Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MERCADOLIBRE INC | |
Entity Central Index Key | 1,099,590 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 44,157,364 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 301,388 | $ 234,140 |
Short-term investments | 265,165 | 253,321 |
Accounts receivable, net | 24,097 | 25,435 |
Credit cards receivable, net | 300,612 | 307,904 |
Loans receivable, net | 11,380 | 6,283 |
Prepaid expenses | 14,846 | 15,060 |
Inventory | 432 | 1,103 |
Other assets | 28,472 | 26,215 |
Total current assets | 946,392 | 869,461 |
Non-current assets: | ||
Long-term investments | 170,352 | 153,803 |
Property and equipment, net | 131,968 | 124,261 |
Goodwill | 95,849 | 91,797 |
Intangible assets, net | 26,227 | 26,277 |
Deferred tax assets | 51,441 | 45,017 |
Other assets | 61,417 | 56,819 |
Total non-current assets | 537,254 | 497,974 |
Total assets | 1,483,646 | 1,367,435 |
Current liabilities: | ||
Accounts payable and accrued expenses | 108,507 | 105,106 |
Funds payable to customers | 396,487 | 370,693 |
Salaries and social security payable | 73,342 | 48,898 |
Taxes payable | 30,668 | 27,338 |
Loans payable and other financial liabilities | 16,430 | 11,583 |
Other liabilities | 5,606 | 6,359 |
Dividends payable | 6,624 | 6,624 |
Total current liabilities | 637,664 | 576,601 |
Non-current liabilities: | ||
Salaries and social security payable | 12,498 | 16,173 |
Loans payable and other financial liabilities | 304,534 | 301,940 |
Deferred tax liabilities | 36,830 | 34,059 |
Other liabilities | 9,876 | 9,808 |
Total non-current liabilities | 363,738 | 361,980 |
Total liabilities | 1,001,402 | 938,581 |
Equity: | ||
Common stock, $0.001 par value, 110,000,000 shares authorized, 44,157,364 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 44 | 44 |
Additional paid-in capital | 137,982 | 137,982 |
Retained earnings | 592,535 | 550,641 |
Accumulated other comprehensive loss | (248,317) | (259,813) |
Total Equity | 482,244 | 428,854 |
Total Liabilities and Equity | $ 1,483,646 | $ 1,367,435 |
Interim Condensed Consolidated3
Interim Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Interim Condensed Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 44,157,364 | 44,157,364 |
Common stock, shares outstanding | 44,157,364 | 44,157,364 |
Interim Condensed Consolidated4
Interim Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interim Condensed Consolidated Statements of Income [Abstract] | ||
Net revenues | $ 273,926 | $ 157,630 |
Cost of net revenues | (105,070) | (55,448) |
Gross profit | 168,856 | 102,182 |
Operating expenses: | ||
Product and technology development | (30,302) | (21,941) |
Sales and marketing | (46,931) | (32,683) |
General and administrative | (28,309) | (17,069) |
Total operating expenses | (105,542) | (71,693) |
Income from operations | 63,314 | 30,489 |
Other income (expenses): | ||
Interest income and other financial gains | 12,157 | 7,251 |
Interest expense and other financial losses | (6,471) | (5,684) |
Foreign currency gains | 663 | 5,147 |
Net income before income tax expense | 69,663 | 37,203 |
Income tax expense | (21,145) | (6,956) |
Net income | $ 48,518 | $ 30,247 |
Basic EPS: Basic net income | ||
Available to shareholders per common share | $ 1.10 | $ 0.68 |
Weighted average of outstanding common shares | 44,157,364 | 44,156,961 |
Diluted EPS: Diluted net income | ||
Available to shareholders per common share | $ 1.10 | $ 0.68 |
Weighted average of outstanding common shares | 44,157,364 | 44,156,961 |
Cash Dividends declared (per share) | $ 0.150 | $ 0.150 |
Interim Condensed Consolidated5
Interim Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interim Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 48,518 | $ 30,247 |
Other comprehensive (loss) income, net of income tax: | ||
Currency translation adjustment | 9,665 | (11,191) |
Unrealized net gain on available for sale investments | 1,244 | 448 |
Less: Reclassification adjustment for losses on available for sale investments | (587) | (672) |
Net change in accumulated other comprehensive loss, net of income tax | 11,496 | (10,071) |
Total Comprehensive Income | $ 60,014 | $ 20,176 |
Interim Condensed Consolidated6
Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operations: | ||
Net income | $ 48,518 | $ 30,247 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,003 | 6,252 |
Accrued interest | (5,679) | (3,877) |
Non cash interest and convertible bonds amortization of debt discount and amortization of debt issuance costs | 4,226 | 4,431 |
LTRP accrued compensation | 9,176 | 3,190 |
Deferred income taxes | (2,798) | (1,896) |
Changes in assets and liabilities: | ||
Accounts receivable | (1,305) | (22,920) |
Credit Cards Receivables | 15,583 | (62,544) |
Prepaid expenses | 347 | (1,387) |
Inventory | 727 | (158) |
Other assets | (4,472) | (6,738) |
Accounts payable and accrued expenses | 13,364 | 14,376 |
Funds payable to customers | 13,929 | 23,684 |
Other liabilities | 123 | 1,152 |
Interest received from investments | 4,015 | 4,386 |
Net cash provided by (used in) operating activities | 104,757 | (11,802) |
Cash flows from investing activities: | ||
Purchase of investments | (897,589) | (641,259) |
Proceeds from sale and maturity of investments | 876,040 | 659,309 |
Payment for acquired businesses, net of cash acquired | (1,838) | |
Purchases of intangible assets | (17) | (11) |
Advance for property and equipment | (2,505) | (872) |
Changes in principal of loans receivable, net | (4,808) | |
Purchases of property and equipment | (10,268) | (14,552) |
Net cash (used in) provided by investing activities | (39,147) | 777 |
Cash flows from financing activities: | ||
Proceeds from loans payable and other financial liabilities | 4,290 | |
Payments on loans payable and other financing | (2,875) | (661) |
Dividends paid | (6,624) | (4,548) |
Net cash used in financing activities | (5,209) | (5,209) |
Effect of exchange rate changes on cash and cash equivalents | 6,847 | (5,762) |
Net increase (decrease) in cash and cash equivalents | 67,248 | (21,996) |
Cash and cash equivalents, beginning of the period | 234,140 | 166,881 |
Cash and cash equivalents, end of the period | $ 301,388 | $ 144,885 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2017 | |
Nature of Business [Abstract] | |
Nature of Business | 1. Nature of Business MercadoLibre, Inc. (“MercadoLibre” or the “Company”) was incorporated in the state of Delaware, in the United States of America in October 1999. MercadoLibre is the leading ecommerce company in Latin America, serving as an integrated regional platform and as an enabler of the necessary online and technology tools to allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform (including online classifieds for motor vehicles, vessels, aircraft, services and real estate), which allows users to buy and sell in most of Latin America. Through MercadoPago, MercadoLibre enables individuals and businesses to send and receive online payments; through MercadoEnvios, MercadoLibre facilitates the shipping of goods from sellers to buyers; through our Advertising products, MercadoLibre facilitates advertising services to large retailers and brands to promote their product and services on the web; and through MercadoShops, MercadoLibre facilitates users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model and through MercadoCredits extends loans to specific merchants. In addition, MercadoLibre develops and sells software enterprise solutions to e-commerce business clients in Brazil. As of March 31, 201 7 , MercadoLibre, through its wholly-owned subsidiaries, operated online ecommerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, Salvador, Portugal, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates an online payments solution directed towards Argentina, Brazil, Mexico, Venezuela, Colombia, Chile, Peru and Uruguay. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia and Chile. In addition, the Company operates a real estate classified platform that covers some areas of State of Florida, in the United States of America. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited interim condensed 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. These interim condensed consolidated financial statements are stated in U.S. dollars , except for amounts otherwise indicated . Intercompany transactions and balances with subsidiaries 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 98.8% and 99.8% of the con solidated amounts during the three -month periods ended March 31, 201 7 and 2016. Long-lived assets, Intangible assets and G oodwill located in the foreign jurisdictions totaled $244,075 thousands and $ 232,314 thousands as of March 31, 2017 and December 31, 2016 , respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2017 and December 31, 201 6 . These financial statements also show the Company’s consolidated statements of income and comprehensive income for the three-month periods ended March 31 , 201 7 and 201 6; and statement of cash flows for the three-month periods ended March 31, 2017 and 2016 . These interim condensed consolidated financial statements include all normal recurring adjustments that management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 201 6 , contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The condensed consolidated statements of income, of comprehensive income and of cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Form 10-K. During the three-month period ended March 31, 2017, there were no material updates made to the Company’s significant accounting policies. 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 operating subsidiaries translate assets and liabilities from their local currencies into U.S. dollars by using period -end exchange rates while income and expense accounts are translated at the average rates in effect during the period , unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translat ion adjustment is recorded as a component of other comprehensive (loss) income. Venezuelan currency status Pursuant 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 interim condensed consolidated financial statements, the cumulative three -year inflation rate exceeds 100% . Thus , the Company continues to treat the economy of Venezuela as highly-inflationary. On March 9, 2016 the Central Bank of Venezuela (“ BCV ”) issued the Exchange Agreement No.35, which is effective since March 10, 2016. The agreement established a “protected” exchange rate (“DIPRO”) for certain transactions, such as but not limited to: imports of goods of the food and health sectors, as well as supplies associated with the production of said sectors; expenses relating to health treatments, sports, culture, scientific research, and other urgent matters defined by the exchange regulations. All foreign currency transactions not expressly provided in Exchange Agreement No.35 will be processed on the alternate foreign currency markets governed by the exchange regulations, at the floating supplementary market exchange rate (“DICOM”). Additionally, the agreement established that the alternate foreign currency markets referred to in Exchange Agreement No.33 of February 10, 2015 ( “ SIMADI ” ) will continue to operate until replaced by others. As of the date of issuance of these interim condensed consolidated financial statements, the SIMADI has not been replaced and for th at reason, the Company is still using SIMADI. As of March 31, 2017 , the SIMADI exchange rate was 709.7 BsF per U.S. dollar. Until 2010 the Company was able to obtain U.S. dollars for any purpose, including dividends distribution, using alternative mechanisms other than through the Commission for the Administration of Foreign Exchange Control (CADIVI). Those U.S. dollars, obtained at a higher exchange rate than the one offered by CADIVI, and held at U.S. bank accounts of its Venezuelan subsidiaries, were used until 2011 for dividend distributions from its Venezuelan subsidiaries. The Company has not distributed dividends from the Venezuelan subsidiaries since 2011. The following table sets forth the assets, liabilities and net assets of the Company’s Venezuelan subsidiaries, before intercompany eliminations of a net liability of $20,177 thousands and $ 15,843 thousands , as of March 31, 2017 and December 31, 201 6 and net revenues for the three -month periods ended March 31, 2017 and 2016 : March 31, 2017 2016 (In thousands) Venezuelan operations Net Revenues $ 14,397 $ 12,105 March 31, December 31, 2017 2016 (In thousands) Assets 75,109 66,165 Liabilities (30,223) (22,950) Net Assets $ 44,886 $ 43,215 As of March 31, 2017 , net assets (before intercompany eliminations) of the Venezuelan subsidiaries amounted to 9.3% o f consolidated net assets, and cash and investments of the Venezuelan subsidiaries held in local currency in Venezuela amounted to 2.9% 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 interim condensed consolidated 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. 