Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-33647 | ||
Entity Registrant Name | MercadoLibre, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0212790 | ||
Entity Address, Address Line One | Pasaje Posta 4789 | ||
Entity Address, Address Line Two | 6th Floor | ||
Entity Address, City or Town | Buenos Aires | ||
Entity Address, Country | AR | ||
Entity Address, Postal Zip Code | C1430EKG | ||
City Area Code | 5411 | ||
Local Phone Number | 4640-8000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 49,869,727 | ||
Entity Public Float | $ 44,862,706,175 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated By Reference | Documents Incorporated By Reference Portions of the Company’s Definitive Proxy Statement relating to its 2021 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission by no later than April 30, 2021, are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K as indicated herein. | ||
Entity Central Index Key | 0001099590 | ||
Amendment Flag | false | ||
Common Stock [Member] | |||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | MELI | ||
Security Exchange Name | NASDAQ | ||
2.375% Sustainability Notes due 2026 [Member] | |||
Title of 12(b) Security | 2.375% Sustainability Notes due 2026 | ||
Trading Symbol | MELI26 | ||
Security Exchange Name | NASDAQ | ||
3.125% Notes due 2031 [Member] | |||
Title of 12(b) Security | 3.125% Notes due 2031 | ||
Trading Symbol | MELI31 | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,856,394 | $ 1,384,740 |
Restricted cash and cash equivalents | 651,830 | 66,684 |
Short-term investments (636,949 and 522,798 held in guarantee - see Note 4) | 1,241,306 | 1,597,241 |
Accounts receivable, net | 49,691 | 35,446 |
Credit cards receivable and other means of payments, net | 863,073 | 379,969 |
Loans receivable, net | 385,036 | 182,105 |
Prepaid expenses | 28,378 | 45,309 |
Inventories | 118,140 | 8,626 |
Other assets | 152,959 | 88,736 |
Total current assets | 5,346,807 | 3,788,856 |
Non-current assets: | ||
Long-term investments | 166,111 | 263,983 |
Loans receivable, net | 16,619 | 6,439 |
Property and equipment, net | 391,684 | 244,257 |
Operating lease right-of-use assets | 303,214 | 200,449 |
Goodwill | 85,211 | 87,609 |
Intangible assets, net | 14,155 | 14,275 |
Deferred tax assets | 134,916 | 117,582 |
Other assets | 67,615 | 58,241 |
Total non-current assets | 1,179,525 | 992,835 |
Total assets | 6,526,332 | 4,781,691 |
Current liabilities: | ||
Accounts payable and accrued expenses | 767,336 | 372,309 |
Funds payable to customers and amounts due to merchants | 1,733,095 | 894,057 |
Salaries and social security payable | 207,358 | 101,841 |
Taxes payable | 215,918 | 60,247 |
Loans payable and other financial liabilities | 548,393 | 186,138 |
Operating lease liabilities | 55,246 | 23,259 |
Other liabilities | 108,534 | 114,469 |
Total current liabilities | 3,635,880 | 1,752,320 |
Non-current liabilities: | ||
Salaries and social security payable | 49,852 | 26,803 |
Loans payable and other financial liabilities | 860,876 | 631,353 |
Operating lease liabilities | 243,601 | 176,673 |
Deferred tax liabilities | 64,354 | 99,952 |
Other liabilities | 20,191 | 12,627 |
Total non-current liabilities | 1,238,874 | 947,408 |
Total liabilities | 4,874,754 | 2,699,728 |
Commitments and contingencies (Note 14) | ||
Redeemable convertible preferred stock, $0.001 par value, 40,000,000 shares authorized, 100,000 shares issued and outstanding at December 31, 2019 | 98,843 | |
Equity | ||
Common stock, $0.001 par value, 110,000,000 shares authorized, 49,869,727 and 49,709,955 shares issued and outstanding at December 31, 2020 and December 31, 2019 | 50 | 50 |
Additional paid-in capital | 1,860,502 | 2,067,869 |
Treasury stock | (54,805) | (720) |
Retained earnings | 314,115 | 322,592 |
Accumulated other comprehensive loss | (468,284) | (406,671) |
Total Equity | 1,651,578 | 1,983,120 |
Total Liabilities, Redeemable convertible preferred stock and Equity | $ 6,526,332 | $ 4,781,691 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Short-term investments, held in guarantee | $ 636,949 | $ 522,798 |
Redeemable convertible preferred stock, Par Value | $ 0.001 | |
Redeemable convertible preferred stock, Shares Authorized | 40,000,000 | |
Redeemable convertible preferred stock, Shares Issued | 100,000 | |
Redeemable convertible preferred stock, Shares Outstanding | 100,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 49,869,727 | 49,709,955 |
Common stock, shares outstanding | 49,869,727 | 49,709,955 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements Of Income [Abstract] | |||
Net revenues | $ 3,973,465 | $ 2,296,314 | $ 1,439,653 |
Cost of net revenues | (2,264,255) | (1,194,191) | (742,645) |
Gross profit | 1,709,210 | 1,102,123 | 697,008 |
Operating expenses: | |||
Product and technology development | (352,474) | (223,807) | (146,273) |
Sales and marketing | (902,554) | (834,022) | (482,447) |
General and administrative | (326,490) | (197,455) | (137,770) |
Total operating expenses | (1,581,518) | (1,255,284) | (766,490) |
Income (loss) from operations | 127,692 | (153,161) | (69,482) |
Other income (expenses): | |||
Interest income and other financial gains | 102,767 | 113,523 | 42,039 |
Interest expense and other financial losses | (106,690) | (65,876) | (56,249) |
Foreign currency (losses) gains | (42,454) | (1,732) | 18,240 |
Net income (loss) before income tax (expense) gain | 81,315 | (107,246) | (65,452) |
Income tax (expense) gain | (82,022) | (64,753) | 28,867 |
Net loss | $ (707) | $ (171,999) | $ (36,585) |
Basic EPS: Basic net loss | |||
Available to shareholders per common share | $ (0.08) | $ (3.71) | $ (0.82) |
Weighted average of outstanding common shares | 49,740,407 | 48,692,906 | 44,529,614 |
Diluted EPS: Diluted net loss | |||
Available to shareholders per common share | $ (0.08) | $ (3.71) | $ (0.82) |
Weighted average of outstanding common shares | 49,740,407 | 48,692,906 | 44,529,614 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net loss | $ (707) | $ (171,999) | $ (36,585) |
Other comprehensive loss, net of income tax: | |||
Currency translation adjustment | (58,470) | (13,793) | (110,659) |
Unrealized gains (losses) on hedging activities | 2,784 | (164) | 1,533 |
Unrealized net gains on available for sale investments | 1,592 | 2,729 | |
Less: Reclassification adjustment for gains from accumulated other comprehensive income | 5,927 | 2,729 | 2,329 |
Net change in accumulated other comprehensive loss, net of income tax | (61,613) | (15,094) | (108,726) |
Total Comprehensive loss | $ (62,320) | $ (187,093) | $ (145,311) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock [Member] | Retained Earnings [Member]Changes In Accounting Standards [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Loss [Member] | Changes In Accounting Standards [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
Changes in accounting Standards | $ 44 | $ 70,661 | $ 2,092 | $ 537,925 | $ (282,851) | $ 2,092 | $ 325,779 | ||||||||||
Beginning Balance at Dec. 31, 2017 | $ 44 | 70,661 | 2,092 | 537,925 | (282,851) | 2,092 | 325,779 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2017 | 44,157 | ||||||||||||||||
Common Stock issued | $ 1 | 342,999 | 343,000 | ||||||||||||||
Common Stock issued (in shares) | 1,045 | ||||||||||||||||
Exercise of convertible notes | (8) | (8) | |||||||||||||||
Exercise of convertible notes (in shares) | 1 | ||||||||||||||||
Repurchase of 2019 Notes Conversion Option | (433,289) | (433,289) | |||||||||||||||
Convertible notes - 2028 Notes Equity Component | 257,277 | 257,277 | |||||||||||||||
Unwind Capped Call | 136,108 | 136,108 | |||||||||||||||
Capped Call | (148,948) | (148,948) | |||||||||||||||
Changes in accounting Standards | $ 45 | 224,800 | $ 2,092 | 503,432 | (391,577) | $ 2,092 | 336,700 | ||||||||||
Net loss | (36,585) | (36,585) | |||||||||||||||
Other comprehensive loss | (108,726) | (108,726) | |||||||||||||||
Ending Balance at Dec. 31, 2018 | $ 45 | 224,800 | 503,432 | (391,577) | 336,700 | ||||||||||||
Ending Balance (in shares) at Dec. 31, 2018 | 45,203 | ||||||||||||||||
Changes in accounting Standards | $ 45 | 224,800 | 503,432 | (391,577) | 336,700 | ||||||||||||
Common Stock issued | $ 4 | 1,867,211 | 1,867,215 | ||||||||||||||
Common Stock issued (in shares) | 4,116 | ||||||||||||||||
Exercise of convertible notes | $ 1 | 65,956 | 65,957 | ||||||||||||||
Exercise of convertible notes (in shares) | 523 | ||||||||||||||||
Exercise of capped call option - shares retirement | 30 | 30 | |||||||||||||||
Exercise of capped call option - shares retirement, (in shares) | (132) | ||||||||||||||||
Unwind Capped Call | 3 | 3 | |||||||||||||||
Stock-based compensation - restricted shares issued | 395 | 395 | |||||||||||||||
Stock-based compensation - restricted shares issued (in shares) | 1 | ||||||||||||||||
Common Stock repurchased | $ (720) | (720) | |||||||||||||||
Common Stock repurchased (in shares) | (1) | ||||||||||||||||
Capped Call | (96,367) | (96,367) | |||||||||||||||
Changes in accounting Standards | $ 50 | $ 50 | $ 2,067,869 | 2,067,869 | $ (720) | (720) | $ (4,570) | $ 318,022 | 322,592 | $ (406,671) | (406,671) | $ (4,570) | $ 1,978,550 | 336,700 | |||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (3,000) | (3,000) | |||||||||||||||
Net loss | (171,999) | (171,999) | |||||||||||||||
Other comprehensive loss | (15,094) | (15,094) | |||||||||||||||
Ending Balance at Dec. 31, 2019 | $ 50 | $ 50 | 2,067,869 | 2,067,869 | (720) | (720) | (4,570) | 318,022 | 322,592 | (406,671) | (406,671) | (4,570) | 1,978,550 | 1,983,120 | |||
Ending Balance (in shares) at Dec. 31, 2019 | 49,710 | 49,710 | |||||||||||||||
Changes in accounting Standards | $ 50 | $ 50 | 2,067,869 | 2,067,869 | (720) | (720) | (4,570) | 318,022 | 322,592 | (406,671) | (406,671) | (4,570) | 1,978,550 | 1,983,120 | |||
Amortization of Preferred Stock discount | 5,841 | (5,841) | |||||||||||||||
Common Stock issued | 98,688 | 98,688 | |||||||||||||||
Common Stock issued (in shares) | 208 | ||||||||||||||||
Exercise of convertible notes | 4 | 4 | |||||||||||||||
Stock-based compensation - restricted shares issued | 730 | 730 | |||||||||||||||
Stock-based compensation - restricted shares issued (in shares) | 1 | ||||||||||||||||
Common Stock repurchased | (54,085) | (54,085) | |||||||||||||||
Common Stock repurchased (in shares) | (49) | ||||||||||||||||
Capped Call | (306,789) | (306,789) | |||||||||||||||
Changes in accounting Standards | $ 50 | $ 50 | $ 2,067,869 | 1,860,502 | $ (720) | (54,805) | $ (4,570) | $ 318,022 | 314,115 | $ (406,671) | (468,284) | $ (4,570) | $ 1,978,550 | 1,983,120 | |||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (3,200) | (3,200) | |||||||||||||||
Net loss | (707) | (707) | |||||||||||||||
Other comprehensive loss | (61,613) | (61,613) | |||||||||||||||
Ending Balance at Dec. 31, 2020 | $ 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | |||||||||||
Ending Balance (in shares) at Dec. 31, 2020 | 49,870 | ||||||||||||||||
Changes in accounting Standards | $ 50 | $ 1,860,502 | $ (54,805) | $ 314,115 | $ (468,284) | $ 1,651,578 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Statements Of Equity [Abstract] | ||
Redeemable convertible preferred stock dividend distribution, price per share | $ 9.99 | $ 9.99 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Cash flows from operations: | |||||
Net loss | $ (707) | $ (171,999) | $ (36,585) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Unrealized devaluation loss, net | 89,329 | 44,326 | 11,131 | ||
Depreciation and amortization | 104,992 | 73,320 | 45,792 | ||
Accrued interest | (45,593) | (54,309) | (17,811) | ||
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 147,977 | 86,995 | 11,408 | ||
Financial results on derivative instruments | (1,935) | (301) | |||
Stock-based compensation expense - restricted shares | 730 | 395 | |||
Sale of fixed assets and intangible assets | 3,814 | ||||
LTRP accrued compensation | 129,575 | 51,662 | 27,525 | ||
Deferred income taxes | (70,315) | 16,453 | (92,585) | ||
Changes in assets and liabilities: | |||||
Accounts receivable | 12,069 | (507) | (27,105) | ||
Credit cards receivable and other means of payments | (521,979) | (29,315) | 42,655 | ||
Prepaid expenses | 16,204 | (17,956) | (23,342) | ||
Inventories | (106,981) | (4,148) | (3,015) | ||
Other assets | (113,819) | (49,390) | (17,617) | ||
Payables and accrued expenses | 584,281 | 143,495 | 90,123 | ||
Funds payable to customers and amounts due to merchants | 937,639 | 267,293 | 175,398 | ||
Other liabilities | (34,586) | 45,452 | 28,202 | ||
Interest received from investments | 51,857 | 49,625 | 16,733 | ||
Net cash provided by operating activities | 1,182,552 | 451,091 | 230,907 | ||
Cash flows from investing activities: | |||||
Purchase of investments | (5,199,875) | (4,490,678) | (3,176,078) | ||
Proceeds from sale and maturity of investments | 5,532,463 | 3,353,606 | 2,662,800 | ||
Payment for acquired businesses, net of cash acquired | (6,937) | (4,195) | |||
Receipts from settlements of derivative instruments | 17,779 | ||||
Payment from settlements of derivative instruments | (4,136) | ||||
Receipts from the sale of fixed assets and intangible assets | 274 | ||||
Purchases of intangible assets | (93) | (72) | (192) | ||
Changes in principal loans receivable, net | (344,608) | (173,848) | (57,232) | ||
Advance for property and equipment | (4,426) | ||||
Purchases of property and equipment | (247,048) | (136,798) | (93,136) | ||
Net cash used in investing activities | (252,181) | (1,447,790) | (672,459) | ||
Cash flows from financing activities: | |||||
Funds received from the issuance of convertible notes | 880,000 | ||||
Transaction costs from the issuance of convertible notes | (16,264) | ||||
Payments on convertible note | (25) | (348,123) | |||
Purchase of convertible note capped call | (306,789) | (96,367) | (148,943) | ||
Unwind of convertible note capped calls | 136,108 | ||||
Proceeds from loans payable and other financial liabilities | 2,396,717 | 629,891 | 236,873 | ||
Payments on loans payable and other financing liabilities | (1,785,272) | (472,897) | (123,822) | ||
Dividends paid | (6,624) | ||||
Payment of finance lease obligations | (4,949) | (1,929) | (323) | ||
Common Stock repurchased | (54,085) | (720) | |||
Dividends paid of preferred stock | (3,356) | (2,844) | |||
Proceeds from issuance of convertible redeemable preferred stock, net | 98,688 | ||||
Proceeds from issuance of common stock, net | 1,867,215 | ||||
Net cash provided by financing activities | 242,266 | 2,021,012 | 608,882 | ||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (115,837) | (37,584) | (90,895) | ||
Net increase in cash, cash equivalents, restricted cash and cash equivalents | 1,056,800 | 986,729 | 76,435 | ||
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the year | 1,451,424 | [1] | 464,695 | 388,260 | |
Cash, cash equivalents, restricted cash and cash equivalents, end of the year | 2,508,224 | [1] | 1,451,424 | [1] | 464,695 |
Supplemental cash flow information: | |||||
Cash paid for interest | 53,781 | 40,523 | [2] | 19,511 | |
Cash paid for income tax | 139,855 | 94,954 | [2] | 99,488 | |
Non-cash financing activities: | |||||
Common Stock Issued in exchange of 2019 Notes | [2] | 343,000 | |||
Stock-based compensation-restricted shares issued | 1 | 1 | [2] | ||
Exercise of convertible notes | 65,957 | [2] | 1 | ||
Finance lease obligations | 12,228 | 2,567 | [2] | 7,125 | |
Non-cash investing activities: | |||||
Contingent considerations and escrows from acquired business | 2,399 | [2] | 5,206 | ||
Right-of-use assets obtained under finance leases | 17,177 | 4,496 | [2] | 7,448 | |
Acquisition of business | |||||
Cash and cash equivalents | 939 | [2] | 507 | ||
Accounts receivable | 3,333 | [2] | 1,145 | ||
Other current assets | 1,725 | [2] | 202 | ||
Fixed Assets | 606 | [2] | 90 | ||
Total assets acquired | 6,603 | [2] | 1,944 | ||
Accounts payable and accrued expenses | 1,729 | [2] | 149 | ||
Other liabilities | 6,402 | [2] | 1,341 | ||
Total liabilities assumed | 8,131 | [2] | 1,490 | ||
Net (liabilities assumed) assets acquired | (1,528) | [2] | 454 | ||
Goodwill, Identifiable Intangible Assets and deferred tax liabilities | 6,283 | [2] | 7,022 | ||
Total purchase price | 10,275 | [2] | 9,908 | ||
Cash and cash equivalents acquired | 939 | [2] | 507 | ||
Payment for acquired businesses, net of cash acquired | 9,336 | [2] | 9,401 | ||
Trademarks [Member] | |||||
Acquisition of business | |||||
Intangible assets | 3,050 | [2] | 1,020 | ||
Customer Lists [Member] | |||||
Acquisition of business | |||||
Intangible assets | 1,565 | [2] | 475 | ||
Non-Solicitation And Non-Compete Agreement [Member] | |||||
Acquisition of business | |||||
Intangible assets | $ 905 | [2] | $ 937 | ||
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. | ||||
[2] | Related to the acquisition of a software development company – See Note 7. |
Nature Of Business
Nature Of Business | 12 Months Ended |
Dec. 31, 2020 | |
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 largest online commerce ecosystem in Latin America , serving as an integrated regional platform and as a provider of necessary digital and technology tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech solution, MercadoLibre enables individuals and businesses to send and receive digital payments; through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers; through the advertising products, MercadoLibre facilitates advertising services for large retailers and brands to promote their product and services on the web; through Mercado Shops, MercadoLibre allows users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model; through Mercado Credito, MercadoLibre extends loans to certain merchants and consumers; and through Mercado Fondo, MercadoLibre allows users to invest funds deposited in their Mercado Pago accounts. As of December 31, 2020, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador , Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates its fintech solution in Argentina, Brazil, Mexico, Colombia, Chile, Peru and Uruguay, and extends loans through Mercado Credito in Argentina, Brazil and Mexico. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia, Chile and Uruguay. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of significant accounting policies Principles of consolidation The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”) . These consolidated financial statements are stated in U.S. dollars , except for amounts otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes. Substantially all net revenues, cost of net revenues and operating expenses, are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill located in the foreign jurisdictions totaled $ 490,464 thousands and $ 345,204 thousands as of December 31, 2020 and 2019, respectively. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowance for doubtful accounts and chargeback provisions, allowance for loans receivable, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax 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, fair value of investments, fair value of derivative instruments, income taxes and contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates. 2. Summary of significant accounting policies (continued) Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased, consisting primarily of money market funds and time deposits, to be cash equivalents. The Company’s management assesses balances for credit losses included in cash and cash equivalents and restricted cash and cash equivalents based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company did no t recognize any credit loss on the cash and cash equivalent and restricted cash and cash equivalents in 2020, 2019 and 2018. Money market funds and sovereign debt securities are valued at fair value. See Note 9 “Fair Value Measurement of assets and liabilities” for further details. Investments Time deposits are valued at amortized cost plus accrued interest. Debt securities classified as available-for-sale are recorded at fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss), net of the related tax provisions or benefits. Investments are classified as current or non-current depending on their maturity dates and when it is expected to be converted into cash. The Company’s management assesses balances for credit losses included in short and long-term investments based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company did no t recognize any material credit loss on the short and long-term investments in 2020, 2019 and 2018. Corporate and sovereign debt securities (including Central Bank of Brazil mandatory guarantee) are valued at fair value. See Note 9 “Fair Value Measurement of Assets and Liabilities” for further details. Fair value option applied to certain financial instruments U.S. GAAP provides an option to elect fair value with impact on the statement of income as an alternative measurement for certain financial instruments and other items on the balance sheet. The Company has elected to measure certain financial assets at fair value with impact on the statement of income from January 1, 2019 for several reasons including to avoid the mismatch generated by the recognition of certain linked instruments / transactions, separately, in consolidated statement of income and consolidated statement of other comprehensive income and to better reflect the financial model applied for selected instruments. The Company’s election of the fair value option applies to the: i) Brazilian federal government bonds and ii) U.S. treasury notes. As result of the election of the fair value option, the Company recognized gains in interest income and other financial gains of $ 8,433 thousands and $ 2,295 thousands as of December 31, 2020 and 2019, respectively. Credit cards receivable and other means of payments, net Credit cards receivables and other means of payments mainly relate to the Company’s payments solution and arise due to the time taken to clear transactions through external payment networks either during the time required to collect the installments or during the period of time until those credit cards receivable are sold to financial institutions. Credit cards receivable and other means of payments are presented net of the related provision for chargebacks and doubtful accounts. 2. Summary of significant accounting policies (continued) Credit cards receivable and other means of payments, net (continued) The Company is exposed to losses due to credit card fraud and other payment misuse. Provisions for these items represent the Company’s estimate of actual losses based on its historical experience, as well as economic conditions. Transfer of financial assets The Company may sell credit cards coupon to financial institutions, included within “Credit cards receivable and other means of payments, net”. These transactions are accounted for as a true sale. Accounting guidance on transfer of financial assets establishes that the transferor has surrendered control over transferred assets if and only if all of the following conditions are met: (1) the transferred assets have been isolated from the transferor, (2) each transferee has the right to pledge or exchange the assets it received and (3) the transferor does not maintain effective control over the transferred assets. When all the conditions are met, the Company derecognizes the corresponding financial asset from its balance sheet. Based on historical experience to date the Company assessed that it does not hold a significant credit risk exposure in relation to transfer of financial assets with recourse. The aggregate gain included in net revenues arising from these financing transactions, net of the costs recognized on sale of credit cards coupon, is $ 452,892 thousands, $ 359,037 thousands and $ 258,595 thousands, for the years ended December 31, 2020, 2019 and 2018, respectively. Loans receivable, net Loans receivable represents loans granted to certain merchants and consumers through the Company’s Mercado Credito solution. Loans receivable are reported at their outstanding principal balances plus estimated collectible interest, net of allowances. Loans receivable are presented net of the allowance for uncollectible accounts. The Company places loans on non-accrual status at 90 days past due. Through the Company’s Mercado Credito solution, merchants can borrow a certain percentage of their monthly sales volume and are charged with a fixed interest rate based on the overall credit assessment of the merchant. Merchant and consumers credits are repaid in a period ranging between 3 and 24 months. The Company closely monitors credit quality for all loans receivable on a recurring basis. To assess a merchant and consumers seeking a loan under the Mercado Credito solution, the Company uses, among other indicators, a risk model internally developed, as a credit quality indicator to help predict the merchant's ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant's ability to repay the credit, including external and internal indicators. Internal indicators consider merchant's annual sales volume, claims history, prior repayment history, and other measures. Based on internal scoring, merchants are rated from A (Prime) to H (Upper medium grade). In addition, the Company considers external bureau information to enhance the scoring model and the decision making process. The internal rating and the bureau credit score are combined in a risk matrix, which is also used to price the loans based on the risk profile. Allowances for doubtful accounts on loans receivable, accounts receivable and credit cards receivable and other means of payment Since January 1, 2020 the Company maintains allowances for doubtful accounts for Management’s estimate of current expected credit losses (“CECL”) that may result if customers do not make the required payments. Measurement of current expected credit losses The company estimates its allowance for credit losses as the lifetime expected credit losses of the accounts receivables mentioned above. The CECL represent the present value of the uncollectible portion of the principal, interest, late fees, and other allowable charges. Loans Receivable Loans Receivable in this portfolio include the products that the company offers to: 1) on-line merchant, 2) in-store merchant and 3) consumers. For loans receivable that share similar risk characteristics such as product type, country, unpaid installments, days delinquent, and other relevant factors, the company estimates the lifetime expected credit loss allowance based on a collective assessment. The lifetime expected credit losses is determined by applying probability of default and loss given default models to monthly projected exposures, then discounting these cash flows to present value using the portfolio’s loans interest rate, estimated as a weighted average of the original effective interest rate of all the loans that conform the portfolio segment. 2. Summary of significant accounting policies (continued) Allowances for doubtful accounts on loans receivable, accounts receivable and credit cards receivable and other means of payment (continued) Loans Receivable (continued) The probability of default is an estimation of the likelihood that a loan receivable will default over a given time horizon. Probability of default models are estimated using a transition matrix method; these matrices are constructed using roll rates and then transformed, taking into account the expected future delinquency rate (forward-looking models). Therefore, the models include macroeconomic outlook or projections and recent performance. With this model, the Company estimates marginal monthly default probabilities for each delinquency bucket, type of product and country. Each marginal monthly probability of default represents a different possible scenario of default. The exposure at default is equal to the receivables’ expected outstanding principal, interest and other allowable balances. The Company estimates the exposure at default that the portfolio of loans would have in each possible moment of default, meaning for each possible scenario mentioned above. The loss given default is the percentage of the exposure at default that is not recoverable. The Company estimates this percentage using the transition matrix method mentioned above and the portfolio segment´s interest rate. The measurement of CECL is based on probability-weighted scenarios (probability of default for each month), in view of past events (roll rates), current conditions and adjustments to reflect the reasonable and supportable forecast of future economic conditions which were affected, among other factors, by the COVID-19 pandemic. The Company will continue to monitor the impact of the pandemic on expected credit losses estimates. The Company writes off loans receivable when the customer balance becomes 180 days past due. Accounts Receivable To measure the CECL, accounts receivable have been grouped based on shared credit risk characteristics and the number of days past due. The Company has therefore concluded that the expected loss rates for accounts receivable is a reasonable approximation of the historical loss rates for those assets. Accounts receivable are recovered over a period of 0-180 days, therefore, forecasted changes to economic conditions are not expected to have a significant effect on the estimate of the allowance for doubtful accounts. The Company writes off accounts receivable when the customer balance becomes 180 days past due. Credit cards receivable and other means of payment Management assesses balances for credit losses included in credit cards receivable and other means of payment, based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company has arrangements with some unaffiliated entities under which MercadoLibre users are able to fund their Mercado Pago accounts by depositing an equivalent amount with the unaffiliated entity. In some of these arrangements, MercadoLibre credits the Mercado Pago account before the unaffiliated entity transfers the funds to MercadoLibre to settle the transaction. The amounts pending settlement are recognized in the balance sheet as credit cards receivable and other means of payment. In June 2020, the Company became aware that it had accumulated significant receivables from one such unaffiliated entity in Argentina. The aging of these receivables exceeded the expected aging for transactions of this kind, hence, the Company recorded $ 27,006 thousands loss on doubtful accounts. Concentration of credit risk Cash and cash equivalents, restricted cash and cash equivalents, short-term and long-term investments, credit cards receivable, accounts receivable and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash and cash equivalents and investments are placed with financial institutions and financial instruments that Management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located internationally. Accounts receivable balances are settled through customer credit cards, debit cards and Mercado Pago accounts, with the majority of accounts receivable collected upon processing of credit card transactions. Due to the relatively small dollar amount of individual accounts receivable and loans receivable, the Company generally does not require collateral on these balances. The allowance for doubtful accounts is recorded as a charge to sales and marketing expense. 2. Summary of significant accounting policies (continued) Concentration of credit risk (continued) During the years ended December 31, 2020, 2019 and 2018, no single customer accounted for more than 5 % of net revenues. As of December 31, 2020 and 2019, no single customer, except for credit card processing companies, accounted for more than 5 % of accounts receivable and loans receivable. Credit cards receivable and other means of payments, net line of the consolidated balance sheet shows the Company´s credit exposure to not more than 10 entities in each of the countries where the Company offers our payments solution. Funds payable to customers and amounts due to merchants Funds payable to customers relate also to the Company’s payments solution and are originated by the amounts due to users held by the Company. Funds, net of any amount due to the Company by the user, are maintained in the user’s current account until withdrawal is requested by the user. See Note 4 “Cash, cash equivalents, restricted cash and cash equivalent and investments” for additional information on regulations of Mercado Pago business. Amounts due to merchants are originated by purchase transactions carried out by the Company´s customers with debit cards issued by Mercado Pago. Provision for buyer protection program The Company provides consumers with a buyer protection program (“BPP”) for all transactions completed through the Company’s online payment solution (“Mercado Pago”). The Company is exposed to losses under this program due to this program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. Provisions for BPP represent the Company’s estimate of probable losses based on its historical experience. Inventories Inventories, consisting of products and mobile point of sale (“MPOS”) devices available for sale, are accounted for using the weighted average price method, and are valued at the lower of cost or market value. The Company accounts for an allowance for recoverability of inventories based on management´s analysis of the inventories, aging, consumption patterns, as well as the lower of cost or net realizable value. Third-party sellers whose products are stored at the Company’s fulfillment centers, maintain the ownership of their inventories hence these products are not included in Company’s inventories balances. Property and equipment, net Property and equipment are recorded at their acquisition cost and depreciated over their estimated useful lives using the straight-line method. Repair and maintenance costs are expensed as incurred. Costs related to the planning and post implementation phases of website development are recorded as an operating expense. Direct costs incurred in the development phase of website are capitalized and amortized using the straight-line method over an estimated useful life of three years . During 2020 and 2019, the Company capitalized $ 119,491 thousands and $ 59,602 thousands, respectively. Buildings, excluding lands, are depreciated from the date when they are ready to be used, using the straight-line depreciation method over a 50 -year depreciable life. Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Intangible assets consist of customer lists, trademarks, licenses, software, non-solicitation and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date. Intangible assets with definite useful life are amortized over the period of estimated benefit to be generated by those assets and using the straight-line method; their estimated useful lives ranges from three to ten years . Trademarks with indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. 