Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Entity Address [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 50,338,275 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,329 | $ 2,585 |
Restricted cash and cash equivalents | 924 | 1,063 |
Short-term investments ($748 and $602 held in guarantee - see Note 4) | 1,645 | 810 |
Accounts receivable, net | 102 | 98 |
Credit cards receivables and other means of payments, net | 2,501 | 1,839 |
Loans receivable, net of allowance of $807 and $408 - (see Note 5) | 1,790 | 1,199 |
Prepaid expenses | 77 | 40 |
Inventories | 183 | 253 |
Other assets | 312 | 288 |
Total current assets | 8,863 | 8,175 |
Non-current assets: | ||
Long-term investments | 456 | 89 |
Loans receivable, net of allowances of $35 and $27 - (see Note 5) | 55 | 61 |
Property and equipment, net | 932 | 807 |
Operating lease right-of-use assets | 525 | 461 |
Goodwill | 149 | 148 |
Intangible assets, net | 31 | 45 |
Deferred tax assets | 248 | 181 |
Other assets | 188 | 134 |
Total non-current assets | 2,584 | 1,926 |
Total assets | 11,447 | 10,101 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,131 | 1,036 |
Funds payable to customers | 2,528 | 2,393 |
Amounts payable due to credit and debit card transactions | 433 | 337 |
Salaries and social security payable | 273 | 313 |
Taxes payable | 327 | 291 |
Loans payable and other financial liabilities | 1,925 | 1,285 |
Operating lease liabilities | 108 | 92 |
Other liabilities | 98 | 90 |
Total current liabilities | 6,823 | 5,837 |
Non-current liabilities: | ||
Amounts payable due to credit and debit card transactions | 4 | 4 |
Salaries and social security payable | 4 | 20 |
Taxes payable | 20 | 0 |
Loans payable and other financial liabilities | 2,515 | 2,233 |
Operating lease liabilities | 420 | 372 |
Deferred tax liabilities | 32 | 62 |
Other liabilities | 49 | 42 |
Total non-current liabilities | 3,044 | 2,733 |
Total liabilities | 9,867 | 8,570 |
Commitments and Contingencies (Note 9) | ||
Equity | ||
Common stock, $0.001 par value, 110,000,000 shares authorized, 50,338,275 and 50,418,980 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 0 | 0 |
Additional paid-in capital | 2,308 | 2,439 |
Treasury stock | (858) | (790) |
Retained earnings | 619 | 397 |
Accumulated other comprehensive loss | (489) | (515) |
Total Equity | 1,580 | 1,531 |
Total Liabilities and Equity | $ 11,447 | $ 10,101 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Interim Condensed Consolidated Balance Sheets [Abstract] | ||
Short-term investments, held in guarantee | $ 748 | $ 602 |
Loans receivable allowance, current | 807 | 408 |
Loans receivable allowance, noncurrent | $ 35 | $ 27 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 50,338,275 | 50,418,980 |
Common stock, shares outstanding | 50,338,275 | 50,418,980 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net revenues | $ 2,597 | $ 1,703 | $ 4,845 | $ 3,081 | |
Cost of net revenues | (1,313) | (949) | (2,488) | (1,736) | |
Gross profit | 1,284 | 754 | 2,357 | 1,345 | |
Operating expenses: | |||||
Product and technology development | (262) | (147) | (496) | (273) | |
Sales and marketing | (296) | (251) | (583) | (455) | |
Provision for doubtful accounts | (303) | (82) | (557) | (166) | |
General and administrative | (173) | (108) | (332) | (194) | |
Total operating expenses | (1,034) | (588) | (1,968) | (1,088) | |
Income from operations | 250 | 166 | 389 | 257 | |
Other income (expenses): | |||||
Interest income and other financial gains | 46 | 24 | 77 | 49 | |
Interest expense and other financial losses | [1] | (73) | (40) | (129) | (131) |
Foreign currency losses, net | (60) | (12) | (63) | (27) | |
Net income before income tax expense | 163 | 138 | 274 | 148 | |
Income tax expense | (39) | (70) | (85) | (114) | |
Equity in earnings of unconsolidated entity | (1) | (1) | |||
Net income | $ 123 | $ 68 | $ 188 | $ 34 | |
Basic EPS: Basic net income | |||||
Available to shareholders per common share | $ 2.43 | $ 1.37 | $ 3.73 | $ 0.69 | |
Weighted average of outstanding common shares | 50,364,529 | 49,822,272 | 50,386,519 | 49,844,823 | |
Diluted EPS: Diluted net income | |||||
Available to shareholders per common share | $ 2.43 | $ 1.37 | $ 3.73 | $ 0.69 | |
Weighted average of outstanding common shares | 50,364,529 | 49,822,272 | 50,386,519 | 49,844,823 | |
Service [Member] | |||||
Net revenues | $ 2,332 | $ 1,505 | $ 4,329 | $ 2,735 | |
Product [Member] | |||||
Net revenues | $ 265 | $ 198 | $ 516 | $ 346 | |
