Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Entity Address [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 | WTC Free Zone | |
Entity Address, Address Line Two | Dr. Luis Bonavita 1294 | |
Entity Address, Address Line Three | Of. 1733, Tower II | |
Entity Address, City or Town | Montevideo | |
Entity Address, Country | UY | |
Entity Address, Postal Zip Code | 11300 | |
City Area Code | +598 | |
Local Phone Number | 2927-2770 | |
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 | 49,458,958 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001099590 | |
Amendment Flag | false | |
Former Address [Member] | ||
Entity Address [Line Items] | ||
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 | |
Common Stock [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | MELI | |
Security Exchange Name | NASDAQ | |
2.375% Sustainability Notes Due 2026 [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | 2.375% Sustainability Notes due 2026 | |
Trading Symbol | MELI26 | |
Security Exchange Name | NASDAQ | |
3.125% Notes Due 2031 [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2031 | |
Trading Symbol | MELI31 | |
Security Exchange Name | NASDAQ |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 987,213 | $ 1,856,394 |
Restricted cash and cash equivalents | 435,348 | 651,830 |
Short-term investments (739,176 and 636,949 held in guarantee - see Note 4) | 1,041,868 | 1,241,306 |
Accounts receivable, net | 70,542 | 49,691 |
Credit cards receivable and other means of payments, net | 1,428,454 | 863,073 |
Loans receivable, net | 772,753 | 385,036 |
Prepaid expenses | 52,337 | 28,378 |
Inventory | 226,694 | 118,140 |
Other assets | 267,912 | 152,959 |
Total current assets | 5,283,121 | 5,346,807 |
Non-current assets: | ||
Long-term investments | 38,027 | 166,111 |
Loans receivable, net | 31,184 | 16,619 |
Property and equipment, net | 702,528 | 391,684 |
Operating lease right-of-use assets | 389,806 | 303,214 |
Goodwill | 80,949 | 85,211 |
Intangible assets, net | 30,709 | 14,155 |
Deferred tax assets | 127,508 | 134,916 |
Other assets | 116,185 | 67,615 |
Total non-current assets | 1,516,896 | 1,179,525 |
Total assets | 6,800,017 | 6,526,332 |
Current liabilities: | ||
Accounts payable and accrued expenses | 906,393 | 767,336 |
Funds payable to customers and amounts due to merchants | 1,987,083 | 1,733,095 |
Salaries and social security payable | 277,489 | 207,358 |
Taxes payable | 196,561 | 215,918 |
Loans payable and other financial liabilities | 765,135 | 548,393 |
Operating lease liabilities | 83,677 | 55,246 |
Other liabilities | 70,193 | 108,534 |
Total current liabilities | 4,286,531 | 3,635,880 |
Non-current liabilities: | ||
Salaries and social security payable | 22,691 | 49,852 |
Loans payable and other financial liabilities | 1,970,393 | 860,876 |
Operating lease liabilities | 307,333 | 243,601 |
Deferred tax liabilities | 54,951 | 64,354 |
Other liabilities | 35,142 | 20,191 |
Total non-current liabilities | 2,390,510 | 1,238,874 |
Total liabilities | 6,677,041 | 4,874,754 |
Commitments and Contingencies (Note 9) | ||
Equity | ||
Common stock, $0.001 par value, 110,000,000 shares authorized, 49,458,958 and 49,869,727 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 49 | 50 |
Additional paid-in capital | 919,584 | 1,860,502 |
Treasury stock | (744,102) | (54,805) |
Retained earnings | 443,523 | 314,115 |
Accumulated other comprehensive loss | (496,078) | (468,284) |
Total Equity | 122,976 | 1,651,578 |
Total Liabilities and Equity | $ 6,800,017 | $ 6,526,332 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Interim Condensed Consolidated Balance Sheets [Abstract] | ||
Short-term investments, held in guarantee | $ 739,176 | $ 636,949 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 49,458,958 | 49,869,727 |
Common stock, shares outstanding | 49,458,958 | 49,869,727 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Net revenues | $ 1,857,452 | $ 1,115,701 | $ 4,938,643 | $ 2,646,161 | |
Cost of net revenues | (1,050,862) | (635,511) | (2,786,756) | (1,425,985) | |
Gross profit | 806,590 | 480,190 | 2,151,887 | 1,220,176 | |
Operating expenses: | |||||
Product and technology development | (137,671) | (88,796) | (410,691) | (235,485) | |
Sales and marketing | (385,523) | (229,621) | (1,006,789) | (620,204) | |
General and administrative | (123,018) | (78,699) | (317,020) | (211,669) | |
Total operating expenses | (646,212) | (397,116) | (1,734,500) | (1,067,358) | |
Income from operations | 160,378 | 83,074 | 417,387 | 152,818 | |
Other income (expenses): | |||||
Interest income and other financial gains | 35,352 | 24,553 | 84,588 | 80,119 | |
Interest expense and other financial losses | [1] | (44,395) | (24,522) | (175,026) | (75,083) |
Foreign currency losses | (25,202) | (30,435) | (52,382) | (32,524) | |
Net income before income tax expense | 126,133 | 52,670 | 274,567 | 125,330 | |
Income tax expense | (30,908) | (37,635) | (145,159) | (75,457) | |
Net income | $ 95,225 | $ 15,035 | $ 129,408 | $ 49,873 | |
Basic EPS: Basic net income | |||||
Available to shareholders per common share | $ 1.92 | $ 0.28 | $ 2.60 | $ 0.94 | |
Weighted average of outstanding common shares | 49,597,157 | 49,720,854 | 49,761,360 | 49,713,621 | |
Diluted EPS: Diluted net income | |||||
Available to shareholders per common share | $ 1.92 | $ 0.28 | $ 2.60 | $ 0.94 | |
Weighted average of outstanding common shares | 49,597,157 | 49,720,854 | 49,761,360 | 49,713,621 | |
Service [Member] | |||||
Net revenues | $ 1,630,914 | $ 1,038,574 | $ 4,366,538 | $ 2,524,348 | |
Product [Member] | |||||
Net revenues | $ 226,538 | $ 77,127 | $ 572,105 | $ 121,813 | |
[1] | Includes $ 49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase recognized in January 2021. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase. |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements Of Income (Parenthetical) $ in Thousands | 1 Months Ended |
Jan. 31, 2021USD ($) | |
2028 Convertible Senior Notes [Member] | |
Interest Expense And Other Financial Charges | $ 49,247 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interim Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 95,225 | $ 15,035 | $ 129,408 | $ 49,873 |
Other comprehensive income (loss), net of income tax: | ||||
Currency translation adjustment | (59,630) | (2,113) | (35,483) | (102,763) |
Unrealized gains on hedging activities | 6,210 | 572 | 5,839 | 5,550 |
Unrealized net losses on available for sale investments | (1,061) | |||
Less: Reclassification adjustment for (losses) gains from accumulated other comprehensive income (loss) | (3,646) | 1,548 | (1,850) | 5,627 |
Net change in accumulated other comprehensive income (loss), net of income tax | (49,774) | (4,150) | (27,794) | (102,840) |
Total Comprehensive income (loss) | $ 45,451 | $ 10,885 | $ 101,614 | $ (52,967) |
Interim Condensed Consolidate_6
Interim Condensed 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]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] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
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 | |
Beginning 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 | |
Beginning Balance (in shares) at Dec. 31, 2019 | 49,710 | 49,710 | |||||||||||||
Stock-based compensation - restricted shares issued | 179 | 179 | |||||||||||||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (1,000) | (1,000) | |||||||||||||
Net income (loss) | (21,109) | (21,109) | |||||||||||||
Other comprehensive loss | (90,053) | (90,053) | |||||||||||||
Ending Balance at Mar. 31, 2020 | $ 50 | 2,068,048 | (720) | 295,913 | (496,724) | 1,866,567 | |||||||||
Ending Balance (in shares) at Mar. 31, 2020 | 49,710 | ||||||||||||||
Beginning 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 | |
Beginning Balance (in shares) at Dec. 31, 2019 | 49,710 | 49,710 | |||||||||||||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (2,928) | ||||||||||||||
Net income (loss) | 49,873 | ||||||||||||||
Ending Balance at Sep. 30, 2020 | $ 50 | 1,930,984 | (40,391) | 364,967 | (509,511) | 1,746,099 | |||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 49,777 | ||||||||||||||
Changes in accounting Standards | $ 50 | 2,068,048 | (720) | 295,913 | (496,724) | 1,866,567 | |||||||||
Beginning Balance at Mar. 31, 2020 | $ 50 | 2,068,048 | (720) | 295,913 | (496,724) | 1,866,567 | |||||||||
Beginning Balance (in shares) at Mar. 31, 2020 | 49,710 | ||||||||||||||
Stock-based compensation - restricted shares issued | 187 | 187 | |||||||||||||
Stock-based compensation - restricted shares issued (in shares) | 1 | ||||||||||||||
Capped Call | (104,095) | (104,095) | |||||||||||||
Common Stock repurchased | (720) | (720) | |||||||||||||
Common Stock repurchased (in shares) | (1) | ||||||||||||||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (1,000) | (1,000) | |||||||||||||
Net income (loss) | 55,947 | 55,947 | |||||||||||||
Other comprehensive loss | (8,637) | (8,637) | |||||||||||||
Ending Balance at Jun. 30, 2020 | $ 50 | 1,964,140 | (1,440) | 350,860 | (505,361) | 1,808,249 | |||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 49,710 | ||||||||||||||
Changes in accounting Standards | $ 50 | 1,964,140 | (1,440) | 350,860 | (505,361) | 1,808,249 | |||||||||
Common Stock issued | 49,344 | 49,344 | |||||||||||||
Common Stock issued (in shares) | 104 | ||||||||||||||
Stock-based compensation - restricted shares issued | 182 | 182 | |||||||||||||
Capped Call | (82,682) | (82,682) | |||||||||||||
Common Stock repurchased | (38,951) | (38,951) | |||||||||||||
Common Stock repurchased (in shares) | (37) | ||||||||||||||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (928) | (928) | |||||||||||||
Net income (loss) | 15,035 | 15,035 | |||||||||||||
Other comprehensive loss | (4,150) | (4,150) | |||||||||||||
Ending Balance at Sep. 30, 2020 | $ 50 | 1,930,984 | (40,391) | 364,967 | (509,511) | 1,746,099 | |||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 49,777 | ||||||||||||||
Changes in accounting Standards | $ 50 | 1,930,984 | (40,391) | 364,967 | (509,511) | 1,746,099 | |||||||||
Changes in accounting Standards | 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | |||||||||
Beginning Balance at Dec. 31, 2020 | $ 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | |||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 49,870 | ||||||||||||||
Stock-based compensation - restricted shares issued | 178 | 178 | |||||||||||||
Capped Call | (100,769) | (100,769) | |||||||||||||
Repurchase of 2028 Notes Conversion Option | (1,484,279) | (1,484,279) | |||||||||||||
Common Stock repurchased | (25,321) | (25,321) | |||||||||||||
Common Stock repurchased (in shares) | (18) | ||||||||||||||
Net income (loss) | (34,012) | (34,012) | |||||||||||||
Other comprehensive loss | (37,779) | (37,779) | |||||||||||||
Ending Balance at Mar. 31, 2021 | $ 50 | 275,632 | (80,126) | 280,103 | (506,063) | (30,404) | |||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 49,852 | ||||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | |||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 49,870 | ||||||||||||||
Net income (loss) | 129,408 | ||||||||||||||
Ending Balance at Sep. 30, 2021 | $ 49 | 919,584 | (744,102) | 443,523 | (496,078) | 122,976 | |||||||||
Ending Balance (in shares) at Sep. 30, 2021 | 49,459 | ||||||||||||||
Changes in accounting Standards | $ 50 | 275,632 | (80,126) | 280,103 | (506,063) | (30,404) | |||||||||
Beginning Balance at Mar. 31, 2021 | $ 50 | 275,632 | (80,126) | 280,103 | (506,063) | (30,404) | |||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 49,852 | ||||||||||||||
Common Stock issued (in shares) | 1 | ||||||||||||||
Stock-based compensation - restricted shares issued | 179 | 179 | |||||||||||||
Common Stock repurchased | (116,642) | (116,642) | |||||||||||||
Common Stock repurchased (in shares) | (84) | ||||||||||||||
Exercise of Convertible Notes | (2,439) | (2,439) | |||||||||||||
Unwind Capped Call (see Note 11) | 181,834 | (79,452) | 102,382 | ||||||||||||
Unwind Capped Call (see Note 11) (in shares) | (57) | ||||||||||||||
Net income (loss) | 68,195 | 68,195 | |||||||||||||
Other comprehensive loss | 59,759 | 59,759 | |||||||||||||
Ending Balance at Jun. 30, 2021 | $ 50 | 455,206 | (276,220) | 348,298 | (446,304) | 81,030 | |||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 49,712 | ||||||||||||||
Changes in accounting Standards | $ 50 | 455,206 | (276,220) | 348,298 | (446,304) | 81,030 | |||||||||
Stock-based compensation - restricted shares issued | 181 | 181 | |||||||||||||
Common Stock repurchased | (298,042) | ||||||||||||||
Common Stock repurchased (in shares) | (163) | ||||||||||||||
Common Stock repurchased | $ (1) | (298,043) | |||||||||||||
Unwind Capped Call (see Note 11) | 464,197 | (169,840) | 294,357 | ||||||||||||
Unwind Capped Call (see Note 11) (in shares) | (90) | ||||||||||||||
Net income (loss) | 95,225 | 95,225 | |||||||||||||
Other comprehensive loss | (49,774) | (49,774) | |||||||||||||
Ending Balance at Sep. 30, 2021 | $ 49 | 919,584 | (744,102) | 443,523 | (496,078) | 122,976 | |||||||||
Ending Balance (in shares) at Sep. 30, 2021 | 49,459 | ||||||||||||||
Changes in accounting Standards | $ 49 | $ 919,584 | $ (744,102) | $ 443,523 | $ (496,078) | $ 122,976 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements Of Equity (Parenthetical) - $ / shares | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Interim Condensed Consolidated Statements Of Equity [Abstract] | |||
Redeemable convertible preferred stock dividend distribution, price per share | $ 9.99 | $ 9.99 | $ 9.99 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operations: | |||
Net income | $ 129,408 | $ 49,873 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Unrealized devaluation loss, net | 67,119 | 59,471 | |
Impairment of digital assets | 7,741 | 0 | |
Depreciation and amortization | 136,761 | 72,436 | |
Accrued interest | (20,714) | (37,550) | |
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 60,550 | 15,001 | |
Bad debt charges | 271,332 | 79,491 | |
Financial results on derivative instruments | 872 | (26,535) | |
Stock-based compensation expense - restricted shares | 538 | 548 | |
LTRP accrued compensation | 83,972 | 75,142 | |
Sale of fixed assets and intangible assets | 0 | 3,814 | |
Deferred income taxes | 18,383 | (58,485) | |
Changes in assets and liabilities: | |||
Accounts receivable | (7,206) | 51,250 | |
Credit cards receivables and other means of payments | (616,595) | (351,397) | |
Prepaid expenses | (24,312) | 15,627 | |
Inventory | (113,692) | (40,322) | |
Other assets | (147,897) | (18,240) | |
Payables and accrued expenses | 127,044 | 357,804 | |
Funds payable to customers and amounts due to merchants | 331,873 | 711,987 | |
Other liabilities | (63,373) | (69,829) | |
Interest received from investments | 22,543 | 35,909 | |
Net cash provided by operating activities | 264,347 | 925,995 | |
Cash flows from investing activities: | |||
Purchase of investments | (6,499,127) | (3,600,715) | |
Proceeds from sale and maturity of investments | 6,798,408 | 3,081,643 | |
Receipts from settlements of derivative instruments | 3,598 | 17,779 | |
Capital contributions in joint ventures | (5,113) | 0 | |
Payment for acquired businesses, net of cash acquired | 0 | (6,937) | |
Receipts from the sale of fixed assets and intangible assets | 0 | 274 | |
Payment for settlements of derivative instruments | (19,620) | 0 | |
Purchases of intangible assets | (29,211) | (93) | |
Changes in principal of loans receivable, net | (711,699) | (170,284) | |
Purchases of property and equipment | (424,646) | (159,797) | |
Net cash used in investing activities | (887,410) | (838,130) | |
Cash flows from financing activities: | |||
Proceeds from loans payable and other financial liabilities | 6,056,090 | 1,890,156 | |
Payments on loans payable and other financial liabilities | (4,365,252) | (1,415,845) | |
Payments on repurchase of the 2028 Notes | (1,865,076) | 0 | |
Payment of finance lease obligations | (12,612) | (2,499) | |
Purchase of convertible note capped call | (100,769) | (186,777) | |
Unwind of convertible note capped call | 396,739 | 0 | |
Common Stock repurchased | (440,005) | (39,671) | |
Exercise of Convertible Notes | (3,137) | 0 | |
Dividends paid of preferred stock | 0 | (3,000) | |
Net cash (used in) provided by financing activities | (334,022) | 242,364 | |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (128,578) | (157,524) | |
Net (decrease) increase in cash, cash equivalents, restricted cash and cash equivalents | (1,085,663) | 172,705 | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | 2,508,224 | [1] | 1,451,424 |
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | $ 1,422,561 | [1] | $ 1,624,129 |
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow |
Nature Of Business
Nature Of Business | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021, 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, Uruguay and Peru. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). Investments in entities where the Company holds joint control, but not control, over the investee are accounted for using the equity method of accounting. These interim condensed consolidated financial statements are stated in U.S. dollars, except where otherwise indicated. Intercompany transactions and balances with subsidiaries have been eliminated for consolidation purposes. Substantially all net revenues, cost of net revenues and operating expenses are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill located in the foreign jurisdictions totaled $ 800,409 thousands and $ 490,464 thousands as of September 30, 2021 and December 31, 2020, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of September 30, 2021 and December 31, 2020. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income and equity for the nine and three-month periods ended September 30, 2021 and 2020 and statements of cash flows for the nine-month periods ended September 30, 2021 and 2020. These interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Since the quarter ended March 31, 2021 the Company has disclosed Net product revenues as a separate line of Net revenues following its growth in significance relative to Net service revenues. As a result, the Company has reclassified the corresponding amount for the nine and three-month periods ended September 30, 2020 to the line Net product revenues for an amount of $ 121,813 thousands and $ 77,127 thousands, respectively, for comparative purposes. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The Company has evaluated all subsequent events through the date these condensed consolidated financial statements were issued. The condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Company’s Form 10-K for the year ended December 31, 2020. During the nine-month period ended September 30, 2021, there were no material updates made to the Company’s significant accounting policies. Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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 account and chargebacks of $ 358,258 thousands and $ 126,661 thousands as of September 30, 2021 and December 31, 2020, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period 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, 2020 and 2019 was $ 32,519 thousands and $ 16,590 thousands, respectively, of which $ 24,310 thousands and $ 11,229 thousands were recognized as revenue during the nine-month periods ended September 30, 2021 and 2020, respectively. As of September 30, 2021, total deferred revenue was $ 31,644 thousands, mainly due to fees related to listing and optional feature services billed and loyalty programs that are expected to be recognized as revenue in the coming months. Digital Assets As of September 30, 2021, the Company had purchased an aggregate amount of $ 20,000 thousands in cryptocurrencies. The Company accounts for its digital assets — cryptocurrencies — as indefinite-lived intangible assets, in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company has ownership of and control over its digital assets and uses third-party custodial services to store its digital assets. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on the active exchange, indicate that any decrease in the fair values of the digital assets below the carrying values for such assets subsequent to their acquisition will result in a recognition of impairment charges. The Company considers the lowest price of the digital asset on the active exchange since the acquisition of the asset to perform the impairment analysis. MercadoLibre determines the fair value of its digital assets in accordance with ASC 820, Fair Value Measurement. Impairment losses are recognized in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. Repurchase of 2.00% Convertible Senior Notes due 2028 - Extinguishment of debt The derecognition of a convertible debt is based on the principle that an entity is extinguishing the liability component and reacquiring the equity component that was recognized at issuance. This approach is applied whether the debt was settled in cash, shares, other assets (or any combination), or at maturity upon conversion or upon early extinguishment. The settlement consideration is first allocated to the extinguishment of the liability component equal to the fair value of that component immediately prior to extinguishment. Any difference between that allocated amount and the net carrying amount of the liability component and unamortized debt issuance costs should be recognized as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. Any paid premium included in the repurchase price should be recognized as a loss when the debt is extinguished. Foreign currency translation All of the Company’s consolidated foreign operations use the local currency as 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. Argentine currency status As of July 1, 2018, the 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 immediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the US dollar, to make payments abroad, either for foreign debt or the importation 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 September 30, 2021 was 98.74 . 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 September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 (In thousands) Assets $ 1,890,225 $ 1,470,885 Liabilities 1,376,126 1,230,326 Net Assets $ 514,099 $ 240,559 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. 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. 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. Accordingly, 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. In connection with this assessment, Management considers, 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 that would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Based on Management’s assessment of available objective evidence and considering the future effect of the Company’s initiatives to capture long-term business opportunities, the Company accounted for a valuation allowance in certain subsidiaries in its Mexican operations of $ 44,011 thousands and $ 10,920 thousands for the nine and three-month periods ended September 30, 2021, respectively, and $ 24,840 thousands and $ 7,529 thousands for the nine and three-month periods ended September 30, 2020, 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. The regime was suspended on January 20, 2020 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 of 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. In August 2021, the Under Secretariat of Knowledge Economy issued the Disposition 316/2021 approving MercadoLibre S.R.L.’s application for eligibility under the knowledge-based economy promotional regime. Tax benefits granted pursuant to the promotional regime to MercadoLibre S.R.L. are retroactive to January 1, 2020. As a result, the Company accounted for an income tax benefit of $ 11,684 thousands during the nine and three-month periods ended September 30, 2021, which $ 8,038 thousands corresponded to the period ended December 31, 2020. The aggregate per share effect of the income tax benefit amounted to $ 0.23 and $ 0.24 for the nine and three-month periods ended September 30, 2021, respectively. Furthermore, the Company recorded a social security benefit of $ 35,977 thousands during the nine and three-month periods ended September 30, 2021, which $ 15,299 thousands corresponded to the period ended December 31, 2020. Given that the promotional regime establishes that exports of services by eligible companies are not subject to export duties, the Company recognized a gain of $ 23,999 thousands related to export duties accrued from January 2020 to August 2021 that are no longer required to be paid. Additionally, during the nine and three-month periods ended September 30, 2021, we accrued a charge of $ 3,177 thousands to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. Corporate income tax reform in Argentina In June 2021, Argentine Congress enacted Law 27,630, which increases corporate income tax rate for tax years beginning January 1, 2021, and onwards. The law replaced the 30 % fixed tax rate with a progressive tax scale that applies as follows: a) for accumulated net taxable income up to 5,000 thousands Argentine Pesos (roughly $ 52.2 thousands): 25 % tax rate on net taxable income, b) for accumulated net taxable income from 5,000 thousands Argentine Pesos to 50,000 thousands Argentine Pesos (roughly $ 522.4 thousands): a tax payment of 1,250 thousands Argentine Pesos (roughly $ 13.1 thousands) plus a 30 % tax rate on accumulated net taxable income on any amount exceeding 5,000 thousands Argentine Pesos, c) for accumulated net taxable income exceeding 50,000 thousands Argentine Pesos: a tax payment of 14,750 thousands Argentine Pesos (roughly $ 154.1 thousands) plus a 35 % tax rate on accumulated net taxable income on any amount exceeding 50,000 thousands Argentine Pesos. In addition, the new law permanently extended the 7 % withholding tax currently in force to dividend distributions. The mentioned thresholds will be subject to inflation adjustment from 2022 onwards. Fair value option applied to certain financial instruments Under ASC 825, 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 $ 5,083 thousands and $ 8,912 thousands as of September 30, 2021 and 2020, respectively. Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 502,052 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 6,520 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 546 ) 754 $ ( 496,078 ) $ ( 468,284 ) The following tables summarize the changes in accumulated balances of other comprehensive loss for the nine-months ended September 30, 2021: Unrealized Foreign Estimated tax (Losses) gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 6,185 ( 35,483 ) ( 346 ) ( 29,644 ) Amount of gains (loss) reclassified from accumulated other comprehensive income (loss) 2,804 — ( 954 ) 1,850 Net current period other comprehensive income (loss) 8,989 ( 35,483 ) ( 1,300 ) ( 27,794 ) Ending balance $ 6,520 $ ( 502,052 ) $ ( 546 ) $ ( 496,078 ) Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 2,804 ) Cost of net revenues Estimated tax benefit on unrealized losses 954 Income tax expense Total reclassifications for the period $ ( 1,850 ) Total, net of income taxes Use of estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowances for doubtful accounts and chargeback provisions, allowance for loans receivables, 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. Recently Adopted Accounting Standards 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 adoption of this standard did not have a material impact on the Company´s financial statements. Recently issued accounting pronouncements not yet adopted On October 28, 2021 the FASB issued the ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The amendments in this update improve comparability for the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by specifying for all acquired revenue contracts regardless of their timing of payment (1) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (2) how to measure those contract assets and contract liabilities. The amendments provide consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. 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 expects the primary impacts of this new standard will be to increase the carrying value of the 2028 Notes roughly $ 123,000 thousands and a decrease of deferred tax liability roughly $ 26,000 thousands. In addition, the Company will reduce its reported interest expense and will be required to use the if-converted method for calculating diluted earnings per share. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | 3. Net income per share Basic earnings per share for the Company’s common stock is computed by dividing, net income available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the period. On August 24, 2018 and August 31, 2018 the Company issued an aggregate principal amount of $ 880 million of 2.00 % Convertible Senior Notes due 2028 (see Note 11 to these interim condensed consolidated financial statements). The conversion of these notes are included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of these Notes is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. Additionally, on March 29, 2019 the Company issued Preferred Stock. The conversion of Preferred Stock was included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of the redeemable convertible preferred stock was not assumed for purposes of computing diluted earnings per share if the effect was antidilutive. The denominator for diluted net income per share for the nine and three-month periods ended September 30, 2021 and 2020 does not include any effect from the 2028 Notes Capped Call Transactions (as defined in Note 11) 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 11) are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes. S ee Note 11 to these interim condensed consolidated financial statements and Note 16 to the financial statements for the year ended December 31, 2020, contained in the Company ’s Annual Report on Form 10-K filed with the SEC for more details. For the nine and three-month periods ended September 30, 2021 and 2020 , the effects of the conversion of the Notes and the redeemable convertible preferred stock would have been antidilutive and, as a consequence, they were not factored into the calculation of diluted earnings per share. Net income per share of common stock is as follows for the nine and three-month periods ended September 30, 2021 and 2020: Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income per common share $ 2.60 $ 2.60 $ 0.94 $ 0.94 $ 1.92 $ 1.92 $ 0.28 $ 0.28 Numerator: Net income $ 129,408 $ 129,408 $ 49,873 $ 49,873 $ 95,225 $ 95,225 $ 15,035 $ 15,035 Dividends on preferred stock — — ( 2,928 ) ( 2,928 ) — — ( 928 ) ( 928 ) Net income corresponding to common stock $ 129,408 $ 129,408 $ 46,945 $ 46,945 $ 95,225 $ 95,225 $ 14,107 $ 14,107 Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,761,360 — 49,713,621 — 49,597,157 — 49,720,854 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,761,360 — 49,713,621 — 49,597,157 — 49,720,854 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments [Abstract] | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | 4. Cash, cash equivalents, restricted cash and cash equivalents and investments The composition of cash, cash equivalents, restricted cash and cash equivalents, short-term and long-term investments is as follows: September 30, December 31, 2021 2020 (In thousands) Cash and cash equivalents $ 987,213 $ 1,856,394 Restricted cash and cash equivalents Securitization Transactions $ 150,102 $ 249,872 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 144,249 Bank account (Argentine Central Bank regulation) 269,781 237,511 Bank collateral account (Secured lines of credit guarantee) — 574 Money Market Funds (Secured lines of credit guarantee) 15,399 19,469 Cash in bank account 66 155 Total restricted cash and cash equivalents $ 435,348 $ 651,830 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 1,422,561 $ 2,508,224 Short-term investments Time Deposits $ 36,857 $ 158,818 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 739,002 565,705 Sovereign Debt Securities (Secured lines of credit guarantee) — 71,244 Sovereign Debt Securities 265,835 445,539 Securitization Transactions 174 — Total short-term investments $ 1,041,868 $ 1,241,306 Long-term investments Sovereign Debt Securities $ 10,320 $ 150,054 Securitization Transactions (**) 4,828 — Joint venture 5,107 — Other Investments 17,772 16,057 Total long-term investments $ 38,027 $ 166,111 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow (**) Long-term investments from securitization transactions are restricted to the payment of amounts due to third-party investors. 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 September 30, 2021, in accordance with the regulation, the Company held $ 269,781 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 was registered in the "Registry of other non-financial loan providers" on December 1, 2020 and complied with a periodic information report within the framework of a monthly information regime as from March 1, 2021. In turn, the CBA established 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) communication by electronic means for the care of the environment. 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 September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, in accordance with the regulation, the Company held $ 739,002 thousands and $ 709,954 thousands deposited in Brazilian federal government bonds, respectively, as a mandatory guarantee (the “Central Bank of Brazil Mandatory Guarantee”). |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2021 | |
Loans Receivable, Net [Abstract] | |
Loans Receivable, Net | 5. Loans receivable, net The Company manages loans receivable as “On-line merchant”, “Consumer”, “In-store merchant” and “Credit Cards”. As of September 30, 2021 and December 31, 2020, Loans receivable, net were as follows: September 30, December 31, 2021 2020 (In thousands) On-line merchant $ 302,094 $ 180,063 Consumer 589,434 237,956 In-store merchant 154,083 61,452 Credit Cards 81,049 — Loans receivable 1,126,660 479,471 Allowance for uncollectible accounts ( 322,723 ) ( 77,816 ) Loans receivable, net $ 803,937 $ 401,655 The credit quality analysis of loans receivable was as follows: September 30, December 31, 2021 (1) 2020 (In thousands) 1-30 days past due $ 58,494 $ 34,706 31-60 days past due 31,651 16,977 61 -90 days past due 25,287 13,239 91 -120 days past due 25,930 10,632 121 -150 days past due 24,993 5,315 151 -180 days past due 22,600 3,649 181 -210 days past due 25,450 — 211 -240 days past due 27,627 — 241 -270 days past due 25,509 — 271 -300 days past due 18,992 — 301 -330 days past due 15,578 — 331 -360 days past due 12,191 — Total past due 314,302 84,518 To become due 812,358 394,953 Total $ 1,126,660 $ 479,471 (1) As from April 1, 2021, the Company writes off loans when customer balance becomes 360 days past due. The following table summarizes the allowance for uncollectible accounts activity during the nine-month period ended September 30, 2021 and 2020: September 30, 2021 2020 (In thousands) Balance at beginning of year $ 77,816 $ 20,444 Adoption of ASC 326 (1) — 4,977 Charged/credited to Net Income 271,792 49,033 Charges/Utilized /Currency translation adjustments/Write-offs (2) ( 26,885 ) ( 44,452 ) Balance at end of period $ 322,723 $ 30,002 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 . (2) As from April 1, 2021, the Company writes off loans when customer balance becomes 360 days past due. |
Business Combinations, Goodwill
Business Combinations, Goodwill And Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 6. Business combinations, g oodwill 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 amounted to $ 1,931 thousands for the period ended September 30, 2021. 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: September 30, December 31, 2021 2020 (In thousands) Goodwill $ 80,949 $ 85,211 Intangible assets with indefinite lives - Trademarks 7,234 7,751 - Digital assets (1) 12,259 — Amortizable intangible assets - Licenses and others 10,360 4,932 - Non-compete agreement 3,348 3,426 - Customer list 12,665 14,010 - Trademarks 7,612 7,879 - Others 3,436 — Total intangible assets $ 56,914 $ 37,998 Accumulated amortization ( 26,205 ) ( 23,843 ) Total intangible assets, net $ 30,709 $ 14,155 (1) Digital assets are net of $ 7,741 thousands of impairment losses accounted for in General and Administrative expenses during the nine-month period ended September 30, 2021. Goodwill The changes in the carrying amount of goodwill for the nine-month period ended September 30, 2021 and the year ended December 31, 2020 are as follows: Nine Months Ended September 30 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Effect of exchange rates changes ( 690 ) — ( 1,097 ) ( 2,013 ) ( 383 ) ( 79 ) ( 4,262 ) Balance, end of the period $ 19,072 $ 10,594 $ 30,600 $ 14,983 $ 4,007 $ 1,693 $ 80,949 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 Intangible assets with definite useful life Intangible assets with definite useful life are comprised of customer lists, non-compete and non-solicitation agreements, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets totaled $ 1,630 thousands and $ 1,476 thousands for the three-month periods ended September 30, 2021 and 2020, respectively, while aggregate amortization expense for intangible assets for the nine-month periods ended September 30, 2021 and 2020 amounted to $ 4,268 thousands and $ 3,995 thousands, respectively. The following table summarizes the remaining amortization of intangible assets (in thousands of U.S. dollars) with definite useful life as of September 30, 2021 : For year ended 12/31/2021 $ 1,213 For year ended 12/31/2022 4,551 For year ended 12/31/2023 4,084 For year ended 12/31/2024 1,288 Thereafter 80 $ 11,216 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 7. Segment reporting Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed and resources are assigned, the criteria used by Management to evaluate the Company’s performance, the availability of separate financial information and overall materiality considerations. Segment reporting is based on geography as the main basis of segment breakdown in accordance with the criteria, as determined by Management, used to evaluate the Company’s performance. The Company’s segments include Brazil, Argentina, Mexico and other countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Honduras, Nicaragua, El Salvador, Bolivia, Guatemala, Panama, Paraguay, Peru, Uruguay 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 following tables summarize the financial performance of the Company’s reporting segments: Nine Months Ended September 30, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 2,782,433 $ 1,056,410 $ 780,069 $ 319,731 $ 4,938,643 Direct costs ( 2,170,163 ) ( 674,214 ) ( 767,081 ) ( 247,454 ) ( 3,858,912 ) Direct contribution 612,270 382,196 12,988 72,277 1,079,731 Operating expenses and indirect costs of net revenues ( 662,344 ) Income from operations 417,387 Other income (expenses): Interest income and other financial gains 84,588 Interest expense and other financial losses ( 175,026 ) Foreign currency losses ( 52,382 ) Net income before income tax expense $ 274,567 Nine Months Ended September 30, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,473,466 $ 656,825 $ 371,085 $ 144,785 $ 2,646,161 Direct costs ( 1,148,926 ) ( 465,806 ) ( 370,229 ) ( 115,759 ) ( 2,100,720 ) Direct contribution 324,540 191,019 856 29,026 545,441 Operating expenses and indirect costs of net revenues ( 392,623 ) Income from operations 152,818 Other income (expenses): Interest income and other financial gains 80,119 Interest expense and other financial losses ( 75,083 ) Foreign currency losses ( 32,524 ) Net income before income tax expense $ 125,330 Three Months Ended September 30, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,062,620 $ 393,109 $ 291,496 $ 110,227 $ 1,857,452 Direct costs ( 831,656 ) ( 253,069 ) ( 284,751 ) ( 91,886 ) ( 1,461,362 ) Direct contribution 230,964 140,040 6,745 18,341 396,090 Operating expenses and indirect costs of net revenues ( 235,712 ) Income from operations 160,378 Other income (expenses): Interest income and other financial gains 35,352 Interest expense and other financial losses ( 44,395 ) Foreign currency losses ( 25,202 ) Net income before income tax expense $ 126,133 Three Months Ended September 30, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 610,721 $ 284,746 $ 150,382 $ 69,852 $ 1,115,701 Direct costs ( 501,544 ) ( 193,373 ) ( 144,914 ) ( 53,212 ) ( 893,043 ) Direct contribution 109,177 91,373 5,468 16,640 222,658 Operating expenses and indirect costs of net revenues ( 139,584 ) Income from operations 83,074 Other income (expenses): Interest income and other financial gains 24,553 Interest expense and other financial losses ( 24,522 ) Foreign currency losses ( 30,435 ) Net income before income tax expense $ 52,670 The following table summarizes the allocation of property and equipment, net based on geography: September 30, December 31, 2021 2020 (In thousands) US property and equipment, net $ 1,518 $ 586 Other countries Argentina 163,517 123,589 Brazil 334,222 171,409 Mexico 155,609 73,315 Other countries 47,662 22,785 $ 701,010 $ 391,098 Total property and equipment, net $ 702,528 $ 391,684 The following table summarizes the allocation of the goodwill and intangible assets based on geography: September 30, December 31, 2021 2020 (In thousands) US intangible assets $ 12,259 $ — Other countries goodwill and intangible assets Argentina 15,909 12,617 Brazil 19,102 19,958 Mexico 33,776 35,338 Chile 20,945 24,707 Other countries 9,667 6,746 $ 99,399 $ 99,366 Total goodwill and intangible assets $ 111,658 $ 99,366 Consolidated net revenues by similar products and services for the nine and three-month periods ended September 30, 2021 and 2020 were as follows: Nine Months Ended September 30, Three Months Ended September 30, Consolidated Net Revenues 2021 2020 2021 2020 (In thousands) (In thousands) Commerce $ 3,277,649 $ 1,686,879 $ 1,224,699 $ 724,466 Fintech 1,660,994 959,282 632,753 391,235 Total $ 4,938,643 $ 2,646,161 $ 1,857,452 $ 1,115,701 |