2. Summary of significant accounting policies (continued) Impairment of long-lived assets The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by the asset. If such asset is considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of such asset. Impairment of goodwill and intangible assets with indefinite useful life Goodwill and intangible assets with indefinite useful life are reviewed at the end of the year for impairment or more frequently, if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level (considering each segment of the Company as a reporting unit) by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of such reporting unit. As of December 31, 2020 and 2019, the Company elected to perform the quantitative impairment test for both goodwill and intangible assets with indefinite useful life. For the year ended December 31, 2020, the fair values of the reporting units were estimated using the income approach. Cash flow projections used were based on financial budgets approved by Management. The Company uses discount rates to each reporting unit in the range of 15.1 % to 21.0 %. The average discount rate used for 2020 was 17.2 %. That rate reflected the Company’s estimated weighted average cost of capital. Key drivers in the analysis include Average Selling Price (“ASP”), Take Rate defined as marketplace revenues as a percentage of Gross Merchadise Volumem (“GMV”), Total Payment Volume Off Platform (“TPV Off”), Off Platform Take Rate defined as off platform revenues as a percentage of TPV Off, Wallet and Point TPV per Payer, Wallet Users over Total Population and Active Point devices. In addition, the analysis includes a business to e-commerce rate, which represents growth of e-commerce as a percentage of Gross Domestic Product, Internet penetration rates as well as trends in the Company’s market share. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired . No impairment loss has been recognized in the years ended December 31, 2020, 2019 and 2018 as Management’s assessment of the fair value of each reporting unit exceeds its carrying value. Intangible assets with indefinite useful life are considered impaired if the carrying amount of the intangible asset exceeds its fair value. No impairment loss has been recognized in the years ended December 31, 2020, 2019 and 2018. Revenue recognition Revenues are recognized when control of the promised services or goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for them. Contracts with customers may include promises to transfer multiple services including discounts on current or future services. Determining whether services are considered distinct performance obligations that should be accounted for separately versus together may require judgment. Revenues are recognized when each performance obligation is satisfied by transferring the promised service to the customer according to the following criteria described for each type of service: a) Commerce transactions: Revenues from intermediation services derived from listing and final value fees paid by sellers. Revenues related to final value fees are recognized at the time that the transaction is successfully concluded. Revenues from shipping services are generated when a buyer elects to receive the item through the Company’s shipping service and the service is rendered to the customer. When the Company acts as an agent, revenues derived from the shipping services are presented net of the transportation costs charged by third-party carriers and when the Company acts as principal, revenues derived from the shipping services are presented in gross basis. As part of the Company’s business strategy, shipping costs may be fully or partially subsidized at the Company’s option. Revenues from inventories sales are generated when control of the good is transferred to the Company’s customers, which occurs upon delivery to the customer. 2. Summary of significant accounting policies (continued) Revenue recognition (continued) Advertising revenues such as the sale of banners are recognized on accrual basis during the average advertising period, and remaining advertising services such as sponsorship of sites and improved search standing are recognized based on “per-click” (which are generated each time users on the Company’s websites click through text-based advertisements to an advertiser’s designated website) values and as the “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of the Company’s websites) are delivered. Classified advertising services, are recorded as revenue ratably during the listing period. Those fees are charged at the time the listing is uploaded onto the Company’s platform and is not subject to successful sale of the items listed. b) Fintech services: Revenues from commissions we charge to sellers for transactions off-platform derived from the use of the Company’s on-line payments solution, are recognized once the transaction is considered completed, when the payment is processed by the Company, net of rebates granted. The Company also earns revenues as a result of offering financing to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets to financial institutions. When the Company finances the transactions directly, it recognizes financing revenue ratably over the period of the financing. When the Company sells the corresponding financial assets to financial institutions, the result of such sale is accounted for as financing revenues net of financing costs at the time of transfer of the financial assets. Revenues from interest earned on loans and advances granted to merchants and consumers are recognized over the period of the loan and are based on effective interest rates. The Company places loans on non-accrual status at 90 days past due. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Receivables are presented net of allowance for doubtful accounts, loans receivables and chargebacks. The allowance for doubtful accounts, loans receivable and chargebacks was $ 126,661 thousands and $ 38,079 thousands as of December 31, 2020 and 2019, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the year in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. Deferred revenue as of December 31, 2019 and 2018 was $ 16,590 thousands and $ 5,918 thousands, respectively, of which substantially all were recognized as revenue during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, total deferred revenue was $ 32,519 thousands, mainly due to loyalty program points that are expected to be accrued as revenue in the coming months and fees related to listing and optional feature services billed. Share-based payments The liability related to the variable portion of the long term retention plans is remeasured at fair value. See Note 15 “Long Term Retention Plan” for more details. Sales tax The Company’s subsidiaries in Brazil, Argentina and Colombia are subject to certain sales taxes which are classified as cost of net revenues and totaled $ 325,316 thousands, $ 189,313 thousands and $ 139,433 thousands for the years ended December 31, 2020, 2019 and 2018, respectively. Advertising costs The Company expenses the costs of advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click basis, or on a straight-line basis over the term of the contract. 2. Summary of significant accounting policies (continued) Comprehensive loss Comprehensive loss is comprised of two components, net loss and other comprehensive loss. This last component is defined as all other changes in the equity of the Company that result from transactions other than with shareholders. Other comprehensive loss includes the cumulative adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries, unrealized gains and losses on investments classified as available-for-sale and on hedging activities. Total comprehensive loss for the years ended December 31, 2020, 2019 and 2018 amounted to $ 62,320 thousands, $ 187,093 thousands and $ 145,311 thousands, respectively. Variable Interest Entities (VIE) A VIE is an entity (i) that has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, (ii) that has equity investors who lack the characteristics of a controlling financial interest or (iii) in which the voting rights of some equity investors are disproportionate to their obligation to absorb losses or their right to receive returns, and substantially all of the entity’s activities are conducted on behalf of the equity investors with disproportionately few voting rights. The Company consolidates VIEs of which it is the primary beneficiary. The Company is considered to be the primary beneficiary of a VIE when it has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. See Note 21 to these consolidated financial statements for additional detail on the VIEs used for securitization purposes. Foreign currency translation All of the Company’s foreign operations have determined the local currency to be their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018 . Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive loss. Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the consolidated financial statements of income under the caption “Foreign currency (losses) gains” and amounted to $( 42,454 ) thousands, $( 1,732 ) thousands and $ 18,240 thousands for the years ended December 31, 2020, 2019 and 2018, respectively. Argentine currency status As of July 1, 2018, t he Company transitioned its Argentinian operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their inmediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls which restrict or may partially restrict, the access of foreign currency, like the US dollar, for making payments abroad, either of foreign debt or imports of goods or services, dividend payments, and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government´s perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce and financial payments is the official exchange rate, which as of December 31, 2020 was 84.15 and as of February 26, 2021 was 89.82 . The Company uses Argentina’s official exchange rate to record the accounts of Argentine subsidiaries. The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of December 31, 2020 and December 31, 2019: December 31, 2020 2019 (In thousands) Assets $ 1,470,885 $ 805,605 Liabilities 1,230,326 580,402 Net Assets $ 240,559 $ 225,203 2. Summary of significant accounting policies (continued) Derivative Financial |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | 3. Net loss per share Basic earnings per share for the Company’s common stock is computed by dividing, net loss available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the year. On June 30, 2014, the Company issued $ 330,000 thousands of 2.25 % Convertible Senior Notes due 2019 and on August 24, 2018 and August 31, 2018 the Company issued an aggregate principal amount of $ 880,000 thousands of 2.00 % Convertible Senior Notes due 2028 (please refer to Note 16 to these consolidated financial statements for discussion regarding these debt notes). Additionaly, on March 29, 2019 the Company issued Preferred stock. See Note 22 to these consolidated financial statements. The conversion of these debt notes and preferred stock are considered 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 loss per share for the years ended on December 31, 2020, 2019 and 2018 does not include any effect from the 2019 Notes Capped Call Transactions or the 2028 Notes Capped Call Transactions (as defined in Note 16) because it would be antidilutive. In the event of conversion of any or all of the 2028 Notes, the shares that would be delivered to the Company under The Capped Call Transactions (as defined in Note 16) are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes. For the years ended December 31, 2020, 2019 and 2018, the effects of the conversion of the Notes and the redeemable convertible preferred stock on diluted earnings per share were antidilutive and, as a consequence, they were not computed for diluted earnings per share. Net loss per share of common stock is as follows for the years ended December 31, 2020, 2019 and 2018: Year Ended December 31, 2020 2019 2018 (In thousands) Basic Diluted Basic Diluted Basic Diluted Net loss per common share $ ( 0.08 ) $ ( 0.08 ) $ ( 3.71 ) $ ( 3.71 ) $ ( 0.82 ) $ ( 0.82 ) Numerator: Net loss $ ( 707 ) $ ( 707 ) $ ( 171,999 ) $ ( 171,999 ) $ ( 36,585 ) $ ( 36,585 ) Amortization of redeemable convertible preferred stock — — ( 5,841 ) ( 5,841 ) — — Dividends on preferred stock ( 3,200 ) ( 3,200 ) ( 3,000 ) ( 3,000 ) — — Net loss corresponding to common stock $ ( 3,907 ) $ ( 3,907 ) $ ( 180,840 ) $ ( 180,840 ) $ ( 36,585 ) $ ( 36,585 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,740,407 — 48,692,906 — 44,529,614 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,740,407 — 48,692,906 — 44,529,614 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments [Abstract] | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments | 4. Cash, cash equivalents, restricted cash and cash equivalents and investments The composition of cash, cash equivalents, restricted cash and cash equivalents and investments is as follows: December 31, 2020 2019 (In thousands) Cash and cash equivalents $ 1,856,394 $ 1,384,740 Restricted cash and cash equivalents Securitization Transactions $ 249,872 $ 37,424 Sovereign Debt Securities (Secured lines of credit guarantee) — 29,260 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 144,249 — Bank account (Argentine Central Bank regulation) 237,511 — Bank collateral account ( Secured lines of credit guarantee) 574 — Money Market Funds (Secured lines of credit guarantee) 19,469 — Cash in bank account 155 — Total restricted cash and cash equivalents $ 651,830 $ 66,684 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 2,508,224 $ 1,451,424 Short-term investments Time Deposits $ 158,818 $ 189,660 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 565,705 506,175 Sovereign Debt Securities (Secured lines of credit guarantee) 71,244 16,623 Sovereign Debt Securities 445,539 884,720 Corporate Debt Securities — 63 Total short-term investments $ 1,241,306 $ 1,597,241 Long-term investments Sovereign Debt Securities $ 150,054 $ 260,320 Corporate Debt Securities — 173 Other Investments 16,057 3,490 Total long-term investments $ 166,111 $ 263,983 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. As of December 31, 2020 and 2019, the Company has no securities considered held-to-maturity. Regulation issued by Central Bank of Argentina (“CBA”) a) In January 2020, the CBA enacted regulations related to payment service providers that applies to Fintech companies that are not financial institutions, but nevertheless provide payment services in at least one of the processes of the payments system. On July 7, 2020, the CBA approved the registration of the Argentine subsidiary in the registry for payment service providers. These regulations sets forth certain rules that require payment services providers to, among other things, (i) deposit and maintain users’ funds in specific banks’ accounts, payable on demand; (ii) implement a monthly reporting regime with the CBA; (iii) segregate information related to users’ investments funds; (iv) maintain different bank accounts to segregate the Company’s funds from users’ funds; and (v) introduce clarifications on advertising and documents about the standard terms and conditions of the payment service provider. As of December 31, 2020, in accordance with the regulation, the Company held $ 237,511 thousands in a bank account, payable on demand. b) In October 2020, the CBA issued a regulation that applies to non-financial loan providers. In accordance with this regulation, the Company must register in the "Registry of other non-financial loan providers" before December 1, 2020 and comply with a periodic information report within the framework of a monthly information regime as from March 1, 2021. In turn, the regulation establishes that the Company must comply with the obligations established by CBA rules, regarding, among other things: (i) interest rates in loan operations; (ii) protection of users of financial services; (iii) methods of communication with users of financial services; and (iv) such users’ access to information concerning their contractual obligations. The rules regarding interest rates became effective as of January 1, 2021, and the rules regarding the protection of users of financial services, methods of communication and access to information became effective as of February 1, 2021. 4. Cash, cash equivalents, restricted cash and cash equivalents and investments (continued) Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) On November 1, 2018, the Company obtained approval from the Central Bank of Brazil to operate as an authorized payment institution. With this authorization, Mercado Pago in Brazil is subject to the supervision of the Central Bank of Brazil and must fully comply with all obligations established by current regulations. Among other obligations, the regulations require authorized payment institutions to hold any electronic balance in a payment institution account in either a specific account of the Central Bank of Brazil that does not pay interest or Brazilian federal government bonds registered with the “Sistema Especial de Liquidacao e Custodia.” 100 % of electronic funds were required to be deposited as of December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020 and December 31, 2019, in accordance with the regulation, the Company held $ 709,954 thousands and $ 506,175 thousands deposited in Brazilian federal government bonds, respectively, as a mandatory guarantee. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 5. Balance sheet components Accounts receivable, net December 31, 2020 2019 (In thousands) Users $ 42,012 $ 27,340 Advertising 11,185 9,452 Others debtors 3,788 4,979 56,985 41,771 Allowance for doubtful accounts ( 7,294 ) ( 6,325 ) Accounts receivable, net $ 49,691 $ 35,446 Credit cards receivable and other means of payments, net December 31, 2020 2019 (In thousands) Credit cards and other means of payments $ 904,624 $ 391,279 Allowance for chargebacks ( 17,688 ) ( 11,310 ) Allowance for doubtful accounts ( 23,863 ) — Credit cards receivable and other means of payments, net $ 863,073 $ 379,969 Other assets December 31, 2020 2019 (In thousands) VAT credits $ 11,555 $ 16,997 Income tax credits 48,876 57,844 Sales tax credits 18,107 442 Advance to ATM providers 37,498 — Advance to suppliers 21,520 — Other 15,403 13,453 Current other assets $ 152,959 $ 88,736 5. Balance sheet components (continued) December 31, 2020 2019 (In thousands) Judicial deposits 57,525 51,364 Other 10,090 6,877 Non current other assets $ 67,615 $ 58,241 Property and equipment, net Estimated useful life December 31, (years) 2020 2019 (In thousands) Equipment 3 - 5 $ 113,669 $ 83,961 Land & Building 50 (1) 96,974 80,832 Furniture and fixtures 3 - 10 134,999 83,810 Software 3 282,066 179,211 Vehicles 4 17,198 4,442 644,906 432,256 Accumulated depreciation ( 253,222 ) ( 187,999 ) Property and equipment, net $ 391,684 $ 244,257 (1) Estimated useful life attributable to “Buildings” . Year Ended December 31, 2020 2019 2018 (In thousands) Depreciation and amortization: Cost of net revenues $ 15,902 $ 8,873 $ 4,332 Product and technology development 53,530 40,920 31,852 Sales and marketing 1,776 2,076 1,643 General and administrative 10,088 7,517 7,965 $ 81,296 $ 59,386 $ 45,792 Accounts payable and accrued expenses December 31, 2020 2019 (In thousands) Accounts payable $ 728,056 $ 331,140 Accrued expenses Advertising 24,135 33,118 Buyer protection program provision 8,364 3,808 Professional fees 5,415 2,485 Other expense provisions 1,366 1,758 Accounts payable and accrued expenses $ 767,336 $ 372,309 5. Balance sheet components (continued) Funds payable to customers and amounts due to merchants December 31, 2020 2019 (In thousands) Funds payable to customers $ 1,695,424 $ 894,057 Amounts due to merchants 37,671 — Funds payable to customers and amounts due to merchants $ 1,733,095 $ 894,057 Other liabilities December 31, 2020 2019 (In thousands) Advanced Collections $ 15,041 $ 81,045 Deferred revenue 32,519 16,590 Provisions and contingencies — 5,123 Contingent considerations and escrows from acquisitions 4,540 792 Customer advances 39,054 9,621 Derivative instruments 13,964 251 Other 3,416 1,047 Current other liabilities $ 108,534 $ 114,469 December 31, 2020 2019 (In thousands) Provisions and contingencies $ 10,929 $ 7,972 Contingent considerations and escrows from acquisitions 3,291 4,470 Other 5,971 185 Non current other liabilities $ 20,191 $ 12,627 Accumulated other comprehensive loss December 31, 2020 2019 2018 (In thousands) Foreign currency translation $ ( 466,569 ) $ ( 408,099 ) $ ( 394,306 ) Unrealized gains on investments — 2,029 3,345 Estimated tax loss on unrealized gains (loss) 754 ( 351 ) ( 616 ) Unrealized losses on hedging activities ( 2,469 ) ( 250 ) — Accumulated other comprehensive loss $ ( 468,284 ) $ ( 406,671 ) $ ( 391,577 ) 5. Balance sheet components (continued) The following table summarizes the changes in accumulated balances of other comprehensive loss for the year December 31, 2020: Unrealized Unrealized Foreign Estimated tax (Loss) Gains on (Losses) Gains on Currency (expense) hedging activities, net Investments Translation benefit Total 2020 Total 2019 (In thousands) Balances as of December 31, 2019 $ ( 250 ) $ 2,029 $ ( 408,099 ) $ ( 351 ) $ ( 406,671 ) $ ( 391,577 ) Other comprehensive (loss) income before reclassifications 4,219 — ( 58,470 ) ( 1,435 ) ( 55,686 ) ( 12,365 ) Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income ( 6,438 ) ( 2,029 ) — 2,540 ( 5,927 ) ( 2,729 ) Net current period other comprehensive (loss) income ( 2,219 ) ( 2,029 ) ( 58,470 ) 1,105 ( 61,613 ) ( 15,094 ) Ending balance $ ( 2,469 ) $ — $ ( 466,569 ) $ 754 $ ( 468,284 ) $ ( 406,671 ) The following table provides details about reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2020: Amount of Gain (Loss) Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Income Comprehensive Affected Line Item Components Income in the Statement of Income (In thousands) Unrealized gains on investments $ 2,029 Interest income and other financial gains Unrealized gains on hedging activities 6,438 Cost of net revenues Estimated tax gain on unrealized losses on investments ( 2,540 ) Income tax expense Total reclassifications for the year $ 5,927 Total, net of income taxes |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Loans Receivable, Net [Abstract] | |
Loans Receivable, Net | 6. Loans receivable, net December 31, 2020 2019 (In thousands) Loans receivable $ 458,946 $ 202,489 Allowance for uncollectible accounts ( 73,910 ) ( 20,384 ) Current loans receivable, net $ 385,036 $ 182,105 0 December 31, 2020 2019 (In thousands) Loans receivable $ 20,525 $ 6,499 Allowance for uncollectible accounts ( 3,906 ) ( 60 ) Non current loans receivable, net $ 16,619 $ 6,439 The Company manages loans receivable as “On-line merchant”, “Consumer” and “In-store merchant”. As of December 31, 2020 and December 31, 2019, Loans receivable, net were as follows: December 31, 2020 2019 (In thousands) On-line merchant $ 180,063 $ 130,102 Consumer 237,956 60,179 In-store merchant 61,452 18,707 Loans receivable 479,471 208,988 Allowance for uncollectible accounts ( 77,816 ) ( 20,444 ) Loans receivable, net $ 401,655 $ 188,544 The credit quality analysis of loans receivable was as follows: December 31, 2020 2019 (In thousands) 1-30 days past due $ 34,706 $ 20,430 31-60 days past due 16,977 6,916 61 -90 days past due 13,239 7,580 91 -120 days past due 10,632 - 121 -150 days past due 5,315 - 151 -180 days past due 3,649 - Total past due 84,518 34,926 To become due 394,953 174,062 Total $ 479,471 $ 208,988 |
Business Combinations, Goodwill
Business Combinations, Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 7. Business combinations, goodwill and intangible assets Business combinations Acquisition of a software development company In March 2020, the Company, through its subsidiary Meli Participaciones S.L., completed the acquisition of 100 % of the equity interest of Kiserty S.A. and its subsidiaries, which is a software development company located and organized under the law of Uruguay. The objective of the acquisition was to enhance the capabilities of the Company in terms of software development. The aggregate purchase price for the acquisition was $ 10,899 thousands, measured at its fair value amount, which included: (i) the total cash payment of $ 8,500 thousands at the time of closing; (ii) an escrow of $ 225 thousands and (iii) a contingent additional cash consideration up to $ 2,174 thousands. The Company’s consolidated statement of income includes the results of operations of the acquired business as from March 9, 2020. The net income before intercompany eliminations of the acquired Company included in the Company’s consolidated statement of income since the acquisition amounted to $ 820 thousands for the period ended December 31, 2020. In addition, the Company incurred in certain direct costs of the business combination which were expensed as incurred. The purchase price was allocated based on the measurement of the fair value of assets acquired and liabilities assumed considering the information available as of the initial accounting date. The valuation of identifiable intangible assets acquired reflects Management’s estimates based on the use of established valuation methods. The Company recognized goodwill for this acquisition based on Management’s expectation that the acquired business will improve the Company’s business. Arising goodwill was allocated to each of the segments identified by the Company’s Management, considering the synergies expected from this acquisition and it is expected that the acquisition will contribute to the earnings generation process of such segments. Goodwill arising from this acquisition is not deductible for tax purposes. The results of operations for periods prior to the acquisitions, individually and in the aggregate, were not material to the Company’s consolidated statements of income and, accordingly, pro forma information has not been presented. Goodwill and intangible assets The composition of goodwill and intangible assets is as follows: December 31, 2020 2019 (In thousands) Goodwill $ 85,211 $ 87,609 Intangible assets with indefinite lives - Trademarks 7,751 8,366 Amortizable intangible assets - Licenses and others 4,932 5,320 - Non-compete agreement 3,426 2,703 - Customer list 14,010 13,900 - Trademarks 7,879 4,723 Total intangible assets $ 37,998 $ 35,012 Accumulated amortization ( 23,843 ) ( 20,737 ) Total intangible assets, net $ 14,155 $ 14,275 7. Business combinations, goodwill and intangible assets (continued) Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: Year ended December 31, 2020 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 Business Acquisitions — 3,603 1,062 1,241 1,246 748 7,900 Disposals ( 3,480 ) — — — — — ( 3,480 ) Effect of exchange rates changes ( 5,830 ) — ( 1,561 ) 883 ( 168 ) ( 142 ) ( 6,818 ) Balance, end of the year $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Year ended December 31, 2019 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 30,069 $ 6,946 $ 31,340 $ 16,014 $ 3,339 $ 1,175 $ 88,883 Purchase price allocations adjustments — 45 — — — — 45 Effect of exchange rates changes ( 997 ) — 856 ( 1,142 ) ( 27 ) ( 9 ) ( 1,319 ) Balance, end of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 7. Business combinations, goodwill and intangible assets (continued) Intangible assets with definite useful life Intangible assets with definite useful life are comprised of customer lists and user base, non-compete and non-solicitation agreements, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets totaled $ 5,293 thousands, $ 3,912 thousands and $ 6,102 thousands for the years ended December 31, 2020, 2019 and 2018, respectively. The following table summarizes the remaining amortization of intangible assets with definite useful life as of December 31, 2020: For year ended 12/31/2021 $ 3,773 For year ended 12/31/2022 1,264 For year ended 12/31/2023 982 For year ended 12/31/2024 342 Thereafter 43 $ 6,404 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segments [Abstract] | |
Segments | 8. Segments Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed, 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 and other countries (such as Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Panama, Honduras, Nicaragua, El Salvador , Uruguay, Bolivia, Guatemala, Paraguay and the United States of America ). Direct contribution consists of net revenues from external customers less direct costs, which include costs of net revenues, product 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 Company has re-named and grouped by nature its Revenue streams breakdown, given the increasing importance of its financial business in current and expected future revenue composition, which Management considers shows more meaningful information about the business. As such, the breakdown by revenue stream previously labeled as “Enhanced Marketplace” and “Non-marketplace”, is now presented under the titles of “Commerce” and “Fintech”, respectively. Also, as a result, a group of other services, including classifieds fees, ad sales and other ancillary services, which had historically been included in the “Non-marketplace” line, have, as of January 1, 2020, been included as a part of the “Commerce” revenue stream. Prior-period corresponding figures have been reclassified accordingly for comparative purposes. 8. Segments (continued) The following tables summarize the financial performance of the Company’s reporting segments: Year Ended December 31, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 2,194,041 $ 980,276 $ 575,173 $ 223,975 $ 3,973,465 Direct costs ( 1,765,981 ) ( 708,661 ) ( 586,022 ) ( 186,435 ) ( 3,247,099 ) Direct contribution 428,060 271,615 ( 10,849 ) 37,540 726,366 Operating expenses and indirect costs of net revenues ( 598,674 ) Income from operations 127,692 Other income (expenses): Interest income and other financial gains 102,767 Interest expense and other financial losses ( 106,690 ) Foreign currency losses ( 42,454 ) Net Income before income tax expense $ 81,315 Year Ended December 31, 2019 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,461,509 $ 456,332 $ 275,133 $ 103,340 $ 2,296,314 Direct costs ( 1,245,382 ) ( 347,733 ) ( 390,158 ) ( 104,975 ) $ ( 2,088,248 ) Direct contribution 216,127 108,599 ( 115,025 ) ( 1,635 ) 208,066 Operating expenses and indirect costs of net revenues ( 361,227 ) Loss from operations ( 153,161 ) Other income (expenses): Interest income and other financial gains 113,523 Interest expense and other financial losses ( 65,876 ) Foreign currency losses ( 1,732 ) Net loss before income tax expense $ ( 107,246 ) 8. Segments (continued) Year Ended December 31, 2018 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 866,175 $ 376,563 $ 109,096 $ 87,819 $ 1,439,653 Direct costs ( 762,636 ) ( 254,539 ) ( 164,637 ) ( 79,581 ) ( 1,261,393 ) Direct contribution 103,539 122,024 ( 55,541 ) 8,238 178,260 Operating expenses and indirect costs of net revenues ( 247,742 ) Loss from operations ( 69,482 ) Other income (expenses): Interest income and other financial gains 42,039 Interest expense and other financial losses ( 56,249 ) Foreign currency gains 18,240 Net loss before income tax gain $ ( 65,452 ) The following table summarizes the allocation of the long-lived tangible assets based on geography: December 31, 2020 2019 (In thousands) US property and equipment, net $ 586 $ 937 Other countries Argentina 123,589 100,536 Brazil 171,409 103,571 Mexico 73,315 30,131 Other countries 22,785 9,082 $ 391,098 $ 243,320 Total property and equipment, net $ 391,684 $ 244,257 The following table summarizes the allocation of the goodwill and intangible assets based on geography: December 31, 2020 2019 (In thousands) Goodwill and intangible assets Argentina $ 12,617 $ 8,632 Brazil 19,958 30,142 Mexico 35,338 36,003 Chile 24,707 22,237 Other countries 6,746 4,870 Total goodwill and intangible assets $ 99,366 $ 101,884 Consolidated net revenues by similar products and services for the years ended December 31, 2020, 2019 and 2018 were as follows: Consolidated Net Revenues 2020 2019 2018 (In thousands) Commerce $ 2,559,770 $ 1,346,445 $ 838,632 Fintech $ 1,413,695 $ 949,869 $ 601,021 Total $ 3,973,465 $ 2,296,314 $ 1,439,653 |
Fair Value Measurement Of Asset