[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, 2021 USD ($) | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interim Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 123 | $ 68 | $ 188 | $ 34 |
Other comprehensive income (loss), net of income tax: | ||||
Currency translation adjustment | (113) | 66 | 38 | 24 |
Unrealized (losses) gains on hedging activities | 5 | (4) | (19) | |
Less: Reclassification adjustment for (losses) gains from accumulated other comprehensive income (loss) | (5) | 2 | (7) | 2 |
Net change in accumulated other comprehensive income (loss), net of income tax | (103) | 60 | 26 | 22 |
Total Comprehensive income | $ 20 | $ 128 | $ 214 | $ 56 |
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 | (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, 2020 | 1,861 | (55) | 314 | (468) | 1,652 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 50 | ||||||||||||||
Net income | 34 | ||||||||||||||
Ending Balance at Jun. 30, 2021 | 455 | (276) | 348 | (446) | 81 | ||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 50 | ||||||||||||||
Beginning Balance at Mar. 31, 2021 | 276 | (80) | 280 | (506) | (30) | ||||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 50 | ||||||||||||||
Exercise of Convertible Notes | (2) | (2) | |||||||||||||
Unwind Capped Call | 181 | (79) | 102 | ||||||||||||
Common Stock repurchased | (117) | (117) | |||||||||||||
Net income | 68 | 68 | |||||||||||||
Other comprehensive income (loss) | 60 | 60 | |||||||||||||
Ending Balance at Jun. 30, 2021 | 455 | (276) | 348 | (446) | 81 | ||||||||||
Ending Balance (in shares) at Jun. 30, 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 | 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 | ||||||||||||||
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 | |||||||||||||
Net income | 188 | ||||||||||||||
Ending Balance at Jun. 30, 2022 | 2,308 | (858) | 619 | (489) | 1,580 | ||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 50 | ||||||||||||||
Beginning Balance at Mar. 31, 2022 | 2,308 | (829) | 496 | (386) | 1,589 | ||||||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 50 | ||||||||||||||
Shares granted (Note 17) | 6 | 6 | |||||||||||||
Common Stock repurchased | (35) | (35) | |||||||||||||
Net income | 123 | 123 | |||||||||||||
Other comprehensive income (loss) | (103) | (103) | |||||||||||||
Ending Balance at Jun. 30, 2022 | $ 2,308 | $ (858) | $ 619 | $ (489) | $ 1,580 | ||||||||||
Ending Balance (in shares) at Jun. 30, 2022 | 50 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statement Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operations: | |||
Net income | $ 188 | $ 34 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Unrealized devaluation loss, net | 134 | 45 | |
Impairment of digital assets | 11 | 7 | |
Depreciation and amortization | 184 | 85 | |
Accrued interest income | (65) | (9) | |
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 155 | 48 | |
Provision for doutbful accounts | 557 | 166 | |
Financial results on derivative instruments | 22 | 11 | |
LTRP accrued compensation | 35 | 51 | |
Deferred income taxes | (67) | 16 | |
Changes in assets and liabilities: | |||
Accounts receivable | (32) | (30) | |
Credit card receivables and other means of payments | (642) | (301) | |
Prepaid expenses | (36) | (29) | |
Inventories | 81 | (47) | |
Other assets | (81) | (92) | |
Payables and accrued expenses | 32 | 10 | |
Funds payable to customers | 119 | 71 | |
Amounts payable due to credit and debit card transactions | 80 | 12 | |
Other liabilities | (55) | (64) | |
Interest received from investments | 54 | 15 | |
Net cash provided by (used in) operating activities | 674 | (1) | |
Cash flows from investing activities: | |||
Purchase of investments | (6,190) | (5,208) | |
Proceeds from sale and maturity of investments | 5,043 | 5,575 | |
Receipts from settlements of derivative instruments | 0 | 4 | |
Payment for settlements of derivative instruments | (7) | (11) | |
Purchases of intangible assets | (1) | (20) | |
Changes in principal of loans receivable, net | (1,170) | (333) | |
Purchases of property and equipment | (236) | (263) | |
Net cash used in investing activities | (2,561) | (256) | |
Cash flows from financing activities: | |||
Proceeds from loans payable and other financial liabilities | 7,315 | 3,502 | |
Payments on loans payable and other financial liabilities | (6,646) | (2,240) | |
Payments on repurchase of the 2028 Notes | 0 | (1,865) | |
Payment of finance lease obligations | (9) | (9) | |
Purchase of convertible note capped call | 0 | (101) | |
Unwind of convertible note capped call | 0 | 102 | |