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. 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 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 Company’s Argentine subsidiary has to achieve certain required ratios annually under the software developm ent law in order to be eligible for the benefits mentioned below. On September 17, 2015, the Argentine Industry Secretary issued Resolution 1041/2015 approving the Company’s application for eligibility under the new software development law for the Company’s Argentinean subsidiary, Mercadolibre S.R.L. Furthermore, on September 18, 2016, the Argentine Industry Secretary issued Resolutions 93/2016 and 97/2016 approving the Company’s application for eligibility under the new software development law for the Company’s Argentinean subsidiaries, Neosur S.RL. and Business Vision S.A. As a result, the Company’s Argentinean subsidiaries have been granted a tax holiday retroactive from September 18, 2014. A portion of the benefits obtained as beneficiaries of the new law is a relief of 60% of total income tax related to software development activities and a 70% relief in payroll taxes related to software development activities. The benefits to the Company under the software development law will expire on December 31, 2019. As a result of the Company’s eligibility under the new law, it recorded an income tax benefit of $5,097 thousands and $ 4,342 thousands during the three-month periods ended March 31, 2017 and 2016 , respectively. Furthermore, the Company recorded a labor cost benefit of $1,991 thousands and $957 thousands during the three-month periods ended March 31, 2017 and 2016, respectively . Additionally, $496 t housands and $372 thousands were accrued to pay software development law audit fees during the first quarter of 2017 and 2016 , respectively. Aggregate per share effect of the Argentine tax holiday amounted to $0.12 and $0.12 for the three -month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and December 31, 2016 , the Company had included under non-current deferred tax assets the foreign tax credit s related to the dividend distributions received from its subsidiaries for a total amount of $13,512 thousands and $13,515 thousands, respectively. Those foreign tax credits will be used to offset the future domestic income tax payable. Accumulated other comprehensive loss The following table sets forth the Co mpany’s accumulated other comprehensive loss as of March 31, 2017 and the year ended December 31, 201 6 : March 31, December 31, 2017 2016 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ (249,561) $ (259,226) Unrealized gains (losses) on investments 1,857 (909) Estimated tax (loss) gain on unrealized gains (losses) on investments (613) 322 $ (248,317) $ (259,813) The following tables summarize the changes in accumulated balances of other comprehensive loss for the three -month period ended March 31, 2017 : Unrealized Foreign Estimated tax (Losses) Gains on Currency (expense) Investments Translation benefit Total (In thousands) Balances as of December 31, 2016 $ (909) $ (259,226) $ 322 $ (259,813) Other comprehensive loss before reclassifications adjustments for gains (losses) on available for sale investments 1,857 9,665 (613) 10,909 Amount of gain (loss) reclassified from accumulated other comprehensive loss 909 — (322) 587 Net current period other comprehensive income gain (loss) 2,766 9,665 (935) 11,496 Ending balance $ 1,857 $ (249,561) $ (613) $ (248,317) Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on investments $ (909) Interest expense and other financial losses Estimated tax gain on unrealized losses on investments 322 Income tax gain Total reclassifications for the year $ (587) Total, net of income taxes Use of estimates The preparation of interim condensed 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, recoverability of goodwill and intangible assets with indefinite useful life, useful life of long-lived assets and intangible assets, impairment of short-term and long-term investments, impairment of long-lived assets, compensation costs relating to the Company’s long term retention plan, fair value of convertible debt note, recognition of income taxes and contingencies. Actual results could differ from those estimates. Recently issued accounting pronouncements In 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. As the Company evaluates the expected impact of this ASU, the more significant changes that the Company identified in the new standard as compared with the prior standard relates to the timing and the amount of revenue to be recognized. The Company continues assessing all potential impacts that this standard, and related amendments and interpretive guidance, will have on its consolidated financial statements. The standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected its transition method. The Company will adopt the new revenue standard in its first quarter of 2018. On February 25, 2016 the FASB issued ASU 2016-02. The amendments in this update create Topic 842, Leases, which supersedes Topic 840, Leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. Previous GAAP did not require lease assets and lease liabilities to be recognized for most leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. Based on existing leases currently classified as operating leases, the Company expects to recognize on the statements of financial position right-of-use assets and lease liabilities. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on the Company’s financial statements. On June 16, 2016 the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of credit losses on financial instruments”. This update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this update eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however this topic will require that credit losses be presented as an allowance rather than as a write-down. The new standard is effective for fiscal years beginning after December 15, 2019. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On October 24, 2016 the FASB issued “ASU 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. This update eliminates the prohibition on recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party. Consequently, this update requires recognition of the current and deferred income tax consequences of an intra-entity asset transfer when the transfer occurs. The new standard is effective for fiscal years beginning after December 15, 2017. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On January 5, 2017 the FASB issued “ASU 2017-01—Business combinations (Topic 805): Clarifying the definition of a business”. The amendments in this update clarify the definition of a business with the objective of adding guidance to the evaluation of whether transactions should be accounted for as acquisitions (or disposals) of businesses. The amendments in this update provide a criteria to determine when a set of assets and activities is a business. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company´s financial statements. On February 22, 2017 the FASB issued “ASU 2017-05—Other Income— Gains and losses from the derecognition of nonfinancial assets (Subtopic 610-20): Clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets ”. The amendments in this update clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an “in substance nonfinancial asset” which can include financial assets. Also, t his update eliminates several accounting differences between transactions involving assets and transactions involving businesses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the period. On June 30, 2014, the Company issued 2.25% Convertible Senior Notes due 2019 (see Note 9 of these interim condensed consolidated financial statements for discussion regarding these debt notes). The conversion of these debt notes are included in the calculation for diluted earnings per share utilizing the “if converted” method. The effect of that conversion is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. The denominator for diluted net income per share for the three-month periods ended March 31, 2017 and 2016 does not include any effect from the capped call issued in connection with the notes because it would be antidilutive. In the event of conversion of any or all of the Notes, the shares that would be delivered to the Company under the Note hedges are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes. For the period ended March 31, 2017 and 2016, the effects on diluted earnings per share were antidilutive and, as a consequence, they were not computed for diluted earnings per share. Net income per share of common stock is as follows for the three-month periods ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (In thousands) Basic Diluted Basic Diluted Net income per common share $ 1.10 $ 1.10 $ 0.68 $ 0.68 Numerator: Net income $ 48,518 $ 48,518 $ 30,247 $ 30,247 Denominator: Weighted average of common stock outstanding for Basic earnings per share 44,157,364 44,156,961 Adjusted weighted average of common stock outstanding for Diluted earnings per share 44,157,364 44,156,961 For the three-month periods ended March 31, 2017 and 2016 there was no impact on the calculation of diluted earnings per share as a consequence of the consideration of the Convertible Notes referred to above calculated using the “if converted” method. