Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Entity Address [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | |
Country Region | +598 | |
City Area Code | 2 | |
Local Phone Number | 927-2770 | |
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 | 50,377,981 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001099590 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | MELI | |
Security Exchange Name | NASDAQ | |
2.375% Sustainability Notes Due 2026 [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | 2.375% Sustainability Notes due 2026 | |
Trading Symbol | MELI26 | |
Security Exchange Name | NASDAQ | |
Notes Due 2031 [Member] | ||
Entity Address [Line Items] | ||
Title of 12(b) Security | 3.125% Notes due 2031 | |
Trading Symbol | MELI31 | |
Security Exchange Name | NASDAQ |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,573 | $ 2,585 |
Restricted cash and cash equivalents | 841 | 1,063 |
Short-term investments (941 and 602 held in guarantee - see Note 4) | 1,412 | 810 |
Accounts receivable, net | 98 | 98 |
Credit cards receivable and other means of payments, net | 2,512 | 1,839 |
Loans receivable, net | 1,657 | 1,199 |
Prepaid expenses | 79 | 40 |
Inventories | 239 | 253 |
Other assets | 294 | 288 |
Total current assets | 8,705 | 8,175 |
Non-current assets: | ||
Long-term investments | 121 | 89 |
Loans receivable, net | 80 | 61 |
Property and equipment, net | 967 | 807 |
Operating lease right-of-use assets | 542 | 461 |
Goodwill | 162 | 148 |
Intangible assets, net | 43 | 45 |
Deferred tax assets | 235 | 181 |
Other assets | 168 | 134 |
Total non-current assets | 2,318 | 1,926 |
Total assets | 11,023 | 10,101 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,027 | 1,036 |
Funds payable to customers | 2,483 | 2,393 |
Amounts payable due to credit and debit card transactions | 420 | 337 |
Salaries and social security payable | 319 | 313 |
Taxes payable | 277 | 291 |
Loans payable and other financial liabilities | 1,459 | 1,285 |
Operating lease liabilities | 109 | 92 |
Other liabilities | 134 | 90 |
Total current liabilities | 6,228 | 5,837 |
Non-current liabilities: | ||
Amounts payable due to credit and debit card transactions | 4 | 4 |
Salaries and social security payable | 5 | 20 |
Taxes payable | 28 | 0 |
Loans payable and other financial liabilities | 2,638 | 2,233 |
Operating lease liabilities | 434 | 372 |
Deferred tax liabilities | 42 | 62 |
Other liabilities | 55 | 42 |
Total non-current liabilities | 3,206 | 2,733 |
Total liabilities | 9,434 | 8,570 |
Commitments and Contingencies (Note 9) | ||
Equity | ||
Common stock, $0.001 par value, 110,000,000 shares authorized, 50,377,981 and 50,418,980 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 |
Additional paid-in capital | 2,308 | 2,439 |
Treasury stock | (829) | (790) |
Retained earnings | 496 | 397 |
Accumulated other comprehensive loss | (386) | (515) |
Total Equity | 1,589 | 1,531 |
Total Liabilities and Equity | $ 11,023 | $ 10,101 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Interim Condensed Consolidated Balance Sheets [Abstract] | ||
Short-term investments, held in guarantee | $ 941 | $ 602 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 50,377,981 | 50,418,980 |
Common stock, shares outstanding | 50,377,981 | 50,418,980 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net revenues | $ 2,248 | $ 1,378 | |
Cost of net revenues | (1,175) | (787) | |
Gross profit | 1,073 | 591 | |
Operating expenses: | |||
Product and technology development | (234) | (126) | |
Sales and marketing | (541) | (288) | |
General and administrative | (159) | (86) | |
Total operating expenses | (934) | (500) | |
Income from operations | 139 | 91 | |
Other income (expenses): | |||
Interest income and other financial gains | 31 | 25 | |
Interest expense and other financial losses | [1] | (56) | (91) |
Foreign currency losses | (3) | (15) | |
Net income before income tax expense | 111 | 10 | |
Income tax expense | (46) | (44) | |
Net income (loss) | $ 65 | $ (34) | |
Basic EPS: Basic net income (loss) | |||
Available to shareholders per common share | $ 1.30 | $ (0.68) | |
Weighted average of outstanding common shares | 50,408,754 | 49,867,625 | |
Diluted EPS: Diluted net income (loss) | |||
Available to shareholders per common share | $ 1.30 | $ (0.68) | |
Weighted average of outstanding common shares | 50,408,754 | 49,867,625 | |
Service [Member] | |||
Net revenues | $ 1,997 | $ 1,230 | |
Product [Member] | |||
Net revenues | $ 251 | $ 148 | |
[1] | Includes $ 49 million 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 Millions | 1 Months Ended |
Jan. 31, 2021USD ($) | |
2028 Convertible Senior Notes [Member] | |
Loss on extinguishment of debt | $ 49 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interim Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 65 | $ (34) |
Other comprehensive income (loss), net of income tax: | ||
Currency translation adjustment | 151 | (42) |
Unrealized (losses) gains on hedging activities | (24) | 4 |
Less: Reclassification adjustment for (losses) gains from accumulated other comprehensive income (loss) | (2) | |
Net change in accumulated other comprehensive income (loss), net of income tax | 129 | (38) |
Total Comprehensive income (loss) | $ 194 | $ (72) |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements Of Equity - USD ($) shares in Millions, $ in Millions | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Additional Paid-in Capital [Member]Cumulative Effect, Period of Adoption, Adjustment [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 |
Beginning Balance at Dec. 31, 2020 | $ 1,861 | $ (55) | $ 314 | $ (468) | $ 1,652 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 50 | ||||||||||||||
Capped Call | (101) | (101) | |||||||||||||
Repurchase of 2028 Notes Conversion Option | (1,484) | (1,484) | |||||||||||||
Common Stock repurchased | (25) | (25) | |||||||||||||
Net income (loss) | (34) | (34) | |||||||||||||
Other comprehensive income (loss) | (38) | (38) | |||||||||||||
Ending Balance at Mar. 31, 2021 | 276 | (80) | 280 | (506) | (30) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 50 | ||||||||||||||
Beginning Balance at Dec. 31, 2021 | $ (131) | $ 2,308 | 2,439 | $ (790) | (790) | $ 34 | $ 431 | 397 | $ (515) | (515) | $ (97) | $ 1,434 | 1,531 | ||
Beginning Balance (in shares) at Dec. 31, 2021 | 50 | 50 | |||||||||||||
Common Stock repurchased | (39) | (39) | |||||||||||||
Net income (loss) | 65 | 65 | |||||||||||||
Other comprehensive income (loss) | 129 | 129 | |||||||||||||
Ending Balance at Mar. 31, 2022 | $ 2,308 | $ (829) | $ 496 | $ (386) | $ 1,589 | ||||||||||
Ending Balance (in shares) at Mar. 31, 2022 | 50 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statement Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash flows from operations: | |||
Net income (loss) | $ 65 | $ (34) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Unrealized devaluation loss, net | 30 | 25 | |
Impairment of digital assets | 2 | 0 | |
Depreciation and amortization | 84 | 38 | |
Accrued interest income | (24) | (4) | |
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 40 | 34 | |
Bad debt charges | 255 | 84 | |
Financial results on derivative instruments | 37 | (19) | |
LTRP accrued compensation | 30 | 22 | |
Deferred income taxes | (24) | 4 | |
Changes in assets and liabilities: | |||
Accounts receivable | (71) | 21 | |
Credit cards receivables and other means of payments | (447) | (62) | |
Prepaid expenses | (35) | (15) | |
Inventories | 38 | (19) | |
Other assets | (30) | (35) | |
Payables and accrued expenses | (148) | (144) | |
Funds payable to customers | (89) | (110) | |
Amounts payable due to credit and debit card transactions | 28 | 3 | |
Other liabilities | 0 | (63) | |
Interest received from investments | 26 | 9 | |
Net cash used in operating activities | (233) | (265) | |
Cash flows from investing activities: | |||
Purchase of investments | (2,903) | (2,415) | |
Proceeds from sale and maturity of investments | 2,425 | 2,589 | |
Receipts from settlements of derivative instruments | 0 | 2 | |
Payment for settlements of derivative instruments | (2) | (4) | |
Purchases of intangible assets | 0 | (8) | |
Changes in principal of loans receivable, net | (607) | (149) | |
Purchases of property and equipment | (137) | (113) | |
Net cash used in investing activities | (1,224) | (98) | |
Cash flows from financing activities: | |||
Proceeds from loans payable and other financial liabilities | 3,324 | 1,840 | |
Payments on loans payable and other financial liabilities | (3,129) | (704) | |
Payments on repurchase of the 2028 Notes | 0 | (1,865) | |
Payment of finance lease obligations | (4) | (4) | |
Purchase of convertible note capped call | 0 | (101) | |
Common Stock repurchased | (39) | (25) | |
Net cash provided by (used in) financing activities | 152 | (859) | |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | 71 | (98) | |
Net decrease in cash, cash equivalents, restricted cash and cash equivalents | (1,234) | (1,320) | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the year | 3,648 | [1] | 2,508 |
Cash, cash equivalents, restricted cash and cash equivalents, end of the year | $ 2,414 | [1] | $ 1,188 |
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow |
Nature Of Business
Nature Of Business | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 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, Mexico and Chile. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 $ 1,152 million and $ 978 million as of March 31, 2022 and December 31, 2021, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2022 and December 31, 2021. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2022 and 2021. These interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2021, 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, 2021. During the three-month period ended March 31, 2022, there were no material updates made to the Company’s significant accounting policies, except for the adoption of ASU 2020-06 as of January 1, 2022. See section Recently Adopted Accounting Standards of this Note. 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, 2021. 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, uncollectible accounts and chargebacks of $ 720 million and $ 474 million as of March 31, 2022 and December 31, 2021, 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, 2021 was $ 34 million, of which $ 12 million was recognized as revenue during the three-month periods ended March 31, 2022. As of March 31, 2022, total deferred revenue was $ 34 million, mainly due to fees related to classifieds advertising services billed and loyalty programs that are expected to be recognized as revenue in the coming months. Digital Assets 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 U.S. dollars, 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 March 31, 2022 was 111.01. 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 March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (In millions) Assets $ 2,446 $ 2,479 Liabilities 1,689 1,874 Net Assets $ 757 $ 605 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 increased its valuation allowance in certain subsidiaries in its Mexican operations by $ 15 million and $ 12 million for the three-month periods ended March 31, 2022 and 2021, 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 October 7, 2020, changes to the knowledge-based economy promotional regime were finally approved by the Congress. The approved regime is effective as of January 1, 2020 through 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 $ 1 million during the three-month period ended March 31, 2022. The aggregate per share effect of the income tax benefit amounted to $ 0.03 for the three-month period ended March 31, 2022. Furthermore, the Company recorded a social security benefit of $ 15 million during the three-month period ended March 31, 2022 . Additionally, during the three-month period ended March 31, 2022, we accrued a charge of $ 1 million to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. 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 $ 16 million and $ 1 million as of March 31, 2022 and 2021, respectively. Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (In millions) Accumulated other comprehensive loss: Foreign currency translation $ ( 372 ) $ ( 523 ) Unrealized (losses) gains on hedging activities ( 18 ) 8 Estimated tax benefit (expense) on unrealized gains (losses) 4 — $ ( 386 ) $ ( 515 ) The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three-months ended March 31, 2022: Unrealized Foreign Estimated tax Gains (losses) on Currency benefit hedging activities, net Translation (expense) Total (In millions) Balances as of December 31, 2021 $ 8 $ ( 523 ) $ — $ ( 515 ) Other comprehensive income (loss) before reclassifications ( 29 ) 151 5 127 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 3 — ( 1 ) 2 Net current period other comprehensive income (loss) ( 26 ) 151 4 129 Ending balance $ ( 18 ) $ ( 372 ) $ 4 $ ( 386 ) 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 millions) Unrealized losses on hedging activities $ ( 3 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 1 Income tax expense Total reclassifications for the period $ ( 2 ) 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 August 5, 2020 the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“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, the update 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 Company adopted this standard effective January 1, 2022, resulting in an increase of the carrying value of the 2028 Notes of $ 123 million, a decrease of deferred tax liability of $ 26 million and a change in the beginning balance of equity of $ 97 million. In addition, the Company reduced its reported interest expense and is required to use the if-converted method for calculating diluted earnings per share. Recently issued accounting pronouncements not yet adopted On March 31, 2022, the FASB issued ASU 2022-02 Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses, which eliminates the accounting guidance on TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the guidance requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this update are effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. The amendments should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, where an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption . The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On March 31, 2022, the Securities and Exchange Commission released the Staff Accounting Bulletin (SAB) No. 121. This SAB express views of the staff regarding the accounting for entities that have obligations to safeguard crypto-assets held for their platform users as well as any agent acting on its behalf in safeguarding the users’ crypto-assets. As long as an entity is responsible for safeguarding the crypto-assets held for its platform users, including maintaining the cryptographic key information necessary to access the crypto-assets, the staff believes that the entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for its platform users, which should be measured at initial recognition and each reporting date at the fair value. The staff also believes it would be appropriate for the entity to recognize an asset at the same time that it recognizes the safeguarding liability, measured at initial recognition and each reporting date at the fair value of the crypto-assets held for its platform users. This interpretation is effective the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. The Company is assessing whether is under the scope of this interpretation and the effects that the application of this interpretation may have on its financial statements. 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. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | 3. Net income (loss) per share Basic earnings per share for the Company’s common stock is computed by dividing, net income (loss) 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. The denominator for diluted net income (loss) per share for the three-month periods ended March 31, 2022 and 2021 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, 2021, contained in the Company ’s Annual Report on Form 10-K filed with the SEC for more details. Net income (loss) per share of common stock is as follows for the three-month periods ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In millions) Basic Diluted Basic Diluted Net income (loss) per common share $ 1.30 $ 1.30 $ ( 0.68 ) $ ( 0.68 ) Numerator: Net income (loss) corresponding to common stock $ 65 $ 65 $ ( 34 ) $ ( 34 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 50,408,754 — 49,867,625 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 50,408,754 — 49,867,625 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, December 31, 2022 2021 (In millions) Cash and cash equivalents $ 1,573 $ 2,585 Restricted cash and cash equivalents Securitization Transactions $ 410 $ 282 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 296 Bank account (Argentine Central Bank regulation) 374 449 Bank account (Chilean Financial Market Commission) 40 21 Money Market Funds (Secured lines of credit guarantee) 16 15 Cash in bank account 1 — Total restricted cash and cash equivalents $ 841 $ 1,063 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 2,414 $ 3,648 Short-term investments Time Deposits $ 19 $ 16 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 941 602 Sovereign Debt Securities 372 192 Corporate Debt Securities 80 — Total short-term investments $ 1,412 $ 810 Long-term investments Sovereign Debt Securities (**) $ 52 $ 23 Securitization Transactions (***) 15 13 Equity interest held at cost 54 53 Total long-term investments $ 121 $ 89 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow . (**) $ 16 million held by the Company’s Brazilian subsidiary in guarantee for secured lines of credit. (See Note 11 – Loans payable and other financial liabilities). (***) 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 and offer a payment account to its customers. On July 7, 2020, the CBA approved the registration of the Argentine subsidiary in the registry for payment service providers who offer payment accounts (“PSPOCP” according to its Spanish acronym). These regulations set forth certain rules that require PSPOCP to, among other things, (i) deposit and maintain users’ funds in specific local bank accounts, payable on demand; (ii) implement a monthly reporting regime with the CBA; (iii) segregate information related to users’ investments funds; (iv) segregate the Company’s funds from users’ funds; and (v) to comply with transparency provisions regarding PSPOCP’s advertising material and documents. As of March 31, 2022, in accordance with the regulation, the Company held customer’s funds for the amount of $ 374 million representing the total amount of funds in payment accounts of customers, payable to them on demand. b) On December 30, 2021, the board of the CBA issued a regulation by which financial institutions must set up a reserve of 100% of the customer funds deposited by payment service providers that offer payment accounts. According to this new regulation, from January 1, 2022, 100% of our customer funds that have not been invested by users in Mercado Fondo, have to remain deposited at the CBA and available for users. On January 13, 2022, we challenged such regulation, and sought for an injunction to suspend the effects pending resolution of the challenge. On March 22, 2022, the CBA rejected our challenge. On April 22, 2022, we sought a new preliminary injunction with the courts, in order to suspend the effects of the regulation until a final decision on the merits is granted on the case to be initiated within 90 days following that request, which is pending resolution by the court. As of the date of issuance of this report, the Company is reviewing its legal strategy to continue litigating this case with the Courts. Regulation issued by Central Bank of Brazil 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 March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, in accordance with the regulation, the Company held $ 941 million deposited in Brazilian federal government bonds, respectively, as a mandatory guarantee (the “Central Bank of Brazil Mandatory Guarantee”). During March 2022, the Central Bank of Brazil announced new prudential rules for payment institutions based on their size and complexity and raising standards for required capital. The new framework, which will be effective starting in January 2023 with full implementation by January 2025, will extend the application of the rule regarding proportionality of regulatory requirements (currently applicable to conglomerates of financial institutions) to financial conglomerates led by payment institutions. The Company is assessing the effects that the new rules may have on its regulated Brazilian subsidiaries. Chilean subsidiaries regulated by Financial Market Commission On November 5, 2021, by means of exempt resolution No. 6312, the Financial Market Commission (Comisión para el Mercado Financiero – “CMF”) authorized Mercado Pago Emisora S.A. to carry out the exclusive business of non-bank issuer of payment cards with provision of funds. Mercado Pago Emisora S.A. became an institution regulated by the CMF, being obligated, among other things, to: (i) deliver information on its financial and operational management on a regular basis; (ii) maintain certain minimum capital required; (iii) to set up a determine liquidity reserve; and (iv) to deposit and maintain users’ funds in specific banks’ accounts. On November 9, 2021, by means of exempt resolution No. 6358, the CMF authorized MercadoPago S.A. to carry out the exclusive business of payment card operator. With this authorization, Mercado Pago S.A. became an institution regulated by the CMF, being obliged, among other things, to: (i) provide information on its financial and operational management on a regular basis: (ii) maintain certain minimum capital required; and (iii) to constitute a determined liquidity reserve. As of March 31, 2022, in accordance with the regulations, the Chilean subsidiaries held $ 40 million as restricted cash related to liquidity reserves. |
Loans Receivable, Net
Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021, Loans receivable, net were as follows: March 31, December 31, 2022 2021 (In millions) On-line merchant $ 426 $ 361 Consumer 1,270 851 In-store merchant 251 187 Credit Cards 468 296 Loans receivable 2,415 1,695 Allowance for uncollectible accounts ( 678 ) ( 435 ) Loans receivable, net $ 1,737 $ 1,260 The credit quality analysis of loans receivable was as follows: March 31, December 31, 2022 2021 (In millions) 1-30 days past due $ 145 $ 90 31-60 days past due 90 47 61 -90 days past due 88 37 91 -120 days past due 71 37 121 -150 days past due 55 31 151 -180 days past due 41 25 181 -210 days past due 39 24 211 -240 days past due 34 23 241 -270 days past due 28 21 271 -300 days past due 26 21 301 -330 days past due 26 30 331 -360 days past due 23 25 Total past due 666 411 To become due 1,749 1,284 Total $ 2,415 $ 1,695 The following table summarizes the allowance for uncollectible accounts activity during the three-month period ended March 31, 2022 and 2021: March 31, 2022 2021 (In millions) Balance at beginning of year $ 435 $ 78 Charged/credited to Net Income (loss) 253 86 Charges/Utilized /Currency translation adjustments/Write-offs ( 10 ) ( 24 ) Balance at end of period $ 678 $ 140 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill And Intangible Assets | 6. G oodwill and intangible assets Intangible assets The composition of goodwill and intangible assets is as follows: March 31, December 31, 2022 2021 (In millions) Goodwill $ 162 $ 148 Intangible assets with indefinite lives - Trademarks 7 8 - Digital assets (1)(2) 19 21 Amortizable intangible assets - Licenses and others 13 13 - Non-compete agreement 4 4 - Customer list 13 13 - Trademarks 8 7 - Hubs Network 4 3 - Others 4 3 Total intangible assets $ 72 $ 72 Accumulated amortization ( 29 ) ( 27 ) Total intangible assets, net $ 43 $ 45 (1) Digital assets are net of $ 11 million and $ 9 million of impairment losses as of March 31, 2022 and December 31, 2021. (2) As of March 31, 2022, $ 19 million of digital assets were lent to a counterpart in return for a fee. The Company has not surrendered the control of the assets. Goodwill The changes in the carrying amount of goodwill for the three-month period ended March 31, 2022 and the year ended December 31, 2021 are as follows: Three Months Ended March 31, 2022 Brazil Argentina Mexico Chile Colombia Other Countries Total (In millions) Balance, beginning of the period $ 56 $ 10 $ 37 $ 37 $ 6 $ 2 $ 148 Effect of exchange rates changes 10 — 1 3 — — 14 Balance, end of the period $ 66 $ 10 $ 38 $ 40 $ 6 $ 2 $ 162 Year Ended December 31, 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In millions) Balance, beginning of the year $ 20 $ 10 $ 32 $ 17 $ 4 $ 2 $ 85 Business Acquisitions 37 — 6 23 2 — 68 Effect of exchange rates changes ( 1 ) — ( 1 ) ( 3 ) — — ( 5 ) Balance, end of the year $ 56 $ 10 $ 37 $ 37 $ 6 $ 2 $ 148 Amortizable intangible assets 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 $ 5 million and $ 1 million for the three-month periods ended March 31, 2022 and 2021. The following table summarizes the remaining amortization of intangible assets (in millions of U.S. dollars) with definite useful life as of March 31, 2022 : For year ended 12/31/2022 $ 5 For year ended 12/31/2023 5 For year ended 12/31/2024 3 For year ended 12/31/2025 1 Thereafter 3 $ 17 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended March 31, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,252 $ 518 $ 364 $ 114 $ 2,248 Direct costs ( 1,065 ) ( 320 ) ( 328 ) ( 110 ) ( 1,823 ) Direct contribution 187 198 36 4 425 Operating expenses and indirect costs of net revenues ( 286 ) Income from operations 139 Other income (expenses): Interest income and other financial gains 31 Interest expense and other financial losses ( 56 ) Foreign currency losses ( 3 ) Net income before income tax expense $ 111 Three Months Ended March 31, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 769 $ 297 $ 230 $ 82 $ 1,378 Direct costs ( 618 ) ( 189 ) ( 221 ) ( 64 ) ( 1,092 ) Direct contribution 151 108 9 18 286 Operating expenses and indirect costs of net revenues ( 195 ) Income from operations 91 Other income (expenses): Interest income and other financial gains 25 Interest expense and other financial losses ( 91 ) Foreign currency losses ( 15 ) Net income before income tax expense $ 10 The following table summarizes the allocation of property and equipment, net based on geography: March 31, December 31, 2022 2021 (In millions) US property and equipment, net $ 1 $ 1 Other countries Argentina 183 174 Brazil 518 395 Mexico 190 176 Other countries 75 61 $ 966 $ 806 Total property and equipment, net $ 967 $ 807 The following table summarizes the allocation of the goodwill and intangible assets based on geography: March 31, December 31, 2022 2021 (In millions) US intangible assets $ 19 $ 21 Other countries goodwill and intangible assets Argentina 16 16 Brazil 69 60 Mexico 43 41 Chile 48 45 Other countries 10 10 $ 186 $ 172 Total goodwill and intangible assets $ 205 $ 193 Consolidated net revenues by similar products and services for the three-month periods ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, Consolidated Net Revenues 2022 2021 (In millions) Commerce $ 1,277 $ 911 Fintech 971 467 Total $ 2,248 $ 1,378 |
Fair Value Measurement Of Asset
Fair Value Measurement Of Assets And Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021: Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2022 (Level 1) (Level 2) (Level 3) 2021 (Level 1) (Level 2) (Level 3) (In millions) Assets Cash and Cash Equivalents: Money Market Funds $ 479 $ 479 $ — $ — $ 1,079 $ 1,079 $ — $ — Sovereign Debt Securities — — — — 16 16 — — Corporate Debt Securities 60 60 — — — — — — Restricted Cash and cash equivalents: Money Market Funds 300 300 — — 210 210 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 296 296 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 941 941 — — 602 602 — — Sovereign Debt Securities 439 439 — — 228 228 — — Corporate Debt Securities 80 80 — — — — — — Other Assets: Derivative Instruments 1 — — 1 17 — — 17 Total Financial Assets $ 2,300 $ 2,299 $ — $ 1 $ 2,448 $ 2,431 $ — $ 17 Liabilities: Contingent considerations $ 9 $ — $ — $ 9 $ 9 $ — $ — $ 9 Long-term retention plan 33 — 33 — 103 — 103 — Derivative Instruments 53 — — 53 6 — — 6 Total Financial Liabilities $ 95 $ — $ 33 $ 62 $ 118 $ — $ 103 $ 15 As of March 31, 2022 and December 31, 2021, the Company’s financial assets and liabilities were valued at fair value 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 is determined considering the prevailing risk free interest rate and spot exchange rate. 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. As of March 31, 2022 and December 31, 2021, 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, a mounts payable due to credit and debit card transactions , 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 March 31, 2022 and December 31, 2021, the estimated fair value of the 2028 Notes, which is based on Level 2 inputs, is $ 333 million and $ 331 million, 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 March 31, 2022 and December 31, 2021: Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2022 (Level 2) 2021 (Level 2) (In millions) Assets Time Deposits $ 19 $ 19 $ 16 $ 16 Accounts receivable, net 98 98 98 98 Credit Cards receivable and other means of payment, net 2,512 2,512 1,839 1,839 Loans receivable, net 1,737 1,737 1,260 1,260 Other assets 515 515 458 458 Total Assets $ 4,881 $ 4,881 $ 3,671 $ 3,671 Liabilities Accounts payable and accrued expenses $ 1,027 $ 1,027 $ 1,036 $ 1,036 Funds payable to customers 2,483 2,483 2,393 2,393 Amounts payable due to credit and debit card transactions 424 424 341 341 Salaries and social security payable 291 291 230 230 Taxes payable 305 305 291 291 Loans payable and other financial liabilities (*) 4,097 3,994 3,518 3,534 Other liabilities 127 127 117 117 Total Liabilities $ 8,754 $ 8,651 $ 7,926 $ 7,942 (*) The fair value of the 2028 Notes (including the conversion option) is disclosed in Note 11. As of March 31, 2022 and December 31, 2021 , the fair value of money market funds, sovereign and corporate debt securities classified as available for sale securities are as follows: March 31, 2022 Cost Financial Gains Financial Losses Estimated Fair Value (In millions) Cash and cash equivalents Money Market Funds $ 479 $ — $ — $ 479 Corporate Debt Securities 60 — — 60 Total Cash and cash equivalents $ 539 $ — $ — $ 539 Restricted cash and cash equivalents Money Market Funds $ 300 $ — $ — $ 300 Total Restricted cash and cash equivalents $ 300 $ — $ — $ 300 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 934 $ 7 $ — $ 941 Sovereign Debt Securities (1) 373 — ( 1 ) 372 Corporate Debt Securities 80 — — 80 Total Short-term investments $ 1,387 $ 7 $ ( 1 ) $ 1,393 Long-term investments Sovereign Debt Securities (1) $ 57 $ 10 $ — $ 67 Total Long-term investments $ 57 $ 10 $ — $ 67 Total $ 2,283 $ 17 $ ( 1 ) $ 2,299 (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, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In millions) Cash and cash equivalents Money Market Funds $ 1,079 $ — $ — $ 1,079 Sovereign Debt Securities (1) 16 — — 16 Total Cash and cash equivalents $ 1,095 $ — $ — $ 1,095 Restricted Cash and cash equivalents Money Market Funds $ 210 $ — $ — $ 210 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 295 1 — 296 Total Restricted Cash and cash equivalents $ 505 $ 1 $ — $ 506 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 