Common Stock repurchased | (74) | (142) | |
Exercise of Convertible Notes | 0 | (3) | |
Net cash provided by (used in) financing activities | 586 | (756) | |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (94) | (64) | |
Net decrease in cash, cash equivalents, restricted cash and cash equivalents | (1,395) | (1,077) | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | 3,648 | [1] | 2,508 |
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | $ 2,253 | [1] | $ 1,431 |
[1] Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow |
Nature Of Business
Nature Of Business | 6 Months Ended |
Jun. 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 $ 1,101 million and $ 978 million as of June 30, 2022 and December 31, 2021, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of June 30, 2022 and December 31, 2021. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income and equity for the six and three-month periods ended June 30, 2022 and 2021 and statements of cash flows for the six-month periods ended June 30, 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. Certain comparative figures of these interim condensed consolidated financial statements were modified to provide more detailed disclosures. The Company discloses the provision for doubtful accounts as a separate line item of its operating expenses in the interim condensed consolidated statements of income. The provision for doubtful accounts amounts to $ 557 million and $ 303 million for the six and three-month periods ended June 30, 2022, and $ 166 million and $ 82 million for the six and three-month periods ended June 30, 2021. This change has not impacted the total amount of net income and total equity. 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 six-month period ended June 30, 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. The aggregate gain included in net revenues arising from financing transactions, net of the costs recognized on sale of credit card receivables, is $ 490 million and $ 263 million for the six and three-month periods ended June 30, 2022, and $ 281 million and $ 148 million for the six and three-month periods ended June 30, 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 accounts and chargebacks of $ 868 million and $ 474 million as of June 30, 2022 and December 31, 2021, respectively. The allowance for doubtful accounts with respect to the Company’s loans receivables amounts to $ 842 million and $ 435 million as of June 30, 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 months. Deferred revenue as of December 31, 2021 was $ 34 million, of which $ 21 million was recognized as revenue during the six-month period ended June 30, 2022. As of June 30, 2022, total deferred revenue was $ 29 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. Provision for buyer protection program The Company provides consumers with a buyer protection program (“BPP”) for all transactions completed through the Company’s online payment solution (“Mercado Pago”). The Company is exposed to losses under this program given that this program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. Provisions for BPP represent the Company’s estimate of probable losses based on its historical experience. The charge for the provision for BPP is recognized in sales and marketing expense line of the consolidated statement of income. 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 period-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the period, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting 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 is the official exchange rate, which as of June 30, 2022 was 125.23 . 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 June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 (In millions) Assets $ 2,488 $ 2,479 Liabilities 1,889 1,874 Net Assets $ 599 $ 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 $ 17 million and $ 2 million for the six and three-month periods ended June 30, 2022, respectively, and $ 33 million and $ 21 million for the six and three-month periods ended June 30, 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 has effect from 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 ( 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. were retroactive to January 1, 2020. As a result, the Company accounted for an income tax benefit of $ 12 million during the nine and three-month periods ended September 30, 2021, of which $ 8 million corresponded to the period ended December 31, 2020. Also, the Company recorded a social security