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 4. G oodwill and intangible assets Goodwill and intangible assets The composition of goodwill and intangible assets is as follows: March 31, December 31, 2017 2016 (In thousands) Goodwill $ 95,849 $ 91,797 Intangible assets with indefinite lives - Trademarks 13,170 12,490 Amortizable intangible assets - Licenses and others 7,334 8,738 - Non-compete agreement 1,800 1,787 - Customer list 14,845 14,580 - Trademarks 1,051 993 Total intangible assets $ 38,200 $ 38,588 Accumulated amortization (11,973) (12,311) Total intangible assets, net $ 26,227 $ 26,277 Goodwill The changes in the carrying amount of goodwill for the three -month period s ended March 31, 2017 and the year ended December 31, 2016 are as follows: Period ended March 31, 2017 Brazil Argentina Chile Mexico Venezuela Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 27,660 $ 6,587 $ 17,388 $ 29,342 $ 5,989 $ 3,643 $ 1,188 $ 91,797 - Effect of exchange rates changes 749 311 137 2,485 — 148 222 4,052 Balance, end of the period $ 28,409 $ 6,898 $ 17,525 $ 31,827 $ 5,989 $ 3,791 $ 1,410 $ 95,849 Year ended December 31, 2016 Brazil Argentina Chile Mexico Venezuela Colombia Other Countries Total (In thousands) Balance, beginning of year $ 18,526 $ 7,430 $ 16,438 $ 33,834 $ 5,729 $ 3,437 $ 1,151 $ 86,545 - Business acquisition 5,635 700 — 190 260 57 32 6,874 - Effect of exchange rates changes 3,499 (1,543) 950 (4,682) — 149 5 (1,622) Balance, end of the year $ 27,660 $ 6,587 $ 17,388 $ 29,342 $ 5,989 $ 3,643 $ 1,188 $ 91,797 Intangible assets with definite useful life Intangible assets with definite useful life are comprised of customer lists , non-compete and non- solicitation agreements , acquired software licenses, other acquired intangible assets including developed technologies and trademarks . Aggregate amortization expense for intangible assets totaled $1,341 thousands and $814 thousands for the three-month periods ended March 31, 2017 and 2016, respectively. The following table summarizes the remaining amortization of intangible assets (in thousands of U.S. dollars) with definite useful life as of March 31, 2017 : For year ended 12/31/2017 $ 2,982 For year ended 12/31/2018 3,263 For year ended 12/31/2019 2,474 For year ended 12/31/2020 1,315 Thereafter 3,023 $ 13,057 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 5. Segment reporting Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed and resources are assigned , 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, Honduras, Nicaragua, Salvador, Bolivia, Guatemala, Paraguay, Peru, Portugal, Uruguay and USA). Direct contribution consists of net revenues from external cus tomers less direct costs . Direct costs include costs of net revenues, p roduct and technology development expenses , 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 and 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: Three Months Ended March 31, 2017 Brazil Argentina Mexico Venezuela Other Countries Total (In thousands) Net revenues $ 159,781 $ 71,392 $ 15,536 $ 14,397 $ 12,820 $ 273,926 Direct costs (87,037) (45,066) (16,841) (6,551) (9,739) (165,234) Direct contribution 72,744 26,326 (1,305) 7,846 3,081 108,692 Operating expenses and indirect costs of net revenues (45,378) Income from operations 63,314 Other income (expenses): Interest income and other financial gains 12,157 Interest expense and other financial losses (6,471) Foreign currency gains 663 Net income before income tax expense $ 69,663 Three Months Ended March 31, 2016 Brazil Argentina Mexico Venezuela Other Countries Total (In thousands) Net revenues $77,535 $48,201 $11,116 $12,105 $8,673 $157,630 Direct costs (50,287) (27,757) (9,438) (5,134) (6,201) (98,817) Direct contribution 27,248 20,444 1,678 6,971 2,472 58,813 Operating expenses and indirect costs of net revenues (28,324) Income from operations 30,489 Other income (expenses): Interest income and other financial gains 7,251 Interest expense and other financial losses (5,684) Foreign currency gains 5,147 Net income before income tax expense $37,203 The following table summarizes the allocation of property and equipment, net based on geography: March 31, December 31, 2017 2016 (In thousands) US property and equipment, net $ 9,764 $ 9,771 Other countries Argentina 27,237 25,071 Brazil 60,536 55,706 Mexico 2,873 2,307 Venezuela 21,813 21,615 Other countries 9,745 9,791 $ 122,204 $ 114,490 Total property and equipment, net $ 131,968 $ 124,261 The following table summarizes the allocation of the goodwill and intangible assets based on geography: March 31, December 31, 2017 2016 (In thousands) US intangible assets $ 205 $ 250 Other countries goodwill and intangible assets Argentina 7,864 7,717 Brazil 31,761 31,170 Mexico 41,871 38,860 Venezuela 7,332 7,366 Other countries 33,043 32,711 $ 121,871 $ 117,824 Total goodwill and intangible assets $ 122,076 $ 118,074 Consolidated net revenues by similar prod ucts and services for the three-month periods ended March 31, 2017 and 2016 were as follows: Three-months Ended March 31, Consolidated Net Revenues 2017 2016 (In thousands) Marketplace $ 158,466 $ 94,098 Non-marketplace (*) 115,460 63,532 Total $ 273,926 $ 157,630 (*) Includes, among other things, Ad Sales, Real Estate, Motors, Financing Fees, Off-platform Payment Fees, Shipping and other ancillary services. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurement of Assets and Liabilities [Abstract] | |
Fair Value Measurement of Assets and Liabilities | 6. 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 March 31, 2017 and December 31, 201 6 : Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2017 (Level 1) (Level 2) (Level 3) 2016 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 140,641 $ 140,641 $ — $ — $ 111,198 $ 111,198 $ — $ — Corporate Debt Securities 7,289 — 7,289 — — — — — Investments: Sovereign Debt Securities $ 47,030 $ 47,030 $ — $ — $ 50,703 $ 50,703 $ — $ — Corporate Debt Securities 210,708 118,148 92,560 — 207,633 61,986 145,647 — Certificates of deposit 33,376 — 33,376 — 35,374 — 35,374 — Total Financial Assets $ 439,044 $ 305,819 $ 133,225 $ — $ 404,908 $ 223,887 $ 181,021 $ — Liabilities: Contingent considerations $ 3,156 $ — $ — $ 3,156 $ 4,213 $ — $ — $ 4,213 Long-term retention plan 34,368 — 34,368 — 27,135 — 27,135 — Total Financial Liabilities $ 37,524 $ — $ 34,368 $ 3,156 $ 31,348 $ — $ 27,135 $ 4,213 As of March 31, 2017 and December 31, 2016, 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: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date. As of March 31, 2017 and December 31, 2016 , the Company´s liabilities were valued at fair value using level 2 inputs and level 3 inputs (valuations based on unobservable inputs reflecting Company assumptions). Fair value of contingent considerations are determined based on the probability of achievement of the performance targets arising from each acquisition, as well as the Company’s historical experience with similar arrangements. For the three-month period ended March 31, 2017, the Company recognized in earnings a loss of $73 thousands and a gains of $85 thousands within other comprehensive income, in relation with contingent considerations. In addition, during the three-month period ended March 31, 2017, the Company settled contingent considerations for an amount of $1,215 thousands. 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 March 31, 2017 and December 31, 2016, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value mainly because of its short term maturity. These assets and liabilities included cash, cash equivalents and short-term investments (excluding money markets funds and corporate debt security), accounts receivable, credit cards receivable, loans receivable, funds payable to customers, other assets, accounts payable, salaries and social security payable (excluding variable LTRP), taxes payable, provisions and other liabilities (excluding contingent consideration). The convertible senior notes (liability component), the rest of the loans payable and other financial liabilities approximate their fair value because the interest rates are not materially different from market interest rates . The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of March 31, 2017 and December 31, 2016 : Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2017 (Level 2) 2016 (Level 2) (In thousands) Assets Time Deposits $ 144,082 $ 144,082 $ 113,414 $ 113,414 Accounts receivable 24,097 24,097 25,435 25,435 Credit Cards receivable 300,612 300,612 307,904 307,904 Loans receivable, net 11,380 11,380 6,283 6,283 Other assets 66,035 66,035 58,900 58,900 Total Assets $ 546,206 $ 546,206 $ 511,936 $ 511,936 Liabilities Accounts payable and accrued expenses $ 108,507 $ 108,507 $ 105,106 $ 105,106 Funds payable to customers 396,487 396,487 370,693 370,693 Salaries and social security payable 51,472 51,472 37,936 37,936 Taxes payable 30,668 30,668 27,338 27,338 Dividends payable 6,624 6,624 6,624 6,624 Loans payable and other financial liabilities (*) 320,964 320,964 313,523 313,523 Other liabilities 12,326 12,326 11,954 11,954 Total Liabilities $ 927,048 $ 927,048 $ 873,174 $ 873,174 (*) The fair value of the convertible senior notes (including the equity component) is disclosed in Note 9. As of March 31, 2017 and December 31, 2016 , the Company held no direct investments in auction rate securities, collateralized debt obligations or structured investment vehicles , and does not have any non-financial assets or liabilities measured at fair value . As of March 31, 2017 and December 31, 2016 , the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows: March 31, 2017 Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 140,641 $ — $ — $ 140,641 Corporate Debt Securities 7,291 1 (3) 7,289 Total Cash and cash equivalents $ 147,932 $ 1 $ (3) $ 147,930 Short-term investments Sovereign Debt Securities $ 1,096 $ — $ (3) $ 1,093 Corporate Debt Securities 89,723 36 (139) 89,620 Certificates of deposit 30,339 36 (5) 30,370 Total Short-term investments $ 121,158 $ 72 $ (147) $ 121,083 Long-term investments Sovereign Debt Securities $ 46,236 $ — $ (299) $ 45,937 Corporate Debt Securities 121,217 156 (285) 121,088 Certificates of deposit 3,007 1 (2) 3,006 Total Long-term investments $ 170,460 $ 157 $ (586) $ 170,031 Total $ 439,550 $ 230 $ (736) $ 439,044 December 31, 2016 Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 111,198 $ — $ — $ 111,198 Total Cash and cash equivalents $ 111,198 $ — $ — $ 111,198 Short-term investments Sovereign Debt Securities $ 2,166 $ — $ — $ 2,166 Corporate Debt Securities 102,509 26 (168) 102,367 Certificates of deposit 35,336 40 (2) 35,374 Total Short-term investments $ 140,011 $ 66 $ (170) $ 139,907 Long-term investments Sovereign Debt Securities $ 48,943 $ — $ (406) $ 48,537 Corporate Debt Securities 105,632 90 (456) 105,266 Total Long-term investments $ 154,575 $ 90 $ (862) $ 153,803 Total $ 405,784 $ 156 $ (1,032) $ 404,908 (1) Unrealized gains (losses) from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. Management does not believe any remaining significant unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of March 31, 2017 and December 31, 2016. The material portion of the Sovereign Debt Securities is U.S. Treasury Notes with no significant risk associated. As of March 31, 2017 , the estimated fair values (in thousands of U.S. dollars) of cash equivalents , short-term and long-term investments classified by its effective maturities are as follows: One year or less $ 269,013 One year to two years 75,912 Two years to three years 72,968 Three years to four years 14,130 Four years to five years 7,021 Total $ 439,044 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 7. 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 March 31, 2017, the Company had established reserves for proceeding-related contingencies and other estimated contingencies of $6,044 thousands to cover legal actions against the Company in which its Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided . In addition, as of March 31, 2017 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 $4,875 thousands. 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 March 31, 2017, there were 53 lawsuits pending against our Argentine subsidiary in the Argentine ordinary courts and 1,785 pending claims in the Argentine Consumer Protection Agencies, where a lawyer is not required to file or pursue a claim. As of March 31, 2017, there were 9 claims pending against our Mexican subsidiaries in the Mexican ordinary courts and 109 claims pending against our Mexican subsidiaries in the Mexican Consumer Protection Agencies, where a lawyer is not required to file or pursue a claim. As of March 31, 2017, 678 legal actions were pending in the Brazilian ordinary courts. In addition, as of March 31, 2017, there were 3,357 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 mo st 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. 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. As of March 31, 2017, there have been no significant changes in litigation and other legal matters since the year ended December 31, 2016 and disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. |
