company’s income tax expense consists of taxes currently payable, if any, plus the change during the period in the Company’s deferred tax assets and liabilities. | |||||||||||||
According to Argentine law, from fiscal year 2008, the Company’s Argentine subsidiary has been a beneficiary of a software development law. Part of the benefits obtained from being a beneficiary of the aforementioned law is a relief of 60% of total income tax determined in each year, thus resulting in an effective tax rate in Argentina lower than the income tax law statutory rate. The law expires during 2014. | |||||||||||||
Aggregate tax relief totaled $11,592,825, $9,204,773 and $6,140,713 for the years ended December 31, 2013, 2012 and 2011, respectively. Aggregate per share effect of the Argentine tax holiday amounts to $0.26, $0.21 and $0.14 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
In addition, the recently acquired software development company (see Note 6), located in the Province of Cordoba, Argentina, is also beneficiary of the aforementioned income tax holiday. | |||||||||||||
If the Company had not been granted the Argentine tax holiday, it would have pursued an alternative tax planning strategy and, therefore, the impact of not having this particular benefit would not necessarily be the abovementioned dollar and per share effect. | |||||||||||||
On August 17, 2011, the Argentine government issued a new software development law and on September 9, 2013 the regulatory decree was issued, which established the new requirement to become beneficiary of the new software development law. The new decree establishes compliance requirements with annual incremental ratios related to exports of services and research and development expenses that must be achieved to remain within the tax holiday. The Argentine operation will have to achieve certain required ratios annually under the new software development law. | |||||||||||||
If we apply and we are successful in being admitted as beneficiaries under the new law, the current income tax relief would decrease, but it is currently estimated that the Argentine effective income tax rate would still be materially lower than the statutory income tax rate. Also, the tax holiday under the new law would last until 2019. | |||||||||||||
The Industry Secretary resolution which rules , among other provisions, on the mechanism to file the information to obtain the benefits derived from the new software development law was issued in late February 2014, and the Company is currently analyzing its provisions for both applying to qualify under the new law, and the potential effects that this new rule may have on the ability to continue to be benefited under the current law in 2014, as well as in subsequent years under the new law. | |||||||||||||
As of December 31, 2013 and 2012, the Company has included under non-current deferred tax assets caption the foreign tax credits related to the dividend distributions received from its subsidiaries for a total amount of $668,659 and $2,414,440, respectively. Those foreign tax credits will be used to offset the future domestic income tax payable. | |||||||||||||
Uncertainty in income taxes | |||||||||||||
The Company recognizes, if any, uncertainty in income taxes by applying the accounting prescribed by U.S. GAAP, for which a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return should be considered. It also provides guidance on de-recognition, classification of a liability for unrecognized tax benefits, accounting for interest and penalties, accounting in interim periods, and expanded income tax disclosures. The Company classifies interest and penalties, if any, within income and asset taxes expense, in the statement of income. | |||||||||||||
The Company is subject to taxation in the U.S. and various foreign jurisdictions. The material jurisdictions that are subject to examination by tax authorities for tax years after 2007 primarily include the U.S., Argentina, Brazil, Mexico and Venezuela. | |||||||||||||
Recently issued accounting pronouncements | |||||||||||||
In February 2013 the Financial Accounting Standards Board (“FASB”) issued the Accounting Standard Update No. 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company implemented this new standard as of the date of these financial statements. | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance “Joint-and-Several Obligations” clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations, or cash flows. | |||||||||||||
In March 2013, the FASB issued “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity a consensus of the FASB Emerging Issues Task Force” clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a | |||||||||||||
foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations or cash flows. | |||||||||||||
In July 2013, the FASB issued a new accounting standard in response to “EITF Consensus on Presenting an Unrecognized Tax Benefit When net operating loss (NOL) Carryforwards Exist” that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard requires adoption on a prospective basis in the first quarter of 2015; however, early adoption is permitted. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations, or cash flows. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||||||||||
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 year by the weighted average number of common shares outstanding during the year. | |||||||||||||||||||||||||
Diluted earnings per share for the Company’s common stock assume the exercise of outstanding stock options, shares granted under 2008 Long Term Retention Plan (see Note 12), under the Company’s stock based employee compensation plan, and the corresponding adjustment attributable to changes in redeemable non-controlling interest. | |||||||||||||||||||||||||
The following table shows how net income is allocated using the two-class method for earnings per common share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
Net income | $ | 117,526,263 | $ | 117,526,263 | $ | 101,346,147 | $ | 101,346,147 | $ | 76,796,339 | $ | 76,796,339 | |||||||||||||
Net loss (income) attributable to noncontrolling interests | (18,825 | ) | (18,825 | ) | (98,849 | ) | (98,849 | ) | (16,286 | ) | (16,286 | ) | |||||||||||||
Change in redeemable amount of noncontrolling interest | 9,644 | 9,644 | 359,398 | 359,398 | (610,853 | ) | (610,853 | ) | |||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders corresponding to common stock | $ | 117,517,082 | $ | 117,517,082 | $ | 101,606,696 | $ | 101,606,696 | $ | 76,169,200 | $ | 76,169,200 | |||||||||||||
Net income per share of common stock is as follows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders per common share | $ | 2.66 | $ | 2.66 | $ | 2.3 | $ | 2.3 | $ | 1.73 | $ | 1.73 | |||||||||||||
Numerator: | |||||||||||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders | $ | 117,517,082 | $ | 117,517,082 | $ | 101,606,696 | $ | 101,606,696 | $ | 76,169,200 | $ | 76,169,200 | |||||||||||||
Denominator: | |||||||||||||||||||||||||
Weighted average of common stock outstanding for Basic earnings per share | 44,152,600 | 44,152,600 | 44,147,861 | 44,147,861 | 44,138,397 | 44,138,397 | |||||||||||||||||||
Adjustment for stock options | — | — | — | 1,977 | — | 8,089 | |||||||||||||||||||
Adjustment for shares granted under 2008 LTRP | — | — | — | — | — | 4,951 | |||||||||||||||||||
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 44,152,600 | 44,152,600 | 44,147,861 | 44,149,838 | 44,138,397 | 44,151,437 | |||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, there were no anti-dilutive shares that should have been excluded from the calculation of diluted net income per common share. |
Shortterm_and_Longterm_Investm
Short-term and Long-term Investments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||
Short-term and Long-term Investments | ' | ||||||||
4 | Short-term and long-term investments | ||||||||
The composition of short-term and long-term investments is as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Short-term investments | |||||||||
Time Deposits | $ | 66,677,156 | $ | 87,379,121 | |||||
Sovereign Debt Securities | 5,520,193 | — | |||||||
Corporate Debt Securities | 4,395,865 | 6,315,684 | |||||||
Total | $ | 76,593,214 | $ | 93,694,805 | |||||
Long-term investments | |||||||||
Sovereign Debt Securities | 24,875,697 | 21,453,141 | |||||||
Corporate Debt Securities | 20,844,040 | 45,675,610 | |||||||
Asset Backed Securities | — | 18,826,833 | |||||||
Total | $ | 45,719,737 | $ | 85,955,584 | |||||
Unrealized gains of available-for-sale securities, net of tax, were $25,467, $759,564 and $924,657 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
As of December 31, 2013 and 2012, the Company has no security considered held-to-maturity securities. |
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||
Balance Sheet Components | ' | ||||||||||||||||
5 | Balance sheet components | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable, net: | |||||||||||||||||
Users | $ | 37,500,773 | $ | 28,667,738 | |||||||||||||
Credit cards and other means of payments | 3,967,585 | 1,545,738 | |||||||||||||||
Advertising | 2,306,622 | 2,537,795 | |||||||||||||||
Others debtors | 1,104,084 | 31,828 | |||||||||||||||
44,879,064 | 32,783,099 | ||||||||||||||||
Allowance for doubtful accounts | (18,994,804 | ) | (12,946,077 | ) | |||||||||||||
$ | 25,884,260 | $ | 19,837,022 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Credit card receivables | |||||||||||||||||
Credit cards and other means of payments | $ | 53,054,922 | $ | 35,976,964 | |||||||||||||
Allowance for chargebacks | (1,009,071 | ) | (160,458 | ) | |||||||||||||
$ | 52,045,851 | $ | 35,816,506 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other current assets: | |||||||||||||||||
VAT credits | $ | 3,589,730 | $ | 4,103,333 | |||||||||||||
Other taxes | 5,128,602 | 5,685,856 | |||||||||||||||
Other | 2,770,513 | 1,614,029 | |||||||||||||||
$ | 11,488,845 | $ | 11,403,218 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other non current assets: | |||||||||||||||||
Legal Deposits | $ | 660,475 | $ | 591,798 | |||||||||||||
Deposit in Court (Note 15) | 22,295,223 | 5,067,712 | |||||||||||||||
Other | 1,443,486 | 458,610 | |||||||||||||||
$ | 24,399,184 | $ | 6,118,120 | ||||||||||||||
Estimated | December 31, | December 31, | |||||||||||||||
useful life | 2013 | 2012 | |||||||||||||||
(years) | |||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Equipment | 5-Mar | $ | 31,819,593 | $ | 22,696,763 | ||||||||||||
Land & Building | 50 | (1) | 105,142,930 | 15,800,900 | |||||||||||||
Furniture and fixtures | 5-Mar | 10,081,433 | 8,785,736 | ||||||||||||||
Software | 3 | 14,720,776 | 12,190,233 | ||||||||||||||
Cars | 3 | 286,397 | 568,609 | ||||||||||||||
162,051,129 | 60,042,241 | ||||||||||||||||
Accumulated depreciation | (30,679,220 | ) | (22,316,019 | ) | |||||||||||||
$ | 131,371,909 | $ | 37,726,222 | ||||||||||||||
-1 | Estimated useful life attributable to “Buildings”. | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||
Cost of net revenues | $ | 1,168,570 | $ | 859,364 | $ | 833,898 | |||||||||||
Product and technology development | 8,622,723 | 6,112,771 | 5,013,799 | ||||||||||||||
Sales and marketing | 213,018 | 190,143 | 151,860 | ||||||||||||||
General and administrative | 1,874,254 | 1,797,015 | 1,268,518 | ||||||||||||||
$ | 11,878,565 | $ | 8,959,293 | $ | 7,268,075 | ||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts payable and accrued expenses: | |||||||||||||||||
Accounts payable | $ | 26,658,109 | $ | 14,821,511 | |||||||||||||
Accrued expenses | |||||||||||||||||
Advertising | 2,513,890 | 2,265,338 | |||||||||||||||
Professional fees | 1,571,771 | 1,064,502 | |||||||||||||||
Other expense provisions | 3,658,422 | 5,822,120 | |||||||||||||||
Other current liabilities | 3,141 | 3,142 | |||||||||||||||
$ | 34,405,333 | $ | 23,976,613 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Current loans payable and other financial liabilities: | |||||||||||||||||
Unsecured lines of credit | $ | 13,348,861 | $ | — | |||||||||||||
Car leasing financing (1) | 21,962 | 84,570 | |||||||||||||||
$ | 13,370,823 | $ | 84,570 | ||||||||||||||
Non current loans payable and other financial liabilities: | December 31, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Unsecured lines of credit | $ | 2,489,819 | $ | — | |||||||||||||
Car leasing financing (1) | — | 59,493 | |||||||||||||||
$ | 2,489,819 | $ | 59,493 | ||||||||||||||
-1 | See note 15 – Capital Leases | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Non current other liabilities: | |||||||||||||||||
Provisions and contingencies | $ | 3,330,108 | $ | 2,800,197 | |||||||||||||
Other | 369,001 | 36,953 | |||||||||||||||
$ | 3,699,109 | $ | 2,837,150 | ||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Accumulated other comprehensive income: | |||||||||||||||||
Foreign currency translation | $ | (87,481,437 | ) | $ | (49,542,692 | ) | $ | (37,968,003 | ) | ||||||||
Unrealized gains on investments | 36,626 | 1,146,662 | 1,394,887 | ||||||||||||||
Estimated tax loss on unrealized gains on investments | (11,159 | ) | (387,098 | ) | (470,230 | ) | |||||||||||
$ | (87,455,970 | ) | $ | (48,783,128 | ) | $ | (37,043,346 | ) | |||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the year December 31, 2013: | |||||||||||||||||
Unrealized | Foreign | Estimated tax | Total | ||||||||||||||
Gains on | Currency | (expense) | |||||||||||||||
Investments | Translation | benefit | |||||||||||||||
Beginning balance | $ | 1,146,662 | $ | (49,542,692 | ) | $ | (387,098 | ) | $ | (48,783,128 | ) | ||||||
Other comprehensive income before reclassifications | 36,626 | (37,938,745 | ) | (11,159 | ) | (37,913,278 | ) | ||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | $ | (1,146,662 | ) | — | $ | 387,098 | (759,564 | ) | |||||||||
Net current period other comprehensive income | (1,110,036 | ) | (37,938,745 | ) | 375,939 | (38,672,842 | ) | ||||||||||
Ending balance | $ | 36,626 | $ | (87,481,437 | ) | $ | (11,159 | ) | $ | (87,455,970 | ) | ||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013: | |||||||||||||||||
Details about Accumulated | Amount of Gain (Loss) | Affected Line Item | |||||||||||||||
Other Comprehensive Income | Reclassified from | in the Statement of Income | |||||||||||||||
Components | Accumulated Other | ||||||||||||||||
Comprehensive | |||||||||||||||||
Income | |||||||||||||||||
Unrealized gains on investments | $ | 1,146,662 | Interest income and other financial gains | ||||||||||||||
Estimated tax loss on unrealized gains on investments | -387,098 | Income / asset tax expense | |||||||||||||||
Total reclassifications for the year | $ | 759,564 | Total, net of income taxes |
Business_Combinations_Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Business Combinations, Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
6 | Business combinations, goodwill and intangible assets | ||||||||||||||||||||||||||||||||
Business combinations | |||||||||||||||||||||||||||||||||
Acquisition of AutoPlaza.com in Mexico | |||||||||||||||||||||||||||||||||
On September 14, 2011, the Company completed, through one of its subsidiaries, Meli Participaciones S.L. (“ETVE” or “the Buyer”), the acquisition of the 60 % of outstanding membership interest of Autopark LLC, a limited liability company organized under the laws of Delaware, from Hasteny Trading S.A. (“Hasteny” or “the Seller”), a parent company organized under the laws of Uruguay, who owned all the shares of the capital stock of Autopark LLC. | |||||||||||||||||||||||||||||||||
Autopark LLC owns directly and indirectly the 100% of the membership interest of AP Clasificados S.R.L. de C.V. (“AP Clasificados”), a company organized under the laws of Mexico. AP Clasificados operates an online classified advertisements platform in Mexico primarily dedicated to the sale of vehicles and real estate (“the Acquired Business”). | |||||||||||||||||||||||||||||||||
The aggregate purchase price paid by the Company to the Seller for the 60% of the Acquired Business was $5,472,056. In addition, the Company incurred in certain direct costs of the business combination which were expensed as incurred. | |||||||||||||||||||||||||||||||||
On September 12, 2011 (the “settlement date”), part of the purchase price amounting to $1,500,000, was placed into an escrow account, in order to cover unexpected liabilities and working capital. On September 12, 2012 the 50% of the escrow amount was released and the other 50% of the escrow was released on September 12, 2013. | |||||||||||||||||||||||||||||||||
In addition, ETVE has the right and option (but not the obligation) to purchase the remaining 40% of the membership interest of Autopark LLC following the earlier to occur of (i) third anniversary of the settlement date, or (ii) additional capital contribution be required to capitalize Autopark LLC by their own member’s decision and Hasteny does not make such additional capital contribution within ten (10) days of such members’ consent. The total consideration to be paid shall be the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the membership interest held by Hasteny as of the date of the Call Notice by (B) an amount equal to 3.5 times the amount of invoiced sales of the Acquired Business for the twelve months period ending on the date of Call Notice. | |||||||||||||||||||||||||||||||||
On the other hand, Hasteny has the right and option (but not the obligation) to sell and transfer, all of the Hasteny interest in Autopark LLC, to ETVE and ETVE has the obligation to buy following the earlier to occur (i) the third anniversary of the effective date, (ii) the termination of the employment of the main operating officer of the acquired company, or (iii) death or incapacitation of the main operating officer of the acquired company. The total consideration to be paid by ETVE for the Hasteny Interests shall be the same as described in the preceding paragraph. | |||||||||||||||||||||||||||||||||
The Seller and its affiliates have also agreed to enter into certain non-compete agreements with the Company for 5 years since September 12, 2011. | |||||||||||||||||||||||||||||||||
The Company’s statement of income includes the results of operations of the Acquired Businesses as from September 15, 2011. | |||||||||||||||||||||||||||||||||
The following table summarizes the allocation of the cash paid in the acquisition: | |||||||||||||||||||||||||||||||||
Net Tangible Assets | $ | 153,349 | |||||||||||||||||||||||||||||||
Identifiable Intangible Assets | 3,290,998 | ||||||||||||||||||||||||||||||||
Deferred Tax Liabilities | (987,299 | ) | |||||||||||||||||||||||||||||||
Goodwill | 6,663,045 | ||||||||||||||||||||||||||||||||
Noncontrolling interest | (3,648,037 | ) | |||||||||||||||||||||||||||||||
Aggregate Purchase Price | $ | 5,472,056 | |||||||||||||||||||||||||||||||
Net assets acquired were valued at their respective fair values at the acquisition date according to U.S. GAAP. The valuation of identifiable intangible assets acquired as well as non-controlling interest reflects management’s estimates based on, among other factors, use of established valuation methods. The identifiable intangible assets consist of trademarks and domains, customer lists and non-compete agreements. Management of the Company estimates that trademarks have an indefinite useful life, for that reason these intangible assets are not amortized but they are subject to an annual impairment test. Intangible assets associated with customer list and non-compete agreements are amortized on a straight line basis over a five year period. | |||||||||||||||||||||||||||||||||
Acquisition of Software Development Company in Argentina | |||||||||||||||||||||||||||||||||
On March 22, 2013, the Company completed, through its subsidiaries Meli Participaciones S.L. (ETVE) and MercadoLibre S.R.L. (MercadoLibre Argentina) (together referred to as the “Buyer”), the acquisition of the 100% of equity interest in a software development company located and organized under the laws of the Province of Cordoba, Argentina. The objective of the acquisition was to enhance the capabilities of the Company in terms of software development. | |||||||||||||||||||||||||||||||||
The aggregate purchase price for the acquisition of the 100% of the acquired business was $3,454,497 (settled in Argentine pesos 17,652,480). On such same date, the Buyer paid and agreed to pay the purchase price as follows: i) $2,191,781 in cash; ii) set an escrow amounting to $489,237 for a 24-months period, aiming to cover unexpected liabilities and negative working capital; iii) set an escrow amounting to $547,945 for a 36-months period, aiming to continue the employment relationship of certain key employees; and iv) on June 24, 2013 the Company paid the remaining $225,534 net of certain negative working capital adjustments. | |||||||||||||||||||||||||||||||||
In addition, the Company incurred in certain direct costs of the business combination which were expensed as incurred. | |||||||||||||||||||||||||||||||||
The above mentioned escrow for the continuing employment relationship of $547,945 will be expensed over the 36-months period or a lesser period of time if certain other conditions determined in the Selling and Purchase Agreement (SPA) occur. The escrow will be released at the end of such period, together with the accrued interest. | |||||||||||||||||||||||||||||||||
The Company’s consolidated statement of income includes the results of operations of the acquired business as from March 22, 2013. The net revenues and net loss of the acquiree included in the Company’s consolidated statement of income since the acquisition amounted to $524,965 and $7,562, respectively. | |||||||||||||||||||||||||||||||||
The following table summarizes the definitive purchase price allocation for the acquisition: | |||||||||||||||||||||||||||||||||
Net assets acquired | $ | 237,891 | |||||||||||||||||||||||||||||||
Goodwill | 2,668,661 | ||||||||||||||||||||||||||||||||
Purchase price | 2,906,552 | ||||||||||||||||||||||||||||||||
Escrow for employment relationship | 547,945 | ||||||||||||||||||||||||||||||||
Aggregate price paid | $ | 3,454,497 | |||||||||||||||||||||||||||||||
Supplemental pro-forma information required by U.S. GAAP, is impracticable after making every reasonable effort to do so, however, amounts involved are deemed to be immaterial. | |||||||||||||||||||||||||||||||||
Arising goodwill has been allocated proportionally to each of the segments identified by the Company’s management, considering the synergies expected from this acquisition and it is expected that the acquiree will contribute to the earnings generation process of such segments. | |||||||||||||||||||||||||||||||||
The Company recognized goodwill for both acquisitions based on management expectation that the acquired businesses will expand and improve the Company’s business and strengthen the Company’s leadership position in both countries. | |||||||||||||||||||||||||||||||||
Goodwill is not deductible for tax purposes. | |||||||||||||||||||||||||||||||||
The results of operations for periods prior to the acquisitions, individually and in the aggregate, were not material to the consolidated statements of operations of the Company and, accordingly, pro forma information has not been presented. | |||||||||||||||||||||||||||||||||
Goodwill and intangible assets | |||||||||||||||||||||||||||||||||
The composition of goodwill and intangible assets is as follows: | |||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Goodwill | $ | 55,101,218 | $ | 60,366,063 | |||||||||||||||||||||||||||||
Intangible assets with indefinite lives | |||||||||||||||||||||||||||||||||
- Trademarks | 5,238,090 | 5,326,057 | |||||||||||||||||||||||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||||||||||
- Licenses and others | 3,430,003 | 3,829,668 | |||||||||||||||||||||||||||||||
- Non-compete agreement | 1,025,605 | 1,195,509 | |||||||||||||||||||||||||||||||
- Customer list | 1,568,190 | 1,708,770 | |||||||||||||||||||||||||||||||
Total intangible assets | $ | 11,261,888 | $ | 12,060,004 | |||||||||||||||||||||||||||||
Accumulated amortization | (4,670,303 | ) | (4,780,139 | ) | |||||||||||||||||||||||||||||
Total intangible assets, net | $ | 6,591,585 | $ | 7,279,865 | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Brazil | Argentina | Chile | Mexico | Venezuela | Colombia | Other Countries | Total | ||||||||||||||||||||||||||
Balance, beginning of the year | $ | 10,706,281 | $ | 18,889,094 | $ | 7,115,211 | $ | 11,404,780 | $ | 4,846,030 | $ | 5,897,136 | $ | 1,507,531 | $ | 60,366,063 | |||||||||||||||||
- Business acquisition | 1,307,644 | 659,159 | — | 186,806 | 405,637 | 69,385 | 40,030 | 2,668,661 | |||||||||||||||||||||||||
- Effect of exchange rates change | (1,647,907 | ) | (4,872,108 | ) | (595,017 | ) | (215,446 | ) | — | (460,459 | ) | (142,569 | ) | (7,933,506 | ) | ||||||||||||||||||
Balance, end of the year | $ | 10,366,018 | $ | 14,676,145 | $ | 6,520,194 | $ | 11,376,140 | $ | 5,251,667 | $ | 5,506,062 | $ | 1,404,992 | $ | 55,101,218 | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Brazil | Argentina | Chile | Mexico | Venezuela | Colombia | Other Countries | Total | ||||||||||||||||||||||||||
Balance, beginning of year | $ | 11,663,443 | $ | 21,583,774 | $ | 6,577,459 | $ | 10,621,839 | $ | 4,846,030 | $ | 5,367,526 | $ | 1,433,877 | $ | 62,093,948 | |||||||||||||||||
- Effect of exchange rates changes | (957,162 | ) | (2,694,680 | ) | 537,752 | 782,941 | — | 529,610 | 73,654 | (1,727,885 | ) | ||||||||||||||||||||||
Balance, end of the year | $ | 10,706,281 | $ | 18,889,094 | $ | 7,115,211 | $ | 11,404,780 | $ | 4,846,030 | $ | 5,897,136 | $ | 1,507,531 | $ | 60,366,063 | |||||||||||||||||
Intangible assets with definite useful life | |||||||||||||||||||||||||||||||||
Intangible assets with definite useful life are comprised of customer lists and user base, non-compete agreements, acquired software licenses and other acquired intangible assets including developed technologies. Aggregate amortization expense for intangible assets totaled $781,074, $891,661 and $1,038,096 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||
For year ended 12/31/2014 | $ | 634,836 | |||||||||||||||||||||||||||||||
For year ended 12/31/2015 | 540,833 | ||||||||||||||||||||||||||||||||
For year ended 12/31/2016 | 177,826 | ||||||||||||||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||||||||||||||
$ | 1,353,495 | ||||||||||||||||||||||||||||||||
Segments
Segments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segments | ' | ||||||||||||||||||||||||
7 | Segments | ||||||||||||||||||||||||
Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed, the criteria used by management to evaluate the Company’s performance, the availability of separate financial information, and overall materiality considerations. | |||||||||||||||||||||||||
Segment reporting is based on geography as the main basis of segment breakdown to reflect the evaluation of the Company’s performance defined by the management. The Company’s segments include Brazil, Argentina, Mexico, Venezuela and other countries (such as Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama, Peru, Portugal, Uruguay and USA). | |||||||||||||||||||||||||
Direct contribution consists of net revenues from external customers less direct costs. Direct costs include specific costs of net revenues, sales and marketing expenses, and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, allowances for doubtful accounts, payroll, third party fees. All corporate related costs have been excluded from the Company’s direct contribution. | |||||||||||||||||||||||||
Expenses over which segment managers do not currently have discretionary control, such as certain technology and general and administrative costs are monitored by management through shared cost centers and are not evaluated in the measurement of segment performance. | |||||||||||||||||||||||||
The following tables summarize the financial performance of the Company’s reporting segments: | |||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 206,394,480 | $ | 122,123,347 | $ | 32,843,482 | $ | 84,572,485 | $ | 26,660,915 | $ | 472,594,709 | |||||||||||||
Direct costs | (119,422,924 | ) | (66,492,770 | ) | (18,558,010 | ) | (29,578,762 | ) | (12,339,112 | ) | (246,391,578 | ) | |||||||||||||
Direct contribution | 86,971,556 | 55,630,577 | 14,285,472 | 54,993,723 | 14,321,803 | 226,203,131 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (72,664,076 | ) | |||||||||||||||||||||||
Income from operations | 153,539,055 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 10,668,593 | ||||||||||||||||||||||||
Interest expense and other financial losses | (2,355,929 | ) | |||||||||||||||||||||||
Foreign currency gain | 1,258,476 | ||||||||||||||||||||||||
Other losses, net | (751 | ) | |||||||||||||||||||||||
Net income before income / asset tax expense | $ | 163,109,444 | |||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 179,639,592 | $ | 88,513,640 | $ | 26,987,130 | $ | 54,676,170 | $ | 23,784,962 | $ | 373,601,494 | |||||||||||||
Direct costs | (104,501,652 | ) | (41,841,587 | ) | (14,912,375 | ) | (17,768,989 | ) | (11,458,627 | ) | (190,483,230 | ) | |||||||||||||
Direct contribution | 75,137,940 | 46,672,053 | 12,074,755 | 36,907,181 | 12,326,335 | 183,118,264 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (53,460,393 | ) | |||||||||||||||||||||||
Income from operations | 129,657,871 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 11,877,375 | ||||||||||||||||||||||||
Interest expense and other financial losses | (1,138,379 | ) | |||||||||||||||||||||||
Foreign currency gain | 11,597 | ||||||||||||||||||||||||
Other losses, net | (190,938 | ) | |||||||||||||||||||||||
Net income before income / asset tax expense | 140,217,526 | ||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 165,905,789 | $ | 56,714,941 | $ | 22,275,213 | $ | 34,828,878 | $ | 19,206,804 | $ | 298,931,625 | |||||||||||||
Direct costs | (96,910,310 | ) | (23,463,871 | ) | (12,472,204 | ) | (13,287,279 | ) | (10,062,446 | ) | (156,196,110 | ) | |||||||||||||
Direct contribution | 68,995,479 | 33,251,070 | 9,803,009 | 21,541,599 | 9,144,358 | 142,735,515 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (42,963,350 | ) | |||||||||||||||||||||||
Income from operations | 99,772,165 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 9,905,829 | ||||||||||||||||||||||||
Interest expense and other financial losses | (3,648,733 | ) | |||||||||||||||||||||||
Foreign currency gain | 2,353,005 | ||||||||||||||||||||||||
Other income, net | 73,894 | ||||||||||||||||||||||||
Net income before income / asset tax expense | $ | 108,456,160 | |||||||||||||||||||||||
The following table summarizes the allocation of the long-lived tangible assets based on geography: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
US long-lived tangible assets | $ | 9,131,777 | $ | 6,782,077 | |||||||||||||||||||||