Fair Value Measurement Of Assets And Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Fair Value Measurement Of Assets And Liabilities | 9. Fair value measurement of assets and liabilities The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable December 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2020 (Level 1) (Level 2) (Level 3) 2019 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 166,483 $ 166,483 $ — $ — $ 688,760 $ 688,760 $ — $ — Sovereign Debt Securities 37,654 37,654 — — 32,874 32,874 — — Restricted Cash and Cash Equivalents: Money Market Funds 257,695 257,695 — — 32,829 32,829 — — Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 144,249 144,249 — — 29,260 29,260 — — Investments: Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 565,705 565,705 — — 506,175 506,175 — — Sovereign Debt Securities 666,837 666,837 — — 1,161,663 1,161,663 — — Corporate Debt Securities — — — — 236 178 58 — Other Assets: Derivative Instruments 199 — — 199 1,249 — — 1,249 Total Financial Assets $ 1,838,822 $ 1,838,623 $ — $ 199 $ 2,453,046 $ 2,451,739 $ 58 $ 1,249 Liabilities: Contingent considerations $ 4,622 $ — $ — $ 4,622 $ 2,201 $ — $ — $ 2,201 Long-term retention plan 136,816 — 136,816 — 60,958 — 60,958 — Derivative Instruments 13,964 — — 13,964 251 — — 251 Total Financial Liabilities $ 155,402 $ — $ 136,816 $ 18,586 $ 63,410 $ — $ 60,958 $ 2,452 As of December 31, 2020 and 2019, 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); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company assumptions. Fair value of derivative instruments are determined considering the prevailing risk free interest rate and spot exchange rate. 9. Fair value measurement of assets and liabilities (continued) As of December 31, 2020 and 2019, the Company’s liabilities were valued at fair value using level 2 inputs and level 3 inputs (valuations based on unobservable inputs reflecting Company own 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. Fair value of derivative instruments are determined considering the prevailing risk free interest rate and spot exchange rate. The unrealized net gains or losses on short-term and long-term investments for which the Company has not elected the fair value option are reported as a component of other comprehensive income. The Company does not anticipate any significant realized losses associated with those investments in excess of the Company’s historical cost. As of December 31, 2020 and 2019, 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, restricted cash and cash equivalents and short-term investments (excluding money markets funds and debt securities), accounts receivable, credit cards receivable and other means of payments, loans receivable, funds payable to customers and amounts due to merchants, other assets (excluding derivative instruments), accounts payable, salaries and social security payable (excluding variable LTRP), taxes payable, provisions and other liabilities (excluding contingent consideration and derivative instruments). As of December 31, 2020 and December 31, 2019 the estimated fair value of the 2028 Notes (liability component), which is based on Level 2 inputs, is $ 672,345 thousands and $ 686,366 thousands, respectively, and were determined based on market interest rates. 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 December 31, 2020 and 2019: Balances as of Significant other Balances as of Significant other December 31, observable inputs December 31, observable inputs 2020 (Level 2) 2019 (Level 2) (In thousands) Assets Time Deposits $ 158,818 158,818 $ 189,660 $ 189,660 Accounts receivable, net 49,691 49,691 35,446 35,446 Credit Cards receivable and other means of payments, net 863,073 863,073 379,969 379,969 Loans receivable, net 401,655 401,655 188,544 188,544 Other assets 236,432 236,432 149,218 149,218 Total Assets $ 1,709,669 $ 1,709,669 $ 942,837 $ 942,837 Liabilities Accounts payable and accrued expenses $ 767,336 $ 767,336 $ 372,309 $ 372,309 Funds payable to customers and amounts due to merchants 1,733,095 1,733,095 894,057 894,057 Salaries and social security payable 120,394 120,394 67,686 67,686 Taxes payable 215,918 215,918 60,247 60,247 Loans payable and other financial liabilities (*) 1,409,269 1,479,165 817,491 927,903 Other liabilities 110,139 110,139 124,644 124,644 Total Liabilities $ 4,356,151 $ 4,426,047 $ 2,336,434 $ 2,446,846 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 16 . As of December 31, 2020 and 2019, the Company held no direct investments in auction rate securities and does no t have any non-financial assets or liabilities measured at fair value. 9. Fair value measurement of assets and liabilities (continued) As of December 31, 2020 and 2019, the fair value of money market funds, sovereign and corporate debt securities classified as available for sale securities are as follows: December 31, 2020 Cost Financial Gains Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,483 $ — $ 166,483 Sovereign Debt Securities (1) $ 37,595 $ 59 $ 37,654 Total Cash and cash equivalents $ 204,078 $ 59 $ 204,137 Restricted Cash and cash equivalents Money Market Funds $ 257,695 $ — $ 257,695 Sovereign Debt Securities (1) 144,098 151 144,249 Total Restricted Cash and cash equivalents $ 401,793 $ 151 $ 401,944 Short-term investments Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) (1) $ 559,487 $ 6,218 $ 565,705 Sovereign Debt Securities (1) 514,894 1,889 516,783 Total Short-term investments $ 1,074,381 $ 8,107 $ 1,082,488 Long-term investments Sovereign Debt Securities (1) $ 149,938 $ 116 $ 150,054 Total Long-term investments $ 149,938 $ 116 $ 150,054 Total $ 1,830,190 $ 8,433 $ 1,838,623 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 – Fair value option applied to certain financial instruments. 9. Fair value measurement of assets and liabilities (continued) December 31, 2019 Cost Gross Unrealized Gains (1) Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 688,760 $ — $ — $ — $ 688,760 Sovereign Debt Securities 32,851 — 23 — $ 32,874 Total Cash and cash equivalents $ 721,611 $ — $ 23 $ — $ 721,634 Restricted Cash and cash equivalents Money Market Funds $ 32,829 $ — $ — $ — $ 32,829 Sovereign Debt Securities (2) 29,227 — 33 — $ 29,260 Total Restricted Cash and cash equivalents $ 62,056 $ — $ 33 $ — $ 62,089 Short-term investments Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) (3) $ 504,195 $ — $ 1,980 $ — $ 506,175 Sovereign Debt Securities (4) 898,922 2,080 400 ( 59 ) 901,343 Corporate Debt Securities 63 — — — 63 Total Short-term investments $ 1,403,180 $ 2,080 $ 2,380 $ ( 59 ) $ 1,407,581 Long-term investments Sovereign Debt Securities (5) $ 260,400 $ 2 $ 1 $ ( 83 ) $ 260,320 Corporate Debt Securities 170 3 — — 173 Total Long-term investments $ 260,570 $ 5 $ 1 $ ( 83 ) $ 260,493 Total $ 2,447,417 $ 2,085 $ 2,437 $ ( 142 ) $ 2,451,797 (1) Unrealized gains 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 December 31, 2019. (2) Held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. See Note 16 – Loans payable and other financial liabilities. (3) Brazilian government bonds measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 – Investments - Fair value option applied to certain financial instruments. (4) Includes $ 627,842 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option see Note 2 – Investments - Fair value option applied to certain financial instruments and $ 16,623 thousands held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. See Note 16 – Loans payable and other financial liabilities. (5) Includes $ 260,230 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 –Investments - Fair value option applied to certain financial instruments. The material portion of the Sovereign Debt Securities are U.S. Treasury Notes and Brazilian federal government bonds with no significant risk associated. As of December 31, 2020, the estimated fair values (in thousands of U.S. dollars) of money market funds and sovereign debt securities classified by its effective maturities or Management expectation to convert the investments into cash are as follows: One year or less 1,688,568 One year to two years 150,055 Total $ 1,838,623 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock | 10. Common stock Authorized, issued and outstanding shares As of December 31, 2020 and 2019, as stated in the Company’s Fourth Amended and Restated Certificate of Incorporation (the “Fourth Amended Certificate of Incorporation”), the Company has authorized 110,000,000 shares of Common Stock, par value $ 0.001 per share (“ Common Stock ”). As of December 31, 2020 and 2019, there were 49,869,727 and 49,709,955 shares of common stock issued and outstanding with a par value of $ 0.001 per share. Voting rights Each outstanding share of common stock, is entitled to one vote on all matters submitted to a vote of holders of common stock, except for stockholders that beneficially own more than 20 % of the shares of the outstanding common stock, in which case the board of directors (the “Board”) may declare that any shares of stock above such 20 % do not have voting rights. The holders of common stock do not have cumulative voting rights in the election of directors. |
Mandatorily Redeemable Converti
Mandatorily Redeemable Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Mandatorily Redeemable Convertible Preferred Stock [Abstract] | |
Mandatorily Redeemable Convertible Preferred Stock | 11. Mandatorily redeemable convertible preferred stock Pursuant to the Fourth Amended Certificate of Incorporation, the Company authorized preferred stock consisting of 40,000,000 shares of preferred stock, par value $ 0.001 per share. As of December 31, 2020, the Company has no Preferred Stock outstanding. As of December 31, 2019, the Company had 100,000 shares of preferred stock issued and outstanding. Each share of Preferred Stock has a stated value of $ 1,000 , is entitled to a cash dividend of 4 % per annum, and is convertible into shares of the Company’s Common Stock at an initial conversion price of $ 479.71 (subject to adjustment). The Company may require the conversion of any or all of the Preferred Stock beginning on March 29, 2023 if certain conditions set forth in the Certificate of Designation are met. The Company may redeem any or all of the Preferred Stock for cash, shares of its Common Stock or a combination thereof (at its election, subject to certain conditions) at any time beginning on March 29, 2026 for a percentage of the stated value of each share of Preferred Stock, plus any accrued and unpaid dividends at such time. On March 15, 2026, September 15, 2026 and March 15, 2027, the holders of the Preferred Stock shall have the right to redeem all of the outstanding shares of Preferred Stock for cash, shares of the Company’s Common Stock or a combination thereof (at the Company’s election, subject to certain conditions) to be determined by the formula set forth in the Certificate of Designation. Upon the occurrence of a change of control, the holders will have the right to redeem their shares of Preferred Stock for cash at a price set forth in the Certificate of Designation. The holders of the Preferred Stock have the right to vote on matters submitted to a vote of the holders of Common Stock on an as-converted basis unless required by applicable law. |
Equity Compensation Plan
Equity Compensation Plan | 12 Months Ended |
Dec. 31, 2020 | |
Equity Compensation Plan [Abstract] | |
Equity Compensation Plan | 12. Equity compensation plan On June 10, 2019, at the Annual Shareholders’ Meeting, the Company’s shareholders approved the adoption of the Amended and Restated 2009 Equity Compensation Plan (the “Amended and Restated 2009 Plan”), which contains terms substantially similar to the terms of the “2009 Equity Compensation Plan” (the “2009 Plan”) that expired in 2019. As of December 31, 2020, there are 1,000,000 shares of common stock available for grant under the Amended and Restated 2009 Plan. Equity compensation awards granted under the Amended and Restated 2009 Plan are at the discretion of the Company’s board of directors and may be in the form of either incentive or nonqualified stock options. As of December 31, 2020, there are no outstanding options granted under the Plan. There was no granting during the period from January 1, 2007 to December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income taxes The components of pretax income (loss) in consolidated companies for the years ended December 31, 2020, 2019 and 2018 are as follows: Year Ended December 31, 2020 2019 2018 (In thousands) United States $ ( 54,425 ) $ 2,900 $ ( 19,461 ) Brazil 79,453 25,693 ( 38,778 ) Argentina 185,054 61,217 107,913 Mexico ( 133,582 ) ( 168,310 ) ( 91,681 ) Other Countries 4,815 ( 28,746 ) ( 23,445 ) $ 81,315 $ ( 107,246 ) $ ( 65,452 ) Income tax is composed of the following: Year Ended December 31, 2020 2019 2018 (In thousands) Income Tax: Current: U.S. $ — $ 8,705 $ ( 10 ) Non-U.S. 152,337 39,595 64,028 152,337 48,300 64,018 Deferred: U.S. ( 5,397 ) ( 13,566 ) ( 3,618 ) Non-U.S. ( 64,918 ) 30,019 ( 89,267 ) ( 70,315 ) 16,453 ( 92,885 ) Income tax expense (gain) 82,022 64,753 ( 28,867 ) 13. Income taxes (continued) The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the effective income tax rate for 2020, 2019 and 2018 to income before taxes: Year Ended December 31, 2020 2019 2018 (In thousands) Net income (loss) before income tax $ 81,315 $ ( 107,246 ) $ ( 65,452 ) Income tax rate 21 % 21 % 21 % Expected income tax gain (expense) $ 17,076 $ ( 22,522 ) $ ( 13,745 ) Permanent differences: Federal and assets taxes 146 203 7 Transfer pricing adjustments 1,243 1,161 1,818 Non-deductible tax 2,641 683 1,043 Non-deductible expenses 17,885 9,309 6,982 Dividend distributions 9,381 2,594 1,085 Non-taxable income ( 3,741 ) ( 15,418 ) ( 31,562 ) Effect of rates different than statutory ( 3,713 ) ( 11,521 ) 3,020 Currency translation 11,775 ( 4,201 ) 3,866 Change in valuation allowance 40,874 113,426 3,130 Argentine tax reform (including changes in income tax rate) — ( 2,175 ) 1,217 Colombian tax reform — — 442 Deferred tax reversed by merger — — ( 3,994 ) Exchange of convertible note — — ( 1,756 ) Tax Inflation Adjustments ( 7,023 ) ( 4,940 ) — Deferred tax reversed by spin-off — ( 886 ) — True up ( 4,522 ) ( 960 ) ( 420 ) Income tax expense (gain) $ 82,022 $ 64,753 $ ( 28,867 ) 13. Income taxes (continued) Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The following table summarizes the composition of deferred tax assets and liabilities for the years ended December 31, 2020 and 2019: December 31, 2020 2019 (In thousands) Deferred tax assets Allowance for doubtful accounts $ 17,963 $ 7,601 Unrealized net gains on investments 2,423 92 Property and equipment, net 15,594 5,467 Accounts payable and accrued expenses 5,009 2,202 Payroll and social security payable 23,516 10,255 Foreign exchange effect 5,399 1,846 Taxes payable 4,843 984 Non compete agreement — 155 Provisions and non-deductible interest 70,425 40,593 Foreign tax credit 17,513 12,841 Tax loss carryforwards 162,008 167,420 Customer Lists — 220 Inventories 322 — Trademarks — 24 Tax inflation adjustments 8,460 6,757 Total deferred tax assets 333,475 256,457 Valuation allowance ( 179,177 ) ( 138,875 ) Total deferred tax assets, net 154,298 117,582 Deferred tax liabilities Property and equipment, net ( 5,771 ) ( 26,761 ) Customer lists ( 713 ) ( 1,043 ) Non compete agreement ( 743 ) — Unrealized net losses on investments ( 121 ) ( 1,160 ) Trademarks ( 86 ) ( 87 ) Goodwill ( 2,962 ) ( 4,392 ) Convertible notes and Capped Call ( 57,813 ) ( 63,258 ) Accounts payable and accrued expenses ( 1,783 ) ( 1,914 ) Payroll and social security payable ( 5,527 ) ( 313 ) Outside Basis Dividends ( 5,974 ) — Provisions ( 2,143 ) ( 884 ) Non Solicitation Agreement — ( 137 ) Foreign exchange effect ( 100 ) ( 3 ) Total deferred tax liabilities $ ( 83,736 ) $ ( 99,952 ) 13. Income taxes (continued) As of December 31, 2020, consolidated loss carryforwards for income tax purposes were $ 162,008 thousands. If not utilized, tax loss carryforwards will begin to expire as follows: 2023 $ 1,426 2024 512 2025 2,282 2026 4,238 2027 20,620 Thereafter 103,461 Without due dates 29,469 Total $ 162,008 Tax reform in Argentina On December 27, 2017, the Argentine Senate approved a comprehensive income tax reform effective since January 1, 2018. Argentinean tax reform, among other things, reduced the 35 percent income tax rate to 30 percent for 2018 and 2019, and to 25 percent as of 2020. The new regulation imposes a withholding income tax on dividends paid by an Argentine entity of 7 percent for 2018 and 2019, increasing to 13 percent as of 2020. Also, repeals the current “equalization tax” (i.e., 35 percent withholding applicable to dividends distributed in excess of the accumulated taxable income) for income accrued from 1 January 2018. Subsequently, in September 2018, the Argentine Government issued the Decree 793/2018 which established a temporary exports duties of 12 % with a maximum limit of 4 Argentine Pesos per each US dollar of the amount of the export invoice. This export duties are applicable for exports of years 2019 to 2021. On December 23, 2019 the Argentine congress enacted a law which maintains corporate income tax rate of 30 % for two more years, instead of reducing the rate to 25 % as established under the previous law. The law also maintains the dividend withholding tax rate of 7 % for two more years for profits accrued during fiscal year starting on January 1, 2020, instead of applying the 13 % rate as previously established. In regard to export duties, the new law reduced the percentage from 12 % (considering the mentioned limit, the effective tax rate was equivalent to 6.7 % as of December 31, 2019) to 5 % without limit and extended the application of export duties until December 31, 2021. Eligible companies under the knowledge-based economy promotional regime will be exempt from paying the export duties. Valuation allowances on deferred tax assets Management periodically assesses the need to establish a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. Management’s judgments related to this assessment consider, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies, which would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Based on Management’s assessment of available objective evidence, the Company accounted for a valuation allowance on deferred tax assets of $ 179,177 thousands and $ 138,875 thousands as of December 31, 2020 and 2019, respectively. This valuation allowance includes $ 17,513 thousands and $ 12,841 thousands to fully reserve the outstanding U.S. foreign tax credits as of December 31, 2020 and 2019, respectively. Management considers the earnings of the Company’s foreign subsidiaries to be indefinitely reinvested, other than certain earnings of which the distributions do not imply withholdings, exchange rate differences or state income taxes, and for that reason has not recorded a .deferred tax liability except for the $ 5,974 thousands deferred tax liability accounted for of undistributed earnings from the Argentine segment. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 14. 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. Proceeding-related liabilities are based on developments to date and historical information related to actions filed against the Company. As of December 31, 2020, the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $ 10,929 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 December 31, 2020, 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 $ 57,668 thousands. No loss amounts have been accrued for such reasonably possible legal actions, the most significant of which are described below. Tax Claims On September 2, 2011, the Brazilian Federal tax authority asserted taxes and fines against the Brazilian subsidiary, Mercadolivre.com, relating to the income tax for the 2006 period in an approximate amount of $ 0.5 million according to the exchange rate in effect as of December 31, 2020. On September 30, 2011, the Company presented administrative defenses against the authorities’ claim. On August 24, 2012, the Company presented its appeal to the Board of Tax Appeals (CARF—Conselho Administrativo de Recursos Fiscais) against the tax authorities’ claims. On December 5, 2013, the Board of Tax Appeals ruled against MercadoLivre’s appeal. The same Board of Tax Appeals recognized as due part of the tax compensation made by the Company, partially decreasing the outstanding debt. On November 21, 2014, the Company appealed to the Board of Tax Appeals, which rejected the appeal on September 8, 2016. The Company filed an appeal against the decision, and the Câmara Superior de Recursos Fiscais (Superior Administrative Court of Tax Appeals) ruled against the Company to uphold the claimed taxes and fines. This decision closed of the administrative stage. On July 28, 2017, the Company filed an annulment court action against the federal tax authority, which to date remains in its evidentiary phase. In December 2017, the Company also posted a bank security bond in the amount of $ 0.44 million according to the exchange rate as of December 31, 2020. Management’s opinion, based on the opinion of external legal counsel, is that the Company’s position is more likely than not to succeed in court, based on the technical merits of the tax position. For that reason, the Company has not recorded any expense or liability for the controversial amounts. Brazilian preliminary injunction against the Brazilian tax authorities On November 6, 2014, the Brazilian subsidiaries Mercadolivre.com, Ebazar.com.br Ltda, Mercado Pago.com Representações Ltda and Mercado Libre S.R.L. filed a writ of mandamus and requested a preliminary injunction with the Federal Court of Osasco against the federal tax authority to avoid the IR (income tax) withholding over payments remitted by the Brazilian subsidiaries to the Argentine subsidiary (Mercado Libre S.R.L.) for the provision of IT support and assistance services by the latter, and requested reimbursement of the amounts improperly withheld over the course of the preceding five (5) years. The preliminary injunction was granted on the grounds that such withholding violated the convention signed between Brazil and Argentina that prevents double taxation. In August 2015, the injunction was revoked by the first instance judge in its award, which was favorable to the tax authority. The Company filed an appeal in September 2015, which is pending judgment. As a result, the Company has started making deposits in court for the disputed amounts. As of December 31, 2020, the total amount of the deposits were $ 57.5 million (which includes $ 6.3 million of interest) included in non-current other assets of the consolidated balance sheet. In June 2020, the Company’s appeal was dismissed. The Company submitted a new remedy before the same Court in July 2020, which was dismissed on February 17, 2021. The company plans to appeal the case to the superior courts. Management’s opinion, based on the opinion of external legal counsel, is that the Company’s position is more likely than not to succeed in court, based on the technical merits of the tax position and the existence of favorable decisions issued by the Federal Regional Courts. For that reason, the Company has not recorded any expense or liability for the disputed amounts. Administrative tax claims On November 9, 2016, São Paulo tax authorities asserted taxes and fines against its Brazilian subsidiary, Ebazar.com.br Ltda, relating to the entitlement of PIS and COFINS credits from 2012 in an approximate amount of $ 0.6 million, according to the exchange rate as of December 31, 2020. The Company submitted administrative defenses against the authorities’ claim, which is pending judgment. The opinion of the Company´s management, based on the opinion of external legal counsel, is that the risk of losing the case is reasonably possible, but not probable. 14. Commitments and Contingencies (continued) Litigation and Other Legal Matters (continued) Administrative tax claims (continued) On December 27, 2016, São Paulo tax authorities assessed taxes and fines against its Brazilian subsidiary MercadoPago.com Representações Ltda., relating to the entitlement of PIS and COFINS credits from 2012 in an approximate amount of $ 2.3 million according to the exchange rate as of December 31, 2020. On February 1, 2017, the Company presented administrative defenses against the authorities’ claim. On October 9, 2017, a judgment was handed down recognizing that expenses with credit card companies are essential for payment institutions. On September 22, 2017, the award rendered was partially favorable to the Company, reducing the value of the tax assessment notice by approximately 60 %. The Company filed an administrative appeal, which is pending judgment. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case is reasonably possible but not probable. On July 12, 2017, São Paulo tax authorities assessed taxes and fines against the Brazilian subsidiary Ibazar.com Atividades de Internet Ltda. relating to “ICMS” (tax on commerce and services) for the period from July 2012 to December 2013 in an amount of $ 2.3 million according to the exchange rate as of December 31, 2020. The Company filed administrative defenses again st the claim, but the São Paulo authorities ruled against the Company and upheld the claimed taxes and fines. On October 30, 2017, the Company filed an appeal with the Tribunal de Impostos e Taxas de São Paulo (São Paulo Tax Administrative Court), which granted the appeal on February 23, 2018 . The tax authorities filed a special appeal with the Câmara Superior (Superior Chamber of the Administrative Court), which was admitted on August 1, 2018 and is now pending judgment. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case is reasonably possible, but not probable. On October 30, 2020 and November 9, 2020, MercadoPago.com Representações Ltda. and Ebazar.com.br Ltda., respectively received tax assessments claiming income tax payments for the period of January to December 2016, with respective penalties and fines. The reasons used by tax authorities are in the sense of not considering specific expenses taken by the Brazilian subsidiaries, such as technology services imported from MercadoLibre S.R.L., Meli Uruguay S.R.L., and MercadoLibre Inc., as deductible for income tax purposes. This conclusion was made with the argument of not being presented, during the tax assessments, sufficient evidence that these services were indeed necessary and effectively hired and paid by the Brazilian subsidiaries. The assessments were presented to MercadoPago.com Representações Ltda. and Ebazar.com.br Ltda. in a total amount of $ 15.2 million and $ 12.5 million, respectively and the defenses were filed on December 1, 2020 and December 8, 2020, respectively, arguing that the Contract Agreements and other documents were presented during the tax assessment. The defenses were also complemented with specific descriptions for each project impacted by such services, reflecting the essentiality of all the expenses considered as deductible and assessed by the tax authorities. These cases are currently awaiting the decision from the first instance of the Administrative Court. Management’s opinion, based on the opinion of external legal counsel, is that the Company’s position is more likely than not to succeed in court, based on the technical merits of the tax position. For that reason, the Company has not recorded any expense or liability for the disputed amounts. Other 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. Buyer protection program The Company provides consumers with a BPP for all transactions completed through Mercado Pago. This program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. The Company’s BPP provides protection to consumers by reimbursing them for the total value of a purchased item and the value of any shipping service paid if it does not arrive or does not match the seller’s description. The Company is entitled to recover from the third-party carrier companies performing the shipping service certain amounts paid under the BPP. Furthermore, in some specific circumstances (i.e. Black Friday, Hot Sale), the Company enters into insurance contracts with third-party insurance companies in order to cover contingencies that may arise from the BPP. 14. Commitments and Contingencies (continued) Buyer protection program (continued) The maximum potential exposure under this program is estimated to be the volume of payments on the Marketplace, for which claims may be made under the terms and conditions of the Company’s BPP. Based on historical losses to date, the Company does not believe that the maximum potential exposure is representative of the actual potential exposure. The Company records a liability with respect to losses under this program when they are probable and the amount can be reasonably estimated. As of December 31, 2020 and 2019, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $ 2,535,041 thousands and $ 1,365,815 thousands, respectively, for which the Company recorded a provision of $ 8,364 thousands and $ 3,808 thousands, respectively. Commitments The Company entered into a purchase commitment with two U.S. suppliers in relation to the purchase of cloud platform services as follows: a)for a total amount of $ 240,500 thousands to be fully paid off between June 1, 2020 and May 31, 2024. As of December 31, 2020, the Company paid $ 49,286 thousands; and b)for a total amount of $ 30,000 thousands to be fully paid off between November 24, 2019 and March 23, 2023. As of December 31, 2020, the Company paid $ 5,913 thousands in relation thereto. |
Long Term Retention Plan
Long Term Retention Plan | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plan | 15. Long term retention plan On March 29, 2020, the Board of Directors, upon the recommendation of the Compensation Committee, adopted the 2020 Long-Term Retention Plan (“2020 LTRP”). In addition to the annual salary and bonus of each employee , certain employees (“Eligible Employees”) are eligible to participate in the 2020 LTRP, which provides for the grant to an Eligible Employee of a cash-settled fixed (a “2020 LTRP Fixed Award”) and cash-settled variable award, (a “2020 LTRP Variable Award”, and together with any 2020 LTRP Fixed Award, the “2020 LTRP Awards”). In order to receive payment in respect of the 2020 LTRP Awards, each Eligible Employee must remain employed as of each applicable payment date. The 2020 LTRP award is payable as follows: the eligible employee will receive 16.66 % of half of his or her target 2019 LTRP bonus once a year for a period of six years , with the first payment occurring in or about the first quarter of 2021 (the “2020 Annual Fixed Payment”); and on each date the Company pays the Annual Fixed payment to the eligible employee, he or she will also receive a payment (the “2020 LTRP Variable Payment”) equal to the product of (i) 16.66 % of the applicable 2020 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 2019 Stock Price (as defined below). For purposes of the 2020 LTRP, the “2019 Stock Price” shall equal $ 553.45 (the average closing price of the Company’s common stock on the NASDAQ Global Select Market during the final 60 trading days of 2019) and the “Applicable Year Stock Price” shall equal the average closing price of the Company’s common stock on the NASDAQ Global Select 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 rest of LTRP outstanding as of December 31, 2020, follows similar calculation method as explained above for 2020 LTRP, except that the 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 LTRP have performance conditions established by the Board of Directors that must be achieved at the first year-end of each plan. Similar to the 2020 LTRP, the rest of the outstanding LTRPs additionally have eligibility conditions to be achieved at each year-end and require the employee remain employed by the Company as of each payment date. 15. Long term retention plan (continued) The following tables summarize the 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 2020 LTRP Variable Award contractual obligation for the years ended December 31, 2020, 2019 and 2018: December 31, 2020 December 31, 2019 December 31, 2018 Weighted-average Weighted-average Weighted-average Aggregate remaining Aggregate remaining Aggregate remaining Intrinsic contractual Intrinsic contractual Intrinsic contractual value life (years) value life (years) value life (years) (In thousands) Outstanding LTRP 2011 — — — — 1,738 0.25 Outstanding LTRP 2012 — — 2,861 0.25 3,460 0.75 Outstanding LTRP 2013 — — — — 4,318 0.25 Outstanding LTRP 2014 — — 5,086 0.25 6,037 0.75 Outstanding LTRP 2015 13,237 0.08 10,484 0.75 9,398 1.25 Outstanding LTRP 2016 34,795 0.62 19,091 1.25 15,343 1.75 Outstanding LTRP 2017 41,315 1.13 19,654 1.75 14,860 2.25 Outstanding LTRP 2018 23,233 1.64 10,727 2.25 8,135 2.88 Outstanding LTRP 2019 133,052 2.14 56,322 2.75 — — Outstanding LTRP 2020 153,113 2.67 — — — — The following tables summarize the LTRP accrued compensation expense for the years ended December 31, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 (In thousands) LTRP 2010 — — 24 LTRP 2011 — 26 766 LTRP 2012 69 1,755 1,398 LTRP 2013 — 97 2,416 LTRP 2014 125 3,743 2,921 LTRP 2015 10,025 6,266 3,984 LTRP 2016 23,152 9,838 5,975 LTRP 2017 25,267 9,737 6,639 LTRP 2018 12,268 5,089 3,402 LTRP 2019 28,523 15,111 — LTRP 2020 30,146 — — $ 129,575 $ 51,662 $ 27,525 |
Loans Payable And Other Financi
Loans Payable And Other Financial Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Loans Payable And Other Financial Liabilities [Abstract] | |