595 $ 7 $ — $ 602 Sovereign Debt Securities (1) 192 — — 192 Total Short-term investments $ 787 $ 7 $ — $ 794 Long-term investments Sovereign Debt Securities (1) $ 35 $ 1 $ — $ 36 Total Long-term investments $ 35 $ 1 $ — $ 36 Total $ 2,422 $ 9 $ — $ 2,431 (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 March 31, 2022 , the estimated fair value (in millions of U.S. dollars) of money market funds, sovereign and corporate debt securities classified by their effective maturities are as follows: One year or less 2,232 One year to two years 1 Two years to three years 8 Three years to four years 4 Four years to five years 28 More than five years 26 Total $ 2,299 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 , the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $ 23 million to cover legal actions against the Company in which Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided. In addition, as of March 31, 2022, 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 $ 81 million. No loss amounts have been accrued for such reasonably possible legal actions. Tax Claims Interstate rate of ICMS-DIFAL on interstate sales During 2020 and 2021, the Brazilian subsidiaries, Ebazar.com.br Ltda. and Mercado Pago Instituição de Pagamento Ltda., filed 15 writs of mandamus before the State Courts of Justice where these companies have sales branches in order to prevent Brazilian states from collecting the ICMS (“Imposto sobre Circulação de Mercadorias, Serviços de Transporte Interestadual, Intermunicipal e Comunicação”) on interstate sales at a differential rate (“ICMS-DIFAL”) without the existence of a complementary law. Four of these cases were filed in 2020 and the other 11 were filed in 2021, after Ebazar.com.br Ltda. opened new branches. On February 24, 2021, the Brazilian Supreme Court ruled on the controversy in a binding precedent, which declared the unconstitutionality of ICMS-DIFAL without the proper complementary law. In the same case, however, the Supreme Court ruled on the modulation of the effects of its decision (ex tunc.). Therefore, those 11 cases filed by the Company after the Supreme Court’s decision may not stand because of the modulation of effects with respect to that decision. The Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing is probable. For that reason, the Company has recorded a $ 7 million provision related to these 11 cases for the disputed amounts. For the other 4 cases filed before the Supreme Court’s decision, the risk of losing is remote. In January 2022, (therefore, already in the course of fiscal year 2022 and already in full application of the understanding of the Supreme Court for unconstitutionality), supplementary Law No. 190/22 was published, outlining the general rules for the requirement of DIFAL and expressly mentioning the need to comply with the principle of anticipation. Notwithstanding this provision, which expressly points to the need to comply with the anticipation, the Brazil’s Federation Units have not complied with this guarantee. Therefore, Ebazar.com.br Ltda. and Mercado Pago Instituição de Pagamento Ltda., filed writs of mandamus to the 27 Federation Units, aiming not to have demanded DIFAL. 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. For that reason, the Company has not recorded any expense or liability for the disputed amounts . 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 March 31, 2022 and December 31, 2021, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $ 2,958 million and $ 2,964 million, respectively, for which the Company recorded an allowance of $ 6 million and $ 5 million , 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 $ 824 million, to be fully paid off between October 1, 2021 and September 30, 2026. As of March 31, 2022, the Company had paid $ 44 million in relation thereto; and b) for a total amount of $ 108 million, to be fully paid off between September 17, 2021 and September 17, 2024. As of March 31, 2022, the Company had paid $ 10 million in relation thereto. |
Long Term Retention Plan
Long Term Retention Plan | 3 Months Ended |
Mar. 31, 2022 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plan | 10. Long term retention program (“LTRP”) The following table summarizes the long term retention program accrued compensation expense for the three-month periods ended March 31, 2022 and 2021, which are payable in cash according to the decisions made by the Board of Directors: Three Months Ended March 31, 2022 2021 (In millions) LTRP 2016 $ — $ ( 1 ) LTRP 2017 ( 1 ) ( 1 ) LTRP 2019 6 8 LTRP 2020 7 10 LTRP 2021 8 6 LTRP 2022 10 — Total LTRP $ 30 $ 22 |
Loans Payable And Other Financi
Loans Payable And Other Financial Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021: Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity March 31, 2022 December 31, 2021 (In millions) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 8.04 % April - June 2022 $ 126 $ 112 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % April - July 2022 60 60 Brazilian Subsidiary US Dollar Fixed 1.30 % December 2022 50 50 Brazilian Subsidiary US Dollar Fixed 1.70 % November 2022 50 50 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % May - November 2022 68 66 Uruguayan Subsidiary Uruguayan Pesos Fixed 6.69 % June 2022 9 8 Uruguayan Subsidiary Uruguayan Pesos Fixed 7.15 % April - July 2022 16 15 Colombian Subsidiary Colombian Pesos Fixed 7.30 % June 2022 11 16 Chilean Subsidiary Chilean Pesos Fixed 8.16 % April 2022 8 — Chilean Subsidiary Chilean Pesos Fixed 2.46 % April 2022 - March 2023 2 1 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 37.01 % April 2022 37 44 Argentine Subsidiary Argentine Pesos Fixed 35.69 % April 2022 26 25 Brazilian Subsidiary Brazilian Reais April 2022 16 — Mexican Subsidiary Mexican Peso Fixed 10.08 % April 2022 - March 2023 4 4 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 7.98 % April 2022 26 27 Argentine Subsidiary Argentine Pesos Fixed 37.05 % April 2022 97 115 Brazilian Subsidiary Brazilian Reais Fixed 1 % April 2022 1 4 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable IPCA + 5.25 - 7.15 % February - March 2023 75 — Brazilian Subsidiary Brazilian Reais Variable 99 % to 126.5 % of CDI April 2022 - March 2023 455 518 Brazilian Subsidiary Brazilian Reais Fixed 7.65 - 13.30 % April 2022 - March 2023 83 41 Brazilian Subsidiary Brazilian Reais Variable CDI + 0.72 - 0.76 % May - June 2022 105 23 2028 Notes 1 3 2026 Sustainability Notes 2 4 2031 Notes 5 10 Finance lease obligations 12 10 Collateralized debt 109 77 Other lines of credit 5 2 $ 1,459 $ 1,285 Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity March 31, 2022 December 31, 2021 (In millions) Non-Current loans payable and other financial liabilities: 2028 Notes 435 312 2026 Sustainability Notes 397 397 2031 Notes 694 694 Financial Bills Brazilian Subsidiary Brazilian Reais Variable CDI + 0.95 - 1.10 % July 2023 - February 2024 111 92 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 106 % to 129 % of CDI April 2023 - April 2024 17 3 Finance lease obligations 39 36 Collateralized debt 916 674 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % April 2023 - April 2025 3 4 Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 5 4 Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 10.08 % April 2023 - December 2026 17 17 Other lines of credit 4 - $ 2,638 $ 2,233 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 million aggregate principal amount of 2.375 % Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $ 700 million 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 $ 11 million of debt issuance costs, which are amortized during the term of the Notes. The Company intends to allocate an amount equal to the net proceeds from the sale of the 2026 Sustainability Notes to finance or refinance Eligible Projects. “Eligible Projects” are investments and expenditures made by the Company beginning with the issuance date of the 2026 Sustainability Notes or in the 24 months prior to the issuance of the 2026 Sustainability Notes, that: (i) contribute to environmental objectives such as: clean transportation, land conservation and preservation, energy efficiency, renewable energy, green buildings and pollution prevention and control, (ii) aim to address or mitigate a specific social issue or seek to achieve positive social outcomes especially, but not exclusively, for one or more target populations or (iii) combine (i) and (ii). 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., Mercado Pago Instituição de Pagamento Ltda. (formerly known as “MercadoPago.com Representações Ltda.”), MercadoLibre Chile Ltda., MercadoLibre, S.A. de C.V. (formerly known as “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.A. 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 million of 2.00 % Convertible Senior Notes due 2028 and issued an additional $ 80 million 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 million 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. As of March 31, 2022, the principal and issuance costs of the 2028 Notes amounted to $ 439 million and $ 4 million, respectively. 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, 2021, contained in the Company’s Annual Report on Form 10-K filed with the SEC. During the three-month period ended March 31, 2022, 2 Notes were converted, for a total amount of $ 2 thousand. The determination of whether or not the Notes are convertible must be performed on a quarterly basis. The Company reconfirmed during the first quarter of 2022 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 $ 92 million (August 2018), $ 11 million (November 2018), $ 88 million (June 2019), $ 104 million (June 2020), $ 83 million (August 2020), $ 120 million (November 2020) and $ 101 million (January 2021). In addition, the Company paid $ 8 million 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 million in cash and 57,047 shares of Common Stock, and $ 294 million 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 million principal amount of the outstanding of the 2028 Notes. The total amount paid amounted to $ 1,865 million, 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 $ 30 million 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 million 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 million (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 $ 1,220 million and $ 1,367 million as of March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021 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 $ 1,189.48 closing price of the Company’s common stock on March 31, 2022 , the if-converted value of the 2028 Notes exceeded their principal amount by $ 739 million. Revolving Credit Agreement On March 31, 2022, the Company, as borrower, entered into a $ 400 million revolving credit agreement (the “Credit Agreement”). Under the Credit Agreement, the Company’s subsidaries MercadoLibre S.R.L., Ebazar.com.br Ltda, Ibazar.com Atividades De Internet Ltda., Mercado Envios Serviços de Logística Ltda., Mercado Pago Instituição de Pagamento Ltda., Deremate.com de Mexico S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., Mercado Libre Chile Ltda., and Mercadolibre Colombia Ltda have guaranteed the Company’s obligations. The interest rates under the Credit Agreement are based on Adjusted Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.25 % per annum. Any loans drawn under the Credit Agreement must be repaid on or prior to March 31, 2025 . The Company is also obligated to pay a commitment fee on the unused amounts of the facility at an annual rate of 0.3125 %. As of March 31, 2022, no amounts have been borrowed under the facility. |
Securitization Transactions
Securitization Transactions | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022: SPEs Collateralized debt as of March 31, 2022 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 170 CDI + 2.50 % Brazilian Reais May 2024 Fundo de Investimento Em DireitosCreditórios Arandu 211 CDI + 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 23 CDI + 3.50 % Brazilian Reais August 2023 Olimpia Fundo de Investimento Em Direitos Creditórios 109 CDI + 1.25 % Brazilian Reais November 2024 Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados 172 CDI + 1.90 % Brazilian Reais May 2028 Mercado Crédito X 2 Badlar rates plus 200 basis points with a min 30 % and a max 45 % Argentine Pesos June 2022 Mercado Crédito XI 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo V 4 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos June 2022 Mercado Crédito Consumo VI 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Mercado Crédito Consumo VII 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos October 2022 Mercado Crédito Consumo VIII (*) 13 Badlar rates plus 200 basis points with a min 30 % and a max 50 % Argentine Pesos January 2023 Mercado Crédito XII 9 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos November 2022 Mercado Crédito XIII 14 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos April 2023 Mercado Crédito XIV (*) 17 Badlar rates plus 200 basis points with a min 30 % and a max 48 % Argentine Pesos February 2023 Fideicomiso de administración y fuente de pago CIB/3756 150 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 1.9 % Mexican Pesos October 2023 Fideicomiso de administración y fuente de pago CIB/3369 101 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 (*) Mercado Crédito Consumo VIII and Mercado Crédito XIV trusts made a public bond offering in Argentine stock market on April 19, 2022 and May 4, 2022, respectively. As of March 31, 2022, Loans payables owned by these trusts were obtained through private placements. 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 March 31, 2022 and December 31, 2021 as follows: March 31, December 31, 2022 2021 Assets (In millions) Current assets: Restricted cash and cash equivalents $ 410 $ 282 Credit cards receivable and other means of payments, net 284 278 Loans receivable, net 867 608 Total current assets 1,561 1,168 Non-current assets: Long-term investments 15 13 Loans receivable, net 59 45 Total non-current assets 74 58 Total assets $ 1,635 $ 1,226 Liabilities Current liabilities: Accounts payable and accrued expenses $ 3 $ 1 Loans payable and other financial liabilities 109 77 Total current liabilities 112 78 Non-current liabilities: Loans payable and other financial liabilities 916 674 Total non-current liabilities 916 674 Total liabilities $ 1,028 $ 752 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, December 31, 2022 2021 Operating Leases (In millions) Operating lease right-of-use assets $ 542 $ 461 Operating lease liabilities $ 543 $ 464 Finance Leases Property and equipment, at cost 79 68 Accumulated depreciation ( 18 ) ( 14 ) Property and equipment, net $ 61 $ 54 Loans payable and other financial liabilities $ 51 $ 46 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 March 31, 2022: Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 9 % Finance leases 14 % (*) Includes discount rates of leases in local currency and U.S. dollar . The components of lease expense were as follows: Three months ended March 31, 2022 2021 (In millions) Operating lease cost $ 27 $ 16 Finance lease cost: Depreciation of property and equipment 4 1 Interest on lease liabilities 2 1 Total finance lease cost $ 6 $ 2 Supplemental cash flow information related to leases was as follows: Three months ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: (In millions) Operating cash flows from operating leases $ 27 $ 15 Financing cash flows from finance leases 4 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 61 $ 65 Finance leases 3 6 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 March, 2022 Operating Leases Finance Leases (In millions) One year or less $ 124 $ 17 One year to two years 121 18 Two years to three years 114 16 Three years to four years 99 9 Four years to five years 69 7 Thereafter 180 — Total lease payments $ 707 $ 67 Less imputed interest ( 164 ) ( 16 ) Total $ 543 $ 51 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 14. Derivative instruments Cash Flow Hedge As of March 31, 2022 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 March 31, 2022, the Company estimated that the whole amount of net derivative gains related to its cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. In addition, the Company has entered into swap contracts to hedge the interest rate fluctuation of its financial debt issued by one of its Brazilian subsidiaries. The Company designated the swap 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 interest expense affects earnings. Net Investment Hedge The Company used cross currency swap contracts, to reduce the foreign currency exchange risk related to its investment in its Brazilian foreign subsidiaries and the interest rate risk. This derivative was designated as a net investment hedge and, accordingly, gains and losses are reported as a component of accumulated other comprehensive income. 