Other countries long-lived tangible assets | |||||||||||||||||||||||||
Argentina | 29,119,057 | 16,955,438 | |||||||||||||||||||||||
Brazil | 5,559,702 | 2,421,618 | |||||||||||||||||||||||
Mexico | 711,200 | 378,653 | |||||||||||||||||||||||
Venezuela | 83,655,816 | 8,455,816 | |||||||||||||||||||||||
Other countries | 3,194,357 | 2,732,620 | |||||||||||||||||||||||
$ | 122,240,132 | $ | 30,944,145 | ||||||||||||||||||||||
Total long-lived tangible assets | $ | 131,371,909 | $ | 37,726,222 | |||||||||||||||||||||
Office building acquisition agreement in Buenos Aires | |||||||||||||||||||||||||
In April 2013, the Company acquired three floors or 3,918 square meters in a new office building located in Buenos Aires for a total amount of $18.5 million plus VAT. The price was totally paid in Argentine pesos. | |||||||||||||||||||||||||
Office building acquisitions agreement in Caracas | |||||||||||||||||||||||||
In May 2013, the Company acquired 1,158 square meters, 13 parking spaces and 4 storage spaces, in an office building located in Caracas for a total amount of $20,002,357 or BF$126,014,852. The price has been paid in Bolivares Fuertes. | |||||||||||||||||||||||||
In addition, in October 2013, one of the Company’s Venezuelan subsidiaries acquired an office property totaling 1,367 square meters, in Caracas, Venezuela. The purchase price of BF$328,195,200, or approximately $52,094,476, was paid in local currency. The Company’s Venezuelan subsidiary funded a portion of the purchase price with its own funds and the balance of approximately BF$85,115,000, or $13,510,317, pursuant to an unsecured line of credit, which has a 12-month term, obtained from a Venezuelan bank at a fixed interest rate of 13% per annum. As of December 31, 2013, the balance of the credit amounted to approximately BF$80,115,000, or $12,716,667. | |||||||||||||||||||||||||
The following table summarizes the allocation of the goodwill and intangible assets based on geography: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
US intangible assets | $ | 10,503 | $ | 21,005 | |||||||||||||||||||||
Other countries goodwill and intangible assets | |||||||||||||||||||||||||
Argentina | 15,575,776 | 20,328,154 | |||||||||||||||||||||||
Brazil | 10,380,974 | 10,724,007 | |||||||||||||||||||||||
Mexico | 14,512,949 | 14,644,795 | |||||||||||||||||||||||
Venezuela | 6,913,604 | 6,595,117 | |||||||||||||||||||||||
Other countries | 14,298,997 | 15,332,850 | |||||||||||||||||||||||
$ | 61,682,300 | $ | 67,624,923 | ||||||||||||||||||||||
Total goodwill and intangible assets | $ | 61,692,803 | $ | 67,645,928 | |||||||||||||||||||||
Consolidated net revenues by similar products and services for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||
Consolidated Net Revenues | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Marketplace | $ | 331,338,080 | $ | 261,997,021 | $ | 217,932,815 | |||||||||||||||||||
Non-marketplace (*) | $ | 141,256,629 | $ | 111,604,473 | $ | 80,998,810 | |||||||||||||||||||
Total | $ | 472,594,709 | $ | 373,601,494 | $ | 298,931,625 | |||||||||||||||||||
(*) | Includes, among other things, Ad Sales, Real Estate, Motors, Financing Fees, Off-platform Payment Fees and other ancillary services. |
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurement of Assets and Liabilities | ' | ||||||||||||||||||||||||
8 | Fair value measurement of assets and liabilities | ||||||||||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Quoted Prices in | Quoted Prices in | ||||||||||||||||||||||||
Balances as of | active markets for | Significant other | Balances as of | active markets for | Significant other | ||||||||||||||||||||
December 31, | identical Assets | observable inputs | December 31, | identical Assets | observable inputs | ||||||||||||||||||||
Description | 2013 | (Level 1) | (Level 2) | 2012 | (Level 1) | (Level 2) | |||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Money Market Funds | $ | 19,630,109 | $ | 19,630,109 | $ | — | $ | 23,033,357 | $ | 23,033,357 | $ | — | |||||||||||||
Corporate Debt Securities | 88,648 | 88,648 | — | — | — | — | |||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Asset backed securities | — | — | — | 18,826,833 | — | 18,826,833 | |||||||||||||||||||
Sovereign Debt Securities | 30,395,890 | 30,395,890 | — | 21,453,141 | 21,453,141 | — | |||||||||||||||||||
Corporate Debt Securities | 25,239,905 | 19,110,709 | 6,129,196 | 51,991,294 | 51,991,294 | — | |||||||||||||||||||
Total Financial Assets | $ | 75,354,552 | $ | 69,225,356 | $ | 6,129,196 | $ | 115,304,625 | $ | 96,477,792 | $ | 18,826,833 | |||||||||||||
As of December 31, 2013, the Company’s financial assets valued at fair value consisted of assets valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); and ii) Level 2 inputs, which are obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date. As of December 31, 2013, the Company did not have any assets without market values that would require a high level of judgment to determine fair value (Level 3). | |||||||||||||||||||||||||
The unrealized net gains or loss on short term and long term investments are reported as a component of other comprehensive income. The Company does not anticipate any significant realized losses associated with those investments in excess of the Company’s historical cost. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value because of its short term maturity. These assets and liabilities included cash and cash equivalents (excluding money markets funds), accounts receivables, credit card receivables, funds payable to customers, other receivables, other assets, accounts payables, social security payables, taxes payables, loans payable and provisions and other liabilities. | |||||||||||||||||||||||||
The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Balances as of | Significant other | Balances as of | Significant other | ||||||||||||||||||||||
December 31, | observable inputs | December 31, | observable inputs | ||||||||||||||||||||||
2013 | (Level 2) | 2012 | (Level 2) | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Time Deposits | $ | 66,677,156 | 66,677,156 | $ | 87,379,121 | 87,379,121 | |||||||||||||||||||
Accounts receivable | 25,884,260 | 25,884,260 | 19,837,022 | 19,837,022 | |||||||||||||||||||||
Credit Cards receivable | 52,045,851 | 52,045,851 | 35,816,506 | 35,816,506 | |||||||||||||||||||||
Prepaid expenses | 3,836,081 | 3,836,081 | 2,080,079 | 2,080,079 | |||||||||||||||||||||
Other assets | 35,888,029 | 35,888,029 | 17,521,338 | 17,521,338 | |||||||||||||||||||||
Total Assets | $ | 184,331,377 | $ | 184,331,377 | $ | 162,634,066 | $ | 162,634,066 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Accounts and funds payable | $ | 34,405,333 | $ | 34,405,333 | $ | 23,976,613 | $ | 23,976,613 | |||||||||||||||||
Funds payable to customers | 129,038,663 | 129,038,663 | 101,472,662 | 101,472,662 | |||||||||||||||||||||
Salaries and social security payable | 15,863,028 | 15,863,028 | 14,994,186 | 14,994,186 | |||||||||||||||||||||
Tax payable | 17,854,110 | 17,854,110 | 19,210,568 | 19,210,568 | |||||||||||||||||||||
Dividends payable | 6,313,869 | 6,313,869 | 4,812,396 | 4,812,396 | |||||||||||||||||||||
Loans payable and other financial liabilities | 15,860,642 | 15,860,642 | 144,063 | 144,063 | |||||||||||||||||||||
Other liabilities | 3,699,109 | 3,699,109 | 2,837,150 | 2,837,150 | |||||||||||||||||||||
Total Liabilities | $ | 223,034,754 | $ | 223,034,754 | $ | 167,447,638 | $ | 167,447,638 | |||||||||||||||||
In addition, as of December 31, 2013 and 2012, the Company had $66,677,156 and $87,379,121 of short-term investments, respectively, which consisted of time deposits. Those investments are accounted for at amortized cost which, as of December 31, 2013 and 2012, approximates their fair values. | |||||||||||||||||||||||||
For the years ended December 31, 2013 and 2012, the Company held no direct investments in auction rate securities, collateralized debt obligations or structured investment vehicles. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company does not have any non-financial assets or liabilities measured at fair value. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated Fair | ||||||||||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses (1) | ||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||
Money Market Funds | $ | 19,631,550 | $ | 2,619 | $ | (4,060 | ) | $ | 19,630,109 | ||||||||||||||||
Corporate Debt Securities | 88,640 | 8 | — | 88,648 | |||||||||||||||||||||
Total Cash and cash equivalents | $ | 19,720,190 | $ | 2,627 | $ | (4,060 | ) | $ | 19,718,757 | ||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 5,518,577 | $ | 1,616 | $ | — | $ | 5,520,193 | |||||||||||||||||
Corporate Debt Securities | 4,393,594 | 2,271 | — | 4,395,865 | |||||||||||||||||||||
Total Short-term investments | $ | 9,912,171 | $ | 3,887 | $ | — | $ | 9,916,058 | |||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 24,881,440 | $ | 483 | $ | (6,226 | ) | $ | 24,875,697 | ||||||||||||||||
Corporate Debt Securities | 20,804,125 | 59,437 | (19,522 | ) | 20,844,040 | ||||||||||||||||||||
Total Long-term investments | $ | 45,685,565 | $ | 59,920 | $ | (25,748 | ) | $ | 45,719,737 | ||||||||||||||||
Total | $ | 75,317,926 | $ | 66,434 | $ | (29,808 | ) | $ | 75,354,552 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Estimated Fair | ||||||||||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||
Money Market Funds | $ | 23,030,970 | $ | 3,400 | $ | (1,013 | ) | $ | 23,033,357 | ||||||||||||||||
Total Cash and cash equivalents | $ | 23,030,970 | $ | 3,400 | $ | (1,013 | ) | $ | 23,033,357 | ||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Corporate Debt Securities | $ | 6,314,939 | $ | 1,032 | $ | (287 | ) | $ | 6,315,684 | ||||||||||||||||
Total Short-term investments | $ | 6,314,939 | $ | 1,032 | $ | (287 | ) | $ | 6,315,684 | ||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 21,153,227 | $ | 299,914 | $ | — | $ | 21,453,141 | |||||||||||||||||
Corporate Debt Securities | 45,089,831 | 630,807 | (45,028 | ) | 45,675,610 | ||||||||||||||||||||
Asset Backed Securities (2) | 18,568,996 | 301,544 | (43,707 | ) | 18,826,833 | ||||||||||||||||||||
Total Long-term investments | $ | 84,812,054 | $ | 1,232,265 | $ | (88,735 | ) | $ | 85,955,584 | ||||||||||||||||
Total | $ | 114,157,963 | $ | 1,236,697 | $ | (90,035 | ) | $ | 115,304,625 | ||||||||||||||||
-1 | Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
-2 | Asset backed securities have investment grade credit ratings. | ||||||||||||||||||||||||
The material portion of the Sovereign Debt Securities is U.S. Treasury Notes with no significant risk associated. | |||||||||||||||||||||||||
As of December 31, 2013, the estimated fair values of money market funds, short-term and long-term investments classified by its effective maturities are as follows: | |||||||||||||||||||||||||
One year or less | $ | 29,634,815 | |||||||||||||||||||||||
One year to two years | 18,959,159 | ||||||||||||||||||||||||
Two years to three years | 13,126,825 | ||||||||||||||||||||||||
Three years to four years | 9,266,503 | ||||||||||||||||||||||||
Four years to five years | 4,367,250 | ||||||||||||||||||||||||
Total | $ | 75,354,552 | |||||||||||||||||||||||
Common_Stock
Common Stock | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Common Stock | ' | |
9 | Common stock | |
Authorized, issued and outstanding shares | ||
As of December 31, 2013, 2012 and 2011, as stated in the Company’s Fourth Amended and Restated Certificate of Incorporation (the “Fourth Amended Certificate of Incorporation”), the Company has authorized 110,000,000 shares of Common Stock, par value $0.001 per share (“Common Stock”). | ||
As of December 31, 2013 and 2012, there were 44,153,473 and 44,150,920 shares of common stock issued and outstanding with a par value of $0.001 per share, respectively. | ||
Voting rights | ||
Each outstanding share of common stock, is entitled to one vote on all matters submitted to a vote of holders of common stock, except for stockholders that beneficially own more than 20% of the shares of the outstanding common stock, in which case the board of directors (the “Board”) may declare that any shares of stock above such 20% do not have voting rights. The holders of common stock do not have cumulative voting rights in the election of directors. |
Mandatorily_Redeemable_Convert
Mandatorily Redeemable Convertible Preferred Stock | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Mandatorily Redeemable Convertible Preferred Stock | ' | |
10 | Mandatorily redeemable convertible preferred stock | |
Pursuant to the Fourth Amended Certificate of Incorporation, the Company authorized preferred stock consisting of 40,000,000 shares of preferred stock, par value $0.001 per share. As of December 31, 2013, 2012 and 2011, the Company has no preferred stock subscribed and or issued. |
Compensation_Plan_for_Outside_
Compensation Plan for Outside Directors | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation Related Costs [Abstract] | ' | ||||||||||||
Compensation Plan for Outside Directors | ' | ||||||||||||
11 | Compensation Plan for Outside Directors | ||||||||||||
The Company compensates its outside directors for their annual services provided through a cash payment, and from time to time through the issuance of equity awards, as follows: | |||||||||||||
On June 25, 2010, the board of directors of the Company (the “Board”), upon the recommendation of the Compensation Committee of the Board, adopted The MercadoLibre, Inc. 2010 Director Compensation Program (the “Plan”) for outside directors which was a three-year plan effective as from June 10, 2010. Under the terms of the Plan, each outside director received an annual fee for services provided to the Company for the periods from June 10, 2010 through June 9, 2011, from June 10, 2011 through June 9, 2012 and from June 10, 2012 through June 9, 2013, payable as follows: (a) a Non-Adjustable Board Service Award which means a fixed cash payment of $32,436, $37,703 and $43,826, respectively and (b) an Adjustable Award which means a fixed cash amount of $43,248, $50,271 and $58,435, respectively, multiplied by the average closing sale price of the Company’s share during the last 30-trading day period as of the date of the next Annual Meeting divided by the average closing sale price of the Company’s share during the last 30-trading day period as of the date of the prior year’s Annual Meeting. The Plan also included a Non-Adjustable Chairman Service Award for services provided to the Company for such periods. Under the terms of the Plan, the Chairman of the Company’s Audit Committee, of the Compensation Committee, of the Nominating and Corporate Governance Committee and the lead independent director of the Company are entitled to receive annual cash compensation in addition to the existing director compensation for the period from June 10, 2010 through June 9, 2011 amounting to $16,218, $12,974, $5,406 and $10,812, respectively. For the period from June 10, 2011 through June 9, 2012 such annual cash compensation amounted to $18,852, $15,081, $6,284 and $12,568, respectively. For the period from June 10, 2012 through June 9, 2013 such annual compensation amounted to $21,913, $17,531, $7,304 and $14,609, respectively. | |||||||||||||
On September 27, 2013, the Board, upon the recommendation of the compensation committee of the Board, adopted a new director compensation program (the “New Director Compensation Program”) that sets compensation for the Company’s outside directors for the period of June 2013 to June 2016. The New Director Compensation Program, which became effective as of June 2013, provides that each outside director of the Company receives an annual fee for Board services, comprised of a non-adjustable Board service award and an adjustable Board service award. The non-adjustable Board service award consists of a fixed cash payment of $50,000. The adjustable Board service award consists of a fixed cash amount of $70,000 multiplied by the quotient of (a) the average closing sale price of the Company’s share on the NASDAQ Global Market during the 30-trading day period preceding the Annual Meeting of Stockholders to be held during the respective compensation period divided by (b) the average closing sale price of the Company’s share on the NASDAQ Global Market during the 30-trading day period preceding the prior Annual Meeting of Stockholders. The New Director Compensation Program also includes a non-adjustable chair service award for committee services from June 2013 to June 2016. Under the terms of the New Director Compensation Program, the chair of each of the audit committee, the compensation committee and the nominating and corporate governance committee and the lead independent director are entitled to receive annual cash compensation in addition to existing director compensation in the amount of $21,913, $17,531, $7,304 and $14,609, respectively. | |||||||||||||
The following table summarizes the total accrued compensation cost related to outside Directors, included in operating expenses in the accompanying consolidated statement of income, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Chairman Fee | $ | 55,858 | $ | 57,680 | $ | 49,471 | |||||||
Adjustable Award | 575,242 | 282,703 | 344,427 | ||||||||||
Non-adjustable Award | 322,538 | 242,179 | 176,682 | ||||||||||
$ | 953,638 | $ | 582,562 | $ | 570,580 | ||||||||
Stock_Option_Plan_and_Restrict
Stock Option Plan and Restricted Shares | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Option Plan and Restricted Shares | ' | ||||||||||||||||
12 | Stock option plan and restricted shares | ||||||||||||||||
Pursuant to the “Amended and Restated 1999 Stock Option and Restricted Stock Plan”, (the “Plan”) the Company has reserved 4,732,400 shares of Common Stock for issuance under the Plan. | |||||||||||||||||
On June 10, 2009, the Annual Shareholders’ Meeting approved the adoption of the 2009 Equity Compensation Plan, which contains terms substantially similar to the terms of the “1999 Stock Option and Restricted Stock Plan” scheduled to expire in November 2009. The 2009 plan has reserved for issuance 294,529 shares of the Company’s common stock under the 1999 plan. As of December 31, 2013, there are 260,556 shares available for grant under the 1999 plan. | |||||||||||||||||
Stock options | |||||||||||||||||
Stock option awards granted under the Plan are at the discretion of the Company’s board of directors and may be in the form of either incentive or nonqualified stock options. As of December 31, 2013, there are no outstanding options granted under the Plan. | |||||||||||||||||
There were no stock-based compensation expense related to stock options for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Stock-based compensation expense was based on the estimated portion of the awards that are expected to vest. As of December 31, 2013, total stock-based compensation is vested. | |||||||||||||||||
There was no granting during the period from January 1, 2007 to December 31, 2013. | |||||||||||||||||
Stock option activity is as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted- | Weighted- | ||||||||||||||||
Number of | average | Number of | average | ||||||||||||||
options | exercise price | options | exercise price | ||||||||||||||
Outstanding, beginning of year | 2,013 | $ | 1.5 | 5,813 | $ | 1.5 | |||||||||||
Exercised | (2,013 | ) | 1.5 | (3,800 | ) | 1.5 | |||||||||||
Outstanding, end of the year | — | — | 2,013 | 1.5 | |||||||||||||
Exercisable, end of the year | — | $ | — | 2,013 | 1.5 | ||||||||||||
The following details the outstanding options at December 31, 2012 (no options were outstanding as of December 31, 2013): | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||
Weighted-average | |||||||||||||||||
remaining | |||||||||||||||||
Exercise | Number of | contractual | Number of | ||||||||||||||
price | options | life (years) | options | ||||||||||||||
$1.50 | 2,013 | 1.5 | 2,013 | ||||||||||||||
2,013 | 1.5 | 2,013 | |||||||||||||||
Weighted average Exercise Price | |||||||||||||||||
- Options outstanding | $ | 1.50 | |||||||||||||||
- Options excercisable | $ | 1.50 | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Aggregate intrinsic value | |||||||||||||||||
- Options outstanding | $ | — | $ | 155,102 | |||||||||||||
- Options exercisable | $ | — | $ | 155,102 | |||||||||||||
As of December 31, 2012, the aggregate intrinsic value represents the difference between the Company’s closing stock price of $78.55, and the exercise price multiplied by the number of options (outstanding and exercisable). |
Management_Incentive_Bonus_Pla
Management Incentive Bonus Plan | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Postemployment Benefits [Abstract] | ' | |||
Management Incentive Bonus Plan | ' | |||
13 | Management incentive bonus plan | |||
In September 2001, the Company implemented the 2001 Management Incentive Bonus Plan (the “Incentive Plan”) to provide incentives to, and align the interests of, senior management with the Company’s shareholders. As established in the Incentive Plan, the Company’s Chief Executive Officer, with the consent of the board of directors, made the initial determination as to the executives entitled to the benefits under the plan (the “Participants”) and the amounts of participation (the “Participation Percentages”). The board of directors administers the Incentive Plan. | ||||
Pursuant to the Incentive Plan, if the Company is sold, the Participants are entitled to receive a “sale bonus” and a “stay bonus” as follows: | ||||
• | If the purchase price is equal or greater than $20,000,000, then Participants shall be entitled to receive i) a sale bonus equal to 5.5% of the purchase price and ii) a stay bonus equal to 7.1% of the purchase price; provided, however, that in no event shall the amount paid or payable by the purchaser considered for the Incentive Plan calculation exceed $78,335,000. Each Participant shall participate on these bonuses based on its Participation Percentage. | |||
• | If the purchase price is less than $20,000,000, then Participants shall be entitled to receive a stay bonus equal to 7.1% of the purchase price. Each Participant shall participate on this stay bonus based on its Participation Percentage. | |||
As the consummation of the sale is not considered probable, no provision has been recognized at December 31, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
14 | Income taxes | ||||||||||||
The components of pretax income in consolidated companies for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (1,641,203 | ) | $ | (753,531 | ) | $ | (680,845 | ) | ||||
Brazil | 61,573,972 | 52,460,902 | 52,457,909 | ||||||||||
Argentina | 46,438,235 | 40,466,354 | 23,855,329 | ||||||||||
Venezuela | 36,855,421 | 29,620,800 | 16,839,295 | ||||||||||
Mexico | 9,490,012 | 7,320,041 | 6,554,066 | ||||||||||
Other Countries | 10,393,007 | 11,102,960 | 9,430,406 | ||||||||||
$ | 163,109,444 | $ | 140,217,526 | $ | 108,456,160 | ||||||||
Income / asset tax is composed of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 49,488,472 | $ | 39,371,170 | $ | 29,848,193 | |||||||
Deferred: | |||||||||||||
Federal | 799,166 | 998,536 | 2,114,486 | ||||||||||
Foreign | (4,913,379 | ) | (1,586,024 | ) | (340,950 | ) | |||||||
(4,114,213 | ) | (587,488 | ) | 1,773,536 | |||||||||
Asset Tax: | 45,374,259 | 38,783,682 | 31,621,729 | ||||||||||
Foreign | 208,922 | 87,697 | 38,092 | ||||||||||
Income / asset tax expense | $ | 45,583,181 | $ | 38,871,379 | $ | 31,659,821 | |||||||
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 2013, 2012 and 2011 to income before taxes: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income before income tax | $ | 163,109,444 | $ | 140,217,526 | $ | 108,456,160 | |||||||
Weighted average income tax rate | 34 | % | 33 | % | 33 | % | |||||||
Income tax expense at blended tax rate | $ | 55,241,195 | $ | 46,593,938 | $ | 35,727,808 | |||||||
Permanent differences: | |||||||||||||
Non-deductible expenses | 1,777,180 | 1,657,662 | 2,528,463 | ||||||||||
Dividend distributions | 1,414,915 | 847,798 | 2,132,063 | ||||||||||
Non-taxable income (*) | (12,321,790 | ) | (9,852,468 | ) | (6,497,097 | ) | |||||||
Currency translation | (1,552,169 | ) | (1,213,340 | ) | (916,166 | ) | |||||||
Change in valuation allowance | 736,910 | 572,790 | (1,604,230 | ) | |||||||||
Business Combination | 34,706 | — | — | ||||||||||
True up | 43,312 | 177,302 | 250,888 | ||||||||||
Income tax expense | $ | 45,374,259 | $ | 38,783,682 | $ | 31,621,729 | |||||||
(*) | Includes Argentine Tax holiday described in Note 2 “Income and asset tax” | ||||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The following table summarizes the composition of deferred tax assets and liabilities for the years ended December 31, 2013 and 2012: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Allowance for doubtful accounts | $ | 8,210,283 | $ | 5,894,658 | |||||||||
Property and equipment, net | 147,263 | 145,532 | |||||||||||
Accounts payable and accrued expenses | 2,014,026 | 390,655 | |||||||||||
Payroll and social security payable | 3,960,481 | 2,581,787 | |||||||||||
Other liabilities | — | 654,535 | |||||||||||
Foreign exchange effect | 22,714 | — | |||||||||||
Customer lists | 47,929 | 54,943 | |||||||||||
Taxes payable | 1,058,659 | 1,267,713 | |||||||||||
Provisions | 3,553,360 | 3,071,331 | |||||||||||
Foreign tax credit | 668,659 | 2,414,440 | |||||||||||
Tax loss carryforwards | 2,451,524 | 3,653,373 | |||||||||||
Total deferred tax assets | 22,134,898 | 20,128,967 | |||||||||||
Valuation allowance | (3,089,113 | ) | (3,226,177 | ) | |||||||||
Total deferred tax assets, net | 19,045,785 | 16,902,790 | |||||||||||
Deferred tax liabilities | |||||||||||||
Unrealized net gains on investments | (10,767 | ) | (392,048 | ) | |||||||||
Property and equipment, net | (2,883,458 | ) | (3,145,196 | ) | |||||||||
Customer lists | (45,963 | ) | (104,686 | ) | |||||||||
Non compete agreement | (26,019 | ) | (54,391 | ) | |||||||||
Outside basis dividends | (668,659 | ) | (3,538,970 | ) | |||||||||
Trademarks | (1,693,256 | ) | (1,723,133 | ) | |||||||||
Other liabilities | (11,237 | ) | — | ||||||||||
Foreign exchange effect | — | (16,866 | ) | ||||||||||
Total deferred tax liabilities | (5,339,359 | ) | (8,975,290 | ) | |||||||||
Net deferred tax assets | $ | 13,706,426 | $ | 7,927,500 | |||||||||
The total amount of $13,706,426 for the year ended December 31, 2013, is disclosed in the consolidated balance sheet as current asset, non-current asset and non-current liability amounting to $16,030,880, $3,014,905 and $5,339,359, respectively. | |||||||||||||
The total amount of $7,927,500 for the year ended December 31, 2012, is disclosed in the consolidated balance sheet as current asset, non-current asset and non-current liability amounting to $11,040,543, $5,862,247 and $8,975,290, respectively. | |||||||||||||
As of December 31, 2013, consolidated loss carryforwards for income tax purposes were $7,666,353. If not utilized, tax loss carryforwards will begin to expire as follows: | |||||||||||||
2014 | $ | 3,622 | |||||||||||
2015 | 843,246 | ||||||||||||
2016 | 373,710 | ||||||||||||
2017 | — | ||||||||||||
Thereafter | 1,859,185 | ||||||||||||
Without due dates | 4,586,590 | ||||||||||||
Total | $ | 7,666,353 | |||||||||||
At the applicable tax rates, the above loss carryforwards amount to a tax loss carryforward of $2,451,524 that the Company estimates will be starting to use in 2014. | |||||||||||||
During the year ended December 31, 2013, the Company reduced $156,851 related to the valuation allowance of certain subsidiaries, acquired in 2008. In addition, during that same year, the Company increased the valuation allowance relating to Argentine operation by $290,561 as a consequence of the assessment of the recoverability of certain deferred tax assets in such jurisdiction. | |||||||||||||
During the year ended December 31, 2012, the Company reduced $240,653 related to valuation allowance of certain subsidiaries, acquired in 2008. In addition, during that same year, the Company increased the valuation allowance relating to Argentine operation by $581,233 as a consequence of the assessment of the recoverability of certain deferred tax assets in such jurisdiction. | |||||||||||||
During the year ended December 31, 2011, the Company reversed $1,955,723 related to certain foreign and domestic valuation allowances based on the assessment that it was more likely than not that the deferred tax asset would be realized. | |||||||||||||
The Company has not considered $ 155.3 million of the non-U.S. subsidiaries’ undistributed earnings as of December 31, 2013 in calculating deferred income taxes. In determining the amount of non-U.S. subsidiaries undistributed earnings for that calculation, the Company does not consider a portion of the non-U.S. subsidiaries earnings as of December 31, 2013 to be subject to U.S. federal income tax purposes because such earnings are intended to be indefinitely reinvested in its international operations and potential acquisitions related to those operations. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. income taxes if such distribution exceeds available foreign tax credits. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. The Company does not expect a material impact in any repatriation of undistributed earnings of foreign subsidiaries on its operations since the taxable domestic gains generated by any dividend distributions will be mostly offset with foreign tax credits that arise from income tax paid in its foreign operations, which the Company is allowed to compute for domestic income tax purposes. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
15 | Commitments and Contingencies | ||||
Litigation and Other Legal Matters | |||||
The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers probable that future costs will be incurred and such costs can be reasonably estimated. The proceeding-related reserve is based on developments to date and historical information related to actions filed against the Company. As of December 31, 2013, the Company had established reserves for proceeding-related contingencies of $3.330.108 to cover legal actions against the Company in which its Management has assessed the likelihood of a final adverse outcome as probable. In addition, as of December 31, 2013 the Company and its subsidiaries are subject to certain legal actions considered by the Company’s management and its legal counsels to be reasonably possible for an aggregate amount up to $4.013.435. | |||||
No loss amount has been accrued for such reasonably possible legal actions of which most significant (individually or in the aggregate) are described below. | |||||