Loans Payable And Other Financial Liabilities | 16. Loans payable and other financial liabilities The following table summarizes the Company ’s Loans payable and other financial liabilities as of December 31, 2020 and 2019: Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity December 31, 2020 December 31, 2019 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 1.44 % January 2021 $ 92,895 $ 38,780 Brazilian Subsidiary Brazilian Reais Variable CDI + 3.35 % March 2021 70,267 - Brazilian Subsidiary Brazilian Reais Variable CDI + 3.25 % May 2021 42,693 - Brazilian Subsidiary Brazilian Reais Variable CDI + 2.10 % June 2021 29,218 - Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % April 2021 18,418 - Argentine Subsidiary Argentine Pesos Fixed 37.75 % May 2021 14,400 - Uruguayan Subsidiary Uruguayan Pesos Fixed 6.71 % February - March 2021 13,406 - Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 34.16 % January 2021 18,311 49,499 Brazilian Subsidiary (*) Brazilian Reais Variable CDI + 0.55 % July 2021 58,437 - Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 7.81 % January 2021 20,055 16,435 Argentine Subsidiary Argentine Pesos Fixed 37.21 % January - February 2021 116,140 9,645 Chilean Subsidiary Chilean Pesos - - % - - 1,951 Convertible notes 6,649 6,649 Finance lease obligations 7,394 2,008 Credit card collateralized debt 12,920 17,309 Collateralized debt 25,342 43,862 Other lines of credit 1,848 - $ 548,393 $ 186,138 Non Current loans payable and other financial liabilities: Convertible notes 595,800 569,305 Finance lease obligations 16,261 7,368 Collateralized debt 248,815 54,680 $ 860,876 $ 631,353 (*) Under the terms of the loan agreement, the Company transferred U.S. treasury notes to an account owned by the Company but under the sole control and dominion of the escrow agent as collateral. This collateral is shown in short-term investments and its coupon payment in Restricted cash and cash equivalents of the consolidated balance sheet, respectively. See Notes 21 and 23 to these consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively. 16. Loans payable and other financial liabilities (continued) Convertible Senior Notes 2.00% Convertible Senior Notes Due 2028 On August 24, 2018, the Company issued $ 800,000 thousands of 2.00 % Convertible Senior Notes due 2028 and on August 31, 2018 the Company issued an additional $ 80,000 thousands of notes pursuant to the partial exercise of the initial purchasers’ option to purchase such additional notes, resulting in an aggregate principal amount of $ 880,000 thousands of 2.00 % Convertible Senior Notes due 2028 (collectively, the “2028 Notes”). The 2028 Notes are unsecured, unsubordinated obligations of the Company, which pay interest in cash semi-annually, on February 15 and August 15 of each year, at a rate of 2.00 % per annum. The 2028 Notes will mature on August 15, 2028 unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date. The 2028 Notes may be converted, under specific conditions, based on an initial conversion rate of 2.2553 shares of common stock per $ 1,000 principal amount of the 2028 Notes (equivalent to an initial conversion price of $ 443.40 per share of common stock), subject to adjustment as described in the indenture governing the 2028 Notes. S ee Note 2 of these consolidated financial statements for more details about the initial accounting of the 2028 Notes. The Company will not have the right to redeem the notes prior to August 21, 2023. On or after August 21, 2023, if the last reported sale price of the Company’s common stock has been at or above 130 % of the conversion price during specified periods, the Company may (at its option) redeem all or any portion of the 2028 Notes for cash equal to the 2028 Notes’ principal amount plus accrued and unpaid interest to, but excluding the redemption date. Holders were able to convert their 2028 Notes at their option at any time prior to February 15, 2028 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (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 2028 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; (3) if the Company calls any or all of the 2028 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after February 15, 2028 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2028 Notes at any time, regardless of the foregoing circumstances. During the year ended December 31, 2020, seven Notes were converted, for a total amount of $ 7 thousands. Additionally, during the fourth quarter of 2020, the conversion threshold was met and the Notes become convertible between January 1, 2021 and March 31, 2021. As of the date of issuance of these interim condensed consolidated financial statements, the Company received additional requests for conversion of $ 1 thousands. 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. In connection with the issuance of the 2028 Notes, the Company paid $ 91,784 thousands, $ 11,472 thousands, $ 88,362 thousands, $ 104,095 thousands, $ 82,682 thousands, $ 120,012 thousands and $ 100,769 thousands (including transaction expenses) in August 2018, November 2018, June 2019, June 2020, August 2020, November 2020 and January 2021, respectively, to enter into capped call transactions with respect to shares of the common stock with certain financial institutions (the “2028 Notes Capped Call Transactions”). In addition, the Company paid $ 8,005 thousands in November 2019 to amend the strike and cap prices of the capped call transaction purchased in November 2018. The 2028 Notes Capped Call Transactions are expected generally to reduce the potential dilution upon conversion of the 2028 Notes in the event that the market price of the Company’s common stock is greater than the strike price of the 2028 Notes Capped Call Transactions. The cost of the 2028 Notes Capped Call Transactions is included as a net reduction to additional paid-in capital in the stockholders’ equity section of the consolidated balance sheets. The total estimated fair value of the 2028 Notes were $ 3,416,819 thousands and $ 1,338,014 thousands as of December 31, 2020 and December 31, 2019, respectively . The fair value was determined based on the closing trading price per $ 100 principal amount of the 2028 Notes as of the last day of trading for the period. The Company considered the fair value of the 2028 Notes as of December 31, 2020 and December 31, 2019 to be a Level 2 measurement. The fair value of the 2028 Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. Based on the $ 1,675.22 closing price of the Company’s common stock on December 31, 2020, the if-converted value of the 2028 Notes exceed their principal amount by $ 2,444,729 thousands. The intention of the Company is to share-settle the excess conversion value upon conversion of the 2028 Notes. 16. Loans payable and other financial liabilities (continued) In January 2021, the Company signed agreements with 2028 Notes holders to repurchase $ 440,000 thousands principal amount of the outstanding of the 2028 Notes. The total amount paid amounted to $ 1,865,076 thousands which includes principal, interest accrued and premium, as resulted, approximately $ 440,000 thousands of the principal amount of the 2028 Notes remains outstanding. As of the date of the issuance of these consolidated financial statements, the Company is analyzing the impact of the repurchase transaction which estimates will have, in the first quarter of 2021, a material negative impact in Other income (expense) line in the consolidated statements of income and in the total equity of the Company. The following table presents the carrying amounts of the liability and equity components related to the 2028 Notes as of December 31, 2020 and 2019 : December 31, 2020 2019 (In thousands) Amount of the equity component (1) $ 327,305 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 879,993 $ 880,000 Unamortized debt discount (2) ( 275,299 ) ( 301,227 ) Unamortized transaction costs related to the debt component ( 8,894 ) ( 9,468 ) Contractual coupon interest accrual 41,409 23,809 Contractual coupon interest payment ( 34,760 ) ( 17,160 ) Net carrying amount $ 602,449 $ 575,954 (1) Net of $ 6,163 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of December 31, 2020, the remaining period over which the unamortized debt discount will be amortized is 7.7 years. The following table presents the interest expense for contractual interest, the accretion of debt discount and the amortization of debt issuance costs: Year ended December 31, 2020 2019 (In thousands) Contractual coupon interest expense $ 17,600 $ 17,942 Amortization of debt discount 25,929 24,556 Amortization of debt issuance costs 574 490 Total interest expense related to the 2028 Notes $ 44,103 $ 42,988 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions Indemnification agreements The Company has entered into indemnification agreements with each of the directors and executive officers of its local subsidiaries. These agreements require the Company to indemnify such individuals, to the fullest extent permitted by the laws of the jurisdiction where these subsidiaries operate, for certain liabilities to which they may become subject by reason of the fact that such individuals are or were directors or executive officers of the local subsidiaries of the Company. Transactions with Venezuelan related parties Subsequent to Venezuelan's deconsolidation, the Company recorded allocation of expenses to the Venezuelan's subsidiaries amounting to $ 278 thousands and $ 4,620 thousands as of December 31, 2020 and 2019, respectively, which were expensed as incurred. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | 18. Valuation and qualifying accounts The following table summarizes valuation and qualifying accounts activity during the years ended December 31, 2020, 2019 and 2018: Charges Utilized/ Balance at beginning of Adoption of ASC 326 (1) Charged/credited to Net Currency translation adjustments/ Balance at end of year loss Write-offs and other adjustments year (In thousands) Allowance for doubtful accounts Year ended December 31, 2018 9,821 — 10,968 ( 12,087 ) 8,702 Year ended December 31, 2019 8,702 — 5,520 ( 7,897 ) 6,325 Year ended December 31, 2020 6,325 — 5,683 ( 4,714 ) 7,294 Credit cards receivable and other means of payments allowance for chargebacks Year ended December 31, 2018 5,184 — 9,199 ( 6,310 ) 8,073 Year ended December 31, 2019 8,073 — 15,673 ( 12,436 ) 11,310 Year ended December 31, 2020 11,310 — 53,662 ( 47,284 ) 17,688 Credit cards receivable and other means of payments allowance for doubtful accounts Year ended December 31, 2020 (2) — — 36,236 ( 12,373 ) 23,863 Loans receivable allowance for uncollectible accounts Year ended December 31, 2018 (3) 4,730 — 27,725 ( 25,819 ) 6,636 Year ended December 31, 2019 (3) 6,636 — 64,341 ( 50,533 ) 20,444 Year ended December 31, 2020 20,444 4,977 91,025 ( 38,630 ) 77,816 Tax valuation allowance Year ended December 31, 2018 15,422 — 3,130 ( 2,828 ) 15,724 Year ended December 31, 2019 15,724 — 113,426 9,725 138,875 Year ended December 31, 2020 138,875 — 40,874 ( 572 ) 179,177 Contingencies Year ended December 31, 2018 5,902 — 7,969 ( 8,058 ) 5,813 Year ended December 31, 2019 5,813 — 10,978 ( 8,819 ) 7,972 Year ended December 31, 2020 7,972 — 3,123 ( 166 ) 10,929 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020. (2) No amounts recorded as of December 31, 2019 and 2018. (3) The comparative information has not been restated and continues to be reported under the accounting standard in effect during 2019 and 2018. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 19. Quarterly Financial Data (unaudited) The following tables present certain consolidated quarterly financial information for each of the last twelve quarters for the years ended December 31, 2020, 2019 and 2018: Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except for share data) 2020 Net Revenues $ 652,091 $ 878,369 $ 1,115,701 $ 1,327,304 Gross profit 312,814 427,172 480,190 489,034 Net (loss) Income ( 21,109 ) 55,947 15,035 ( 50,580 ) Net (loss) Income per share-basic ( 0.44 ) 1.11 0.28 ( 1.02 ) Net (loss) Income per share-diluted ( 0.44 ) 1.11 0.28 ( 1.02 ) Weighted average shares Basic 49,709,955 49,709,973 49,720,854 49,820,185 Diluted 49,709,955 49,709,973 49,720,854 49,820,185 2019 Net Revenues $ 473,770 $ 545,242 $ 603,031 $ 674,271 Gross profit 237,004 272,430 284,342 308,347 Net Income (loss) 11,864 16,217 ( 146,082 ) ( 53,998 ) Net Income (loss) per share-basic 0.13 0.31 ( 2.96 ) ( 1.11 ) Net Income (loss) per share-diluted 0.13 0.31 ( 2.96 ) ( 1.11 ) Weighted average shares Basic 45,980,255 49,318,522 49,710,723 49,709,955 Diluted 45,980,255 49,318,522 49,710,723 49,709,955 2018 Net Revenues $ 320,976 $ 335,377 $ 355,281 $ 428,019 Gross profit 162,758 159,749 169,718 204,783 Net loss ( 12,919 ) ( 11,251 ) ( 10,078 ) ( 2,337 ) Net loss per share-basic ( 0.29 ) ( 0.25 ) ( 0.23 ) ( 0.05 ) Net loss per share-diluted ( 0.29 ) ( 0.25 ) ( 0.23 ) ( 0.05 ) Weighted average shares Basic 44,157,364 44,157,364 44,588,704 45,202,859 Diluted 44,157,364 44,157,364 44,588,704 45,202,859 |
Cash Dividend Distribution
Cash Dividend Distribution | 12 Months Ended |
Dec. 31, 2020 | |
Cash Dividend Distribution [Abstract] | |
Cash Dividend Distribution | 20. Cash Dividend Distribution After reviewing the Company's capital allocation process the Board of Directors has concluded that it has multiple investment opportunities that can generate greater return to shareholders through investing capital into the business over a dividend policy. Consequently, the Board of Directors suspended the payment of dividend to shareholders as from the first quarter of 2018. |
Securitization Transactions
Securitization Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Securitization Transactions [Abstract] | |
Securitization Transactions | 21. Securitization transactions The process of securitization consists of the issuance of securities collateralized by a pool of assets through a special purpose entity, often under a VIE. The Company securitizes financial assets associated with its credit cards and loans receivable portfolio. The Company’s securitization transactions typically involve the legal transfer of financial assets to bankruptcy remote special purpose entities (“SPEs”) or the acquisition of loans receivable portfolios through SPEs. The Company generally retains economic interests in the collateralized securitization transactions, which are retained in the form of subordinated interests. For accounting purposes, the Company is precluded from recording the transfers of assets in securitization transactions as sales or is required to consolidate the SPE. The Company securitizes certain credit cards receivable related to user’s purchases through Argentine SPEs. According to the SPE contracts, the Company has determinated that it has no obligation to absorb losses or the right to receive benefits of the SPE that could be significant because it does not retain any equity certificate of participation or subordinated interest in the SPEs. As the Company do not control the vehicule, the assets, liabilities, and related results are not consolidated in its financial statements. Additionally, the Company intents to securitize certain credit cards receivable related to user’s purchases through Brazilian SPE. According to the SPE contract in place, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPE that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicule, the assets, liabilities, and related results are consolidated in its financial statements. As of December 31, 2020, the Company has not securitized credit cards receivable through the mentioned SPE. The Company securitizes certain loans receivable through Brazilian, Argentine and Mexican SPEs, formed to securitize loans receivable provided by the Company to its users or purchased from financial institutions that grant loans to the Company’s users through Mercado Pago. According to the SPE contracts, the Company has determined that it has both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant because it retains the equity certificates of participation, and would therefore also be consolidated. When the Company controls the vehicle, it accounts the securitization transactions as if they were secured financing and therefore the assets, liabilities, and related results are consolidated in its financial statements. The following table summarizes the Company’s collateralized debt as of December 31, 2020: SPEs Collateralized debt as of December 31, 2020 Interest rate Currency Maturity Mercado Crédito Merchant Fundo de Investimento em Direitos Creditórios 4,839 DI plus 3.5 % Brazilian Reais June 2021 Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 32,588 DI plus 2.5 % Brazilian Reais November 2023 Fundo de Investimento Em DireitosCreditórios Arandu 189,768 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Consumo II 5,989 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos July 2021 Mercado Crédito VII 1,754 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos March 2021 Mercado Crédito VIII 5,678 Badlar rates plus 200 basis points with a min 29 % and a max 39 % Argentine Pesos July 2021 Mercado Crédito Consumo III 6,834 Badlar rates plus 200 basis points with a min 29 % and a max 41 % Argentine Pesos August 2021 Fideicomiso de administración y fuente de pago CIB/3369 26,707 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.34 % Mexican Pesos November 2022 21. Securitization transactions (continued) This secured debt is issued by the SPEs and includes collateralized securities used to fund Mercado Credito business. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have recourse to the Company. Additionally, the cash flows generated by the SPEs are restricted to the payment of amounts due to third-party investors, but the Company retains the right to residual cash flows. The assets and liabilities of the SPEs included in the Company’s consolidated financial statements as of December 31, 2020 and 2019 are as follows: December 31, 2020 2019 Assets (in thousands) Current assets: Restricted cash and cash equivalents $ 249,872 $ 37,424 Loans receivable, net 113,846 104,419 Total current assets 363,718 141,843 Loans receivable, net 9,581 4,395 Total non-current assets 9,581 4,395 Total assets $ 373,299 $ 146,238 Liabilities Current liabilities: Accounts payable and accrued expenses $ 100 $ 128 Loans payable and other financial liabilities 25,342 43,862 Total current liabilities 25,442 43,990 Non-current liabilities: Loans payable and other financial liabilities 248,815 54,680 Total non-current liabilities 248,815 54,680 Total liabilities $ 274,257 $ 98,670 |
Equity Offerings
Equity Offerings | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity Offerings | 22. Equity Offerings On March 15, 2019, the Company closed a public equity offering of approximately $ 1,150,000 thousands of common stock at a public offering price of $ 480 per share (the “Offering”). Pursuant to the Offering, the Company issued 2,395,834 shares of common stock, par value $ 0.001 per share (the “Common Stock”) which includes the exercise in full of the underwriters’ option to purchase $ 150 million of additional shares of common stock. In addition, on March 15, 2019 the Company closed a concurrent private placement of $ 750,000 thousands. Pursuant to the private placement, the Company issued and sold 1,719,790 shares of Common Stock at a price of $ 436.10 per share. On March 29, 2019, the Company issued and sold 100,000 shares of perpetual convertible preferred stock designated as Series A Perpetual Preferred Stock, par value $ 0.001 per share (the “Preferred Stock”) of the Company for $ 100,000 thousands in the aggregate. The Preferred Stock is a class of equity security that ranks senior to the Common Stock with respect to dividend rights or rights upon liquidation. 22. Equity Offerings (continued) Each share of Preferred Stock has a stated value of $ 1,000 , is entitled to a cash dividend of 4 % per annum, and is convertible into shares of the Company’s Common Stock at an initial conversion price of $ 479.71 (subject to adjustment). The Company may require the conversion of any or all of the Preferred Stock beginning on March 29, 2023 if certain conditions set forth in the Certificate of Designation are met. The Company may redeem any or all of the Preferred Stock for cash, shares of its Common Stock or a combination thereof (at its election, subject to certain conditions) at any time beginning on March 29, 2026 for a percentage of the stated value of each share of Preferred Stock, plus any accrued and unpaid dividends at such time. On March 15, 2026, September 15, 2026 and March 15, 2027, the holders of the Preferred Stock shall have the right to redeem all of the outstanding shares of Preferred Stock for cash, shares of the Company’s Common Stock or a combination thereof (at the Company’s election, subject to certain conditions) to be determined by the formula set forth in the Certificate of Designation. Upon the occurrence of a change of control, the holders will have the right to redeem their shares of Preferred Stock for cash at a price set forth in the Certificate of Designation. The holders of the Preferred Stock have the right to vote on matters submitted to a vote of the holders of Common Stock on an as-converted basis unless required by applicable law. In the aggregate, the Company raised funds in the amount of $ 1,965,903 thousands net of issuance costs paid in the amount of $ 34,097 thousands. In September and November 2020, holders converted 100,000 shares of Preferred Stock into 208,460 shares of the Company’s Common Stock. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 23. Leases The Company leases certain fulfillment, cross docking and service centers, office space and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 Operating Leases (In thousands) Operating lease right-of-use assets $ 303,214 $ 200,449 Operating lease liabilities $ 298,847 $ 199,932 Finance Leases Property and equipment, at cost 29,798 10,952 Accumulated depreciation ( 4,086 ) ( 1,563 ) Property and equipment, net $ 25,712 $ 9,389 Loans payable and other financial liabilities $ 23,655 $ 9,376 23. Leases The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases at December 31, 2020: Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 9 % Finance leases 11 % (*) Includes discount rates of leases in local currency and U.S dollar. The components of lease expense were as follows: Year ended December 31, 2020 2019 (In thousands) Operating lease cost $ 42,508 $ 29,515 Finance lease cost: Depreciation of property and equipment 2,474 1,514 Interest on lease liabilities 2,813 1,798 Total finance lease cost $ 5,287 $ 3,312 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 40,339 $ 25,381 Financing cash flows from finance leases 4,949 1,929 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 137,679 $ 93,160 Finance leases 17,177 4,496 23. Leases(continued) The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases: Period Ending December 31, 2020 Operating Leases Finance Leases (In thousands) One year or less $ 58,651 $ 8,833 One year to two years 58,860 7,638 Two years to three years 56,355 6,934 Three years to four years 54,167 4,717 Four years to five years 45,096 1,162 Thereafter 120,892 — Total lease payments $ 394,021 $ 29,284 Less imputed interest ( 95,174 ) ( 5,629 ) Total $ 298,847 $ 23,655 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 24. Derivative Instruments The Company designates certain derivatives as hedges of particular risks associated with forecasted purchases. These transactions, mainly currency forward contracts, are classified as cash flow hedges. As of December 31, 2020 the Company used foreign currency exchange contracts to hedge the foreign currency effects related to the forecasted purchase of MPOS devices in U.S. dollars owed by a Brazilian subsidiary whose functional currency is the Brazilian Reais. Pursuant to these contracts, the Company will buy a notional amount of $ 9,350 thousands in January 2021, $ 8,567 thousands in February 2021, $ 9,735 thousands in March 2021, $ 7,031 thousands in April 2021, $ 7,325 thousands in May 2021, $ 7,718 thousands in June 2021, $ 5,324 thousands in July 2021, $ 5,216 thousands in August 2021, $ 5,417 thousands in September 2021, $ 2,811 thousands in October 2021, $ 2,746 thousands in November 2021 and $ 2,501 thousands in December 2021 at fixed currency rates. The Company designated the foreign currency exchange contracts as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings in the same period the forecasted transaction affects earnings. As of December 31, 2020, the Company estimated that the whole amount of net derivative gains related to its cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. In addition, as of December 31, 2020, the Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions denominated in U.S. dollars of a Brazilian subsidiary, whose functional currency is the Brazilian Reais, which were not designated as hedges for accounting purposes. Pursuant to these contracts, the Company will buy a notional amount of $ 65,000 thousands in January 2021, $ 40,000 thousands in February 2021, $ 44,000 thousands in March 2021, $ 35,000 thousands in April 2021 and $ 31,000 thousands in May 2021, at fixed currency rates. Finally, the Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions denominated in U.S. dollars of a Mexican subsidiary, whose functional currency is the Mexican Peso, which were not designated as hedges for accounting purposes. Pursuant to these contracts, the Company will buy a notional amount of $ 10,766 thousands in January 2021, $ 10,572 thousands in February 2021, $ 37,651 thousands in March 2021, $ 45,000 thousands in April in 2021 and $ 10,000 thousands in May 2021 at fixed currency rates. 24. Derivative Instruments (continued) Foreign exchange contracts The fair values of the Company’s outstanding derivative instruments as of December 31, 2020 and December 31, 2019 were as follows: December 31, Balance sheet location 2020 2019 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 199 $ 1,249 Foreign exchange contracts not designated as hedging instruments Other current liabilities 11,106 — Foreign exchange contracts designated as cash flow hedges Other current liabilities 2,858 251 The effects derivative Contracts on Consolidated Statement of comprehensive income as of December 31, 2020 and December 2019 were as follows: Amount of Amount of gain reclassified December 31, Gain (Loss) recognized from accumulated December 31, 2019 in other comprehensive loss other comprehensive loss (income) 2020 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 250 ) $ 4,219 $ ( 6,438 ) $ ( 2,469 ) The effects derivative Contracts on Consolidated Statement of Income during the year ended December 31, 2020 and December 2019 were as follows: Year ended December 31, 2020 2019 (In thousands) Foreign exchange contracts not designated as hedging instruments $ 1,935 $ 301 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Share Repurchase Program | 25. Share repurchase program On August 30, 2020, the Board of Directors of MercadoLibre authorized the Company to repurchase shares of the Company’s common stock, par value $ 0.001 per share, for aggregate consideration of up to $ 350,000 thousands. The Company expects to purchase shares at any time and from time to time, in compliance with applicable federal securities laws, through open-market purchases, block trades, derivatives, trading plans established in accordance with SEC rules, or privately negotiated transactions. The timing of repurchases will depend on factors including market conditions and prices, the Company’s liquidity requirements and alternative uses of capital. The share repurchase program expires on August 31, 2021 and may be suspended from time to time or discontinued, and there is no assurance as to the number of shares that will be repurchased under the program or that there will be any repurchases. As of December 31, 2020, the Company acquired under the share repurchase program 48,688 shares. The shares were acquired in the Argentine market and paid for in Argentine pesos, and the price of the share repurchase transaction has embedded the additional cost of accessing to US dollars through an indirect mechanism, because of restrictions imposed by the Argentine Government for buying US dollars at the official exchange rate in Argentina. As a result, the Company recognized a foreign currency loss of $ 44,505 thousands. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2020 | |
Impact of COVID-19 Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | 26. Impact of COVID-19 pandemic In March 2020, the outbreak of a novel strain of the coronavirus, COVID-19 was recognized as a pandemic by the World Health Organization, and the outbreak has become increasingly widespread around the world. Government-imposed total or partial lockdowns or curfews instituted throughout Latin America in late March 2020, some of which have been subsequently extended, modified or rescinded, have led to a weakening of the macroeconomic environment, generating recession conditions and a devaluation of the local currencies in the countries in which the Company operates. The Company has thus far not been required to suspend its operations in any country, but the Company’s business was at the beginning of the lockdowns, and may in the future again be, negatively affected by the pandemic in terms of operations, consumer buying trends, and consequently, net revenues. Despite the uncertainty generated by the pandemic, the Company’s revenues increased 73 % for the year ended December, 2020 as compared to the same period in 2019. Management believes that, given the uncertainty with respect to how long the pandemic will persist, what additional measures may be introduced by governments or private parties, what effect any such additional measures may have on our business or the macroeconomic impact of the pandemic in the countries where the Company operates, it is not possible to have certainty around business development and its cash generation until the outbreak of COVID-19 can be definitively contained. In terms of liquidity and cash management, relevant funding sources remain available at the geographical segment level and guaranteed senior notes were issued in January 2021 of $ 1,100,000 thousands. As of December 31, 2020, the Company’s main source of liquidity was $ 2,460,751 thousands of cash and cash equivalents and short-term investments, which excludes a $ 565,705 thousands investment related to the Central Bank of Brazil Mandatory Guarantee and a $ 71,244 thousands investment related to a guarantee for a secured line of credit in Brazil. Lastly, the revenues sources of the Company’s subsidiaries are denominated in local currency. As a result, the current weak macro-economic environment in certain countries in which the Company operates coupled with the devaluations of certain local currencies in those countries against the U.S. dollar could cause a decline in year-over-year net revenues as measured in U.S. dollars. Management has made its best estimation of the potential scenarios for 2021. However it is not possible to predict at this time with certainty the impact that COVID-19 could have and its effects, including its impact on the economies of the countries in which the Company operates, and therefore the extent of the impact on the Company’s financial condition and results of operations if conditions persist or materially deviate from those currently used in its estimates. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Event [Abstract] | |
Subsequent Event | 27. Subsequent event Issuance of guaranteed senior notes In addition to the repurchase of the 2028 Notes described in Note 16, on January 14, 2021, the Company closed a public offering of $ 400,000 thousands aggregate principal amount of 2.375 % Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $ 700,000 thousands aggregate principal amount of 3.125 % Notes due 2031 (the “2031 Notes”, and together with the 2026 Sustainability Notes, the “Notes”). The Company will pay interest on the Notes on January 14 and July 14 of each year, beginning on July 14, 2021. The 2026 Sustainability Notes will mature on January 14, 2026 , and the 2031 Notes will mature on January 14, 2031 . Certain of the Company´s subsidiaries (the “Subsidiary Guarantors”) fully and unconditionally guarantee the payment of principal, premium, if any, interest, and all other amounts in respect of each of the Notes (the “Subsidiary Guarantees”). The initial Subsidiary Guarantors are MercadoLibre S.R.L., Ibazar.com Atividades de Internet Ltda., eBazar.com.br Ltda., Mercado Envios Servicos de Logistica Ltda., MercadoPago.com Representações Ltda., MercadoLibre Chile Ltda., MercadoLibre, S. de R.L. de C.V., DeRemate.com de México, S. de R.L. de C.V. and MercadoLibre Colombia Ltda. The Notes rank equally in right of payment with all of the Company´s other existing and future senior unsecured debt obligations from time to time outstanding. Each Subsidiary Guarantee will rank equally in right of payment with all of the Subsidiary Guarantor’s other existing and future senior unsecured debt obligations from time to time outstanding, except for statutory priorities under applicable local law. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of consolidation The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”) . These consolidated financial statements are stated in U.S. dollars , except for amounts otherwise indicated. Intercompany transactions and balances have been eliminated for consolidation purposes. Substantially all net revenues, cost of net revenues and operating expenses, are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill located in the foreign jurisdictions totaled $ 490,464 thousands and $ 345,204 thousands as of December 31, 2020 and 2019, respectively. |
Use Of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowance for doubtful accounts and chargeback provisions, allowance for loans receivable, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax 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, fair value of investments, fair value of derivative instruments, income taxes and contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates. |
Cash And Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased, consisting primarily of money market funds and time deposits, to be cash equivalents. The Company’s management assesses balances for credit losses included in cash and cash equivalents and restricted cash and cash equivalents based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company did no t recognize any credit loss on the cash and cash equivalent and restricted cash and cash equivalents in 2020, 2019 and 2018. Money market funds and sovereign debt securities are valued at fair value. See Note 9 “Fair Value Measurement of assets and liabilities” for further details. |
Investments | Investments Time deposits are valued at amortized cost plus accrued interest. Debt securities classified as available-for-sale are recorded at fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss), net of the related tax provisions or benefits. Investments are classified as current or non-current depending on their maturity dates and when it is expected to be converted into cash. The Company’s management assesses balances for credit losses included in short and long-term investments based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company did no t recognize any material credit loss on the short and long-term investments in 2020, 2019 and 2018. Corporate and sovereign debt securities (including Central Bank of Brazil mandatory guarantee) are valued at fair value. See Note 9 “Fair Value Measurement of Assets and Liabilities” for further details. Fair value option applied to certain financial instruments U.S. GAAP provides an option to elect fair value with impact on the statement of income as an alternative measurement for certain financial instruments and other items on the balance sheet. The Company has elected to measure certain financial assets at fair value with impact on the statement of income from January 1, 2019 for several reasons including to avoid the mismatch generated by the recognition of certain linked instruments / transactions, separately, in consolidated statement of income and consolidated statement of other comprehensive income and to better reflect the financial model applied for selected instruments. The Company’s election of the fair value option applies to the: i) Brazilian federal government bonds and ii) U.S. treasury notes. As result of the election of the fair value option, the Company recognized gains in interest income and other financial gains of $ 8,433 thousands and $ 2,295 thousands as of December 31, 2020 and 2019, respectively. |
Credit Cards Receivables And Other Means Of Payments, Net | Credit cards receivable and other means of payments, net Credit cards receivables and other means of payments mainly relate to the Company’s payments solution and arise due to the time taken to clear transactions through external payment networks either during the time required to collect the installments or during the period of time until those credit cards receivable are sold to financial institutions. Credit cards receivable and other means of payments are presented net of the related provision for chargebacks and doubtful accounts. 2. Summary of significant accounting policies (continued) Credit cards receivable and other means of payments, net (continued) The Company is exposed to losses due to credit card fraud and other payment misuse. Provisions for these items represent the Company’s estimate of actual losses based on its historical experience, as well as economic conditions. |
Transfer Of Financial Assets | Transfer of financial assets The Company may sell credit cards coupon to financial institutions, included within “Credit cards receivable and other means of payments, net”. These transactions are accounted for as a true sale. Accounting guidance on transfer of financial assets establishes that the transferor has surrendered control over transferred assets if and only if all of the following conditions are met: (1) the transferred assets have been isolated from the transferor, (2) each transferee has the right to pledge or exchange the assets it received and (3) the transferor does not maintain effective control over the transferred assets. When all the conditions are met, the Company derecognizes the corresponding financial asset from its balance sheet. Based on historical experience to date the Company assessed that it does not hold a significant credit risk exposure in relation to transfer of financial assets with recourse. The aggregate gain included in net revenues arising from these financing transactions, net of the costs recognized on sale of credit cards coupon, is $ 452,892 thousands, $ 359,037 thousands and $ 258,595 thousands, for the years ended December 31, 2020, 2019 and 2018, respectively. |
Loans Receivable, Net | Loans receivable, net Loans receivable represents loans granted to certain merchants and consumers through the Company’s Mercado Credito solution. Loans receivable are reported at their outstanding principal balances plus estimated collectible interest, net of allowances. Loans receivable are presented net of the allowance for uncollectible accounts. The Company places loans on non-accrual status at 90 days past due. Through the Company’s Mercado Credito solution, merchants can borrow a certain percentage of their monthly sales volume and are charged with a fixed interest rate based on the overall credit assessment of the merchant. Merchant and consumers credits are repaid in a period ranging between 3 and 24 months. The Company closely monitors credit quality for all loans receivable on a recurring basis. To assess a merchant and consumers seeking a loan under the Mercado Credito solution, the Company uses, among other indicators, a risk model internally developed, as a credit quality indicator to help predict the merchant's ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant's ability to repay the credit, including external and internal indicators. Internal indicators consider merchant's annual sales volume, claims history, prior repayment history, and other measures. Based on internal scoring, merchants are rated from A (Prime) to H (Upper medium grade). In addition, the Company considers external bureau information to enhance the scoring model and the decision making process. The internal rating and the bureau credit score are combined in a risk matrix, which is also used to price the loans based on the risk profile. |