Long Term Retention Plan
Long Term Retention Plan | 3 Months Ended |
Mar. 31, 2017 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plan | 8. Long term retention plan (“LTRP”) On April 3, 2017, the Board of Directors, upon the recommendation of the Compensation Committee, adopted the 2017 Long-Term Retention Plan (“2017 LTRP”). In addition to the annual salary and bonus of each employee , certain employees (“Eligible Employees”) are eligible to participate in the 2017 LTRP, which provides for the grant to an eligible employee of a cash-settled fixed (a “2017 LTRP Fixed Award”) and a cash-settled variable award, (a “2017 LTRP Variable Award”, and together with any 2017 LTRP Fixed Award, the “2017 LTRP Awards”). Each eligible employee will be granted both a 2017 LTRP Fixed Award and a 2017 LTRP Variable Award, in addition to receiving their annual salary and bonus. In order to receive payment in respect of the 2017 LTRP Awards, each eligible employee must satisfy the performance conditions established by the Board of Directors for such employee. If these conditions are satisfied, the eligible employee will, subject to his or her continued employment as of each applicable payment date, receive the full amount of his or her 2017 LTRP Awards, payable as follows: · 2017 LTRP Fixed Award: The eligible employee will receive a fixed payment equal to 16.66% of his or her 2017 Fixed Award once a year for a period of six years starting i n March 2018 (the “Annual Fixed Payment”); and · 2017 LTRP Variable Award: On each date the Company pays the Annual Fixed Payment to the eligible employee, he or she will also receive a 2017 LTRP Variable Award payment equal to the product of (i) 16.66% of the applicable 2017 LTRP Variable Award and (ii) the quotient of (a) divided by (b), where (a), the numerator, equals the Applicable Year Stock Price (as defined below) and (b), the denominator, equals the 2016 Stock Price (as defined below). For purposes of the 2017 LTRP, the “2016 Stock Price” shall equal $164.17 (the average closing price of the Company´s common stock on the NASDAQ Global Market during the final 60 -trading days of 2016) and the “Applicable Year Stock Price” shall equal the average closing price of the Company´s common stock on the NASDAQ Global Market during the final 60-trading days of the year preceding the applicable payment date for so long as the Company´s common stock is listed on the NASDAQ. The following table summarizes the 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017 long term retention plan accrued compensation expense for the three-month periods ended March 31, 2017 and 2016 , which are payable in cash according to the decision s made by the Board of Directors: Three Months Ended March 31, 2017 2016 (In thousands) LTRP 2009 $ 42 $ 33 LTRP 2010 327 62 LTRP 2011 489 96 LTRP 2012 648 130 LTRP 2013 1,296 413 LTRP 2014 1,264 505 LTRP 2015 1,586 893 LTRP 2016 2,240 - LTRP 2017 1,283 - Total LTRP $ 9,175 $ 2,132 |
2.25% Convertible Senior Notes
2.25% Convertible Senior Notes Due 2019 | 3 Months Ended |
Mar. 31, 2017 | |
2.25% Convertible Senior Notes Due 2019 [Abstract] | |
2.25% Convertible Senior Notes Due 2019 | 9. 2.25% Convertible Senior Notes Due 2019 On June 30, 2014, the Company issued $330 million of 2.25% convertible senior notes due 2019 (the “Notes”). The Notes are unsecured, unsubordinated obligations of the Company, which pay interest in cash semi-annually, on January 1 and July 1, at a rate of 2.25% per annum. The Notes will mature on July 1, 2019 unless earlier repurchased or converted in accordance with their terms prior to such date. The Notes may be converted, under specific conditions, based on an initial conversion rate of 7.9353 shares of common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of $126.02 per share of common stock), subject to adjustment as described in the indenture governing the Notes. Holders may convert their notes at their option at any time prior to January 1, 2019 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after January 1, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. During the period from October 1, 2016 through December 31, 2016, 12 Notes were converted for a total amount of $12 thousands. During the first quarter of 2017, the conversion threshold had been met and the Notes became convertible at the holders’ option beginning on April 1, 2017 and ending on June 30, 2017 . The determination of whether or not the Notes are convertible must continue to be performed on a quarterly basis. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. The intention of the Company is to share-settle the total amount due upon conversion of the Notes. From April 1, 2017 to the date of issuance of these interim condensed consolidated financial statements, none of the holders had requested additional conversion of the Notes. The total estimated fair value of the Notes was $577.6 million and $458.8 million as of March 31, 2017 and December 31, 2016 , respectively. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The Company considered the fair value of the Notes as of March 31, 2017 and December 31, 2016 to be a Level 2 measurement. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the $211.5 closing price of the Company’s common stock on March 31, 2017 , the if-converted value of the Notes exceeded their principal amount by $223.8 million. The following table presents the carrying amounts of the liability and equity components related to the 2.25% Convertible Senior Notes Due 2019 as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 (In thousands) Amount of the equity component (1) $ 45,808 $ 45,808 2.25% convertible senior notes due 2019 $ 330,000 $ 330,000 Unamortized debt discount (2) (22,723) (25,097) Unamortized transaction costs related to the debt component (3,605) (3,968) Contractual coupon interest accrual 1,856 7,425 Contractual coupon interest payment — (7,425) Net carrying amount $ 305,528 $ 300,935 (1) Net of $1,177 thousands of transaction costs related to the equity component of the Notes. (2) As of March 31, 2017 , the remaining period over which the unamortized debt discount will be amortized is 2.25 years. The following table presents the interest expense for the contractual interest, the accretion of debt discount and the amortization of debt issuance costs: Three-month period ended March 31, 2017 Three-month period ended March 31, 2016 (In thousands) (In thousands) Contractual coupon interest expense $ 1,856 $ 1,856 Amortization of debt discount 2,374 2,248 Amortization of debt issuance costs 363 327 Total interest expense related to Notes $ 4,593 $ 4,431 |
Cash Dividend Distribution
Cash Dividend Distribution | 3 Months Ended |
Mar. 31, 2017 | |
Cash Dividend Distribution [Abstract] | |
Cash Dividend Distribution | 10. Cash Dividend Distribution In each of February, May, August and November of 2016 , the Board of Directors approved a quarterly cash dividend of $6,624 thousands (or $0.150 per share) on the Company’s outstanding shares of common stock. The dividends were paid on April 15 , July 15 , October 14, 2016 and January 16, 2017 to stockholders of record as of the close of business on March 31 , June 30 , September 30 , and December 31, 2016 . On March 2, 2017 , the B oard of D irectors approved a change to the Company’s dividend policy for providing for a fixed quarterly dividend payment in 2017 of $0.15 per share ( $0.60 per share annually). The new dividend policy will take effect following the payment of the $0.15 per share dividend declared by the Board of Directors of the Company payable on April 17, 2017 to shareholders of record as of the close of business on March 31, 2017 . On May 2, 2017 , the Board of Directors approved a quarterly cash dividend of $6,624 thousands (or $0.150 per share) on the Company´s outstanding shares of common stock. The second quarterly dividend is payable on July 14, 2017 to stockholders of record as of the close of business on June 30, 2017 . |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited interim condensed 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. These interim condensed consolidated financial statements are stated in U.S. dollars , except for amounts otherwise indicated . Intercompany transactions and balances with subsidiaries 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 98.8% and 99.8% of the con solidated amounts during the three -month periods ended March 31, 201 7 and 2016. Long-lived assets, Intangible assets and G oodwill located in the foreign jurisdictions totaled $244,075 thousands and $ 232,314 thousands as of March 31, 2017 and December 31, 2016 , respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2017 and December 31, 201 6 . These financial statements also show the Company’s consolidated statements of income and comprehensive income for the three-month periods ended March 31 , 201 7 and 201 6; and statement of cash flows for the three-month periods ended March 31, 2017 and 2016 . These interim condensed consolidated financial statements include all normal recurring adjustments that management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 201 6 , contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The condensed consolidated statements of income, of comprehensive income and of cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Form 10-K. During the three-month period ended March 31, 2017, there were no material updates made to the Company’s significant accounting policies. |
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 operating subsidiaries translate assets and liabilities from their local currencies into U.S. dollars by using period -end exchange rates while income and expense accounts are translated at the average rates in effect during the period , unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translat ion adjustment is recorded as a component of other comprehensive (loss) income. Venezuelan currency status Pursuant 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 interim condensed consolidated financial statements, the cumulative three -year inflation rate exceeds 100% . Thus , the Company continues to treat the economy of Venezuela as highly-inflationary. On March 9, 2016 the Central Bank of Venezuela (“ BCV ”) issued the Exchange Agreement No.35, which is effective since March 10, 2016. The agreement established a “protected” exchange rate (“DIPRO”) for certain transactions, such as but not limited to: imports of goods of the food and health sectors, as well as supplies associated with the production of said sectors; expenses relating to health treatments, sports, culture, scientific research, and other urgent matters defined by the exchange regulations. All foreign currency transactions not expressly provided in Exchange Agreement No.35 will be processed on the alternate foreign currency markets governed by the exchange regulations, at the floating supplementary market exchange rate (“DICOM”). Additionally, the agreement established that the alternate foreign currency markets referred to in Exchange Agreement No.33 of February 10, 2015 ( “ SIMADI ” ) will continue to operate until replaced by others. As of the date of issuance of these interim condensed consolidated financial statements, the SIMADI has not been replaced and for th at reason, the Company is still using SIMADI. As of March 31, 2017 , the SIMADI exchange rate was 709.7 BsF per U.S. dollar. Until 2010 the Company was able to obtain U.S. dollars for any purpose, including dividends distribution, using alternative mechanisms other than through the Commission for the Administration of Foreign Exchange Control (CADIVI). Those U.S. dollars, obtained at a higher exchange rate than the one offered by CADIVI, and held at U.S. bank accounts of its Venezuelan subsidiaries, were used until 2011 for dividend distributions from its Venezuelan subsidiaries. The Company has not distributed dividends from the Venezuelan subsidiaries since 2011. The following table sets forth the assets, liabilities and net assets of the Company’s Venezuelan subsidiaries, before intercompany eliminations of a net liability of $20,177 thousands and $ 15,843 thousands , as of March 31, 2017 and December 31, 201 6 and net revenues for the three -month periods ended March 31, 2017 and 2016 : March 31, 2017 2016 (In thousands) Venezuelan operations Net Revenues $ 14,397 $ 12,105 March 31, December 31, 2017 2016 (In thousands) Assets 75,109 66,165 Liabilities (30,223) (22,950) Net Assets $ 44,886 $ 43,215 As of March 31, 2017 , net assets (before intercompany eliminations) of the Venezuelan subsidiaries amounted to 9.3% o f consolidated net assets, and cash and investments of the Venezuelan subsidiaries held in local currency in Venezuela amounted to 2.9% 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 interim condensed consolidated 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. |