As of December 31, 2013, 624 legal actions were pending in the Brazilian ordinary courts. In addition, as of December 31, 2013, there were 3,149 cases still pending in Brazilian consumer courts. Filing and pursuing of an action before Brazilian consumer courts do not require the assistance of a lawyer. In most of the cases filed against the Company, the plaintiffs asserted that the Company was responsible for fraud committed against them, or responsible for damages suffered when purchasing an item on the Company’s website, when using MercadoPago, or when the Company invoiced them. | |||||
On March 17, 2006, Vintage Denim Ltda., or Vintage, sued the Company’s Brazilian subsidiaries MercadoLivre.com Atividades de Internet Ltda. and eBazar.com.br Ltda. in the 29th Civil Court of the County of São Paulo, State of São Paulo, Brazil. Vintage requested a preliminary injunction alleging that these subsidiaries were infringing Diesel trademarks and their right of exclusive distribution as a result of sellers listing allegedly counterfeit and original imported Diesel branded clothing through the Brazilian page of the Company’s website, based on Brazilian Industrial Property Law (Law 9,279/96). Vintage sought an order enjoining the sale of Diesel-branded clothing on the Company’s platform. A preliminary injunction was granted on April 11, 2006 to prohibit the offer of Diesel-branded products, and a fine for non-compliance was imposed in the approximate amount of $5,300 per defendant per day of non-compliance. The Company appealed that fine and obtained its suspension in 2006. Because the appeal of the preliminary injunction failed, in March of 2007, Vintage presented petitions alleging the Company’s non-compliance with the preliminary injunction granted to Vintage and requested a fine of approximately $3.5 million against the Company’s subsidiaries, which represents approximately $5,300 per defendant per day of alleged non-compliance since April 2006. In July 2007, the judge ordered the payment of the fine mandated in the preliminary injunction, without specifying the amount. In September 2007, the judge decided that (i) the Brazilian subsidiaries were not responsible for alleged infringement of intellectual property rights by its users; and that (ii) the plaintiffs did not prove the alleged infringement of its intellectual property rights. However, the decision maintained the injunction until such ruling is non-appealable. The plaintiff appealed the judge’s ruling regarding the subsidiary’s non-responsibility and the Company appealed the decision that maintained the preliminary injunction. On July 26, 2011 the State | |||||
Court of Appeals of the State of São Paulo confirmed the judge’s ruling regarding our subsidiary’s non-responsibility. Vintage appealed the decision of the State Court of Appeals of the State of São Paulo to the Brazilian Federal Superior Court of Justice. As of December 31, 2013, the decision on the appeal regarding our subsidiary’s non-responsibility was still pending on the Superior Court, therefore, the preliminary injunction is still enforceable. In the opinion of the Company and its legal counsel, as of December 31, 2013, the amount of $3.5 million was not reserved since, $3.1 million was considered remote and $0.4 million was considered reasonably possible but not probable. | |||||
On August 25, 2010, Citizen Watch do Brasil S/A, or Citizen, sued Brazilian subsidiaries in the 31th Central Civil Court State of São Paulo, Brazil. Citizen alleged that the Brazilian subsidiaries were infringing Citizen’s trademarks as a result of users selling allegedly counterfeit Citizen watches through the Brazilian page of the Brazilian subsidiaries’ website. Citizen sought an order enjoining the sale of Citizen-branded watches on the Brazilian subsidiaries’ Marketplace with a $6,000 daily non-compliance penalty. On September 23, 2010, the Brazilian subsidiaries were summoned of an injunction granted to prohibit the offer of Citizen products on its platform, but the penalty was established at $6,000 per day. On September 26, 2010, the Brazilian subsidiaries presented their defense and appealed the decision of the injunction relief to the State Court of Appeals of São Paulo on September 27, 2010. On October 22, 2010 the injunction granted to Citizen was suspended. On March 23, 2011, the Company’s appeal regarding the injunction granted to Citizen was ruled in favor of the Brazilian subsidiaries. On May 4, 2011, Citizen presented a motion to clarify the decision but it was dismissed on March 14, 2012. On May 28, 2012, the Plaintiff filed a special recourse related to the injunction relief to the State Court of Appeals, and the Brazilian subsidiaries presented their defense on August 16, 2012 which was not admitted. In September 2012, the Plaintiff filed a legal action against the Brazilian subsidiaries with same arguments alleged in the injunction request and seeking for compensatory and statutory damages and defenses were presented on March 20, 2013. On January 9, 2013, Citizen presented a motion to request the appeal to be ruled by the Brazilian Superior Court of Justice (Superior Tribunal de Justiça). On March 1, 2013, the Company presented its response to that appeal. On August 27, 2013, the Brazilian Superior Court of Justice ruled against Citizen’s appeal. The Superior Court of Justice ruled that the Brazilian subsidiaries were not responsible for alleged infringement of intellectual property rights by its users and that they should comply with the “notice and take down” procedure it already have in place. On October 4, 2013, Citizen presented a motion to clarify mentioned decision issued by the Brazilian Superior Court of Justice and such motion was denied on November 11, 2013. Citizen then filed, on November 25, 2013, an Extraordinary Appeal aiming the decision rendered by Brazilian Superior Court of Justice to be reviewed by Brazilian Federal Supreme Court. The Brazilian subsidiaries must present its responses to Citizen’s Extraordinary Appeal in the next few weeks. As of December 31, 2013 the lower court’s ruling was still pending. In the opinion of the Brazilian subsidiaries’ management and its legal counsel the risk of loss is reasonably possible but not probable. | |||||
State of São Paulo Fraud Claim | |||||
On June 12, 2007, a state prosecutor of the State of São Paulo, Brazil presented a claim against the Company’s Brazilian subsidiary. The state prosecutor alleges that the Brazilian subsidiary should be held liable for any fraud committed by sellers on the Brazilian version of the Company’s website, or responsible for damages suffered by buyers when purchasing an item on the Brazilian version of the MercadoLibre website. On June 26, 2009, the Lower Court Judge ruled in favor of the State of São Paulo prosecutor, declaring that the Brazilian subsidiary shall be held joint and severally liable for fraud committed by sellers and damages suffered by buyers when using the website, and ordering the Brazilian subsidiary to remove from the Terms of Service of the Brazilian website any provision limiting the Company’s responsibility, with a penalty of approximately $2,500 per day of non-compliance. On June 29, 2009 the Company presented a recourse to the lower court, which was not granted. On September 29, 2009 the Company presented an appeal and requested to suspend the effects of the ruling issued by the lower court until the appeal is decided by State Court of Appeals, which request was granted on December 1, 2009. As of December 31, 2013, the decision on the appeal was still pending. In the opinion of the Company’s management and its legal counsel the risk of loss is reasonably possible. | |||||
City of São Paulo Tax Claim | |||||
In 2007 São Paulo tax authorities have asserted taxes and fines against our Brazilian subsidiary relating to the period from 2005 to 2007 in an approximate amount of $5.9 million according to the exchange rate in effect at that time. In 2007, the Company presented administrative defenses against the authorities’ claim and the tax authorities ruled against the Brazilian subsidiary. In 2009, the Company presented an appeal to the Conselho Municipal de Tributos or São Paulo Municipal Council of Taxes which reduced the fine. On February 11, 2011, the Company appealed this decision to the Câmaras Reunidas do Egrégio Conselho Municipal de Tributos or Superior Chamber of the São Paulo Municipal Council of Taxes which affirmed the reduction of the fine. As of the date of these financial statements, the total amount of the claim is approximately $5.8 million including surcharges and interest. With this decision the administrative stage is finished. On August 15, 2011, the Company made a deposit in court of approximately R$ 9.5 million, which including accrued interests amounted to R$ 10.4 million or $4.4 million, according to the exchange rate at December 31, 2013, and filed a lawsuit in 8th Public Treasury Court of the County of São Paulo, State of São Paulo, Brazil, to contest the taxes and fines asserted by the Tax Authorities. As of December 31, 2013, the 8th Public Treasury Court of the County of São Paulo ruling was still pending. | |||||
In September 2012 São Paulo tax authorities have asserted taxes and fines against our Brazilian subsidiary related to our Brazilian subsidiary’s activities in São Paulo for the period from 2007 through 2010. On July 27, 2012, the Company presented administrative defenses against the authorities’ claim. On February 2, 2013, São Paulo tax authorities ruled against the Brazilian subsidiary maintaining claimed taxes and fines. On March 4, 2013, the Company presented an appeal to the Conselho Municipal de Tributos or São Paulo Municipal Council of Taxes. On August 23, 2013, the Câmaras Reunidas do Egrégio Conselho Municipal de Tributos or Superior Chamber of the São Paulo Municipal Council of Taxes ruled against the Company´s appeal. On September 5, 2013, the Company presented a special appeal to the Superior Chamber of the São Paulo Municipal Council of Taxes. On October 18, 2013, the mentioned appeal was denied to our Brazilian subsidiary and confirmed the fines. With this decision the administrative stage is finished. On November 13, 2013, the Company filed a lawsuit before the 9th Treasury Court of the City of São Paulo, State of São Paulo, Brazil, to contest the taxes and fines asserted by the Tax Authorities. On November 14, 2013, the Company made a deposit in court related to the lawsuit filed, of approximately R$ 41 million or $17.5 million, according to the exchange rate at December 31, 2013. On January 28, 2014 São Paulo Municipal Council was summoned and as of the date of these financial statements São Paulo Municipal Council has not presented its defense. | |||||
In January 2005 the Brazilian subsidiary moved its operations to Santana de Parnaíba City, Brazil and began paying taxes to that jurisdiction and therefore the Company believes that has strong defenses to the claims of the São Paulo authorities with respect to these periods. The Company’s management and its legal counsel believe that the risk of loss is remote, and as a result, has not reserved any provisions for these claims. | |||||
The collection date of the legal deposits cannot be determined since it will depend on the actual duration of the related legal proceedings. | |||||
Brazilian Federal Tax Claims | |||||
On September 2, 2011, the Brazilian Federal tax authority has asserted taxes and fines against our Brazilian subsidiary relating to the income tax for the 2006 period in an approximate amount of R$5.2 million or $2.2 million, according to the exchange rate at December 31, 2013. On September 30, 2011 the Company presented administrative defenses against the authorities’ claim. On August 24, 2012 the Company presented its appeal to the Board of Tax Appeals (CARF - Conselho Administrativo de Recursos Fiscais) against the tax authorities’ claims. On December 5, 2013, the Board of Tax Appeals ruled against MercadoLivre’s appeal. The decision is yet to be published, but it will be subject to an appeal to the Superior Administrative Court of Tax Appeals. The Company’s management and its legal counsel believe that the tax position adopted is more likely than not, based on the technical merits of the tax position, that it will be sustained, and as a result, MercadoLivre has not recorded any liability for this claim. | |||||
State of Rio de Janeiro Customer Service Level Claim | |||||
On August 19, 2011, a state prosecutor of the State of Rio de Janeiro, Brazil presented a claim against the Company’s Brazilian subsidiary. The state prosecutor alleges that the Brazilian subsidiary should improve our customer service level and provide (among other things) a telephone number for customer support and requested an injunction against our Brazilian subsidiary. On October 22, 2012, a lower court judges ruled in favor of the Company and dismissed the claim against the Company. The Public Prosecutor appealed the decision and the Company presented its defense on December 12, 2012. On April 9, 2013, the State Court of Appeals ruled in favor of the Company confirming the dismissal of the claim. On May 28, 2013 the decision was appealed by the state prosecutor to the Brazilian Superior Court of Justice and the Company presented its response on July 2, 2013. As of December 31, 2013, the Brazilian Superior Court of Justice ruling was still pending. In the opinion of the Company’s management and its legal counsel the risk of loss is remote. | |||||
State of Rio Grande do Sul Service Claim | |||||
On November 20, 2013, a state prosecutor of the County of Porto Alegre, State of Rio Grande do Sul, Brazil, presented a claim against our Brazilian subsidiary before the 15th Civil Court of Porto Alegre, State of Rio Grande do Sul, Brazil. The state prosecutor alleged that MercadoLivre should be held liable for any offer or sale of any unlawful products or services through its website. A preliminary injunction was granted on November 25, 2013 ordering the Brazilian subsidiary to monitor and prevent any offer of unlawful products or services. On January 22, 2014, the Brazilian subsidiary was summoned. As of the date of these financials statements the Company’s defense and appeal against the preliminary injunction was not presented. In the opinion of the Company’s management the risk of losing the case is reasonably possible, but not probable. | |||||
Other third parties have from time to time claimed, and others may claim in the future, that the Company was responsible for fraud committed against them, or that the Company has infringed their intellectual property rights. The underlying laws with respect to the potential liability of online intermediaries like the Company are unclear in the jurisdictions where the Company operates. Management believes that additional lawsuits alleging that the Company has violated copyright or trademark laws will be filed against the Company in the future. | |||||
Intellectual property and regulatory claims, whether meritorious or not, are time consuming and costly to resolve, require significant amounts of management time, could require expensive changes in the Company’s methods of doing business, or could require the Company to enter into costly royalty or licensing agreements. The Company may be subject to patent disputes, and be subject to patent infringement claims as the Company’s services expand in scope and complexity. In particular, the Company may face additional patent infringement claims involving various aspects of the payments businesses. | |||||
From time to time, the Company is involved in other disputes or regulatory inquiries that arise in the ordinary course of business. The number and significance of these disputes and inquiries are increasing as the Company’s business expands and the Company grows larger. | |||||
Operating leases | |||||
The Company has leases for office space in the various countries in which it operates. Total rental expense amounted to approximately $3,043,604, $2,441,866 and $2,275,171 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Minimum remaining annual commitments under the non-cancelable operating leases are as follows: | |||||
For the year ended December 31, 2014 | $ | 2,811,926 | |||
For the year ended December 31, 2015 | 688,379 | ||||
For the year ended December 31, 2016 | 268,740 | ||||
Thereafter | — | ||||
$ | 3,769,045 | ||||
Capital leases | |||||
In 2010, 2011 and 2012 the Company through its subsidiaries signed car lease contracts to buy cars for certain employees. The remaining liability related to these lease contracts amount to $21,962 and mature in October and November 2014. | |||||
Employment Contracts | |||||
Each of the executive officers of the Company are a party to individual employment agreements that provide for annual base estimated salaries aggregating approximately $1,650,000 per year, a performance based estimated bonus aggregating to approximately $1,400,000 per year, and some fringe benefits. The employment agreements automatically renew annually, if not terminated by either party. Each agreement includes clauses that provide in the event of employment termination without cause, the Company must pay the employee 12 months of base salary. | |||||
Additionally, the executive officers of the Company are included in the Long Term Retention Plans mentioned in note 16. Under the 2009 Plan the executive officers of the Company will receive approximately $1,932,000 in a period of 3 years and 3 months. Under the 2010 Plan the executive officers of the Company will receive approximately $3,913,000 in a period of 4 years and 3 months. Under the 2011 Plan the executive officers of the Company will receive approximately $4,702,000 in a period of 5 years and 3 months. Under the 2012 Plan the executive officers of the Company will receive approximately $5,693,000 in a period of 6 years and 3 months. Finally, under the 2013 Plan the executive officers of the Company will receive approximately $12,975,000 in a period of 5 years and 3 months. In all cases, the estimated amount has been calculated considering the Company’s closing stock price as of December 31, 2013. | |||||
Loans payable and other financial liabilities | |||||
In September 2013, the Company through its Venezuelan subsidiary obtained an unsecured line of credit from a Venezuelan bank to fund a portion of the purchase price relating to our acquisition of a new office building in Caracas, Venezuela. As of December 31, 2013, amounts outstanding under the unsecured line of credit were BF$80,115,000 or $12,716,667. The unsecured line of credit bears interest at a fixed rate of 13% per annum and matures in twelve months. | |||||
Additionally, during last quarter of 2013, the Company through its Argentine subsidiary obtained two unsecured lines of credit from two Argentinean banks, denominated in Argentinean pesos, to fund the acquisition of office equipment in Buenos Aires. As of December 31, 2013, amounts outstanding under these unsecured lines of credit were AR$ 20,358,655 or $3,122,014. The unsecured lines of credit bear interest fixed rates of 15.25% per annum and the last maturity date is in 48 months. One of the loan agreements include certain covenants and commitments which, in case of non-compliance would cause the loans to be payable immediately, and which main provisions include that the Argentine subsidiary should obtain prior bank approval for any business combination involving such subsidiary, limitations for certain property sales and the commitment to maintain certain indebtedness ratios and minimum net worth. |
Long_Term_Retention_Plan
Long Term Retention Plan | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Long Term Retention Plan | ' | ||||||||||||||||||||||||
16 | Long term retention plan | ||||||||||||||||||||||||
On August 8, 2008, the board of directors approved an employee retention program (LTRP) that would be payable 50% in cash and 50% in shares, in addition to the annual salary and bonus of certain executives. Payments were to be made in the first quarter on annual basis according to the following vesting schedule: | |||||||||||||||||||||||||
• | Year 1 (2008): 17% | ||||||||||||||||||||||||
• | Year 2 (2009): 22% | ||||||||||||||||||||||||
• | Year 3 (2010): 27% | ||||||||||||||||||||||||
• | Year 4 (2011): 34% | ||||||||||||||||||||||||
The shares granted for the 2008 LTRP were valued at the grant-date fair market value of $36.8 per share. As of December 31, 2012, the Company fully paid the 2008 LTRP. | |||||||||||||||||||||||||
For the year ended December 31, 2013, there was not related accrued compensation expense. For the year ended December 31, 2012, the related accrued compensation expense was $20,595 corresponding $11,036 to the share portion of the award credited to Additional Paid-in Capital and $9,559 to the cash portion. For the year ended December 31, 2011, the related accrued compensation expense was $98,451 corresponding $49,246 to the share portion of the award credited to Additional Paid-in Capital and $49,205 to the cash portion included in the Balance Sheet as Payroll and social security payable. | |||||||||||||||||||||||||
The following table summarizes the number of shares for each of the following groups: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
Number of Shares | 2012 | 2011 | |||||||||||||||||||||||
Granted | 21,591 | 21,591 | |||||||||||||||||||||||
Non-vested at the beginning of the year | 5,100 | 10,163 | |||||||||||||||||||||||
Non-vested at the end of the year | — | 5,100 | |||||||||||||||||||||||
Forfeited | 4,218 | 4,218 | |||||||||||||||||||||||
Vested and paid to the employees | 17,373 | 12,273 | |||||||||||||||||||||||
Outstanding | — | 5,100 | |||||||||||||||||||||||
On July 15, 2009, June 25, 2010, August 1, 2011 and June 5, 2012, the board of directors, upon the recommendation of the compensation committee approved the 2009, the 2010, 2011 and the 2012 employee retention programs (the “2009, 2010, 2011 and 2012 LTRP”). The awards under the 2009, 2010, 2011 and 2012 LTRP are fully payable in cash in addition to the annual salary and bonus of each employee. | |||||||||||||||||||||||||
The 2009, 2010, 2011 and 2012 LTRP will be paid in 8 equal annual quotas (12.5% each) commencing on March 31, 2010, March 31, 2011, and March 31, 2012 and March 31, 2013, respectively. Each quota is calculated as follows: | |||||||||||||||||||||||||
• | 6.25% of the amount will be calculated in nominal terms (“the nominal basis share”), | ||||||||||||||||||||||||
• | 6.25% is adjusted by multiplying the nominal amount by the average closing stock price for the last 60 trading days of the year previous to the payment date and divided by the average closing stock price for the last 60 trading days of 2008, 2009, 2010 and 2011 for the 2009, 2010, 2011 and 2012 LTRP, respectively. The average closing stock price for the 2009, 2010, 2011 and 2012 LTRP amounted to $13.81, $45.75, $65.41 and $77.77, respectively (“the variable share”). | ||||||||||||||||||||||||
In May 2013 the board of directors, upon the recommendation of the Compensation Committee, approved certain amendments to the 2009, 2010, 2011 and 2012 Long-Term Retention Plans (the Amended LTRPs), to give the Company (through the approval of the Compensation Committee) the option to pay the compensation due under the Amended LTRPs in cash, common stock or a combination thereof. The company has granted the right to any Amended LTRP participant to request settlement in cash. The Amended LTRPs have been considered to be a substantive liability and classified accordingly in the balance sheet. | |||||||||||||||||||||||||
On September 27, 2013, the Board of Directors, upon the recommendation of the Compensation Committee approved the 2013 employee retention programs (“2013 LTRP”). The awards under 2013 LTRP are payable in cash, common stock or a combination thereof, in addition to the annual salary and bonus of each employee. The Company has granted the right to any LTRP participant to request settlement in cash. | |||||||||||||||||||||||||
The 2013 LTRP will be paid in 6 equal annual quotas (16.67% each) commencing on March 31, 2014. Each quota is calculated as follows: | |||||||||||||||||||||||||
• | 8.333% of the amount is calculated in nominal terms (“the nominal basis share”), | ||||||||||||||||||||||||
• | 8.333% is adjusted by multiplying the nominal amount by the average closing stock price for the last 60 trading days of the year previous to the payment date and divided by the average closing stock price for the last 60 trading days of 2012. The average closing stock price for the 2013 LTRP amounted to $79.57 (“the variable share”). | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||
Weighted-average | Weighted-average | Weighted-average | |||||||||||||||||||||||
Aggregate | remaining | Aggregate | remaining | Aggregate | remaining | ||||||||||||||||||||
Intrinsic | contractual | Intrinsic | contractual | Intrinsic | contractual | ||||||||||||||||||||
value | life (years) | value | life (years) | value | life (years) | ||||||||||||||||||||
Outstanding LTRP 2009 | 4,305,518 | 1.75 | 3,854,742 | 2.25 | 5,070,581 | 2.75 | |||||||||||||||||||
Outstanding LTRP 2010 | 2,884,551 | 2.25 | 3,461,461 | 2.75 | 3,818,221 | 3.25 | |||||||||||||||||||
Outstanding LTRP 2011 | 4,093,119 | 2.75 | 3,288,647 | 3.25 | 3,754,634 | 3.75 | |||||||||||||||||||
Outstanding LTRP 2012 | 4,806,997 | 3.25 | 3,800,492 | 3.75 | — | — | |||||||||||||||||||
Outstanding LTRP 2013 | 10,167,959 | 2.75 | — | — | — | — | |||||||||||||||||||
The 2009, 2010, 2011, 2012 and 2013 LTRP have performance and/or eligibility conditions to be achieved at each year end and also require the employee to stay in the Company at the payment date. | |||||||||||||||||||||||||
The variable share compensation cost of the 2009, 2010, 2011, 2012 and 2013 LTRP is recognized in accordance with the graded-vesting attribution method and is accrued up to each payment date. The 2009, 2010, 2011, 2012 and 2013 LTRP nominal basis portion is recognized in straight line bases using the equal annual accrual method. | |||||||||||||||||||||||||
The following tables summarize the LTRP accrued compensation expense for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
LTRP 2008 | — | 20,595 | 98,451 | ||||||||||||||||||||||
LTRP 2009 | 1,562,957 | 587,106 | 1,457,838 | ||||||||||||||||||||||
LTRP 2010 | 1,611,521 | 1,006,740 | 1,330,238 | ||||||||||||||||||||||
LTRP 2011 | 1,698,285 | 1,236,275 | 1,519,760 | ||||||||||||||||||||||
LTRP 2012 | 2,013,011 | 1,603,142 | — | ||||||||||||||||||||||
LTRP 2013 | 4,759,303 | — | — | ||||||||||||||||||||||
$ | 11,645,077 | $ | 4,453,858 | $ | 4,406,287 | ||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
17 | Related Party Transactions | |
Indemnification agreements | ||
The Company has entered into indemnification agreements with each of the directors and executive officers of its local subsidiaries. These agreements require the Company to indemnify such individuals, to the fullest extent permitted by the laws of the jurisdiction where these subsidiaries operate, for certain liabilities to which they may become subject by reason of the fact that such individuals are or were directors or executive officers of the local subsidiaries of the Company. | ||
Curtidos San Luis S.A. | ||
Until February 22, 2011, the Company leased office space from Curtidos San Luis S.A. | ||
Immediate families of Marcos Galperin (CEO) are managers and shareholders of the controlling company of Curtidos San Luis S.A. After February 14, 2011, the Company’s Argentine subsidiary moved its headquarters and Argentine operation offices to a new own office building located in the City of Buenos Aires. During the years ended December 31, 2013, 2012 and 2011, the Company recognized expenses from Curtidos San Luis S.A. totaling $nil, $nil and $253,924 respectively. As of December 31, 2012, the Company had recovered the last portion of the lease contract escrow for $16,553. | ||
During the year ended December 31, 2012, the Company bought VAT credits from Curtidos San Luis S.A. The Company recognized a gain for $24,472 related to the discount received in the transaction. As of December 31, 2013, there are no receivables related to these transactions. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||
18 | Valuation and qualifying accounts | ||||||||||||||||
The following table summarizes valuation and qualifying accounts activity during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Charged / | |||||||||||||||||
Balance at | credited to | Charges | Balance | ||||||||||||||
beginning of | Net income / | Utilized / | at end of | ||||||||||||||
year | (loss) | Write-offs | year | ||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
Year ended December 31, 2011 | 11,560,568 | 17,560,508 | (13,169,579 | ) | 15,951,497 | ||||||||||||
Year ended December 31, 2012 | 15,951,497 | 17,280,243 | (20,285,663 | ) | 12,946,077 | ||||||||||||
Year ended December 31, 2013 | 12,946,077 | 19,093,704 | (13,044,977 | ) | 18,994,804 | ||||||||||||
Credit cards receivable allowance for chargebacks | |||||||||||||||||
Year ended December 31, 2011 | 133,632 | 1,376,361 | (1,304,886 | ) | 205,107 | ||||||||||||
Year ended December 31, 2012 | 205,107 | 414,145 | (458,794 | ) | 160,458 | ||||||||||||
Year ended December 31, 2013 | 160,458 | 877,312 | (28,699 | ) | 1,009,071 | ||||||||||||
Tax valuation allowance | |||||||||||||||||
Year ended December 31, 2011 | 4,818,253 | (1,878,518 | ) | (54,139 | ) | 2,885,596 | |||||||||||
Year ended December 31, 2012 | 2,885,596 | 837,473 | (496,892 | ) | 3,226,177 | ||||||||||||
Year ended December 31, 2013 | 3,226,177 | 398,223 | (535,287 | ) | 3,089,113 | ||||||||||||
Contingencies | |||||||||||||||||
Year ended December 31, 2011 | 1,648,534 | 2,178,717 | (2,062,009 | ) | 1,765,242 | ||||||||||||
Year ended December 31, 2012 | 1,765,242 | 2,700,988 | (1,666,033 | ) | 2,800,197 | ||||||||||||
Year ended December 31, 2013 | 2,800,197 | 3,358,538 | (2,828,627 | ) | 3,330,108 |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
19 | Quarterly Financial Data (unaudited) | ||||||||||||||||
The following tables present certain consolidated quarterly financial information for each of the last twelve quarters for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Net Revenues | $ | 102,725,747 | $ | 112,183,360 | $ | 123,055,431 | $ | 134,630,171 | |||||||||
Gross profit | 74,076,580 | 81,106,149 | 88,910,442 | 98,424,659 | |||||||||||||
Net Income | 17,522,591 | 30,021,018 | 29,146,247 | 40,836,407 | |||||||||||||
Net Income per share-basic | 0.4 | 0.67 | 0.66 | 0.93 | |||||||||||||
Net Income per share-diluted | 0.4 | 0.67 | 0.66 | 0.93 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,151,323 | 44,152,933 | 44,152,933 | 44,153,185 | |||||||||||||
Diluted | 44,151,357 | 44,152,933 | 44,152,933 | 44,153,185 | |||||||||||||
2012 | |||||||||||||||||
Net Revenues | $ | 83,736,006 | $ | 88,844,059 | $ | 97,266,784 | $ | 103,754,645 | |||||||||
Gross profit | 62,639,709 | 64,951,178 | 71,573,179 | 76,351,784 | |||||||||||||
Net Income | 19,637,038 | 25,394,824 | 26,067,897 | 30,246,388 | |||||||||||||
Net Income per share-basic | 0.45 | 0.57 | 0.59 | 0.69 | |||||||||||||