Allowances For Doubtful Accounts On Loans Receivable, Accounts Receivable And Credit Cards Receivable And Other Means Of Payment | Allowances for doubtful accounts on loans receivable, accounts receivable and credit cards receivable and other means of payment Since January 1, 2020 the Company maintains allowances for doubtful accounts for Management’s estimate of current expected credit losses (“CECL”) that may result if customers do not make the required payments. Measurement of current expected credit losses The company estimates its allowance for credit losses as the lifetime expected credit losses of the accounts receivables mentioned above. The CECL represent the present value of the uncollectible portion of the principal, interest, late fees, and other allowable charges. Loans Receivable Loans Receivable in this portfolio include the products that the company offers to: 1) on-line merchant, 2) in-store merchant and 3) consumers. For loans receivable that share similar risk characteristics such as product type, country, unpaid installments, days delinquent, and other relevant factors, the company estimates the lifetime expected credit loss allowance based on a collective assessment. The lifetime expected credit losses is determined by applying probability of default and loss given default models to monthly projected exposures, then discounting these cash flows to present value using the portfolio’s loans interest rate, estimated as a weighted average of the original effective interest rate of all the loans that conform the portfolio segment. 2. Summary of significant accounting policies (continued) Allowances for doubtful accounts on loans receivable, accounts receivable and credit cards receivable and other means of payment (continued) Loans Receivable (continued) The probability of default is an estimation of the likelihood that a loan receivable will default over a given time horizon. Probability of default models are estimated using a transition matrix method; these matrices are constructed using roll rates and then transformed, taking into account the expected future delinquency rate (forward-looking models). Therefore, the models include macroeconomic outlook or projections and recent performance. With this model, the Company estimates marginal monthly default probabilities for each delinquency bucket, type of product and country. Each marginal monthly probability of default represents a different possible scenario of default. The exposure at default is equal to the receivables’ expected outstanding principal, interest and other allowable balances. The Company estimates the exposure at default that the portfolio of loans would have in each possible moment of default, meaning for each possible scenario mentioned above. The loss given default is the percentage of the exposure at default that is not recoverable. The Company estimates this percentage using the transition matrix method mentioned above and the portfolio segment´s interest rate. The measurement of CECL is based on probability-weighted scenarios (probability of default for each month), in view of past events (roll rates), current conditions and adjustments to reflect the reasonable and supportable forecast of future economic conditions which were affected, among other factors, by the COVID-19 pandemic. The Company will continue to monitor the impact of the pandemic on expected credit losses estimates. The Company writes off loans receivable when the customer balance becomes 180 days past due. Accounts Receivable To measure the CECL, accounts receivable have been grouped based on shared credit risk characteristics and the number of days past due. The Company has therefore concluded that the expected loss rates for accounts receivable is a reasonable approximation of the historical loss rates for those assets. Accounts receivable are recovered over a period of 0-180 days, therefore, forecasted changes to economic conditions are not expected to have a significant effect on the estimate of the allowance for doubtful accounts. The Company writes off accounts receivable when the customer balance becomes 180 days past due. Credit cards receivable and other means of payment Management assesses balances for credit losses included in credit cards receivable and other means of payment, based on a review of the average period for which the financial asset is held, credit ratings of the financial institutions and probability of default and loss given default models. The Company has arrangements with some unaffiliated entities under which MercadoLibre users are able to fund their Mercado Pago accounts by depositing an equivalent amount with the unaffiliated entity. In some of these arrangements, MercadoLibre credits the Mercado Pago account before the unaffiliated entity transfers the funds to MercadoLibre to settle the transaction. The amounts pending settlement are recognized in the balance sheet as credit cards receivable and other means of payment. In June 2020, the Company became aware that it had accumulated significant receivables from one such unaffiliated entity in Argentina. The aging of these receivables exceeded the expected aging for transactions of this kind, hence, the Company recorded $ 27,006 thousands loss on doubtful accounts. |
Concentration Of Credit Risk | Concentration of credit risk Cash and cash equivalents, restricted cash and cash equivalents, short-term and long-term investments, credit cards receivable, accounts receivable and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash and cash equivalents and investments are placed with financial institutions and financial instruments that Management believes are of high credit quality. Accounts receivable are derived from revenue earned from customers located internationally. Accounts receivable balances are settled through customer credit cards, debit cards and Mercado Pago accounts, with the majority of accounts receivable collected upon processing of credit card transactions. Due to the relatively small dollar amount of individual accounts receivable and loans receivable, the Company generally does not require collateral on these balances. The allowance for doubtful accounts is recorded as a charge to sales and marketing expense. 2. Summary of significant accounting policies (continued) Concentration of credit risk (continued) During the years ended December 31, 2020, 2019 and 2018, no single customer accounted for more than 5 % of net revenues. As of December 31, 2020 and 2019, no single customer, except for credit card processing companies, accounted for more than 5 % of accounts receivable and loans receivable. Credit cards receivable and other means of payments, net line of the consolidated balance sheet shows the Company´s credit exposure to not more than 10 entities in each of the countries where the Company offers our payments solution. |
Funds Payable To Customers And Amounts Due To Merchants | Funds payable to customers and amounts due to merchants Funds payable to customers relate also to the Company’s payments solution and are originated by the amounts due to users held by the Company. Funds, net of any amount due to the Company by the user, are maintained in the user’s current account until withdrawal is requested by the user. See Note 4 “Cash, cash equivalents, restricted cash and cash equivalent and investments” for additional information on regulations of Mercado Pago business. Amounts due to merchants are originated by purchase transactions carried out by the Company´s customers with debit cards issued by Mercado Pago. |
Provision For Buyer Protection Program | Provision for buyer protection program The Company provides consumers with a buyer protection program (“BPP”) for all transactions completed through the Company’s online payment solution (“Mercado Pago”). The Company is exposed to losses under this program due to this program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. Provisions for BPP represent the Company’s estimate of probable losses based on its historical experience. |
Inventories | Inventories Inventories, consisting of products and mobile point of sale (“MPOS”) devices available for sale, are accounted for using the weighted average price method, and are valued at the lower of cost or market value. The Company accounts for an allowance for recoverability of inventories based on management´s analysis of the inventories, aging, consumption patterns, as well as the lower of cost or net realizable value. Third-party sellers whose products are stored at the Company’s fulfillment centers, maintain the ownership of their inventories hence these products are not included in Company’s inventories balances. |
Property And Equipment, Net | Property and equipment, net Property and equipment are recorded at their acquisition cost and depreciated over their estimated useful lives using the straight-line method. Repair and maintenance costs are expensed as incurred. Costs related to the planning and post implementation phases of website development are recorded as an operating expense. Direct costs incurred in the development phase of website are capitalized and amortized using the straight-line method over an estimated useful life of three years . During 2020 and 2019, the Company capitalized $ 119,491 thousands and $ 59,602 thousands, respectively. Buildings, excluding lands, are depreciated from the date when they are ready to be used, using the straight-line depreciation method over a 50 -year depreciable life. |
Goodwill And Intangible Assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Intangible assets consist of customer lists, trademarks, licenses, software, non-solicitation and non-compete agreements acquired in business combinations and valued at fair value at the acquisition date. Intangible assets with definite useful life are amortized over the period of estimated benefit to be generated by those assets and using the straight-line method; their estimated useful lives ranges from three to ten years . Trademarks with indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized. |
Impairment Of Long-lived Assets | Impairment of long-lived assets The Company reviews long-lived assets for impairments whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by the asset. If such asset is considered to be impaired on this basis, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of such asset. |
Impairment Of Goodwill And Intangible Assets With Indefinite Useful Life | Impairment of goodwill and intangible assets with indefinite useful life Goodwill and intangible assets with indefinite useful life are reviewed at the end of the year for impairment or more frequently, if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level (considering each segment of the Company as a reporting unit) by comparing the reporting unit’s carrying amount, including goodwill, to the fair value of such reporting unit. As of December 31, 2020 and 2019, the Company elected to perform the quantitative impairment test for both goodwill and intangible assets with indefinite useful life. For the year ended December 31, 2020, the fair values of the reporting units were estimated using the income approach. Cash flow projections used were based on financial budgets approved by Management. The Company uses discount rates to each reporting unit in the range of 15.1 % to 21.0 %. The average discount rate used for 2020 was 17.2 %. That rate reflected the Company’s estimated weighted average cost of capital. Key drivers in the analysis include Average Selling Price (“ASP”), Take Rate defined as marketplace revenues as a percentage of Gross Merchadise Volumem (“GMV”), Total Payment Volume Off Platform (“TPV Off”), Off Platform Take Rate defined as off platform revenues as a percentage of TPV Off, Wallet and Point TPV per Payer, Wallet Users over Total Population and Active Point devices. In addition, the analysis includes a business to e-commerce rate, which represents growth of e-commerce as a percentage of Gross Domestic Product, Internet penetration rates as well as trends in the Company’s market share. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired . No impairment loss has been recognized in the years ended December 31, 2020, 2019 and 2018 as Management’s assessment of the fair value of each reporting unit exceeds its carrying value. Intangible assets with indefinite useful life are considered impaired if the carrying amount of the intangible asset exceeds its fair value. No impairment loss has been recognized in the years ended December 31, 2020, 2019 and 2018. |
Revenue Recognition | Revenue recognition Revenues are recognized when control of the promised services or goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for them. Contracts with customers may include promises to transfer multiple services including discounts on current or future services. Determining whether services are considered distinct performance obligations that should be accounted for separately versus together may require judgment. Revenues are recognized when each performance obligation is satisfied by transferring the promised service to the customer according to the following criteria described for each type of service: a) Commerce transactions: Revenues from intermediation services derived from listing and final value fees paid by sellers. Revenues related to final value fees are recognized at the time that the transaction is successfully concluded. Revenues from shipping services are generated when a buyer elects to receive the item through the Company’s shipping service and the service is rendered to the customer. When the Company acts as an agent, revenues derived from the shipping services are presented net of the transportation costs charged by third-party carriers and when the Company acts as principal, revenues derived from the shipping services are presented in gross basis. As part of the Company’s business strategy, shipping costs may be fully or partially subsidized at the Company’s option. Revenues from inventories sales are generated when control of the good is transferred to the Company’s customers, which occurs upon delivery to the customer. 2. Summary of significant accounting policies (continued) Revenue recognition (continued) Advertising revenues such as the sale of banners are recognized on accrual basis during the average advertising period, and remaining advertising services such as sponsorship of sites and improved search standing are recognized based on “per-click” (which are generated each time users on the Company’s websites click through text-based advertisements to an advertiser’s designated website) values and as the “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of the Company’s websites) are delivered. Classified advertising services, are recorded as revenue ratably during the listing period. Those fees are charged at the time the listing is uploaded onto the Company’s platform and is not subject to successful sale of the items listed. b) Fintech services: Revenues from commissions we charge to sellers for transactions off-platform derived from the use of the Company’s on-line payments solution, are recognized once the transaction is considered completed, when the payment is processed by the Company, net of rebates granted. The Company also earns revenues as a result of offering financing to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets to financial institutions. When the Company finances the transactions directly, it recognizes financing revenue ratably over the period of the financing. When the Company sells the corresponding financial assets to financial institutions, the result of such sale is accounted for as financing revenues net of financing costs at the time of transfer of the financial assets. Revenues from interest earned on loans and advances granted to merchants and consumers are recognized over the period of the loan and are based on effective interest rates. The Company places loans on non-accrual status at 90 days past due. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Receivables are presented net of allowance for doubtful accounts, loans receivables and chargebacks. The allowance for doubtful accounts, loans receivable and chargebacks was $ 126,661 thousands and $ 38,079 thousands as of December 31, 2020 and 2019, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the year in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. Deferred revenue as of December 31, 2019 and 2018 was $ 16,590 thousands and $ 5,918 thousands, respectively, of which substantially all were recognized as revenue during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, total deferred revenue was $ 32,519 thousands, mainly due to loyalty program points that are expected to be accrued as revenue in the coming months and fees related to listing and optional feature services billed. |
Share-based Payments | Share-based payments The liability related to the variable portion of the long term retention plans is remeasured at fair value. See Note 15 “Long Term Retention Plan” for more details. |
Sales Tax | Sales tax The Company’s subsidiaries in Brazil, Argentina and Colombia are subject to certain sales taxes which are classified as cost of net revenues and totaled $ 325,316 thousands, $ 189,313 thousands and $ 139,433 thousands for the years ended December 31, 2020, 2019 and 2018, respectively. |
Advertising Costs | Advertising costs The Company expenses the costs of advertisements in the period during which the advertising space or airtime is used as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click basis, or on a straight-line basis over the term of the contract. 2. Summary of significant accounting policies (continued) |
Comprehensive Loss | Comprehensive loss Comprehensive loss is comprised of two components, net loss and other comprehensive loss. This last component is defined as all other changes in the equity of the Company that result from transactions other than with shareholders. Other comprehensive loss includes the cumulative adjustment relating to the translation of the financial statements of the Company’s foreign subsidiaries, unrealized gains and losses on investments classified as available-for-sale and on hedging activities. Total comprehensive loss for the years ended December 31, 2020, 2019 and 2018 amounted to $ 62,320 thousands, $ 187,093 thousands and $ 145,311 thousands, respectively. |
Variable Interest Entities (VIE) | Variable Interest Entities (VIE) A VIE is an entity (i) that has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, (ii) that has equity investors who lack the characteristics of a controlling financial interest or (iii) in which the voting rights of some equity investors are disproportionate to their obligation to absorb losses or their right to receive returns, and substantially all of the entity’s activities are conducted on behalf of the equity investors with disproportionately few voting rights. The Company consolidates VIEs of which it is the primary beneficiary. The Company is considered to be the primary beneficiary of a VIE when it has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. See Note 21 to these consolidated financial statements for additional detail on the VIEs used for securitization purposes. |
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 Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018 . Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive loss. Gains and losses resulting from transactions denominated in non-functional currencies are recognized in earnings. Net foreign currency transaction results are included in the consolidated financial statements of income under the caption “Foreign currency (losses) gains” and amounted to $( 42,454 ) thousands, $( 1,732 ) thousands and $ 18,240 thousands for the years ended December 31, 2020, 2019 and 2018, respectively. Argentine currency status As of July 1, 2018, t he Company transitioned its Argentinian operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their inmediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls which restrict or may partially restrict, the access of foreign currency, like the US dollar, for making payments abroad, either of foreign debt or imports of goods or services, dividend payments, and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government´s perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce and financial payments is the official exchange rate, which as of December 31, 2020 was 84.15 and as of February 26, 2021 was 89.82 . The Company uses Argentina’s official exchange rate to record the accounts of Argentine subsidiaries. The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of December 31, 2020 and December 31, 2019: December 31, 2020 2019 (In thousands) Assets $ 1,470,885 $ 805,605 Liabilities 1,230,326 580,402 Net Assets $ 240,559 $ 225,203 |
Derivative Financial Instruments | 2. Summary of significant accounting policies (continued) Derivative Financial Instruments The Company’s operations are in various foreign currencies and consequently are exposed to foreign currency risk. The Company uses derivative instruments to reduce the volatility of earnings and cash flows which were designated as hedges. All outstanding derivatives are recognized in the Company’s consolidated balance sheet at fair value except for the derivatives related to the Capped Call Transactions (as defined in Note 16) which are recognized in equity at cost paid. The effective portion of a designated derivative’s gain or loss in a cash flow hedge is initially reported as a component of accumulated other comprehensive (loss) income and is subsequently reclassified into the financial statement line item in which the variability of the hedged item is recorded in the period the hedging transaction affects earnings. The Company also hedges its economic exposure to foreign currency risk related to foreign currency denominated monetary assets and liabilities with foreign derivative currency contracts which were not designated as hedges. The gains and losses on the foreign exchange derivative contracts economically offset gains and losses on certain foreign currency denominated monetary assets and liabilities recognized in earnings. Accordingly, these outstanding non-designated derivatives are recognized in the Company’s consolidated balance sheet at fair value, and changes in fair value from these contracts are recorded in other income (expense), net in the consolidated statement of income. |
Leases | Leases At the beginning of the first quarter of 2019, the Company adopted ASC Topic 842, Leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term, which is a non-monetary asset, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease, which is a monetary liability. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company uses incremental borrowing rates based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease prepaid payments made. In addition, the Company elected to not separate lease components and to keep leases with an initial term of 12 months or less off of the balance sheet. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. |
Income Taxes | Income 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. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to global intangible low-taxed income (GILTI) as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company selected the period cost method. Accordingly, the Company was not required to record any impact in connection with the potential GILTI tax as of December 31, 2020 and 2019, respectively. On August 2011, the Argentine government issued a software development law which was regulated on September 2013, and which expired on December 31, 2019. The Company’s Argentine subsidiary, MercadoLibre S.R.L, was eligible under said law and, as a result, it has been granted a tax holiday. A portion of the benefits obtained was a 60 % relief of total income tax related to software development activities and a 70 % relief of payroll taxes related to software development activities. The Argentine Industry Secretary approved the Company’s application for eligibility under the law for the Company’s Argentine subsidiary, MercadoLibre S.R.L. As a result, the Company’s Argentine subsidiary has been granted a tax holiday retroactive from September 18, 2014. A portion of the benefits obtained is a 60 % relief of total income tax related to software development activities and a 70 % relief of payroll taxes related to software development activities. 2. Summary of significant accounting policies (continued) Income taxes (continued) As a result of the Company’s eligibility under the law, it recorded an income tax benefit of $ 12,007 thousands and $ 19,988 thousands during 2019 and 2018, respectively. Furthermore, the Company recorded a labor cost benefit of $ 7,970 thousands and $ 6,801 thousands during 2019 and 2018. Additionally, $ 1,398 thousands and $ 1,875 thousands were accrued to pay software development law audit fees during 2019 and 2018, respectively. Aggregate per share effect of the Argentine tax holiday amounted to $ 0.25 and $ 0.45 for the years ended December 31, 2019 and 2018, respectively. On June 10, 2019, the Argentine government enacted Law No. 27,506 (knowledge-based economy promotional regime), which established a regime that provides certain tax benefits for companies that meet specific criteria, such as companies that derive at least 70% of their revenues from certain specified activities related to the knowledge-based economy. Law No. 27,506 allows companies that were benefiting from the software development law, to apply for tax benefits under Law No. 27,506. The above-mentioned regime was suspended on January 20, 2020 through a resolution issued by Argentina’s Ministry of Productive Development until new rules for the application of the knowledge-based economy promotional regime were issued. On June 25, 2020, the Chamber of Deputies passed changes to the knowledge-based economy promotional regime. The Chamber of Senates proposed further amendments, which were returned to the Chamber of Deputies and finally approved on October 7, 2020. The approved regime is effective as of January 1, 2020 until December 31, 2029. Based on the amended promotional regime, companies that meet new specified criteria shall be entitled to: i) a reduction of the income tax burden up to 60% (60% for micro and small enterprises, 40% for medium-sized enterprises and 20% for large enterprises) over the promoted activities for each fiscal year, applicable to both Argentine source income and foreign source income, ii) stability of the benefits established by the knowledge-based economy promotional regime (as long as the beneficiary is registered and in good standing), iii) a non-transferable tax credit bond amounting to 70% (which can be up to 80% in certain specific cases) of the Company’s contribution to the social security regime of every employee whose job is related to the promoted activities (caps on the number of employees are applicable). Such bonds can be used within 24 months from their issue date (which period can be extended for an additional 12 months in certain cases) to offset certain federal taxes, such as value-added tax, but they cannot be used to offset income tax. On December 20, 2020, Argentina’s Executive Power issued Decree No. 1034/2020, which set the rules to implement the provisions of the knowledge-based economy promotional regime. Eligible companies must enroll in a registry according to the terms and conditions to be established by the Application Authority, which will verify compliance with the requirements. The Decree also set the mechanism for calculating the level of investment in research and development, the level of employee retention, exports, among others. It also establishes that exports of services from companies participating in this regime will not be subject to export duties. On January 13, 2021, Argentina’s Ministry of Productive Development –current Application Authority of the knowledge-based economy promotional regime- issued Resolution No. 4/2021 which was followed by Disposition N° 11/2021 issued by the Under Secretariat of Knowledge Economy on February 12, 2021. Both rules establish further details on the requirements, terms, conditions, application, and compliance procedures to be eligible under the promotional regime. The Company is currently assessing whether it will be eligible to benefit from the new law and related tax benefits, such eligibility remaining subject to Argentine government approval. |
Uncertainty In Income Taxes | Uncertainty in income taxes The Company recognizes, if any, uncertainty in income taxes by applying the accounting prescribed by U.S. GAAP, for which a more likely than not recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return should be considered. It also provides guidance on de-recognition, classification of a liability for unrecognized tax benefits, accounting for interest and penalties, accounting in interim periods and expanded income tax disclosures. The Company classifies interest and penalties, if any, within income taxes expense, in the statement of income. The Company is subject to taxation in the U.S. and various foreign jurisdictions. The material jurisdictions that are subject to examination by tax authorities for tax years after 2014 primarily include the U.S., Argentina, Brazil and Mexico. 2. Summary of significant accounting policies (continued) |
2.00% Convertible Senior Notes Due 2028 – Debt Exchange | 2.00% Convertible Senior Notes due 2028 – Debt Exchange On August 24, 2018, the Company issued $ 800,000 thousands of 2.00 % Convertible Senior Notes due 2028 and on August 31, 2018 the Company issued an additional $ 80,000 thousands of notes pursuant to the partial exercise of the initial purchasers’ option to purchase such additional notes, resulting in an aggregate principal amount of $ 880 million of 2.00 % Convertible Senior Notes due 2028 (collectively, the “2028 Notes”). For more detailed information in relation to the 2028 Notes, see Note 16 to these consolidated financial statements. The convertible debt instrument was separated into debt and equity components at issuance and a fair value was assigned. The value assigned to the debt component was the estimated fair value, as of the issuance date, of similar debt without the conversion feature. As of the issuance date the Company determined the fair value of the liability component of the 2028 Notes based on market data that was available for senior, unsecured non-convertible corporate bonds issued by comparable companies. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as level 2 observable inputs. The difference between the cash proceeds and this estimated fair value represents the value assigned to the equity component and was recorded as a debt discount. The debt discount is amortized using the effective interest method from the origination date through its stated contractual maturity date. The initial debt component of the 2028 Notes was valued at $ 546,532 thousands, based on the contractual cash flows discounted at an appropriate market rate for non-convertible debt at the date of issuance, which was determined to be 7.44 %. The carrying value of the permanent equity component reported in additional paid-in-capital was initially valued at $ 333,468 thousands. The effective interest rate after allocation of transaction costs to the liability component is 7.66 % and is used to amortize the debt discount and transaction costs. Additionally, the Company recorded a deferred tax liability related to the additional paid-in capital component of the 2028 Notes of $ 70,028 thousands. |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock On March 29, 2019, the Company issued and sold 100,000 shares of perpetual convertible preferred stock designated as Series A Perpetual Preferred Stock, par value $ 0.001 per share (the “Preferred Stock”) of the Company for $ 100,000 thousands in the aggregate. The Company determined that the shares of Preferred Stock should be classified as mezzanine equity upon their issuance since they are contingently redeemable as explained in Note 22. The Company also determined that there is a beneficial conversion feature of $ 5,841 thousands attributable to the Preferred Stock because the initial conversion price was lower than the fair value of MercadoLibre’s common stock on March 29, 2019 (the commitment date). The beneficial conversion feature was fully amortized at issuance, increasing the Preferred Stock’s carrying amount, since the shares of Preferred Stock are perpetual and the holders of Preferred Stock have the right to convert immediately. In addition, the Company determined that there were no embedded derivatives requiring bifurcation. |
Treasury Stock | Treasury Stock Equity instruments of the Company that are repurchased by the Company are recognized at cost and deducted from equity. If the repurchase of the Company’s stock is carried out at a price significantly in excess of the current market price, there is a presumption that the repurchase price includes amounts attributable to items other than the stock repurchased; therefore, the Company uses the quoted market price of the common stock for purposes of determining the fair value of the treasury stock. |
Recently Adopted Accounting Standards & Accounting Pronouncements Not Yet Adopted | 2. Summary of significant accounting policies (continued) Recently Adopted Accounting Standards On June 16, 2016 the FASB issued the ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of credit losses on financial instruments”. This update amended 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 requires that credit losses be presented as an allowance rather than as a write-down. The Company adopted this standard effective January 1, 2020 using a modified retrospective approach transition method, resulting in a decrease of $ 4,570 thousands (net of income tax) to the opening balance of retained earnings. On August 29, 2018 the FASB issued the ASU 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)”. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company’s financial statements. Accounting Pronouncements Not Yet Adopted On December 18, 2019 the FASB issued the ASU 2019-12 “Income taxes (Topic 740)—Simplifying the accounting for income taxes”. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles and also improve consistent application by clarifying and amending existing guidance, such as franchise taxes and interim recognition of enactment of tax laws or rate changes. The amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On August 5, 2020 the FASB issued the ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this update address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, accounting models for specific features are removed and amendments to the disclosure requirements are included. For contracts in an entity’s own equity, simplifies the settlement assessment by removing some requirements. Additionally, the amendments in this update affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries | December 31, 2020 2019 (In thousands) Assets $ 1,470,885 $ 805,605 Liabilities 1,230,326 580,402 Net Assets $ 240,559 $ 225,203 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share [Abstract] | |