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 that the interest expense affects earnings. Derivative instruments not designated as hedging instruments As of March 31, 2022, 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 has 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 that mature in 2022. These transactions were not designated as hedges for accounting purposes. Finally, as of March 31, 2022, the Company entered into swap contracts to hedge the interest rate fluctuation of its financial debt related to its credit cards receivable securitization transactions. 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 Notional Amount as of March 31, 2022 December 31, 2021 (In millions) Designated as hedging instrument Foreign exchange contracts $ 91 $ 89 Interest rate contracts $ 48 $ — Cross currency swap contracts $ 105 $ 94 Not designated as hedging instrument Foreign exchange contracts $ 82 $ — Interest rate contracts $ 343 $ 249 Cross currency swap contracts $ 160 $ 160 Derivative Instrument Contracts The fair values of the Company’s outstanding derivative instruments as of March 31, 2022 and December 31, 2021 were as follows: March 31, December 31, Balance sheet location 2022 2021 (In millions) Derivatives Cross currency swap contracts designated as net investment hedge Other non-current Assets $ — $ 7 Cross currency swap contracts not designated as hedging instruments Other current Assets — 8 Foreign exchange contracts designated as cash flow hedges Other current Assets — 2 Interest rate contracts not designated as hedging instruments Other current Assets 1 — Cross currency swap contracts not designated as hedging instruments Other current Liabilities 29 5 Cross currency swap contracts designated as net investment hedge Other non-current Liabilities 8 — Foreign exchange contracts not designated as hedging instruments Other current Liabilities 4 — Foreign exchange contracts designated as cash flow hedges Other current Liabilities 12 1 The effects of derivative contracts on the unaudited interim condensed consolidated statement of comprehensive income as of March 31, 2022 were as follows: Amount of Amount of gain (loss) reclassified December 31, Loss (gains) recognized from accumulated March 31, 2021 in other comprehensive loss other comprehensive loss 2022 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1 $ ( 14 ) $ 1 $ ( 12 ) Cross currency swap contract designated as net investment hedge 7 ( 15 ) 2 ( 6 ) 8 ( 29 ) 3 ( 18 ) The effects of derivative contracts not designated as hedging instruments on the unaudited interim condensed consolidated statements of income for the three-month periods ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (In millions) Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net $ ( 5 ) $ 19 Cross currency swap contract not designated as hedging instrument recognized in foreign exchange ( 32 ) — |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2022 | |
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 million. 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 million (the “2021 Authorization”). This authorization, which replaced and superseded the previous authorization, was scheduled to expire on August 31, 2022 . On March 1, 2022, the Board authorized an increase in the 2021 Authorization of $ 300 million, from an aggregate consideration of up to $ 150 million to an aggregate consideration of up to $ 450 million. The Board also authorized an extension of the term of the 2021 Authorization, from August 31, 2022 to August 31, 2023. 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 March 31, 2022, the Company had acquired 163,820 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. This authorization expired on December 31, 2021. 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 U.S. dollars through an indirect mechanism, because of restrictions imposed by the Argentine government for buying U.S. dollars at the official exchange rate in Argentina. As a result, the Company recognized a foreign currency loss of $ 35 million and $ 18 million for the three-month periods ended March 31, 2022 and 2021, respectively. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Event [Abstract] | |
Subsequent Event | 16. Subsequent Event Air Logistic Services Agreement On April 8, 2022, the Company signed a 10 -year agreement with Gol Linhas Aereas S.A. for the provision of air logistics services in Brazil. According to the agreement, Gol Linhas Aereas S.A. will provide logistics services to Mercado Envios through six dedicated aircrafts. Advisory Agreement and Restricted stock grant On April 8, 2022, the Company entered into an Advisory Services Agreement with Mr. Stelleo Tolda (former Mercado Libre’s Executive officer) whereby he will provide us with certain consulting and advisory services as an independent contractor for a three-year period for a fee of $ 10,000 per month. The Company also entered into a restricted stock award agreement with Mr. Tolda on April 8, 2022, whereby we will award Mr. Tolda a grant of 5,051 shares of restricted stock under the Amended and Restated 2009 Equity Compensation Plan. One-fifth of the restricted stock award vests on each of the five anniversaries of the grant date, subject to Mr. Tolda’s continued compliance with the restrictive covenants set forth in the agreement. Approval of license to operate as an E-money institution in Mexico As of March 2018, Mexico enacted a law that regulates Crowdfunding Platforms and E-money Institutions (locally known as Instituciones de Fondos de Pago Electrónico) (the “Fintech Law”). Under the Fintech Law, institutions that provided the aforementioned services prior to its enactment were allowed to continue operating until they successfully completed their license application process before the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, or the “CNBV”). The Company’s Mexican subsidiary submitted an application to obtain such license in September 2019. On April 29, 2022, MercadoLibre, S.A. de C.V. Institución de Fondos de Pago Electrónico, a Mexican subsidiary obtained the final approval by the CNBV to operate as an E-money Institution which implies the ability to issue, manage, redeem and transfer e-money on behalf of its clients, through computer applications, interfaces, web sites or any other means of electronic or digital communication. The above-mentioned final approval is subject to publication in the Mexican Official Gazette (“Diario Oficial de la Federación”), which should take place within the next 10 business days after the final approval. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 $ 1,152 million and $ 978 million as of March 31, 2022 and December 31, 2021, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2022 and December 31, 2021. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2022 and 2021. These interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2021, 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, 2021. During the three-month period ended March 31, 2022, there were no material updates made to the Company’s significant accounting policies, except for the adoption of ASU 2020-06 as of January 1, 2022. See section Recently Adopted Accounting Standards of this Note. |
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, 2021. 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, uncollectible accounts and chargebacks of $ 720 million and $ 474 million as of March 31, 2022 and December 31, 2021, 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, 2021 was $ 34 million, of which $ 12 million was recognized as revenue during the three-month periods ended March 31, 2022. As of March 31, 2022, total deferred revenue was $ 34 million, mainly due to fees related to classifieds advertising services billed and loyalty programs that are expected to be recognized as revenue in the coming months. |
Digital Assets | Digital Assets 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 U.S. dollars, 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 March 31, 2022 was 111.01. 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 March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (In millions) Assets $ 2,446 $ 2,479 Liabilities 1,689 1,874 Net Assets $ 757 $ 605 |
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 increased its valuation allowance in certain subsidiaries in its Mexican operations by $ 15 million and $ 12 million for the three-month periods ended March 31, 2022 and 2021, 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 October 7, 2020, changes to the knowledge-based economy promotional regime were finally approved by the Congress. The approved regime is effective as of January 1, 2020 through 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 $ 1 million during the three-month period ended March 31, 2022. The aggregate per share effect of the income tax benefit amounted to $ 0.03 for the three-month period ended March 31, 2022. Furthermore, the Company recorded a social security benefit of $ 15 million during the three-month period ended March 31, 2022 . Additionally, during the three-month period ended March 31, 2022, we accrued a charge of $ 1 million to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. |
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 $ 16 million and $ 1 million as of March 31, 2022 and 2021, respectively. |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 (In millions) Accumulated other comprehensive loss: Foreign currency translation $ ( 372 ) $ ( 523 ) Unrealized (losses) gains on hedging activities ( 18 ) 8 Estimated tax benefit (expense) on unrealized gains (losses) 4 — $ ( 386 ) $ ( 515 ) The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three-months ended March 31, 2022: Unrealized Foreign Estimated tax Gains (losses) on Currency benefit hedging activities, net Translation (expense) Total (In millions) Balances as of December 31, 2021 $ 8 $ ( 523 ) $ — $ ( 515 ) Other comprehensive income (loss) before reclassifications ( 29 ) 151 5 127 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 3 — ( 1 ) 2 Net current period other comprehensive income (loss) ( 26 ) 151 4 129 Ending balance $ ( 18 ) $ ( 372 ) $ 4 $ ( 386 ) 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 millions) Unrealized losses on hedging activities $ ( 3 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 1 Income tax expense Total reclassifications for the period $ ( 2 ) 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 August 5, 2020 the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“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, the update 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 Company adopted this standard effective January 1, 2022, resulting in an increase of the carrying value of the 2028 Notes of $ 123 million, a decrease of deferred tax liability of $ 26 million and a change in the beginning balance of equity of $ 97 million. In addition, the Company reduced its reported interest expense and is required to use the if-converted method for calculating diluted earnings per share. Recently issued accounting pronouncements not yet adopted On March 31, 2022, the FASB issued ASU 2022-02 Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses, which eliminates the accounting guidance on TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the guidance requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The amendments in this update are effective for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. The amendments should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, where an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption . The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. On March 31, 2022, the Securities and Exchange Commission released the Staff Accounting Bulletin (SAB) No. 121. This SAB express views of the staff regarding the accounting for entities that have obligations to safeguard crypto-assets held for their platform users as well as any agent acting on its behalf in safeguarding the users’ crypto-assets. As long as an entity is responsible for safeguarding the crypto-assets held for its platform users, including maintaining the cryptographic key information necessary to access the crypto-assets, the staff believes that the entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for its platform users, which should be measured at initial recognition and each reporting date at the fair value. The staff also believes it would be appropriate for the entity to recognize an asset at the same time that it recognizes the safeguarding liability, measured at initial recognition and each reporting date at the fair value of the crypto-assets held for its platform users. This interpretation is effective the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. The Company is assessing whether is under the scope of this interpretation and the effects that the application of this interpretation may have on its financial statements. 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. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries | March 31, December 31, 2022 2021 (In millions) Assets $ 2,446 $ 2,479 Liabilities 1,689 1,874 Net Assets $ 757 $ 605 |
Accumulated Other Comprehensive Loss | March 31, December 31, 2022 2021 (In millions) Accumulated other comprehensive loss: Foreign currency translation $ ( 372 ) $ ( 523 ) Unrealized (losses) gains on hedging activities ( 18 ) 8 Estimated tax benefit (expense) on unrealized gains (losses) 4 — $ ( 386 ) $ ( 515 ) |
Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss | Unrealized Foreign Estimated tax Gains (losses) on Currency benefit hedging activities, net Translation (expense) Total (In millions) Balances as of December 31, 2021 $ 8 $ ( 523 ) $ — $ ( 515 ) Other comprehensive income (loss) before reclassifications ( 29 ) 151 5 127 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 3 — ( 1 ) 2 Net current period other comprehensive income (loss) ( 26 ) 151 4 129 Ending balance $ ( 18 ) $ ( 372 ) $ 4 $ ( 386 ) |
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 millions) Unrealized losses on hedging activities $ ( 3 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 1 Income tax expense Total reclassifications for the period $ ( 2 ) Total, net of income taxes |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income Per Share Of Common Stock | Three Months Ended March 31, 2022 2021 (In millions) Basic Diluted Basic Diluted Net income (loss) per common share $ 1.30 $ 1.30 $ ( 0.68 ) $ ( 0.68 ) Numerator: Net income (loss) corresponding to common stock $ 65 $ 65 $ ( 34 ) $ ( 34 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 50,408,754 — 49,867,625 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 50,408,754 — 49,867,625 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments [Abstract] | |
Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | March 31, December 31, 2022 2021 (In millions) Cash and cash equivalents $ 1,573 $ 2,585 Restricted cash and cash equivalents Securitization Transactions $ 410 $ 282 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 296 Bank account (Argentine Central Bank regulation) 374 449 Bank account (Chilean Financial Market Commission) 40 21 Money Market Funds (Secured lines of credit guarantee) 16 15 Cash in bank account 1 — Total restricted cash and cash equivalents $ 841 $ 1,063 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 2,414 $ 3,648 Short-term investments Time Deposits $ 19 $ 16 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 941 602 Sovereign Debt Securities 372 192 Corporate Debt Securities 80 — Total short-term investments $ 1,412 $ 810 Long-term investments Sovereign Debt Securities (**) $ 52 $ 23 Securitization Transactions (***) 15 13 Equity interest held at cost 54 53 Total long-term investments $ 121 $ 89 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow . (**) $ 16 million held by the Company’s Brazilian subsidiary in guarantee for secured lines of credit. (See Note 11 – Loans payable and other financial liabilities). (***) Investments from securitization transactions are restricted to the payment of amounts due to third-party investors. |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable, Net | March 31, December 31, 2022 2021 (In millions) On-line merchant $ 426 $ 361 Consumer 1,270 851 In-store merchant 251 187 Credit Cards 468 296 Loans receivable 2,415 1,695 Allowance for uncollectible accounts ( 678 ) ( 435 ) Loans receivable, net $ 1,737 $ 1,260 |
Schedule Of Credit Quality Analysis Of Loans Receivables | March 31, December 31, 2022 2021 (In millions) 1-30 days past due $ 145 $ 90 31-60 days past due 90 47 61 -90 days past due 88 37 91 -120 days past due 71 37 121 -150 days past due 55 31 151 -180 days past due 41 25 181 -210 days past due 39 24 211 -240 days past due 34 23 241 -270 days past due 28 21 271 -300 days past due 26 21 301 -330 days past due 26 30 331 -360 days past due 23 25 Total past due 666 411 To become due 1,749 1,284 Total $ 2,415 $ 1,695 |
Summary Of Allowance For Uncollectible Accounts Activity | March 31, 2022 2021 (In millions) Balance at beginning of year $ 435 $ 78 Charged/credited to Net Income (loss) 253 86 Charges/Utilized /Currency translation adjustments/Write-offs ( 10 ) ( 24 ) Balance at end of period $ 678 $ 140 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets [Abstract] | |
Composition Of Goodwill And Intangible Assets | March 31, December 31, 2022 2021 (In millions) Goodwill $ 162 $ 148 Intangible assets with indefinite lives - Trademarks 7 8 - Digital assets (1)(2) 19 21 Amortizable intangible assets - Licenses and others 13 13 - Non-compete agreement 4 4 - Customer list 13 13 - Trademarks 8 7 - Hubs Network 4 3 - Others 4 3 Total intangible assets $ 72 $ 72 Accumulated amortization ( 29 ) ( 27 ) Total intangible assets, net $ 43 $ 45 (1) Digital assets are net of $ 11 million and $ 9 million of impairment losses as of March 31, 2022 and December 31, 2021. (2) As of March 31, 2022, $ 19 million of digital assets were lent to a counterpart in return for a fee. The Company has not surrendered the control of the assets. |
Changes In Carrying Amount Of Goodwill | Three Months Ended March 31, 2022 Brazil Argentina Mexico Chile Colombia Other Countries Total (In millions) Balance, beginning of the period $ 56 $ 10 $ 37 $ 37 $ 6 $ 2 $ 148 Effect of exchange rates changes 10 — 1 3 — — 14 Balance, end of the period $ 66 $ 10 $ 38 $ 40 $ 6 $ 2 $ 162 Year Ended December 31, 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In millions) Balance, beginning of the year $ 20 $ 10 $ 32 $ 17 $ 4 $ 2 $ 85 Business Acquisitions 37 — 6 23 2 — 68 Effect of exchange rates changes ( 1 ) — ( 1 ) ( 3 ) — — ( 5 ) Balance, end of the year $ 56 $ 10 $ 37 $ 37 $ 6 $ 2 $ 148 |
Expected Intangible Asset Amortization Expense | For year ended 12/31/2022 $ 5 For year ended 12/31/2023 5 For year ended 12/31/2024 3 For year ended 12/31/2025 1 Thereafter 3 $ 17 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Performance Of Company's Reporting Segments | Three Months Ended March 31, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,252 $ 518 $ 364 $ 114 $ 2,248 Direct costs ( 1,065 ) ( 320 ) ( 328 ) ( 110 ) ( 1,823 ) Direct contribution 187 198 36 4 425 Operating expenses and indirect costs of net revenues ( 286 ) Income from operations 139 Other income (expenses): Interest income and other financial gains 31 Interest expense and other financial losses ( 56 ) Foreign currency losses ( 3 ) Net income before income tax expense $ 111 Three Months Ended March 31, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 769 $ 297 $ 230 $ 82 $ 1,378 Direct costs ( 618 ) ( 189 ) ( 221 ) ( 64 ) ( 1,092 ) Direct contribution 151 108 9 18 286 Operating expenses and indirect costs of net revenues ( 195 ) Income from operations 91 Other income (expenses): Interest income and other financial gains 25 Interest expense and other financial losses ( 91 ) Foreign currency losses ( 15 ) Net income before income tax expense $ 10 |
Allocation Of Property And Equipment Based On Geography | March 31, December 31, 2022 2021 (In millions) US property and equipment, net $ 1 $ 1 Other countries Argentina 183 174 Brazil 518 395 Mexico 190 176 Other countries 75 61 $ 966 $ 806 Total property and equipment, net $ 967 $ 807 |
Allocation Of Goodwill And Intangible Assets Based On Geography | March 31, December 31, 2022 2021 (In millions) US intangible assets $ 19 $ 21 Other countries goodwill and intangible assets Argentina 16 16 Brazil 69 60 Mexico 43 41 Chile 48 45 Other countries 10 10 $ 186 $ 172 Total goodwill and intangible assets $ 205 $ 193 |
Consolidated Net Revenues By Similar Products And Services | Three Months Ended March 31, Consolidated Net Revenues 2022 2021 (In millions) Commerce $ 1,277 $ 911 Fintech 971 467 Total $ 2,248 $ 1,378 |
Fair Value Measurement Of Ass_2
Fair Value Measurement Of Assets And Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2022 (Level 1) (Level 2) (Level 3) 2021 (Level 1) (Level 2) (Level 3) (In millions) Assets Cash and Cash Equivalents: Money Market Funds $ 479 $ 479 $ — $ — $ 1,079 $ 1,079 $ — $ — Sovereign Debt Securities — — — — 16 16 — — Corporate Debt Securities 60 60 — — — — — — Restricted Cash and cash equivalents: Money Market Funds 300 300 — — 210 210 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 296 296 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 941 941 — — 602 602 — — Sovereign Debt Securities 439 439 — — 228 228 — — Corporate Debt Securities 80 80 — — — — — — Other Assets: Derivative Instruments 1 — — 1 17 — — 17 Total Financial Assets $ 2,300 $ 2,299 $ — $ 1 $ 2,448 $ 2,431 $ — $ 17 Liabilities: Contingent considerations $ 9 $ — $ — $ 9 $ 9 $ — $ — $ 9 Long-term retention plan 33 — 33 — 103 — 103 — Derivative Instruments 53 — — 53 6 — — 6 Total Financial Liabilities $ 95 $ — $ 33 $ 62 $ 118 $ — $ 103 $ 15 |
Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost | Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2022 (Level 2) 2021 (Level 2) (In millions) Assets Time Deposits $ 19 $ 19 $ 16 $ 16 Accounts receivable, net 98 98 98 98 Credit Cards receivable and other means of payment, net 2,512 2,512 1,839 1,839 Loans receivable, net 1,737 1,737 1,260 1,260 Other assets 515 515 458 458 Total Assets $ 4,881 $ 4,881 $ 3,671 $ 3,671 Liabilities Accounts payable and accrued expenses $ 1,027 $ 1,027 $ 1,036 $ 1,036 Funds payable to customers 2,483 2,483 2,393 2,393 Amounts payable due to credit and debit card transactions 424 424 341 341 Salaries and social security payable 291 291 230 230 Taxes payable 305 305 291 291 Loans payable and other financial liabilities (*) 4,097 3,994 3,518 3,534 Other liabilities 127 127 117 117 Total Liabilities $ 8,754 $ 8,651 $ 7,926 $ 7,942 (*) The fair value of the 2028 Notes (including the conversion option) is disclosed in Note 11. |
Fair Value Of Money Market Funds, Short And Long-Term Investments Classified As Available For Sale Securities | March 31, 2022 Cost Financial Gains Financial Losses Estimated Fair Value (In millions) Cash and cash equivalents Money Market Funds $ 479 $ — $ — $ 479 Corporate Debt Securities 60 — — 60 Total Cash and cash equivalents $ 539 $ — $ — $ 539 Restricted cash and cash equivalents Money Market Funds $ 300 $ — $ — $ 300 Total Restricted cash and cash equivalents $ 300 $ — $ — $ 300 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 934 $ 7 $ — $ 941 Sovereign Debt Securities (1) 373 — ( 1 ) 372 Corporate Debt Securities 80 — — 80 Total Short-term investments $ 1,387 $ 7 $ ( 1 ) $ 1,393 Long-term investments Sovereign Debt Securities (1) $ 57 $ 10 $ — $ 67 Total Long-term investments $ 57 $ 10 $ — $ 67 Total $ 2,283 $ 17 $ ( 1 ) $ 2,299 (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, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In millions) Cash and cash equivalents Money Market Funds $ 1,079 $ — $ — $ 1,079 Sovereign Debt Securities (1) 16 — — 16 Total Cash and cash equivalents $ 1,095 $ — $ — $ 1,095 Restricted Cash and cash equivalents Money Market Funds $ 210 $ — $ — $ 210 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 295 1 — 296 Total Restricted Cash and cash equivalents $ 505 $ 1 $ — $ 506 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 595 $ 7 $ — $ 602 Sovereign Debt Securities (1) 192 — — 192 Total Short-term investments $ 787 $ 7 $ — $ 794 Long-term investments Sovereign Debt Securities (1) $ 35 $ 1 $ — $ 36 Total Long-term investments $ 35 $ 1 $ — $ 36 Total $ 2,422 $ 9 $ — $ 2,431 (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 2,232 One year to two years 1 Two years to three years 8 Three years to four years 4 Four years to five years 28 More than five years 26 Total $ 2,299 |
Long Term Retention Plan (Table
Long Term Retention Plan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Program Accrued Compensation Expense | Three Months Ended March 31, 2022 2021 (In millions) LTRP 2016 $ — $ ( 1 ) LTRP 2017 ( 1 ) ( 1 ) LTRP 2019 6 8 LTRP 2020 7 10 LTRP 2021 8 6 LTRP 2022 10 — Total LTRP $ 30 $ 22 |
Loans Payable And Other Finan_2
Loans Payable And Other Financial Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 (In millions) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 8.04 % April - June 2022 $ 126 $ 112 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % April - July 2022 60 60 Brazilian Subsidiary US Dollar Fixed 1.30 % December 2022 50 50 Brazilian Subsidiary US Dollar Fixed 1.70 % November 2022 50 50 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % May - November 2022 68 66 Uruguayan Subsidiary Uruguayan Pesos Fixed 6.69 % June 2022 9 8 Uruguayan Subsidiary Uruguayan Pesos Fixed 7.15 % April - July 2022 16 15 Colombian Subsidiary Colombian Pesos Fixed 7.30 % June 2022 11 16 Chilean Subsidiary Chilean Pesos Fixed 8.16 % April 2022 8 — Chilean Subsidiary Chilean Pesos Fixed 2.46 % April 2022 - March 2023 2 1 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 37.01 % April 2022 37 44 Argentine Subsidiary Argentine Pesos Fixed 35.69 % April 2022 26 25 Brazilian Subsidiary Brazilian Reais April 2022 16 — Mexican Subsidiary Mexican Peso Fixed 10.08 % April 2022 - March 2023 4 4 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 7.98 % April 2022 26 27 Argentine Subsidiary Argentine Pesos Fixed 37.05 % April 2022 97 115 Brazilian Subsidiary Brazilian Reais Fixed 1 % April 2022 1 4 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable IPCA + 5.25 - 7.15 % February - March 2023 75 — Brazilian Subsidiary Brazilian Reais Variable 99 % to 126.5 % of CDI April 2022 - March 2023 455 518 Brazilian Subsidiary Brazilian Reais Fixed 7.65 - 13.30 % April 2022 - March 2023 83 41 Brazilian Subsidiary Brazilian Reais Variable CDI + 0.72 - 0.76 % May - June 2022 105 23 2028 Notes 1 3 2026 Sustainability Notes 2 4 2031 Notes 5 10 Finance lease obligations 12 10 Collateralized debt 109 77 Other lines of credit 5 2 $ 1,459 $ 1,285 Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity March 31, 2022 December 31, 2021 (In millions) Non-Current loans payable and other financial liabilities: 2028 Notes 435 312 2026 Sustainability Notes 397 397 2031 Notes 694 694 Financial Bills Brazilian Subsidiary Brazilian Reais Variable CDI + 0.95 - 1.10 % July 2023 - February 2024 111 92 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 106 % to 129 % of CDI April 2023 - April 2024 17 3 Finance lease obligations 39 36 Collateralized debt 916 674 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % April 2023 - April 2025 3 4 Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 5 4 Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 10.08 % April 2023 - December 2026 17 17 Other lines of credit 4 - $ 2,638 $ 2,233 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Securitization Transactions [Abstract] | |
Collateralized Debt | SPEs Collateralized debt as of March 31, 2022 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 170 CDI + 2.50 % Brazilian Reais May 2024 Fundo de Investimento Em DireitosCreditórios Arandu 211 CDI + 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 23 CDI + 3.50 % Brazilian Reais August 2023 Olimpia Fundo de Investimento Em Direitos Creditórios 109 CDI + 1.25 % Brazilian Reais November 2024 Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados 172 CDI + 1.90 % Brazilian Reais May 2028 Mercado Crédito X 2 Badlar rates plus 200 basis points with a min 30 % and a max 45 % Argentine Pesos June 2022 Mercado Crédito XI 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo V 4 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos June 2022 Mercado Crédito Consumo VI 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Mercado Crédito Consumo VII 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos October 2022 Mercado Crédito Consumo VIII (*) 13 Badlar rates plus 200 basis points with a min 30 % and a max 50 % Argentine Pesos January 2023 Mercado Crédito XII 9 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos November 2022 Mercado Crédito XIII 14 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos April 2023 Mercado Crédito XIV (*) 17 Badlar rates plus 200 basis points with a min 30 % and a max 48 % Argentine Pesos February 2023 Fideicomiso de administración y fuente de pago CIB/3756 150 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 1.9 % Mexican Pesos October 2023 Fideicomiso de administración y fuente de pago CIB/3369 101 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 (*) Mercado Crédito Consumo VIII and Mercado Crédito XIV trusts made a public bond offering in Argentine stock market on April 19, 2022 and May 4, 2022, respectively. As of March 31, 2022, Loans payables owned by these trusts were obtained through private placements. |
Assets And Liabilities Of The Trust | March 31, December 31, 2022 2021 Assets (In millions) Current assets: Restricted cash and cash equivalents $ 410 $ 282 Credit cards receivable and other means of payments, net 284 278 Loans receivable, net 867 608 Total current assets 1,561 1,168 Non-current assets: Long-term investments 15 13 Loans receivable, net 59 45 Total non-current assets 74 58 Total assets $ 1,635 $ 1,226 Liabilities Current liabilities: Accounts payable and accrued expenses $ 3 $ 1 Loans payable and other financial liabilities 109 77 Total current liabilities 112 78 Non-current liabilities: Loans payable and other financial liabilities 916 674 Total non-current liabilities 916 674 Total liabilities $ 1,028 $ 752 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | March 31, December 31, 2022 2021 Operating Leases (In millions) Operating lease right-of-use assets $ 542 $ 461 Operating lease liabilities $ 543 $ 464 Finance Leases Property and equipment, at cost 79 68 Accumulated depreciation ( 18 ) ( 14 ) Property and equipment, net $ 61 $ 54 Loans payable and other financial liabilities $ 51 $ 46 |