Net Income per share-diluted | 0.45 | 0.57 | 0.59 | 0.69 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,142,076 | 44,147,999 | 44,150,387 | 44,150,920 | |||||||||||||
Diluted | 44,147,796 | 44,152,133 | 44,157,321 | 44,152,895 | |||||||||||||
2011 | |||||||||||||||||
Net Revenues | $ | 61,459,668 | $ | 69,378,160 | $ | 81,628,144 | $ | 86,465,653 | |||||||||
Gross profit | 47,127,964 | 52,439,042 | 61,567,671 | 65,741,114 | |||||||||||||
Net Income | 14,057,634 | 14,820,826 | 26,296,449 | 21,621,431 | |||||||||||||
Net Income per share-basic | 0.32 | 0.34 | 0.6 | 0.47 | |||||||||||||
Net Income per share-diluted | 0.32 | 0.34 | 0.6 | 0.47 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,131,383 | 44,138,105 | 44,141,925 | 44,142,020 | |||||||||||||
Diluted | 44,147,667 | 44,152,296 | 44,151,218 | 44,152,658 |
Cash_Dividend_Distribution
Cash Dividend Distribution | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Cash Dividend Distribution | ' | |
20 | Cash Dividend Distribution | |
During the fiscal year ended December 31, 2013, the Company approved cash dividends for a total amount of $25.2 million or $0.572 per share, which had all been paid as of the year-end, except for the one approved in October 2013, consisting of $6.3 million or $0.143 per share, which was paid on January 15, 2014. | ||
During the fiscal year ended December 31, 2011, the Company approved cash dividends for a total amount of $14.1 million or $0.32 per share, which had all been paid as of the year- end, except for the one approved in October 2011, consisting of $3.5 million or $0.08 per share, which was paid on January 17, 2012. | ||
During the fiscal year ended December 31, 2012, the Company approved cash dividends for a total amount of $19.2 million or $0.436 per share, which had all been paid as of the year- end, except for the one approved in October 2012, consisting of $4.8 million or $0.109 per share, which was paid on January 15, 2013. | ||
On February 27, 2014, the board of directors approved a quarterly cash dividend of $7.3 million (or $0.166 per share) on our outstanding shares of common stock. The first quarterly dividend is payable on April 15, 2014 to stockholders of record as of the close of business on March 31, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
21 | Subsequent events | |
Exchange market developments in 2014 in Argentina | ||
During January 2014 the Argentinean peso exchange rate against the U.S. dollar increased in approximately 23%, from 6.52 Argentinean Pesos per U.S. dollar as of December 31, 2013 to about 8 Argentinean Pesos per U.S. dollar. Had the abovementioned devaluation occurred on December 31, 2013, the reported net assets in Argentina would have decreased approximately between $14.0 million to $15.0 million with the related impact in Other Comprehensive Income. Additionally, the Company would have recorded a foreign exchange gain between $3.5 million and $4.5 million in its Argentinean subsidiaries. | ||
Exchange market developments in 2014 in Venezuela | ||
Effective January 24, 2014, the Venezuelan government enacted important changes to the country’s foreign exchange system. While still retaining the CADIVI rate of 6.3 BsF to 1 USD, the new rule (“Exchange agreement # 25”) announces that the activities of CADIVI will be gradually assumed by the “National Foreign trade center”, and it expands from that date the types of transactions and businesses that are to be subject to the SICAD auction process, now including, among others, payments to foreign parties for imports of services, leasing, trademarks, licensing, franchising, networks services, telecoms soft and hardware, international investments (which include dividends), royalties and payments for imports of technology and technical assistance. The exchange rate determined at recent auctions was approximately 11.8 BsF to 1 USD. | ||
As a result of the above described change in regulations, the Company will have to use the auction resulting SICAD exchange rate to re-measure the Venezuelan subsidiaries’ non-U.S. dollar denominated monetary assets and liabilities from January 2014, which management estimates would result in a loss of approximately between $1.5 million and $2.5 million to be recorded in the first quarter of fiscal year 2014. Also, the use of the SICAD exchange rate from fiscal year 2014 implies that the company´s revenues and costs will be re-measured using the auction resulting rate, which would vary from auction to auction. | ||
On February 19, 2014, the Venezuelan Government issued Decree N° 798 which would allow the purchase of foreign exchange currencies, through authorized foreign exchange operators offered, by individuals and companies such as Petroleos de Venezuela, S.A. (the oil state-owned corporation of Venezuela), the Central Bank of Venezuela and other public entities authorized by the Ministry of Finance. The purchase/sale of foreign currency through this mechanism would be regulated by “Foreign Exchange Agreements” to be issued by the Government. At the date of issuance of these financial statements, the regulatory decree that should establish the details of how such mechanism would work has not yet been issued. | ||
New Law of “Costs, Earnings, and Fair Profits” | ||
In November 2013 the Venezuelan Congress approved an “enabling law” granting the president of Venezuela the authority to enact laws and regulations in certain policy areas by decree. This authority includes the ability to restrict profit margins and impose greater controls on foreign exchange and the production, import, and distribution of certain goods. Among other actions, the president has used this decree power to pass the Law of Costs, Earnings, and Fair Profits, which became effective in January 2014 and, among other provisions, authorizes the Venezuelan government to set “fair prices” and maximum profit margins in the private sector. The Company will assess the potential effects of this new law as the detailed provisions for its implementation are issued. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of consolidation | |||||||||||||
The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries. Ownership interests of minority interests are recorded as noncontrolling interest. These consolidated financial statements are stated in U.S. dollars. Intercompany transactions and balances have been eliminated for consolidation purposes. | |||||||||||||
Substantially all net revenues, cost of net revenues and operating expenses, are generated in the Company’s foreign operations, amounting to approximately 99.6%, 99.5% and 99.7% of the consolidated amounts during 2013, 2012 and 2011, respectively. Long-lived assets and Goodwill located in the foreign operations totaled $183,922,432 and $98,569,068 as of December 31, 2013 and 2012, respectively. | |||||||||||||
Cash and cash equivalents, short-term and long-term investments, amounted to $262,598,055 and $281,139,391 as of December 31, 2013 and 2012, respectively. As of December 31, 2013 those assets are located 39% in the United States of America and 61% in foreign locations, mainly in Brazil, Argentina and Venezuela. As of December 31, 2012 those assets are located 36% in the United States of America and 64% in foreign locations, mainly in Brazil, Argentina and Venezuela. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of estimates | |||||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to accounting for allowance for doubtful accounts and chargeback provisions, depreciation, amortization, recoverability of goodwill and intangible assets with indefinite useful lives, useful lives of long-lived assets, impairment of short-term and long-term investments, compensation costs relating to the Company’s long term retention plan, recognition of income taxes and contingencies. Actual results could differ from those estimates. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased, consisting primarily of money market funds and certificates of deposit, to be cash equivalents. | |||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
Time deposits are valued at amortized cost plus accrued interest. Debt securities classified as available-for-sale are recorded at fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive income (loss), net of the related tax provisions or benefits. | |||||||||||||
Investments are classified as current or non-current depending on their maturity dates and when it is expected to be converted into cash. | |||||||||||||
The Company assesses whether an other-than-temporary impairment loss on its investments has occurred due to declines in fair value or other market conditions. With respect to debt securities, this assessment takes into account the intent to sell the security, whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and if the Company does not expect to recover the entire amortized cost basis of the security (that is, a credit loss exists). The Company did not recognize any other-than-temporary impairment on our investments in 2013, 2012, or 2011. | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
Fair value measurements | |||||||||||||
Cash, money market funds, corporate and sovereign debt securities and asset backed securities are valued at fair value. Deposits in bank accounts, accounts receivables, credit cards receivables, prepaid expenses, other assets, accounts payables, funds payable to customers, payroll and social security payables, taxes payables, loans and provisions and other liabilities, are valued at cost plus accrued interest (when applicable) which approximates their fair value because of its short-term maturity. See Note 8 “Fair Value Measurement of Assets and Liabilities” for further details. | |||||||||||||
Concentration of Credit Risk | ' | ||||||||||||
Concentration of credit risk | |||||||||||||
Cash and cash equivalents, short-term and long-term investments, credit card receivables and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents and investments are placed with financial institutions that management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located internationally. Accounts receivable balances are settled through customer credit cards, debit cards, and MercadoPago accounts, with the majority of accounts receivable collected upon processing of credit card transactions. The Company maintains an allowance for doubtful accounts and credit cards receivables based upon its historical experience and current aging of customers. Historically, such charges have been within management expectations. However, unexpected or significant future changes in trends could result in a material impact to future statements of income or cash flows. Due to the relatively small dollar amount of individual accounts receivable, the Company generally does not require collateral on these balances. The allowance for doubtful accounts is recorded as a charge to operating expense. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, no single customer accounted for more than 5% of net revenues. As of December 31, 2013 and 2012, no single customer accounted for more than 5% of accounts receivables. | |||||||||||||
Allowances for Doubtful Accounts | ' | ||||||||||||
Allowances for doubtful accounts | |||||||||||||
The Company maintains allowances for doubtful accounts, for management’s estimate of probable losses that may result if customers do not make the required payments. Allowances are based upon several factors including, but not limited to, historical experience and the current aging of customers. | |||||||||||||
The Company charges-off receivables when the customer balance becomes 180 days past due. | |||||||||||||
Provision for Chargebacks | ' | ||||||||||||
Provision for chargebacks | |||||||||||||
The Company is exposed to losses due to credit card fraud and other payment misuse. Provisions for these items represent our estimate of actual losses based on our historical experience, as well as economic conditions. | |||||||||||||
Credit Cards Receivables and Funds Payable to Customers | ' | ||||||||||||
Credit cards receivables and funds payable to customers | |||||||||||||
Credit cards receivables mainly relate to the Company’s payments solution and arise due to the time taken to clear transactions through external payment networks or during a short period of time until those credit cards receivables are sold to financial institutions. | |||||||||||||
Credit cards receivables are presented net of the related allowance for doubtful accounts. | |||||||||||||
As of December 31, 2013 and 2012, there are no past due credit cards receivables. | |||||||||||||
Funds payable to customers relate also to the Company’s payments solution and are originated by the amounts due to sellers held by the Company until the transaction is completed. Funds, net of any amount due to the Company by the seller, are maintained in the seller’s current account until collection is requested by the customer. | |||||||||||||
Transfer of Financial Assets | ' | ||||||||||||
Transfer of financial assets | |||||||||||||
The Company may sell credit cards coupons to financial institutions, included within “Credit cards receivables”. These transactions are accounted for as a true sale. Accounting guidance on transfer of financial assets establishes that the transferor has surrendered control over transferred assets if and only if all of the following conditions are met: (1) the transferred assets have been isolated from the transferor, (2) each transferee has the right to pledge or exchange the assets it received (3) the transferor does not maintain effective control over the transferred assets. When all the conditions are met, the Company derecognizes the corresponding financial asset from its balance sheet. As of December 31, 2013 and 2012, there is no continuing involvement with transferred financial assets. The aggregate amount of pre-tax gain included in net revenue recognized on sale of credit card coupons is $ 49,735,842, $39,502,228 and $32,566,802, for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Property and Equipment, Net | ' | ||||||||||||
Property and equipment, net | |||||||||||||
Property and equipment are recorded at their acquisition cost and depreciated over their estimated useful lives using the straight-line method. Repair and maintenance costs are expensed as incurred. | |||||||||||||
Costs related to the planning and post implementation phases of website development are recorded as an operating expense. Direct costs incurred in the development phase of website are capitalized and amortized using the straight-line method over an estimated useful life of three years. As of December 31, 2013 and 2012, the Company capitalized $5,387,385 and $3,970,717, respectively. | |||||||||||||
In April 2013, the Company through its Argentine subsidiary acquired three floors or 3,918 square meters in a new office building located in Buenos Aires for a total amount of $18,481,024 plus VAT. The price was paid in Argentine pesos. As of the date of these consolidated financial statements the Company has fully paid: i) $495,453 plus VAT in advance; ii) $3,184,580 plus VAT at the date of signing of the purchase agreement and iii) $14,800,991 plus VAT. | |||||||||||||
In May 2013, the Company acquired 1,158 square meters, 13 parking spaces and 4 storage spaces, in an office building located in Caracas for a total amount of $20,002,357 or BF$126,014,852. The price has been paid in Bolivares Fuertes. | |||||||||||||
In October 2013, the Company through its Venezuelan subsidiary acquired an office property totaling 1,367 square meters, in Caracas, Venezuela. The purchase price of BF$328,195,200, or approximately $52,094,476, was paid in local currency. The Company’s Venezuelan subsidiary funded a portion of the purchase price with its own funds and the balance of approximately BF$85,115,000, or $13,510,317, pursuant to an unsecured line of credit. | |||||||||||||
The unsecured line of credit has a 12-month term and was obtained from a Venezuelan bank at a fixed interest rate of 13% per annum. As of December 31, 2013, the balance of the loan amounted to approximately BF$80,115,000, or $12,716,667. | |||||||||||||
Those buildings, excluding lands, are depreciated from the date when they were ready to be used, using the straight-line depreciation method over a 50-year depreciable life. | |||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Goodwill and intangible assets | |||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. | |||||||||||||
Intangible assets consist of customer lists, trademarks, licenses and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date. Intangible assets with definite useful life are amortized over the period of estimated benefit to be generated by those assets and using the straight-line method; their estimated useful lives ranges from three to five years. Trademarks with indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. | |||||||||||||
Impairment of Long-lived Assets | ' | ||||||||||||
Impairment of long-lived assets | |||||||||||||
The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparing the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by the asset. If such asset is considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of such asset. | |||||||||||||
Impairment of Goodwill and Intangible Assets with Indefinite Useful Life | ' | ||||||||||||
Impairment of goodwill and intangible assets with indefinite useful life | |||||||||||||
Goodwill and intangible assets with indefinite useful life are reviewed at the end of the year for impairment or more frequently, if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level (considering each segment of the Company as a reporting unit) by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of such reporting unit. The Company adopted the new guidance to test goodwill and intangible assets with indefinite useful life and, as a consequence, it may perform a qualitative assessment before performing the quantitative assessment. If the Company performs the qualitative assessment and determines, on the basis of qualitative factors, that it is more likely than not that the fair value of the reporting unit or the intangible asset with indefinite useful life is less than its carrying amount, the fair-value based on quantitative impairment test is applied. However, if the Company concludes, based on the qualitative assessment, that the fair value of each of its reporting units or the intangible assets with indefinite useful life is greater than the respective carrying amounts, the two-step impairment test is unnecessary. | |||||||||||||
As of December 31, 2013 and 2012, the Company elected to perform the quantitative impairment test for both goodwill and intangible assets with indefinite useful life. | |||||||||||||
For the year ended December 31, 2013, the fair values of the reporting units were estimated using the income approach. Cash flow projections used were based on financial budgets approved by management. The growth rates applied do not exceed the long-term average growth rate for the business in which the reporting unit operates. The Company uses discount rates to each reporting unit in the range of 10% to 20%. The average discount rate used for 2013 was 13.6%. That rate reflected the Company’s estimated weighted average cost of capital. Key drivers in the analysis include Confirmed Registered Users (“CRUs”), Gross Merchandise Volume (“GMV”) which represents a measure of the total U.S. dollar amount of all transactions completed through the MercadoLibre marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services and take rate defined as marketplace revenues as a percentage of gross merchandise volume. In addition, the analysis include a business to e-commerce rate, which represents growth of e-commerce as a percentage of GDP, internet penetration rates as well as trends in the Company’s market share. | |||||||||||||
If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and the second step is performed to measure the amount of impairment loss, if any. No impairment loss has been recognized in the years ended December 31, 2013, 2012 and 2011 and management’s assessment of the fair value of each reporting unit exceeds its carrying value. | |||||||||||||
Intangible assets with indefinite useful life are considered impaired if the carrying amount of the intangible asset exceeds its fair value. No impairment loss has been recognized in the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue recognition | |||||||||||||
The Company generates revenues from different services provided. When more than one service is included in one single arrangement with the customer, the Company recognizes revenue according to multiple element arrangements accounting, distinguishing between each of the services provided and allocating revenues based on their respective selling prices. | |||||||||||||
Revenues are recognized when evidence of an arrangement exists, the fee is fixed or determinable and collection is reasonably assured. | |||||||||||||
Revenues from services are separately recognized according to the following criteria described for each type of services: | |||||||||||||
• | Revenues from intermediation services derive from listing and final value fees paid by sellers. Listing fee revenues are recognized ratably over the estimated period of the listing, while revenues related to final value fees are recognized at the time that the transaction is successfully concluded. An auction transaction is considered successfully concluded when at least one buyer has bid above the seller’s specified minimum price or reserve price, whichever is higher, at the end of the transaction term. Our payment services revenues are generated primarily from processing transactions for customers. Revenues resulting from a payment processing transaction are recognized once the transaction is completed. The Company does not charge a separate fee for on-platform transactions. | ||||||||||||
• | Listing and optional feature services, which fees relate to the right of a seller to have the item offered listed in a preferential way, as well as classified advertising services, are recorded as revenue ratably during the listing period. Those fees are charged at the time the listing is uploaded onto the Company’s platform and is not subject to successful sale of the items listed. | ||||||||||||
• | Revenues derived from the use of the Company’s on-line payments solution, for transactions off-platform are earned once the transaction is considered completed, when the payment is processed by the Company. The Company also earns revenues as a result of offering financing to our MercadoPago users, either directly or when the Company elects to sell the corresponding financial assets to financial institutions. | ||||||||||||
• | Advertising revenues such as the sale of banners are recognized on accrual basis, and MercadoClics services or sponsorship of sites are recognized based on “per-click” (which are generated each time users on our websites click through our text-based advertisements to an advertiser’s designated website) values and as the “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our websites) are delivered. | ||||||||||||
• | Revenues from shipping services are generated when a buyer elects to receive the item through our shipping service and the service is rendered to the client. Revenues are disclosed net of third party provider’s cost. | ||||||||||||
Share-based Payments | ' | ||||||||||||
Share-based payments | |||||||||||||
Shares granted under the 2008 long term retention plan (“the 2008 LTRP”) were accounted for at their grant date fair value. | |||||||||||||
Fair value of stock options was calculated using the Black-Scholes pricing model. This calculation is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. The use of a Black-Scholes model requires extensive actual employee exercise behavior data and a number of complex assumptions including expected life, expected volatility, risk-free interest rate and dividend yield. As a result, the future stock-based compensation expense may differ from historical amounts. | |||||||||||||
Fair value of restricted and additional shares and shares granted under the 2008 LTRP was calculated using the grant date price of the Company’s shares. The 2008 LTRP has been fully settled during the first quarter of 2012. | |||||||||||||
The liability related to the variable portion of 2013, 2012, 2011, 2010 and 2009 long term retention plan is remeasured at fair value (See Note 16 “Long Term Retention Plan” for more details). | |||||||||||||
For share-based awards that have a graded vesting schedule, compensation cost is recognized on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was in-substance multiple awards. | |||||||||||||
Sales Tax | ' | ||||||||||||
Sales tax | |||||||||||||
The Company’s subsidiaries in Brazil, Argentina, Venezuela and Colombia are subject to certain sales taxes which are classified as cost of net revenues and totaled $28,388,734, $22,529,191, and $21,387,561 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Advertising Costs | ' | ||||||||||||
Advertising costs | |||||||||||||
The Company expenses the costs of advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click basis, or on a straight-line basis over the term of the contract. Advertising costs totaled $31,594,894, $18,764,629 and $19,914,755 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Comprehensive Income | ' | ||||||||||||
Comprehensive income | |||||||||||||
Comprehensive income is comprised of two components, net income and other comprehensive income. This last component is defined as all other changes in the equity of the Company that result from transactions other than with shareholders. Other comprehensive income includes the cumulative translation adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries (except Venezuela since January 1, 2010, see “Foreign currency translation”) and unrealized gains and losses on investments classified as available-for-sale. Total comprehensive income attributable to MercadoLibre, Inc. shareholders’ for the years ended December 31, 2013, 2012 and 2011 amounted to $78,834,596, $89,507,516 and $62,135,746 respectively. | |||||||||||||
Redeemable Noncontrolling Interest | ' | ||||||||||||
Redeemable noncontrolling interest | |||||||||||||
In September 2011, the Company acquired the 60% of the shares of AP Clasificados S.R.L. de C.V. (“AP Clasificados”), and signed a call and a put option agreement to acquire the remaining 40% interest in AP Clasificados (See note 6 “Business Combinations, Goodwill and Intangible Assets” for more detail). According to the signed agreement, the price for the remaining 40% interest call or put options will be determined by the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the seller’s interests as of the exercise date of the call/put option by (B) an amount equal to 3.5 times the amount of invoiced sales of such company for the twelve months period ending on the exercise date. | |||||||||||||
The put option is to be exercised if any of the following events occurs: (i) the third anniversary of the acquisition date, (ii) the termination of the employment of the main operating officer, and (iii) death or incapacitation of the main operating officer. The call option is to be exercised following the earlier to occur of (i) third anniversary of the acquisition date and (ii) members holding a majority of the issued and outstanding interests determine that an additional capital contribution is required to capitalize AP Clasificados and the seller does not make such additional capital contribution. | |||||||||||||
Redeemable noncontrolling interest is not considered to be a component of Equity and is reported in the mezzanine section between total liabilities and equity in the consolidated balance sheet for a total amount of $4,000,000 at December 31, 2013. The noncontrolling interest was measured at its estimated redemption value according to the abovementioned agreed conditions. Changes in the estimated redemption value as of the year-end were recorded in retained earnings. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign currency translation | |||||||||||||
All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Venezuela since January 1, 2010, as described below. Accordingly, these foreign subsidiaries translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive income (loss). Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the consolidated statements of income under the caption “Foreign currency gain” and amounted to $1,258,476, $11,597 and $2,353,005 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Venezuelan currency status | |||||||||||||
According to U.S. GAAP, the Company has transitioned its Venezuelan operations to highly inflationary status as from January 1, 2010, which requires that transactions and balances are re-measured as if the U.S. dollar was the functional currency for such operation. The cumulative three year inflation rate as of December 31, 2010 exceeded 100%. As of the date of these consolidated financial statements, the cumulative three-year inflation rate approximates 100%. The Company continues to treat the economy of Venezuela as highly-inflationary. Therefore, no translation effect was accounted for in other comprehensive income during the years ended December 31, 2013, 2012 and 2011 related to the Venezuelan operations. | |||||||||||||
Until May 13, 2010, the Venezuelan subsidiaries had used an indirect mechanism consisting in the purchase and sale of securities, including national public debt bonds (DPNs) denominated in Bolivares Fuertes and bonds issued by the government that were denominated in U.S. dollars, to exchange Bolivares Fuertes for U.S. dollars and accordingly the Company used the parallel average exchange rate to re-measure those foreign currency transactions. However, on May 14, 2010, the Venezuelan government enacted reforms to its exchange regulations and closed-down such parallel market by declaring that foreign-currency-denominated securities issued by Venezuelan entities were included in the definition of foreign currency, thus making the Banco Central of Venezuela (BCV – the Venezuelan Central Bank) the only institution that could legally authorize the purchase or sale of foreign currency bonds, thereby excluding non-authorized brokers from the foreign exchange market. | |||||||||||||
On June 9, 2010 the Venezuelan Government, through its Central Bank, implemented a regulated market for trading with foreign currencies, being the BCV the only official institution through which foreign currency-denominated transactions could be brokered. Under that system, known as the Foreign Currency Securities Transactions System (SITME), entities domiciled in Venezuela could then buy U.S. dollar–denominated securities only through banks authorized by the BCV to import goods, services or capital inputs. For the period between May 14, 2010 and June 8, 2010 (during which there was no open foreign currency markets) the Company applied U.S. GAAP guidelines, which state that if exchangeability between two currencies is temporarily lacking at the transaction date or balance sheet date, the first subsequent rate at which exchanges could be made shall be used. Accordingly, the June 9, 2010 exchange rate published by the BCV was used to re-measure transactions during the abovementioned period. As of December 31, 2012, the exchange rate used to re-measure transactions was 5.30 Bolivares Fuertes per U.S. dollar. | |||||||||||||