Net (Loss) Income Per Share Of Common Stock | Year Ended December 31, 2020 2019 2018 (In thousands) Basic Diluted Basic Diluted Basic Diluted Net loss per common share $ ( 0.08 ) $ ( 0.08 ) $ ( 3.71 ) $ ( 3.71 ) $ ( 0.82 ) $ ( 0.82 ) Numerator: Net loss $ ( 707 ) $ ( 707 ) $ ( 171,999 ) $ ( 171,999 ) $ ( 36,585 ) $ ( 36,585 ) Amortization of redeemable convertible preferred stock — — ( 5,841 ) ( 5,841 ) — — Dividends on preferred stock ( 3,200 ) ( 3,200 ) ( 3,000 ) ( 3,000 ) — — Net loss corresponding to common stock $ ( 3,907 ) $ ( 3,907 ) $ ( 180,840 ) $ ( 180,840 ) $ ( 36,585 ) $ ( 36,585 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,740,407 — 48,692,906 — 44,529,614 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,740,407 — 48,692,906 — 44,529,614 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments [Abstract] | |
Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | December 31, 2020 2019 (In thousands) Cash and cash equivalents $ 1,856,394 $ 1,384,740 Restricted cash and cash equivalents Securitization Transactions $ 249,872 $ 37,424 Sovereign Debt Securities (Secured lines of credit guarantee) — 29,260 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 144,249 — Bank account (Argentine Central Bank regulation) 237,511 — Bank collateral account ( Secured lines of credit guarantee) 574 — Money Market Funds (Secured lines of credit guarantee) 19,469 — Cash in bank account 155 — Total restricted cash and cash equivalents $ 651,830 $ 66,684 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 2,508,224 $ 1,451,424 Short-term investments Time Deposits $ 158,818 $ 189,660 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 565,705 506,175 Sovereign Debt Securities (Secured lines of credit guarantee) 71,244 16,623 Sovereign Debt Securities 445,539 884,720 Corporate Debt Securities — 63 Total short-term investments $ 1,241,306 $ 1,597,241 Long-term investments Sovereign Debt Securities $ 150,054 $ 260,320 Corporate Debt Securities — 173 Other Investments 16,057 3,490 Total long-term investments $ 166,111 $ 263,983 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components [Abstract] | |
Schedule Of Accounts Receivable, Net | December 31, 2020 2019 (In thousands) Users $ 42,012 $ 27,340 Advertising 11,185 9,452 Others debtors 3,788 4,979 56,985 41,771 Allowance for doubtful accounts ( 7,294 ) ( 6,325 ) Accounts receivable, net $ 49,691 $ 35,446 |
Schedule Of Credit Card Receivables And Other Means Of Payments, Net | December 31, 2020 2019 (In thousands) Credit cards and other means of payments $ 904,624 $ 391,279 Allowance for chargebacks ( 17,688 ) ( 11,310 ) Allowance for doubtful accounts ( 23,863 ) — Credit cards receivable and other means of payments, net $ 863,073 $ 379,969 |
Schedule Of Current Other Assets | December 31, 2020 2019 (In thousands) VAT credits $ 11,555 $ 16,997 Income tax credits 48,876 57,844 Sales tax credits 18,107 442 Advance to ATM providers 37,498 — Advance to suppliers 21,520 — Other 15,403 13,453 Current other assets $ 152,959 $ 88,736 |
Schedule Of Noncurrent Other Assets | December 31, 2020 2019 (In thousands) Judicial deposits 57,525 51,364 Other 10,090 6,877 Non current other assets $ 67,615 $ 58,241 |
Schedule Of Property And Equipment, Net | Estimated useful life December 31, (years) 2020 2019 (In thousands) Equipment 3 - 5 $ 113,669 $ 83,961 Land & Building 50 (1) 96,974 80,832 Furniture and fixtures 3 - 10 134,999 83,810 Software 3 282,066 179,211 Vehicles 4 17,198 4,442 644,906 432,256 Accumulated depreciation ( 253,222 ) ( 187,999 ) Property and equipment, net $ 391,684 $ 244,257 (1) Estimated useful life attributable to “Buildings” . |
Schedule Of Depreciation And Amortization | Year Ended December 31, 2020 2019 2018 (In thousands) Depreciation and amortization: Cost of net revenues $ 15,902 $ 8,873 $ 4,332 Product and technology development 53,530 40,920 31,852 Sales and marketing 1,776 2,076 1,643 General and administrative 10,088 7,517 7,965 $ 81,296 $ 59,386 $ 45,792 |
Schedule Of Accounts Payable And Accrued Expenses | December 31, 2020 2019 (In thousands) Accounts payable $ 728,056 $ 331,140 Accrued expenses Advertising 24,135 33,118 Buyer protection program provision 8,364 3,808 Professional fees 5,415 2,485 Other expense provisions 1,366 1,758 Accounts payable and accrued expenses $ 767,336 $ 372,309 |
Schedule Of Funds Payable To Customers And Amounts Due To Merchants | December 31, 2020 2019 (In thousands) Funds payable to customers $ 1,695,424 $ 894,057 Amounts due to merchants 37,671 — Funds payable to customers and amounts due to merchants $ 1,733,095 $ 894,057 |
Schedule Of Current Other Liabilities | December 31, 2020 2019 (In thousands) Advanced Collections $ 15,041 $ 81,045 Deferred revenue 32,519 16,590 Provisions and contingencies — 5,123 Contingent considerations and escrows from acquisitions 4,540 792 Customer advances 39,054 9,621 Derivative instruments 13,964 251 Other 3,416 1,047 Current other liabilities $ 108,534 $ 114,469 |
Schedule Of Noncurrent Other Liabilities | December 31, 2020 2019 (In thousands) Provisions and contingencies $ 10,929 $ 7,972 Contingent considerations and escrows from acquisitions 3,291 4,470 Other 5,971 185 Non current other liabilities $ 20,191 $ 12,627 |
Schedule Of Accumulated Other Comprehensive Loss | December 31, 2020 2019 2018 (In thousands) Foreign currency translation $ ( 466,569 ) $ ( 408,099 ) $ ( 394,306 ) Unrealized gains on investments — 2,029 3,345 Estimated tax loss on unrealized gains (loss) 754 ( 351 ) ( 616 ) Unrealized losses on hedging activities ( 2,469 ) ( 250 ) — Accumulated other comprehensive loss $ ( 468,284 ) $ ( 406,671 ) $ ( 391,577 ) |
Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss | Unrealized Unrealized Foreign Estimated tax (Loss) Gains on (Losses) Gains on Currency (expense) hedging activities, net Investments Translation benefit Total 2020 Total 2019 (In thousands) Balances as of December 31, 2019 $ ( 250 ) $ 2,029 $ ( 408,099 ) $ ( 351 ) $ ( 406,671 ) $ ( 391,577 ) Other comprehensive (loss) income before reclassifications 4,219 — ( 58,470 ) ( 1,435 ) ( 55,686 ) ( 12,365 ) Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income ( 6,438 ) ( 2,029 ) — 2,540 ( 5,927 ) ( 2,729 ) Net current period other comprehensive (loss) income ( 2,219 ) ( 2,029 ) ( 58,470 ) 1,105 ( 61,613 ) ( 15,094 ) Ending balance $ ( 2,469 ) $ — $ ( 466,569 ) $ 754 $ ( 468,284 ) $ ( 406,671 ) |
Reclassifications Out Of Accumulated Other Comprehensive Loss | Amount of Gain (Loss) Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Income Comprehensive Affected Line Item Components Income in the Statement of Income (In thousands) Unrealized gains on investments $ 2,029 Interest income and other financial gains Unrealized gains on hedging activities 6,438 Cost of net revenues Estimated tax gain on unrealized losses on investments ( 2,540 ) Income tax expense Total reclassifications for the year $ 5,927 Total, net of income taxes |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans Receivable, Net [Abstract] | |
Current Loans Receivable, Net | December 31, 2020 2019 (In thousands) Loans receivable $ 458,946 $ 202,489 Allowance for uncollectible accounts ( 73,910 ) ( 20,384 ) Current loans receivable, net $ 385,036 $ 182,105 |
Non Current Loans Receivable, Net | December 31, 2020 2019 (In thousands) Loans receivable $ 20,525 $ 6,499 Allowance for uncollectible accounts ( 3,906 ) ( 60 ) Non current loans receivable, net $ 16,619 $ 6,439 |
Schedule Of Loans Receivable, Net | December 31, 2020 2019 (In thousands) On-line merchant $ 180,063 $ 130,102 Consumer 237,956 60,179 In-store merchant 61,452 18,707 Loans receivable 479,471 208,988 Allowance for uncollectible accounts ( 77,816 ) ( 20,444 ) Loans receivable, net $ 401,655 $ 188,544 |
Schedule Of Credit Quality Analysis Of Loans Receivables | December 31, 2020 2019 (In thousands) 1-30 days past due $ 34,706 $ 20,430 31-60 days past due 16,977 6,916 61 -90 days past due 13,239 7,580 91 -120 days past due 10,632 - 121 -150 days past due 5,315 - 151 -180 days past due 3,649 - Total past due 84,518 34,926 To become due 394,953 174,062 Total $ 479,471 $ 208,988 |
Business Combinations, Goodwi_2
Business Combinations, Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Composition Of Goodwill And Intangible Assets | December 31, 2020 2019 (In thousands) Goodwill $ 85,211 $ 87,609 Intangible assets with indefinite lives - Trademarks 7,751 8,366 Amortizable intangible assets - Licenses and others 4,932 5,320 - Non-compete agreement 3,426 2,703 - Customer list 14,010 13,900 - Trademarks 7,879 4,723 Total intangible assets $ 37,998 $ 35,012 Accumulated amortization ( 23,843 ) ( 20,737 ) Total intangible assets, net $ 14,155 $ 14,275 |
Changes In Carrying Amount Of Goodwill | Year ended December 31, 2020 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 Business Acquisitions — 3,603 1,062 1,241 1,246 748 7,900 Disposals ( 3,480 ) — — — — — ( 3,480 ) Effect of exchange rates changes ( 5,830 ) — ( 1,561 ) 883 ( 168 ) ( 142 ) ( 6,818 ) Balance, end of the year $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Year ended December 31, 2019 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 30,069 $ 6,946 $ 31,340 $ 16,014 $ 3,339 $ 1,175 $ 88,883 Purchase price allocations adjustments — 45 — — — — 45 Effect of exchange rates changes ( 997 ) — 856 ( 1,142 ) ( 27 ) ( 9 ) ( 1,319 ) Balance, end of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 |
Expected Intangible Asset Amortization Expense | For year ended 12/31/2021 $ 3,773 For year ended 12/31/2022 1,264 For year ended 12/31/2023 982 For year ended 12/31/2024 342 Thereafter 43 $ 6,404 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segments [Abstract] | |
Financial Performance Of Company's Reporting Segments | Year Ended December 31, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 2,194,041 $ 980,276 $ 575,173 $ 223,975 $ 3,973,465 Direct costs ( 1,765,981 ) ( 708,661 ) ( 586,022 ) ( 186,435 ) ( 3,247,099 ) Direct contribution 428,060 271,615 ( 10,849 ) 37,540 726,366 Operating expenses and indirect costs of net revenues ( 598,674 ) Income from operations 127,692 Other income (expenses): Interest income and other financial gains 102,767 Interest expense and other financial losses ( 106,690 ) Foreign currency losses ( 42,454 ) Net Income before income tax expense $ 81,315 Year Ended December 31, 2019 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,461,509 $ 456,332 $ 275,133 $ 103,340 $ 2,296,314 Direct costs ( 1,245,382 ) ( 347,733 ) ( 390,158 ) ( 104,975 ) $ ( 2,088,248 ) Direct contribution 216,127 108,599 ( 115,025 ) ( 1,635 ) 208,066 Operating expenses and indirect costs of net revenues ( 361,227 ) Loss from operations ( 153,161 ) Other income (expenses): Interest income and other financial gains 113,523 Interest expense and other financial losses ( 65,876 ) Foreign currency losses ( 1,732 ) Net loss before income tax expense $ ( 107,246 ) 8. Segments (continued) Year Ended December 31, 2018 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 866,175 $ 376,563 $ 109,096 $ 87,819 $ 1,439,653 Direct costs ( 762,636 ) ( 254,539 ) ( 164,637 ) ( 79,581 ) ( 1,261,393 ) Direct contribution 103,539 122,024 ( 55,541 ) 8,238 178,260 Operating expenses and indirect costs of net revenues ( 247,742 ) Loss from operations ( 69,482 ) Other income (expenses): Interest income and other financial gains 42,039 Interest expense and other financial losses ( 56,249 ) Foreign currency gains 18,240 Net loss before income tax gain $ ( 65,452 ) |
Allocation Of Long-Lived Tangible Assets Based On Geography | December 31, 2020 2019 (In thousands) US property and equipment, net $ 586 $ 937 Other countries Argentina 123,589 100,536 Brazil 171,409 103,571 Mexico 73,315 30,131 Other countries 22,785 9,082 $ 391,098 $ 243,320 Total property and equipment, net $ 391,684 $ 244,257 |
Allocation Of Goodwill And Intangible Assets Based On Geography | December 31, 2020 2019 (In thousands) Goodwill and intangible assets Argentina $ 12,617 $ 8,632 Brazil 19,958 30,142 Mexico 35,338 36,003 Chile 24,707 22,237 Other countries 6,746 4,870 Total goodwill and intangible assets $ 99,366 $ 101,884 |
Consolidated Net Revenues By Similar Products And Services | Consolidated Net Revenues 2020 2019 2018 (In thousands) Commerce $ 2,559,770 $ 1,346,445 $ 838,632 Fintech $ 1,413,695 $ 949,869 $ 601,021 Total $ 3,973,465 $ 2,296,314 $ 1,439,653 |
Fair Value Measurement Of Ass_2
Fair Value Measurement Of Assets And Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2020 (Level 1) (Level 2) (Level 3) 2019 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 166,483 $ 166,483 $ — $ — $ 688,760 $ 688,760 $ — $ — Sovereign Debt Securities 37,654 37,654 — — 32,874 32,874 — — Restricted Cash and Cash Equivalents: Money Market Funds 257,695 257,695 — — 32,829 32,829 — — Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 144,249 144,249 — — 29,260 29,260 — — Investments: Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 565,705 565,705 — — 506,175 506,175 — — Sovereign Debt Securities 666,837 666,837 — — 1,161,663 1,161,663 — — Corporate Debt Securities — — — — 236 178 58 — Other Assets: Derivative Instruments 199 — — 199 1,249 — — 1,249 Total Financial Assets $ 1,838,822 $ 1,838,623 $ — $ 199 $ 2,453,046 $ 2,451,739 $ 58 $ 1,249 Liabilities: Contingent considerations $ 4,622 $ — $ — $ 4,622 $ 2,201 $ — $ — $ 2,201 Long-term retention plan 136,816 — 136,816 — 60,958 — 60,958 — Derivative Instruments 13,964 — — 13,964 251 — — 251 Total Financial Liabilities $ 155,402 $ — $ 136,816 $ 18,586 $ 63,410 $ — $ 60,958 $ 2,452 |
Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost | Balances as of Significant other Balances as of Significant other December 31, observable inputs December 31, observable inputs 2020 (Level 2) 2019 (Level 2) (In thousands) Assets Time Deposits $ 158,818 158,818 $ 189,660 $ 189,660 Accounts receivable, net 49,691 49,691 35,446 35,446 Credit Cards receivable and other means of payments, net 863,073 863,073 379,969 379,969 Loans receivable, net 401,655 401,655 188,544 188,544 Other assets 236,432 236,432 149,218 149,218 Total Assets $ 1,709,669 $ 1,709,669 $ 942,837 $ 942,837 Liabilities Accounts payable and accrued expenses $ 767,336 $ 767,336 $ 372,309 $ 372,309 Funds payable to customers and amounts due to merchants 1,733,095 1,733,095 894,057 894,057 Salaries and social security payable 120,394 120,394 67,686 67,686 Taxes payable 215,918 215,918 60,247 60,247 Loans payable and other financial liabilities (*) 1,409,269 1,479,165 817,491 927,903 Other liabilities 110,139 110,139 124,644 124,644 Total Liabilities $ 4,356,151 $ 4,426,047 $ 2,336,434 $ 2,446,846 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 16 . |
Fair Value Of Money Market Funds, Short And Long-Term Investments Classified As Available For Sale Securities | December 31, 2020 Cost Financial Gains Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,483 $ — $ 166,483 Sovereign Debt Securities (1) $ 37,595 $ 59 $ 37,654 Total Cash and cash equivalents $ 204,078 $ 59 $ 204,137 Restricted Cash and cash equivalents Money Market Funds $ 257,695 $ — $ 257,695 Sovereign Debt Securities (1) 144,098 151 144,249 Total Restricted Cash and cash equivalents $ 401,793 $ 151 $ 401,944 Short-term investments Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) (1) $ 559,487 $ 6,218 $ 565,705 Sovereign Debt Securities (1) 514,894 1,889 516,783 Total Short-term investments $ 1,074,381 $ 8,107 $ 1,082,488 Long-term investments Sovereign Debt Securities (1) $ 149,938 $ 116 $ 150,054 Total Long-term investments $ 149,938 $ 116 $ 150,054 Total $ 1,830,190 $ 8,433 $ 1,838,623 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 – Fair value option applied to certain financial instruments. 9. Fair value measurement of assets and liabilities (continued) December 31, 2019 Cost Gross Unrealized Gains (1) Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 688,760 $ — $ — $ — $ 688,760 Sovereign Debt Securities 32,851 — 23 — $ 32,874 Total Cash and cash equivalents $ 721,611 $ — $ 23 $ — $ 721,634 Restricted Cash and cash equivalents Money Market Funds $ 32,829 $ — $ — $ — $ 32,829 Sovereign Debt Securities (2) 29,227 — 33 — $ 29,260 Total Restricted Cash and cash equivalents $ 62,056 $ — $ 33 $ — $ 62,089 Short-term investments Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) (3) $ 504,195 $ — $ 1,980 $ — $ 506,175 Sovereign Debt Securities (4) 898,922 2,080 400 ( 59 ) 901,343 Corporate Debt Securities 63 — — — 63 Total Short-term investments $ 1,403,180 $ 2,080 $ 2,380 $ ( 59 ) $ 1,407,581 Long-term investments Sovereign Debt Securities (5) $ 260,400 $ 2 $ 1 $ ( 83 ) $ 260,320 Corporate Debt Securities 170 3 — — 173 Total Long-term investments $ 260,570 $ 5 $ 1 $ ( 83 ) $ 260,493 Total $ 2,447,417 $ 2,085 $ 2,437 $ ( 142 ) $ 2,451,797 (1) Unrealized gains 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 December 31, 2019. (2) Held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. See Note 16 – Loans payable and other financial liabilities. (3) Brazilian government bonds measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 – Investments - Fair value option applied to certain financial instruments. (4) Includes $ 627,842 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option see Note 2 – Investments - Fair value option applied to certain financial instruments and $ 16,623 thousands held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. See Note 16 – Loans payable and other financial liabilities. (5) Includes $ 260,230 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option. See Note 2 –Investments - Fair value option applied to certain financial instruments. |
Estimated Fair Values Of Cash Equivalents, Short-Term And Long-Term Investments, Effective Maturities | One year or less 1,688,568 One year to two years 150,055 Total $ 1,838,623 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Components Of Pretax Income | Year Ended December 31, 2020 2019 2018 (In thousands) United States $ ( 54,425 ) $ 2,900 $ ( 19,461 ) Brazil 79,453 25,693 ( 38,778 ) Argentina 185,054 61,217 107,913 Mexico ( 133,582 ) ( 168,310 ) ( 91,681 ) Other Countries 4,815 ( 28,746 ) ( 23,445 ) $ 81,315 $ ( 107,246 ) $ ( 65,452 ) |
Summary Of Income / Asset Tax Expense | Year Ended December 31, 2020 2019 2018 (In thousands) Income Tax: Current: U.S. $ — $ 8,705 $ ( 10 ) Non-U.S. 152,337 39,595 64,028 152,337 48,300 64,018 Deferred: U.S. ( 5,397 ) ( 13,566 ) ( 3,618 ) Non-U.S. ( 64,918 ) 30,019 ( 89,267 ) ( 70,315 ) 16,453 ( 92,885 ) Income tax expense (gain) 82,022 64,753 ( 28,867 ) |
Reconciliation Of Difference Between Actual Provision For Income Taxes And Provision Computed By Applying Income Tax Rate | Year Ended December 31, 2020 2019 2018 (In thousands) Net income (loss) before income tax $ 81,315 $ ( 107,246 ) $ ( 65,452 ) Income tax rate 21 % 21 % 21 % Expected income tax gain (expense) $ 17,076 $ ( 22,522 ) $ ( 13,745 ) Permanent differences: Federal and assets taxes 146 203 7 Transfer pricing adjustments 1,243 1,161 1,818 Non-deductible tax 2,641 683 1,043 Non-deductible expenses 17,885 9,309 6,982 Dividend distributions 9,381 2,594 1,085 Non-taxable income ( 3,741 ) ( 15,418 ) ( 31,562 ) Effect of rates different than statutory ( 3,713 ) ( 11,521 ) 3,020 Currency translation 11,775 ( 4,201 ) 3,866 Change in valuation allowance 40,874 113,426 3,130 Argentine tax reform (including changes in income tax rate) — ( 2,175 ) 1,217 Colombian tax reform — — 442 Deferred tax reversed by merger — — ( 3,994 ) Exchange of convertible note — — ( 1,756 ) Tax Inflation Adjustments ( 7,023 ) ( 4,940 ) — Deferred tax reversed by spin-off — ( 886 ) — True up ( 4,522 ) ( 960 ) ( 420 ) Income tax expense (gain) $ 82,022 $ 64,753 $ ( 28,867 ) |
Composition Of Deferred Tax Assets And Liabilities | December 31, 2020 2019 (In thousands) Deferred tax assets Allowance for doubtful accounts $ 17,963 $ 7,601 Unrealized net gains on investments 2,423 92 Property and equipment, net 15,594 5,467 Accounts payable and accrued expenses 5,009 2,202 Payroll and social security payable 23,516 10,255 Foreign exchange effect 5,399 1,846 Taxes payable 4,843 984 Non compete agreement — 155 Provisions and non-deductible interest 70,425 40,593 Foreign tax credit 17,513 12,841 Tax loss carryforwards 162,008 167,420 Customer Lists — 220 Inventories 322 — Trademarks — 24 Tax inflation adjustments 8,460 6,757 Total deferred tax assets 333,475 256,457 Valuation allowance ( 179,177 ) ( 138,875 ) Total deferred tax assets, net 154,298 117,582 Deferred tax liabilities Property and equipment, net ( 5,771 ) ( 26,761 ) Customer lists ( 713 ) ( 1,043 ) Non compete agreement ( 743 ) — Unrealized net losses on investments ( 121 ) ( 1,160 ) Trademarks ( 86 ) ( 87 ) Goodwill ( 2,962 ) ( 4,392 ) Convertible notes and Capped Call ( 57,813 ) ( 63,258 ) Accounts payable and accrued expenses ( 1,783 ) ( 1,914 ) Payroll and social security payable ( 5,527 ) ( 313 ) Outside Basis Dividends ( 5,974 ) — Provisions ( 2,143 ) ( 884 ) Non Solicitation Agreement — ( 137 ) Foreign exchange effect ( 100 ) ( 3 ) Total deferred tax liabilities $ ( 83,736 ) $ ( 99,952 ) |
Tax Loss Carryforwards | 2023 $ 1,426 2024 512 2025 2,282 2026 4,238 2027 20,620 Thereafter 103,461 Without due dates 29,469 Total $ 162,008 |
Long Term Retention Plan (Table
Long Term Retention Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Retention Plan [Abstract] | |
Outstanding Long Term Retention Plans | December 31, 2020 December 31, 2019 December 31, 2018 Weighted-average Weighted-average Weighted-average Aggregate remaining Aggregate remaining Aggregate remaining Intrinsic contractual Intrinsic contractual Intrinsic contractual value life (years) value life (years) value life (years) (In thousands) Outstanding LTRP 2011 — — — — 1,738 0.25 Outstanding LTRP 2012 — — 2,861 0.25 3,460 0.75 Outstanding LTRP 2013 — — — — 4,318 0.25 Outstanding LTRP 2014 — — 5,086 0.25 6,037 0.75 Outstanding LTRP 2015 13,237 0.08 10,484 0.75 9,398 1.25 Outstanding LTRP 2016 34,795 0.62 19,091 1.25 15,343 1.75 Outstanding LTRP 2017 41,315 1.13 19,654 1.75 14,860 2.25 Outstanding LTRP 2018 23,233 1.64 10,727 2.25 8,135 2.88 Outstanding LTRP 2019 133,052 2.14 56,322 2.75 — — Outstanding LTRP 2020 153,113 2.67 — — — — |
Long Term Retention Plans Accrued Compensation Expense | Year ended December 31, 2020 2019 2018 (In thousands) LTRP 2010 — — 24 LTRP 2011 — 26 766 LTRP 2012 69 1,755 1,398 LTRP 2013 — 97 2,416 LTRP 2014 125 3,743 2,921 LTRP 2015 10,025 6,266 3,984 LTRP 2016 23,152 9,838 5,975 LTRP 2017 25,267 9,737 6,639 LTRP 2018 12,268 5,089 3,402 LTRP 2019 28,523 15,111 — LTRP 2020 30,146 — — $ 129,575 $ 51,662 $ 27,525 |
Loans Payable And Other Finan_2
Loans Payable And Other Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Summary Of Loans Payable And Other Financial Liabilities | Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity December 31, 2020 December 31, 2019 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 1.44 % January 2021 $ 92,895 $ 38,780 Brazilian Subsidiary Brazilian Reais Variable CDI + 3.35 % March 2021 70,267 - Brazilian Subsidiary Brazilian Reais Variable CDI + 3.25 % May 2021 42,693 - Brazilian Subsidiary Brazilian Reais Variable CDI + 2.10 % June 2021 29,218 - Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % April 2021 18,418 - Argentine Subsidiary Argentine Pesos Fixed 37.75 % May 2021 14,400 - Uruguayan Subsidiary Uruguayan Pesos Fixed 6.71 % February - March 2021 13,406 - Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 34.16 % January 2021 18,311 49,499 Brazilian Subsidiary (*) Brazilian Reais Variable CDI + 0.55 % July 2021 58,437 - Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 7.81 % January 2021 20,055 16,435 Argentine Subsidiary Argentine Pesos Fixed 37.21 % January - February 2021 116,140 9,645 Chilean Subsidiary Chilean Pesos - - % - - 1,951 Convertible notes 6,649 6,649 Finance lease obligations 7,394 2,008 Credit card collateralized debt 12,920 17,309 Collateralized debt 25,342 43,862 Other lines of credit 1,848 - $ 548,393 $ 186,138 Non Current loans payable and other financial liabilities: Convertible notes 595,800 569,305 Finance lease obligations 16,261 7,368 Collateralized debt 248,815 54,680 $ 860,876 $ 631,353 (*) Under the terms of the loan agreement, the Company transferred U.S. treasury notes to an account owned by the Company but under the sole control and dominion of the escrow agent as collateral. This collateral is shown in short-term investments and its coupon payment in Restricted cash and cash equivalents of the consolidated balance sheet, respectively. |
2028 Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Carrying Amounts Of Liability And Equity Components | December 31, 2020 2019 (In thousands) Amount of the equity component (1) $ 327,305 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 879,993 $ 880,000 Unamortized debt discount (2) ( 275,299 ) ( 301,227 ) Unamortized transaction costs related to the debt component ( 8,894 ) ( 9,468 ) Contractual coupon interest accrual 41,409 23,809 Contractual coupon interest payment ( 34,760 ) ( 17,160 ) Net carrying amount $ 602,449 $ 575,954 (1) Net of $ 6,163 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of December 31, 2020, the remaining period over which the unamortized debt discount will be amortized is 7.7 years. |
Summary Of Interest Expense For Contractual Interest And Accretion Of Debt Discount | Year ended December 31, 2020 2019 (In thousands) Contractual coupon interest expense $ 17,600 $ 17,942 Amortization of debt discount 25,929 24,556 Amortization of debt issuance costs 574 490 Total interest expense related to the 2028 Notes $ 44,103 $ 42,988 |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Summary Of Valuation And Qualifying Accounts | Charges Utilized/ Balance at beginning of Adoption of ASC 326 (1) Charged/credited to Net Currency translation adjustments/ Balance at end of year loss Write-offs and other adjustments year (In thousands) Allowance for doubtful accounts Year ended December 31, 2018 9,821 — 10,968 ( 12,087 ) 8,702 Year ended December 31, 2019 8,702 — 5,520 ( 7,897 ) 6,325 Year ended December 31, 2020 6,325 — 5,683 ( 4,714 ) 7,294 Credit cards receivable and other means of payments allowance for chargebacks Year ended December 31, 2018 5,184 — 9,199 ( 6,310 ) 8,073 Year ended December 31, 2019 8,073 — 15,673 ( 12,436 ) 11,310 Year ended December 31, 2020 11,310 — 53,662 ( 47,284 ) 17,688 Credit cards receivable and other means of payments allowance for doubtful accounts Year ended December 31, 2020 (2) — — 36,236 ( 12,373 ) 23,863 Loans receivable allowance for uncollectible accounts Year ended December 31, 2018 (3) 4,730 — 27,725 ( 25,819 ) 6,636 Year ended December 31, 2019 (3) 6,636 — 64,341 ( 50,533 ) 20,444 Year ended December 31, 2020 20,444 4,977 91,025 ( 38,630 ) 77,816 Tax valuation allowance Year ended December 31, 2018 15,422 — 3,130 ( 2,828 ) 15,724 Year ended December 31, 2019 15,724 — 113,426 9,725 138,875 Year ended December 31, 2020 138,875 — 40,874 ( 572 ) 179,177 Contingencies Year ended December 31, 2018 5,902 — 7,969 ( 8,058 ) 5,813 Year ended December 31, 2019 5,813 — 10,978 ( 8,819 ) 7,972 Year ended December 31, 2020 7,972 — 3,123 ( 166 ) 10,929 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020. (2) No amounts recorded as of December 31, 2019 and 2018. (3) The comparative information has not been restated and continues to be reported under the accounting standard in effect during 2019 and 2018. |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Consolidated Quarterly Financial Information | Quarter Ended March 31, June 30, September 30, December 31, (In thousands, except for share data) 2020 Net Revenues $ 652,091 $ 878,369 $ 1,115,701 $ 1,327,304 Gross profit 312,814 427,172 480,190 489,034 Net (loss) Income ( 21,109 ) 55,947 15,035 ( 50,580 ) Net (loss) Income per share-basic ( 0.44 ) 1.11 0.28 ( 1.02 ) Net (loss) Income per share-diluted ( 0.44 ) 1.11 0.28 ( 1.02 ) Weighted average shares Basic 49,709,955 49,709,973 49,720,854 49,820,185 Diluted 49,709,955 49,709,973 49,720,854 49,820,185 2019 Net Revenues $ 473,770 $ 545,242 $ 603,031 $ 674,271 Gross profit 237,004 272,430 284,342 308,347 Net Income (loss) 11,864 16,217 ( 146,082 ) ( 53,998 ) Net Income (loss) per share-basic 0.13 0.31 ( 2.96 ) ( 1.11 ) Net Income (loss) per share-diluted 0.13 0.31 ( 2.96 ) ( 1.11 ) Weighted average shares Basic 45,980,255 49,318,522 49,710,723 49,709,955 Diluted 45,980,255 49,318,522 49,710,723 49,709,955 2018 Net Revenues $ 320,976 $ 335,377 $ 355,281 $ 428,019 Gross profit 162,758 159,749 169,718 204,783 Net loss ( 12,919 ) ( 11,251 ) ( 10,078 ) ( 2,337 ) Net loss per share-basic ( 0.29 ) ( 0.25 ) ( 0.23 ) ( 0.05 ) Net loss per share-diluted ( 0.29 ) ( 0.25 ) ( 0.23 ) ( 0.05 ) Weighted average shares Basic 44,157,364 44,157,364 44,588,704 45,202,859 Diluted 44,157,364 44,157,364 44,588,704 45,202,859 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Securitization Transactions [Abstract] | |
Collateralized Debt | SPEs Collateralized debt as of December 31, 2020 Interest rate Currency Maturity Mercado Crédito Merchant Fundo de Investimento em Direitos Creditórios 4,839 DI plus 3.5 % Brazilian Reais June 2021 Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 32,588 DI plus 2.5 % Brazilian Reais November 2023 Fundo de Investimento Em DireitosCreditórios Arandu 189,768 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Consumo II 5,989 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos July 2021 Mercado Crédito VII 1,754 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos March 2021 Mercado Crédito VIII 5,678 Badlar rates plus 200 basis points with a min 29 % and a max 39 % Argentine Pesos July 2021 Mercado Crédito Consumo III 6,834 Badlar rates plus 200 basis points with a min 29 % and a max 41 % Argentine Pesos August 2021 Fideicomiso de administración y fuente de pago CIB/3369 26,707 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.34 % Mexican Pesos November 2022 |
Assets And Liabilities Of The Trust | December 31, 2020 2019 Assets (in thousands) Current assets: Restricted cash and cash equivalents $ 249,872 $ 37,424 Loans receivable, net 113,846 104,419 Total current assets 363,718 141,843 Loans receivable, net 9,581 4,395 Total non-current assets 9,581 4,395 Total assets $ 373,299 $ 146,238 Liabilities Current liabilities: Accounts payable and accrued expenses $ 100 $ 128 Loans payable and other financial liabilities 25,342 43,862 Total current liabilities 25,442 43,990 Non-current liabilities: Loans payable and other financial liabilities 248,815 54,680 Total non-current liabilities 248,815 54,680 Total liabilities $ 274,257 $ 98,670 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | December 31, 2020 2019 Operating Leases (In thousands) Operating lease right-of-use assets $ 303,214 $ 200,449 Operating lease liabilities $ 298,847 $ 199,932 Finance Leases Property and equipment, at cost 29,798 10,952 Accumulated depreciation ( 4,086 ) ( 1,563 ) Property and equipment, net $ 25,712 $ 9,389 Loans payable and other financial liabilities $ 23,655 $ 9,376 |
Summary Of Weighted Average Remaining Lease Term And Discount Rate | Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 9 % Finance leases 11 % (*) Includes discount rates of leases in local currency and U.S dollar. |
Components Of Lease Expense | Year ended December 31, 2020 2019 (In thousands) Operating lease cost $ 42,508 $ 29,515 Finance lease cost: Depreciation of property and equipment 2,474 1,514 Interest on lease liabilities 2,813 1,798 Total finance lease cost $ 5,287 $ 3,312 |
Supplemental Cash Flow Information Related To Leases | Year ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 40,339 $ 25,381 Financing cash flows from finance leases 4,949 1,929 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 137,679 $ 93,160 Finance leases 17,177 4,496 |
Maturities Of Lease Liabilities | Period Ending December 31, 2020 Operating Leases Finance Leases (In thousands) One year or less $ 58,651 $ 8,833 One year to two years 58,860 7,638 Two years to three years 56,355 6,934 Three years to four years 54,167 4,717 Four years to five years 45,096 1,162 Thereafter 120,892 — Total lease payments $ 394,021 $ 29,284 Less imputed interest ( 95,174 ) ( 5,629 ) Total $ 298,847 $ 23,655 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Summary Of Outstanding Derivative Instruments | December 31, Balance sheet location 2020 2019 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 199 $ 1,249 Foreign exchange contracts not designated as hedging instruments Other current liabilities 11,106 — Foreign exchange contracts designated as cash flow hedges Other current liabilities 2,858 251 |
Effect Of Derivative Contracts | Amount of Amount of gain reclassified December 31, Gain (Loss) recognized from accumulated December 31, 2019 in other comprehensive loss other comprehensive loss (income) 2020 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 250 ) $ 4,219 $ ( 6,438 ) $ ( 2,469 ) |
Fair Value Of Derivative Instruments | Year ended December 31, 2020 2019 (In thousands) Foreign exchange contracts not designated as hedging instruments $ 1,935 $ 301 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer$ / sharesshares | Dec. 31, 2018USD ($)customer$ / shares | Feb. 26, 2021 | Jan. 31, 2021USD ($) | Mar. 29, 2019USD ($)$ / sharesshares | Aug. 31, 2018USD ($) | Aug. 24, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2014USD ($) | ||
Significant Accounting Policies [Line Items] | |||||||||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 490,464,000 | $ 345,204,000 | |||||||||
Deferred Revenue | $ 32,519,000 | 16,590,000 | $ 5,918,000 | ||||||||
Percentage on relief of total income tax | 60.00% | ||||||||||
Percentage on relief of payroll tax | 70.00% | ||||||||||
Recognized gains in interest income and other financial gains | $ 8,433,000 | 2,295,000 | |||||||||
Stockholders' Equity Attributable to Parent | 1,651,578,000 | 1,983,120,000 | 336,700,000 | $ 325,779,000 | |||||||
Allowance for doubtful accounts, loan receivables and chargebacks | 77,816,000 | 20,444,000 | |||||||||
Comprehensive loss | 62,320,000 | 187,093,000 | 145,311,000 | ||||||||
Allowance for doubtful accounts, loan receivables and chargebacks | 126,661,000 | 38,079,000 | |||||||||
Deferred tax liability | 83,736,000 | 99,952,000 | |||||||||
Foreign currency (losses) gains | (42,454,000) | (1,732,000) | 18,240,000 | ||||||||
Loss on doubtful accounts | 27,006,000 | ||||||||||
Credit loss recognized on cash, cash equivalents and restricted cash and cash equivalents | 0 | 0 | 0 | ||||||||
Recognized other-than-temporary impairment on investments | 0 | 0 | 0 | ||||||||
Pre-tax gain recognized on sale of credit card coupons | $ 452,892,000 | 359,037,000 | 258,595,000 | ||||||||
Amortized period, years | 3 years | ||||||||||
Company capitalization | $ 119,491,000 | 59,602,000 | |||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | 0 | ||||||||
Goodwill, impairment loss | 0 | 0 | 0 | ||||||||
Cost of revenue sales tax | 325,316,000 | $ 189,313,000 | 139,433,000 | ||||||||
Redeemable convertible preferred stock, Shares Issued | shares | 100,000 | 100,000 | |||||||||
Redeemable convertible preferred stock, Par Value | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Redeemable convertible preferred stock aggregate | $ 100,000,000 | ||||||||||
Preferred Stock, Embedded Beneficial Conversion feature | $ 5,841,000 | ||||||||||