Summary Of Weighted Average Remaining Lease Term And Discount Rate | Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 9 % Finance leases 14 % (*) Includes discount rates of leases in local currency and U.S. dollar . |
Components Of Lease Expense | Three months ended March 31, 2022 2021 (In millions) Operating lease cost $ 27 $ 16 Finance lease cost: Depreciation of property and equipment 4 1 Interest on lease liabilities 2 1 Total finance lease cost $ 6 $ 2 |
Supplemental Cash Flow Information Related To Leases | Three months ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: (In millions) Operating cash flows from operating leases $ 27 $ 15 Financing cash flows from finance leases 4 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 61 $ 65 Finance leases 3 6 |
Maturities Of Lease Liabilities | Period Ending March, 2022 Operating Leases Finance Leases (In millions) One year or less $ 124 $ 17 One year to two years 121 18 Two years to three years 114 16 Three years to four years 99 9 Four years to five years 69 7 Thereafter 180 — Total lease payments $ 707 $ 67 Less imputed interest ( 164 ) ( 16 ) Total $ 543 $ 51 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments [Abstract] | |
Summary Of Notional Amounts | Notional Amount as of Notional Amount as of March 31, 2022 December 31, 2021 (In millions) Designated as hedging instrument Foreign exchange contracts $ 91 $ 89 Interest rate contracts $ 48 $ — Cross currency swap contracts $ 105 $ 94 Not designated as hedging instrument Foreign exchange contracts $ 82 $ — Interest rate contracts $ 343 $ 249 Cross currency swap contracts $ 160 $ 160 |
Summary Of Outstanding Derivative Instruments | March 31, December 31, Balance sheet location 2022 2021 (In millions) Derivatives Cross currency swap contracts designated as net investment hedge Other non-current Assets $ — $ 7 Cross currency swap contracts not designated as hedging instruments Other current Assets — 8 Foreign exchange contracts designated as cash flow hedges Other current Assets — 2 Interest rate contracts not designated as hedging instruments Other current Assets 1 — Cross currency swap contracts not designated as hedging instruments Other current Liabilities 29 5 Cross currency swap contracts designated as net investment hedge Other non-current Liabilities 8 — Foreign exchange contracts not designated as hedging instruments Other current Liabilities 4 — Foreign exchange contracts designated as cash flow hedges Other current Liabilities 12 1 |
Effect Of Derivative Contracts On Comprehensive Income | Amount of Amount of gain (loss) reclassified December 31, Loss (gains) recognized from accumulated March 31, 2021 in other comprehensive loss other comprehensive loss 2022 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1 $ ( 14 ) $ 1 $ ( 12 ) Cross currency swap contract designated as net investment hedge 7 ( 15 ) 2 ( 6 ) 8 ( 29 ) 3 ( 18 ) |
Effect Of Derivative Contracts On Income Statement | Three Months Ended March 31, 2022 2021 (In millions) Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net $ ( 5 ) $ 19 Cross currency swap contract not designated as hedging instrument recognized in foreign exchange ( 32 ) — |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 25, 2020 | Jun. 10, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Accounting Policies [Line Items] | ||||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 1,152 | $ 978 | ||||
Allowance for doubtful accounts, loan receivables and chargebacks | 720 | 474 | ||||
Deferred Revenue | 34 | 34 | ||||
Deferred Revenue, Revenue Recognized | 12 | |||||
Recognized gains in interest income and other financial gains | 16 | $ 1 | ||||
Income Tax Expense (Benefit) | 46 | 44 | ||||
Amount effected by change in accounting standard | 1,589 | (30) | 1,531 | $ 1,652 | ||
Argentina [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Non-Transferable Tax Credit Bond Benchmark 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 Benchmark Percent | 70.00% | |||||
Secretariat Of Knowledge Economy Resolution Issued [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Income Tax Expense (Benefit) | (1) | |||||
Software Development Law Audit Fees | $ 1 | |||||
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.03 | |||||
Social Security Benefit | $ 15 | |||||
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 | |||||
Decrease Deferred Tax Liability 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 | |||||
Large [Member] | Argentina [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
New Criteria Benchmark Percent, Income Tax Burden | 20.00% | |||||
Medium-Sized [Member] | Argentina [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
New Criteria Benchmark Percent, Income Tax Burden | 40.00% | |||||
Micro And Small [Member] | Argentina [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
New Criteria Benchmark Percent, Income Tax Burden | 60.00% | |||||
Mexico Segment [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Valuation allowance in certain subsidiaries | $ 15 | $ 12 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amount effected by change in accounting standard | $ (97) |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Assets, Liabilities And Net Assets Of Company's Argentinean Subsidiaries) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 11,023 | $ 10,101 |
Liabilities | 9,434 | 8,570 |
Argentinean Subsidiaries [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 2,446 | 2,479 |
Liabilities | 1,689 | 1,874 |
Net Assets | $ 757 | $ 605 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Summary Of Significant Accounting Policies [Abstract] | ||
Foreign currency translation | $ (372) | $ (523) |
Unrealized losses (gains) on hedging activities | (18) | 8 |
Estimated tax (expense) benefit on unrealized gains (losses) | 4 | |
Accumulated other comprehensive loss | $ (386) | $ (515) |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning Balance | $ 1,531 | $ 1,652 |
Net change in accumulated other comprehensive income (loss), net of income tax | 129 | (38) |
Ending Balance | 1,589 | (30) |
Unrealized Gains (Losses) On Hedging Activities, Net [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning balance, before tax | 8 | |
Other comprehensive income (loss) before reclassifications, before tax | (29) | |
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), before tax | 3 | |
Net current period other comprehensive income (loss), before tax | (26) | |
Ending balance, before tax | (18) | |
Foreign Currency Translation [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning balance, before tax | (523) | |
Other comprehensive income (loss) before reclassifications, before tax | 151 | |
Net current period other comprehensive income (loss), before tax | 151 | |
Ending balance, before tax | (372) | |
Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other comprehensive income (loss) before reclassifications, Estimated tax benefit (expense) | 5 | |
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), Estimated tax benefit (expense) | (1) | |
Net current period other comprehensive income (loss), Estimated tax benefit (expense) | 4 | |
Ending balance, Estimated tax benefit (expense) | 4 | |
Beginning Balance | (515) | (468) |
Other comprehensive income (loss) before reclassifications, net tax | 127 | |
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), net of tax | 2 | |
Net change in accumulated other comprehensive income (loss), net of income tax | 129 | |
Ending Balance | $ (386) | $ (506) |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Reclassifications Out Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of net revenues | $ 1,175 | $ 787 |
Income tax loss | (46) | (44) |
Net income (loss) | 65 | $ (34) |
Amount Of (Loss) Gain Reclassified From Accumulated Other Comprehensive Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax loss | 1 | |
Net income (loss) | (2) | |
Amount Of (Loss) Gain Reclassified From Accumulated Other Comprehensive Loss [Member] | Unrealized Gains (Losses) On Hedging Activities, Net [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of net revenues | $ (3) |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - Convertible Senior Notes [Member] - 2028 Convertible Senior Notes [Member] - USD ($) $ in Millions | Aug. 31, 2018 | Aug. 24, 2018 |
Debt Instrument [Line Items] | ||
Convertible senior notes, issued | $ 880 | $ 880 |
Convertible senior notes, interest rate | 2.00% | 2.00% |
Net Income (Loss) Per Share (Ne
Net Income (Loss) Per Share (Net Income Per Share Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income attributable to MercadoLibre, Inc. per common share | ||
Net loss per common share, Basic | $ 1.30 | $ (0.68) |
Net loss per common share, Diluted | $ 1.30 | $ (0.68) |
Numerator: | ||
Net income | $ 65 | $ (34) |
Net income corresponding to common stock, Basic | 65 | (34) |
Net income corresponding to common stock, Diluted | $ 65 | $ (34) |
Denominator: | ||
Weighted average of common stock outstanding for Basic earnings per share | 50,408,754 | 49,867,625 |
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 50,408,754 | 49,867,625 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | $ 841 | $ 1,063 | ||
Bank Account (Argentine Central Bank Regulation) [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 374 | 449 | ||
Bank Account (Chilean Financial Market Commission) [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | 40 | $ 21 | ||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and short term investments | $ 941 | |||
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 Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Cash and cash equivalents | $ 1,573 | $ 2,585 | |||||
Restricted cash and cash equivalents | 841 | 1,063 | |||||
Total cash, cash equivalents, restricted cash and cash equivalents | 2,414 | [1] | 3,648 | [1] | $ 1,188 | $ 2,508 | |
Short-term Investments | 1,412 | 810 | |||||
Long-term Investments | 121 | 89 | |||||
Time Deposits [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 19 | 16 | |||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 941 | 602 | |||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | 16 | ||||||
Sovereign Debt Securities [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 372 | 192 | |||||
Long-term Investments | [2] | 52 | 23 | ||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | [3] | 15 | 13 | ||||
Corporate Debt Securities [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 80 | ||||||
Equity Interest Held At Cost [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | 54 | 53 | |||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 410 | 282 | |||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 296 | ||||||
Bank Account (Argentine Central Bank Regulation) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 374 | 449 | |||||
Bank Account (Chilean Financial Market Commission) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 40 | 21 | |||||
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 16 | $ 15 | |||||
Cash In Bank Account [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | $ 1 | ||||||
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow | ||||||
[2] | $ 16 million held by the Company’s Brazilian subsidiary in guarantee for secured lines of credit. (See Note 11 – Loans payable and other financial liabilities). | ||||||
[3] | 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 Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 2,415 | $ 1,695 |
Allowance for uncollectible accounts | (678) | (435) |
Loans receivables, net | 1,737 | 1,260 |
Credit Cards [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 468 | 296 |
On-line Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 426 | 361 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 1,270 | 851 |
In-Store Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 251 | $ 187 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule Of Credit Quality Analysis Of Loans Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 2,415 | $ 1,695 |
1-30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 145 | 90 |
31-60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 90 | 47 |
61-90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 88 | 37 |
91 - 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 71 | 37 |
121 - 150 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 55 | 31 |
151 - 180 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 41 | 25 |
181 - 210 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 39 | 24 |
211 - 240 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 34 | 23 |
241 - 270 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28 | 21 |
271 - 300 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 26 | 21 |
301 - 330 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 26 | 30 |
331 - 360 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 23 | 25 |
Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 666 | 411 |
To Become Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,749 | $ 1,284 |
Loans Receivable, Net (Summar_2
Loans Receivable, Net (Summary Of Allowance For Uncollectible Accounts Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans Receivable, Net [Abstract] | ||
Balance at beginning of year | $ 435 | $ 78 |
Charged/credited to Net Income (loss) | 253 | 86 |
Charges/Utilized/Currency translation adjustments/Write-offs | (10) | (24) |
Balance at end of period | $ 678 | $ 140 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill And Intangible Assets [Abstract] | ||
Aggregate amortization expense for intangible assets | $ 5 | $ 1 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Composition Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 162 | $ 148 | $ 85 | ||
Total intangible assets | 72 | 72 | |||
Accumulated amortization | (29) | (27) | |||
Total intangible assets, net | 43 | 45 | |||
Impairment of digital assets | 2 | $ 0 | |||
Licenses and Others [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 13 | 13 | |||
Non-Compete Agreement [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 4 | 4 | |||
Customer Lists [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 13 | 13 | |||
Trademarks [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 8 | 7 | |||
Hub Network [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 4 | 3 | |||
Other Intangible Assets [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets | 4 | 3 | |||
Trademarks [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible assets with indefinite lives | 7 | 8 | |||
Digital Assets [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible assets with indefinite lives | [1],[2] | 19 | 21 | ||
Impairment of digital assets | 11 | $ 9 | |||
Assets lent to counterpart in return for a fee | $ 19 | ||||
[1] | As of March 31, 2022, $ 19 million of digital assets were lent to a counterpart in return for a fee. The Company has not surrendered the control of the assets. | ||||
[2] | Digital assets are net of $ 11 million and $ 9 million of impairment losses as of March 31, 2022 and December 31, 2021. |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance, beginning of the year | $ 148 | $ 85 |
Business Acquisitions | 68 | |
Effect of exchange rates changes | (5) | |
Effect of exchange rates changes | 14 | |
Balance, end of the year | 162 | 148 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 56 | 20 |
Business Acquisitions | 37 | |
Effect of exchange rates changes | (1) | |
Effect of exchange rates changes | 10 | |
Balance, end of the year | 66 | 56 |
Argentina [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 10 | 10 |
Balance, end of the year | 10 | 10 |
Mexico [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 37 | 32 |
Business Acquisitions | 6 | |
Effect of exchange rates changes | (1) | |
Effect of exchange rates changes | 1 | |
Balance, end of the year | 38 | 37 |
Chile [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 37 | 17 |