In February 2013, the Government of Venezuela eliminated the SITME, which was a former system that allowed companies limited access to foreign currencies for payments to foreign suppliers, and devalued the official exchange rate to 6.3 Bolivares Fuertes per U.S. dollar. The devaluation required re-measurement of the Company’s Venezuelan subsidiaries’ non-U.S. dollar denominated monetary assets and liabilities at that rate from February 2013. | |||||||||||||
On March 19, 2013, the BCV announced the creation of the Sistema Complementario de Administración de Divisas, or SICAD, which would act jointly with the Commission for the Administration of Foreign Exchange Control (CADIVI). In order to operate within that system, a company had to be registered at the Registro Automatizado (Automatized Register, or “RUSAD”), and the acquisition of foreign currencies under that system was organized under an auction process to obtain foreign currencies for payments to foreign suppliers, where the minimum exchange rate to be offered was 6.30 Bolivares Fuertes per U.S. dollar. As of the date of these consolidated financial statements, the Company has been unable to access that auction process. | |||||||||||||
Accordingly, as of December 31, 2013, the exchange rate used to re-measure the net monetary assets of the Company’s Venezuelan subsidiaries was 6.30 Bolivares Fuertes per U.S. dollar, and transactions were re-measured at the monthly average exchange rate for the year ended December 31, 2013. | |||||||||||||
The SITME rate that had been used to re-measure foreign currency transactions during 2012 was 5.3 Bolivares Fuertes per U.S. dollar, and the devaluation of the official exchange rate of the Bolivares Fuertes against the U.S. dollar to 6.3 Bolivares Fuertes per U.S. dollar generated a foreign currency loss amounting to approximately $6.4 million in the first quarter of 2013. | |||||||||||||
Until 2010 the Company was able to obtain U.S. dollars for any purpose, including dividends distribution, using alternative mechanisms other than through the CADIVI. Those U.S. dollars, obtained at a higher exchange rate than the one offered by CADIVI, and held in balance at U.S. bank accounts of its Venezuelan subsidiaries, were used for dividend distributions from its Venezuelan subsidiaries. CADIVI is the only means by which U.S. dollars for dividend distributions can be requested. The Company´s Venezuelan subsidiaries did not request authorization to CADIVI in 2012, neither during the year ended December 31, 2013, to acquire U.S. dollars to make dividend distributions. The Company has not distributed dividends from its Venezuelan subsidiaries since 2011. | |||||||||||||
In late December 2013, the Venezuelan government authorized the Central Bank of Venezuela to begin publishing the average exchange rate resulting from the weekly SICAD auctions. According to the regulations in force at that date, as of December 31, 2013 the SICAD mechanism then in force was only accessible for businesses operating in certain industry segments which did not include the company´s business. So, the company did not have access to U.S. dollars through those auctions during 2013. | |||||||||||||
The following table sets forth the assets, liabilities and net assets of the Company’s Venezuelan subsidiaries, before intercompany eliminations, as of December 31, 2013 and 2012 and net revenues for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Venezuelan operations | |||||||||||||
Net Revenues | $ | 84,572,485 | $ | 54,676,170 | $ | 34,828,878 | |||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | 126,873,804 | 62,938,728 | |||||||||||
Liabilities | (62,437,338 | ) | (22,652,965 | ) | |||||||||
Net Assets | $ | 64,436,466 | $ | 40,285,763 | |||||||||
As of December 31, 2013, net assets (before intercompany eliminations) of the Venezuelan subsidiaries amounted to approximately 18.8% of consolidated net assets, and cash and investments of the Venezuelan subsidiaries held in local currency in Venezuela amounted to approximately 9.8% of our consolidated cash and investments. | |||||||||||||
The Company’s ability to obtain U.S. dollars in Venezuela is negatively affected by the exchange regulations in Venezuela that are described above and elsewhere in these financial statements. In addition, its business and ability to obtain U.S. dollars in Venezuela would be negatively affected by additional material devaluations or the imposition of significant additional and more stringent controls on foreign currency exchange by the Venezuelan government. | |||||||||||||
Despite the current difficult macroeconomic environment in Venezuela, the Company continues to actively manage, through its Venezuelan subsidiaries, its investment in Venezuela. Based on current operating, political and economic conditions and certain other factors in Venezuela, management currently believes that its business plans and operating strategy in Venezuela will not be materially adversely impacted in the long run. | |||||||||||||
See Note 21 “Subsequent events” for recent developments relating to Venezuela exchange rate. | |||||||||||||
Argentine currency status | |||||||||||||
The Argentine government has implemented certain measures that control and restrict the ability of companies and individuals to exchange Argentine Pesos for foreign currencies. Those measures include, among other things, the requirement to obtain the prior approval from the Argentine Tax Authority of the foreign currency transaction (for example and | |||||||||||||
without limitation, for the payment of non-Argentine goods and services, payment of principal and interest on non-Argentine debt and also payment of dividends to parties outside of the country), which approval process could delay, and eventually restrict, the ability to exchange Argentine pesos for other currencies, such as U.S. dollars. Those approvals are administered by the Argentine Central Bank through the Local Exchange Market (“Mercado Unico Libre de Cambios” or “MULC”), which is the only market where exchange transactions may be lawfully made. Further, restrictions also currently apply to the acquisition of any foreign currency for holding as cash within Argentina. | |||||||||||||
Although the controls and restrictions on the acquisition of foreign currencies in Argentina do place certain limitations on the current ability of the Company to convert cash generated by its Argentine subsidiary to currencies different from the Argentine peso, based on the current state of Argentine currency rules and regulations, the Company does not expect that the current controls and restrictions, will have a material adverse effect on its business plans in Argentina or on its overall business, financial condition and results of operations. | |||||||||||||
Highly Inflationary Status in Venezuela | ' | ||||||||||||
Highly inflationary status in Venezuela | |||||||||||||
During May 2009, the International Practices Task Force discussed the highly inflationary status of the Venezuelan economy. | |||||||||||||
The cumulative three year inflation rate as of December 31, 2009 exceeded 100%. According to U.S. GAAP, calendar year-end companies should apply highly inflationary accounting as from January 1st of the year in which the status of hyperinflationary is raised. Therefore, the Company transitioned its Venezuelan operations to highly inflationary status as of January 1, 2010 considering the U.S. dollar as its functional currency. As of the date of these consolidated financial statements, the cumulative three-year inflation rate approximates 100%. The Company continues to treat the economy of Venezuela as highly-inflationary. | |||||||||||||
Income and Asset Taxes | ' | ||||||||||||
Income and asset taxes | |||||||||||||
The Company is subject to U.S. and foreign income taxes. The Company accounts for income taxes following the liability method of accounting which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. The Company’s income tax expense consists of taxes currently payable, if any, plus the change during the period in the Company’s deferred tax assets and liabilities. | |||||||||||||
According to Argentine law, from fiscal year 2008, the Company’s Argentine subsidiary has been a beneficiary of a software development law. Part of the benefits obtained from being a beneficiary of the aforementioned law is a relief of 60% of total income tax determined in each year, thus resulting in an effective tax rate in Argentina lower than the income tax law statutory rate. The law expires during 2014. | |||||||||||||
Aggregate tax relief totaled $11,592,825, $9,204,773 and $6,140,713 for the years ended December 31, 2013, 2012 and 2011, respectively. Aggregate per share effect of the Argentine tax holiday amounts to $0.26, $0.21 and $0.14 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
In addition, the recently acquired software development company (see Note 6), located in the Province of Cordoba, Argentina, is also beneficiary of the aforementioned income tax holiday. | |||||||||||||
If the Company had not been granted the Argentine tax holiday, it would have pursued an alternative tax planning strategy and, therefore, the impact of not having this particular benefit would not necessarily be the abovementioned dollar and per share effect. | |||||||||||||
On August 17, 2011, the Argentine government issued a new software development law and on September 9, 2013 the regulatory decree was issued, which established the new requirement to become beneficiary of the new software development law. The new decree establishes compliance requirements with annual incremental ratios related to exports of services and research and development expenses that must be achieved to remain within the tax holiday. The Argentine operation will have to achieve certain required ratios annually under the new software development law. | |||||||||||||
If we apply and we are successful in being admitted as beneficiaries under the new law, the current income tax relief would decrease, but it is currently estimated that the Argentine effective income tax rate would still be materially lower than the statutory income tax rate. Also, the tax holiday under the new law would last until 2019. | |||||||||||||
The Industry Secretary resolution which rules , among other provisions, on the mechanism to file the information to obtain the benefits derived from the new software development law was issued in late February 2014, and the Company is currently analyzing its provisions for both applying to qualify under the new law, and the potential effects that this new rule may have on the ability to continue to be benefited under the current law in 2014, as well as in subsequent years under the new law. | |||||||||||||
As of December 31, 2013 and 2012, the Company has included under non-current deferred tax assets caption the foreign tax credits related to the dividend distributions received from its subsidiaries for a total amount of $668,659 and $2,414,440, respectively. Those foreign tax credits will be used to offset the future domestic income tax payable. | |||||||||||||
Uncertainty in Income Taxes | ' | ||||||||||||
Uncertainty in income taxes | |||||||||||||
The Company recognizes, if any, uncertainty in income taxes by applying the accounting prescribed by U.S. GAAP, for which a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return should be considered. It also provides guidance on de-recognition, classification of a liability for unrecognized tax benefits, accounting for interest and penalties, accounting in interim periods, and expanded income tax disclosures. The Company classifies interest and penalties, if any, within income and asset taxes expense, in the statement of income. | |||||||||||||
The Company is subject to taxation in the U.S. and various foreign jurisdictions. The material jurisdictions that are subject to examination by tax authorities for tax years after 2007 primarily include the U.S., Argentina, Brazil, Mexico and Venezuela. | |||||||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||
Recently issued accounting pronouncements | |||||||||||||
In February 2013 the Financial Accounting Standards Board (“FASB”) issued the Accounting Standard Update No. 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company implemented this new standard as of the date of these financial statements. | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance “Joint-and-Several Obligations” clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations, or cash flows. | |||||||||||||
In March 2013, the FASB issued “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity a consensus of the FASB Emerging Issues Task Force” clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a | |||||||||||||
foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations or cash flows. | |||||||||||||
In July 2013, the FASB issued a new accounting standard in response to “EITF Consensus on Presenting an Unrecognized Tax Benefit When net operating loss (NOL) Carryforwards Exist” that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard requires adoption on a prospective basis in the first quarter of 2015; however, early adoption is permitted. The Company does not anticipate that this adoption will have a significant impact on the Company´s financial position, results of operations, or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Assets, Liabilities and Net Assets of Company's Venezuelan Subsidiaries | ' | ||||||||||||
The following table sets forth the assets, liabilities and net assets of the Company’s Venezuelan subsidiaries, before intercompany eliminations, as of December 31, 2013 and 2012 and net revenues for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Venezuelan operations | |||||||||||||
Net Revenues | $ | 84,572,485 | $ | 54,676,170 | $ | 34,828,878 | |||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | 126,873,804 | 62,938,728 | |||||||||||
Liabilities | (62,437,338 | ) | (22,652,965 | ) | |||||||||
Net Assets | $ | 64,436,466 | $ | 40,285,763 | |||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||
Allocation of Net Income Available to Common Shareholders using Two-Class Method | ' | ||||||||||||||||||||||||
The following table shows how net income is allocated using the two-class method for earnings per common share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
Net income | $ | 117,526,263 | $ | 117,526,263 | $ | 101,346,147 | $ | 101,346,147 | $ | 76,796,339 | $ | 76,796,339 | |||||||||||||
Net loss (income) attributable to noncontrolling interests | (18,825 | ) | (18,825 | ) | (98,849 | ) | (98,849 | ) | (16,286 | ) | (16,286 | ) | |||||||||||||
Change in redeemable amount of noncontrolling interest | 9,644 | 9,644 | 359,398 | 359,398 | (610,853 | ) | (610,853 | ) | |||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders corresponding to common stock | $ | 117,517,082 | $ | 117,517,082 | $ | 101,606,696 | $ | 101,606,696 | $ | 76,169,200 | $ | 76,169,200 | |||||||||||||
Net Income Per Share of Common Stock | ' | ||||||||||||||||||||||||
Net income per share of common stock is as follows for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders per common share | $ | 2.66 | $ | 2.66 | $ | 2.3 | $ | 2.3 | $ | 1.73 | $ | 1.73 | |||||||||||||
Numerator: | |||||||||||||||||||||||||
Net income attributable to MercadoLibre, Inc. Shareholders | $ | 117,517,082 | $ | 117,517,082 | $ | 101,606,696 | $ | 101,606,696 | $ | 76,169,200 | $ | 76,169,200 | |||||||||||||
Denominator: | |||||||||||||||||||||||||
Weighted average of common stock outstanding for Basic earnings per share | 44,152,600 | 44,152,600 | 44,147,861 | 44,147,861 | 44,138,397 | 44,138,397 | |||||||||||||||||||
Adjustment for stock options | — | — | — | 1,977 | — | 8,089 | |||||||||||||||||||
Adjustment for shares granted under 2008 LTRP | — | — | — | — | — | 4,951 | |||||||||||||||||||
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 44,152,600 | 44,152,600 | 44,147,861 | 44,149,838 | 44,138,397 | 44,151,437 | |||||||||||||||||||
Shortterm_and_Longterm_Investm1
Short-term and Long-term Investments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||
Composition of Short-Term and Long -Term Investments | ' | ||||||||
The composition of short-term and long-term investments is as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Short-term investments | |||||||||
Time Deposits | $ | 66,677,156 | $ | 87,379,121 | |||||
Sovereign Debt Securities | 5,520,193 | — | |||||||
Corporate Debt Securities | 4,395,865 | 6,315,684 | |||||||
Total | $ | 76,593,214 | $ | 93,694,805 | |||||
Long-term investments | |||||||||
Sovereign Debt Securities | 24,875,697 | 21,453,141 | |||||||
Corporate Debt Securities | 20,844,040 | 45,675,610 | |||||||
Asset Backed Securities | — | 18,826,833 | |||||||
Total | $ | 45,719,737 | $ | 85,955,584 | |||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||
Summary of Balance Sheet Components | ' | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable, net: | |||||||||||||||||
Users | $ | 37,500,773 | $ | 28,667,738 | |||||||||||||
Credit cards and other means of payments | 3,967,585 | 1,545,738 | |||||||||||||||
Advertising | 2,306,622 | 2,537,795 | |||||||||||||||
Others debtors | 1,104,084 | 31,828 | |||||||||||||||
44,879,064 | 32,783,099 | ||||||||||||||||
Allowance for doubtful accounts | (18,994,804 | ) | (12,946,077 | ) | |||||||||||||
$ | 25,884,260 | $ | 19,837,022 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Credit card receivables | |||||||||||||||||
Credit cards and other means of payments | $ | 53,054,922 | $ | 35,976,964 | |||||||||||||
Allowance for chargebacks | (1,009,071 | ) | (160,458 | ) | |||||||||||||
$ | 52,045,851 | $ | 35,816,506 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other current assets: | |||||||||||||||||
VAT credits | $ | 3,589,730 | $ | 4,103,333 | |||||||||||||
Other taxes | 5,128,602 | 5,685,856 | |||||||||||||||
Other | 2,770,513 | 1,614,029 | |||||||||||||||
$ | 11,488,845 | $ | 11,403,218 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other non current assets: | |||||||||||||||||
Legal Deposits | $ | 660,475 | $ | 591,798 | |||||||||||||
Deposit in Court (Note 15) | 22,295,223 | 5,067,712 | |||||||||||||||
Other | 1,443,486 | 458,610 | |||||||||||||||
$ | 24,399,184 | $ | 6,118,120 | ||||||||||||||
Estimated | December 31, | December 31, | |||||||||||||||
useful life | 2013 | 2012 | |||||||||||||||
(years) | |||||||||||||||||
Property and equipment, net: | |||||||||||||||||
Equipment | 5-Mar | $ | 31,819,593 | $ | 22,696,763 | ||||||||||||
Land & Building | 50 | (1) | 105,142,930 | 15,800,900 | |||||||||||||
Furniture and fixtures | 5-Mar | 10,081,433 | 8,785,736 | ||||||||||||||
Software | 3 | 14,720,776 | 12,190,233 | ||||||||||||||
Cars | 3 | 286,397 | 568,609 | ||||||||||||||
162,051,129 | 60,042,241 | ||||||||||||||||
Accumulated depreciation | (30,679,220 | ) | (22,316,019 | ) | |||||||||||||
$ | 131,371,909 | $ | 37,726,222 | ||||||||||||||
-1 | Estimated useful life attributable to “Buildings”. | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||
Cost of net revenues | $ | 1,168,570 | $ | 859,364 | $ | 833,898 | |||||||||||
Product and technology development | 8,622,723 | 6,112,771 | 5,013,799 | ||||||||||||||
Sales and marketing | 213,018 | 190,143 | 151,860 | ||||||||||||||
General and administrative | 1,874,254 | 1,797,015 | 1,268,518 | ||||||||||||||
$ | 11,878,565 | $ | 8,959,293 | $ | 7,268,075 | ||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts payable and accrued expenses: | |||||||||||||||||
Accounts payable | $ | 26,658,109 | $ | 14,821,511 | |||||||||||||
Accrued expenses | |||||||||||||||||
Advertising | 2,513,890 | 2,265,338 | |||||||||||||||
Professional fees | 1,571,771 | 1,064,502 | |||||||||||||||
Other expense provisions | 3,658,422 | 5,822,120 | |||||||||||||||
Other current liabilities | 3,141 | 3,142 | |||||||||||||||
$ | 34,405,333 | $ | 23,976,613 | ||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Current loans payable and other financial liabilities: | |||||||||||||||||
Unsecured lines of credit | $ | 13,348,861 | $ | — | |||||||||||||
Car leasing financing (1) | 21,962 | 84,570 | |||||||||||||||
$ | 13,370,823 | $ | 84,570 | ||||||||||||||
Non current loans payable and other financial liabilities: | December 31, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Unsecured lines of credit | $ | 2,489,819 | $ | — | |||||||||||||
Car leasing financing (1) | — | 59,493 | |||||||||||||||
$ | 2,489,819 | $ | 59,493 | ||||||||||||||
-1 | See note 15 – Capital Leases | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Non current other liabilities: | |||||||||||||||||
Provisions and contingencies | $ | 3,330,108 | $ | 2,800,197 | |||||||||||||
Other | 369,001 | 36,953 | |||||||||||||||
$ | 3,699,109 | $ | 2,837,150 | ||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Accumulated other comprehensive income: | |||||||||||||||||
Foreign currency translation | $ | (87,481,437 | ) | $ | (49,542,692 | ) | $ | (37,968,003 | ) | ||||||||
Unrealized gains on investments | 36,626 | 1,146,662 | 1,394,887 | ||||||||||||||
Estimated tax loss on unrealized gains on investments | (11,159 | ) | (387,098 | ) | (470,230 | ) | |||||||||||
$ | (87,455,970 | ) | $ | (48,783,128 | ) | $ | (37,043,346 | ) | |||||||||
Summary of Changes Accumulated Balances of Other Comprehensive Income | ' | ||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the year December 31, 2013: | |||||||||||||||||
Unrealized | Foreign | Estimated tax | Total | ||||||||||||||
Gains on | Currency | (expense) | |||||||||||||||
Investments | Translation | benefit | |||||||||||||||
Beginning balance | $ | 1,146,662 | $ | (49,542,692 | ) | $ | (387,098 | ) | $ | (48,783,128 | ) | ||||||
Other comprehensive income before reclassifications | 36,626 | (37,938,745 | ) | (11,159 | ) | (37,913,278 | ) | ||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | $ | (1,146,662 | ) | — | $ | 387,098 | (759,564 | ) | |||||||||
Net current period other comprehensive income | (1,110,036 | ) | (37,938,745 | ) | 375,939 | (38,672,842 | ) | ||||||||||
Ending balance | $ | 36,626 | $ | (87,481,437 | ) | $ | (11,159 | ) | $ | (87,455,970 | ) | ||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013: | |||||||||||||||||
Details about Accumulated | Amount of Gain (Loss) | Affected Line Item | |||||||||||||||
Other Comprehensive Income | Reclassified from | in the Statement of Income | |||||||||||||||
Components | Accumulated Other | ||||||||||||||||
Comprehensive | |||||||||||||||||
Income | |||||||||||||||||
Unrealized gains on investments | $ | 1,146,662 | Interest income and other financial gains | ||||||||||||||
Estimated tax loss on unrealized gains on investments | -387,098 | Income / asset tax expense | |||||||||||||||
Total reclassifications for the year | $ | 759,564 | Total, net of income taxes | ||||||||||||||
Business_Combinations_Goodwill1
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Allocation of Cash Paid in Acquisition | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the allocation of the cash paid in the acquisition: | |||||||||||||||||||||||||||||||||
Net Tangible Assets | $ | 153,349 | |||||||||||||||||||||||||||||||
Identifiable Intangible Assets | 3,290,998 | ||||||||||||||||||||||||||||||||
Deferred Tax Liabilities | (987,299 | ) | |||||||||||||||||||||||||||||||
Goodwill | 6,663,045 | ||||||||||||||||||||||||||||||||
Noncontrolling interest | (3,648,037 | ) | |||||||||||||||||||||||||||||||
Aggregate Purchase Price | $ | 5,472,056 | |||||||||||||||||||||||||||||||
Preliminary Purchase Price Allocation for Acquisition | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the definitive purchase price allocation for the acquisition: | |||||||||||||||||||||||||||||||||
Net assets acquired | $ | 237,891 | |||||||||||||||||||||||||||||||
Goodwill | 2,668,661 | ||||||||||||||||||||||||||||||||
Purchase price | 2,906,552 | ||||||||||||||||||||||||||||||||
Escrow for employment relationship | 547,945 | ||||||||||||||||||||||||||||||||
Aggregate price paid | $ | 3,454,497 | |||||||||||||||||||||||||||||||
Composition of Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
The composition of goodwill and intangible assets is as follows: | |||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Goodwill | $ | 55,101,218 | $ | 60,366,063 | |||||||||||||||||||||||||||||
Intangible assets with indefinite lives | |||||||||||||||||||||||||||||||||
- Trademarks | 5,238,090 | 5,326,057 | |||||||||||||||||||||||||||||||
Amortizable intangible assets | |||||||||||||||||||||||||||||||||
- Licenses and others | 3,430,003 | 3,829,668 | |||||||||||||||||||||||||||||||
- Non-compete agreement | 1,025,605 | 1,195,509 | |||||||||||||||||||||||||||||||
- Customer list | 1,568,190 | 1,708,770 | |||||||||||||||||||||||||||||||
Total intangible assets | $ | 11,261,888 | $ | 12,060,004 | |||||||||||||||||||||||||||||
Accumulated amortization | (4,670,303 | ) | (4,780,139 | ) | |||||||||||||||||||||||||||||
Total intangible assets, net | $ | 6,591,585 | $ | 7,279,865 | |||||||||||||||||||||||||||||
Table Showing Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Brazil | Argentina | Chile | Mexico | Venezuela | Colombia | Other Countries | Total | ||||||||||||||||||||||||||
Balance, beginning of the year | $ | 10,706,281 | $ | 18,889,094 | $ | 7,115,211 | $ | 11,404,780 | $ | 4,846,030 | $ | 5,897,136 | $ | 1,507,531 | $ | 60,366,063 | |||||||||||||||||
- Business acquisition | 1,307,644 | 659,159 | — | 186,806 | 405,637 | 69,385 | 40,030 | 2,668,661 | |||||||||||||||||||||||||
- Effect of exchange rates change | (1,647,907 | ) | (4,872,108 | ) | (595,017 | ) | (215,446 | ) | — | (460,459 | ) | (142,569 | ) | (7,933,506 | ) | ||||||||||||||||||
Balance, end of the year | $ | 10,366,018 | $ | 14,676,145 | $ | 6,520,194 | $ | 11,376,140 | $ | 5,251,667 | $ | 5,506,062 | $ | 1,404,992 | $ | 55,101,218 | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Brazil | Argentina | Chile | Mexico | Venezuela | Colombia | Other Countries | Total | ||||||||||||||||||||||||||
Balance, beginning of year | $ | 11,663,443 | $ | 21,583,774 | $ | 6,577,459 | $ | 10,621,839 | $ | 4,846,030 | $ | 5,367,526 | $ | 1,433,877 | $ | 62,093,948 | |||||||||||||||||
- Effect of exchange rates changes | (957,162 | ) | (2,694,680 | ) | 537,752 | 782,941 | — | 529,610 | 73,654 | (1,727,885 | ) | ||||||||||||||||||||||
Balance, end of the year | $ | 10,706,281 | $ | 18,889,094 | $ | 7,115,211 | $ | 11,404,780 | $ | 4,846,030 | $ | 5,897,136 | $ | 1,507,531 | $ | 60,366,063 | |||||||||||||||||
Expected Intangible Asset Amortization Expense | ' | ||||||||||||||||||||||||||||||||
For year ended 12/31/2014 | $ | 634,836 | |||||||||||||||||||||||||||||||
For year ended 12/31/2015 | 540,833 | ||||||||||||||||||||||||||||||||
For year ended 12/31/2016 | 177,826 | ||||||||||||||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||||||||||||||
$ | 1,353,495 | ||||||||||||||||||||||||||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Financial Performance of Company's Reporting Segments | ' | ||||||||||||||||||||||||
The following tables summarize the financial performance of the Company’s reporting segments: | |||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 206,394,480 | $ | 122,123,347 | $ | 32,843,482 | $ | 84,572,485 | $ | 26,660,915 | $ | 472,594,709 | |||||||||||||
Direct costs | (119,422,924 | ) | (66,492,770 | ) | (18,558,010 | ) | (29,578,762 | ) | (12,339,112 | ) | (246,391,578 | ) | |||||||||||||
Direct contribution | 86,971,556 | 55,630,577 | 14,285,472 | 54,993,723 | 14,321,803 | 226,203,131 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (72,664,076 | ) | |||||||||||||||||||||||
Income from operations | 153,539,055 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 10,668,593 | ||||||||||||||||||||||||
Interest expense and other financial losses | (2,355,929 | ) | |||||||||||||||||||||||
Foreign currency gain | 1,258,476 | ||||||||||||||||||||||||
Other losses, net | (751 | ) | |||||||||||||||||||||||
Net income before income / asset tax expense | $ | 163,109,444 | |||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 179,639,592 | $ | 88,513,640 | $ | 26,987,130 | $ | 54,676,170 | $ | 23,784,962 | $ | 373,601,494 | |||||||||||||
Direct costs | (104,501,652 | ) | (41,841,587 | ) | (14,912,375 | ) | (17,768,989 | ) | (11,458,627 | ) | (190,483,230 | ) | |||||||||||||
Direct contribution | 75,137,940 | 46,672,053 | 12,074,755 | 36,907,181 | 12,326,335 | 183,118,264 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (53,460,393 | ) | |||||||||||||||||||||||
Income from operations | 129,657,871 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 11,877,375 | ||||||||||||||||||||||||
Interest expense and other financial losses | (1,138,379 | ) | |||||||||||||||||||||||
Foreign currency gain | 11,597 | ||||||||||||||||||||||||
Other losses, net | (190,938 | ) | |||||||||||||||||||||||
Net income before income / asset tax expense | 140,217,526 | ||||||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
Brazil | Argentina | Mexico | Venezuela | Other Countries | Total | ||||||||||||||||||||
Net revenues | $ | 165,905,789 | $ | 56,714,941 | $ | 22,275,213 | $ | 34,828,878 | $ | 19,206,804 | $ | 298,931,625 | |||||||||||||
Direct costs | (96,910,310 | ) | (23,463,871 | ) | (12,472,204 | ) | (13,287,279 | ) | (10,062,446 | ) | (156,196,110 | ) | |||||||||||||
Direct contribution | 68,995,479 | 33,251,070 | 9,803,009 | 21,541,599 | 9,144,358 | 142,735,515 | |||||||||||||||||||
Operating expenses and indirect costs of net revenues | (42,963,350 | ) | |||||||||||||||||||||||
Income from operations | 99,772,165 | ||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||
Interest income and other financial gains | 9,905,829 | ||||||||||||||||||||||||
Interest expense and other financial losses | (3,648,733 | ) | |||||||||||||||||||||||
Foreign currency gain | 2,353,005 | ||||||||||||||||||||||||
Other income, net | 73,894 | ||||||||||||||||||||||||
Net income before income / asset tax expense | $ | 108,456,160 | |||||||||||||||||||||||
Allocation of Long-Lived Tangible Assets Based on Geography | ' | ||||||||||||||||||||||||
The following table summarizes the allocation of the long-lived tangible assets based on geography: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
US long-lived tangible assets | $ | 9,131,777 | $ | 6,782,077 | |||||||||||||||||||||
Other countries long-lived tangible assets | |||||||||||||||||||||||||