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. 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 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 Company’s Argentine subsidiary has to achieve certain required ratios annually under the software developm ent law in order to be eligible for the benefits mentioned below. On September 17, 2015, the Argentine Industry Secretary issued Resolution 1041/2015 approving the Company’s application for eligibility under the new software development law for the Company’s Argentinean subsidiary, Mercadolibre S.R.L. Furthermore, on September 18, 2016, the Argentine Industry Secretary issued Resolutions 93/2016 and 97/2016 approving the Company’s application for eligibility under the new software development law for the Company’s Argentinean subsidiaries, Neosur S.RL. and Business Vision S.A. As a result, the Company’s Argentinean subsidiaries have been granted a tax holiday retroactive from September 18, 2014. A portion of the benefits obtained as beneficiaries of the new law is a relief of 60% of total income tax related to software development activities and a 70% relief in payroll taxes related to software development activities. The benefits to the Company under the software development law will expire on December 31, 2019. As a result of the Company’s eligibility under the new law, it recorded an income tax benefit of $5,097 thousands and $ 4,342 thousands during the three-month periods ended March 31, 2017 and 2016 , respectively. Furthermore, the Company recorded a labor cost benefit of $1,991 thousands and $957 thousands during the three-month periods ended March 31, 2017 and 2016, respectively . Additionally, $496 t housands and $372 thousands were accrued to pay software development law audit fees during the first quarter of 2017 and 2016 , respectively. Aggregate per share effect of the Argentine tax holiday amounted to $0.12 and $0.12 for the three -month periods ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and December 31, 2016 , the Company had included under non-current deferred tax assets the foreign tax credit s related to the dividend distributions received from its subsidiaries for a total amount of $13,512 thousands and $13,515 thousands, respectively. Those foreign tax credits will be used to offset the future domestic income tax payable. |
Use of Estimates | Use of estimates The preparation of interim condensed 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, recoverability of goodwill and intangible assets with indefinite useful life, useful life of long-lived assets and intangible assets, impairment of short-term and long-term investments, impairment of long-lived assets, compensation costs relating to the Company’s long term retention plan, fair value of convertible debt note, recognition of income taxes and contingencies. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements In 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. As the Company evaluates the expected impact of this ASU, the more significant changes that the Company identified in the new standard as compared with the prior standard relates to the timing and the amount of revenue to be recognized. The Company continues assessing all potential impacts that this standard, and related amendments and interpretive guidance, will have on its consolidated financial statements. The standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected its transition method. The Company will adopt the new revenue standard in its first quarter of 2018. On February 25, 2016 the FASB issued ASU 2016-02. The amendments in this update create Topic 842, Leases, which supersedes Topic 840, Leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. Previous GAAP did not require lease assets and lease liabilities to be recognized for most leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. Based on existing leases currently classified as operating leases, the Company expects to recognize on the statements of financial position right-of-use assets and lease liabilities. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on the Company’s financial statements. On June 16, 2016 the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of credit losses on financial instruments”. This update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this update eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however this topic will require that credit losses be presented as an allowance rather than as a write-down. The new standard is effective for fiscal years beginning after December 15, 2019. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On October 24, 2016 the FASB issued “ASU 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. This update eliminates the prohibition on recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party. Consequently, this update requires recognition of the current and deferred income tax consequences of an intra-entity asset transfer when the transfer occurs. The new standard is effective for fiscal years beginning after December 15, 2017. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On January 5, 2017 the FASB issued “ASU 2017-01—Business combinations (Topic 805): Clarifying the definition of a business”. The amendments in this update clarify the definition of a business with the objective of adding guidance to the evaluation of whether transactions should be accounted for as acquisitions (or disposals) of businesses. The amendments in this update provide a criteria to determine when a set of assets and activities is a business. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company´s financial statements. On February 22, 2017 the FASB issued “ASU 2017-05—Other Income— Gains and losses from the derecognition of nonfinancial assets (Subtopic 610-20): Clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets ”. The amendments in this update clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an “in substance nonfinancial asset” which can include financial assets. Also, t his update eliminates several accounting differences between transactions involving assets and transactions involving businesses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Venezuelan Subsidiaries | March 31, 2017 2016 (In thousands) Venezuelan operations Net Revenues $ 14,397 $ 12,105 March 31, December 31, 2017 2016 (In thousands) Assets 75,109 66,165 Liabilities (30,223) (22,950) Net Assets $ 44,886 $ 43,215 |
Accumulated Other Comprehensive Loss | March 31, December 31, 2017 2016 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ (249,561) $ (259,226) Unrealized gains (losses) on investments 1,857 (909) Estimated tax (loss) gain on unrealized gains (losses) on investments (613) 322 $ (248,317) $ (259,813) |
Summary of Changes in Accumulated Balances of Other Comprehensive Loss | Unrealized Foreign Estimated tax (Losses) Gains on Currency (expense) Investments Translation benefit Total (In thousands) Balances as of December 31, 2016 $ (909) $ (259,226) $ 322 $ (259,813) Other comprehensive loss before reclassifications adjustments for gains (losses) on available for sale investments 1,857 9,665 (613) 10,909 Amount of gain (loss) reclassified from accumulated other comprehensive loss 909 — (322) 587 Net current period other comprehensive income gain (loss) 2,766 9,665 (935) 11,496 Ending balance $ 1,857 $ (249,561) $ (613) $ (248,317) |
Reclassifications Out of Accumulated Other Comprehensive Loss | Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on investments $ (909) Interest expense and other financial losses Estimated tax gain on unrealized losses on investments 322 Income tax gain Total reclassifications for the year $ (587) Total, net of income taxes |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net Income Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | Net income per share of common stock is as follows for the three-month periods ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 (In thousands) Basic Diluted Basic Diluted Net income per common share $ 1.10 $ 1.10 $ 0.68 $ 0.68 Numerator: Net income $ 48,518 $ 48,518 $ 30,247 $ 30,247 Denominator: Weighted average of common stock outstanding for Basic earnings per share 44,157,364 44,156,961 Adjusted weighted average of common stock outstanding for Diluted earnings per share 44,157,364 44,156,961 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Composition of Goodwill and Intangible Assets | March 31, December 31, 2017 2016 (In thousands) Goodwill $ 95,849 $ 91,797 Intangible assets with indefinite lives - Trademarks 13,170 12,490 Amortizable intangible assets - Licenses and others 7,334 8,738 - Non-compete agreement 1,800 1,787 - Customer list 14,845 14,580 - Trademarks 1,051 993 Total intangible assets $ 38,200 $ 38,588 Accumulated amortization (11,973) (12,311) Total intangible assets, net $ 26,227 $ 26,277 |
Table Showing Changes in Carrying Amount of Goodwill | Period ended March 31, 2017 Brazil Argentina Chile Mexico Venezuela Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 27,660 $ 6,587 $ 17,388 $ 29,342 $ 5,989 $ 3,643 $ 1,188 $ 91,797 - Effect of exchange rates changes 749 311 137 2,485 — 148 222 4,052 Balance, end of the period $ 28,409 $ 6,898 $ 17,525 $ 31,827 $ 5,989 $ 3,791 $ 1,410 $ 95,849 Year ended December 31, 2016 Brazil Argentina Chile Mexico Venezuela Colombia Other Countries Total (In thousands) Balance, beginning of year $ 18,526 $ 7,430 $ 16,438 $ 33,834 $ 5,729 $ 3,437 $ 1,151 $ 86,545 - Business acquisition 5,635 700 — 190 260 57 32 6,874 - Effect of exchange rates changes 3,499 (1,543) 950 (4,682) — 149 5 (1,622) Balance, end of the year $ 27,660 $ 6,587 $ 17,388 $ 29,342 $ 5,989 $ 3,643 $ 1,188 $ 91,797 |