Business Acquisitions | 23 | |
Effect of exchange rates changes | (3) | |
Effect of exchange rates changes | 3 | |
Balance, end of the year | 40 | 37 |
Colombia [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 6 | 4 |
Business Acquisitions | 2 | |
Balance, end of the year | 6 | 6 |
Other Countries [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 2 | 2 |
Balance, end of the year | $ 2 | $ 2 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Expected Intangible Asset Amortization Expense) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill And Intangible Assets [Abstract] | |
For year ended 12/31/2022 | $ 5 |
For year ended 12/31/2023 | 5 |
For year ended 12/31/2024 | 3 |
For year ended 12/31/2025 | 1 |
Thereafter | 3 |
Total remaining amortization of intangible assets | $ 17 |
Segment Reporting (Financial Pe
Segment Reporting (Financial Performance Of Company's Reporting Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 2,248 | $ 1,378 | |
Direct costs | (1,823) | (1,092) | |
Direct contribution | 425 | 286 | |
Operating expenses and indirect costs of net revenues | (286) | (195) | |
Income from operations | 139 | 91 | |
Other income (expenses): | |||
Interest income and other financial gains | 31 | 25 | |
Interest expense and other financial losses | [1] | (56) | (91) |
Foreign currency losses | (3) | (15) | |
Net income before income tax expense | 111 | 10 | |
Operating Segments [Member] | Brazil Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,252 | 769 | |
Direct costs | (1,065) | (618) | |
Direct contribution | 187 | 151 | |
Operating Segments [Member] | Argentina Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 518 | 297 | |
Direct costs | (320) | (189) | |
Direct contribution | 198 | 108 | |
Operating Segments [Member] | Mexico Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 364 | 230 | |
Direct costs | (328) | (221) | |
Direct contribution | 36 | 9 | |
Operating Segments [Member] | Other Countries Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 114 | 82 | |
Direct costs | (110) | (64) | |
Direct contribution | $ 4 | $ 18 | |
[1] | Includes $ 49 million 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 Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 967 | $ 807 |
US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1 | 1 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 183 | 174 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 518 | 395 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 190 | 176 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 75 | 61 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 966 | $ 806 |
Segment Reporting (Allocation_2
Segment Reporting (Allocation Of Goodwill And Intangible Assets Based On Geography) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 205 | $ 193 |
US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 19 | 21 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 16 | 16 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 69 | 60 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 43 | 41 |
Chile [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 48 | 45 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 10 | 10 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 186 | $ 172 |
Segment Reporting (Consolidated
Segment Reporting (Consolidated Net Revenues By Similar Products And Services) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 2,248 | $ 1,378 |
Commerce [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 1,277 | 911 |
Fintech [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 971 | $ 467 |
Fair Value Measurement Of Ass_3
Fair Value Measurement Of Assets And Liabilities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
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 | $ 333 | $ 331 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | $ 2,300 | $ 2,448 |
Contingent considerations | 9 | 9 |
Long-term retention plan | 33 | 103 |
Derivative Instruments | 53 | 6 |
Total Financial Liabilities | 95 | 118 |
Derivative Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 1 | 17 |
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 | 2,299 | 2,431 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term retention plan | 33 | 103 |
Total Financial Liabilities | 33 | 103 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | 1 | 17 |
Contingent considerations | 9 | 9 |
Derivative Instruments | 53 | 6 |
Total Financial Liabilities | 62 | 15 |
Unobservable Inputs (Level 3) [Member] | Derivative Instruments, Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 1 | 17 |
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 | 479 | 1,079 |
Restricted Cash and cash equivalents | 300 | 210 |
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 | 479 | 1,079 |
Restricted Cash and cash equivalents | 300 | 210 |
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 | 296 | |
Investments | 941 | 602 |
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 | 296 | |
Investments | 941 | 602 |
Sovereign Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 16 | |
Investments | 439 | 228 |
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 | 16 | |
Investments | 439 | $ 228 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 60 | |
Investments | 80 | |
Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 60 | |
Investments | $ 80 |
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 | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 4,881 | $ 3,671 | |
Liabilities | 8,754 | 7,926 | |
Accounts Payable And Accrued Expenses [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,027 | 1,036 | |
Funds Payable to Customers [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 2,483 | 2,393 | |
Amount Payable Due To Credit And Debit Card Transactions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 424 | 341 | |
Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 291 | 230 | |
Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 305 | 291 | |
Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 4,097 | 3,518 |
Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 127 | 117 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 4,881 | 3,671 | |
Liabilities | 8,651 | 7,942 | |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable And Accrued Expenses [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,027 | 1,036 | |
Significant Other Observable Inputs (Level 2) [Member] | Funds Payable to Customers [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 2,483 | 2,393 | |
Significant Other Observable Inputs (Level 2) [Member] | Amount Payable Due To Credit And Debit Card Transactions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 424 | 341 | |
Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 291 | 230 | |
Significant Other Observable Inputs (Level 2) [Member] | Taxes Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 305 | 291 | |
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] | 3,994 | 3,534 |
Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 127 | 117 | |
Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 19 | 16 | |
Time Deposits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 19 | 16 | |
Accounts Receivable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 98 | 98 | |
Accounts Receivable [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 98 | 98 | |
Credit Cards [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 2,512 | 1,839 | |
Credit Cards [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 2,512 | 1,839 | |
Loans Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,737 | 1,260 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,737 | 1,260 | |
Other Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 515 | 458 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 515 | $ 458 | |
[1] | The fair value of the 2028 Notes (including the conversion option) 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 | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 2,283,000 | $ 2,422,000 | |
Financial Gains | 17,000 | 9,000 | |
Financial Losses | (1,000) | ||
Estimated Fair Value | 2,299,000 | 2,431,000 | |
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 539,000 | 1,095,000 | |
Estimated Fair Value | 539,000 | 1,095,000 | |
Restricted Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 300,000 | 505,000 | |
Financial Gains | 1,000 | ||
Estimated Fair Value | 300,000 | 506,000 | |
Short Term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 1,387,000 | 787,000 | |
Financial Gains | 7,000 | 7,000 | |
Financial Losses | (1,000) | ||
Estimated Fair Value | 1,393,000 | 794,000 | |
Long-term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 57,000 | 35,000 | |
Financial Gains | 10,000 | 1,000 | |
Estimated Fair Value | 67,000 | 36,000 | |
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 479 | 1,079,000 | |
Estimated Fair Value | 479 | 1,079,000 | |
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | Restricted Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 300,000 | 210,000 | |
Estimated Fair Value | 300,000 | 210,000 | |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | Restricted Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 295,000 | |
Financial Gains | [1] | 1,000 | |
Estimated Fair Value | [1] | 296,000 | |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | Short Term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 934,000 | 595,000 |
Financial Gains | [1] | 7,000 | 7,000 |
Estimated Fair Value | [1] | 941,000 | 602,000 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | Long-term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 57,000 | |
Financial Gains | [1] | 10,000 | |
Estimated Fair Value | [1] | 67,000 | |
Sovereign Debt Securities [Member] | Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 16,000 | |
Estimated Fair Value | [1] | 16,000 | |
Sovereign Debt Securities [Member] | Short Term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 373,000 | 192,000 |
Financial Losses | [1] | (1,000) | |
Estimated Fair Value | [1] | 372,000 | 192,000 |
Sovereign Debt Securities [Member] | Long-term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | [1] | 35,000 | |
Financial Gains | [1] | 1,000 | |
Estimated Fair Value | [1] | $ 36,000 | |
Corporate Debt Securities [Member] | Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 60 | ||
Estimated Fair Value | 60 | ||
Corporate Debt Securities [Member] | Short Term Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 80,000 | ||
Estimated Fair Value | $ 80,000 | ||
[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 Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
One year or less | $ 2,232 | |
One year to two years | 1 | |
Two years to three years | 8 | |
Three years to four years | 4 | |
Four years to five years | 28 | |
More than five years | 26 | |
Total | $ 2,299 | $ 2,431 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | ||
Reserves for proceeding-related contingencies | $ 23,000,000 | |
Aggregate amount for legal actions for which no loss amount has been accrued | 81,000,000 | |
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 | $ 2,958,000,000 | $ 2,964,000,000 |
Product liability, contingency, recorded allowance | 6,000,000 | $ 5,000,000 |
ICMS-DIFAL [Member] | ||
Loss Contingencies [Line Items] | ||
Reserves for proceeding-related contingencies | 7,000,000 | |
Cloud Platform Services [Member] | ||
Loss Contingencies [Line Items] | ||
Paid in relation to the contract | 44,000,000 | |
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 II [Member] | ||
Loss Contingencies [Line Items] | ||
Paid in relation to the contract | 10,000,000 | |
Cloud Platform Services II [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 Plan (Long
Long Term Retention Plan (Long Term Retention Program Accrued Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | $ 30 | $ 22 |
LTRP 2016 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | (1) | |
LTRP 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | (1) | (1) |
LTRP 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 6 | 8 |
LTRP 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 7 | 10 |
LTRP 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | 8 | $ 6 |
LTRP 2022 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total LTRP | $ 10 |
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 ($) | Mar. 31, 2022USD ($)item$ / shares$ / item | Dec. 31, 2021USD ($) | Jan. 14, 2021USD ($) | 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 | |||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance of credit amounted | $ 0 | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.3125% | |||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2025 | |||||||||||||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, Fixed interest rate | 1.25% | |||||||||||||
Revolving Credit Facility [Member] | Subsidiaries [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||||||||
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 | |||||||||||||
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 | $ 11,000,000 | |||||||||||||
2028 Convertible Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on extinguishment of debt | $ 49,000,000 | |||||||||||||
Paid in premium | 19,000,000 | |||||||||||||
Fair value of the liability component and the net carrying amount of the liability | (30,000,000) | |||||||||||||
Remaining consideration allocated to reacquisition of equity component | 1,484,000,000 | |||||||||||||
Amount paid to enter into capped call transactions | 101,000,000 | $ 120,000,000 | ||||||||||||
Capped call transactions, cash received | $ 294,000,000 | $ 102,000,000 | ||||||||||||
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 | $ 1,865,000,000 | |||||||||||||
Two Notes Converted [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt conversion, converted instrument, principal amount | $ 2,000 | |||||||||||||
Number of notes converted | item | 2 | |||||||||||||
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% | ||||||||||||
Debt instrument, maturity date | Aug. 15, 2028 | |||||||||||||
Debt issuance costs | $ 4,000,000 | |||||||||||||
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 | $ 83,000,000 | $ 104,000,000 | $ 8,000,000 | $ 88,000,000 | $ 11,000,000 | $ 92,000,000 | ||||||||
Estimated fair value | $ 1,220,000,000 | $ 1,367,000,000 | ||||||||||||
Common stock, closing price per share | $ / shares | $ 1,189.48 | |||||||||||||
Debt instrument convertible, if-converted value in excess of principal | $ 739,000,000 | |||||||||||||
Debt instrument outstanding | $ 439,000,000 |
Loans Payable And Other Finan_4
Loans Payable And Other Financial Liabilities (Summary Of Loans Payable And Other Financial Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Finance lease obligations, current | $ 12 | $ 10 |
Collateralized debt, current | 109 | 77 |
Other lines of credit, current | 5 | 2 |
Current loans payable and other financial liabilities | 1,459 | 1,285 |
Finance lease obligations, noncurrent | 39 | 36 |
Collateralized debt, noncurrent | 916 | 674 |
Other lines of credit, noncurrent | 4 | |
Non Current loans payable and other financial liabilities | 2,638 | 2,233 |
Loans From Banks, 8.04% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 126 | 112 |
Debt weight average rate | 8.04% | |
Loans From Banks, LIBOR 3M + 0.7408 [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 60 | 60 |
Loans From Banks, LIBOR 3M + 0.7408 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.7408% | |
Loans From Banks, 1.30% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 50 | 50 |
Debt weight average rate | 1.30% | |
Loans From Banks, 1.70% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 50 | 50 |
Debt weight average rate | 1.70% | |
Loans From Banks, TIIE + 2.20 [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 68 | 66 |
Loans From Banks, TIIE + 2.20 [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
Loans From Banks, 6.69% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 9 | 8 |