Argentina | 29,119,057 | 16,955,438 | |||||||||||||||||||||||
Brazil | 5,559,702 | 2,421,618 | |||||||||||||||||||||||
Mexico | 711,200 | 378,653 | |||||||||||||||||||||||
Venezuela | 83,655,816 | 8,455,816 | |||||||||||||||||||||||
Other countries | 3,194,357 | 2,732,620 | |||||||||||||||||||||||
$ | 122,240,132 | $ | 30,944,145 | ||||||||||||||||||||||
Total long-lived tangible assets | $ | 131,371,909 | $ | 37,726,222 | |||||||||||||||||||||
Allocation of Goodwill and Intangible Assets Based on Geography | ' | ||||||||||||||||||||||||
The following table summarizes the allocation of the goodwill and intangible assets based on geography: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
US intangible assets | $ | 10,503 | $ | 21,005 | |||||||||||||||||||||
Other countries goodwill and intangible assets | |||||||||||||||||||||||||
Argentina | 15,575,776 | 20,328,154 | |||||||||||||||||||||||
Brazil | 10,380,974 | 10,724,007 | |||||||||||||||||||||||
Mexico | 14,512,949 | 14,644,795 | |||||||||||||||||||||||
Venezuela | 6,913,604 | 6,595,117 | |||||||||||||||||||||||
Other countries | 14,298,997 | 15,332,850 | |||||||||||||||||||||||
$ | 61,682,300 | $ | 67,624,923 | ||||||||||||||||||||||
Total goodwill and intangible assets | $ | 61,692,803 | $ | 67,645,928 | |||||||||||||||||||||
Consolidated Net Revenues by Similar Products and Services | ' | ||||||||||||||||||||||||
Consolidated net revenues by similar products and services for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||
Consolidated Net Revenues | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Marketplace | $ | 331,338,080 | $ | 261,997,021 | $ | 217,932,815 | |||||||||||||||||||
Non-marketplace (*) | $ | 141,256,629 | $ | 111,604,473 | $ | 80,998,810 | |||||||||||||||||||
Total | $ | 472,594,709 | $ | 373,601,494 | $ | 298,931,625 | |||||||||||||||||||
(*) | Includes, among other things, Ad Sales, Real Estate, Motors, Financing Fees, Off-platform Payment Fees and other ancillary services. |
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Quoted Prices in | Quoted Prices in | ||||||||||||||||||||||||
Balances as of | active markets for | Significant other | Balances as of | active markets for | Significant other | ||||||||||||||||||||
December 31, | identical Assets | observable inputs | December 31, | identical Assets | observable inputs | ||||||||||||||||||||
Description | 2013 | (Level 1) | (Level 2) | 2012 | (Level 1) | (Level 2) | |||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Money Market Funds | $ | 19,630,109 | $ | 19,630,109 | $ | — | $ | 23,033,357 | $ | 23,033,357 | $ | — | |||||||||||||
Corporate Debt Securities | 88,648 | 88,648 | — | — | — | — | |||||||||||||||||||
Investments: | |||||||||||||||||||||||||
Asset backed securities | — | — | — | 18,826,833 | — | 18,826,833 | |||||||||||||||||||
Sovereign Debt Securities | 30,395,890 | 30,395,890 | — | 21,453,141 | 21,453,141 | — | |||||||||||||||||||
Corporate Debt Securities | 25,239,905 | 19,110,709 | 6,129,196 | 51,991,294 | 51,991,294 | — | |||||||||||||||||||
Total Financial Assets | $ | 75,354,552 | $ | 69,225,356 | $ | 6,129,196 | $ | 115,304,625 | $ | 96,477,792 | $ | 18,826,833 | |||||||||||||
Fair Value of Financial Assets and Liabilities Measured at Amortized Cost | ' | ||||||||||||||||||||||||
The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Balances as of | Significant other | Balances as of | Significant other | ||||||||||||||||||||||
December 31, | observable inputs | December 31, | observable inputs | ||||||||||||||||||||||
2013 | (Level 2) | 2012 | (Level 2) | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Time Deposits | $ | 66,677,156 | 66,677,156 | $ | 87,379,121 | 87,379,121 | |||||||||||||||||||
Accounts receivable | 25,884,260 | 25,884,260 | 19,837,022 | 19,837,022 | |||||||||||||||||||||
Credit Cards receivable | 52,045,851 | 52,045,851 | 35,816,506 | 35,816,506 | |||||||||||||||||||||
Prepaid expenses | 3,836,081 | 3,836,081 | 2,080,079 | 2,080,079 | |||||||||||||||||||||
Other assets | 35,888,029 | 35,888,029 | 17,521,338 | 17,521,338 | |||||||||||||||||||||
Total Assets | $ | 184,331,377 | $ | 184,331,377 | $ | 162,634,066 | $ | 162,634,066 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Accounts and funds payable | $ | 34,405,333 | $ | 34,405,333 | $ | 23,976,613 | $ | 23,976,613 | |||||||||||||||||
Funds payable to customers | 129,038,663 | 129,038,663 | 101,472,662 | 101,472,662 | |||||||||||||||||||||
Salaries and social security payable | 15,863,028 | 15,863,028 | 14,994,186 | 14,994,186 | |||||||||||||||||||||
Tax payable | 17,854,110 | 17,854,110 | 19,210,568 | 19,210,568 | |||||||||||||||||||||
Dividends payable | 6,313,869 | 6,313,869 | 4,812,396 | 4,812,396 | |||||||||||||||||||||
Loans payable and other financial liabilities | 15,860,642 | 15,860,642 | 144,063 | 144,063 | |||||||||||||||||||||
Other liabilities | 3,699,109 | 3,699,109 | 2,837,150 | 2,837,150 | |||||||||||||||||||||
Total Liabilities | $ | 223,034,754 | $ | 223,034,754 | $ | 167,447,638 | $ | 167,447,638 | |||||||||||||||||
Fair Value of Money Market Funds, Short and Long-Term Investments Classified as Available for Sale Securities | ' | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows: | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated Fair | ||||||||||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||||||||||
Gains | Losses (1) | ||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||
Money Market Funds | $ | 19,631,550 | $ | 2,619 | $ | (4,060 | ) | $ | 19,630,109 | ||||||||||||||||
Corporate Debt Securities | 88,640 | 8 | — | 88,648 | |||||||||||||||||||||
Total Cash and cash equivalents | $ | 19,720,190 | $ | 2,627 | $ | (4,060 | ) | $ | 19,718,757 | ||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 5,518,577 | $ | 1,616 | $ | — | $ | 5,520,193 | |||||||||||||||||
Corporate Debt Securities | 4,393,594 | 2,271 | — | 4,395,865 | |||||||||||||||||||||
Total Short-term investments | $ | 9,912,171 | $ | 3,887 | $ | — | $ | 9,916,058 | |||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 24,881,440 | $ | 483 | $ | (6,226 | ) | $ | 24,875,697 | ||||||||||||||||
Corporate Debt Securities | 20,804,125 | 59,437 | (19,522 | ) | 20,844,040 | ||||||||||||||||||||
Total Long-term investments | $ | 45,685,565 | $ | 59,920 | $ | (25,748 | ) | $ | 45,719,737 | ||||||||||||||||
Total | $ | 75,317,926 | $ | 66,434 | $ | (29,808 | ) | $ | 75,354,552 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Estimated Fair | ||||||||||||||||||||||
Gains | Losses (1) | Value | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||
Money Market Funds | $ | 23,030,970 | $ | 3,400 | $ | (1,013 | ) | $ | 23,033,357 | ||||||||||||||||
Total Cash and cash equivalents | $ | 23,030,970 | $ | 3,400 | $ | (1,013 | ) | $ | 23,033,357 | ||||||||||||||||
Short-term investments | |||||||||||||||||||||||||
Corporate Debt Securities | $ | 6,314,939 | $ | 1,032 | $ | (287 | ) | $ | 6,315,684 | ||||||||||||||||
Total Short-term investments | $ | 6,314,939 | $ | 1,032 | $ | (287 | ) | $ | 6,315,684 | ||||||||||||||||
Long-term investments | |||||||||||||||||||||||||
Sovereign Debt Securities | $ | 21,153,227 | $ | 299,914 | $ | — | $ | 21,453,141 | |||||||||||||||||
Corporate Debt Securities | 45,089,831 | 630,807 | (45,028 | ) | 45,675,610 | ||||||||||||||||||||
Asset Backed Securities (2) | 18,568,996 | 301,544 | (43,707 | ) | 18,826,833 | ||||||||||||||||||||
Total Long-term investments | $ | 84,812,054 | $ | 1,232,265 | $ | (88,735 | ) | $ | 85,955,584 | ||||||||||||||||
Total | $ | 114,157,963 | $ | 1,236,697 | $ | (90,035 | ) | $ | 115,304,625 | ||||||||||||||||
-1 | Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
-2 | Asset backed securities have investment grade credit ratings. | ||||||||||||||||||||||||
Estimated Fair Values of Money Market Funds, Short-Term and Long-Term Investments | ' | ||||||||||||||||||||||||
As of December 31, 2013, the estimated fair values of money market funds, short-term and long-term investments classified by its effective maturities are as follows: | |||||||||||||||||||||||||
One year or less | $ | 29,634,815 | |||||||||||||||||||||||
One year to two years | 18,959,159 | ||||||||||||||||||||||||
Two years to three years | 13,126,825 | ||||||||||||||||||||||||
Three years to four years | 9,266,503 | ||||||||||||||||||||||||
Four years to five years | 4,367,250 | ||||||||||||||||||||||||
Total | $ | 75,354,552 | |||||||||||||||||||||||
Compensation_Plan_for_Outside_1
Compensation Plan for Outside Directors (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation Related Costs [Abstract] | ' | ||||||||||||
Summary of Total Accrued Compensation Cost Related to Outside Directors | ' | ||||||||||||
The following table summarizes the total accrued compensation cost related to outside Directors, included in operating expenses in the accompanying consolidated statement of income, for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Chairman Fee | $ | 55,858 | $ | 57,680 | $ | 49,471 | |||||||
Adjustable Award | 575,242 | 282,703 | 344,427 | ||||||||||
Non-adjustable Award | 322,538 | 242,179 | 176,682 | ||||||||||
$ | 953,638 | $ | 582,562 | $ | 570,580 | ||||||||
Stock_Option_Plan_and_Restrict1
Stock Option Plan and Restricted Shares (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
Stock option activity is as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted- | Weighted- | ||||||||||||||||
Number of | average | Number of | average | ||||||||||||||
options | exercise price | options | exercise price | ||||||||||||||
Outstanding, beginning of year | 2,013 | $ | 1.5 | 5,813 | $ | 1.5 | |||||||||||
Exercised | (2,013 | ) | 1.5 | (3,800 | ) | 1.5 | |||||||||||
Outstanding, end of the year | — | — | 2,013 | 1.5 | |||||||||||||
Exercisable, end of the year | — | $ | — | 2,013 | 1.5 | ||||||||||||
Summary of Stock Options Outstanding | ' | ||||||||||||||||
The following details the outstanding options at December 31, 2012 (no options were outstanding as of December 31, 2013): | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||
Weighted-average | |||||||||||||||||
remaining | |||||||||||||||||
Exercise | Number of | contractual | Number of | ||||||||||||||
price | options | life (years) | options | ||||||||||||||
$1.50 | 2,013 | 1.5 | 2,013 | ||||||||||||||
2,013 | 1.5 | 2,013 | |||||||||||||||
Weighted average Exercise Price | |||||||||||||||||
- Options outstanding | $ | 1.50 | |||||||||||||||
- Options excercisable | $ | 1.50 | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Aggregate intrinsic value | |||||||||||||||||
- Options outstanding | $ | — | $ | 155,102 | |||||||||||||
- Options exercisable | $ | — | $ | 155,102 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Pretax Income | ' | ||||||||||||
The components of pretax income in consolidated companies for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (1,641,203 | ) | $ | (753,531 | ) | $ | (680,845 | ) | ||||
Brazil | 61,573,972 | 52,460,902 | 52,457,909 | ||||||||||
Argentina | 46,438,235 | 40,466,354 | 23,855,329 | ||||||||||
Venezuela | 36,855,421 | 29,620,800 | 16,839,295 | ||||||||||
Mexico | 9,490,012 | 7,320,041 | 6,554,066 | ||||||||||
Other Countries | 10,393,007 | 11,102,960 | 9,430,406 | ||||||||||
$ | 163,109,444 | $ | 140,217,526 | $ | 108,456,160 | ||||||||
Summary of Income / Asset Tax Expense | ' | ||||||||||||
Income / asset tax is composed of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 49,488,472 | $ | 39,371,170 | $ | 29,848,193 | |||||||
Deferred: | |||||||||||||
Federal | 799,166 | 998,536 | 2,114,486 | ||||||||||
Foreign | (4,913,379 | ) | (1,586,024 | ) | (340,950 | ) | |||||||
(4,114,213 | ) | (587,488 | ) | 1,773,536 | |||||||||
Asset Tax: | 45,374,259 | 38,783,682 | 31,621,729 | ||||||||||
Foreign | 208,922 | 87,697 | 38,092 | ||||||||||
Income / asset tax expense | $ | 45,583,181 | $ | 38,871,379 | $ | 31,659,821 | |||||||
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 2013, 2012 and 2011 to income before taxes: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income before income tax | $ | 163,109,444 | $ | 140,217,526 | $ | 108,456,160 | |||||||
Weighted average income tax rate | 34 | % | 33 | % | 33 | % | |||||||
Income tax expense at blended tax rate | $ | 55,241,195 | $ | 46,593,938 | $ | 35,727,808 | |||||||
Permanent differences: | |||||||||||||
Non-deductible expenses | 1,777,180 | 1,657,662 | 2,528,463 | ||||||||||
Dividend distributions | 1,414,915 | 847,798 | 2,132,063 | ||||||||||
Non-taxable income (*) | (12,321,790 | ) | (9,852,468 | ) | (6,497,097 | ) | |||||||
Currency translation | (1,552,169 | ) | (1,213,340 | ) | (916,166 | ) | |||||||
Change in valuation allowance | 736,910 | 572,790 | (1,604,230 | ) | |||||||||
Business Combination | 34,706 | — | — | ||||||||||
True up | 43,312 | 177,302 | 250,888 | ||||||||||
Income tax expense | $ | 45,374,259 | $ | 38,783,682 | $ | 31,621,729 | |||||||
(*) | 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, 2013 and 2012: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Allowance for doubtful accounts | $ | 8,210,283 | $ | 5,894,658 | |||||||||
Property and equipment, net | 147,263 | 145,532 | |||||||||||
Accounts payable and accrued expenses | 2,014,026 | 390,655 | |||||||||||
Payroll and social security payable | 3,960,481 | 2,581,787 | |||||||||||
Other liabilities | — | 654,535 | |||||||||||
Foreign exchange effect | 22,714 | — | |||||||||||
Customer lists | 47,929 | 54,943 | |||||||||||
Taxes payable | 1,058,659 | 1,267,713 | |||||||||||
Provisions | 3,553,360 | 3,071,331 | |||||||||||
Foreign tax credit | 668,659 | 2,414,440 | |||||||||||
Tax loss carryforwards | 2,451,524 | 3,653,373 | |||||||||||
Total deferred tax assets | 22,134,898 | 20,128,967 | |||||||||||
Valuation allowance | (3,089,113 | ) | (3,226,177 | ) | |||||||||
Total deferred tax assets, net | 19,045,785 | 16,902,790 | |||||||||||
Deferred tax liabilities | |||||||||||||
Unrealized net gains on investments | (10,767 | ) | (392,048 | ) | |||||||||
Property and equipment, net | (2,883,458 | ) | (3,145,196 | ) | |||||||||
Customer lists | (45,963 | ) | (104,686 | ) | |||||||||
Non compete agreement | (26,019 | ) | (54,391 | ) | |||||||||
Outside basis dividends | (668,659 | ) | (3,538,970 | ) | |||||||||
Trademarks | (1,693,256 | ) | (1,723,133 | ) | |||||||||
Other liabilities | (11,237 | ) | — | ||||||||||
Foreign exchange effect | — | (16,866 | ) | ||||||||||
Total deferred tax liabilities | (5,339,359 | ) | (8,975,290 | ) | |||||||||
Net deferred tax assets | $ | 13,706,426 | $ | 7,927,500 | |||||||||
Tax Loss Carryforwards | ' | ||||||||||||
As of December 31, 2013, consolidated loss carryforwards for income tax purposes were $7,666,353. If not utilized, tax loss carryforwards will begin to expire as follows: | |||||||||||||
2014 | $ | 3,622 | |||||||||||
2015 | 843,246 | ||||||||||||
2016 | 373,710 | ||||||||||||
2017 | — | ||||||||||||
Thereafter | 1,859,185 | ||||||||||||
Without due dates | 4,586,590 | ||||||||||||
Total | $ | 7,666,353 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Minimum Remaining Annual Commitments under Non-Cancelable Operating Leases | ' | ||||
Minimum remaining annual commitments under the non-cancelable operating leases are as follows: | |||||
For the year ended December 31, 2014 | $ | 2,811,926 | |||
For the year ended December 31, 2015 | 688,379 | ||||
For the year ended December 31, 2016 | 268,740 | ||||
Thereafter | — | ||||
$ | 3,769,045 | ||||
Long_Term_Retention_Plan_Table
Long Term Retention Plan (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Long Term Retention Plan Additional Compensation Payable in Cash and Shares | ' | ||||||||||||||||||||||||
Payments were to be made in the first quarter on annual basis according to the following vesting schedule: | |||||||||||||||||||||||||
• | Year 1 (2008): 17% | ||||||||||||||||||||||||
• | Year 2 (2009): 22% | ||||||||||||||||||||||||
• | Year 3 (2010): 27% | ||||||||||||||||||||||||
• | Year 4 (2011): 34% | ||||||||||||||||||||||||
Summary of Number of Shares | ' | ||||||||||||||||||||||||
The following table summarizes the number of shares for each of the following groups: | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
Number of Shares | 2012 | 2011 | |||||||||||||||||||||||
Granted | 21,591 | 21,591 | |||||||||||||||||||||||
Non-vested at the beginning of the year | 5,100 | 10,163 | |||||||||||||||||||||||
Non-vested at the end of the year | — | 5,100 | |||||||||||||||||||||||
Forfeited | 4,218 | 4,218 | |||||||||||||||||||||||
Vested and paid to the employees | 17,373 | 12,273 | |||||||||||||||||||||||
Outstanding | — | 5,100 | |||||||||||||||||||||||
Summary of Option Activity | ' | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||
Weighted-average | Weighted-average | Weighted-average | |||||||||||||||||||||||
Aggregate | remaining | Aggregate | remaining | Aggregate | remaining | ||||||||||||||||||||
Intrinsic | contractual | Intrinsic | contractual | Intrinsic | contractual | ||||||||||||||||||||
value | life (years) | value | life (years) | value | life (years) | ||||||||||||||||||||
Outstanding LTRP 2009 | 4,305,518 | 1.75 | 3,854,742 | 2.25 | 5,070,581 | 2.75 | |||||||||||||||||||
Outstanding LTRP 2010 | 2,884,551 | 2.25 | 3,461,461 | 2.75 | 3,818,221 | 3.25 | |||||||||||||||||||
Outstanding LTRP 2011 | 4,093,119 | 2.75 | 3,288,647 | 3.25 | 3,754,634 | 3.75 | |||||||||||||||||||
Outstanding LTRP 2012 | 4,806,997 | 3.25 | 3,800,492 | 3.75 | — | — | |||||||||||||||||||
Outstanding LTRP 2013 | 10,167,959 | 2.75 | — | — | — | — | |||||||||||||||||||
Long Term Retention Plans Accrued Compensation Expense | ' | ||||||||||||||||||||||||
The following tables summarize the LTRP accrued compensation expense for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
LTRP 2008 | — | 20,595 | 98,451 | ||||||||||||||||||||||
LTRP 2009 | 1,562,957 | 587,106 | 1,457,838 | ||||||||||||||||||||||
LTRP 2010 | 1,611,521 | 1,006,740 | 1,330,238 | ||||||||||||||||||||||
LTRP 2011 | 1,698,285 | 1,236,275 | 1,519,760 | ||||||||||||||||||||||
LTRP 2012 | 2,013,011 | 1,603,142 | — | ||||||||||||||||||||||
LTRP 2013 | 4,759,303 | — | — | ||||||||||||||||||||||
$ | 11,645,077 | $ | 4,453,858 | $ | 4,406,287 | ||||||||||||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Summary of Valuation and Qualifying Accounts | ' | ||||||||||||||||
The following table summarizes valuation and qualifying accounts activity during the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Charged / | |||||||||||||||||
Balance at | credited to | Charges | Balance | ||||||||||||||
beginning of | Net income / | Utilized / | at end of | ||||||||||||||
year | (loss) | Write-offs | year | ||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
Year ended December 31, 2011 | 11,560,568 | 17,560,508 | (13,169,579 | ) | 15,951,497 | ||||||||||||
Year ended December 31, 2012 | 15,951,497 | 17,280,243 | (20,285,663 | ) | 12,946,077 | ||||||||||||
Year ended December 31, 2013 | 12,946,077 | 19,093,704 | (13,044,977 | ) | 18,994,804 | ||||||||||||
Credit cards receivable allowance for chargebacks | |||||||||||||||||
Year ended December 31, 2011 | 133,632 | 1,376,361 | (1,304,886 | ) | 205,107 | ||||||||||||
Year ended December 31, 2012 | 205,107 | 414,145 | (458,794 | ) | 160,458 | ||||||||||||
Year ended December 31, 2013 | 160,458 | 877,312 | (28,699 | ) | 1,009,071 | ||||||||||||
Tax valuation allowance | |||||||||||||||||
Year ended December 31, 2011 | 4,818,253 | (1,878,518 | ) | (54,139 | ) | 2,885,596 | |||||||||||
Year ended December 31, 2012 | 2,885,596 | 837,473 | (496,892 | ) | 3,226,177 | ||||||||||||
Year ended December 31, 2013 | 3,226,177 | 398,223 | (535,287 | ) | 3,089,113 | ||||||||||||
Contingencies | |||||||||||||||||
Year ended December 31, 2011 | 1,648,534 | 2,178,717 | (2,062,009 | ) | 1,765,242 | ||||||||||||
Year ended December 31, 2012 | 1,765,242 | 2,700,988 | (1,666,033 | ) | 2,800,197 | ||||||||||||
Year ended December 31, 2013 | 2,800,197 | 3,358,538 | (2,828,627 | ) | 3,330,108 |
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Consolidated Quarterly Financial Information | ' | ||||||||||||||||
The following tables present certain consolidated quarterly financial information for each of the last twelve quarters for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | |||||||||||||||||
Net Revenues | $ | 102,725,747 | $ | 112,183,360 | $ | 123,055,431 | $ | 134,630,171 | |||||||||
Gross profit | 74,076,580 | 81,106,149 | 88,910,442 | 98,424,659 | |||||||||||||
Net Income | 17,522,591 | 30,021,018 | 29,146,247 | 40,836,407 | |||||||||||||
Net Income per share-basic | 0.4 | 0.67 | 0.66 | 0.93 | |||||||||||||
Net Income per share-diluted | 0.4 | 0.67 | 0.66 | 0.93 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,151,323 | 44,152,933 | 44,152,933 | 44,153,185 | |||||||||||||
Diluted | 44,151,357 | 44,152,933 | 44,152,933 | 44,153,185 | |||||||||||||
2012 | |||||||||||||||||
Net Revenues | $ | 83,736,006 | $ | 88,844,059 | $ | 97,266,784 | $ | 103,754,645 | |||||||||
Gross profit | 62,639,709 | 64,951,178 | 71,573,179 | 76,351,784 | |||||||||||||
Net Income | 19,637,038 | 25,394,824 | 26,067,897 | 30,246,388 | |||||||||||||
Net Income per share-basic | 0.45 | 0.57 | 0.59 | 0.69 | |||||||||||||
Net Income per share-diluted | 0.45 | 0.57 | 0.59 | 0.69 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,142,076 | 44,147,999 | 44,150,387 | 44,150,920 | |||||||||||||
Diluted | 44,147,796 | 44,152,133 | 44,157,321 | 44,152,895 | |||||||||||||
2011 | |||||||||||||||||
Net Revenues | $ | 61,459,668 | $ | 69,378,160 | $ | 81,628,144 | $ | 86,465,653 | |||||||||
Gross profit | 47,127,964 | 52,439,042 | 61,567,671 | 65,741,114 | |||||||||||||
Net Income | 14,057,634 | 14,820,826 | 26,296,449 | 21,621,431 | |||||||||||||
Net Income per share-basic | 0.32 | 0.34 | 0.6 | 0.47 | |||||||||||||
Net Income per share-diluted | 0.32 | 0.34 | 0.6 | 0.47 | |||||||||||||
Weighted average shares | |||||||||||||||||
Basic | 44,131,383 | 44,138,105 | 44,141,925 | 44,142,020 | |||||||||||||
Diluted | 44,147,667 | 44,152,296 | 44,151,218 | 44,152,658 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | 31-May-13 | 31-May-13 | Apr. 30, 2013 | Sep. 30, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 22, 2013 | Sep. 14, 2011 | Dec. 31, 2010 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | 31-May-13 | 31-May-13 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | VEF | sqm | USD ($) | USD ($) | USD ($) | USD ($) | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Venezuelan Operations [Member] | SITME [Member] | SITME [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Internet Domain Names [Member] | United States [Member] | United States [Member] | Foreign [Member] | Foreign [Member] | Buenos Aires [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | ||||||
sqm | ExchangeRate | USD ($) | VEF | ExchangeRate | ExchangeRate | USD ($) | USD ($) | VEF | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Customer | Customer | Customer | Minimum [Member] | Minimum [Member] | Minimum [Member] | Customer | Customer | Minimum [Member] | Minimum [Member] | |||||||||||||||||||||
Floors | ParkingSpaces | ParkingSpaces | USD ($) | VEF | USD ($) | VEF | |||||||||||||||||||||||||||||||||||||
StorageSpaces | StorageSpaces | sqm | |||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenues and operating costs generated in foreign operations | ' | ' | ' | ' | ' | ' | 99.60% | 99.50% | 99.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets and goodwill located in the foreign operations | ' | ' | ' | ' | ' | ' | $183,922,432 | $98,569,068 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents as well as short and long-term, mainly located in the United States of America and Brazil | ' | ' | ' | ' | ' | ' | 262,598,055 | 281,139,391 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash and cash equivalents as well as short and long-term investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39.00% | 36.00% | 61.00% | 64.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Highly liquid investments with original maturity | ' | ' | ' | ' | ' | ' | 'Three months or less | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other-than-temporary impairment on investments | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers accounted for accounts receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | 0 | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 5.00% | ' | ' | 5.00% | 5.00% |
Charge off receivables past due | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit cards receivables due | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax gain recognized on sale of credit card coupons | ' | ' | ' | ' | ' | ' | 49,735,842 | 39,502,228 | 32,566,802 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '5 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company capitalization | ' | ' | ' | ' | ' | ' | 5,387,385 | 3,970,717 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of floors in new office building | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of new office building | ' | 1,158 | 1,158 | 3,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition agreement amount | ' | 20,002,357 | 126,014,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,481,024 | 20,002,357 | 126,014,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition agreement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 495,453 | ' | ' | 52,094,476 | 328,195,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition agreement amount to be paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,184,580 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition agreement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,800,991 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of parking space | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of storage space | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of office property acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,367 | 1,367 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,510,317 | 85,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance amount of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,716,667 | 80,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,716,667 | 80,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Straight-line depreciation method, depreciable life | '50 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average discount rate, long lived assets | ' | ' | ' | ' | ' | ' | 13.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, impairment loss | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes on revenues, total | ' | ' | ' | ' | ' | ' | 28,388,734 | 22,529,191 | 21,387,561 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs, expense incurred total | ' | ' | ' | ' | ' | ' | 31,594,894 | 18,764,629 | 19,914,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Comprehensive income | ' | ' | ' | ' | ' | ' | 78,834,596 | 89,507,516 | 62,135,746 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquisition | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | 100.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Right to acquire remaining percentage of acquisition | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition purchase price consideration description | ' | ' | ' | ' | 'According to the signed agreement, the price for the remaining 40% interest call or put options will be determined by the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the seller's interests as of the exercise date of the call/put option by (B) an amount equal to 3.5 times the amount of invoiced sales of such company for the twelve months period ending on the exercise date. | ' | 'The total consideration to be paid shall be the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the membership interest held by Hasteny as of the date of the Call Notice by (B) an amount equal to 3.5 times the amount of invoiced sales of the Acquired Business for the twelve months period ending on the date of Call Notice. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of remaining portion of ownership interest | ' | ' | ' | ' | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | 1,258,476 | 11,597 | 2,353,005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage increase in cumulative inflation rate | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange rate used to re-measure transactions | ' | ' | ' | ' | ' | ' | 6.3 | ' | ' | ' | ' | ' | ' | ' | ' | 6.3 | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency loss | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of consolidated net assets | ' | ' | ' | ' | ' | ' | 18.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of consolidated cash and investments | ' | ' | ' | ' | ' | ' | 9.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage on relief of total income tax | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of tax benefits obtained from software development law | ' | ' | ' | ' | ' | ' | 'From fiscal year 2008 through fiscal year 2014, the Companybs Argentine subsidiary has been a beneficiary of a software development law. Part of the benefits obtained from being a beneficiary of the aforementioned law is a relief of 60% of total income tax determined in each year, thus resulting in an effective tax rate in Argentina lower than the income tax law statutory rate. The law expires during 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate tax benefit, total | ' | ' | ' | ' | ' | ' | 11,592,825 | 9,204,773 | 6,140,713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate per share effect of the Argentine tax holiday | ' | ' | ' | ' | ' | ' | $0.26 | $0.21 | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign tax credits related to the dividend distributions received from its subsidiaries | ' | ' | ' | ' | ' | ' | $668,659 | $2,414,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Assets, Liabilities and Net Assets of Company's Venezuelan Subsidiaries (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $134,630,171 | $123,055,431 | $112,183,360 | $102,725,747 | $103,754,645 | $97,266,784 | $88,844,059 | $83,736,006 | $86,465,653 | $81,628,144 | $69,378,160 | $61,459,668 | $472,594,709 | $373,601,494 | $298,931,625 |
Assets | 592,362,773 | ' | ' | ' | 478,669,276 | ' | ' | ' | ' | ' | ' | ' | 592,362,773 | 478,669,276 | ' |
Liabilities | -244,879,165 | ' | ' | ' | -184,855,650 | ' | ' | ' | ' | ' | ' | ' | -244,879,165 | -184,855,650 | ' |
Venezuelan Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,572,485 | 54,676,170 | 34,828,878 |
Assets | 126,873,804 | ' | ' | ' | 62,938,728 | ' | ' | ' | ' | ' | ' | ' | 126,873,804 | 62,938,728 | ' |
Liabilities | -62,437,338 | ' | ' | ' | -22,652,965 | ' | ' | ' | ' | ' | ' | ' | -62,437,338 | -22,652,965 | ' |
Net Assets | $64,436,466 | ' | ' | ' | $40,285,763 | ' | ' | ' | ' | ' | ' | ' | $64,436,466 | $40,285,763 | ' |
Net_Income_Per_Share_Allocatio
Net Income Per Share - Allocation of Net Income Available to Common Shareholders using Two-Class Method (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Net income | $117,526,263 | $101,346,147 | $76,796,339 |