Expected Intangible Asset Amortization Expense | For year ended 12/31/2017 $ 2,982 For year ended 12/31/2018 3,263 For year ended 12/31/2019 2,474 For year ended 12/31/2020 1,315 Thereafter 3,023 $ 13,057 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial Performance of Company's Reporting Segments | Three Months Ended March 31, 2017 Brazil Argentina Mexico Venezuela Other Countries Total (In thousands) Net revenues $ 159,781 $ 71,392 $ 15,536 $ 14,397 $ 12,820 $ 273,926 Direct costs (87,037) (45,066) (16,841) (6,551) (9,739) (165,234) Direct contribution 72,744 26,326 (1,305) 7,846 3,081 108,692 Operating expenses and indirect costs of net revenues (45,378) Income from operations 63,314 Other income (expenses): Interest income and other financial gains 12,157 Interest expense and other financial losses (6,471) Foreign currency gains 663 Net income before income tax expense $ 69,663 Three Months Ended March 31, 2016 Brazil Argentina Mexico Venezuela Other Countries Total (In thousands) Net revenues $77,535 $48,201 $11,116 $12,105 $8,673 $157,630 Direct costs (50,287) (27,757) (9,438) (5,134) (6,201) (98,817) Direct contribution 27,248 20,444 1,678 6,971 2,472 58,813 Operating expenses and indirect costs of net revenues (28,324) Income from operations 30,489 Other income (expenses): Interest income and other financial gains 7,251 Interest expense and other financial losses (5,684) Foreign currency gains 5,147 Net income before income tax expense $37,203 |
Allocation of Long-Lived Tangible Assets Based on Geography | March 31, December 31, 2017 2016 (In thousands) US property and equipment, net $ 9,764 $ 9,771 Other countries Argentina 27,237 25,071 Brazil 60,536 55,706 Mexico 2,873 2,307 Venezuela 21,813 21,615 Other countries 9,745 9,791 $ 122,204 $ 114,490 Total property and equipment, net $ 131,968 $ 124,261 |
Allocation of Goodwill and Intangible Assets Based on Geography | March 31, December 31, 2017 2016 (In thousands) US intangible assets $ 205 $ 250 Other countries goodwill and intangible assets Argentina 7,864 7,717 Brazil 31,761 31,170 Mexico 41,871 38,860 Venezuela 7,332 7,366 Other countries 33,043 32,711 $ 121,871 $ 117,824 Total goodwill and intangible assets $ 122,076 $ 118,074 |
Consolidated Net Revenues by Similar Products and Services | Three-months Ended March 31, Consolidated Net Revenues 2017 2016 (In thousands) Marketplace $ 158,466 $ 94,098 Non-marketplace (*) 115,460 63,532 Total $ 273,926 $ 157,630 (*) |
Fair Value Measurement of Ass22
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurement of Assets and Liabilities [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2017 (Level 1) (Level 2) (Level 3) 2016 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 140,641 $ 140,641 $ — $ — $ 111,198 $ 111,198 $ — $ — Corporate Debt Securities 7,289 — 7,289 — — — — — Investments: Sovereign Debt Securities $ 47,030 $ 47,030 $ — $ — $ 50,703 $ 50,703 $ — $ — Corporate Debt Securities 210,708 118,148 92,560 — 207,633 61,986 145,647 — Certificates of deposit 33,376 — 33,376 — 35,374 — 35,374 — Total Financial Assets $ 439,044 $ 305,819 $ 133,225 $ — $ 404,908 $ 223,887 $ 181,021 $ — Liabilities: Contingent considerations $ 3,156 $ — $ — $ 3,156 $ 4,213 $ — $ — $ 4,213 Long-term retention plan 34,368 — 34,368 — 27,135 — 27,135 — Total Financial Liabilities $ 37,524 $ — $ 34,368 $ 3,156 $ 31,348 $ — $ 27,135 $ 4,213 |
Fair Value of Financial Assets and Liabilities Measured at Amortized Cost | Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2017 (Level 2) 2016 (Level 2) (In thousands) Assets Time Deposits $ 144,082 $ 144,082 $ 113,414 $ 113,414 Accounts receivable 24,097 24,097 25,435 25,435 Credit Cards receivable 300,612 300,612 307,904 307,904 Loans receivable, net 11,380 11,380 6,283 6,283 Other assets 66,035 66,035 58,900 58,900 Total Assets $ 546,206 $ 546,206 $ 511,936 $ 511,936 Liabilities Accounts payable and accrued expenses $ 108,507 $ 108,507 $ 105,106 $ 105,106 Funds payable to customers 396,487 396,487 370,693 370,693 Salaries and social security payable 51,472 51,472 37,936 37,936 Taxes payable 30,668 30,668 27,338 27,338 Dividends payable 6,624 6,624 6,624 6,624 Loans payable and other financial liabilities (*) 320,964 320,964 313,523 313,523 Other liabilities 12,326 12,326 11,954 11,954 Total Liabilities $ 927,048 $ 927,048 $ 873,174 $ 873,174 (*) The fair value of the convertible senior notes (including the equity component) is disclosed in Note 9. |
Fair Value of Money Market Funds, Short and Long-Term Investments Classified as Available for Sale Securities | March 31, 2017 Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 140,641 $ — $ — $ 140,641 Corporate Debt Securities 7,291 1 (3) 7,289 Total Cash and cash equivalents $ 147,932 $ 1 $ (3) $ 147,930 Short-term investments Sovereign Debt Securities $ 1,096 $ — $ (3) $ 1,093 Corporate Debt Securities 89,723 36 (139) 89,620 Certificates of deposit 30,339 36 (5) 30,370 Total Short-term investments $ 121,158 $ 72 $ (147) $ 121,083 Long-term investments Sovereign Debt Securities $ 46,236 $ — $ (299) $ 45,937 Corporate Debt Securities 121,217 156 (285) 121,088 Certificates of deposit 3,007 1 (2) 3,006 Total Long-term investments $ 170,460 $ 157 $ (586) $ 170,031 Total $ 439,550 $ 230 $ (736) $ 439,044 December 31, 2016 Cost Gross Unrealized Gains (1) Gross Unrealized Losses (1) Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 111,198 $ — $ — $ 111,198 Total Cash and cash equivalents $ 111,198 $ — $ — $ 111,198 Short-term investments Sovereign Debt Securities $ 2,166 $ — $ — $ 2,166 Corporate Debt Securities 102,509 26 (168) 102,367 Certificates of deposit 35,336 40 (2) 35,374 Total Short-term investments $ 140,011 $ 66 $ (170) $ 139,907 Long-term investments Sovereign Debt Securities $ 48,943 $ — $ (406) $ 48,537 Corporate Debt Securities 105,632 90 (456) 105,266 Total Long-term investments $ 154,575 $ 90 $ (862) $ 153,803 Total $ 405,784 $ 156 $ (1,032) $ 404,908 (1) Unrealized gains (losses) from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. Management does not believe any remaining significant unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of March 31, 2017 and December 31, 2016. |
Estimated Fair Values of Money Market Funds, Short-Term and Long-Term Investments | One year or less $ 269,013 One year to two years 75,912 Two years to three years 72,968 Three years to four years 14,130 Four years to five years 7,021 Total $ 439,044 |
Long Term Retention Plan (Table
Long Term Retention Plan (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plans Accrued Compensation Expense | Three Months Ended March 31, 2017 2016 (In thousands) LTRP 2009 $ 42 $ 33 LTRP 2010 327 62 LTRP 2011 489 96 LTRP 2012 648 130 LTRP 2013 1,296 413 LTRP 2014 1,264 505 LTRP 2015 1,586 893 LTRP 2016 2,240 - LTRP 2017 1,283 - Total LTRP $ 9,175 $ 2,132 |
2.25% Convertible Senior Note24
2.25% Convertible Senior Notes Due 2019 (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
2.25% Convertible Senior Notes Due 2019 [Abstract] | |
Carrying Amounts of Liability and Equity Components | March 31, 2017 December 31, 2016 (In thousands) Amount of the equity component (1) $ 45,808 $ 45,808 2.25% convertible senior notes due 2019 $ 330,000 $ 330,000 Unamortized debt discount (2) (22,723) (25,097) Unamortized transaction costs related to the debt component (3,605) (3,968) Contractual coupon interest accrual 1,856 7,425 Contractual coupon interest payment — (7,425) Net carrying amount $ 305,528 $ 300,935 (1) Net of $1,177 thousands of transaction costs related to the equity component of the Notes. (2) As of March 31, 2017 , the remaining period over which the unamortized debt discount will be amortized is 2.25 years. |
Summary of Interest Expense for Contractual Interest and Accretion of Debt Discount | Three-month period ended March 31, 2017 Three-month period ended March 31, 2016 (In thousands) (In thousands) Contractual coupon interest expense $ 1,856 $ 1,856 Amortization of debt discount 2,374 2,248 Amortization of debt issuance costs 363 327 Total interest expense related to Notes $ 4,593 $ 4,431 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)$ / sharesVEF / $ | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||
Percentage of revenues and operating costs generated in foreign operations | 98.80% | 99.80% | |
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 244,075 | $ 232,314 | |
Foreign currency gains | 663 | $ 5,147 | |
Long-Lived Assets | 131,968 | 124,261 | |
Liabilities | $ 1,001,402 | 938,581 | |
Percentage on relief of total income tax | 60.00% | ||
Percentage on relief of payroll tax | 70.00% | ||
Foreign tax credit | $ 13,512 | 13,515 | |
New Software Development Law [Member] | |||
Significant Accounting Policies [Line Items] | |||
Income tax gain | 5,097 | 4,342 | |
Labor cost benefit | $ 1,991 | $ 957 | |
Aggregate per share effect of the Argentine tax holiday | $ / shares | $ 0.12 | $ 0.12 | |
Software development law audit fees | $ 496 | $ 372 | |
Venezuelan Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange rate | VEF / $ | 709.7 | ||
Cumulative Inflation Rate Period | 3 years | ||
Foreign currency inflation rate | 100.00% | ||
Liabilities | $ 30,223 | 22,950 | |
Percentage of consolidated net assets | 9.30% | ||
Percentage of consolidated cash and investments | 2.90% | ||
Venezuelan Operations [Member] | Intersegment Eliminations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Liabilities | $ 20,177,000 | $ 15,843,000 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Assets, Liabilities and Net Assets of Company's Venezuelan Subsidiaries) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||
Net Revenues | $ 273,926 | $ 157,630 | |
Assets | 1,483,646 | $ 1,367,435 | |
Liabilities | (1,001,402) | (938,581) | |
Venezuelan Operations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net Revenues | 14,397 | $ 12,105 | |
Assets | 75,109 | 66,165 | |
Liabilities | (30,223) | (22,950) | |
Net Assets | $ 44,886 | $ 43,215 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Summary of Significant Accounting Policies [Abstract] | ||
Foreign currency translation | $ (249,561) | $ (259,226) |
Unrealized gains (losses) on investments | 1,857 | (909) |
Estimated tax (loss) gain on unrealized gains (losses) on investments | (613) | 322 |
Accumulated other comprehensive loss | $ (248,317) | $ (259,813) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Summary of Changes in Accumulated Balances of Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance, Estimated tax (expense) benefit | $ 322 | |
Other comprehensive loss before reclassifications adjustments for gains (losses) on available for sale investments, tax | (613) | |
Amount of gain (loss) reclassified from accumulated other comprehensive loss, Estimated tax (expense) benefit | (322) | |
Net current period other comprehensive income gain (loss), Estimated tax (expense) benefit | (935) | |
Ending Balance, Estimated tax (expense) benefit | (613) | |
Beginning Balance | (259,813) | |
Other comprehensive income before reclassifications adjustments for (losses) gains on available for sale investments, net of tax | 10,909 | |
Amount of gain (loss) reclassified from accumulated other comprehensive loss, net of tax | 587 | $ 672 |
Net current period other comprehensive income gain (loss), net of tax | 11,496 | |
Ending Balance | (248,317) | |
Unrealized Gains on Investments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | (909) | |
Other comprehensive income before reclassifications adjustments for (losses) gains on available for sale investments, before tax | 1,857 | |
Amount of gain (loss) reclassified from accumulated other comprehensive loss, before tax | 909 | |
Net current period other comprehensive income (loss), before tax | 2,766 | |
Ending Balance | 1,857 | |
Foreign Currency Translation [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | (259,226) | |
Other comprehensive income before reclassifications adjustments for (losses) gains on available for sale investments, before tax | 9,665 | |