Fair Value Measurement Of Asset
Fair Value Measurement Of Assets And Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Fair Value Measurement Of Assets And Liabilities | 8. Fair value measurement of assets and liabilities The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020: Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable September 30, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2021 (Level 1) (Level 2) (Level 3) 2020 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 321,286 $ 321,286 $ — $ — $ 166,483 $ 166,483 $ — $ — Sovereign Debt Securities — — — — 37,654 37,654 — — Restricted Cash and cash equivalents: Money Market Funds 118,708 118,708 — — 257,695 257,695 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 144,249 144,249 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 739,002 739,002 — — 565,705 565,705 — — Sovereign Debt Securities 281,157 281,157 — — 666,837 666,837 — — Other Assets: Derivative Instruments 12,390 — — 12,390 199 — — 199 Total Financial Assets $ 1,472,543 $ 1,460,153 $ — $ 12,390 $ 1,838,822 $ 1,838,623 $ — $ 199 Liabilities: Contingent considerations $ 4,755 $ — $ — $ 4,755 $ 4,622 $ — $ — $ 4,622 Long-term retention plan 106,626 — 106,626 — 136,816 — 136,816 — Derivative Instruments 1,478 — — 1,478 13,964 — — 13,964 Total Financial Liabilities $ 112,859 $ — $ 106,626 $ 6,233 $ 155,402 $ — $ 136,816 $ 18,586 As of September 30, 2021 and December 31, 2020, 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. As of September 30, 2021 and December 31, 2020 , the Company ’s liabilities were valued at fair value using Level 2 inputs and Level 3 inputs (valuations based on unobservable inputs reflecting Company assumptions). Fair value of contingent considerations are determined based on the probability of achievement of the performance targets arising from each acquisition, as well as the Company’s historical experience with similar arrangements. Fair value of derivative instruments are determined considering the prevailing risk free interest rate and spot exchange rate. As of September 30, 2021 and December 31, 2020, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value mainly because of their 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 payment, 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 considerations and derivative instruments) . As of September 30, 2021 and December 31, 2020, the estimated fair value of the 2028 Notes (liability component), which is based on Level 2 inputs, is $ 329,802 thousands and $ 672,345 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 effective 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 September 30, 2021 and December 31, 2020: Balances as of Significant other Balances as of Significant other September 30, observable inputs December 31, observable inputs 2021 (Level 2) 2020 (Level 2) (In thousands) Assets Time Deposits $ 36,857 $ 36,857 $ 158,818 $ 158,818 Accounts receivable, net 70,542 70,542 49,691 49,691 Credit Cards receivable and other means of payment, net 1,428,454 1,428,454 863,073 863,073 Loans receivable, net 803,937 803,937 401,655 401,655 Other assets 389,479 389,479 236,432 236,432 Total Assets $ 2,729,269 $ 2,729,269 $ 1,709,669 $ 1,709,669 Liabilities Accounts payable and accrued expenses $ 906,393 $ 906,393 $ 767,336 $ 767,336 Funds payable to customers and amounts due to merchants 1,987,083 1,987,083 1,733,095 1,733,095 Salaries and social security payable 193,554 193,554 120,394 120,394 Taxes payable 196,561 196,561 215,918 215,918 Loans payable and other financial liabilities (*) 2,735,528 2,756,329 1,409,269 1,479,165 Other liabilities 99,102 99,102 110,139 110,139 Total Liabilities $ 6,118,221 $ 6,139,022 $ 4,356,151 $ 4,426,047 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. As of September 30, 2021 and December 31, 2020 , 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. As of September 30, 2021 and December 31, 2020 , the fair value of money market funds and sovereign debt securities classified as available for sale securities are as follows: September 30, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 321,286 $ — $ — $ 321,286 Total Cash and cash equivalents $ 321,286 $ — $ — $ 321,286 Restricted cash and cash equivalents Money Market Funds $ 118,708 $ — $ — $ 118,708 Total Restricted cash and cash equivalents $ 118,708 $ — $ — $ 118,708 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 734,275 $ 4,727 $ — $ 739,002 Sovereign Debt Securities (1) 265,825 185 ( 1 ) 266,009 Total Short-term investments $ 1,000,100 $ 4,912 $ ( 1 ) $ 1,005,011 Long-term investments Sovereign Debt Securities (1) $ 14,976 $ 302 $ ( 130 ) $ 15,148 Total Long-term investments $ 14,976 $ 302 $ ( 130 ) $ 15,148 Total $ 1,455,070 $ 5,214 $ ( 131 ) $ 1,460,153 (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.) 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.) As of September 30, 2021 , the estimated fair values (in thousands of U.S. dollars) of money market funds and sovereign debt securities classified by their effective maturities are as follows: One year or less 1,445,005 Two years to three years 5,673 Three years to four years 3,888 Four years to five years 670 More than five years 4,917 Total $ 1,460,153 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. 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 September 30, 2021 , the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $ 10,341 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 September 30, 2021, 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 estimated aggregate amount up to $ 61,115 thousands. No loss amounts have been accrued for such reasonably possible legal actions. Brazilian preliminary injunction against the Brazilian tax authorities On November 6, 2014, the Brazilian subsidiaries, Mercadolivre.com Atividades de Internet Ltda., Ebazar.com.br Ltda., Mercado Pago.com Representações Ltda. and the Argentine subsidiary, MercadoLibre 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 MercadoLibre 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 an award favorable to the federal tax authority. The Company appealed the decision and deposited with the court the disputed amounts. As of September 30, 2021 the total amount of the deposits were $ 99,129 thousands (which includes $ 5,767 thousands of interest). Such amounts are 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. On March 18, 2021 the Company filed an appeal with the superior courts, which is now pending. 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 based on the technical merits of the Company’s 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 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 2016 fiscal year, with respective penalties and fines. In these assessments, the tax authorities do not recognize certain expenses incurred 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. The tax authorities concluded that the Brazilian entities failed to submit sufficient evidence during the tax assessment that these services were necessary and effectively hired and paid by the Brazilian subsidiaries. The tax assessments that MercadoPago.com Representações Ltda. and Ebazar.com.br Ltda. received amounted to a total of $ 14,734 thousands and $ 12,021 thousands, respectively. The subsidiaries filed their defenses on December 1, 2020 and December 8, 2020, respectively, arguing that the agreements and other documentation were submitted as evidence during the tax assessment. The defenses were also complemented by specific descriptions for each project that was impacted by such services to justify the necessity of all the expenses in dispute. On May 25, 2021, MercadoPago.com received an unfavorable decision from the administrative court in the first instance, and on June 28, 2021, Ebazar.com.br also received an unfavorable decision from the administrative court in the first instance. The Companies filed appeals in respect of both cases with the administrative court in the second instance, which are now pending. The 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 in both cases, 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 claims Other third parties have from time to time claimed, and others may claim in the future, that the Company was responsible for fraud committed against them, or that the Company has infringed their intellectual property rights. The underlying laws with respect to the potential liability of online intermediaries like the Company are unclear in the jurisdictions where the Company operates. Management believes that additional lawsuits alleging that the Company has violated copyright or trademark laws will be filed against the Company in the future. Intellectual property and regulatory claims, whether meritorious or not, are time consuming and costly to resolve, require significant amounts of management time, could require expensive changes in the Company’s methods of doing business, or could require the Company to enter into costly royalty or licensing agreements. The Company may be subject to patent disputes, and be subject to patent infringement claims as the Company’s services expand in scope and complexity. In particular, the Company may face additional patent infringement claims involving various aspects of the payments businesses. From time to time, the Company is involved in other disputes or regulatory inquiries that arise in the ordinary course of business. The number and significance of these disputes and inquiries are increasing as the Company’s business expands and the Company grows larger. 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”). 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. 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 September 30, 2021 and December 31, 2020, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $ 2,649,896 thousands and $ 2,535,041 thousands, respectively, for which the Company recorded an allowance of $ 4,557 thousands and $ 8,364 thousands , respectively. Commitments The Company committed to purchase cloud platform services from two U.S. suppliers based on the following terms: a) for a total amount of $ 240,500 thousands to be fully paid off between June 1, 2020 and May 31, 2024. As of September 30, 2021, the Company had paid $ 155,162 thousands in relation thereto. In September 2021, the Company amended this commitment whereby, effective as of October 1, 2021, the aggregate purchase commitment is $ 824,000 thousands, to be fully paid off between October 1, 2021 and September 30, 2026; 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 September 30, 2021, the Company paid $ 15,501 thousands in relation thereto. In September 2021, the Company amended this commitment whereby, effective as of September 17, 2021, the aggregate purchase commitment is $ 108,000 thousands, to be fully paid off between September 17, 2021 and September 17, 2024. |
Long Term Retention Program
Long Term Retention Program | 9 Months Ended |
Sep. 30, 2021 | |
Long Term Retention Program [Abstract] | |
Long Term Retention Program | 10. Long term retention program (“LTRP”) The following table summarizes the 2012, 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 long term retention program accrued compensation expense for the nine and three-month periods ended September 30, 2021 and 2020, which are payable in cash according to the decisions made by the Board of Directors: Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) LTRP 2012 — 69 — — LTRP 2014 — 125 — — LTRP 2015 178 6,338 — 1,453 LTRP 2016 3,811 13,010 2,421 2,955 LTRP 2017 5,653 13,892 3,540 3,332 LTRP 2018 3,424 6,941 2,006 1,578 LTRP 2019 23,883 16,061 8,663 5,741 LTRP 2020 26,150 18,706 8,658 8,176 LTRP 2021 20,873 — 7,759 — Total LTRP $ 83,972 $ 75,142 $ 33,047 $ 23,235 |
Loans Payable And Other Financi
Loans Payable And Other Financial Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Loans Payable And Other Financial Liabilities [Abstract] | |
Loans Payable And Other Financial Liabilities | 11. Loans payable and other financial liabilities The following table summarizes the Company’s Loans payable and other financial liabilities as of September 30, 2021 and December 31, 2020: Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity September 30, 2021 December 31, 2020 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.86 % October 2021 $ 51,115 $ 92,895 Brazilian Subsidiary Brazilian Reais — — % — — 142,178 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % October 2021 - July 2022 60,077 — Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % May 2022 33,167 18,418 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % March 2022 17,835 — Argentine Subsidiary Argentine Pesos Fixed 38.75 % October 2021 20,492 14,400 Argentine Subsidiary Argentine Pesos Fixed 38.50 % October 2021 20,469 — Uruguayan Subsidiary Uruguayan Pesos Fixed 6.30 % December 2021 8,154 — Uruguayan Subsidiary Uruguayan Pesos Fixed 6.14 % October 2021 15,713 13,406 Chilean Subsidiary Chilean Pesos Fixed 2.46 % October 2021 - September 2022 1,503 — Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 34.11 % October 2021 57,759 18,311 Argentine Subsidiary Argentine Pesos Fixed 36.65 % October 2021 20,460 — Brazilian Subsidiary Brazilian Reais — — % — — 58,437 Mexican Subsidiary Mexican Peso Fixed 10.02 % October 2021 - September 2022 3,362 — Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 6.47 % October 2021 18,694 20,055 Argentine Subsidiary Argentine Pesos — — % — — 116,140 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 98 % to 129 % of CDI October 2021 - September 2022 358,084 — 2028 Notes 1,127 6,649 2026 Sustainability Notes 2,006 — 2031 Notes 4,618 — Finance lease obligations 9,476 7,394 Credit card collateralized debt 1,976 12,920 Collateralized debt 58,743 25,342 Other lines of credit 305 1,848 $ 765,135 $ 548,393 Non Current loans payable and other financial liabilities: 2028 Notes 307,874 595,800 2026 Sustainability Notes 396,650 — 2031 Notes 693,638 — Financial Bills Brazilian Subsidiary CDI + 1.10 % July 2023 93,130 — Finance lease obligations 31,793 16,261 Collateralized debt 421,859 248,815 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % October 2022 - April 2025 4,047 — Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 4,136 — Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 10.02 % October 2022 - July 2026 16,758 — Other lines of credit 508 — $ 1,970,393 $ 860,876 See Notes 12 and 13 to these interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively. 2.375% Sustainability Senior Notes Due 2026 and 3.125% Senior Notes Due 2031 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 . In connection with the Notes, the Company capitalized $ 10,647 thousands of debt issuance costs, which are amortized during the term of the Notes. 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. On October 27, 2021, MercadoLibre, S. de R.L. de C.V. became an excluded subsidiary pursuant to the terms of the Notes and it was released from its Subsidiary Guaranty. On October 27, 2021, MP Agregador, S. de R.L. de C.V. became a Subsidiary Guarantor under the Notes. 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. 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 issued an additional $ 80,000 thousands of notes on August 31, 2018 pursuant to the partial exercise of the initial purchasers’ option to purchase such additional notes, for 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. 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. For additional information regarding the 2028 Notes please refer to Note 2 and Note 16 to the audited consolidated financial statements for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the SEC. During the nine-month period ended September 30, 2021, 901 Notes were converted, for a total amount of $ 901 thousands. The determination of whether or not the Notes are convertible must be performed on a quarterly basis. The Company reconfirmed during the third quarter of 2021 that the conversion threshold was met and the Notes remain eligible for conversion. As of the date of issuance of these interim condensed consolidated financial statements, the Company did not receive additional requests for conversion. The Company has entered into capped call transactions with respect to shares of its common stock with certain financial institutions (the “2028 Notes Capped Call Transactions”). 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 and lower than the cap price of the 2028 Notes Capped Call Transactions. The amounts the Company has paid, including transaction expenses, are $ 91,784 thousands (August 2018), $ 11,472 thousands (November 2018), $ 88,362 thousands (June 2019), $ 104,095 thousands (June 2020), $ 82,682 thousands (August 2020), $ 120,012 thousands (November 2020) and $ 100,769 thousands (January 2021). 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 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. In June and August 2021, the Company terminated certain of its 2028 Notes Capped Call Transactions and received as consideration $ 102,382 thousands in cash and 57,047 shares of Common Stock, and $ 294,357 thousands in cash and 89,978 shares of Common Stock, respectively. Cash proceeds of terminating certain of the 2028 Notes Capped Call Transactions in June and August 2021 were used to repurchase 71,175 shares and 158,413 shares of Common Stock, respectively. In January 2021, the Company repurchased $ 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. The settlement consideration was first allocated to the extinguishment of the liability component of the 2028 Notes repurchased. The difference of $ 29,953 thousands between the fair value of the liability component and the net carrying amount of the liability component and unamortized debt issuance costs was recognized as a loss on debt extinguishment; in addition, $ 19,294 thousands paid as a premium was recognized as a loss in Interest expense and other financial losses line in the consolidated statement of income in January 2021. The remaining consideration of $ 1,484,279 thousands (net of income tax effects) was allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. The total estimated fair value of the 2028 Notes was $ 1,690,241 thousands and $ 3,416,819 thousands as of September 30, 2021 and December 31, 2020, 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 September 30, 2021 and December 31, 2020 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 $ 1,679.40 closing price of the Company’s common stock on September 30, 2021 , the if-converted value of the 2028 Notes exceeded their principal amount by $ 1,223,991 thousands. The following table presents the carrying amounts of the liability and equity components related to the 2028 Notes as of September 30, 2021 and December 31, 2020 : September 30, 2021 December 31, 2020 (In thousands) Amount of the equity component (1) $ 163,653 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 439,092 $ 879,993 Unamortized debt discount (2) ( 127,029 ) ( 275,299 ) Unamortized transaction costs related to the debt component ( 4,189 ) ( 8,894 ) Contractual coupon interest accrual 48,638 41,409 Contractual coupon interest payment ( 47,511 ) ( 34,760 ) Net carrying amount $ 309,001 $ 602,449 (1) Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of September 30, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.0 years. The following table presents the interest expense for the contractual interest, the accretion of debt discount and the amortization of debt issuance costs: Nine month periods ended September 30, Three month periods ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Contractual coupon interest expense $ 7,229 $ 13,200 $ 2,196 $ 4,400 Amortization of debt discount 11,315 19,269 3,511 6,542 Amortization of debt issuance costs 270 421 86 146 Total interest expense related to the 2028 Notes $ 18,814 $ 32,890 $ 5,793 $ 11,088 |