Net loss (income) attributable to noncontrolling interests | -18,825 | -98,849 | -16,286 |
Change in redeemable amount of noncontrolling interest | 9,644 | 359,398 | -610,853 |
Net income attributable to MercadoLibre, Inc. Shareholders corresponding to common stock, Basic | 117,517,082 | 101,606,696 | 76,169,200 |
Net income attributable to MercadoLibre, Inc. Shareholders corresponding to common stock, Diluted | $117,517,082 | $101,606,696 | $76,169,200 |
Net_Income_Per_Share_Net_Incom
Net Income Per Share - Net Income Per Share of Common Stock (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net income attributable to MercadoLibre, Inc. per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to MercadoLibre, Inc. per common share, Basic | $0.93 | $0.66 | $0.67 | $0.40 | $0.69 | $0.59 | $0.57 | $0.45 | $0.47 | $0.60 | $0.34 | $0.32 | $2.66 | $2.30 | $1.73 |
Net income attributable to MercadoLibre, Inc. per common share, Diluted | $0.93 | $0.66 | $0.67 | $0.40 | $0.69 | $0.59 | $0.57 | $0.45 | $0.47 | $0.60 | $0.34 | $0.32 | $2.66 | $2.30 | $1.73 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to MercadoLibre, Inc., Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,517,082 | $101,606,696 | $76,169,200 |
Net income attributable to MercadoLibre, Inc., Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,517,082 | $101,606,696 | $76,169,200 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average of common stock outstanding for Basic earnings per share | 44,153,185 | 44,152,933 | 44,152,933 | 44,151,323 | 44,150,920 | 44,150,387 | 44,147,999 | 44,142,076 | 44,142,020 | 44,141,925 | 44,138,105 | 44,131,383 | 44,152,600 | 44,147,861 | 44,138,397 |
Weighted average of common stock outstanding for Diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,152,600 | 44,147,861 | 44,138,397 |
Adjustment for stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,977 | 8,089 |
Adjustment for shares granted under LTRP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,951 |
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 44,153,185 | 44,152,933 | 44,152,933 | 44,151,357 | 44,152,895 | 44,157,321 | 44,152,133 | 44,147,796 | 44,152,658 | 44,151,218 | 44,152,296 | 44,147,667 | 44,152,600 | 44,149,838 | 44,151,437 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Anti-dilutive shares | 0 | 0 | 0 |
Recovered_Sheet1
Short-term and Long-term investments - Composition of Short-term and Long-term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Short-term investments | $76,593,214 | $93,694,805 |
Long-term investments | 45,719,737 | 85,955,584 |
Time Deposits [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Short-term investments | 66,677,156 | 87,379,121 |
Sovereign Debt Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Short-term investments | 5,520,193 | ' |
Long-term investments | 24,875,697 | 21,453,141 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Short-term investments | 4,395,865 | 6,315,684 |
Long-term investments | 20,844,040 | 45,675,610 |
Asset Backed Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Long-term investments | ' | $18,826,833 |
Recovered_Sheet2
Short-term and Long-term investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Amortized Cost And Fair Value Debt Securities [Abstract] | ' | ' | ' |
Unrealized gains of available-for-sale securities, net of tax | $25,467 | $759,564 | $924,657 |
Security considered held-to-maturity securities | $66,677,156 | $87,379,121 | ' |
Balance_sheet_components_Summa
Balance sheet components - Summary of Balance Sheet Components (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Gross, Current | ' | $44,879,064 | $32,783,099 | ' |
Allowance for doubtful accounts | ' | -18,994,804 | -12,946,077 | ' |
Accounts receivable, Net | ' | 25,884,260 | 19,837,022 | ' |
Credit card receivables | ' | 52,045,851 | 35,816,506 | ' |
Other current assets | ' | 11,488,845 | 11,403,218 | ' |
Other non current assets | ' | 24,399,184 | 6,118,120 | ' |
Estimated useful life (years) | '50 years | ' | ' | ' |
Property and equipment, Gross | ' | 162,051,129 | 60,042,241 | ' |
Accumulated depreciation | ' | -30,679,220 | -22,316,019 | ' |
Total long-lived tangible assets | ' | 131,371,909 | 37,726,222 | ' |
Depreciation and amortization | ' | 11,878,565 | 8,959,293 | 7,268,075 |
Accounts payable | ' | 34,405,333 | 23,976,613 | ' |
Unsecured lines of credit | ' | 13,348,861 | ' | ' |
Current loans payable and other financial liabilities | ' | 13,370,823 | 84,570 | ' |
Unsecured lines of credit | ' | 2,489,819 | ' | ' |
Non current loans payable and other financial liabilities | ' | 2,489,819 | 59,493 | ' |
Non current other liabilities | ' | 3,699,109 | 2,837,150 | ' |
Foreign currency translation | ' | -87,481,437 | -49,542,692 | -37,968,003 |
Unrealized gains on investments | ' | 36,626 | 1,146,662 | 1,394,887 |
Estimated tax loss on unrealized gains on investments | ' | -11,159 | -387,098 | -470,230 |
Accumulated other comprehensive income, Total | ' | -87,455,970 | -48,783,128 | -37,043,346 |
Cost of Net Revenues [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | ' | 1,168,570 | 859,364 | 833,898 |
Product and Technology Development [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | ' | 8,622,723 | 6,112,771 | 5,013,799 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | ' | 213,018 | 190,143 | 151,860 |
General and Administrative [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | ' | 1,874,254 | 1,797,015 | 1,268,518 |
Equipment [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Property and equipment, Gross | ' | 31,819,593 | 22,696,763 | ' |
Equipment [Member] | Minimum [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '3 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '5 years | ' | ' |
Land & Building [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '50 years | ' | ' |
Property and equipment, Gross | ' | 105,142,930 | 15,800,900 | ' |
Furniture and Fixtures [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Property and equipment, Gross | ' | 10,081,433 | 8,785,736 | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '3 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '5 years | ' | ' |
Software [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '3 years | ' | ' |
Property and equipment, Gross | ' | 14,720,776 | 12,190,233 | ' |
Cars [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Estimated useful life (years) | ' | '3 years | ' | ' |
Property and equipment, Gross | ' | 286,397 | 568,609 | ' |
Provisions and Contingencies [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Non current other liabilities | ' | 3,330,108 | 2,800,197 | ' |
Other [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Non current other liabilities | ' | 369,001 | 36,953 | ' |
VAT Credits [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other current assets | ' | 3,589,730 | 4,103,333 | ' |
Other Taxes [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other current assets | ' | 5,128,602 | 5,685,856 | ' |
Other [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other current assets | ' | 2,770,513 | 1,614,029 | ' |
Legal Deposits [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other non current assets | ' | 660,475 | 591,798 | ' |
Deposit in Court [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other non current assets | ' | 22,295,223 | 5,067,712 | ' |
Other [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other non current assets | ' | 1,443,486 | 458,610 | ' |
Accounts Payable [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts payable | ' | 26,658,109 | 14,821,511 | ' |
Advertising [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts payable | ' | 2,513,890 | 2,265,338 | ' |
Professional Fee [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts payable | ' | 1,571,771 | 1,064,502 | ' |
Other Expense Provisions [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts payable | ' | 3,658,422 | 5,822,120 | ' |
Other Current Liabilities [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts payable | ' | 3,141 | 3,142 | ' |
Car Leasing Financing [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Current loans payable and other financial liabilities | ' | 21,962 | 84,570 | ' |
Non current loans payable and other financial liabilities | ' | ' | 59,493 | ' |
Users [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Gross, Current | ' | 37,500,773 | 28,667,738 | ' |
Credit Cards and other Means of Payments [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Gross, Current | ' | 3,967,585 | 1,545,738 | ' |
Credit card receivables | ' | 53,054,922 | 35,976,964 | ' |
Advertising [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Gross, Current | ' | 2,306,622 | 2,537,795 | ' |
Others Debtors [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accounts Receivable, Gross, Current | ' | 1,104,084 | 31,828 | ' |
Allowance for Chargebacks [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Credit card receivables | ' | ($1,009,071) | ($160,458) | ' |
Recovered_Sheet3
Balance Sheet Components - Summary of Changes Accumulated Balances of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Beginning balance | ($387,098) | ' | ' |
Other comprehensive income before reclassifications | -11,159 | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income | 387,098 | ' | ' |
Net current period other comprehensive income | 375,939 | ' | ' |
Ending balance | -11,159 | -387,098 | ' |
Beginning balance | -48,783,128 | -37,043,346 | ' |
Other comprehensive income before reclassifications | -37,913,278 | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income | -759,564 | ' | ' |
Net change in accumulated other comprehensive loss, net of income tax | -38,705,712 | -11,484,304 | -14,918,467 |
Ending balance | -87,455,970 | -48,783,128 | -37,043,346 |
Unrealized Gains on Investments [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Beginning balance | 1,146,662 | ' | ' |
Other comprehensive income before reclassifications | 36,626 | ' | ' |
Amount of gain (loss) reclassified from accumulated other comprehensive income | -1,146,662 | ' | ' |
Net current period other comprehensive income | 1,110,036 | ' | ' |
Ending balance | 36,626 | ' | ' |
Foreign Currency Translation [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Beginning balance | -49,542,692 | ' | ' |
Other comprehensive income before reclassifications | -37,938,745 | ' | ' |
Net current period other comprehensive income | 37,938,745 | ' | ' |
Ending balance | ($87,481,437) | ' | ' |
Balance_sheet_components_Compr
Balance sheet components - Comprehensive Income Components (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated tax loss on unrealized gains on investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($45,583,181) | ($38,871,379) | ($31,659,821) |
Total reclassifications for the year | 40,836,407 | 29,146,247 | 30,021,018 | 17,522,591 | 30,246,388 | 26,067,897 | 25,394,824 | 19,637,038 | 21,621,431 | 26,296,449 | 14,820,826 | 14,057,634 | ' | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total reclassifications for the year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 759,564 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Realized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains on investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,146,662 | ' | ' |
Estimated tax loss on unrealized gains on investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($387,098) | ' | ' |
Business_Combinations_Goodwill2
Business Combinations, Goodwill and Intangible Assets - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 12, 2013 | Mar. 22, 2013 | Mar. 22, 2013 | Sep. 12, 2012 | Sep. 14, 2011 | Sep. 12, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 14, 2011 | Dec. 31, 2013 | Sep. 14, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | ARS | USD ($) | 24-Months Period [Member] | 36-Months Period [Member] | AP Clasificados [Member] | Autoplaza [Member] | Autoplaza [Member] | |||||
USD ($) | USD ($) | USD ($) | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquisition | 60.00% | ' | ' | ' | ' | 100.00% | 100.00% | ' | 60.00% | ' | ' | ' | 100.00% | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | $3,454,497 | 17,652,480 | ' | ' | ' | ' | ' | ' | ' | $5,472,056 |
Amount in escrow account | ' | ' | ' | ' | ' | 547,945 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Amount released from escrow account | ' | ' | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Business acquisition rights of buyer description | ' | 'On such same date, the Buyer paid and agreed to pay the purchase price as follows i) $2,191,781 in cash; ii) set an escrow amounting to $489,237 for a 24-months period, aiming to cover unexpected liabilities and negative working capital; iii) set an escrow amounting to $547,945 for a 36-months period, aiming to continue the employment relationship of certain key employees; and iv) on June 24, 2013 the Company paid the remaining $225,534 net of certain negative working capital adjustments. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In addition, ETVE has the right and option (but not the obligation) to purchase the remaining 40% of the membership interest of Autopark LLC following the earlier to occur of (i) third anniversary of the settlement date, or (ii) additional capital contribution be required to capitalize Autopark LLC by their own member's decision and Hasteny does not make such additional capital contribution within ten (10) days of such members' consent. | ' |
Business acquisition purchase price consideration description | 'According to the signed agreement, the price for the remaining 40% interest call or put options will be determined by the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the seller's interests as of the exercise date of the call/put option by (B) an amount equal to 3.5 times the amount of invoiced sales of such company for the twelve months period ending on the exercise date. | 'The total consideration to be paid shall be the greater of (i) $4,000,000 and (ii) the amount resulting from multiplying (A) the percentage of the membership interest held by Hasteny as of the date of the Call Notice by (B) an amount equal to 3.5 times the amount of invoiced sales of the Acquired Business for the twelve months period ending on the date of Call Notice. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of non-compete agreements | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized period | ' | 'Five year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cash pay | ' | 2,191,781 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow amount covering unexpected liabilities and negative working capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 489,237 | ' | ' | ' | ' |
Escrow amount to continue employment relationship | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 547,945 | ' | ' | ' |
Business acquisition payment subject to collection of credits held by certain customer | ' | 225,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | 524,965 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | 7,562 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total aggregate amortization expense for intangible assets | ' | $781,074 | $891,661 | $1,038,096 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Goodwill3
Business Combinations, Goodwill and Intangible Assets - Allocation of Cash Paid in Acquisition (Detail) (USD $) | Dec. 31, 2013 | Mar. 22, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 15, 2011 |
Autoplaza [Member] | |||||
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items] | ' | ' | ' | ' | ' |
Net Tangible Assets | ' | ' | ' | ' | $153,349 |
Identifiable Intangible Assets | ' | ' | ' | ' | 3,290,998 |
Deferred Tax Liabilities | ' | ' | ' | ' | -987,299 |
Goodwill | 55,101,218 | 2,668,661 | 60,366,063 | 62,093,948 | 6,663,045 |
Noncontrolling interest | ' | ' | ' | ' | -3,648,037 |
Aggregate Purchase Price | ' | ' | ' | ' | $5,472,056 |
Business_Combinations_Goodwill4
Business Combinations, Goodwill and Intangible Assets - Definitive Purchase Price Allocation for Acquisition (Detail) | Dec. 31, 2013 | Mar. 22, 2013 | Mar. 22, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 12, 2011 |
USD ($) | USD ($) | ARS | USD ($) | USD ($) | USD ($) | |
Business Combinations [Abstract] | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | $237,891 | ' | ' | ' | ' |
Goodwill | 55,101,218 | 2,668,661 | ' | 60,366,063 | 62,093,948 | ' |
Purchase price | ' | 2,906,552 | ' | ' | ' | ' |
Escrow for employment relationship | ' | 547,945 | ' | ' | ' | 1,500,000 |
Aggregate price paid | ' | $3,454,497 | 17,652,480 | ' | ' | ' |
Business_Combinations_Goodwill5
Business Combinations, Goodwill and Intangible Assets - Composition of Goodwill and Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Mar. 22, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Goodwill | $55,101,218 | $2,668,661 | $60,366,063 | $62,093,948 |
Total intangible assets | 11,261,888 | ' | 12,060,004 | ' |
Accumulated amortization | -4,670,303 | ' | -4,780,139 | ' |
Total intangible assets, net | 6,591,585 | ' | 7,279,865 | ' |
Licenses and Others [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 3,430,003 | ' | 3,829,668 | ' |
Non-Compete Agreement [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,025,605 | ' | 1,195,509 | ' |
Customer Lists [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,568,190 | ' | 1,708,770 | ' |
Trademarks [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Trademarks | $5,238,090 | ' | $5,326,057 | ' |
Business_Combinations_Goodwill6
Business Combinations, Goodwill and Intangible Assets - Table Showing Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 22, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Brazil [Member] | Brazil [Member] | Argentina [Member] | Argentina [Member] | Chile [Member] | Chile [Member] | Mexico [Member] | Mexico [Member] | Venezuela [Member] | Venezuela [Member] | Colombia [Member] | Colombia [Member] | Other Countries [Member] | Other Countries [Member] | ||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of the year | $60,366,063 | $62,093,948 | $2,668,661 | $10,706,281 | $11,663,443 | $18,889,094 | $21,583,774 | $7,115,211 | $6,577,459 | $11,404,780 | $10,621,839 | $4,846,030 | $4,846,030 | $5,897,136 | $5,367,526 | $1,507,531 | $1,433,877 |
Business acquisition | 2,668,661 | ' | ' | 1,307,644 | ' | 659,159 | ' | ' | ' | 186,806 | ' | 405,637 | ' | 69,385 | ' | 40,030 | ' |
Effect of exchange rates changes | -7,933,506 | -1,727,885 | ' | -1,647,907 | -957,162 | -4,872,108 | -2,694,680 | -595,017 | 537,752 | -215,446 | 782,941 | ' | ' | -460,459 | 529,610 | -142,569 | 73,654 |
Balance, end of the year | $55,101,218 | $60,366,063 | $2,668,661 | $10,366,018 | $10,706,281 | $14,676,145 | $18,889,094 | $6,520,194 | $7,115,211 | $11,376,140 | $11,404,780 | $5,251,667 | $4,846,030 | $5,506,062 | $5,897,136 | $1,404,992 | $1,507,531 |
Business_Combinations_Goodwill7
Business Combinations, Goodwill and Intangible Assets - Expected Intangible Asset Amortization Expense (Detail) (USD $) | Dec. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
For year ended 12/31/2014 | $634,836 |
For year ended 12/31/2015 | 540,833 |
For year ended 12/31/2016 | 177,826 |
Thereafter | ' |
Total estimated aggregate amortization expense | $1,353,495 |
Segments_Financial_Performance
Segments - Financial Performance of Company's Reporting Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $134,630,171 | $123,055,431 | $112,183,360 | $102,725,747 | $103,754,645 | $97,266,784 | $88,844,059 | $83,736,006 | $86,465,653 | $81,628,144 | $69,378,160 | $61,459,668 | $472,594,709 | $373,601,494 | $298,931,625 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -246,391,578 | -190,483,230 | -156,196,110 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 226,203,131 | 183,118,264 | 142,735,515 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -72,664,076 | -53,460,393 | -42,963,350 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,539,055 | 129,657,871 | 99,772,165 |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,668,593 | 11,877,375 | 9,905,829 |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,355,929 | -1,138,379 | -3,648,733 |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,258,476 | 11,597 | 2,353,005 |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -751 | -190,938 | 73,894 |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163,109,444 | 140,217,526 | 108,456,160 |
Brazil [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 206,394,480 | 179,639,592 | 165,905,789 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -119,422,924 | -104,501,652 | -96,910,310 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,971,556 | 75,137,940 | 68,995,479 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,573,972 | 52,460,902 | 52,457,909 |
Argentina [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 122,123,347 | 88,513,640 | 56,714,941 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -66,492,770 | -41,841,587 | -23,463,871 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,630,577 | 46,672,053 | 33,251,070 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,438,235 | 40,466,354 | 23,855,329 |
Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,843,482 | 26,987,130 | 22,275,213 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,558,010 | -14,912,375 | -12,472,204 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,285,472 | 12,074,755 | 9,803,009 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,490,012 | 7,320,041 | 6,554,066 |
Venezuela [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,572,485 | 54,676,170 | 34,828,878 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -29,578,762 | -17,768,989 | -13,287,279 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,993,723 | 36,907,181 | 21,541,599 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,855,421 | 29,620,800 | 16,839,295 |
Other Countries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,660,915 | 23,784,962 | 19,206,804 |
Direct costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,339,112 | -11,458,627 | -10,062,446 |
Direct contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,321,803 | 12,326,335 | 9,144,358 |
Operating expenses and indirect costs of net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income and other financial gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and other financial losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (loss), net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income / asset tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,393,007 | $11,102,960 | $9,430,406 |
Segments_Allocation_of_LongLiv
Segments - Allocation of Long-Lived Tangible Assets Based on Geography (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | $122,240,132 | $30,944,145 |
Total long-lived tangible assets | 131,371,909 | 37,726,222 |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | 9,131,777 | 6,782,077 |
Argentina [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | 29,119,057 | 16,955,438 |
Brazil [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | 5,559,702 | 2,421,618 |
Mexico [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | 711,200 | 378,653 |
Venezuela [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | 83,655,816 | 8,455,816 |
Other Countries [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries long-lived tangible assets | $3,194,357 | $2,732,620 |
Segments_Additional_Informatio
Segments - Additional Information (Detail) | 1 Months Ended | 1 Months Ended | |||||||||
31-May-13 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | 31-May-13 | 31-May-13 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | VEF | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Buenos Aires [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | Caracas [Member] | |
USD ($) | VEF | USD ($) | USD ($) | VEF | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Venezuelan Operations [Member] | |||
Floors | StorageSpaces | StorageSpaces | USD ($) | VEF | USD ($) | VEF | |||||
sqm | sqm | sqm | sqm | ||||||||
ParkingSpaces | ParkingSpaces | ||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of new office building | ' | ' | ' | ' | 3,918 | 1,158 | 1,158 | ' | ' | ' | ' |
Acquisition agreement amount | $20,002,357 | 126,014,852 | ' | ' | $18,481,024 | $20,002,357 | 126,014,852 | ' | ' | ' | ' |
Number of floors in new office building | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of parking space | ' | ' | ' | ' | ' | 13 | 13 | ' | ' | ' | ' |
Number of storage space | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | ' |
Area of office property acquired | ' | ' | ' | ' | ' | ' | ' | 1,367 | 1,367 | ' | ' |
Acquisition agreement amount | ' | ' | ' | ' | 495,453 | ' | ' | 52,094,476 | 328,195,200 | ' | ' |
Line of credit facility amount | ' | ' | ' | ' | ' | ' | ' | 13,510,317 | 85,115,000 | ' | ' |
Agreement period | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' | ' |
Line of credit facility interest rate | ' | ' | ' | ' | ' | ' | ' | 13.00% | 13.00% | ' | ' |
Balance of credit amounted | ' | ' | $12,716,667 | 80,115,000 | ' | ' | ' | ' | ' | $12,716,667 | 80,115,000 |
Segments_Allocation_of_Goodwil
Segments - Allocation of Goodwill and Intangible Assets Based on Geography (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | $61,682,300 | $67,624,923 |
Total goodwill and intangible assets | 61,692,803 | 67,645,928 |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
US intangible assets | 10,503 | 21,005 |
Argentina [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | 15,575,776 | 20,328,154 |
Brazil [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | 10,380,974 | 10,724,007 |
Mexico [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | 14,512,949 | 14,644,795 |
Venezuela [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | 6,913,604 | 6,595,117 |
Other Countries [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Other countries goodwill and intangible assets | $14,298,997 | $15,332,850 |
Segments_Consolidated_Sales_Re
Segments - Consolidated Sales Revenues by Similar Products and Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $134,630,171 | $123,055,431 | $112,183,360 | $102,725,747 | $103,754,645 | $97,266,784 | $88,844,059 | $83,736,006 | $86,465,653 | $81,628,144 | $69,378,160 | $61,459,668 | $472,594,709 | $373,601,494 | $298,931,625 |
Marketplace [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 331,338,080 | 261,997,021 | 217,932,815 |
Non-marketplace [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $141,256,629 | $111,604,473 | $80,998,810 |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Total Financial Assets | $75,354,552 | $115,304,625 |
Money Market Funds [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | 19,630,109 | 23,033,357 |
Corporate Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | 88,648 | ' |
Investments | 25,239,905 | 51,991,294 |
Asset Backed Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | ' | 18,826,833 |
Sovereign Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | 30,395,890 | 21,453,141 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets | ' | ' |
Total Financial Assets | 69,225,356 | 96,477,792 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | 19,630,109 | 23,033,357 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | 88,648 | ' |
Investments | 19,110,709 | 51,991,294 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset Backed Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Sovereign Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | 30,395,890 | 21,453,141 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets | ' | ' |
Total Financial Assets | 6,129,196 | 18,826,833 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | ' | ' |
Investments | 6,129,196 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Asset Backed Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | ' | 18,826,833 |
Significant Other Observable Inputs (Level 2) [Member] | Sovereign Debt Securities [Member] | ' | ' |
Assets | ' | ' |
Investments | ' | ' |
Fair_Value_Measurement_of_Asse3
Fair Value Measurement of Assets and Liabilities - Fair Value of Financial Assets and Liabilities Measured at Amortized Cost (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Carrying Value [Member] | ' | ' |
Assets | ' | ' |
Assets | $184,331,377 | $162,634,066 |
Liabilities | ' | ' |
Liabilities | 223,034,754 | 167,447,638 |
Carrying Value [Member] | Accounts Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 34,405,333 | 23,976,613 |
Carrying Value [Member] | Funds Payable to Customers [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 129,038,663 | 101,472,662 |
Carrying Value [Member] | Salaries and Social Security Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 15,863,028 | 14,994,186 |
Carrying Value [Member] | Tax Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 17,854,110 | 19,210,568 |
Carrying Value [Member] | Dividends Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 6,313,869 | 4,812,396 |
Carrying Value [Member] | Loans Payable and Other Financial Liabilities [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 15,860,642 | 144,063 |
Carrying Value [Member] | Other Liabilities [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 3,699,109 | 2,837,150 |
Carrying Value [Member] | Time Deposits [Member] | ' | ' |
Assets | ' | ' |
Assets | 66,677,156 | 87,379,121 |
Carrying Value [Member] | Accounts Receivable [Member] | ' | ' |
Assets | ' | ' |
Assets | 25,884,260 | 19,837,022 |
Carrying Value [Member] | Credit Cards and other Means of Payments [Member] | ' | ' |
Assets | ' | ' |
Assets | 52,045,851 | 35,816,506 |
Carrying Value [Member] | Prepaid Expenses [Member] | ' | ' |
Assets | ' | ' |
Assets | 3,836,081 | 2,080,079 |
Carrying Value [Member] | Other Assets [Member] | ' | ' |
Assets | ' | ' |
Assets | 35,888,029 | 17,521,338 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets | ' | ' |
Assets | 184,331,377 | 162,634,066 |
Liabilities | ' | ' |
Liabilities | 223,034,754 | 167,447,638 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 34,405,333 | 23,976,613 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Funds Payable to Customers [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 129,038,663 | 101,472,662 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 15,863,028 | 14,994,186 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Tax Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 17,854,110 | 19,210,568 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Dividends Payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 6,313,869 | 4,812,396 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Loans Payable and Other Financial Liabilities [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 15,860,642 | 144,063 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities | 3,699,109 | 2,837,150 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ' | ' |