Net current period other comprehensive income (loss), before tax | 9,665 | |
Ending Balance | $ (249,561) |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense and other financial losses | $ (6,471) | $ (5,684) |
Income tax gain | (21,145) | $ (6,956) |
Amount of Gain Reclassified from Accumulated Other Comprehensive Income [Member] | Unrealized Gains on Investments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense and other financial losses | (909) | |
Income tax gain | 322 | |
Net income attributable to MercadoLibre, Inc. shareholders | $ (587) |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) | Mar. 31, 2017 | Jun. 30, 2014 |
2.25% Convertible Senior Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Convertible senior notes, interest rate | 2.25% | 2.25% |
Net Income Per Share (Net Incom
Net Income Per Share (Net Income (Loss) Per Share of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income attributable to MercadoLibre, Inc. per common share | ||
Net income attributable to MercadoLibre, Inc. Shareholders per common share, Basic | $ 1.10 | $ 0.68 |
Net income attributable to MercadoLibre, Inc. Shareholders per common share, Diluted | $ 1.10 | $ 0.68 |
Numerator: | ||
Net income attributable to MercadoLibre, Inc. Shareholders, Basic | $ 48,518 | $ 30,247 |
Net income attributable to MercadoLibre, Inc. Shareholders, Diluted | $ 48,518 | $ 30,247 |
Denominator: | ||
Weighted average of common stock outstanding for Basic earnings per share | 44,157,364 | 44,156,961 |
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 44,157,364 | 44,156,961 |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Combinations [Abstract] | ||
Aggregate amortization expense for intangible assets | $ 1,341 | $ 814 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets (Composition of Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 95,849 | $ 91,797 | $ 86,545 |
Total intangible assets | 38,200 | 38,588 | |
Accumulated amortization | (11,973) | (12,311) | |
Total intangible assets, net | 26,227 | 26,277 | |
Licenses And Others [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 7,334 | 8,738 | |
Non-Compete Agreement [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 1,800 | 1,787 | |
Customer List [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 14,845 | 14,580 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 1,051 | 993 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives | $ 13,170 | $ 12,490 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets (Table Showing Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Balance, beginning of the period | $ 91,797 | $ 86,545 |
Business acquisition | 6,874 | |
Effect of exchange rates changes | 4,052 | (1,622) |
Balance, end of the period | 95,849 | 91,797 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 27,660 | 18,526 |
Business acquisition | 5,635 | |
Effect of exchange rates changes | 749 | 3,499 |
Balance, end of the period | 28,409 | 27,660 |
Argentina [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 6,587 | 7,430 |
Business acquisition | 700 | |
Effect of exchange rates changes | 311 | (1,543) |
Balance, end of the period | 6,898 | 6,587 |
Chile [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 17,388 | 16,438 |
Effect of exchange rates changes | 137 | 950 |
Balance, end of the period | 17,525 | 17,388 |
Mexico [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 29,342 | 33,834 |
Business acquisition | 190 | |
Effect of exchange rates changes | 2,485 | (4,682) |
Balance, end of the period | 31,827 | 29,342 |
Venezuela [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 5,989 | 5,729 |
Business acquisition | 260 | |
Effect of exchange rates changes | ||
Balance, end of the period | 5,989 | 5,989 |
Colombia [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 3,643 | 3,437 |
Business acquisition | 57 | |
Effect of exchange rates changes | 148 | 149 |
Balance, end of the period | 3,791 | 3,643 |
Other Countries [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the period | 1,188 | 1,151 |
Business acquisition | 32 | |
Effect of exchange rates changes | 222 | 5 |
Balance, end of the period | $ 1,410 | $ 1,188 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets (Expected Intangible Asset Amortization Expense) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill and Intangible Assets [Abstract] | |
For year ended 12/31/2017 | $ 2,982 |
For year ended 12/31/2018 | 3,263 |
For year ended 12/31/2019 | 2,474 |
For year ended 12/31/2020 | 1,315 |
Thereafter | 3,023 |
Total remaining amortization of intangible assets | $ 13,057 |
Segment Reporting (Financial Pe
Segment Reporting (Financial Performance of Company's Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 273,926 | $ 157,630 |
Direct costs | (165,234) | (98,817) |
Direct contribution | 108,692 | 58,813 |
Operating expenses and indirect costs of net revenues | (45,378) | (28,324) |
Income from operations | 63,314 | 30,489 |
Other income (expenses): | ||
Interest income and other financial gains | 12,157 | 7,251 |
Interest expense and other financial losses | (6,471) | (5,684) |
Foreign currency gains | 663 | 5,147 |
Net income before income tax expense | 69,663 | 37,203 |
Brazil [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 159,781 | 77,535 |
Direct costs | (87,037) | (50,287) |
Direct contribution | 72,744 | 27,248 |
Argentina [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 71,392 | 48,201 |
Direct costs | (45,066) | (27,757) |
Direct contribution | 26,326 | 20,444 |
Mexico [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 15,536 | 11,116 |
Direct costs | (16,841) | (9,438) |
Direct contribution | (1,305) | 1,678 |
Venezuela [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 14,397 | 12,105 |
Direct costs | (6,551) | (5,134) |
Direct contribution | 7,846 | 6,971 |
Other Countries [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 12,820 | 8,673 |
Direct costs | (9,739) | (6,201) |
Direct contribution | $ 3,081 | $ 2,472 |
Segment Reporting (Allocation o
Segment Reporting (Allocation of Long-Lived Tangible Assets Based on Geography) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 131,968 | $ 124,261 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 9,764 | 9,771 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 27,237 | 25,071 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 60,536 | 55,706 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 2,873 | 2,307 |
Venezuela [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 21,813 | 21,615 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 9,745 | 9,791 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 122,204 | $ 114,490 |
Segment Reporting (Allocation38
Segment Reporting (Allocation of Goodwill and Intangible Assets Based on Geography) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 122,076 | $ 118,074 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 205 | 250 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 7,864 | 7,717 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 31,761 | 31,170 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 41,871 | 38,860 |
Venezuela [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 7,332 | 7,366 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 33,043 | 32,711 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 121,871 | $ 117,824 |
Segment Reporting (Consolidated
Segment Reporting (Consolidated Net Revenues by Similar Products and Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues | $ 273,926 | $ 157,630 | |
Marketplace [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues | 158,466 | 94,098 | |
Non-marketplace [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues | [1] | $ 115,460 | $ 63,532 |
[1] | Includes, among other things, Ad Sales, Real Estate, Motors, Financing Fees, Off-platform Payment Fees, Shipping and other ancillary services. |
Fair Value Measurement of Ass40
Fair Value Measurement of Assets and Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gain (loss) recognized in earnings, contingent consideration | $ (73) | |
Other comprehensive (loss) income, gain from contingent considerations | 85 | |
Additional contingent consideration | 1,215 | |
Non-financial assets | 0 | $ 0 |
Non-financial liabilities | 0 | 0 |
Auction Rate Securities [Member] | Direct Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Collateralized Debt Obligations [Member] | Direct Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Structured Investment Vehicles [Member] | Direct Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 0 | $ 0 |
Fair Value Measurement of Ass41
Fair Value Measurement of Assets and Liabilities (Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | $ 439,044 | $ 404,908 |
Contingent considerations | 3,156 | 4,213 |
Long-term retention plan | 34,368 | 27,135 |
Total Financial Liabilities | 37,524 | 31,348 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 33,376 | 35,374 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | 305,819 | 223,887 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | 133,225 | 181,021 |
Long-term retention plan | 34,368 | 27,135 |
Total Financial Liabilities | 34,368 | 27,135 |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 33,376 | 35,374 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent considerations | 3,156 | 4,213 |
Total Financial Liabilities | 3,156 | 4,213 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 140,641 | 111,198 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 140,641 | 111,198 |
Sovereign Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,030 | 50,703 |
Sovereign Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,030 | 50,703 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 7,289 | |
Investments | 210,708 | 207,633 |
Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 118,148 | 61,986 |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 7,289 | |
Investments | $ 92,560 | $ 145,647 |
Fair Value Measurement of Ass42
Fair Value Measurement of Assets and Liabilities (Fair Value of Financial Assets and Liabilities Measured at Amortized Cost) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 546,206 | $ 511,936 | |
Liabilities | 927,048 | 873,174 | |
Accounts Payable And Accrued Expenses [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 108,507 | 105,106 | |
Funds Payable to Customers [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 396,487 | 370,693 | |
Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 51,472 | 37,936 | |
Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 30,668 | 27,338 | |
Dividends Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 6,624 | 6,624 | |
Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 320,964 | 313,523 |
Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 12,326 | 11,954 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 546,206 | 511,936 | |
Liabilities | 927,048 | 873,174 | |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable And Accrued Expenses [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 108,507 | 105,106 | |
Significant Other Observable Inputs (Level 2) [Member] | Funds Payable to Customers [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 396,487 | 370,693 | |
Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 51,472 | 37,936 | |
Significant Other Observable Inputs (Level 2) [Member] | Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 30,668 | 27,338 | |
Significant Other Observable Inputs (Level 2) [Member] | Dividends Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 6,624 | 6,624 | |
Significant Other Observable Inputs (Level 2) [Member] | Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 320,964 | 313,523 |
Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 12,326 | 11,954 | |
Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 144,082 | 113,414 | |
Time Deposits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 144,082 | 113,414 | |
Accounts Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 24,097 | 25,435 | |
Accounts Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 24,097 | 25,435 | |
Credit Cards and Other Means of Payments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 300,612 | 307,904 | |
Credit Cards and Other Means of Payments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 300,612 | 307,904 | |
Loans Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 11,380 | 6,283 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 11,380 | 6,283 | |
Other Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 66,035 | 58,900 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 66,035 | $ 58,900 | |
[1] | The fair value of the convertible senior notes (including the equity component) is disclosed in Note 9. |
Fair Value Measurement of Ass43
Fair Value Measurement of Assets and Liabilities (Fair Value of Money Market Funds, Short and Long-Term Investments Classified as Available for Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 439,550 | $ 405,784 | |
Gross Unrealized Gains | [1] | 230 | 156 |
Gross Unrealized Losses | [1] | (736) | (1,032) |
Estimated Fair Value | 439,044 | 404,908 | |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 147,932 | 111,198 | |
Gross Unrealized Gains | [1] | 1 | |
Gross Unrealized Losses | [1] | (3) | |
Estimated Fair Value | 147,930 | 111,198 | |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 140,641 | 111,198 | |
Estimated Fair Value | 140,641 | 111,198 | |
Cash and Cash Equivalents [Member] | Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 7,291 | ||
Gross Unrealized Gains | [1] | 1 | |
Gross Unrealized Losses | [1] | (3) | |
Estimated Fair Value | 7,289 | ||
Short-term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 121,158 | 140,011 | |
Gross Unrealized Gains | [1] | 72 | 66 |
Gross Unrealized Losses | [1] | (147) | (170) |
Estimated Fair Value | 121,083 | 139,907 | |
Short-term Investments [Member] | Sovereign Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 1,096 | 2,166 | |
Gross Unrealized Losses | [1] | (3) | |
Estimated Fair Value | 1,093 | 2,166 | |
Short-term Investments [Member] | Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 89,723 | 102,509 | |
Gross Unrealized Gains | [1] | 36 | 26 |
Gross Unrealized Losses | [1] | (139) | (168) |
Estimated Fair Value | 89,620 | 102,367 | |
Short-term Investments [Member] | Certificates of Deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 30,339 | 35,336 | |
Gross Unrealized Gains | [1] | 36 | 40 |
Gross Unrealized Losses | [1] | (5) | (2) |
Estimated Fair Value | 30,370 | 35,374 | |
Long-term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 170,460 | 154,575 | |
Gross Unrealized Gains | [1] | 157 | 90 |
Gross Unrealized Losses | [1] | (586) | (862) |
Estimated Fair Value | 170,031 | 153,803 | |
Long-term Investments [Member] | Sovereign Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 46,236 | 48,943 | |
Gross Unrealized Losses | [1] | (299) | (406) |
Estimated Fair Value | 45,937 | 48,537 | |
Long-term Investments [Member] | Corporate Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 121,217 | 105,632 | |
Gross Unrealized Gains | [1] | 156 | 90 |
Gross Unrealized Losses | [1] | (285) | (456) |
Estimated Fair Value | 121,088 | $ 105,266 | |
Long-term Investments [Member] | Certificates of Deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 3,007 | ||
Gross Unrealized Gains | [1] | 1 | |
Gross Unrealized Losses | [1] | (2) | |
Estimated Fair Value | $ 3,006 | ||
[1] | Unrealized gains (losses) from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. Management does not believe any remaining significant unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of March 31, 2017 and December 31, 2016. |
Fair Value Measurement of Ass44
Fair Value Measurement of Assets and Liabilities (Estimated Fair Values of Money Market Funds, Short-Term and Long-Term Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Measurement of Assets and Liabilities [Abstract] | ||
One year or less | $ 269,013 | |
One year to two years | 75,912 | |
Two years to three years | 72,968 | |
Three years to four years | 14,130 | |
Four years to five years | 7,021 | |
Total | $ 439,044 | $ 404,908 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)item | |
Loss Contingencies [Line Items] | |
Reserves for proceeding-related contingencies | $ | $ 6,044 |
Aggregate amount for legal actions for which no loss amount has been accrued | $ | 4,875 |
Loss accrued for reasonably possible legal actions | $ | $ 0 |
Argentinean Subsidiaries [Member] | |
Loss Contingencies [Line Items] | |
Number of lawsuits pending | 53 |
Number of legal actions pending | 1,785 |
Mexican Subsidiaries [Member] | |
Loss Contingencies [Line Items] | |
Number of lawsuits pending | 9 |
Number of legal actions pending | 109 |
Brazilian Subsidiaries [Member] | |
Loss Contingencies [Line Items] | |
Number of lawsuits pending | 678 |
Number of legal actions pending | 3,357 |
Long Term Retention Plan (Narra
Long Term Retention Plan (Narrative) (Details) - LTRP 2017 [Member] | 3 Months Ended |
Mar. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of fixed awards for fixed payments | 16.66% |
Percent of variable awards for variable payments | 16.66% |
Term of fixed payments for eligible employees | 6 years |
Stock price per share, average closing price | $ 164.17 |
Long term retention plan, number of trading days | 60 days |
Long Term Retention Plan (Long
Long Term Retention Plan (Long Term Retention Plans Accrued Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | $ 9,175 | $ 2,132 |
LTRP 2009 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 42 | 33 |
LTRP 2010 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 327 | 62 |
LTRP 2011 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 489 | 96 |
LTRP 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 648 | 130 |
LTRP 2013 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 1,296 | 413 |
LTRP 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 1,264 | 505 |
LTRP 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 1,586 | $ 893 |
LTRP 2016 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 2,240 | |
LTRP 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | $ 1,283 |
2.25% Convertible Senior Note48
2.25% Convertible Senior Notes Due 2019 (Narrative) (Details) - 2.25% Convertible Senior Notes Due 2019 [Member] | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017USD ($)item$ / shares$ / item | Jun. 30, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | ||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 330,000,000 | $ 330,000,000 | $ 330,000,000 | |
Debt instrument, interest rate | 2.25% | 2.25% | ||
Debt instrument, maturity date | Jul. 1, 2019 | |||
Converted instrument rate, number of shares per principal amount | shares | 7.9353 | |||
Converted instrument, principal amount used per conversion | $ 1,000 | |||
Convertible senior notes, conversion price | $ / shares | $ 126.02 | |||
Convertible notes, amount converted | [1] | $ 45,808,000 | 45,808,000 | |
Estimated fair value | $ 577,600,000 | 458,800,000 | ||
Closing trading amount price per share | $ / item | 100 | |||
Common stock, closing price per share | $ / shares | $ 211.5 | |||
Debt instrument convertible, if-converted value in excess of principal | $ 223,800,000 | |||
30 Day Measurement Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible trading days | item | 20 | |||
Debt instrument, convertible consecutive trading days | 30 days | |||
Percentage of debt conversion price | 130.00% | |||
5 Day Measurement Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible trading days | item | 5 | |||
Debt instrument, convertible consecutive trading days | 5 days | |||
Percentage of debt conversion price | 98.00% | |||
September 31, 2016 Threshold Met [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible notes, amount converted | $ 12,000 | |||
[1] | Net of $1,177 thousands of transaction costs related to the equity component of the Notes. |
2.25% Convertible Senior Note49
2.25% Convertible Senior Notes Due 2019 (Carrying Amounts of Liability and Equity Components) (Details) - 2.25% Convertible Senior Notes Due 2019 [Member] - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Amount of the equity component | [1] | $ 45,808,000 | $ 45,808,000 | |
2.25% convertible senior notes due 2019 | 330,000,000 | 330,000,000 | $ 330,000,000 | |
Unamortized debt discount | [2] | (22,723,000) | (25,097,000) | |
Unamortized transaction costs related to the debt component | (3,605,000) | (3,968,000) | ||
Contractual coupon interest accrual | 1,856,000 | 7,425,000 | ||
Contractual coupon interest payment | (7,425,000) | |||
Net carrying amount | $ 305,528,000 | $ 300,935,000 | ||
[1] | Net of $1,177 thousands of transaction costs related to the equity component of the Notes. | |||
[2] | As of March 31, 2017, the remaining period over which the unamortized debt discount will be amortized is 2.25 years. |
2.25% Convertible Senior Note50
2.25% Convertible Senior Notes Due 2019 (Carrying Amounts of Liability and Equity Components - Additional Information) (Details) - 2.25% Convertible Senior Notes Due 2019 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.25% | 2.25% | |
Transaction costs related to the equity component | $ 1,177 | $ 1,177 | |
Remaining period over which the unamortized debt discount will be amortized | 2 years 3 months |
2.25% Convertible Senior Note51
2.25% Convertible Senior Notes Due 2019 (Summary of Interest Expense for Contractual Interest and Accretion of Debt Discount) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
2.25% Convertible Senior Notes Due 2019 [Abstract] | ||
Contractual coupon interest expense | $ 1,856 | $ 1,856 |
Amortization of debt discount | 2,374 | 2,248 |
Amortization of debt issuance costs | 363 | 327 |
Total interest expense related to Notes | $ 4,593 | $ 4,431 |
Cash Dividend Distribution (Det
Cash Dividend Distribution (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2017 | May 02, 2017 | Mar. 02, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | |
Dividends Payable [Line Items] | |||||||
Dividends payable, date declared | May 2, 2017 | ||||||
Cash dividends declared | $ 6,624 | $ 6,624 | $ 6,624 | $ 6,624 | $ 6,624 | ||
Cash dividends declared, per share | $ 0.150 | $ 0.15 | $ 0.150 | $ 0.150 | $ 0.150 | $ 0.150 | |
Annual cash dividends declared, per share | $ 0.60 | ||||||
Dividend payable date | Jul. 14, 2017 | ||||||
Dividends payment, date of record | Jun. 30, 2017 | ||||||
First Quarter Previous Year [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend payable date | Apr. 15, 2016 | ||||||
Dividends payment, date of record | Mar. 31, 2017 | ||||||
Second Quarter Previous Year [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend payable date | Jul. 15, 2017 | ||||||
Dividends payment, date of record | Jun. 30, 2016 | ||||||
Third Quarter Previous Year [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend payable date | Oct. 14, 2016 | ||||||
Dividends payment, date of record | Sep. 30, 2016 | ||||||
Fourth Quarter Prior Years [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend payable date | Jan. 16, 2017 | ||||||
Dividends payment, date of record | Dec. 31, 2016 | ||||||
First Quarter [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividends payable, date declared | Mar. 2, 2017 | ||||||
Dividend payable date | Apr. 17, 2017 | ||||||
Dividends payment, date of record | Mar. 31, 2017 |