Securitization Transactions
Securitization Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Securitization Transactions [Abstract] | |
Securitization Transactions | 12. 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 determined 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 does not control the vehicle, its assets, liabilities, and related results are not consolidated in the Company’s financial statements. Additionally, the Company intends 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 vehicle, the assets, liabilities, and related results are consolidated in its financial statements. 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 September 30, 2021: SPEs Collateralized debt as of September 30, 2021 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 134,763 DI plus 2.5 % Brazilian Reais May 2024 Fundo de Investimento Em DireitosCreditórios Arandu 182,661 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 18,506 CDI + 3.5 % Brazilian Reais August 2023 Mercado Crédito IX 1,998 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos February 2022 Mercado Crédito X 10,621 Badlar rates plus 200 basis points with a min 30 % and a max 45 % Argentine Pesos June 2022 Mercado Crédito Consumo IV 6,468 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos January 2022 Mercado Crédito XI 9,838 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo V 13,304 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos June 2022 Mercado Crédito Consumo VI 13,836 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Fideicomiso de administración y fuente de pago CIB/3369 88,607 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 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 are included in the Company’s interim condensed consolidated financial statements as of September 30, 2021 and December 31, 2020 as follows: September 30, December 31, 2021 2020 Assets (In thousands) Current assets: Restricted cash and cash equivalents $ 150,102 $ 249,872 Short-term investments 174 — Credit cards receivable and other means of payments, net 169,753 — Loans receivable, net 428,571 113,846 Total current assets 748,600 363,718 Non-current assets: Long-term investments 4,828 — Loans receivable, net 24,175 9,581 Total non-current assets 29,003 9,581 Total assets $ 777,603 $ 373,299 Liabilities Current liabilities: Accounts payable and accrued expenses $ 300 $ 100 Loans payable and other financial liabilities 58,743 25,342 Total current liabilities 59,043 25,442 Non-current liabilities: Loans payable and other financial liabilities 421,859 248,815 Total non-current liabilities 421,859 248,815 Total liabilities $ 480,902 $ 274,257 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 13. Leases The Company leases certain fulfillment, cross-docking and services centers, office space, machines 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: September 30, December 31, 2021 2020 Operating Leases (In thousands) Operating lease right-of-use assets $ 389,806 $ 303,214 Operating lease liabilities $ 391,010 $ 298,847 Finance Leases Property and equipment, at cost 60,890 29,798 Accumulated depreciation ( 10,808 ) ( 4,086 ) Property and equipment, net $ 50,082 $ 25,712 Loans payable and other financial liabilities $ 41,269 $ 23,655 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 September 30, 2021: Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 8 % Finance leases 14 % (*) Includes discount rates of leases in local currency and U.S dollar . The components of lease expense were as follows: Nine months ended September 30, 2021 2020 (In thousands) Operating lease cost $ 55,668 $ 29,941 Finance lease cost: Depreciation of property and equipment 6,782 1,564 Interest on lease liabilities 3,377 1,199 Total finance lease cost $ 10,159 $ 2,763 Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 51,403 $ 28,705 Financing cash flows from finance leases 12,612 2,499 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 137,569 $ 73,340 Finance leases 28,728 1,487 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 September 30, 2021 Operating Leases Finance Leases (In thousands) One year or less $ 86,736 $ 14,716 One year to two years 84,234 14,488 Two years to three years 79,631 13,566 Three years to four years 70,779 7,462 Four years to five years 48,916 2,385 Thereafter 123,510 1,409 Total lease payments $ 493,806 $ 54,026 Less imputed interest ( 102,796 ) ( 12,757 ) Total $ 391,010 $ 41,269 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 14. Derivative instruments Cash Flow Hedge As of September 30, 2021 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. 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 September 30, 2021, 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. Net Investment Hedge The Company used a cross currency swap contract, which matures in 2024, to reduce the foreign currency exchange risk related to its investment in its Brazilian foreign subsidiary. This derivative was designated as a net investment hedge and, accordingly, gain and loss was reported as a component of accumulated other comprehensive income. The accumulated gains and losses associated with this instrument will remain in other comprehensive income until the foreign subsidiary is sold or substantially liquidated, at which point they will be reclassified into earnings. Derivative instruments not designated as hedging instruments As of September 30, 2021, 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 certain of its Brazilian and Mexican subsidiaries, whose functional currencies are the Brazilian Reais and Mexican Peso, respectively. These transactions were not designated as hedges for accounting purposes. In addition, the Company entered into full cross currency swap contracts to hedge the interest rate fluctuation and foreign currency fluctuations of its financial debt nominated in U.S. dollars held by its Brazilian subsidiaries. These transactions were not designated as hedges for accounting purposes. Finally, as of September 30, 2021, the Company entered into swap contracts to hedge the interest rate fluctuation of its financial debt related to its credit cards receivable securitization transactions in Brazil. These transactions were not designated as hedges for accounting purposes. The following table presents the notional amounts of the Company’s outstanding derivative instruments: Notional Amount as of September 30, 2021 (In thousands) Designated as hedging instrument Foreign exchange contracts $ 89,159 Cross currency swap contract $ 94,125 Not designated as hedging instrument Foreign exchange contracts $ 69,000 Interest rate contracts $ 183,658 Cross currency swap contract $ 60,000 Foreign exchange contracts The fair values of the Company’s outstanding derivative instruments as of September 30, 2021 and December 31, 2020 were as follows: September 30, December 31, Balance sheet location 2021 2020 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 2,623 $ 199 Cross currency swap Contract designated as net investment hedge Other current assets 5,167 — Cross currency swap contract not designated as hedging instrument Other current assets 2,194 — Foreign exchange contracts designated as cash flow hedges Other current assets 2,406 — Foreign exchange contracts not designated as hedging instruments Other current liabilities 551 11,106 Foreign exchange contracts designated as cash flow hedges Other current liabilities 927 2,858 The effects of derivative contracts on unaudited interim condensed consolidated of comprehensive income as of September 30, 2021 were as follows: Amount of Amount of (gain) loss reclassified December 31, Gain (Loss) recognized from accumulated September 30, 2020 in other comprehensive loss other comprehensive loss 2021 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 2,469 ) $ 1,018 $ 2,804 $ 1,353 Cross currency swap contract designated as net investment hedge — 5,167 — 5,167 ( 2,469 ) 6,185 2,804 6,520 The effects of derivative contracts on unaudited interim condensed consolidated statement of income for the nine and three-month periods ended September 30, 2021 and 2020 were as follows: Nine month periods ended September 30, Three month periods ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net $ ( 3,590 ) $ 26,535 $ 7,396 $ 4,709 Cross currency swap contract not designated as hedging instrument recognized in foreign exchange 2,688 — 2,688 — Interest rate contracts not designated as hedging instruments recognized in interest and other, net 30 — ( 157 ) — |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2021 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 15. Share repurchase program On August 30, 2020, the Board of Directors of MercadoLibre (“the Board”) authorized the Company to repurchase shares of the Company’s common stock, par value $ 0.001 per share (the “Common Stock”), for aggregate consideration of up to $ 350,000 thousands. The share repurchase program expired on August 31, 2021 . On August 4, 2021, the Board authorized the Company to repurchase shares of the Company’s common stock, for aggregate consideration of up to $ 150,000 thousands. This authorization, which replaced and superseded the previous authorization, expires on August 31, 2022 . 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 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 September 30, 2021, the Company had acquired 82,843 shares under the aforementioned share repurchase programs. On June 7, 2021, the Board authorized the use of part or all of the cash proceeds of terminating certain of its 2028 Notes Capped Call Transactions to repurchase shares of common stock. The Board’s authorization is in addition to the share repurchase authorization referred to above. Under this authorization the Company had acquired 229,588 shares. From time to time, the Company acquires shares of its own common stock in the Argentine market and pays for them in Argentine pesos at a price that reflects the additional cost of accessing 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 $ 37,653 thousands and $ 6,653 thousands for the nine and three-month period ended September 30, 2021. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Event [Abstract] | |
Subsequent Event | 16. Subsequent Event Acquisition of a delivery company in Brazil On November 3, 2021, the Company, through its subsidiary Ebazar.com.br, completed the acquisition of 100 % of the equity interest of Kangu Participações S.A and its subsidiaries, a logistics technology platform which connects sellers, e-commerce companies, transporters, third-party logistics providers and consumers through its vertically integrated network of drop-off and pick-up points throughout Brazil, Mexico and Colombia. The Company is located and organized under the laws of Brazil. As of the date of issuance of these unaudited interim condensed consolidated, the Company is working on the analysis of the purchase price allocation of the transaction. Special Purpose Acquisition Company In May 2021, the Company, through its subsidiary MELI Capital Ventures LLC, formed MELI Kaszek Pioneer Sponsor LLC (the “Sponsor”) as a joint venture with Kaszek to sponsor a special purpose acquisition company named MELI Kaszek Pioneer Corp (“MEKA”), which on October 1, 2021, completed its initial public offering of 28,750,000 Class A ordinary shares at a price of $ 10 per share. Simultaneously, MEKA consummated with the Sponsor a private placement of 975,000 Class A ordinary shares at a price of $ 10 per share. MEKA is a newly-incorporated Cayman Islands exempted company structured as a blank check company whose business purpose is to effect a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In connection with the initial public offering, MEKA entered into a forward purchase agreement with the Sponsor, pursuant to which the Sponsor committed to purchase from MEKA 5 million Class A ordinary shares at a price of $ 10 per share in a private placement to close substantially concurrently with the consummation of MEKA’s business combination. Investment in Aleph Group In October 2021, the Company acquired 2.5 billion shares of Aleph Group, Inc., an online advertising company, incorporated under the laws of the Cayman Islands, for a total amount of $ 25,000 thousands. This investment represents an estimated ownership of 1 % in Aleph Group, Inc.’s equity, and is another strategic initiative of the Company to strength the online advertising industry in the region and its ecosystem. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). Investments in entities where the Company holds joint control, but not control, over the investee are accounted for using the equity method of accounting. These interim condensed consolidated financial statements are stated in U.S. dollars, except where otherwise indicated. Intercompany transactions and balances with subsidiaries have been eliminated for consolidation purposes. Substantially all net revenues, cost of net revenues and operating expenses are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill located in the foreign jurisdictions totaled $ 800,409 thousands and $ 490,464 thousands as of September 30, 2021 and December 31, 2020, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of September 30, 2021 and December 31, 2020. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income and equity for the nine and three-month periods ended September 30, 2021 and 2020 and statements of cash flows for the nine-month periods ended September 30, 2021 and 2020. These interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Since the quarter ended March 31, 2021 the Company has disclosed Net product revenues as a separate line of Net revenues following its growth in significance relative to Net service revenues. As a result, the Company has reclassified the corresponding amount for the nine and three-month periods ended September 30, 2020 to the line Net product revenues for an amount of $ 121,813 thousands and $ 77,127 thousands, respectively, for comparative purposes. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The Company has evaluated all subsequent events through the date these condensed consolidated financial statements were issued. The condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Company’s Form 10-K for the year ended December 31, 2020. During the nine-month period ended September 30, 2021, there were no material updates made to the Company’s significant accounting policies. |
Revenue Recognition | Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. 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 account and chargebacks of $ 358,258 thousands and $ 126,661 thousands as of September 30, 2021 and December 31, 2020, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period 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, 2020 and 2019 was $ 32,519 thousands and $ 16,590 thousands, respectively, of which $ 24,310 thousands and $ 11,229 thousands were recognized as revenue during the nine-month periods ended September 30, 2021 and 2020, respectively. As of September 30, 2021, total deferred revenue was $ 31,644 thousands, mainly due to fees related to listing and optional feature services billed and loyalty programs that are expected to be recognized as revenue in the coming months. |
Digital Assets | Digital Assets As of September 30, 2021, the Company had purchased an aggregate amount of $ 20,000 thousands in cryptocurrencies. The Company accounts for its digital assets — cryptocurrencies — as indefinite-lived intangible assets, in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company has ownership of and control over its digital assets and uses third-party custodial services to store its digital assets. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on the active exchange, indicate that any decrease in the fair values of the digital assets below the carrying values for such assets subsequent to their acquisition will result in a recognition of impairment charges. The Company considers the lowest price of the digital asset on the active exchange since the acquisition of the asset to perform the impairment analysis. MercadoLibre determines the fair value of its digital assets in accordance with ASC 820, Fair Value Measurement. Impairment losses are recognized in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. |
Repurchase Of 2.00% Convertible Senior Notes Due 2028 - Extinguishment Of Debt | Repurchase of 2.00% Convertible Senior Notes due 2028 - Extinguishment of debt The derecognition of a convertible debt is based on the principle that an entity is extinguishing the liability component and reacquiring the equity component that was recognized at issuance. This approach is applied whether the debt was settled in cash, shares, other assets (or any combination), or at maturity upon conversion or upon early extinguishment. The settlement consideration is first allocated to the extinguishment of the liability component equal to the fair value of that component immediately prior to extinguishment. Any difference between that allocated amount and the net carrying amount of the liability component and unamortized debt issuance costs should be recognized as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. Any paid premium included in the repurchase price should be recognized as a loss when the debt is extinguished. |