Debt instrument, face amount | $ 1,100,000,000 | ||||||||||
Retained Earnings [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Stockholders' Equity Attributable to Parent | $ 314,115,000 | $ 322,592,000 | $ 503,432,000 | $ 537,925,000 | |||||||
Accounting Standards Update 2016-13 [Member] | Restatement Adjustment [Member] | Retained Earnings [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Stockholders' Equity Attributable to Parent | $ 4,570,000 | ||||||||||
Maximum [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Merchant credit, repayment period | 24 months | ||||||||||
Amortized period, years | 10 years | ||||||||||
Maximum [Member] | Measurement Input, Discount Rate [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Measurement input | 21.00% | ||||||||||
Minimum [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Merchant credit, repayment period | 3 months | ||||||||||
Amortized period, years | 3 years | ||||||||||
Minimum [Member] | Measurement Input, Discount Rate [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Measurement input | 15.10% | ||||||||||
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Measurement input | 17.20% | ||||||||||
Revenue Benchmark [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Number of customers across risk threshold | customer | 0 | 0 | 0 | ||||||||
Benchmark for significant customers | 5.00% | 5.00% | 5.00% | ||||||||
Accounts Receivable [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Number of customers across risk threshold | customer | 0 | 0 | |||||||||
Benchmark for significant customers | 5.00% | 5.00% | |||||||||
Convertible Senior Notes [Member] | Initial Issuance - 2028 Convertible Senior Notes [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 333,468,000 | ||||||||||
Amount of the debt component | $ 546,532,000 | ||||||||||
Market rate for non-convertible debt | 7.44% | ||||||||||
Effective interest rate | 7.66% | ||||||||||
Deferred tax liability | $ 70,028,000 | ||||||||||
Debt instrument, face amount | $ 800,000,000 | $ 800,000,000 | |||||||||
Convertible senior notes, interest rate | 2.00% | 2.00% | |||||||||
Convertible Senior Notes [Member] | Additional Issuance - 2028 Convertible Senior Notes [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Debt instrument, face amount | $ 80,000,000 | $ 80,000,000 | |||||||||
Convertible Senior Notes [Member] | 2019 Convertible Senior Notes [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Debt instrument, face amount | $ 330,000,000 | ||||||||||
Convertible senior notes, interest rate | 2.25% | ||||||||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 327,305,000 | $ 327,305,000 | |||||||||
Debt instrument, face amount | $ 880,000,000 | $ 880,000,000 | $ 880,000,000 | ||||||||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |||||||
Argentina [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Foreign exchange rate | 84.15 | 89.82 | |||||||||
New Software Development Law [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Software development law audit fees | $ 1,398,000 | $ 1,875,000 | |||||||||
Aggregate per share effect of the Argentine tax holiday | $ / shares | $ 0.25 | $ 0.45 | |||||||||
Labor cost benefit | $ 7,970,000 | $ 6,801,000 | |||||||||
Income tax gain | 12,007,000 | $ 19,988,000 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Stockholders' Equity Attributable to Parent | (4,570,000) | ||||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Stockholders' Equity Attributable to Parent | $ (4,570,000) | ||||||||||
Land & Building [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful life (years) | [1] | 50 years | |||||||||
[1] | Estimated useful life attributable to “Buildings” |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Assets, Liabilities And Net Assets Of Company's Argentinean Subsidiaries) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 6,526,332 | $ 4,781,691 |
Liabilities | 4,874,754 | 2,699,728 |
Argentinean Subsidiaries [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 1,470,885 | 805,605 |
Liabilities | 1,230,326 | 580,402 |
Net Assets | $ 240,559 | $ 225,203 |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Aug. 24, 2018 | Jun. 30, 2014 |
Debt Instrument [Line Items] | ||||||
Convertible senior notes, issued | $ 1,100,000,000 | |||||
Convertible Senior Notes [Member] | 2019 Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible senior notes, issued | $ 330,000,000 | |||||
Convertible senior notes, interest rate | 2.25% | |||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible senior notes, issued | $ 880,000,000 | $ 880,000,000 | $ 880,000,000 | |||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% |
Net Loss Per Share (Net (Loss)
Net Loss Per Share (Net (Loss) Income Per Share Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income attributable to MercadoLibre, Inc. per common share | |||||||||||||||
Net loss per common share, Basic | $ (1.02) | $ 0.28 | $ 1.11 | $ (0.44) | $ (1.11) | $ (2.96) | $ 0.31 | $ 0.13 | $ (0.05) | $ (0.23) | $ (0.25) | $ (0.29) | $ (0.08) | $ (3.71) | $ (0.82) |
Net loss per common share, Diluted | $ (1.02) | $ 0.28 | $ 1.11 | $ (0.44) | $ (1.11) | $ (2.96) | $ 0.31 | $ 0.13 | $ (0.05) | $ (0.23) | $ (0.25) | $ (0.29) | $ (0.08) | $ (3.71) | $ (0.82) |
Numerator: | |||||||||||||||
Net loss | $ (50,580) | $ 15,035 | $ 55,947 | $ (21,109) | $ (53,998) | $ (146,082) | $ 16,217 | $ 11,864 | $ (2,337) | $ (10,078) | $ (11,251) | $ (12,919) | $ (707) | $ (171,999) | $ (36,585) |
Amortization of redeemable convertible preferred stock | (5,841) | ||||||||||||||
Dividends on preferred stock | (3,200) | (3,000) | |||||||||||||
Net income corresponding to common stock, Basic | (3,907) | (180,840) | (36,585) | ||||||||||||
Net income corresponding to common stock, Diluted | $ (3,907) | $ (180,840) | $ (36,585) | ||||||||||||
Denominator: | |||||||||||||||
Weighted average of common stock outstanding for Basic earnings per share | 49,820,185 | 49,720,854 | 49,709,973 | 49,709,955 | 49,709,955 | 49,710,723 | 49,318,522 | 45,980,255 | 45,202,859 | 44,588,704 | 44,157,364 | 44,157,364 | 49,740,407 | 48,692,906 | 44,529,614 |
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 49,820,185 | 49,720,854 | 49,709,973 | 49,709,955 | 49,709,955 | 49,710,723 | 49,318,522 | 45,980,255 | 45,202,859 | 44,588,704 | 44,157,364 | 44,157,364 | 49,740,407 | 48,692,906 | 44,529,614 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 651,830,000 | $ 66,684,000 |
Short term investments and cash | 2,460,751,000 | |
Held-to-maturity Securities | 0 | $ 0 |
Bank Account (Argentine Central Bank Regulation) [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | $ 237,511,000 | |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Percent of electronic funds | 100.00% | 100.00% |
Short term investments and cash | $ 709,954,000 | $ 506,175,000 |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | $ 1,856,394 | $ 1,384,740 | ||||
Restricted cash and cash equivalents | 651,830 | 66,684 | ||||
Total cash, cash equivalents, restricted cash and cash equivalents | 2,508,224 | [1] | 1,451,424 | [1] | $ 464,695 | $ 388,260 |
Short-term Investments | 1,241,306 | 1,597,241 | ||||
Long-term Investments | 166,111 | 263,983 | ||||
Time Deposits [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 158,818 | 189,660 | ||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 565,705 | 506,175 | ||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 71,244 | 16,623 | ||||
Sovereign Debt Securities [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 445,539 | 884,720 | ||||
Long-term Investments | 150,054 | 260,320 | ||||
Corporate Debt Securities [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 63 | |||||
Long-term Investments | 173 | |||||
Other Investments [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Long-term Investments | 16,057 | 3,490 | ||||
Securitization Transactions [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 249,872 | 37,424 | ||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | $ 29,260 | |||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 144,249 | |||||
Bank Account (Argentine Central Bank Regulation) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 237,511 | |||||
Bank Collateral Account (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 574 | |||||
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 19,469 | |||||
Cash In Bank Account [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | $ 155 | |||||
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule Of Accounts Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 56,985 | $ 41,771 |
Allowance for doubtful accounts | (7,294) | (6,325) |
Accounts Receivable, Net, Current, Total | 49,691 | 35,446 |
Users [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 42,012 | 27,340 |
Advertising [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 11,185 | 9,452 |
Others Debtors [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $ 3,788 | $ 4,979 |
Balance Sheet Components (Sch_2
Balance Sheet Components (Schedule Of Credit Card Receivables And Other Means Of Payments, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Credit cards and other means of payments | $ 904,624 | $ 391,279 |
Allowance for chargebacks | (17,688) | (11,310) |
Allowance for doubtful accounts | (23,863) | |
Credit card receivables and other means of payments, net | $ 863,073 | $ 379,969 |
Balance Sheet Components (Sch_3
Balance Sheet Components (Schedule Of Current Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Other Assets [Line Items] | ||
Other current assets | $ 152,959 | $ 88,736 |
VAT Credits [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | 11,555 | 16,997 |
Income Tax Credits [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | 48,876 | 57,844 |
Sales Tax Credits [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | 18,107 | 442 |
Advance To ATM Providers [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | 37,498 | |
Advance To Suppliers [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | 21,520 | |
Other [Member] | ||
Current Other Assets [Line Items] | ||
Other current assets | $ 15,403 | $ 13,453 |
Balance Sheet Components (Sch_4
Balance Sheet Components (Schedule Of Noncurrent Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-Current Other Assets [Line Items] | ||
Non current other assets | $ 67,615 | $ 58,241 |
Judicial Deposits [Member] | ||
Non-Current Other Assets [Line Items] | ||
Non current other assets | 57,525 | 51,364 |
Other, Noncurrent [Member] | ||
Non-Current Other Assets [Line Items] | ||
Non current other assets | $ 10,090 | $ 6,877 |
Balance Sheet Components (Sch_5
Balance Sheet Components (Schedule Of Property And Equipment, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $ 644,906 | $ 432,256 | |
Accumulated depreciation | (253,222) | (187,999) | |
Property and equipment, net | 391,684 | 244,257 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | 113,669 | 83,961 | |
Land & Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $ 96,974 | 80,832 | |
Estimated useful life (years) | [1] | 50 years | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $ 134,999 | 83,810 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $ 282,066 | 179,211 | |
Estimated useful life (years) | 3 years | ||
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Gross | $ 17,198 | $ 4,442 | |
Estimated useful life (years) | 4 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (years) | 3 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (years) | 3 years | ||
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (years) | 5 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (years) | 10 years | ||
[1] | Estimated useful life attributable to “Buildings” |
Balance Sheet Components (Sch_6
Balance Sheet Components (Schedule Of Depreciation And Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation And Amortization [Line Items] | |||
Depreciation and amortization | $ 81,296 | $ 59,386 | $ 45,792 |
Cost of Net Revenues [Member] | |||
Depreciation And Amortization [Line Items] | |||
Depreciation and amortization | 15,902 | 8,873 | 4,332 |
Product and Technology Development [Member] | |||
Depreciation And Amortization [Line Items] | |||
Depreciation and amortization | 53,530 | 40,920 | 31,852 |
Sales and Marketing [Member] | |||
Depreciation And Amortization [Line Items] | |||
Depreciation and amortization | 1,776 | 2,076 | 1,643 |
General and Administrative [Member] | |||
Depreciation And Amortization [Line Items] | |||
Depreciation and amortization | $ 10,088 | $ 7,517 | $ 7,965 |
Balance Sheet Components (Sch_7
Balance Sheet Components (Schedule Of Accounts Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | $ 767,336 | $ 372,309 |
Accounts Payable [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 728,056 | 331,140 |
Advertising [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 24,135 | 33,118 |
Buyer Protection Program Provision [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 8,364 | 3,808 |
Professional Fee [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | 5,415 | 2,485 |
Other Expense Provisions [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable and accrued expenses | $ 1,366 | $ 1,758 |
Balance Sheet Components (Sch_8
Balance Sheet Components (Schedule Of Funds Payable To Customers And Amounts Due To Merchants) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Funds payable to customers and amounts due to merchants | $ 1,733,095 | $ 894,057 |
Funds Payable To Customers [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Funds payable to customers and amounts due to merchants | 1,695,424 | $ 894,057 |
Amounts Due To Merchants [Member] | ||
Accounts Payable And Accrued Expenses [Line Items] | ||
Funds payable to customers and amounts due to merchants | $ 37,671 |
Balance Sheet Components (Sch_9
Balance Sheet Components (Schedule Of Current Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Other Liabilities [Line Items] | ||
Current other liabilities | $ 108,534 | $ 114,469 |
Advanced Collections [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 15,041 | 81,045 |
Deferred Revenue [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 32,519 | 16,590 |
Provisions and Contingencies [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 5,123 | |
Contingent Considerations And Escrows From Acquisitions [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 4,540 | 792 |
Customer Advances [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 39,054 | 9,621 |
Derivative Instruments [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | 13,964 | 251 |
Other Current Liabilities [Member] | ||
Current Other Liabilities [Line Items] | ||
Current other liabilities | $ 3,416 | $ 1,047 |
Balance Sheet Components (Sc_10
Balance Sheet Components (Schedule Of Noncurrent Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-Current Other Liabilities [Line Items] | ||
Non current other liabilities | $ 20,191 | $ 12,627 |
Provisions and Contingencies [Member] | ||
Non-Current Other Liabilities [Line Items] | ||
Non current other liabilities | 10,929 | 7,972 |
Contingent Considerations And Escrows From Acquisitions [Member] | ||
Non-Current Other Liabilities [Line Items] | ||
Non current other liabilities | 3,291 | 4,470 |
Other [Member] | ||
Non-Current Other Liabilities [Line Items] | ||
Non current other liabilities | $ 5,971 | $ 185 |
Balance Sheet Components (Sc_11
Balance Sheet Components (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Components [Abstract] | |||
Foreign currency translation | $ (466,569) | $ (408,099) | $ (394,306) |
Unrealized gains on investments | 2,029 | 3,345 | |
Estimated tax loss on unrealized gains (loss) | 754 | (351) | (616) |
Unrealized losses on hedging activities | (2,469) | (250) | |
Accumulated other comprehensive loss | $ (468,284) | $ (406,671) | $ (391,577) |
Balance Sheet Components (Summa
Balance Sheet Components (Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning Balance | $ 1,983,120 | $ 336,700 | $ 325,779 |
Net change in accumulated other comprehensive loss, net of income tax | (61,613) | (15,094) | (108,726) |
Ending Balance | 1,651,578 | 1,983,120 | 336,700 |
Unrealized (Losses) Gains on Hedging Activities, Net [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, before tax | (250) | ||
Other comprehensive (loss) income before reclassifications, before tax | 4,219 | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, before tax | (6,438) | ||
Net current period other comprehensive (loss) income, before tax | (2,219) | ||
Ending balance, before tax | (2,469) | (250) | |
Unrealized Gains (Losses) on Investments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, before tax | 2,029 | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, before tax | (2,029) | ||
Net current period other comprehensive (loss) income, before tax | (2,029) | ||
Ending balance, before tax | 2,029 | ||
Foreign Currency Translation [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, before tax | (408,099) | ||
Other comprehensive (loss) income before reclassifications, before tax | (58,470) | ||
Net current period other comprehensive (loss) income, before tax | (58,470) | ||
Ending balance, before tax | (466,569) | (408,099) | |
Accumulated Other Comprehensive Loss [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, Estimated tax (expense) benefit | (351) | ||
Other comprehensive (loss) income before reclassifications, Estimated tax (expense) benefit | (1,435) | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, Estimated tax (expense) benefit | (2,540) | ||
Net current period other comprehensive income (loss), Estimated tax (expense) benefit | 1,105 | ||
Ending balance, Estimated tax (expense) benefit | 754 | (351) | |
Beginning Balance | (406,671) | (391,577) | (282,851) |
Other comprehensive (loss) income before reclassifications, net tax | (55,686) | (12,365) | |
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, net of tax | (5,927) | (2,729) | |
Net change in accumulated other comprehensive loss, net of income tax | (61,613) | (15,094) | |
Ending Balance | $ (468,284) | $ (406,671) | $ (391,577) |
Balance Sheet Components (Recla
Balance Sheet Components (Reclassifications Out Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Unrealized gains on investments | $ 102,767 | $ 113,523 | $ 42,039 | ||||||||||||
Income tax loss | (82,022) | (64,753) | 28,867 | ||||||||||||
Net loss | $ (50,580) | $ 15,035 | $ 55,947 | $ (21,109) | $ (53,998) | $ (146,082) | $ 16,217 | $ 11,864 | $ (2,337) | $ (10,078) | $ (11,251) | $ (12,919) | (707) | $ (171,999) | $ (36,585) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Investments [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Unrealized gains on investments | 2,029 | ||||||||||||||
Income tax loss | (2,540) | ||||||||||||||
Net loss | 5,927 | ||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income [Member] | Unrealized (Loss) Gains on Hedging Activities [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Cost of net revenues | $ 6,438 |
Loans Receivable, Net (Current
Loans Receivable, Net (Current Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans Receivable, Net [Abstract] | ||
Loans receivable | $ 458,946 | $ 202,489 |
Allowance for uncollectible accounts | (73,910) | (20,384) |
Current loans receivable, net | $ 385,036 | $ 182,105 |
Loans Receivable, Net (Non Curr
Loans Receivable, Net (Non Current Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans Receivable, Net [Abstract] | ||
Loans receivable | $ 20,525 | $ 6,499 |
Allowance for uncollectible accounts | (3,906) | (60) |
Net current loans receivable, net | $ 16,619 | $ 6,439 |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary Of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 479,471 | $ 208,988 |
Allowance for uncollectible accounts | (77,816) | (20,444) |
Loans receivables, net | 401,655 | 188,544 |
On-line Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 180,063 | 130,102 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 237,956 | 60,179 |
In-Store Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 61,452 | $ 18,707 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule Of Credit Quality Analysis Of Loans Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 84,518 | $ 34,926 |
To become due | 394,953 | 174,062 |
Total | 479,471 | 208,988 |
1-30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 34,706 | 20,430 |
31-60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 16,977 | 6,916 |
61-90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 13,239 | $ 7,580 |
91 To 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 10,632 | |
121 To 150 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | 5,315 | |
151 To 180 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due | $ 3,649 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 10 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||
Aggregate amortization expense for intangible assets | $ 5,293 | $ 3,912 | $ 6,102 | ||
Kiserty S.A. [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of acquisition | 100.00% | ||||
Aggregate purchase price for acquisition | $ 10,899 | ||||
Business acquisition, cash paid | 8,500 | ||||
Amount in escrow account | 225 | ||||
Additional contingent consideration | $ 2,174 | ||||
Net income (loss) | $ 820 |
Business Combinations, Goodwi_4
Business Combinations, Goodwill And Intangible Assets (Composition Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 85,211 | $ 87,609 | $ 88,883 |
Total intangible assets | 37,998 | 35,012 | |
Accumulated amortization | (23,843) | (20,737) | |
Total intangible assets, net | 14,155 | 14,275 | |
Licenses and Others [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 4,932 | 5,320 | |
Non-Compete Agreement [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 3,426 | 2,703 | |
Customer Lists [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 14,010 | 13,900 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 7,879 | 4,723 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives | $ 7,751 | $ 8,366 |
Business Combinations, Goodwi_5
Business Combinations, Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Balance, beginning of the year | $ 87,609 | $ 88,883 |
Business Acquisitions | 7,900 | |
Disposals | (3,480) | |
Effect of exchange rates changes | (6,818) | (1,319) |
Purchase price allocations adjustments | 45 | |
Balance, end of the year | 85,211 | 87,609 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 29,072 | 30,069 |
Disposals | (3,480) | |
Effect of exchange rates changes | (5,830) | (997) |
Balance, end of the year | 19,762 | 29,072 |
Argentina [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 6,991 | 6,946 |
Business Acquisitions | 3,603 | |
Purchase price allocations adjustments | 45 | |
Balance, end of the year | 10,594 | 6,991 |
Mexico [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 32,196 | 31,340 |
Business Acquisitions | 1,062 | |
Effect of exchange rates changes | (1,561) | 856 |
Balance, end of the year | 31,697 | 32,196 |
Chile [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 14,872 | 16,014 |
Business Acquisitions | 1,241 | |
Effect of exchange rates changes | 883 | (1,142) |
Balance, end of the year | 16,996 | 14,872 |
Colombia [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 3,312 | 3,339 |
Business Acquisitions | 1,246 | |
Effect of exchange rates changes | (168) | (27) |
Balance, end of the year | 4,390 | 3,312 |
Other Countries [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 1,166 | 1,175 |
Business Acquisitions | 748 | |
Effect of exchange rates changes | (142) | (9) |
Balance, end of the year | $ 1,772 | $ 1,166 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill And Intangible Assets (Expected Intangible Asset Amortization Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
For year ended 12/31/2021 | $ 3,773 |
For year ended 12/31/2022 | 1,264 |
For year ended 12/31/2023 | 982 |
For year ended 12/31/2024 | 342 |
Thereafter | 43 |
Total remaining amortization of intangible assets | $ 6,404 |
Segments (Financial Performance
Segments (Financial Performance Of Company's Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 1,327,304 | $ 1,115,701 | $ 878,369 | $ 652,091 | $ 674,271 | $ 603,031 | $ 545,242 | $ 473,770 | $ 428,019 | $ 355,281 | $ 335,377 | $ 320,976 | $ 3,973,465 | $ 2,296,314 | $ 1,439,653 |
Direct costs | (3,247,099) | (2,088,248) | (1,261,393) | ||||||||||||
Direct contribution | 726,366 | 208,066 | 178,260 | ||||||||||||
Operating expenses and indirect costs of net revenues | (598,674) | (361,227) | (247,742) | ||||||||||||
Income (loss) from operations | 127,692 | (153,161) | (69,482) | ||||||||||||
Other income (expenses): | |||||||||||||||
Interest income and other financial gains | 102,767 | 113,523 | 42,039 | ||||||||||||
Interest expense and other financial losses | (106,690) | (65,876) | (56,249) | ||||||||||||
Foreign currency (losses) gains | (42,454) | (1,732) | 18,240 | ||||||||||||
Net income (loss) before income tax (expense) gain | 81,315 | (107,246) | (65,452) | ||||||||||||
Brazil Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,194,041 | 1,461,509 | 866,175 | ||||||||||||
Direct costs | (1,765,981) | (1,245,382) | (762,636) | ||||||||||||
Direct contribution | 428,060 | 216,127 | 103,539 | ||||||||||||
Argentina Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 980,276 | 456,332 | 376,563 | ||||||||||||
Direct costs | (708,661) | (347,733) | (254,539) | ||||||||||||
Direct contribution | 271,615 | 108,599 | 122,024 | ||||||||||||
Mexico Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 575,173 | 275,133 | 109,096 | ||||||||||||
Direct costs | (586,022) | (390,158) | (164,637) | ||||||||||||
Direct contribution | (10,849) | (115,025) | (55,541) | ||||||||||||
Other Countries Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 223,975 | 103,340 | 87,819 | ||||||||||||
Direct costs | (186,435) | (104,975) | (79,581) | ||||||||||||
Direct contribution | $ 37,540 | $ (1,635) | $ 8,238 |
Segments (Allocation Of Long-Li
Segments (Allocation Of Long-Lived Tangible Assets Based On Geography) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 391,684 | $ 244,257 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 586 | 937 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 123,589 | 100,536 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 171,409 | 103,571 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 73,315 | 30,131 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 22,785 | 9,082 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 391,098 | $ 243,320 |
Segments (Allocation Of Goodwil
Segments (Allocation Of Goodwill And Intangible Assets Based On Geography) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 99,366 | $ 101,884 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 12,617 | 8,632 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 19,958 | 30,142 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 35,338 | 36,003 |
Chile [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 24,707 | 22,237 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 6,746 | $ 4,870 |
Segments (Consolidated Net Reve
Segments (Consolidated Net Revenues By Similar Products And Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net revenues | $ 1,327,304 | $ 1,115,701 | $ 878,369 | $ 652,091 | $ 674,271 | $ 603,031 | $ 545,242 | $ 473,770 | $ 428,019 | $ 355,281 | $ 335,377 | $ 320,976 | $ 3,973,465 | $ 2,296,314 | $ 1,439,653 |
Commerce [Member] | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net revenues | 2,559,770 | 1,346,445 | 838,632 | ||||||||||||
Fintech [Member] | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net revenues | $ 1,413,695 | $ 949,869 | $ 601,021 |
Fair Value Measurement Of Ass_3
Fair Value Measurement Of Assets And Liabilities (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
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 |
2028 Convertible Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net carrying amount | $ 672,345 | $ 686,366 |
Fair Value Measurement Of Ass_4
Fair Value Measurement Of Assets And Liabilities (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | $ 199 | $ 1,249 |
Total Financial Assets | 1,838,822 | 2,453,046 |
Contingent considerations | 4,622 | 2,201 |
Long-term retention plan | 136,816 | 60,958 |
Derivative Instruments | 13,964 | 251 |
Total Financial Liabilities | 155,402 | 63,410 |
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 | 1,838,623 | 2,451,739 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | 58 | |
Long-term retention plan | 136,816 | 60,958 |
Total Financial Liabilities | 136,816 | 60,958 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 199 | 1,249 |
Total Financial Assets | 199 | 1,249 |
Contingent considerations | 4,622 | 2,201 |
Derivative Instruments | 13,964 | 251 |
Total Financial Liabilities | 18,586 | 2,452 |
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 166,483 | 688,760 |
Restricted Cash and cash equivalents | 257,695 | 32,829 |
Money Market Funds (Secured Lines Of Credit Guarantee) [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 | 166,483 | 688,760 |
Restricted Cash and cash equivalents | 257,695 | 32,829 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 565,705 | 506,175 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [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 | 565,705 | 506,175 |
Sovereign Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 37,654 | 32,874 |
Restricted Cash and cash equivalents | 144,249 | 29,260 |
Investments | 666,837 | 1,161,663 |
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] | ||
Cash and Cash Equivalents | 37,654 | 32,874 |
Restricted Cash and cash equivalents | 144,249 | 29,260 |
Investments | 666,837 | 1,161,663 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 236 | |
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 | 178 | |
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 58 | |
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 565,705 |
Fair Value Measurement Of Ass_5
Fair Value Measurement Of Assets And Liabilities (Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 1,709,669 | $ 942,837 | |
Liabilities | 4,356,151 | 2,336,434 | |
Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 767,336 | 372,309 | |
Funds Payable to Customers And Amounts Due To Merchants [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,733,095 | 894,057 | |
Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 120,394 | 67,686 | |
Tax Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 215,918 | 60,247 | |
Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 1,409,269 | 817,491 |
Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 110,139 | 124,644 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,709,669 | 942,837 | |
Liabilities | 4,426,047 | 2,446,846 | |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 767,336 | 372,309 | |
Significant Other Observable Inputs (Level 2) [Member] | Funds Payable to Customers And Amounts Due To Merchants [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,733,095 | 894,057 | |
Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 120,394 | 67,686 | |
Significant Other Observable Inputs (Level 2) [Member] | Tax Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 215,918 | 60,247 | |
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] | 1,479,165 | 927,903 |
Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 110,139 | 124,644 | |
Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 158,818 | 189,660 | |
Time Deposits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 158,818 | 189,660 | |
Accounts Receivable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 49,691 | 35,446 | |
Accounts Receivable [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 49,691 | 35,446 | |
Credit Cards Receivable And Other Means Of Payments, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 863,073 | 379,969 | |
Credit Cards Receivable And Other Means Of Payments, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 863,073 | 379,969 | |
Loans Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 401,655 | 188,544 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 401,655 | 188,544 | |
Other Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 236,432 | 149,218 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 236,432 | $ 149,218 | |
[1] | The fair value of the 2028 Notes (including the equity component) is disclosed in Note 16 . |
Fair Value Measurement Of Ass_6
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 1,830,190 | $ 2,447,417 |
Gross Unrealized Gains | 2,085 | |
Financial Gains | 8,433 | 2,437 |
Financial Losses | (142) | |
Estimated Fair Value | 1,838,623 | 2,451,797 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 204,078 | 721,611 |
Financial Gains | 59 | 23 |
Estimated Fair Value | 204,137 | 721,634 |
Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 166,483 | 688,760 |
Estimated Fair Value | 166,483 | 688,760 |
Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 37,595 | 32,851 |
Financial Gains | 59 | 23 |
Estimated Fair Value | 37,654 | 32,874 |
Restricted Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 401,793 | 62,056 |
Financial Gains | 151 | 33 |
Estimated Fair Value | 401,944 | 62,089 |
Restricted Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 257,695 | 32,829 |
Estimated Fair Value | 257,695 | 32,829 |
Restricted Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 144,098 | 29,227 |
Financial Gains | 151 | 33 |
Estimated Fair Value | 144,249 | 29,260 |
Short Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,074,381 | 1,403,180 |
Gross Unrealized Gains | 2,080 | |
Financial Gains | 8,107 | 2,380 |
Financial Losses | (59) | |
Estimated Fair Value | 1,082,488 | 1,407,581 |
Short Term Investments [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 559,487 | 504,195 |
Financial Gains | 6,218 | 1,980 |
Estimated Fair Value | 565,705 | 506,175 |
Short Term Investments [Member] | Sovereign Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 514,894 | 898,922 |
Gross Unrealized Gains | 2,080 | |
Financial Gains | 1,889 | 400 |
Financial Losses | (59) | |
Estimated Fair Value | 516,783 | 901,343 |
Short Term Investments [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 63 | |
Estimated Fair Value | 63 | |
Short Term Investments [Member] | U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 627,842 | |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 149,938 | 260,570 |
Gross Unrealized Gains | 5 | |
Financial Gains | 116 | 1 |
Financial Losses | (83) | |
Estimated Fair Value | 150,054 | 260,493 |
Long-term Investments [Member] | Sovereign Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 149,938 | 260,400 |
Gross Unrealized Gains | 2 | |
Financial Gains | 116 | 1 |
Financial Losses | (83) | |
Estimated Fair Value | $ 150,054 | 260,320 |
Long-term Investments [Member] | Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 170 | |
Gross Unrealized Gains | 3 | |
Estimated Fair Value | 173 | |
Long-term Investments [Member] | U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 260,230 | |
Argentina Segment [Member] | Short Term Investments [Member] | Sovereign Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | $ 16,623 |
Fair Value Measurement Of Ass_7
Fair Value Measurement Of Assets And Liabilities (Estimated Fair Values Of Cash Equivalents, Short-Term And Long-Term Investments, Effective Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