benefit of $ 36 million during the nine and three-month periods ended September 30, 2021, of which $ 15 million corresponded to the period ended December 31, 2020. Given that the promotional regime establishes that exports of services by eligible companies are not subject to export duties, the Company recognized a gain of $ 24 million during the nine and three-month periods ended September 30, 2021, related to export duties accrued from January 2020 to August 2021 that were no longer required to be paid. During the six and three-month periods ended June 30, 2022, the Company accounted for an income tax benefit of $ 4 million and $ 3 million, respectively. The aggregate per share effect of the income tax benefit amounted to $ 0.08 and $ 0.06 for the six and three-month periods ended June 30, 2022, respectively. Furthermore, the Company recorded a social security benefit of $ 26 million and $ 11 million during the six and three-month periods ended June 30, 2022, respectively. Additionally, during the six and three-month periods ended June 30, 2022, the Company accrued a charge of $ 2 million and $ 1 million, respectively, to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. The Company’s consolidated effective tax rate for the six-month period ended June 30, 2022 compared to the same period in 2021 decreased from 77.0 % to 31.0 %, largely as a result of the one-time loss on debt extinguishment related to 2028 Notes repurchase recognized during the first quarter of 2021 which was considered a non-deductible expense and lower pre-tax losses in the Mexican segment that were not accounted for as deferred tax assets as a consequence of the valuation allowance. The Company’s consolidated effective tax rate for the three-month period ended June 30, 2022 compared to the same period in 2021 decreased from 50.9 % to 24.5 %, as a result of the combined effect of lower pre-tax losses in the Mexican segment that were not accounted for as deferred tax assets as a consequence of the valuation allowance and higher non-taxable pre-tax gains in the Brazilian segment. 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 $ 12 million and $ 3 million for the investments as of June 30, 2022 and 2021, respectively. Accumulated other comprehensive loss The following tables set forth the Company’s accumulated other comprehensive loss as of June 30, 2022 and December 31, 2021 and summarize the changes in accumulated balances of other comprehensive income (loss) for the six months ended June 30, 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 ( 24 ) 38 5 19 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 9 — ( 2 ) 7 Net current period other comprehensive income (loss) ( 15 ) 38 3 26 Balances as of June 30, 2022 $ ( 7 ) $ ( 485 ) $ 3 $ ( 489 ) 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 $ ( 9 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 2 Income tax expense Total reclassifications for the period $ ( 7 ) 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, 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 loans receivables, 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 March 31, 2022, the SEC released the Staff Accounting Bulletin (SAB) No. 121. This SAB expresses views of the SEC’s 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 SEC’s staff view is 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 has assessed the SAB and based on the facts and information at this time does not believe it has impact on the Company’s financial statements. 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 additional paid in capital of $ 131 million and retained earnings of $ 34 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 June 30, 2022, the FASB issued ASU 2022-03 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered when measuring its fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years and should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. 