Foreign Currency Translation | Foreign currency translation All of the Company’s consolidated foreign operations use the local currency as 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. Argentine currency status As of July 1, 2018, the 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 immediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the US dollar, to make payments abroad, either for foreign debt or the importation 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 September 30, 2021 was 98.74 . 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 September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 (In thousands) Assets $ 1,890,225 $ 1,470,885 Liabilities 1,376,126 1,230,326 Net Assets $ 514,099 $ 240,559 |
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. 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. 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. Accordingly, 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. In connection with this assessment, Management considers, 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 that would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Based on Management’s assessment of available objective evidence and considering the future effect of the Company’s initiatives to capture long-term business opportunities, the Company accounted for a valuation allowance in certain subsidiaries in its Mexican operations of $ 44,011 thousands and $ 10,920 thousands for the nine and three-month periods ended September 30, 2021, respectively, and $ 24,840 thousands and $ 7,529 thousands for the nine and three-month periods ended September 30, 2020, 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. The regime was suspended on January 20, 2020 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 of 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. In August 2021, the Under Secretariat of Knowledge Economy issued the Disposition 316/2021 approving MercadoLibre S.R.L.’s application for eligibility under the knowledge-based economy promotional regime. Tax benefits granted pursuant to the promotional regime to MercadoLibre S.R.L. are retroactive to January 1, 2020. As a result, the Company accounted for an income tax benefit of $ 11,684 thousands during the nine and three-month periods ended September 30, 2021, which $ 8,038 thousands corresponded to the period ended December 31, 2020. The aggregate per share effect of the income tax benefit amounted to $ 0.23 and $ 0.24 for the nine and three-month periods ended September 30, 2021, respectively. Furthermore, the Company recorded a social security benefit of $ 35,977 thousands during the nine and three-month periods ended September 30, 2021, which $ 15,299 thousands corresponded to the period ended December 31, 2020. Given that the promotional regime establishes that exports of services by eligible companies are not subject to export duties, the Company recognized a gain of $ 23,999 thousands related to export duties accrued from January 2020 to August 2021 that are no longer required to be paid. Additionally, during the nine and three-month periods ended September 30, 2021, we accrued a charge of $ 3,177 thousands to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. Corporate income tax reform in Argentina In June 2021, Argentine Congress enacted Law 27,630, which increases corporate income tax rate for tax years beginning January 1, 2021, and onwards. The law replaced the 30 % fixed tax rate with a progressive tax scale that applies as follows: a) for accumulated net taxable income up to 5,000 thousands Argentine Pesos (roughly $ 52.2 thousands): 25 % tax rate on net taxable income, b) for accumulated net taxable income from 5,000 thousands Argentine Pesos to 50,000 thousands Argentine Pesos (roughly $ 522.4 thousands): a tax payment of 1,250 thousands Argentine Pesos (roughly $ 13.1 thousands) plus a 30 % tax rate on accumulated net taxable income on any amount exceeding 5,000 thousands Argentine Pesos, c) for accumulated net taxable income exceeding 50,000 thousands Argentine Pesos: a tax payment of 14,750 thousands Argentine Pesos (roughly $ 154.1 thousands) plus a 35 % tax rate on accumulated net taxable income on any amount exceeding 50,000 thousands Argentine Pesos. In addition, the new law permanently extended the 7 % withholding tax currently in force to dividend distributions. The mentioned thresholds will be subject to inflation adjustment from 2022 onwards. |
Fair Value Option Applied to Certain Financial Instruments | Fair value option applied to certain financial instruments Under ASC 825, 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 $ 5,083 thousands and $ 8,912 thousands as of September 30, 2021 and 2020, respectively. |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 502,052 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 6,520 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 546 ) 754 $ ( 496,078 ) $ ( 468,284 ) The following tables summarize the changes in accumulated balances of other comprehensive loss for the nine-months ended September 30, 2021: Unrealized Foreign Estimated tax (Losses) gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 6,185 ( 35,483 ) ( 346 ) ( 29,644 ) Amount of gains (loss) reclassified from accumulated other comprehensive income (loss) 2,804 — ( 954 ) 1,850 Net current period other comprehensive income (loss) 8,989 ( 35,483 ) ( 1,300 ) ( 27,794 ) Ending balance $ 6,520 $ ( 502,052 ) $ ( 546 ) $ ( 496,078 ) Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 2,804 ) Cost of net revenues Estimated tax benefit on unrealized losses 954 Income tax expense Total reclassifications for the period $ ( 1,850 ) Total, net of income taxes |
Use Of Estimates | Use of estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowances for doubtful accounts and chargeback provisions, allowance for loans receivables, 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. |
Recently Adopted Accounting Standards & Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards 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 adoption of this standard did not have a material impact on the Company´s financial statements. Recently issued accounting pronouncements not yet adopted On October 28, 2021 the FASB issued the ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The amendments in this update improve comparability for the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by specifying for all acquired revenue contracts regardless of their timing of payment (1) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (2) how to measure those contract assets and contract liabilities. The amendments provide consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. 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 expects the primary impacts of this new standard will be to increase the carrying value of the 2028 Notes roughly $ 123,000 thousands and a decrease of deferred tax liability roughly $ 26,000 thousands. In addition, the Company will reduce its reported interest expense and will be required to use the if-converted method for calculating diluted earnings per share. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries | September 30, December 31, 2021 2020 (In thousands) Assets $ 1,890,225 $ 1,470,885 Liabilities 1,376,126 1,230,326 Net Assets $ 514,099 $ 240,559 |
Accumulated Other Comprehensive Loss | September 30, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 502,052 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 6,520 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 546 ) 754 $ ( 496,078 ) $ ( 468,284 ) |
Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss | Unrealized Foreign Estimated tax (Losses) gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 6,185 ( 35,483 ) ( 346 ) ( 29,644 ) Amount of gains (loss) reclassified from accumulated other comprehensive income (loss) 2,804 — ( 954 ) 1,850 Net current period other comprehensive income (loss) 8,989 ( 35,483 ) ( 1,300 ) ( 27,794 ) Ending balance $ 6,520 $ ( 502,052 ) $ ( 546 ) $ ( 496,078 ) |
Reclassifications Out Of Accumulated Other Comprehensive Loss | Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 2,804 ) Cost of net revenues Estimated tax benefit on unrealized losses 954 Income tax expense Total reclassifications for the period $ ( 1,850 ) Total, net of income taxes |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net Income Per Share [Abstract] | |
Net Income Per Share Of Common Stock | Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income per common share $ 2.60 $ 2.60 $ 0.94 $ 0.94 $ 1.92 $ 1.92 $ 0.28 $ 0.28 Numerator: Net income $ 129,408 $ 129,408 $ 49,873 $ 49,873 $ 95,225 $ 95,225 $ 15,035 $ 15,035 Dividends on preferred stock — — ( 2,928 ) ( 2,928 ) — — ( 928 ) ( 928 ) Net income corresponding to common stock $ 129,408 $ 129,408 $ 46,945 $ 46,945 $ 95,225 $ 95,225 $ 14,107 $ 14,107 Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,761,360 — 49,713,621 — 49,597,157 — 49,720,854 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,761,360 — 49,713,621 — 49,597,157 — 49,720,854 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments [Abstract] | |
Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | September 30, December 31, 2021 2020 (In thousands) Cash and cash equivalents $ 987,213 $ 1,856,394 Restricted cash and cash equivalents Securitization Transactions $ 150,102 $ 249,872 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 144,249 Bank account (Argentine Central Bank regulation) 269,781 237,511 Bank collateral account (Secured lines of credit guarantee) — 574 Money Market Funds (Secured lines of credit guarantee) 15,399 19,469 Cash in bank account 66 155 Total restricted cash and cash equivalents $ 435,348 $ 651,830 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 1,422,561 $ 2,508,224 Short-term investments Time Deposits $ 36,857 $ 158,818 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 739,002 565,705 Sovereign Debt Securities (Secured lines of credit guarantee) — 71,244 Sovereign Debt Securities 265,835 445,539 Securitization Transactions 174 — Total short-term investments $ 1,041,868 $ 1,241,306 Long-term investments Sovereign Debt Securities $ 10,320 $ 150,054 Securitization Transactions (**) 4,828 — Joint venture 5,107 — Other Investments 17,772 16,057 Total long-term investments $ 38,027 $ 166,111 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow (**) Long-term investments from securitization transactions are restricted to the payment of amounts due to third-party investors. |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans Receivable, Net [Abstract] | |
Schedule Of Loans Receivable, Net | September 30, December 31, 2021 2020 (In thousands) On-line merchant $ 302,094 $ 180,063 Consumer 589,434 237,956 In-store merchant 154,083 61,452 Credit Cards 81,049 — Loans receivable 1,126,660 479,471 Allowance for uncollectible accounts ( 322,723 ) ( 77,816 ) Loans receivable, net $ 803,937 $ 401,655 |
Schedule Of Credit Quality Analysis Of Loans Receivables | September 30, December 31, 2021 (1) 2020 (In thousands) 1-30 days past due $ 58,494 $ 34,706 31-60 days past due 31,651 16,977 61 -90 days past due 25,287 13,239 91 -120 days past due 25,930 10,632 121 -150 days past due 24,993 5,315 151 -180 days past due 22,600 3,649 181 -210 days past due 25,450 — 211 -240 days past due 27,627 — 241 -270 days past due 25,509 — 271 -300 days past due 18,992 — 301 -330 days past due 15,578 — 331 -360 days past due 12,191 — Total past due 314,302 84,518 To become due 812,358 394,953 Total $ 1,126,660 $ 479,471 (1) As from April 1, 2021, the Company writes off loans when customer balance becomes 360 days past due. |
Summary Of Allowance For Uncollectible Accounts Activity | September 30, 2021 2020 (In thousands) Balance at beginning of year $ 77,816 $ 20,444 Adoption of ASC 326 (1) — 4,977 Charged/credited to Net Income 271,792 49,033 Charges/Utilized /Currency translation adjustments/Write-offs (2) ( 26,885 ) ( 44,452 ) Balance at end of period $ 322,723 $ 30,002 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 . (2) As from April 1, 2021, the Company writes off loans when customer balance becomes 360 days past due. |
Business Combinations, Goodwi_2
Business Combinations, Goodwill And Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Composition Of Goodwill And Intangible Assets | September 30, December 31, 2021 2020 (In thousands) Goodwill $ 80,949 $ 85,211 Intangible assets with indefinite lives - Trademarks 7,234 7,751 - Digital assets (1) 12,259 — Amortizable intangible assets - Licenses and others 10,360 4,932 - Non-compete agreement 3,348 3,426 - Customer list 12,665 14,010 - Trademarks 7,612 7,879 - Others 3,436 — Total intangible assets $ 56,914 $ 37,998 Accumulated amortization ( 26,205 ) ( 23,843 ) Total intangible assets, net $ 30,709 $ 14,155 (1) Digital assets are net of $ 7,741 thousands of impairment losses accounted for in General and Administrative expenses during the nine-month period ended September 30, 2021. |
Changes In Carrying Amount Of Goodwill | Nine Months Ended September 30 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Effect of exchange rates changes ( 690 ) — ( 1,097 ) ( 2,013 ) ( 383 ) ( 79 ) ( 4,262 ) Balance, end of the period $ 19,072 $ 10,594 $ 30,600 $ 14,983 $ 4,007 $ 1,693 $ 80,949 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 |
Expected Intangible Asset Amortization Expense | For year ended 12/31/2021 $ 1,213 For year ended 12/31/2022 4,551 For year ended 12/31/2023 4,084 For year ended 12/31/2024 1,288 Thereafter 80 $ 11,216 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Financial Performance Of Company's Reporting Segments | Nine Months Ended September 30, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 2,782,433 $ 1,056,410 $ 780,069 $ 319,731 $ 4,938,643 Direct costs ( 2,170,163 ) ( 674,214 ) ( 767,081 ) ( 247,454 ) ( 3,858,912 ) Direct contribution 612,270 382,196 12,988 72,277 1,079,731 Operating expenses and indirect costs of net revenues ( 662,344 ) Income from operations 417,387 Other income (expenses): Interest income and other financial gains 84,588 Interest expense and other financial losses ( 175,026 ) Foreign currency losses ( 52,382 ) Net income before income tax expense $ 274,567 Nine Months Ended September 30, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,473,466 $ 656,825 $ 371,085 $ 144,785 $ 2,646,161 Direct costs ( 1,148,926 ) ( 465,806 ) ( 370,229 ) ( 115,759 ) ( 2,100,720 ) Direct contribution 324,540 191,019 856 29,026 545,441 Operating expenses and indirect costs of net revenues ( 392,623 ) Income from operations 152,818 Other income (expenses): Interest income and other financial gains 80,119 Interest expense and other financial losses ( 75,083 ) Foreign currency losses ( 32,524 ) Net income before income tax expense $ 125,330 Three Months Ended September 30, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 1,062,620 $ 393,109 $ 291,496 $ 110,227 $ 1,857,452 Direct costs ( 831,656 ) ( 253,069 ) ( 284,751 ) ( 91,886 ) ( 1,461,362 ) Direct contribution 230,964 140,040 6,745 18,341 396,090 Operating expenses and indirect costs of net revenues ( 235,712 ) Income from operations 160,378 Other income (expenses): Interest income and other financial gains 35,352 Interest expense and other financial losses ( 44,395 ) Foreign currency losses ( 25,202 ) Net income before income tax expense $ 126,133 Three Months Ended September 30, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 610,721 $ 284,746 $ 150,382 $ 69,852 $ 1,115,701 Direct costs ( 501,544 ) ( 193,373 ) ( 144,914 ) ( 53,212 ) ( 893,043 ) Direct contribution 109,177 91,373 5,468 16,640 222,658 Operating expenses and indirect costs of net revenues ( 139,584 ) Income from operations 83,074 Other income (expenses): Interest income and other financial gains 24,553 Interest expense and other financial losses ( 24,522 ) Foreign currency losses ( 30,435 ) Net income before income tax expense $ 52,670 |
Allocation Of Property And Equipment Based On Geography | September 30, December 31, 2021 2020 (In thousands) US property and equipment, net $ 1,518 $ 586 Other countries Argentina 163,517 123,589 Brazil 334,222 171,409 Mexico 155,609 73,315 Other countries 47,662 22,785 $ 701,010 $ 391,098 Total property and equipment, net $ 702,528 $ 391,684 |
Allocation Of Goodwill And Intangible Assets Based On Geography | September 30, December 31, 2021 2020 (In thousands) US intangible assets $ 12,259 $ — Other countries goodwill and intangible assets Argentina 15,909 12,617 Brazil 19,102 19,958 Mexico 33,776 35,338 Chile 20,945 24,707 Other countries 9,667 6,746 $ 99,399 $ 99,366 Total goodwill and intangible assets $ 111,658 $ 99,366 |
Consolidated Net Revenues By Similar Products And Services | Nine Months Ended September 30, Three Months Ended September 30, Consolidated Net Revenues 2021 2020 2021 2020 (In thousands) (In thousands) Commerce $ 3,277,649 $ 1,686,879 $ 1,224,699 $ 724,466 Fintech 1,660,994 959,282 632,753 391,235 Total $ 4,938,643 $ 2,646,161 $ 1,857,452 $ 1,115,701 |
Fair Value Measurement Of Ass_2
Fair Value Measurement Of Assets And Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2021 (Level 1) (Level 2) (Level 3) 2020 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 321,286 $ 321,286 $ — $ — $ 166,483 $ 166,483 $ — $ — Sovereign Debt Securities — — — — 37,654 37,654 — — Restricted Cash and cash equivalents: Money Market Funds 118,708 118,708 — — 257,695 257,695 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 144,249 144,249 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 739,002 739,002 — — 565,705 565,705 — — Sovereign Debt Securities 281,157 281,157 — — 666,837 666,837 — — Other Assets: Derivative Instruments 12,390 — — 12,390 199 — — 199 Total Financial Assets $ 1,472,543 $ 1,460,153 $ — $ 12,390 $ 1,838,822 $ 1,838,623 $ — $ 199 Liabilities: Contingent considerations $ 4,755 $ — $ — $ 4,755 $ 4,622 $ — $ — $ 4,622 Long-term retention plan 106,626 — 106,626 — 136,816 — 136,816 — Derivative Instruments 1,478 — — 1,478 13,964 — — 13,964 Total Financial Liabilities $ 112,859 $ — $ 106,626 $ 6,233 $ 155,402 $ — $ 136,816 $ 18,586 |
Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost | Balances as of Significant other Balances as of Significant other September 30, observable inputs December 31, observable inputs 2021 (Level 2) 2020 (Level 2) (In thousands) Assets Time Deposits $ 36,857 $ 36,857 $ 158,818 $ 158,818 Accounts receivable, net 70,542 70,542 49,691 49,691 Credit Cards receivable and other means of payment, net 1,428,454 1,428,454 863,073 863,073 Loans receivable, net 803,937 803,937 401,655 401,655 Other assets 389,479 389,479 236,432 236,432 Total Assets $ 2,729,269 $ 2,729,269 $ 1,709,669 $ 1,709,669 Liabilities Accounts payable and accrued expenses $ 906,393 $ 906,393 $ 767,336 $ 767,336 Funds payable to customers and amounts due to merchants 1,987,083 1,987,083 1,733,095 1,733,095 Salaries and social security payable 193,554 193,554 120,394 120,394 Taxes payable 196,561 196,561 215,918 215,918 Loans payable and other financial liabilities (*) 2,735,528 2,756,329 1,409,269 1,479,165 Other liabilities 99,102 99,102 110,139 110,139 Total Liabilities $ 6,118,221 $ 6,139,022 $ 4,356,151 $ 4,426,047 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. |
Fair Value Of Money Market Funds, Short And Long-Term Investments Classified As Available For Sale Securities | September 30, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 321,286 $ — $ — $ 321,286 Total Cash and cash equivalents $ 321,286 $ — $ — $ 321,286 Restricted cash and cash equivalents Money Market Funds $ 118,708 $ — $ — $ 118,708 Total Restricted cash and cash equivalents $ 118,708 $ — $ — $ 118,708 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 734,275 $ 4,727 $ — $ 739,002 Sovereign Debt Securities (1) 265,825 185 ( 1 ) 266,009 Total Short-term investments $ 1,000,100 $ 4,912 $ ( 1 ) $ 1,005,011 Long-term investments Sovereign Debt Securities (1) $ 14,976 $ 302 $ ( 130 ) $ 15,148 Total Long-term investments $ 14,976 $ 302 $ ( 130 ) $ 15,148 Total $ 1,455,070 $ 5,214 $ ( 131 ) $ 1,460,153 (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.) 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.) |