Debt weight average rate | 6.69% | |
Loans From Banks, 7.15% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 16 | 15 |
Debt weight average rate | 7.15% | |
Loans From Banks, 7.30% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 11 | 16 |
Debt weight average rate | 7.30% | |
Loans From Banks, 8.16% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 8 | |
Debt weight average rate | 8.16% | |
Loans From Banks, 2.46% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 2 | 1 |
Loans from banks, noncurrent | $ 3 | 4 |
Debt weight average rate | 2.46% | |
Secured Lines Of Credit, 37.01% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 37 | 44 |
Debt weight average rate | 37.01% | |
Secured Lines Of Credit, 35.69% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 26 | 25 |
Debt weight average rate | 35.69% | |
Secured Lines Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 16 | |
Secured Lines Of Credit, 10.08% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | 4 | 4 |
Secured lines of credit | $ 17 | 17 |
Debt weight average rate | 10.08% | |
Unsecured Lines Of Credit, 7.98% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 26 | 27 |
Debt weight average rate | 7.98% | |
Unsecured Lines Of Credit, 37.05% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 97 | 115 |
Debt weight average rate | 37.05% | |
Unsecured Lines Of Credit, 1% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 1 | 4 |
Debt weight average rate | 1.00% | |
Deposit Certificates, IPCA + 5.25 -7.15% [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | $ 75 | |
Deposit Certificates, 99% to 126.5% of CDI [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 455 | 518 |
Deposit Certificates, 7.65 - 13.30% [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 83 | 41 |
Deposit Certificates, CDI + 0.72-0.76% [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 105 | 23 |
2028 Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Convertible notes, current | 1 | 3 |
Convertible notes, noncurrent | 435 | 312 |
2026 Sustainability Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 2 | 4 |
Senior Notes, noncurrent | 397 | 397 |
Notes Due 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 5 | 10 |
Senior Notes, noncurrent | 694 | 694 |
Financial Bills, CDI + 0.95-1.10% [Member] | ||
Debt Instrument [Line Items] | ||
Financial Bills, noncurrent | 111 | 92 |
Deposit Certificates, 106% to 129% of CDI [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 17 | 3 |
Loans From Banks, TLJP + 0.8% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from banks, noncurrent | $ 5 | $ 4 |
Loans From Banks, TLJP + 0.8% [Member] | TJLP [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
Minimum [Member] | Deposit Certificates, IPCA + 5.25 -7.15% [Member] | IPCA [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.25% | |
Minimum [Member] | Deposit Certificates, 99% to 126.5% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 99.00% | |
Minimum [Member] | Deposit Certificates, 7.65 - 13.30% [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 7.65% | |
Minimum [Member] | Deposit Certificates, CDI + 0.72-0.76% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.72% | |
Minimum [Member] | Financial Bills, CDI + 0.95-1.10% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.95% | |
Minimum [Member] | Deposit Certificates, 106% to 129% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 106.00% | |
Maximum [Member] | Deposit Certificates, IPCA + 5.25 -7.15% [Member] | IPCA [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 7.15% | |
Maximum [Member] | Deposit Certificates, 99% to 126.5% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 126.50% | |
Maximum [Member] | Deposit Certificates, 7.65 - 13.30% [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 13.30% | |
Maximum [Member] | Deposit Certificates, CDI + 0.72-0.76% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.76% | |
Maximum [Member] | Financial Bills, CDI + 0.95-1.10% [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.10% | |
Maximum [Member] | Deposit Certificates, 106% to 129% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 129.00% |
Securitization Transactions (Co
Securitization Transactions (Collateralized Debt) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Special Purpose Entities I [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | $ 170 | |
Special Purpose Entities II [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 211 | |
Special Purpose Entities III [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 23 | |
Special Purpose Entities IV [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 109 | |
Special Purpose Entities V [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 172 | |
Special Purpose Entities VI [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 2 | |
Special Purpose Entities VII [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 6 | |
Special Purpose Entities VIII [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 4 | |
Special Purpose Entities IX [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 12 | |
Special Purpose Entities X [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 12 | |
Special Purpose Entities XI [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 13 | [1] |
Special Purpose Entities XII [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 9 | |
Special Purpose Entities XIII [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | $ 14 | |
Basis spread on variable rate | 2.00% | |
Special Purpose Entities XIV [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | $ 17 | [1] |
Special Purpose Entities XV [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | 150 | |
Special Purpose Entities XVI [Member] | ||
Debt Instrument [Line Items] | ||
Collateralized debt | $ 101 | |
Maximum [Member] | Special Purpose Entities XIII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
Minimum [Member] | Special Purpose Entities XIII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
CDI [Member] | Special Purpose Entities I [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
CDI [Member] | Special Purpose Entities II [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
CDI [Member] | Special Purpose Entities III [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
CDI [Member] | Special Purpose Entities IV [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
CDI [Member] | Special Purpose Entities V [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.90% | |
BADLAR Rate [Member] | Special Purpose Entities VI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities VII [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities VIII [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities IX [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities X [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities XI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | [1] |
BADLAR Rate [Member] | Special Purpose Entities XII [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
BADLAR Rate [Member] | Special Purpose Entities XIV [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | [1] |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VI [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 45.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VIII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities IX [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities X [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XI [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 50.00% | [1] |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 46.00% | |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XIV [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 48.00% | [1] |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VI [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VIII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities IX [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities X [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XI [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | [1] |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XII [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XIV [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 30.00% | [1] |
Diario Oficial [Member] | Special Purpose Entities XV [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.90% | |
Diario Oficial [Member] | Special Purpose Entities XVI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
[1] |
Securitization Transactions (As
Securitization Transactions (Assets And Liabilities Of The Trust) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 841 | $ 1,063 |
Short-term investments | 1,412 | 810 |
Credit cards receivable and other means of payments, net | 2,512 | 1,839 |
Loans receivable, net | 1,657 | 1,199 |
Other assets | 294 | 288 |
Total current assets | 8,705 | 8,175 |
Long-term investments | 121 | 89 |
Loans receivable, net | 80 | 61 |
Total non-current assets | 2,318 | 1,926 |
Total assets | 11,023 | 10,101 |
Accounts payable and accrued expenses | 1,027 | 1,036 |
Loans payable and other financial liabilities | 1,459 | 1,285 |
Total current liabilities | 6,228 | 5,837 |
Loans payable and other financial liabilities | 2,638 | 2,233 |
Total non-current liabilities | 3,206 | 2,733 |
Total liabilities | 9,434 | 8,570 |
Trust Created In Brazil [Member] | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 410 | 282 |
Credit cards receivable and other means of payments, net | 284 | 278 |
Loans receivable, net | 867 | 608 |
Total current assets | 1,561 | 1,168 |
Long-term investments | 15 | 13 |
Loans receivable, net | 59 | 45 |
Total non-current assets | 74 | 58 |
Total assets | 1,635 | 1,226 |
Accounts payable and accrued expenses | 3 | 1 |
Loans payable and other financial liabilities | 109 | 77 |
Total current liabilities | 112 | 78 |
Loans payable and other financial liabilities | 916 | 674 |
Total non-current liabilities | 916 | 674 |
Total liabilities | $ 1,028 | $ 752 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 542 | $ 461 |
Operating lease liabilities | 543 | 464 |
Finance Leases, Property and equipment, at cost | 79 | 68 |
Finance Leases, Accumulated depreciation | (18) | (14) |
Finance Leases, Property and equipment, net | 61 | 54 |
Loans payable and other financial liabilities | $ 51 | $ 46 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Mar. 31, 2022 | |
Leases [Abstract] | ||
Weighted average remaining lease term, Operating leases | 7 years | |
Weighted average remaining lease term, Finance leases | 4 years | |
Weighted average discount rate, Operating leases | 9.00% | [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 Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 27 | $ 16 |
Depreciation of property and equipment | 4 | 1 |
Interest on lease liabilities | 2 | 1 |
Total finance lease cost | $ 6 | $ 2 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 27 | $ 15 |
Financing cash flows from finance leases | 4 | 4 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 61 | 65 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 3 | $ 6 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Leases, One year or less | $ 124 | |
Operating Leases, One year to two years | 121 | |
Operating Leases, Two years to three years | 114 | |
Operating Leases, Three years to four years | 99 | |
Operating Leases, Fours years to five years | 69 | |
Operating Leases, Thereafter | 180 | |
Operating Leases, Total lease payments | 707 | |
Operating Leases, Less imputed interest | (164) | |
Operating leases, Total | 543 | $ 464 |
Finance Leases, One year or less | 17 | |
Finance Leases, One year to two years | 18 | |
Finance Leases, Two years to three years | 16 | |
Finance Leases, Three years to four years | 9 | |
Finance Leases, Fours years to five years | 7 | |
Finance Leases, Total lease payments | 67 | |
Finance Leases, Less imputed interest | (16) | |
Finance Leases, Total | $ 51 | $ 46 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Notional Amounts) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 91 | $ 89 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 48 | |
Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 105 | 94 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 82 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 343 | 249 |
Not Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 160 | $ 160 |
Derivative Instruments (Summa_2
Derivative Instruments (Summary Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative | $ (18) | $ 8 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | (12) | 1 |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2 | |
Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 12 | 1 |
Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 4 | |
Interest Rate Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 1 | |
Cross Currency Swap Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | (6) | 7 |
Cross Currency Swap Contracts [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 8 | |
Cross Currency Swap Contracts [Member] | Other Non-Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 7 | |
Cross Currency Swap Contracts [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 29 | $ 5 |
Cross Currency Swap Contracts [Member] | Other Non-Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 8 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Contracts On Comprehensive Income) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | $ 8 |
Amount of Loss (gains) recognized in other comprehensive loss | (29) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 3 |
End Balance | (18) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | 1 |
Amount of Loss (gains) recognized in other comprehensive loss | (14) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 1 |
End Balance | (12) |
Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | 7 |
Amount of Loss (gains) recognized in other comprehensive loss | (15) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 2 |
End Balance | $ (6) |
Derivative Instruments (Effec_2
Derivative Instruments (Effect Of Derivative Contracts On Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments [Abstract] | ||
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net | $ (5) | $ 19 |
Cross currency swap contract not designated as hedging instrument recognized in foreign exchange | $ (32) |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 01, 2022 | Jun. 07, 2021 | Aug. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Aug. 04, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Foreign currency loss | $ 30 | $ 25 | ||||
August 30, 2020 Board Authorized Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, par value | $ 0.001 | |||||
Aggregate consideration amount of repurchase program | $ 350 | |||||
Shares acquired from repurchase program | 163,820 | |||||
Common Stock repurchased, shares | 229,588 | |||||
Foreign currency loss | $ 35 | $ 18 | ||||
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 | |||||
Repurchase program, expiration date | Aug. 31, 2022 | |||||
March 1, 2022 Board Authorized Increase [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program authorized amount increase | $ 300 | |||||
Minimum [Member] | March 1, 2022 Board Authorized Increase [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program aggregate consideration | 150 | |||||
Maximum [Member] | March 1, 2022 Board Authorized Increase [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program aggregate consideration | $ 450 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Events [Member] | Apr. 08, 2022USD ($)shares |
Subsequent Event [Line Items] | |
Business agreement term | 10 years |
Advisory services agreement monthly fee | $ | $ 10,000 |
Restricted Stock [Member] | Former Executive Officer [Member] | |
Subsequent Event [Line Items] | |
Award granted | shares | 5,051 |