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Net Income per Share
9 Months Ended
Sep. 30, 2011
Net Income 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 attributable to MercadoLibre, Inc. common stock for the period by the weighted average number of common shares outstanding during the period.
   
The Company’s restricted shares granted to its outside directors were participating securities. Accordingly, net income attributable to MercadoLibre, Inc. for the nine-month periods ended September 30, 2010, was allocated between unvested restricted shares and common stock under the “two class method” for purposes of computing basic and diluted earnings per share.
   
Diluted earnings per share for the Company’s common stock assume the exercise of outstanding stock options and vesting restricted shares, additional shares and shares granted under the 2008 Long Term Retention Plan under the Company’s stock based employee compensation plans.
   
The following table shows how net income attributable to MercadoLibre, Inc. is allocated using the two-class method, for the three-month periods ended September 30, 2011 and 2010:
                                 
    Three Months Ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
 
                               
Net income
  $ 26,296,447     $ 26,296,447     $ 18,790,963     $ 18,790,963  
 
                       
 
                               
Net income attributable to MercadoLibre, Inc. corresponding to unvested restricted shares
    —       —       —       —  
 
                       
 
                               
Net income attributable to Noncontrolling interests
    522       522       —       —  
 
                       
 
                               
Net income attributable to MercadoLibre, Inc. corresponding to common stock
  $ 26,295,925     $ 26,295,925     $ 18,790,963     $ 18,790,963  
 
                       
   
The following table shows how net income attributable to MercadoLibre, Inc. is allocated using the two-class method, for the nine-month periods ended September 30, 2011 and 2010:
                                 
    Nine Months Ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
 
                               
Net income
  $ 55,174,909     $ 55,174,909     $ 40,085,526     $ 40,085,526  
 
                       
 
                               
Net income attributable to MercadoLibre, Inc. corresponding to unvested restricted shares
    —       —       4,474       4,474  
 
                       
 
                               
Net income attributable to Noncontrolling interests
    522       522       —       —  
 
                       
 
                               
Net income attributable to MercadoLibre, Inc. corresponding to common stock
  $ 55,174,387     $ 55,174,387     $ 40,081,052     $ 40,081,052  
 
                       
   
Net income attributable to MercadoLibre, Inc. per share of common stock is as follows for the three-month periods ended September 30, 2011 and 2010:
                                 
    Three Months Ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
 
                               
Net income attributable to MercadoLibre, Inc. per common share
  $ 0.60     $ 0.60     $ 0.43     $ 0.43  
 
                       
 
                               
Numerator:
                               
Net income attributable to MercadoLibre, Inc.
  $ 26,295,925     $ 26,295,925     $ 18,790,963     $ 18,790,963  
 
                       
 
                               
Denominator:
                               
Weighted average of common stock outstanding for Basic earnings per share
    44,141,925       44,141,925       44,129,762       44,129,762  
Adjustment for stock options
    —       4,513       —       12,949  
Adjustment for shares granted under LTRP
    —       4,780       —       8,656  
 
                       
Adjusted weighted average of common stock outstanding for Diluted earnings per share
    44,141,925       44,151,218       44,129,762       44,151,367  
 
                       
   
Net income attributable to MercadoLibre, Inc. per share of common stock is as follows for the nine-month periods ended September 30, 2011 and 2010:
                                 
    Nine Months Ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
Net income attributable to MercadoLibre, Inc. per common share
  $ 1.25     $ 1.25     $ 0.91     $ 0.91  
 
                       
 
                               
Numerator:
                               
Net income attributable to MercadoLibre, Inc.
  $ 55,174,387     $ 55,174,387     $ 40,081,052     $ 40,081,052  
 
                       
 
                               
Denominator:
                               
Weighted average of common stock outstanding for Basic earnings per share
    44,137,176       44,137,176       44,121,539       44,121,539  
Adjustment for stock options
    —       8,894       —       14,821  
Adjustment for shares granted under LTRP
    —       4,802       —       8,318  
 
                       
Adjusted weighted average of common stock outstanding for Diluted earnings per share
    44,137,176       44,150,872       44,121,539       44,144,678  
 
                       
   
The calculation of diluted net income per share excludes all anti-dilutive shares. For the three- and nine-month periods ended September 30, 2011 and 2010, there were no anti-dilutive shares.