Estimated Fair Values Of Cash Equivalents, Short-Term And Long-Term Investments, Effective Maturities | One year or less 1,445,005 Two years to three years 5,673 Three years to four years 3,888 Four years to five years 670 More than five years 4,917 Total $ 1,460,153 |
Long Term Retention Program (Ta
Long Term Retention Program (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long Term Retention Program [Abstract] | |
Long Term Retention Program Accrued Compensation Expense | Nine Months Ended September 30, Three Months Ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) LTRP 2012 — 69 — — LTRP 2014 — 125 — — LTRP 2015 178 6,338 — 1,453 LTRP 2016 3,811 13,010 2,421 2,955 LTRP 2017 5,653 13,892 3,540 3,332 LTRP 2018 3,424 6,941 2,006 1,578 LTRP 2019 23,883 16,061 8,663 5,741 LTRP 2020 26,150 18,706 8,658 8,176 LTRP 2021 20,873 — 7,759 — Total LTRP $ 83,972 $ 75,142 $ 33,047 $ 23,235 |
Loans Payable And Other Finan_2
Loans Payable And Other Financial Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans Payable And Other Financial Liabilities [Abstract] | |
Summary Of Loans Payable And Other Financial Liabilities | Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity September 30, 2021 December 31, 2020 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.86 % October 2021 $ 51,115 $ 92,895 Brazilian Subsidiary Brazilian Reais — — % — — 142,178 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % October 2021 - July 2022 60,077 — Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % May 2022 33,167 18,418 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % March 2022 17,835 — Argentine Subsidiary Argentine Pesos Fixed 38.75 % October 2021 20,492 14,400 Argentine Subsidiary Argentine Pesos Fixed 38.50 % October 2021 20,469 — Uruguayan Subsidiary Uruguayan Pesos Fixed 6.30 % December 2021 8,154 — Uruguayan Subsidiary Uruguayan Pesos Fixed 6.14 % October 2021 15,713 13,406 Chilean Subsidiary Chilean Pesos Fixed 2.46 % October 2021 - September 2022 1,503 — Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 34.11 % October 2021 57,759 18,311 Argentine Subsidiary Argentine Pesos Fixed 36.65 % October 2021 20,460 — Brazilian Subsidiary Brazilian Reais — — % — — 58,437 Mexican Subsidiary Mexican Peso Fixed 10.02 % October 2021 - September 2022 3,362 — Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 6.47 % October 2021 18,694 20,055 Argentine Subsidiary Argentine Pesos — — % — — 116,140 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 98 % to 129 % of CDI October 2021 - September 2022 358,084 — 2028 Notes 1,127 6,649 2026 Sustainability Notes 2,006 — 2031 Notes 4,618 — Finance lease obligations 9,476 7,394 Credit card collateralized debt 1,976 12,920 Collateralized debt 58,743 25,342 Other lines of credit 305 1,848 $ 765,135 $ 548,393 Non Current loans payable and other financial liabilities: 2028 Notes 307,874 595,800 2026 Sustainability Notes 396,650 — 2031 Notes 693,638 — Financial Bills Brazilian Subsidiary CDI + 1.10 % July 2023 93,130 — Finance lease obligations 31,793 16,261 Collateralized debt 421,859 248,815 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % October 2022 - April 2025 4,047 — Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 4,136 — Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 10.02 % October 2022 - July 2026 16,758 — Other lines of credit 508 — $ 1,970,393 $ 860,876 |
Carrying Amounts Of Liability And Equity Components | September 30, 2021 December 31, 2020 (In thousands) Amount of the equity component (1) $ 163,653 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 439,092 $ 879,993 Unamortized debt discount (2) ( 127,029 ) ( 275,299 ) Unamortized transaction costs related to the debt component ( 4,189 ) ( 8,894 ) Contractual coupon interest accrual 48,638 41,409 Contractual coupon interest payment ( 47,511 ) ( 34,760 ) Net carrying amount $ 309,001 $ 602,449 (1) Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of September 30, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.0 years. |
Summary Of Interest Expense For Contractual Interest And Accretion Of Debt Discount | Nine month periods ended September 30, Three month periods ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Contractual coupon interest expense $ 7,229 $ 13,200 $ 2,196 $ 4,400 Amortization of debt discount 11,315 19,269 3,511 6,542 Amortization of debt issuance costs 270 421 86 146 Total interest expense related to the 2028 Notes $ 18,814 $ 32,890 $ 5,793 $ 11,088 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Securitization Transactions [Abstract] | |
Collateralized Debt | SPEs Collateralized debt as of September 30, 2021 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 134,763 DI plus 2.5 % Brazilian Reais May 2024 Fundo de Investimento Em DireitosCreditórios Arandu 182,661 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 18,506 CDI + 3.5 % Brazilian Reais August 2023 Mercado Crédito IX 1,998 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos February 2022 Mercado Crédito X 10,621 Badlar rates plus 200 basis points with a min 30 % and a max 45 % Argentine Pesos June 2022 Mercado Crédito Consumo IV 6,468 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos January 2022 Mercado Crédito XI 9,838 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo V 13,304 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos June 2022 Mercado Crédito Consumo VI 13,836 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Fideicomiso de administración y fuente de pago CIB/3369 88,607 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 |
Assets And Liabilities Of The Trust | September 30, December 31, 2021 2020 Assets (In thousands) Current assets: Restricted cash and cash equivalents $ 150,102 $ 249,872 Short-term investments 174 — Credit cards receivable and other means of payments, net 169,753 — Loans receivable, net 428,571 113,846 Total current assets 748,600 363,718 Non-current assets: Long-term investments 4,828 — Loans receivable, net 24,175 9,581 Total non-current assets 29,003 9,581 Total assets $ 777,603 $ 373,299 Liabilities Current liabilities: Accounts payable and accrued expenses $ 300 $ 100 Loans payable and other financial liabilities 58,743 25,342 Total current liabilities 59,043 25,442 Non-current liabilities: Loans payable and other financial liabilities 421,859 248,815 Total non-current liabilities 421,859 248,815 Total liabilities $ 480,902 $ 274,257 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | September 30, December 31, 2021 2020 Operating Leases (In thousands) Operating lease right-of-use assets $ 389,806 $ 303,214 Operating lease liabilities $ 391,010 $ 298,847 Finance Leases Property and equipment, at cost 60,890 29,798 Accumulated depreciation ( 10,808 ) ( 4,086 ) Property and equipment, net $ 50,082 $ 25,712 Loans payable and other financial liabilities $ 41,269 $ 23,655 |
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 8 % Finance leases 14 % (*) Includes discount rates of leases in local currency and U.S dollar . |
Components Of Lease Expense | Nine months ended September 30, 2021 2020 (In thousands) Operating lease cost $ 55,668 $ 29,941 Finance lease cost: Depreciation of property and equipment 6,782 1,564 Interest on lease liabilities 3,377 1,199 Total finance lease cost $ 10,159 $ 2,763 |
Supplemental Cash Flow Information Related To Leases | Nine months ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 51,403 $ 28,705 Financing cash flows from finance leases 12,612 2,499 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 137,569 $ 73,340 Finance leases 28,728 1,487 |
Maturities Of Lease Liabilities | Period Ending September 30, 2021 Operating Leases Finance Leases (In thousands) One year or less $ 86,736 $ 14,716 One year to two years 84,234 14,488 Two years to three years 79,631 13,566 Three years to four years 70,779 7,462 Four years to five years 48,916 2,385 Thereafter 123,510 1,409 Total lease payments $ 493,806 $ 54,026 Less imputed interest ( 102,796 ) ( 12,757 ) Total $ 391,010 $ 41,269 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments [Abstract] | |
Summary Of Notional Amounts | Notional Amount as of September 30, 2021 (In thousands) Designated as hedging instrument Foreign exchange contracts $ 89,159 Cross currency swap contract $ 94,125 Not designated as hedging instrument Foreign exchange contracts $ 69,000 Interest rate contracts $ 183,658 Cross currency swap contract $ 60,000 |
Summary Of Outstanding Derivative Instruments | September 30, December 31, Balance sheet location 2021 2020 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 2,623 $ 199 Cross currency swap Contract designated as net investment hedge Other current assets 5,167 — Cross currency swap contract not designated as hedging instrument Other current assets 2,194 — Foreign exchange contracts designated as cash flow hedges Other current assets 2,406 — Foreign exchange contracts not designated as hedging instruments Other current liabilities 551 11,106 Foreign exchange contracts designated as cash flow hedges Other current liabilities 927 2,858 |
Effect Of Derivative Contracts On Comprehensive Income | Amount of Amount of (gain) loss reclassified December 31, Gain (Loss) recognized from accumulated September 30, 2020 in other comprehensive loss other comprehensive loss 2021 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 2,469 ) $ 1,018 $ 2,804 $ 1,353 Cross currency swap contract designated as net investment hedge — 5,167 — 5,167 ( 2,469 ) 6,185 2,804 6,520 |
Effect Of Derivative Contracts On Income Statement | Nine month periods ended September 30, Three month periods ended September 30, 2021 2020 2021 2020 (In thousands) (In thousands) Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net $ ( 3,590 ) $ 26,535 $ 7,396 $ 4,709 Cross currency swap contract not designated as hedging instrument recognized in foreign exchange 2,688 — 2,688 — Interest rate contracts not designated as hedging instruments recognized in interest and other, net 30 — ( 157 ) — |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | Jun. 25, 2020 | Jun. 10, 2019 | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2021ARS ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Significant Accounting Policies [Line Items] | |||||||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 800,409,000 | $ 800,409,000 | $ 490,464,000 | ||||||
Allowance for doubtful accounts, loan receivables and chargebacks | 358,258,000 | 358,258,000 | 126,661,000 | ||||||
Deferred Revenue | 31,644,000 | 31,644,000 | $ 32,519,000 | $ 16,590,000 | |||||
Deferred Revenue, Revenue Recognized | 24,310,000 | $ 11,229,000 | |||||||
Net revenues | 1,857,452,000 | $ 1,115,701,000 | 4,938,643,000 | 2,646,161,000 | |||||
Recognized gains in interest income and other financial gains | 5,083,000 | 8,912,000 | |||||||
Income tax benefit | (30,908,000) | (37,635,000) | (145,159,000) | (75,457,000) | |||||
Cryptocurrencies [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Intangible assets with indefinite lives | $ 20,000,000 | $ 20,000,000 | |||||||
Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Income tax rate | 30.00% | ||||||||
Withholding tax percent, dividend distribution | 7.00% | 7.00% | |||||||
Foreign exchange rate | 98.74 | 98.74 | |||||||
Argentina [Member] | Maximum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Non-transferable tax credit bond percent | 80.00% | ||||||||
Argentina [Member] | Minimum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Benchmark percent of derived revenue, enacted law | 70.00% | ||||||||
Non-transferable tax credit bond percent | 70.00% | ||||||||
Secretariat Of Knowledge Economy Resolution Issued [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Aggregate per share effect of the Argentine tax holiday | $ / shares | $ 0.24 | $ 0.23 | |||||||
Social security benefit | $ 35,977,000 | $ 35,977,000 | $ 15,299,000 | ||||||
Income tax benefit | 11,684,000 | 11,684,000 | $ 8,038,000 | ||||||
Software development law audit fees | 3,177,000 | 3,177,000 | |||||||
Recognized gain related to export duties accrued | 23,999,000 | ||||||||
Micro And Small [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
New criteria benchmark percent, income tax burden | 60.00% | ||||||||
Medium-Sized [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
New criteria benchmark percent, income tax burden | 40.00% | ||||||||
Large [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
New criteria benchmark percent, income tax burden | 20.00% | ||||||||
Progressive Tax Scale, First Tier [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | $ 52,200 | ||||||||
Income tax rate | 25.00% | 25.00% | |||||||
Progressive Tax Scale, First Tier [Member] | Argentina [Member] | Maximum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | $ 5,000 | ||||||||
Progressive Tax Scale, Second Tier [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | $ 522,400 | ||||||||
Income tax rate | 30.00% | 30.00% | |||||||
Initial tax payment benchmark | $ 13,100 | $ 1,250 | |||||||
Progressive Tax Scale, Second Tier [Member] | Argentina [Member] | Maximum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | 50,000 | ||||||||
Progressive Tax Scale, Second Tier [Member] | Argentina [Member] | Minimum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | $ 5,000 | ||||||||
Progressive Tax Scale, Third Tier [Member] | Argentina [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Income tax rate | 35.00% | 35.00% | |||||||
Initial tax payment benchmark | $ 154,100 | $ 14,750 | |||||||
Progressive Tax Scale, Third Tier [Member] | Argentina [Member] | Minimum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Accumulated taxable income benchmark | $ 50,000 | ||||||||
Increase Carrying Value Of 2028 Notes [Member] | Accounting Standards Update 2020-06 [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Change in accounting principle, accounting standards update, expected change | 123,000,000 | ||||||||
Decrease Interest Expense Of 2028 Notes [Member] | Accounting Standards Update 2020-06 [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Change in accounting principle, accounting standards update, expected change | (26,000,000) | ||||||||
Mexico Segment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Valuation allowance in certain subsidiaries | 10,920,000 | 7,529,000 | 44,011,000 | 24,840,000 | |||||
Product [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Net revenues | $ 226,538,000 | 77,127,000 | $ 572,105,000 | 121,813,000 | |||||
Product [Member] | Restatement Adjustment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Net revenues | $ 77,127,000 | $ 121,813,000 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Assets, Liabilities And Net Assets Of Company's Argentinean Subsidiaries) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 6,800,017 | $ 6,526,332 |
Liabilities | 6,677,041 | 4,874,754 |
Argentinean Subsidiaries [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 1,890,225 | 1,470,885 |
Liabilities | 1,376,126 | 1,230,326 |
Net Assets | $ 514,099 | $ 240,559 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Abstract] | ||
Foreign currency translation | $ (502,052) | $ (466,569) |
Unrealized losses on hedging activities | 6,520 | (2,469) |
Estimated tax (expense) benefit on unrealized gains (losses) | (546) | 754 |
Accumulated other comprehensive loss | $ (496,078) | $ (468,284) |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning Balance | $ 81,030 | $ 1,808,249 | $ 1,651,578 | $ 1,983,120 |
Net change in accumulated other comprehensive income (loss), net of income tax | (49,774) | (4,150) | (27,794) | (102,840) |
Ending Balance | 122,976 | 1,746,099 | 122,976 | 1,746,099 |
Unrealized Losses On Hedging Activities, Net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning balance, before tax | (2,469) | |||
Other comprehensive income (loss) before reclassifications, before tax | 6,185 | |||
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), before tax | 2,804 | |||
Net current period other comprehensive income (loss), before tax | 8,989 | |||
Ending balance, before tax | 6,520 | 6,520 | ||
Foreign Currency Translation [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning balance, before tax | (466,569) | |||
Other comprehensive income (loss) before reclassifications, before tax | (35,483) | |||
Net current period other comprehensive income (loss), before tax | (35,483) | |||
Ending balance, before tax | (502,052) | (502,052) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning balance, Estimated tax benefit (expense) | 754 | |||
Other comprehensive income (loss) before reclassifications, Estimated tax benefit (expense) | (346) | |||
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), Estimated tax benefit (expense) | (954) | |||
Net current period other comprehensive income (loss), Estimated tax benefit (expense) | (1,300) | |||
Ending balance, Estimated tax benefit (expense) | (546) | (546) | ||
Beginning Balance | (446,304) | (505,361) | (468,284) | (406,671) |
Other comprehensive income (loss) before reclassifications, net tax | (29,644) | |||
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), net of tax | 1,850 | |||
Net change in accumulated other comprehensive income (loss), net of income tax | (27,794) | |||
Ending Balance | $ (496,078) | $ (509,511) | $ (496,078) | $ (509,511) |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Reclassifications Out Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of net revenues | $ 1,050,862 | $ 635,511 | $ 2,786,756 | $ 1,425,985 | ||||
Income tax loss | (30,908) | (37,635) | (145,159) | (75,457) | ||||
Net income | $ 95,225 | $ 68,195 | $ (34,012) | $ 15,035 | $ 55,947 | $ (21,109) | 129,408 | $ 49,873 |
Amount Of (Loss) Gain Reclassified From Accumulated Other Comprehensive Loss [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income tax loss | 954 | |||||||
Net income | (1,850) | |||||||
Amount Of (Loss) Gain Reclassified From Accumulated Other Comprehensive Loss [Member] | Unrealized Losses On Hedging Activities, Net [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of net revenues | $ (2,804) |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - Convertible Senior Notes [Member] - 2028 Convertible Senior Notes [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2018 | Aug. 24, 2018 |
Debt Instrument [Line Items] | ||||
Convertible senior notes, issued | $ 880,000,000 | $ 880,000,000 | ||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% |
Net Income Per Share (Net Incom
Net Income Per Share (Net Income Per Share Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income attributable to MercadoLibre, Inc. per common share | ||||||||
Net loss per common share, Basic | $ 1.92 | $ 0.28 | $ 2.60 | $ 0.94 | ||||
Net loss per common share, Diluted | $ 1.92 | $ 0.28 | $ 2.60 | $ 0.94 | ||||
Numerator: | ||||||||
Net income | $ 95,225 | $ 68,195 | $ (34,012) | $ 15,035 | $ 55,947 | $ (21,109) | $ 129,408 | $ 49,873 |
Dividends on preferred stock | (928) | $ (1,000) | $ (1,000) | (2,928) | ||||
Net income corresponding to common stock, Basic | 95,225 | 14,107 | 129,408 | 46,945 | ||||
Net income corresponding to common stock, Diluted | $ 95,225 | $ 14,107 | $ 129,408 | $ 46,945 | ||||
Denominator: | ||||||||
Weighted average of common stock outstanding for Basic earnings per share | 49,597,157 | 49,720,854 | 49,761,360 | 49,713,621 | ||||
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 49,597,157 | 49,720,854 | 49,761,360 | 49,713,621 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments (Narrative) (Details) - Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and short term investments | $ 739,002 | $ 709,954 |
Percent of electronic funds | 100.00% | 100.00% |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments (Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Cash and cash equivalents | $ 987,213 | $ 1,856,394 | |||||
Restricted cash and cash equivalents | 435,348 | 651,830 | |||||
Total cash, cash equivalents, restricted cash and cash equivalents | 1,422,561 | [1] | 2,508,224 | [1] | $ 1,624,129 | $ 1,451,424 | |