Assets | ' | ' |
Assets | 66,677,156 | 87,379,121 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Accounts Receivable [Member] | ' | ' |
Assets | ' | ' |
Assets | 25,884,260 | 19,837,022 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Credit Cards and other Means of Payments [Member] | ' | ' |
Assets | ' | ' |
Assets | 52,045,851 | 35,816,506 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Prepaid Expenses [Member] | ' | ' |
Assets | ' | ' |
Assets | 3,836,081 | 2,080,079 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Assets [Member] | ' | ' |
Assets | ' | ' |
Assets | $35,888,029 | $17,521,338 |
Fair_Value_Measurement_of_Asse4
Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Short-term investments | $66,677,156 | $87,379,121 |
Auction Rate Securities [Member] | ' | ' |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Investments | 0 | 0 |
Collateralized Debt Obligations [Member] | ' | ' |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Investments | 0 | 0 |
Structured Investment Vehicles [Member] | ' | ' |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' |
Investments | $0 | $0 |
Fair_Value_Measurement_of_Asse5
Fair Value Measurement of Assets and Liabilities - Fair Value of Money Market Funds, Short and Long-Term Investments Classified as Available for Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $75,317,926 | $114,157,963 |
Gross Unrealized Gains | 66,434 | 1,236,697 |
Gross Unrealized Losses | -29,808 | -90,035 |
Estimated Fair Value | 75,354,552 | 115,304,625 |
Cash and Cash Equivalents [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 19,720,190 | 23,030,970 |
Gross Unrealized Gains | 2,627 | 3,400 |
Gross Unrealized Losses | -4,060 | -1,013 |
Estimated Fair Value | 19,718,757 | 23,033,357 |
Short-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 9,912,171 | 6,314,939 |
Gross Unrealized Gains | 3,887 | 1,032 |
Gross Unrealized Losses | ' | -287 |
Estimated Fair Value | 9,916,058 | 6,315,684 |
Long-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 45,685,565 | 84,812,054 |
Gross Unrealized Gains | 59,920 | 1,232,265 |
Gross Unrealized Losses | -25,748 | -88,735 |
Estimated Fair Value | 45,719,737 | 85,955,584 |
Money Market Funds [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 19,631,550 | 23,030,970 |
Gross Unrealized Gains | 2,619 | 3,400 |
Gross Unrealized Losses | -4,060 | -1,013 |
Estimated Fair Value | 19,630,109 | 23,033,357 |
Corporate Debt Securities [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 88,640 | ' |
Gross Unrealized Gains | 8 | ' |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | 88,648 | ' |
Corporate Debt Securities [Member] | Short-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 4,393,594 | 6,314,939 |
Gross Unrealized Gains | 2,271 | 1,032 |
Gross Unrealized Losses | ' | -287 |
Estimated Fair Value | 4,395,865 | 6,315,684 |
Corporate Debt Securities [Member] | Long-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 20,804,125 | 45,089,831 |
Gross Unrealized Gains | 59,437 | 630,807 |
Gross Unrealized Losses | -19,522 | -45,028 |
Estimated Fair Value | 20,844,040 | 45,675,610 |
Sovereign Debt Securities [Member] | Short-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 5,518,577 | ' |
Gross Unrealized Gains | 1,616 | ' |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | 5,520,193 | ' |
Sovereign Debt Securities [Member] | Long-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 24,881,440 | 21,153,227 |
Gross Unrealized Gains | 483 | 299,914 |
Gross Unrealized Losses | -6,226 | ' |
Estimated Fair Value | 24,875,697 | 21,453,141 |
Asset Backed Securities [Member] | Long-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | ' | 18,568,996 |
Gross Unrealized Gains | ' | 301,544 |
Gross Unrealized Losses | ' | -43,707 |
Estimated Fair Value | ' | $18,826,833 |
Fair_Value_Measurement_of_Asse6
Fair Value Measurement of Assets and Liabilities - Estimated Fair Values of Money Market Funds, Short-Term and Long-Term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
One year or less | $29,634,815 | ' |
One year to two years | 18,959,159 | ' |
Two years to three years | 13,126,825 | ' |
Three years to four years | 9,266,503 | ' |
Four years to five years | 4,367,250 | ' |
Estimated Fair Value | $75,354,552 | $115,304,625 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Vote | |||
Equity [Abstract] | ' | ' | ' |
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares issued | 44,153,473 | 44,150,920 | ' |
Common stock, shares outstanding | 44,153,473 | 44,150,920 | ' |
Each common stock voting entitlement | 1 | ' | ' |
Voting entitlement | 'The board of directors (the "Board") may declare that any shares of stock above such 20% do not have voting rights | ' | ' |
Stockholders owning no voting right percentage | 20.00% | ' | ' |
Mandatorily_Redeemable_Convert1
Mandatorily Redeemable Convertible Preferred Stock - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Preferred stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 |
Preferred stock, par value | $0.00 | $0.00 | $0.00 |
Preferred stock, shares issued | ' | ' | ' |
Preferred stock, shares subscribed | ' | ' | ' |
Compensation_Plan_for_Outside_2
Compensation Plan for Outside Directors - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Non-Adjustable Board Service Award, cash payment | $50,000 | $43,826 | $37,703 | $32,436 |
Adjustable Award of company's share | 70,000 | 58,435 | 50,271 | 43,248 |
Trading day period | '30 days | ' | '30 days | ' |
Audit Committee [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Annual cash compensation to outside directors in addition to existing director amount | 21,913 | 21,913 | 18,852 | 16,218 |
Compensation Committee [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Annual cash compensation to outside directors in addition to existing director amount | 17,531 | 17,531 | 15,081 | 12,974 |
Nominating Committee [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Annual cash compensation to outside directors in addition to existing director amount | 7,304 | 7,304 | 6,284 | 5,406 |
Lead Independent Director [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Annual cash compensation to outside directors in addition to existing director amount | ' | 14,609 | 12,568 | 10,812 |
Corporate Governance Committee [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Annual cash compensation to outside directors in addition to existing director amount | $14,609 | ' | ' | ' |
Compensation_Plan_for_Outside_3
Compensation Plan for Outside Directors - Summary of Total Accrued Compensation Cost Related to Outside Directors (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Accrued compensation cost related to outside Directors, Total | $953,638 | $582,562 | $570,580 |
Chairmans Fee [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Accrued compensation cost related to outside Directors, Total | 55,858 | 57,680 | 49,471 |
Adjustable Award [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Accrued compensation cost related to outside Directors, Total | 575,242 | 282,703 | 344,427 |
Non-adjustable Award [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Accrued compensation cost related to outside Directors, Total | $322,538 | $242,179 | $176,682 |
Stock_Option_Plan_and_Restrict2
Stock Option Plan and Restricted Shares - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding options granted | 0 | ' | ' |
Stock-based compensation expense related to stock options | $0 | $0 | $0 |
Closing stock price of company | ' | $78.55 | ' |
1999 Stock Option and Restricted Stock Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares reserved for future issuance of common stock | 4,732,400 | ' | ' |
Number of shares available for grant | 260,556 | ' | ' |
2009 Equity Compensation Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares reserved for future issuance of common stock | 294,529 | ' | ' |
Stock_Option_Plan_and_Restrict3
Stock Option Plan and Restricted Shares - Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Number of options, Outstanding, beginning of year | 2,013 | 5,813 |
Number of options, Exercised | -2,013 | -3,800 |
Number of options, Outstanding, end of the year | ' | 2,013 |
Number of options, Exercisable, end of the year | ' | 2,013 |
Weighted-average exercise price, Outstanding, beginning of year | $1.50 | $1.50 |
Weighted-average exercise price, Exercised | $1.50 | $1.50 |
Weighted-average exercise price, Outstanding, end of the year | $0 | $1.50 |
Weighted-average exercise price, Exercisable, end of the year | $0 | $1.50 |
Stock_Option_Plan_and_Restrict4
Stock Option Plan and Restricted Shares - Summary of Stock Options Outstanding (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options Outstanding | 2,013 | 0 | ' |
Weighted-average remaining contractual life (years) outstanding | '1 year 6 months | ' | ' |
Number of options Exercisable | 2,013 | ' | ' |
Weighted-average Exercise Price, Options outstanding | $1.50 | $0 | $1.50 |
Weighted-average Exercise Price, Options exercisable | $1.50 | $0 | ' |
Aggregate intrinsic value - Options outstanding | $155,102 | ' | ' |
Aggregate intrinsic value - Options exercisable | $155,102 | ' | ' |
Exercise price $1.50 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Exercise price | $1.50 | ' | ' |
Number of options Outstanding | 2,013 | ' | ' |
Weighted-average remaining contractual life (years) outstanding | '1 year 6 months | ' | ' |
Number of options Exercisable | 2,013 | ' | ' |
Stock_Option_Plan_and_Restrict5
Stock Option Plan and Restricted Shares - Summary of Stock Options Outstanding (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Number of options Outstanding | 0 | 2,013 |
Management_Incentive_Bonus_Pla1
Management Incentive Bonus Plan - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Compensation Related Costs [Abstract] | ' |
Minimum purchase price for sale bonus and stay bonus | $20,000,000 |
Percentage of sale bonus as per purchase price | 5.50% |
Percentage of stay bonus as per purchase price | 7.10% |
Maximum amount paid by the purchaser | 78,335,000 |
Minimum purchase price for stay bonus | 20,000,000 |
Provision recognized | $0 |
Income_Taxes_Components_of_Pre
Income Taxes - Components of Pretax Income (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | $163,109,444 | $140,217,526 | $108,456,160 |
United States [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | -1,641,203 | -753,531 | -680,845 |
Brazil [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | 61,573,972 | 52,460,902 | 52,457,909 |
Argentina [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | 46,438,235 | 40,466,354 | 23,855,329 |
Venezuela [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | 36,855,421 | 29,620,800 | 16,839,295 |
Mexico [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | 9,490,012 | 7,320,041 | 6,554,066 |
Other Countries [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Income before income tax | $10,393,007 | $11,102,960 | $9,430,406 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income / Asset Tax Expense (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current: | ' | ' | ' |
Foreign | $49,488,472 | $39,371,170 | $29,848,193 |
Deferred: | ' | ' | ' |
Federal | 799,166 | 998,536 | 2,114,486 |
Foreign | -4,913,379 | -1,586,024 | -340,950 |
Deferred income tax expense, total | -4,114,213 | -587,488 | 1,773,536 |
Income tax expense | 45,374,259 | 38,783,682 | 31,621,729 |
Asset Tax: | ' | ' | ' |
Income / asset tax expense, total | 45,583,181 | 38,871,379 | 31,659,821 |
Foreign [Member] | ' | ' | ' |
Asset Tax: | ' | ' | ' |
Asset tax expense | $208,922 | $87,697 | $38,092 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Difference Between Actual Provision for Income Taxes and Provision Computed by Applying Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Net income before income tax | $163,109,444 | $140,217,526 | $108,456,160 |
Weighted average income tax rate | 34.00% | 33.00% | 33.00% |
Income tax expense at blended tax rate | 55,241,195 | 46,593,938 | 35,727,808 |
Permanent differences: | ' | ' | ' |
Non-deductible expenses | 1,777,180 | 1,657,662 | 2,528,463 |
Dividend distributions | 1,414,915 | 847,798 | 2,132,063 |
Non-taxable income | -12,321,790 | -9,852,468 | -6,497,097 |
Currency translation | -1,552,169 | -1,213,340 | -916,166 |
Change in valuation allowance | 736,910 | 572,790 | -1,604,230 |
Business Combination | 34,706 | ' | ' |
True up | 43,312 | 177,302 | 250,888 |
Income tax expense | $45,374,259 | $38,783,682 | $31,621,729 |
Income_Taxes_Composition_of_De
Income Taxes - Composition of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets | ' | ' |
Allowance for doubtful accounts | $8,210,283 | $5,894,658 |
Property and equipment, net | 147,263 | 145,532 |
Accounts payable and accrued expenses | 2,014,026 | 390,655 |
Payroll and social security payable | 3,960,481 | 2,581,787 |
Other liabilities | ' | 654,535 |
Foreign exchange effect | 22,714 | ' |
Taxes payable | 1,058,659 | 1,267,713 |
Provisions | 3,553,360 | 3,071,331 |
Foreign tax credit | 668,659 | 2,414,440 |
Tax loss carryforwards | 2,451,524 | 3,653,373 |
Total deferred tax assets | 22,134,898 | 20,128,967 |
Valuation allowance | -3,089,113 | -3,226,177 |
Total deferred tax assets, net | 19,045,785 | 16,902,790 |
Deferred tax liabilities | ' | ' |
Unrealized net gains on investments | -10,767 | -392,048 |
Property and equipment, net | -2,883,458 | -3,145,196 |
Outside basis dividends | -668,659 | -3,538,970 |
Other liabilities | -11,237 | ' |
Foreign exchange effect | ' | -16,866 |
Total deferred tax liabilities | -5,339,359 | -8,975,290 |
Net deferred tax assets | 13,706,426 | 7,927,500 |
Customer Lists [Member] | ' | ' |
Deferred tax assets | ' | ' |
Customer lists | 47,929 | 54,943 |
Deferred tax liabilities | ' | ' |
Deferred tax liabilities intangible assets | -45,963 | -104,686 |
Non-Compete Agreement [Member] | ' | ' |
Deferred tax liabilities | ' | ' |
Deferred tax liabilities intangible assets | -26,019 | -54,391 |
Trademarks [Member] | ' | ' |
Deferred tax liabilities | ' | ' |
Deferred tax liabilities intangible assets | ($1,693,256) | ($1,723,133) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Total amount disclosed in the consolidated balance sheet | $13,706,426 | $7,927,500 | ' |
Amount disclosed in the balance sheet as current asset | 16,030,880 | 11,040,543 | ' |
Amount disclosed in the balance sheet as non-current asset | 3,014,905 | 5,862,247 | ' |
Amount disclosed in the balance sheet as non-current liability | 5,339,359 | 8,975,290 | ' |
Consolidated loss carryforwards for income tax purpose | 7,666,353 | ' | ' |
Tax loss carryforward | 2,451,524 | ' | ' |
Foreign and domestic valuation allowance reduced amount | 156,851 | 240,653 | ' |
Valuation allowance relating to Argentine operation | 290,561 | 581,233 | ' |
Foreign and domestic valuation allowance reversed amount | ' | ' | 1,955,723 |
Non-U.S subsidiaries' undistributed earnings | $155,300,000 | ' | ' |
Income_Taxes_Tax_Loss_Carryfor
Income Taxes - Tax Loss Carryforwards (Detail) (USD $) | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
2014 | $3,622 |
2015 | 843,246 |
2016 | 373,710 |
2017 | ' |
Thereafter | 1,859,185 |
Without due dates | 4,586,590 |
Total | $7,666,353 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 23, 2010 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 25, 2010 | Jun. 26, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Caracas [Member] | Caracas [Member] | Buenos Aires [Member] | Buenos Aires [Member] | Buenos Aires [Member] | Buenos Aires [Member] | Minimum [Member] | Maximum [Member] | Long Term Retention Plan 2009 [Member] | Long Term Retention Plan 2010 [Member] | Long Term Retention Plan 2011 [Member] | Long Term Retention Plan 2012 [Member] | Long Term Retention Plan 2013 [Member] | Remote [Member] | Reasonably Possible but not Probable [Member] | State of Sao Paulo Fraud Claim [Member] | State of Sao Paulo Fraud Claim [Member] | City of Sao Paulo Tax Claim [Member] | City of Sao Paulo Tax Claim [Member] | Brazilian Federal Tax Claims [Member] | Brazilian Federal Tax Claims [Member] | |
LegalMatter | USD ($) | VEF | Venezuelan Operations [Member] | Venezuelan Operations [Member] | Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | BRL | USD ($) | BRL | |||||||
USD ($) | VEF | USD ($) | ARS | USD ($) | ARS | |||||||||||||||||||||||
CreditFacility | CreditFacility | |||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserves for proceeding-related contingencies | ' | ' | $3,330,108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount for legal actions for which no loss amount has been accrued | ' | ' | 4,013,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of legal actions pending | ' | ' | 624 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency pending cases related to consumer courts | ' | ' | 3,149 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Daily non-compliance penalty | ' | ' | 5,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | 2,500 | ' | ' | ' | ' |
Fine against Company's subsidiaries | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per defendant per day of alleged non-compliance | ' | ' | 5,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of reasonably possible loss | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 400,000 | ' | ' | ' | ' | ' | ' |
Penalty established on injunction per day | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate additional amount related to asserted taxes and fines | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,500,000 | 41,000,000 | 2,200,000 | 5,200,000 |
Total amount of claim including surcharges and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,800,000 | ' | ' | ' |
Deposit with court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | ' | ' |
Accrued Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 10,400,000 | ' | ' |
Total rental expense, for leases office space | ' | ' | 3,043,604 | 2,441,866 | 2,275,171 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability related to lease contracts | ' | ' | 21,962 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Car lease contract, maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'October 2014 | 'November 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Officers' Compensation | ' | ' | 1,650,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance based estimated bonus aggregate | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of consideration for involuntary termination of employee | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount received by executive officers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,932,000 | 3,913,000 | 4,702,000 | 5,693,000 | 12,975,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Period of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 3 months | '4 years 3 months | '5 years 3 months | '6 years 3 months | '5 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding unsecured line of credit | ' | ' | ' | ' | ' | $12,716,667 | 80,115,000 | $12,716,667 | 80,115,000 | $3,122,014 | 20,358,655 | $3,122,014 | 20,358,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding unsecured line of credit | ' | ' | ' | ' | ' | ' | ' | 13.00% | 13.00% | ' | ' | 15.25% | 15.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured line of credit maturity period | ' | ' | ' | ' | ' | ' | ' | '12 months | '12 months | ' | ' | '48 months | '48 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Unsecured line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment_and_Contingencies_M
Commitment and Contingencies - Minimum Remaining Annual Commitments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' |
For the year ended December 31, 2014 | $2,811,926 |
For the year ended December 31, 2015 | 688,379 |
For the year ended December 31, 2016 | 268,740 |
Thereafter | ' |
Total | $3,769,045 |
Long_Term_Retention_Plan_Addit
Long Term Retention Plan - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Aug. 08, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quotas | Quotas | Long Term Retention Plan 2013 [Member] | Long Term Retention Plan 2013 [Member] | Long Term Retention Plan 2013 [Member] | Long Term Retention Plan 2008 [Member] | Long Term Retention Plan 2008 [Member] | Long Term Retention Plan 2008 [Member] | Long Term Retention Plan 2009 [Member] | Long Term Retention Plan 2009 [Member] | Long Term Retention Plan 2009 [Member] | Long Term Retention Plan 2009 [Member] | Long Term Retention Plan 2010 [Member] | Long Term Retention Plan 2010 [Member] | Long Term Retention Plan 2010 [Member] | Long Term Retention Plan 2010 [Member] | Long Term Retention Plan 2011 [Member] | Long Term Retention Plan 2011 [Member] | Long Term Retention Plan 2011 [Member] | Long Term Retention Plan 2011 [Member] | Long Term Retention Plan 2012 [Member] | Long Term Retention Plan 2012 [Member] | Long Term Retention Plan 2012 [Member] | Long Term Retention Plan 2012 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee retention program payable in cash | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee retention program payable in shares | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant-date fair market value of number of shares granted, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term retention plan | $11,645,077 | $4,453,858 | $4,406,287 | ' | ' | ' | $4,759,303 | ' | ' | $0 | $20,595 | $98,451 | ' | $1,562,957 | $587,106 | $1,457,838 | ' | $1,611,521 | $1,006,740 | $1,330,238 | ' | $1,698,285 | $1,236,275 | $1,519,760 | ' | $2,013,011 | $1,603,142 | ' |
Share portion of award credited to Additional Paid-in Capital | ' | 11,036 | 49,246 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued compensation expense included in social security payable | ' | $9,559 | $49,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Retention Plan payment term | ' | ' | ' | ' | ' | ' | 'In 6 equal annual quotas (16.67% each) commencing on March 31, 2014 | ' | ' | ' | ' | ' | 'in 8 equal annual quotas (12.5% each) commencing on March 31, 2010 | ' | ' | ' | 'in 8 equal annual quotas (12.5% each) commencing on March 31, 2011 | ' | ' | ' | 'in 8 equal annual quotas (12.5% each) commencing on March 31, 2012 | ' | ' | ' | 'in 8 equal annual quotas (12.5% each) commencing on March 31, 2013 | ' | ' | ' |
Number of quotas for payment under LTRP | 6 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage quotas in each installment under LTRP | 16.67% | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage base for calculation of quotas under LTRP | 8.33% | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of trading days consider for average closing price | '60 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average closing stock price | $79.57 | $77.77 | $65.41 | $45.75 | $13.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Retention Plan each quota calculation term | '8.333% is adjusted by multiplying the nominal amount by the average closing stock price for the last 60 trading days of the year previous to the payment date and divided by the average closing stock price for the last 60 trading days of 2012. The average closing stock price for the 2013 LTRP amounted to $79.57 ("the variable share"). | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long_Term_Retention_Plan_Long_
Long Term Retention Plan - Long Term Retention Plan Additional Compensation Payable in Cash and Shares (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Year 1 (2008): | 17.00% |
Year 2 (2009): | 22.00% |
Year 3 (2010): | 27.00% |
Year 4 (2011): | 34.00% |
Long_Term_Retention_Plan_Summa
Long Term Retention Plan - Summary of Number of Shares (Detail) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Granted | 21,591 | 21,591 |
Non-vested at the beginning of the year | 5,100 | 10,163 |
Non-vested at the end of the year | ' | 5,100 |
Forfeited | 4,218 | 4,218 |
Vested and paid to the employees | 17,373 | 12,273 |
Outstanding | ' | 5,100 |
Long_Term_Retention_Plan_Summa1
Long Term Retention Plan - Summary of Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Outstanding LTRP 2009 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value | $4,305,518 | $3,854,742 | $5,070,581 |
Weighted-average remaining contractual life (years) | '1 year 9 months | '2 years 3 months | '2 years 9 months |
Outstanding LTRP 2010 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value | 2,884,551 | 3,461,461 | 3,818,221 |
Weighted-average remaining contractual life (years) | '2 years 3 months | '2 years 9 months | '3 years 3 months |
Outstanding LTRP 2011 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value | 4,093,119 | 3,288,647 | 3,754,634 |
Weighted-average remaining contractual life (years) | '2 years 9 months | '3 years 3 months | '3 years 9 months |
Outstanding LTRP 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value | 4,806,997 | 3,800,492 | ' |
Weighted-average remaining contractual life (years) | '3 years 3 months | '3 years 9 months | ' |
Outstanding LTRP 2013 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value | $10,167,959 | ' | ' |
Weighted-average remaining contractual life (years) | '2 years 9 months | ' | ' |
Long_Term_Retention_Plan_Long_1
Long Term Retention Plan - Long Term Retention Plans Accrued Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | $11,645,077 | $4,453,858 | $4,406,287 |
Long Term Retention Plan 2008 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | 0 | 20,595 | 98,451 |
Long Term Retention Plan 2009 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | 1,562,957 | 587,106 | 1,457,838 |
Long Term Retention Plan 2010 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | 1,611,521 | 1,006,740 | 1,330,238 |
Long Term Retention Plan 2011 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | 1,698,285 | 1,236,275 | 1,519,760 |
Long Term Retention Plan 2012 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | 2,013,011 | 1,603,142 | ' |
Long Term Retention Plan 2013 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Long term retention plan | $4,759,303 | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Curtidos San Luis S.A. [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Curtidos San Luis S.A. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Recognized expenses from party | ' | ' | $253,924 |
Recovery of US dollars | ' | 16,553 | ' |
Gain recognized by Company related to VAT credits | ' | $24,472 | ' |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts - Summary of Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of year | $12,946,077 | $15,951,497 | $11,560,568 |
Charged / credited to Net income / (loss) | 19,093,704 | 17,280,243 | 17,560,508 |
Charges Utilized / Write-offs | -13,044,977 | -20,285,663 | -13,169,579 |
Balance at end of year | 18,994,804 | 12,946,077 | 15,951,497 |
Credit Cards Receivable Allowance for Chargebacks [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of year | 160,458 | 205,107 | 133,632 |
Charged / credited to Net income / (loss) | 877,312 | 414,145 | 1,376,361 |
Charges Utilized / Write-offs | -28,699 | -458,794 | -1,304,886 |
Balance at end of year | 1,009,071 | 160,458 | 205,107 |
Tax Valuation Allowance [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of year | 3,226,177 | 2,885,596 | 4,818,253 |
Charged / credited to Net income / (loss) | 398,223 | 837,473 | -1,878,518 |
Charges Utilized / Write-offs | -535,287 | -496,892 | -54,139 |
Balance at end of year | 3,089,113 | 3,226,177 | 2,885,596 |
Contingencies [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of year | 2,800,197 | 1,765,242 | 1,648,534 |
Charged / credited to Net income / (loss) | 3,358,538 | 2,700,988 | 2,178,717 |
Charges Utilized / Write-offs | -2,828,627 | -1,666,033 | -2,062,009 |
Balance at end of year | $3,330,108 | $2,800,197 | $1,765,242 |
Quarterly_Financial_Data_Sched
Quarterly Financial Data - Schedule of Consolidated Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $134,630,171 | $123,055,431 | $112,183,360 | $102,725,747 | $103,754,645 | $97,266,784 | $88,844,059 | $83,736,006 | $86,465,653 | $81,628,144 | $69,378,160 | $61,459,668 | $472,594,709 | $373,601,494 | $298,931,625 |
Gross profit | 98,424,659 | 88,910,442 | 81,106,149 | 74,076,580 | 76,351,784 | 71,573,179 | 64,951,178 | 62,639,709 | 65,741,114 | 61,567,671 | 52,439,042 | 47,127,964 | 342,517,830 | 275,515,850 | 226,875,790 |
Net Income | $40,836,407 | $29,146,247 | $30,021,018 | $17,522,591 | $30,246,388 | $26,067,897 | $25,394,824 | $19,637,038 | $21,621,431 | $26,296,449 | $14,820,826 | $14,057,634 | ' | ' | ' |
Net Income per share-basic | $0.93 | $0.66 | $0.67 | $0.40 | $0.69 | $0.59 | $0.57 | $0.45 | $0.47 | $0.60 | $0.34 | $0.32 | $2.66 | $2.30 | $1.73 |
Net Income per share-diluted | $0.93 | $0.66 | $0.67 | $0.40 | $0.69 | $0.59 | $0.57 | $0.45 | $0.47 | $0.60 | $0.34 | $0.32 | $2.66 | $2.30 | $1.73 |
Weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 44,153,185 | 44,152,933 | 44,152,933 | 44,151,323 | 44,150,920 | 44,150,387 | 44,147,999 | 44,142,076 | 44,142,020 | 44,141,925 | 44,138,105 | 44,131,383 | 44,152,600 | 44,147,861 | 44,138,397 |
Diluted | 44,153,185 | 44,152,933 | 44,152,933 | 44,151,357 | 44,152,895 | 44,157,321 | 44,152,133 | 44,147,796 | 44,152,658 | 44,151,218 | 44,152,296 | 44,147,667 | 44,152,600 | 44,149,838 | 44,151,437 |
Cash_Dividend_Distribution_Add
Cash Dividend Distribution - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 27, 2014 |
Subsequent Events [Member] | |||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash dividend distribution | $6.30 | $4.80 | $3.50 | $25.20 | $19.20 | $14.10 | ' |
Cash dividend distribution, per share | $0.14 | $0.11 | $0.08 | $0.57 | $0.44 | $0.32 | ' |
Dividend paid date | 15-Jan-14 | 15-Jan-13 | 17-Jan-12 | 15-Apr-14 | ' | ' | ' |
Cash dividend declared | ' | ' | ' | ' | ' | ' | $7.30 |
Cash dividend declared, per share | ' | ' | ' | ' | ' | ' | $0.17 |
Dividends payment, Date of Record | ' | ' | ' | 31-Mar-14 | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 24, 2014 | Jan. 30, 2014 | Dec. 31, 2013 | Jan. 24, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Minimum [Member] | Maximum [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | Subsequent Events [Member] | |
Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | Argentinean Subsidiaries [Member] | Venezuelan Operations [Member] | Minimum [Member] | Maximum [Member] | ||
Venezuelan Operations [Member] | Venezuelan Operations [Member] | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Increased percentage of exchange rate of American peso exchange against U.S. dollar | ' | ' | ' | 23.00% | ' | ' | ' | ' |
Change in Argentinean pesos per U.S. dollar | ' | ' | 1 | 8 | 6.52 | 6.3 | ' | ' |
Change in reported net assets in Argentina | $14 | $15 | ' | ' | ' | ' | ' | ' |
Foreign exchange gain from its Argentinean subsidiaries | 3.5 | 4.5 | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate on recent auction | ' | ' | 1 | ' | ' | 11.8 | ' | ' |
Management estimated loss | ' | ' | ' | ' | ' | ' | $1.50 | $2.50 |