One year or less | $ 1,688,568 | |
One year to two years | 150,055 | |
Total | $ 1,838,623 | $ 2,451,797 |
Common Stock (Details)
Common Stock (Details) | 12 Months Ended | |
Dec. 31, 2020item$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Equity [Abstract] | ||
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 |
Common stock, shares issued | 49,869,727 | 49,709,955 |
Common stock, shares outstanding | 49,869,727 | 49,709,955 |
Each common stock voting entitlement | item | 1 | |
Stockholders owning no voting right percentage | 20.00% |
Mandatorily Redeemable Conver_2
Mandatorily Redeemable Convertible Preferred Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Mandatorily Redeemable Convertible Preferred Stock [Abstract] | ||
Preferred stock, shares authorized | 40,000,000 | |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares issued | 100,000 | |
Preferred Stock, Shares Outstanding | 100,000 | 0 |
Preferred stock, stated value per share | $ 1,000 | |
Preferred stock, cash dividend percent | 4.00% | |
Preferred stock, convertible, initial conversion price | $ 479.71 |
Equity Compensation Plan (Detai
Equity Compensation Plan (Details) | 168 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding options granted | 0 |
2009 Equity Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 1,000,000 |
Options outstanding | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | Dec. 23, 2019 | Dec. 27, 2017 | Sep. 30, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Line Items] | |||||||
Income tax rate | 21.00% | 21.00% | 21.00% | ||||
Withholding income tax on dividends paid, percent | 5.00% | ||||||
Consolidated loss carryforwards for income tax purpose | $ 162,008 | ||||||
Deferred tax assets, valuation allowance | 179,177 | $ 138,875 | |||||
U.S. foreign tax credit valuation allowance reversed amount | 17,513 | $ 12,841 | |||||
Argentina Segment [Member] | |||||||
Income Taxes [Line Items] | |||||||
Non-U.S. subsidiaries’ undistributed earnings | $ 5,974 | ||||||
Federal Administration of Public Revenues, Argentina [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 25.00% | 30.00% | 30.00% | 35.00% | |||
Withholding income tax on dividends paid, percent | 13.00% | 7.00% | 7.00% | ||||
Tax Year 2018 And 2019 [Member] | Federal Administration of Public Revenues, Argentina [Member] | |||||||
Income Taxes [Line Items] | |||||||
Withholding income tax on dividends paid, percent | 7.00% | ||||||
Tax Year 2019 And 2020 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Withholding income tax on dividends paid, percent | 12.00% | ||||||
Temporary Withholding On Exports, Maximum Limit Of Argentine Peses Per Each US Dollar | 4 | ||||||
Tax Year 2020 [Member] | Federal Administration of Public Revenues, Argentina [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 30.00% | 25.00% | |||||
Withholding income tax on dividends paid, percent | 13.00% | ||||||
Argentina [Member] | |||||||
Income Taxes [Line Items] | |||||||
Effective tax rate | 6.70% |
Income Taxes (Components Of Pre
Income Taxes (Components Of Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Income before income tax | $ 81,315 | $ (107,246) | $ (65,452) |
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Income before income tax | (54,425) | 2,900 | (19,461) |
Brazil [Member] | |||
Income Tax Contingency [Line Items] | |||
Income before income tax | 79,453 | 25,693 | (38,778) |
Argentina [Member] | |||
Income Tax Contingency [Line Items] | |||
Income before income tax | 185,054 | 61,217 | 107,913 |
Mexico [Member] | |||
Income Tax Contingency [Line Items] | |||
Income before income tax | (133,582) | (168,310) | (91,681) |
Other Countries [Member] | |||
Income Tax Contingency [Line Items] | |||
Income before income tax | $ 4,815 | $ (28,746) | $ (23,445) |
Income Taxes (Summary Of Income
Income Taxes (Summary Of Income - Asset Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
U.S. | $ 8,705 | $ (10) | |
Non-U.S. | $ 152,337 | 39,595 | 64,028 |
Current Income Tax | 152,337 | 48,300 | 64,018 |
Deferred: | |||
U.S. | (5,397) | (13,566) | (3,618) |
Non-U.S. | (64,918) | 30,019 | (89,267) |
Deferred Income Tax | (70,315) | 16,453 | (92,885) |
Income tax expense (gain) | $ 82,022 | $ 64,753 | $ (28,867) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Difference Between Actual Provision For Income Taxes And Provision Computed By Applying Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||
Net income (loss) before income tax (expense) | $ 81,315 | $ (107,246) | $ (65,452) |
Income tax rate | 21.00% | 21.00% | 21.00% |
Expected income tax gain (expense) | $ 17,076 | $ (22,522) | $ (13,745) |
Permanent differences: | |||
Federal and assets taxes | 146 | 203 | 7 |
Transfer pricing adjustments | 1,243 | 1,161 | 1,818 |
Non-deductible tax | 2,641 | 683 | 1,043 |
Non-deductible expenses | 17,885 | 9,309 | 6,982 |
Dividend distributions | 9,381 | 2,594 | 1,085 |
Non-taxable income | (3,741) | (15,418) | (31,562) |
Effect of rates different than statutory | (3,713) | (11,521) | 3,020 |
Currency translation | 11,775 | (4,201) | 3,866 |
Change in valuation allowance | 40,874 | 113,426 | 3,130 |
Argentine tax reform (including changes in income tax rate) | (2,175) | 1,217 | |
Colombian tax reform | 442 | ||
Deferred tax reversed by merger | (3,994) | ||
Exchange of convertible note | (1,756) | ||
Tax Inflation Adjustments | (7,023) | (4,940) | |
Deferred tax reversed by spin-off | (886) | ||
True up | (4,522) | (960) | (420) |
Income tax expense | $ 82,022 | $ 64,753 | $ (28,867) |
Income Taxes (Composition Of De
Income Taxes (Composition Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for doubtful accounts | $ 17,963 | $ 7,601 |
Unrealized net gains on investments | 2,423 | 92 |
Property and equipment, net | 15,594 | 5,467 |
Accounts payable and accrued expenses | 5,009 | 2,202 |
Payroll and social security payable | 23,516 | 10,255 |
Foreign exchange effect | 5,399 | 1,846 |
Taxes payable | 4,843 | 984 |
Provisions and non-deductible interest | 70,425 | 40,593 |
Foreign tax credit | 17,513 | 12,841 |
Tax loss carryforwards | 162,008 | 167,420 |
Inventories | 322 | |
Tax inflation adjustments | 8,460 | 6,757 |
Total deferred tax assets | 333,475 | 256,457 |
Valuation allowance | (179,177) | (138,875) |
Total deferred tax assets, net | 154,298 | 117,582 |
Deferred tax liabilities | ||
Property and equipment, net | (5,771) | (26,761) |
Unrealized net gains on investments | (121) | (1,160) |
Goodwill | (2,962) | (4,392) |
Convertible notes and Capped Call | (57,813) | (63,258) |
Accounts payable and accrued expenses | (1,783) | (1,914) |
Payroll and social security payable | (5,527) | (313) |
Outside basis dividends | (5,974) | |
Provisions | (2,143) | (884) |
Foreign exchange effect | (100) | (3) |
Total deferred tax liabilities | (83,736) | (99,952) |
Customer Lists [Member] | ||
Deferred tax assets | ||
Intangible assets | 220 | |
Deferred tax liabilities | ||
intangible assets | (713) | (1,043) |
Non-Compete Agreement [Member] | ||
Deferred tax assets | ||
Intangible assets | 155 | |
Deferred tax liabilities | ||
intangible assets | (743) | |
Trademarks [Member] | ||
Deferred tax assets | ||
Intangible assets | 24 | |
Deferred tax liabilities | ||
intangible assets | $ (86) | (87) |
Non-Solicitation Agreements [Member] | ||
Deferred tax liabilities | ||
intangible assets | $ (137) |
Income Taxes (Tax Loss Carryfor
Income Taxes (Tax Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Income Taxes [Abstract] | |
2023 | $ 1,426 |
2024 | 512 |
2025 | 2,282 |
2026 | 4,238 |
2027 | 20,620 |
Thereafter | 103,461 |
Without due dates | 29,469 |
Total | $ 162,008 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Thousands | Dec. 08, 2020 | Dec. 01, 2020 | Sep. 22, 2017 | Nov. 09, 2016 | Sep. 02, 2011 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ||||||||
Reserves for proceeding-related contingencies | $ 10,929 | |||||||
Aggregate amount for legal actions for which no loss amount has been accrued | 57,668 | |||||||
Loss accrued for reasonably possible legal actions | 0 | |||||||
Provision for maximum potential exposure | 8,364 | $ 3,808 | ||||||
Maximum potential exposure | 2,535,041 | $ 1,365,815 | ||||||
Brazilian Subsidiaries [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Total amount of claim including accrued interest | 57,500 | |||||||
Accrued interests | 6,300 | |||||||
Brazilian Federal Tax Claims [Member] | Brazilian Subsidiaries [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated damage according to exchange rate | 440 | |||||||
Approximate additional amount related to asserted taxes and fines | $ 500 | |||||||
PIS And COFINS [Member] | Brazilian Subsidiaries [Member] | Tax Year 2012 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Tax authorities assessed taxes and fines | $ 600 | |||||||
MercadoPago.com- PIS And COFINS [Member] | Brazilian Subsidiaries [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated damage according to exchange rate | $ 2,300 | |||||||
Approximate additional amount related to asserted taxes and fines | 2,300 | |||||||
Percent of tax assessment notice | 60.00% | |||||||
MercadoPago.com Representações Ltda [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Approximate additional amount related to asserted taxes and fines | $ 15,200 | |||||||
Ebazar.com.br Ltda [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Approximate additional amount related to asserted taxes and fines | $ 12,500 | |||||||
Cloud Platform Services [Member] | Fully Paid Off Between June 1, 2020 And May 31, 2024 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Purchase Commitment, Amount | 240,500 | |||||||
Paid in relation to the contract | 49,286 | |||||||
Cloud Platform Services [Member] | Fully Paid Off Between November 24, 2019 And March 23, 2023 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Purchase Commitment, Amount | 30,000 | |||||||
Paid in relation to the contract | $ 5,913 |
Long Term Retention Plan (Narra
Long Term Retention Plan (Narrative) (Details) - LTRP 2019 [Member] | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of bonus for fixed payments | 16.66% |
Percent of fixed awards for fixed payments | 16.66% |
Term of fixed payments for eligible employees | 6 years |
Stock price per share, average closing price | $ 553.45 |
Long term retention plan, number of trading days | 60 days |
Long Term Retention Plan (Outst
Long Term Retention Plan (Outstanding Long Term Retention Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long Term Retention Plan 2011 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 1,738 | ||
Weighted-average remaining contractual life (years) | 3 months | ||
Long Term Retention Plan 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 2,861 | $ 3,460 | |
Weighted-average remaining contractual life (years) | 3 months | 9 months | |
Long Term Retention Plan 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 4,318 | ||
Weighted-average remaining contractual life (years) | 3 months | ||
Long Term Retention Plan 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 5,086 | $ 6,037 | |
Weighted-average remaining contractual life (years) | 3 months | 9 months | |
LTRP 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 13,237 | $ 10,484 | $ 9,398 |
Weighted-average remaining contractual life (years) | 29 days | 9 months | 1 year 3 months |
LTRP 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 34,795 | $ 19,091 | $ 15,343 |
Weighted-average remaining contractual life (years) | 7 months 13 days | 1 year 3 months | 1 year 9 months |
LTRP 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 41,315 | $ 19,654 | $ 14,860 |
Weighted-average remaining contractual life (years) | 1 year 1 month 17 days | 1 year 9 months | 2 years 3 months |
LTRP 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 23,233 | $ 10,727 | $ 8,135 |
Weighted-average remaining contractual life (years) | 1 year 7 months 20 days | 2 years 3 months | 2 years 10 months 17 days |
LTRP 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 133,052 | $ 56,322 | |
Weighted-average remaining contractual life (years) | 2 years 1 month 20 days | 2 years 9 months | |
LTRP 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate Intrinsic value | $ 153,113 | ||
Weighted-average remaining contractual life (years) | 2 years 8 months 1 day |
Long Term Retention Plan (Long
Long Term Retention Plan (Long Term Retention Plans Accrued Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | $ 129,575 | $ 51,662 | $ 27,525 |
Long Term Retention Plan 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 24 | ||
Long Term Retention Plan 2011 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 26 | 766 | |
Long Term Retention Plan 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 69 | 1,755 | 1,398 |
Long Term Retention Plan 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 97 | 2,416 | |
Long Term Retention Plan 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 125 | 3,743 | 2,921 |
LTRP 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 10,025 | 6,266 | 3,984 |
LTRP 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 23,152 | 9,838 | 5,975 |
LTRP 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 25,267 | 9,737 | 6,639 |
LTRP 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 12,268 | 5,089 | $ 3,402 |
LTRP 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | 28,523 | $ 15,111 | |
LTRP 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long term retention plan | $ 30,146 |
Loans Payable And Other Finan_3
Loans Payable And Other Financial Liabilities (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($)itemfloor$ / shares$ / itemshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 26, 2021USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | Aug. 24, 2018USD ($) | Jun. 30, 2014USD ($) | ||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | ||||||||||||||
Debt conversion, converted instrument, principal amount | [1] | $ 343,000,000 | |||||||||||||
2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt conversion, converted instrument additional amount requested | 1,000 | ||||||||||||||
Debt conversion, converted instrument, principal amount | $ 7,000 | ||||||||||||||
Number of notes converted | item | 7 | ||||||||||||||
2028 Convertible Senior Notes [Member] | Subsequent Events [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument outstanding | $ 440,000,000 | ||||||||||||||
2028 Convertible Senior Notes [Member] | Subsequent Events [Member] | Signed Agreement To Repurchase [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt extinguished | 440,000,000 | ||||||||||||||
Cash payment for debt extinguishment | 1,865,076,000 | ||||||||||||||
Convertible Senior Notes [Member] | 2019 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 330,000,000 | ||||||||||||||
Debt instrument, interest rate | 2.25% | ||||||||||||||
Convertible Senior Notes [Member] | Initial Issuance - 2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 800,000,000 | $ 800,000,000 | |||||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | |||||||||||||
Converted instrument rate, number of shares per principal amount | shares | 2.2553 | ||||||||||||||
Converted instrument, principal amount used per conversion | $ / item | 1,000 | ||||||||||||||
Convertible senior notes, conversion price | $ / shares | $ 443.40 | ||||||||||||||
Convertible Senior Notes [Member] | Additional Issuance - 2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 80,000,000 | $ 80,000,000 | |||||||||||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 880,000,000 | $ 880,000,000 | $ 880,000,000 | ||||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||||
Debt instrument, maturity date | Aug. 15, 2028 | ||||||||||||||
Converted instrument rate, number of shares per principal amount | shares | 1,000 | ||||||||||||||
Debt instrument convertible conversion price, percent | 130.00% | ||||||||||||||
Amount paid to enter into capped call transactions | $ 120,012,000 | $ 82,682,000 | $ 104,095,000 | $ 8,005,000 | $ 88,362,000 | $ 11,472,000 | $ 91,784,000 | ||||||||
Estimated fair value | $ 3,416,819,000 | $ 1,338,014,000 | |||||||||||||
Closing trading amount price per share | $ / item | 100 | ||||||||||||||
Common stock, closing price per share | $ / shares | $ 1,675.22 | ||||||||||||||
Debt instrument convertible, if-converted value in excess of principal | $ 2,444,729,000 | ||||||||||||||
Debt instrument outstanding | $ 879,993,000 | $ 880,000,000 | |||||||||||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | Subsequent Events [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount paid to enter into capped call transactions | $ 100,769,000 | ||||||||||||||
30 Day Measurement Period [Member] | Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, convertible trading days | item | 20 | ||||||||||||||
Debt instrument, convertible consecutive trading days | item | 30 | ||||||||||||||
Measurement Period [Member] | Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, convertible trading days | item | 5 | ||||||||||||||
Debt instrument, convertible consecutive trading days | floor | 5 | ||||||||||||||
Percentage of debt conversion price | 98.00% | ||||||||||||||
[1] | Related to the acquisition of a software development company – See Note 7. |
Loans Payable And Other Finan_4
Loans Payable And Other Financial Liabilities (Summary Of Loans Payable And Other Financial Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Convertible notes, current | $ 6,649 | $ 6,649 |
Finance lease obligations, current | 7,394 | 2,008 |
Credit card collateralized debt | 12,920 | 17,309 |
Collateralized debt, current | 25,342 | 43,862 |
Other lines of credit, current | 1,848 | |
Current loans payable and other financial liabilities | 548,393 | 186,138 |
Convertible notes, noncurrent | 595,800 | 569,305 |
Finance lease obligations, noncurrent | 16,261 | 7,368 |
Collateralized debt, noncurrent | 248,815 | 54,680 |
Non Current loans payable and other financial liabilities | 860,876 | 631,353 |
Loan From Bank 1.44% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 92,895 | 38,780 |
Debt weight average rate | 1.44% | |
Loans From Banks, CDI+3.35% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 70,267 | |
Loans From Banks, CDI+3.35% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.35% | |
Loans From Banks, CDI+3.25% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 42,693 | |
Loans From Banks, CDI+3.25% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% | |
Loans From Banks, CDI+2.10% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 29,218 | |
Loans From Banks, CDI+2.10% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.10% | |
Loans From Banks, TIIE+2.20% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 18,418 | |
Loans From Banks, TIIE+2.20% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
Loan From Banks 37.75% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 14,400 | |
Debt weight average rate | 37.75% | |
Loans From Banks 6.71% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 13,406 | |
Debt weight average rate | 6.71% | |
Secured Lines Of Credit 34.16% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 18,311 | 49,499 |
Debt weight average rate | 34.16% | |
Secured Lines Of Credit, CDI+0.55% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 58,437 | |
Secured Lines Of Credit, CDI+0.55% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.55% | |
Unsecured Line Of Credit 7.81% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 20,055 | 16,435 |
Debt weight average rate | 7.81% | |
Unsecured Line Of Credit 37.21% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 116,140 | 9,645 |
Debt weight average rate | 37.21% | |
Unsecured Line Of Credit -% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 1,951 |
Loans Payable And Other Finan_5
Loans Payable And Other Financial Liabilities (Carrying Amounts Of Liability And Equity Components) (Details) - Convertible Senior Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Aug. 24, 2018 | Jun. 30, 2014 | |
2028 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of the equity component | $ 327,305 | $ 327,305 | |||
Debt instrument outstanding | 879,993 | 880,000 | |||
Unamortized debt discount | (275,299) | (301,227) | |||
Unamortized transaction costs related to the debt component | (8,894) | (9,468) | |||
Contractual coupon interest accrual | 41,409 | 23,809 | |||
Contractual coupon interest payment | (34,760) | (17,160) | |||
Net carrying amount | $ 602,449 | $ 575,954 | |||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |
Transaction Costs Allocated Between Liability And Equity Components | $ 6,163 | ||||
Remaining period over which the unamortized debt discount will be amortized | 7 years 8 months 12 days | ||||
2019 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, interest rate | 2.25% |
Loans Payable And Other Finan_6
Loans Payable And Other Financial Liabilities (Summary Of Interest Expense For Contractual Interest And Accretion Of Debt Discount) (Details) - Convertible Senior Notes [Member] - 2028 Convertible Senior Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Contractual coupon interest expense | $ 17,600 | $ 17,942 |
Amortization of debt discount | 25,929 | 24,556 |
Amortization of debt issuance costs | 574 | 490 |
Total interest expense related to the Notes | $ 44,103 | $ 42,988 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Venezuelan Operations [Member] | ||
Related Party Transaction [Line Items] | ||
Recognized expenses from party | $ 278 | $ 4,620 |
Valuation And Qualifying Acco_3
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 6,325 | $ 8,702 | $ 9,821 |
Charged / credited to Net loss | 5,683 | 5,520 | 10,968 |
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (4,714) | (7,897) | (12,087) |
Balance at end of year | 7,294 | 6,325 | 8,702 |
Credit Cards Receivable And Other Means Of Payments Allowance For Chargebacks [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 11,310 | 8,073 | 5,184 |
Charged / credited to Net loss | 53,662 | 15,673 | 9,199 |
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (47,284) | (12,436) | (6,310) |
Balance at end of year | 17,688 | 11,310 | 8,073 |
Credit Cards Receivable And Other Means Of Payments Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | |||
Charged / credited to Net loss | 36,236 | ||
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (12,373) | ||
Balance at end of year | 23,863 | ||
Loans Receivable Allowance For Uncollectible Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 20,444 | 6,636 | 4,730 |
Adoption of ASC326 | 4,977 | ||
Charged / credited to Net loss | 91,025 | 64,341 | 27,725 |
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (38,630) | (50,533) | (25,819) |
Balance at end of year | 77,816 | 20,444 | 6,636 |
Tax Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 138,875 | 15,724 | 15,422 |
Charged / credited to Net loss | 40,874 | 113,426 | 3,130 |
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (572) | 9,725 | (2,828) |
Balance at end of year | 179,177 | 138,875 | 15,724 |
Contingencies [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 7,972 | 5,813 | 5,902 |
Charged / credited to Net loss | 3,123 | 10,978 | 7,969 |
Charges Utilized/Currency translation adjustments Write-offs and other adjustments | (166) | (8,819) | (8,058) |
Balance at end of year | $ 10,929 | $ 7,972 | $ 5,813 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule Of Consolidated Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||||||
Net revenues | $ 1,327,304 | $ 1,115,701 | $ 878,369 | $ 652,091 | $ 674,271 | $ 603,031 | $ 545,242 | $ 473,770 | $ 428,019 | $ 355,281 | $ 335,377 | $ 320,976 | $ 3,973,465 | $ 2,296,314 | $ 1,439,653 |
Gross profit | 489,034 | 480,190 | 427,172 | 312,814 | 308,347 | 284,342 | 272,430 | 237,004 | 204,783 | 169,718 | 159,749 | 162,758 | 1,709,210 | 1,102,123 | 697,008 |
Net (loss) income | $ (50,580) | $ 15,035 | $ 55,947 | $ (21,109) | $ (53,998) | $ (146,082) | $ 16,217 | $ 11,864 | $ (2,337) | $ (10,078) | $ (11,251) | $ (12,919) | $ (707) | $ (171,999) | $ (36,585) |
Net Income (loss) per share-basic | $ (1.02) | $ 0.28 | $ 1.11 | $ (0.44) | $ (1.11) | $ (2.96) | $ 0.31 | $ 0.13 | $ (0.05) | $ (0.23) | $ (0.25) | $ (0.29) | $ (0.08) | $ (3.71) | $ (0.82) |
Net Income (loss) per share-diluted | $ (1.02) | $ 0.28 | $ 1.11 | $ (0.44) | $ (1.11) | $ (2.96) | $ 0.31 | $ 0.13 | $ (0.05) | $ (0.23) | $ (0.25) | $ (0.29) | $ (0.08) | $ (3.71) | $ (0.82) |
Weighted average shares | |||||||||||||||
Basic | 49,820,185 | 49,720,854 | 49,709,973 | 49,709,955 | 49,709,955 | 49,710,723 | 49,318,522 | 45,980,255 | 45,202,859 | 44,588,704 | 44,157,364 | 44,157,364 | 49,740,407 | 48,692,906 | 44,529,614 |
Diluted | 49,820,185 | 49,720,854 | 49,709,973 | 49,709,955 | 49,709,955 | 49,710,723 | 49,318,522 | 45,980,255 | 45,202,859 | 44,588,704 | 44,157,364 | 44,157,364 | 49,740,407 | 48,692,906 | 44,529,614 |
Securitization Transactions (Co
Securitization Transactions (Collateralized Debt) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Mercado Crédito Merchant [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 4,839 |
Mercado Crédito I [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 32,588 |
Creditórios Arandu [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 189,768 |
Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 5,989 |
Mercado Crédito VII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 1,754 |
Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 5,678 |
Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 6,834 |
Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 26,707 |
Maximum [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 37.00% |
Maximum [Member] | Mercado Crédito VII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 37.00% |
Maximum [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 39.00% |
Maximum [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 41.00% |
Minimum [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 27.00% |
Minimum [Member] | Mercado Crédito VII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 27.00% |
Minimum [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 29.00% |
Minimum [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 29.00% |
Brazilian DI Rate [Member] | Mercado Crédito Merchant [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.50% |
Brazilian DI Rate [Member] | Mercado Crédito I [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Brazilian DI Rate [Member] | Creditórios Arandu [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
BADLAR Rate [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito VII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Diario Oficial [Member] | Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.34% |
Securitization Transactions (As
Securitization Transactions (Assets And Liabilities Of The Trust) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 651,830 | $ 66,684 |
Loans receivable, net | 385,036 | 182,105 |
Total current assets | 5,346,807 | 3,788,856 |
Loans receivable, net | 16,619 | 6,439 |
Total non-current assets | 1,179,525 | 992,835 |
Total assets | 6,526,332 | 4,781,691 |
Accounts payable and accrued expenses | 767,336 | 372,309 |
Loans payable and other financial liabilities | 548,393 | 186,138 |
Total current liabilities | 3,635,880 | 1,752,320 |
Loans payable and other financial liabilities | 860,876 | 631,353 |
Total non-current liabilities | 1,238,874 | 947,408 |
Total liabilities | 4,874,754 | 2,699,728 |
Trust Created In Brazil [Member] | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 249,872 | 37,424 |
Loans receivable, net | 113,846 | 104,419 |
Total current assets | 363,718 | 141,843 |
Loans receivable, net | 9,581 | 4,395 |
Total non-current assets | 9,581 | 4,395 |
Total assets | 373,299 | 146,238 |
Accounts payable and accrued expenses | 100 | 128 |
Loans payable and other financial liabilities | 25,342 | 43,862 |
Total current liabilities | 25,442 | 43,990 |
Loans payable and other financial liabilities | 248,815 | 54,680 |
Total non-current liabilities | 248,815 | 54,680 |
Total liabilities | $ 274,257 | $ 98,670 |
Equity Offerings (Details)
Equity Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 29, 2019 | Mar. 15, 2019 | Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Value, New Issues | $ 98,688 | $ 1,867,215 | $ 343,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Redeemable convertible preferred stock, Par Value | $ 0.001 | 0.001 | ||||
Funds raised from aggregate issuance | $ 1,965,903 | |||||
Equity, issuance cost | $ 34,097 | |||||
Preferred stock, par value | $ 0.001 | |||||
Preferred stock, cash dividend percent | 4.00% | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock Value At Offering | $ 1,150,000 | |||||
Common Stock Value At Offering, Per Share | $ 480 | |||||
Stock Issued During Period, Shares, New Issues | 2,395,834 | |||||
Common Stock Value At Offering, Underwriters' Option, Additional Shares Value | $ 150,000 | |||||
Common stock, par value | $ 0.001 | |||||
Request for new shares issued | 208,460 | |||||
Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock, Convertible, Conversion Price | $ 479.71 | |||||
Preferred stock stated value | $ 1,000 | |||||
Preferred stock, cash dividend percent | 4.00% | |||||
Shares requested for conversion | 100,000 | |||||
PayPay, Inc. [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock Value At Offering, Per Share | $ 436.10 | |||||
Stock Issued During Period, Value, New Issues | $ 750,000 | |||||
Stock Issued During Period, Shares, New Issues | 1,719,790 | |||||
Dragoneer Investment Group [Member] | Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Value, New Issues | $ 100,000 | |||||
Stock Issued During Period, Shares, New Issues | 100,000 | |||||
Redeemable convertible preferred stock, Par Value | $ 0.001 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 303,214 | $ 200,449 |
Operating lease liabilities | 298,847 | 199,932 |
Finance Leases, Property and equipment, at cost | 29,798 | 10,952 |
Finance Leases, Accumulated depreciation | (4,086) | (1,563) |
Finance Leases, Property and equipment, net | 25,712 | 9,389 |
Loans payable and other financial liabilities | $ 23,655 | $ 9,376 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Dec. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term, Operating leases | 7 years |
Weighted average remaining lease term, Finance leases | 4 years |
Weighted average discount rate, Operating leases | 9.00% |
Weighted average discount rate, Finance leases | 11.00% |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 42,508 | $ 29,515 |
Depreciation of property and equipment | 2,474 | 1,514 |
Interest on lease liabilities | 2,813 | 1,798 |
Total finance lease cost | $ 5,287 | $ 3,312 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 40,339 | $ 25,381 | |
Financing cash flows from finance leases | 4,949 | 1,929 | $ 323 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 137,679 | 93,160 | |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 17,177 | $ 4,496 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Leases, One year or less | $ 58,651 | |
Operating Leases, One year to two years | 58,860 | |
Operating Leases, Two years to three years | 56,355 | |
Operating Leases, Three years to four years | 54,167 | |
Operating Leases, Fours years to five years | 45,096 | |
Operating Leases, Thereafter | 120,892 | |
Operating Leases, Total lease payments | 394,021 | |
Operating Leases, Less imputed interest | (95,174) | |
Operating leases, Total | 298,847 | $ 199,932 |
Finance Leases, One year or less | 8,833 | |
Finance Leases, One year to two years | 7,638 | |
Finance Leases, Two years to three years | 6,934 | |
Finance Leases, Three years to four years | 4,717 | |
Finance Leases, Fours years to five years | 1,162 | |
Finance Leases, Total lease payments | 29,284 | |
Finance Leases, Less imputed interest | (5,629) | |
Finance Leases, Total | $ 23,655 | $ 9,376 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 |
Forecast [Member] | Foreign Exchange Contracts, Forecasted Purchases Of MPOS Devices [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 2,501 | $ 2,746 | $ 2,811 | $ 5,417 | $ 5,216 | $ 5,324 | $ 7,718 | $ 7,325 | $ 7,031 | $ 9,735 | $ 8,567 | |
Forecast [Member] | Foreign Exchange Contract Entered, USD To Brazilian Reais [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 31,000 | 35,000 | 44,000 | 40,000 | ||||||||
Forecast [Member] | Foreign Exchange Contract Entered, USD To Mexican Peso [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 10,000 | $ 45,000 | $ 37,651 | $ 10,572 | ||||||||
Subsequent Events [Member] | Foreign Exchange Contracts, Forecasted Purchases Of MPOS Devices [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 9,350 | |||||||||||
Subsequent Events [Member] | Foreign Exchange Contract Entered, USD To Brazilian Reais [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 65,000 | |||||||||||
Subsequent Events [Member] | Foreign Exchange Contract Entered, USD To Mexican Peso [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 10,766 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 199 | $ 1,249 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2,858 | $ 251 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 11,106 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Contracts) (Details) - Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | $ (250) |
Amount of Gain (Loss) recognized in other comprehensive loss | 4,219 |
Amount of gain reclassified from accumulated other comprehensive loss (income) | (6,438) |
End Balance | $ (2,469) |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value Of Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments [Abstract] | ||
Foreign exchange contracts not designated as hedging instruments | $ 1,935 | $ 301 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - August 30, 2020 Board Authorized Repurchase Program [Member] - USD ($) $ / shares in Units, $ in Thousands | Aug. 30, 2020 | Dec. 31, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||
Common stock, par value | $ 0.001 | |
Aggregate consideration amount of repurchase program | $ 350,000 | |
Common Stock repurchased, shares | 48,688 | |
Loss on repurchase of shares | $ 44,505 |
Impact of COVID-19 Pandemic (De
Impact of COVID-19 Pandemic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | |||
Percent of revenue increase from prior year | 73.00% | ||
Debt instrument, face amount | $ 1,100,000 | ||
Cash, Cash Equivalents, and Short-term Investments | $ 2,460,751 | ||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Cash, Cash Equivalents, and Short-term Investments | 709,954 | $ 506,175 | |
Investments | 565,705 | $ 506,175 | |
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Investments | 565,705 | ||
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Investments | $ 71,244 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Jan. 14, 2021 | Jan. 31, 2021 |
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $ 1,100,000,000 | |
Subsequent Events [Member] | 2.375% Sustainability Notes due 2026 [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $ 400,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | |
Debt Instrument, Maturity Date | Jan. 14, 2026 | |
Subsequent Events [Member] | 3.125% Notes due 2031 [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, face amount | $ 700,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | |
Debt Instrument, Maturity Date | Jan. 14, 2031 |