Short-term Investments | 1,041,868 | 1,241,306 | |||||
Long-term Investments | 38,027 | 166,111 | |||||
Time Deposits [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 36,857 | 158,818 | |||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 739,002 | 565,705 | |||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 71,244 | ||||||
Sovereign Debt Securities [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 265,835 | 445,539 | |||||
Long-term Investments | 10,320 | 150,054 | |||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 174 | ||||||
Long-term Investments | [2] | 4,828 | |||||
Joint Venture [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | 5,107 | ||||||
Other Investments [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | 17,772 | 16,057 | |||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 150,102 | 249,872 | |||||
Sovereign Debt Securities (Secured Lines Of Credit 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 | 269,781 | 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 | 15,399 | 19,469 | |||||
Cash In Bank Account [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | $ 66 | $ 155 | |||||
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow | ||||||
[2] | Long-term investments from securitization transactions are restricted to the payment of amounts due to third-party investors. |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary Of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 1,126,660 | $ 479,471 |
Allowance for uncollectible accounts | (322,723) | (77,816) |
Loans receivables, net | 803,937 | 401,655 |
Credit Cards [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 81,049 | |
On-line Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 302,094 | 180,063 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 589,434 | 237,956 |
In-Store Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 154,083 | $ 61,452 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule Of Credit Quality Analysis Of Loans Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,126,660 | $ 479,471 |
1-30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 58,494 | 34,706 |
31-60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 31,651 | 16,977 |
61-90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,287 | 13,239 |
91 To 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,930 | 10,632 |
121 To 150 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 24,993 | 5,315 |
151 To 180 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,600 | 3,649 |
181 - 210 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,450 | |
211 - 240 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 27,627 | |
241 - 270 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,509 | |
271 - 300 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 18,992 | |
301 To 330 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 15,578 | |
331 To 360 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12,191 | |
Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 314,302 | 84,518 |
To Become Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 812,358 | $ 394,953 |
Loans Receivable, Net (Summar_2
Loans Receivable, Net (Summary Of Allowance For Uncollectible Accounts Activity) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Loans Receivable, Net [Abstract] | |||
Balance at beginning of year | $ 77,816 | $ 20,444 | |
Adoption of ASC 326 | [1] | 4,977 | |
Charged/credited to Net Income | 271,792 | 49,033 | |
Charges/Utilized/Currency translation adjustments/Write-offs | [2] | (26,885) | (44,452) |
Balance at end of period | $ 322,723 | $ 30,002 | |
[1] | Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 | ||
[2] | As from April 1, 2021, the Company writes off loans when customer balance becomes 360 days past due. |
Business Combinations, Goodwi_3
Business Combinations, Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | |||||
Aggregate amortization expense for intangible assets | $ 1,630 | $ 1,476 | $ 4,268 | $ 3,995 | |
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 | ||||
Fair value of contingent consideration | $ 2,174 | ||||
Net revenues | $ 1,931 |
Business Combinations, Goodwi_4
Business Combinations, Goodwill And Intangible Assets (Composition Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 80,949 | $ 85,211 | $ 87,609 | ||
Total intangible assets | 56,914 | 37,998 | |||
Accumulated amortization | (26,205) | (23,843) | |||
Total intangible assets, net | 30,709 | 14,155 | |||
Impairment of digital assets | 7,741 | $ 0 | |||
Licenses and Others [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 10,360 | 4,932 | |||
Non-Compete Agreement [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 3,348 | 3,426 | |||
Customer Lists [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 12,665 | 14,010 | |||
Trademarks [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 7,612 | 7,879 | |||
Other Intangible Assets [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 3,436 | ||||
Trademarks [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible assets with indefinite lives | 7,234 | $ 7,751 | |||
Digital Assets [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible assets with indefinite lives | [1] | $ 12,259 | |||
[1] | Digital assets are net of $ 7,741 thousands of impairment losses accounted for in General and Administrative expenses during the nine-month period ended |
Business Combinations, Goodwi_5
Business Combinations, Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Balance, beginning of the year | $ 85,211 | $ 87,609 |
Business Acquisitions | 7,900 | |
Disposals | (3,480) | |
Effect of exchange rates changes | (6,818) | |
Effect of exchange rates changes | (4,262) | |
Balance, end of the year | 80,949 | 85,211 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 19,762 | 29,072 |
Disposals | (3,480) | |
Effect of exchange rates changes | (5,830) | |
Effect of exchange rates changes | (690) | |
Balance, end of the year | 19,072 | 19,762 |
Argentina [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 10,594 | 6,991 |
Business Acquisitions | 3,603 | |
Balance, end of the year | 10,594 | 10,594 |
Mexico [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 31,697 | 32,196 |
Business Acquisitions | 1,062 | |
Effect of exchange rates changes | (1,561) | |
Effect of exchange rates changes | (1,097) | |
Balance, end of the year | 30,600 | 31,697 |
Chile [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 16,996 | 14,872 |
Business Acquisitions | 1,241 | |
Effect of exchange rates changes | 883 | |
Effect of exchange rates changes | (2,013) | |
Balance, end of the year | 14,983 | 16,996 |
Colombia [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 4,390 | 3,312 |
Business Acquisitions | 1,246 | |
Effect of exchange rates changes | (168) | |
Effect of exchange rates changes | (383) | |
Balance, end of the year | 4,007 | 4,390 |
Other Countries [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 1,772 | 1,166 |
Business Acquisitions | 748 | |
Effect of exchange rates changes | (142) | |
Effect of exchange rates changes | (79) | |
Balance, end of the year | $ 1,693 | $ 1,772 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill And Intangible Assets (Expected Intangible Asset Amortization Expense) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
For year ended 12/31/2021 | $ 1,213 |
For year ended 12/31/2022 | 4,551 |
For year ended 12/31/2023 | 4,084 |
For year ended 12/31/2024 | 1,288 |
Thereafter | 80 |
Total remaining amortization of intangible assets | $ 11,216 |
Segment Reporting (Financial Pe
Segment Reporting (Financial Performance Of Company's Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 1,857,452 | $ 1,115,701 | $ 4,938,643 | $ 2,646,161 | |
Direct costs | (1,461,362) | (893,043) | (3,858,912) | (2,100,720) | |
Direct contribution | 396,090 | 222,658 | 1,079,731 | 545,441 | |
Operating expenses and indirect costs of net revenues | (235,712) | (139,584) | (662,344) | (392,623) | |
Income from operations | 160,378 | 83,074 | 417,387 | 152,818 | |
Other income (expenses): | |||||
Interest income and other financial gains | 35,352 | 24,553 | 84,588 | 80,119 | |
Interest expense and other financial losses | [1] | (44,395) | (24,522) | (175,026) | (75,083) |
Foreign currency losses | (25,202) | (30,435) | (52,382) | (32,524) | |
Net income before income tax expense | 126,133 | 52,670 | 274,567 | 125,330 | |
Operating Segments [Member] | Brazil Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,062,620 | 610,721 | 2,782,433 | 1,473,466 | |
Direct costs | (831,656) | (501,544) | (2,170,163) | (1,148,926) | |
Direct contribution | 230,964 | 109,177 | 612,270 | 324,540 | |
Operating Segments [Member] | Argentina Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 393,109 | 284,746 | 1,056,410 | 656,825 | |
Direct costs | (253,069) | (193,373) | (674,214) | (465,806) | |
Direct contribution | 140,040 | 91,373 | 382,196 | 191,019 | |
Operating Segments [Member] | Mexico Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 291,496 | 150,382 | 780,069 | 371,085 | |
Direct costs | (284,751) | (144,914) | (767,081) | (370,229) | |
Direct contribution | 6,745 | 5,468 | 12,988 | 856 | |
Operating Segments [Member] | Other Countries Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 110,227 | 69,852 | 319,731 | 144,785 | |
Direct costs | (91,886) | (53,212) | (247,454) | (115,759) | |
Direct contribution | $ 18,341 | $ 16,640 | $ 72,277 | $ 29,026 | |
[1] | Includes $ 49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase recognized in January 2021. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase. |
Segment Reporting (Allocation O
Segment Reporting (Allocation Of Property And Equipment Based On Geography) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 702,528 | $ 391,684 |
US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1,518 | 586 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 163,517 | 123,589 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 334,222 | 171,409 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 155,609 | 73,315 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 47,662 | 22,785 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 701,010 | $ 391,098 |
Segment Reporting (Allocation_2
Segment Reporting (Allocation Of Goodwill And Intangible Assets Based On Geography) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 111,658 | $ 99,366 |
US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 12,259 | |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 15,909 | 12,617 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 19,102 | 19,958 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 33,776 | 35,338 |
Chile [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 20,945 | 24,707 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 9,667 | 6,746 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 99,399 | $ 99,366 |
Segment Reporting (Consolidated
Segment Reporting (Consolidated Net Revenues By Similar Products And Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 1,857,452 | $ 1,115,701 | $ 4,938,643 | $ 2,646,161 |
Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,224,699 | 724,466 | 3,277,649 | 1,686,879 |
Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 632,753 | $ 391,235 | $ 1,660,994 | $ 959,282 |
Fair Value Measurement Of Ass_3
Fair Value Measurement Of Assets And Liabilities (Narrative) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Auction Rate Securities [Member] | Direct Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-financial assets | $ 0 | $ 0 |
Non-financial liabilities | 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 | $ 329,802,000 | $ 672,345,000 |
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) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | $ 12,390 | $ 199 |
Total Financial Assets | 1,472,543 | 1,838,822 |
Contingent considerations | 4,755 | 4,622 |
Long-term retention plan | 106,626 | 136,816 |
Derivative Instruments | 1,478 | 13,964 |
Total Financial Liabilities | 112,859 | 155,402 |
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 | 1,460,153 | 1,838,623 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term retention plan | 106,626 | 136,816 |
Total Financial Liabilities | 106,626 | 136,816 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 12,390 | 199 |
Total Financial Assets | 12,390 | 199 |
Contingent considerations | 4,755 | 4,622 |
Derivative Instruments | 1,478 | 13,964 |
Total Financial Liabilities | 6,233 | 18,586 |
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 | 321,286 | 166,483 |
Restricted Cash and cash equivalents | 118,708 | 257,695 |
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 | 321,286 | 166,483 |
Restricted Cash and cash equivalents | 118,708 | 257,695 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and cash equivalents | 144,249 | |
Investments | 739,002 | 565,705 |
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] | ||
Restricted Cash and cash equivalents | 144,249 | |
Investments | 739,002 | 565,705 |
Sovereign Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 37,654 | |
Investments | 281,157 | 666,837 |
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 | |
Investments | $ 281,157 | $ 666,837 |
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 | Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 2,729,269 | $ 1,709,669 | |
Liabilities | [1] | 6,118,221 | 4,356,151 |
Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 906,393 | 767,336 | |
Funds Payable to Customers And Amounts Due To Merchants [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 1,987,083 | 1,733,095 |
Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 193,554 | 120,394 | |
Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 196,561 | 215,918 | |
Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 2,735,528 | 1,409,269 |
Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 99,102 | 110,139 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 2,729,269 | 1,709,669 | |
Liabilities | [1] | 6,139,022 | 4,426,047 |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 906,393 | 767,336 | |
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] | 1,987,083 | 1,733,095 |
Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 193,554 | 120,394 | |
Significant Other Observable Inputs (Level 2) [Member] | Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 196,561 | 215,918 | |
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] | 2,756,329 | 1,479,165 |
Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 99,102 | 110,139 |
Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 36,857 | 158,818 | |
Time Deposits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 36,857 | 158,818 | |
Accounts Receivable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 70,542 | 49,691 | |
Accounts Receivable [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 70,542 | 49,691 | |
Credit Cards [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,428,454 | 863,073 | |
Credit Cards [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,428,454 | 863,073 | |
Loans Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 803,937 | 401,655 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 803,937 | 401,655 | |
Other Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 389,479 | 236,432 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 389,479 | $ 236,432 | |
[1] | The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. |
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 | Sep. 30, 2021 | Dec. 31, 2020 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | $ 1,455,070 | $ 1,830,190 | ||
Financial Gains | 5,214 | 8,433 | ||
Financial Losses | (131) | |||
Estimated Fair Value | 1,460,153 | 1,838,623 | ||
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 321,286 | 204,078 | ||
Financial Gains | 59 | |||
Estimated Fair Value | 321,286 | 204,137 | ||
Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 321,286 | 166,483 | ||
Estimated Fair Value | 321,286 | 166,483 | ||
Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 37,595 | |||
Financial Gains | 59 | |||
Estimated Fair Value | 37,654 | |||
Restricted Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 118,708 | 401,793 | ||
Financial Gains | 151 | |||
Estimated Fair Value | 118,708 | 401,944 | ||
Restricted Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 118,708 | 257,695 | ||
Estimated Fair Value | 118,708 | 257,695 | ||
Restricted Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 144,098 | |||
Financial Gains | 151 | |||
Estimated Fair Value | 144,249 | |||
Short Term Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 1,000,100 | 1,074,381 | ||
Financial Gains | 4,912 | 8,107 | ||
Financial Losses | (1) | |||
Estimated Fair Value | 1,005,011 | 1,082,488 | ||
Short Term Investments [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | [1] | 734,275 | 559,487 | |
Financial Gains | [1] | 4,727 | 6,218 | |
Estimated Fair Value | [1] | 739,002 | 565,705 | |
Short Term Investments [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 265,825 | [1] | 514,894 | |
Financial Gains | 185 | [1] | 1,889 | |
Financial Losses | [1] | (1) | ||
Estimated Fair Value | 266,009 | [1] | 516,783 | |
Long-term Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 14,976 | 149,938 | ||
Financial Gains | 302 | 116 | ||
Financial Losses | (130) | |||
Estimated Fair Value | 15,148 | 150,054 | ||
Long-term Investments [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | [1] | 14,976 | 149,938 | |
Financial Gains | [1] | 302 | 116 | |
Financial Losses | [1] | (130) | ||
Estimated Fair Value | [1] | $ 15,148 | $ 150,054 | |
[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.) |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
One year or less | $ 1,445,005 | |
Two years to three years | 5,673 | |
Three years to four years | 3,888 | |
Four years to five years | 670 | |
More than five years | 4,917 | |
Total | $ 1,460,153 | $ 1,838,623 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | Nov. 09, 2020USD ($) | Oct. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($) |
Loss Contingencies [Line Items] | ||||
Reserves for proceeding-related contingencies | $ 10,341,000 | |||
Aggregate amount for legal actions for which no loss amount has been accrued | 61,115,000 | |||
Loss accrued for reasonably possible legal actions | $ 0 | |||
Number of purchase commitments entered | item | 2 | |||
Buyer Protection Program [Member] | ||||
Loss Contingencies [Line Items] | ||||
Provision for maximum potential exposure | $ 2,649,896,000 | $ 2,535,041,000 | ||
Product liability, contingency, recorded allowance | 4,557,000 | $ 8,364,000 | ||
Brazilian Federal Tax Claims [Member] | ||||
Loss Contingencies [Line Items] | ||||
Deposit with court | 99,129,000 | |||
Accrued interests | 5,767,000 | |||
MercadoPago.com Representações Ltda [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tax authorities assessed taxes and fines | $ 14,734,000 | |||
Ebazar.com.br Ltda [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tax authorities assessed taxes and fines | $ 12,021,000 | |||
Cloud Platform Services [Member] | Fully Paid Off Between June 1, 2020 And May 31, 2024 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchase Commitment, Amount | 240,500,000 | |||
Paid in relation to the contract | 155,162,000 | |||
Cloud Platform Services [Member] | Fully Paid Off Between November 24, 2019 And March 23, 2023 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchase Commitment, Amount | 30,000,000 | |||
Paid in relation to the contract | 15,501,000 | |||
Cloud Platform Services [Member] | Fully Paid Off Between October 1, 2021 And September 30, 2026 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchase Commitment, Amount | 824,000,000 | |||
Cloud Platform Services [Member] | Fully Paid Off Between September 17, 2021 And September 17, 2024 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchase Commitment, Amount | $ 108,000,000 |
Long Term Retention Program (Lo
Long Term Retention Program (Long Term Retention Program Accrued Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | $ 33,047 | $ 23,235 | $ 83,972 | $ 75,142 |
LTRP 2012 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 69 | |||
LTRP 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 125 | |||
LTRP 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 1,453 | 178 | 6,338 | |
LTRP 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 2,421 | 2,955 | 3,811 | 13,010 |
LTRP 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 3,540 | 3,332 | 5,653 | 13,892 |
LTRP 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 2,006 | 1,578 | 3,424 | 6,941 |
LTRP 2019 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 8,663 | 5,741 | 23,883 | 16,061 |
LTRP 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | 8,658 | $ 8,176 | 26,150 | $ 18,706 |
LTRP 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long term retention program | $ 7,759 | $ 20,873 |
Loans Payable And Other Finan_3
Loans Payable And Other Financial Liabilities (Narrative) (Details) | Aug. 24, 2018USD ($)$ / shares$ / item | Aug. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | Jan. 31, 2021USD ($) | Sep. 30, 2021USD ($)$ / shares$ / item | Jan. 14, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Common Stock repurchased (in shares) | shares | 71,175 | |||||||||||||
2.375% Sustainability Notes Due 2026 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||
Debt instrument, interest rate | 2.375% | |||||||||||||
Debt instrument, maturity date | Jan. 14, 2026 | |||||||||||||
3.125% Notes Due 2031 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||||
Debt instrument, interest rate | 3.125% | |||||||||||||
Debt instrument, maturity date | Jan. 14, 2031 | |||||||||||||
2026 Sustainability Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs | $ 10,647,000 | |||||||||||||
2028 Convertible Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on extinguishment of debt | $ 29,953,000 | |||||||||||||
Paid in premium | 19,294,000 | |||||||||||||
Remaining consideration allocated to reacquisition of equity component | 1,484,279,000 | |||||||||||||
Amount paid to enter into capped call transactions | 100,769,000 | $ 120,012,000 | ||||||||||||
Capped call transactions, cash received | $ 294,357,000 | $ 102,382,000 | ||||||||||||
Capped call transactions, common stock received | shares | 89,978 | 57,047 | ||||||||||||
Common Stock repurchased (in shares) | shares | 158,413 | |||||||||||||
Repurchased principal amount | 440,000,000 | |||||||||||||
Total amount paid | $ 1,865,076,000 | |||||||||||||
One Note Converted [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt conversion, converted instrument, principal amount | $ 901,000 | |||||||||||||
Convertible Senior Notes [Member] | Initial Issuance - 2028 Convertible Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||||||||
Convertible Senior Notes [Member] | Additional Issuance - 2028 Convertible Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 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 | ||||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||
Debt instrument, maturity date | Aug. 15, 2028 | |||||||||||||
Convertible senior notes, conversion rate | 2.2553% | |||||||||||||
Converted instrument, principal amount used per conversion | $ / item | 1,000 | 100 | ||||||||||||
Convertible senior notes, conversion price | $ / shares | $ 443.40 | |||||||||||||
Amount paid to enter into capped call transactions | $ 82,682,000 | $ 104,095,000 | $ 8,005,000 | $ 88,362,000 | $ 11,472,000 | $ 91,784,000 | ||||||||
Estimated fair value | $ 1,690,241,000 | $ 3,416,819,000 | ||||||||||||
Common stock, closing price per share | $ / shares | $ 1,679.40 | |||||||||||||
Debt instrument convertible, if-converted value in excess of principal | $ 1,223,991,000 | |||||||||||||
Debt instrument outstanding | $ 439,092,000 | $ 879,993,000 |
Loans Payable And Other Finan_4
Loans Payable And Other Financial Liabilities (Summary Of Loans Payable And Other Financial Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Convertible notes, current | $ 1,127 | $ 6,649 |
Finance lease obligations, current | 9,476 | 7,394 |
Credit card collateralized debt | 1,976 | 12,920 |
Collateralized debt, current | 58,743 | 25,342 |
Other lines of credit, current | 305 | 1,848 |
Current loans payable and other financial liabilities | 765,135 | 548,393 |
Convertible notes, noncurrent | 307,874 | 595,800 |
Financial Bills, noncurrent | 93,130 | |
Finance lease obligations, noncurrent | 31,793 | 16,261 |
Collateralized debt, noncurrent | 421,859 | 248,815 |
Other lines of credit, noncurrent | 508 | |
Non Current loans payable and other financial liabilities | 1,970,393 | 860,876 |
Loan From Bank 2.86% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 51,115 | 92,895 |
Debt weight average rate | 2.86% | |
Loans From Banks, -% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | 142,178 | |
Loan From Bank, LIBOR 3M + 0.7408% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 60,077 | |
Loan From Bank, LIBOR 3M + 0.7408% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.7408% | |
Loans From Banks, TIIE+2.20% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 33,167 | 18,418 |
Loans From Banks, TIIE+2.20% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
Loans From Banks, TIIE+2.20%, September, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 17,835 | |
Loans From Banks, TIIE+2.20%, September, 2021 [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
Loan From Bank 38.75% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 20,492 | 14,400 |
Debt weight average rate | 38.75% | |
Loan From Bank 38.50% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 20,469 | |
Debt weight average rate | 38.50% | |
Loan From Banks 6.30% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 8,154 | |
Debt weight average rate | 6.30% | |
Loan From Banks 6.14% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 15,713 | 13,406 |
Debt weight average rate | 6.14% | |
Loan From Banks 2.46% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 1,503 | |
Loans from banks, noncurrent | $ 4,047 | |
Debt weight average rate | 2.46% | |
Loan From Banks, TJLP + 0.8% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from banks, noncurrent | $ 4,136 | |
Loan From Banks, TJLP + 0.8% [Member] | TJLP [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
Secured Lines Of Credit 34.11% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 57,759 | 18,311 |
Debt weight average rate | 34.11% | |
Secured Lines Of Credit 36.65% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 20,460 | |
Debt weight average rate | 36.65% | |
Secured Lines Of Credit, -% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | 58,437 | |
Secured Lines Of Credit, 10.02% [Member | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 3,362 | |
Secured lines of credit | $ 16,758 | |
Debt weight average rate | 10.02% | |
Unsecured Line Of Credit 6.47% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 18,694 | 20,055 |
Debt weight average rate | 6.47% | |
Unsecured Line Of Credit -% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 116,140 | |
Deposit Certifcates, 98% to 129% Of CDI [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | $ 358,084 | |
2.375% Sustainability Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 2,006 | |
Senior Notes, noncurrent | 396,650 | |
3.125% Notes Due 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 4,618 | |
Senior Notes, noncurrent | $ 693,638 | |
Financial Bills, CDI + 1.10% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.10% | |
Minimum [Member] | Deposit Certifcates, 98% to 129% Of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 98.00% | |
Maximum [Member] | Deposit Certifcates, 98% to 129% Of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 129.00% |
Loans Payable And Other Finan_5
Loans Payable And Other Financial Liabilities (Carrying Amounts Of Liability And Equity Components) (Details) - 2028 Convertible Senior Notes [Member] - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2018 | Aug. 24, 2018 | ||
Debt Instrument [Line Items] | |||||
Remaining period over which the unamortized debt discount will be amortized | 7 years | ||||
Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of the equity component | [1] | $ 163,653 | $ 327,305 | ||
Debt instrument outstanding | 439,092 | 879,993 | |||
Unamortized debt discount | [2] | (127,029) | (275,299) | ||
Unamortized transaction costs related to the debt component | (4,189) | (8,894) | |||
Contractual coupon interest accrual | 48,638 | 41,409 | |||
Contractual coupon interest payment | (47,511) | (34,760) | |||
Net carrying amount | $ 309,001 | $ 602,449 | |||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |
Transaction Costs Allocated Between Liability And Equity Components | $ 3,082 | ||||
[1] | Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. | ||||
[2] | As of September 30, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.0 years. |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Contractual coupon interest expense | $ 2,196 | $ 4,400 | $ 7,229 | $ 13,200 |
Amortization of debt discount | 3,511 | 6,542 | 11,315 | 19,269 |
Amortization of debt issuance costs | 86 | 146 | 270 | 421 |
Total interest expense related to the Notes | $ 5,793 | $ 11,088 | $ 18,814 | $ 32,890 |
Securitization Transactions (Co
Securitization Transactions (Collateralized Debt) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Mercado Crédito I [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 134,763 |
Creditórios Arandu [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 182,661 |
Nao Padronizado [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 18,506 |
Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 1,998 |
Mercado Crédito X [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 10,621 |
Mercado Crédito Consumo IV [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 6,468 |
Mercado Crédito Consumo V [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 13,304 |
Mercado Crédito Consumo VI [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 13,836 |
Mercado Crédito XI [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 9,838 |
Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 88,607 |
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% |
CDI [Member] | Nao Padronizado [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.50% |
BADLAR Rate [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito X [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito Consumo IV [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito Consumo V [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito Consumo VI [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito XI [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 44.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito X [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 45.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito Consumo IV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 44.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito Consumo V [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito Consumo VI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito XI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito X [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito Consumo IV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito Consumo V [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito Consumo VI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito XI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
Diario Oficial [Member] | Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.00% |
Securitization Transactions (As
Securitization Transactions (Assets And Liabilities Of The Trust) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 435,348 | $ 651,830 |
Short-term investments | 1,041,868 | 1,241,306 |
Credit cards receivable and other means of payments, net | 1,428,454 | 863,073 |
Loans receivable, net | 772,753 | 385,036 |
Other assets | 267,912 | 152,959 |
Total current assets | 5,283,121 | 5,346,807 |
Long-term investments | 38,027 | 166,111 |
Loans receivable, net | 31,184 | 16,619 |
Total non-current assets | 1,516,896 | 1,179,525 |
Total assets | 6,800,017 | 6,526,332 |
Accounts payable and accrued expenses | 906,393 | 767,336 |
Loans payable and other financial liabilities | 765,135 | 548,393 |
Total current liabilities | 4,286,531 | 3,635,880 |
Loans payable and other financial liabilities | 1,970,393 | 860,876 |
Total non-current liabilities | 2,390,510 | 1,238,874 |
Total liabilities | 6,677,041 | 4,874,754 |
Trust Created In Brazil [Member] | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 150,102 | 249,872 |
Short-term investments | 174 | |
Credit cards receivable and other means of payments, net | 169,753 | |
Loans receivable, net | 428,571 | 113,846 |
Total current assets | 748,600 | 363,718 |
Long-term investments | 4,828 | |
Loans receivable, net | 24,175 | 9,581 |
Total non-current assets | 29,003 | 9,581 |
Total assets | 777,603 | 373,299 |
Accounts payable and accrued expenses | 300 | 100 |
Loans payable and other financial liabilities | 58,743 | 25,342 |
Total current liabilities | 59,043 | 25,442 |
Loans payable and other financial liabilities | 421,859 | 248,815 |
Total non-current liabilities | 421,859 | 248,815 |
Total liabilities | $ 480,902 | $ 274,257 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 389,806 | $ 303,214 |
Operating lease liabilities | 391,010 | 298,847 |
Finance Leases, Property and equipment, at cost | 60,890 | 29,798 |
Finance Leases, Accumulated depreciation | (10,808) | (4,086) |
Finance Leases, Property and equipment, net | 50,082 | 25,712 |
Loans payable and other financial liabilities | $ 41,269 | $ 23,655 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Sep. 30, 2021 | |
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 | 8.00% | [1] |
Weighted average discount rate, Finance leases | 14.00% | [1] |
[1] | Includes discount rates of leases in local currency and U.S dollar . |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 55,668 | $ 29,941 |
Depreciation of property and equipment | 6,782 | 1,564 |
Interest on lease liabilities | 3,377 | 1,199 |
Total finance lease cost | $ 10,159 | $ 2,763 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 51,403 | $ 28,705 |
Financing cash flows from finance leases | 12,612 | 2,499 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 137,569 | 73,340 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 28,728 | $ 1,487 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Leases, One year or less | $ 86,736 | |
Operating Leases, One year to two years | 84,234 | |
Operating Leases, Two years to three years | 79,631 | |
Operating Leases, Three years to four years | 70,779 | |
Operating Leases, Fours years to five years | 48,916 | |
Operating Leases, Thereafter | 123,510 | |
Operating Leases, Total lease payments | 493,806 | |
Operating Leases, Less imputed interest | (102,796) | |
Operating leases, Total | 391,010 | $ 298,847 |
Finance Leases, One year or less | 14,716 | |
Finance Leases, One year to two years | 14,488 | |
Finance Leases, Two years to three years | 13,566 | |
Finance Leases, Three years to four years | 7,462 | |
Finance Leases, Fours years to five years | 2,385 | |
Finance Leases, Thereafter | 1,409 | |
Finance Leases, Total lease payments | 54,026 | |
Finance Leases, Less imputed interest | (12,757) | |
Finance Leases, Total | $ 41,269 | $ 23,655 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Notional Amounts) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 89,159 |
Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 94,125 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 69,000 |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | 183,658 |
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 60,000 |
Derivative Instruments (Summa_2
Derivative Instruments (Summary Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 6,520 | $ (2,469) |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 1,353 | (2,469) |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2,406 | |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2,623 | 199 |
Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 927 | 2,858 |
Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 551 | $ 11,106 |
Swap Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 5,167 | |
Cross Currency Swap Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 5,167 | |
Cross Currency Swap Contracts [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 2,194 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Contracts On Comprehensive Income) (Details) - Designated as Hedging Instrument [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | $ (2,469) |
Amount of Gain (Loss) recognized in other comprehensive loss | 6,185 |
Amount of (gain) loss reclassified from accumulated other comprehensive loss | 2,804 |
End Balance | 6,520 |
Foreign Exchange Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | (2,469) |
Amount of Gain (Loss) recognized in other comprehensive loss | 1,018 |
Amount of (gain) loss reclassified from accumulated other comprehensive loss | 2,804 |
End Balance | 1,353 |
Swap Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain (Loss) recognized in other comprehensive loss | 5,167 |
End Balance | $ 5,167 |
Derivative Instruments (Effec_2
Derivative Instruments (Effect Of Derivative Contracts On Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments [Abstract] | ||||
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net | $ 7,396 | $ 4,709 | $ (3,590) | $ 26,535 |
Cross currency swap contract not designated as hedging instrument recognized in foreign exchange | 2,688 | 2,688 | ||
Interest rate contracts not designated as hedging instruments recognized in interest and other, net | $ (157) | $ 30 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 07, 2021 | Aug. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 04, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Foreign currency loss | $ 67,119 | $ 59,471 | ||||
August 30, 2020 Board Authorized Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, par value | $ 0.001 | |||||
Shares acquired from repurchase program | 82,843 | 82,843 | ||||
Common Stock repurchased, shares | 229,588 | |||||
Foreign currency loss | $ 6,653 | $ 37,653 | ||||
Repurchase program, expiration date | Aug. 31, 2021 | |||||
August 4, 2021 Board Authorized Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Aggregate consideration amount of repurchase program | $ 150,000 | |||||
Repurchase program, expiration date | Aug. 31, 2022 | |||||
Maximum [Member] | August 30, 2020 Board Authorized Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Aggregate consideration amount of repurchase program | $ 350,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Events [Member] - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2021 | Oct. 31, 2021 | Nov. 01, 2021 |
Kangu Participações S.A [Member] | |||
Subsequent Event [Line Items] | |||
Percentage of acquisition | 100.00% | ||
Aleph Group, Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Percentage of acquisition | 1.00% | ||
Business acquisition, number of shares acquired | 2,500,000,000 | ||
Business acquistion, consideration transferred | $ 25,000 | ||
Joint Venture [Member] | |||
Subsequent Event [Line Items] | |||
Initial public offering, shares | 28,750,000 | ||
Shares issued, price per share | $ 10 | ||
Joint Venture [Member] | Private Placement [Member] | |||
Subsequent Event [Line Items] | |||
Initial public offering, shares | 975,000 | ||
Shares issued, price per share | $ 10 | ||
MELI Kaszek Pioneer Corp [Member] | Joint Venture [Member] | Forward Purchase Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Shares issued, price per share | $ 10 | ||
Number of shares committed to purchase | 5,000,000 |