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 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 Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | 3. Net income per share Basic earnings per share for the Company’s common stock is computed by dividing, net income available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the period. On August 24, 2018 and August 31, 2018 the Company issued an aggregate principal amount of $ 880 million of 2.00 % Convertible Senior Notes due 2028 (see Note 11 to these interim condensed consolidated financial statements). The conversion of these notes are included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of these Notes is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. The denominator for diluted net income per share for the six and three-month periods ended June 30, 2022 and 2021 does not include any effect from the capped call transactions entered into by the Company with certain financial institutions with respect to shares of the Company’s common stock (“2028 Notes Capped Call Transactions”) 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 2028 Notes Capped Call Transactions are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes. S ee 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 per share of common stock is as follows for the six and three-month periods ended June 30, 2022 and 2021: Six Months Ended June 30 Three Months Ended June 30 2022 2021 2022 2021 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income per common share $ 3.73 $ 3.73 $ 0.69 $ 0.69 $ 2.43 $ 2.43 $ 1.37 $ 1.37 Numerator (in millions): Net income $ 188 $ 188 $ 34 $ 34 $ 123 $ 123 $ 68 $ 68 Net income corresponding to common stock $ 188 $ 188 $ 34 $ 34 $ 123 $ 123 $ 68 $ 68 Denominator: Weighted average of common stock outstanding for Basic earnings per share 50,386,519 — 49,844,823 — 50,364,529 — 49,822,272 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 50,386,519 — 49,844,823 — 50,364,529 — 49,822,272 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2022 2021 (In millions) Cash and cash equivalents $ 1,329 $ 2,585 Restricted cash and cash equivalents Securitization Transactions $ 310 $ 282 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 135 296 Bank account (Argentine Central Bank regulation) 415 449 Bank account (Chilean Financial Market Commission) 7 21 Time Deposits (Chilean Financial Market Commission) 33 — Money Market Funds (Secured lines of credit guarantee) 24 15 Total restricted cash and cash equivalents $ 924 $ 1,063 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 2,253 $ 3,648 Short-term investments Time Deposits $ 503 $ 16 Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) 748 602 Sovereign Debt Securities 339 192 Corporate Debt Securities 55 — Total short-term investments $ 1,645 $ 810 Long-term investments Sovereign Debt Securities $ 385 $ 23 Securitization Transactions (**) 15 13 Equity interest held at cost 56 53 Total long-term investments $ 456 $ 89 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow . (**) Investments from securitization transactions are restricted to the payment of amounts due to third-party investors. |
Loans Receivable, Net
Loans Receivable, Net | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable, Net [Abstract] | |
Loans Receivable, Net | 5. Loans receivable, net The Company classifies loans receivable as “On-line merchant”, “Consumer”, “In-store merchant” and “Credit Cards.” As of June 30, 2022 and December 31, 2021, Loans receivable, net were as follows: June 30, 2022 Loans receivable Allowance for doubtful accounts Loans receivable, net (In millions) On-line merchant $ 414 $ ( 105 ) $ 309 Consumer 1,472 ( 443 ) 1,029 In-store merchant 276 ( 123 ) 153 Credit Cards 525 ( 171 ) 354 Total $ 2,687 $ ( 842 ) $ 1,845 December 31, 2021 Loans receivable Allowance for doubtful accounts Loans receivable, net (In millions) On-line merchant $ 361 $ ( 79 ) $ 282 Consumer 851 ( 232 ) 619 In-store merchant 187 ( 76 ) 111 Credit Cards 296 ( 48 ) 248 Total $ 1,695 $ ( 435 ) $ 1,260 The credit quality analysis of loans receivable was as follows: June 30, December 31, 2022 2021 (In millions) 1-30 days past due $ 164 $ 90 31-60 days past due 97 47 61 -90 days past due 93 37 91 -120 days past due 85 37 121 -150 days past due 86 31 151 -180 days past due 80 25 181 -210 days past due 59 24 211 -240 days past due 49 23 241 -270 days past due 39 21 271 -300 days past due 36 21 301 -330 days past due 30 30 331 -360 days past due 25 25 Total past due 843 411 To become due 1,844 1,284 Total $ 2,687 $ 1,695 The following tables summarize the allowance for doubtful accounts activity during the six-month periods ended June 30, 2022 and 2021: June 30, 2022 On-line merchant Consumer In-store merchant Credit Cards Total (In millions) Balance at beginning of year $ 79 $ 232 $ 76 $ 48 $ 435 Charged/credited to Net Income 58 299 76 124 557 Charges/Utilized /Currency translation adjustments/Write-offs ( 32 ) ( 88 ) ( 29 ) ( 1 ) ( 150 ) Balance at end of period $ 105 $ 443 $ 123 $ 171 $ 842 June 30, 2021 On-line merchant Consumer In-store merchant Credit Cards Total (In millions) Balance at beginning of year $ 20 $ 45 $ 13 $ — $ 78 Charged/credited to Net Income 30 101 34 2 167 Charges/Utilized /Currency translation adjustments/Write-offs ( 2 ) ( 4 ) 1 ( 1 ) ( 6 ) Balance at end of period $ 48 $ 142 $ 48 $ 1 $ 239 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2022 2021 (In millions) Goodwill $ 149 $ 148 Intangible assets with indefinite lives - Trademarks 7 8 - Digital assets (1) 10 21 Amortizable intangible assets - Licenses and others 13 13 - Non-compete agreement 4 4 - Customer list 12 13 - Trademarks 8 7 - Hubs Network 4 3 - Others 3 3 Total intangible assets $ 61 $ 72 Accumulated amortization ( 30 ) ( 27 ) Total intangible assets, net $ 31 $ 45 (1) Digital assets are net of $ 20 million and $ 9 million of impairment losses as of June 30, 2022 and December 31, 2021. Goodwill The changes in the carrying amount of goodwill for the six-month period ended June 30, 2022 and the year ended December 31, 2021 are as follows: Six Months Ended June 30, 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 3 — 1 ( 3 ) — — 1 Balance, end of the period $ 59 $ 10 $ 38 $ 34 $ 6 $ 2 $ 149 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 for the six-month periods ended June 30, 2022 and 2021 amounted to $ 3 million and $ 3 million, respectively, while aggregate amortization expense for intangible assets totaled $ 2 million and $ 2 million for the three-month periods ended June 30, 2022 and 2021, respectively. The following table summarizes the remaining amortization of intangible assets (in millions of U.S. dollars) with definite useful life as of June 30, 2022 : For year ended 12/31/2022 $ 3 For year ended 12/31/2023 5 For year ended 12/31/2024 2 For year ended 12/31/2025 1 Thereafter 3 $ 14 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 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, Ecuador, Peru and Uruguay). 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, provision for doubtful accounts and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, payroll and third-party fees. All corporate related costs have been excluded from the segment’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: Six Months Ended June 30, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 2,703 $ 1,112 $ 792 $ 238 $ 4,845 Direct costs ( 2,263 ) ( 692 ) ( 691 ) ( 227 ) ( 3,873 ) Direct contribution 440 420 101 11 972 Operating expenses and indirect costs of net revenues ( 583 ) Income from operations 389 Other income (expenses): Interest income and other financial gains 77 Interest expense and other financial losses ( 129 ) Foreign currency losses, net ( 63 ) Net income before income tax expense $ 274 Six Months Ended June 30, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,720 $ 663 $ 489 $ 209 $ 3,081 Direct costs ( 1,339 ) ( 421 ) ( 482 ) ( 156 ) ( 2,398 ) Direct contribution 381 242 7 53 683 Operating expenses and indirect costs of net revenues ( 426 ) Income from operations 257 Other income (expenses): Interest income and other financial gains 49 Interest expense and other financial losses ( 131 ) Foreign currency losses, net ( 27 ) Net income before income tax expense $ 148 Three Months Ended June 30, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,451 $ 594 $ 428 $ 124 $ 2,597 Direct costs ( 1,198 ) ( 372 ) ( 363 ) ( 117 ) ( 2,050 ) Direct contribution 253 222 65 7 547 Operating expenses and indirect costs of net revenues ( 297 ) Income from operations 250 Other income (expenses): Interest income and other financial gains 46 Interest expense and other financial losses ( 73 ) Foreign currency losses, net ( 60 ) Net income before income tax expense $ 163 Three Months Ended June 30, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 951 $ 366 $ 259 $ 127 $ 1,703 Direct costs ( 721 ) ( 232 ) ( 261 ) ( 92 ) ( 1,306 ) Direct contribution 230 134 ( 2 ) 35 397 Operating expenses and indirect costs of net revenues ( 231 ) Income from operations 166 Other income (expenses): Interest income and other financial gains 24 Interest expense and other financial losses ( 40 ) Foreign currency losses, net ( 12 ) Net income before income tax expense $ 138 The following tables summarize net revenues per reporting segment, which have been disaggregated by similar products and services for the six and three-month periods ended June 30, 2022 and 2021 : Six Months Ended June 30, Brazil Argentina Mexico Other Countries Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In millions) Commerce services (a) $ 1,208 $ 978 $ 381 $ 266 $ 445 $ 332 $ 158 $ 146 $ 2,192 $ 1,722 Commerce products sales (b) 233 137 129 111 107 60 21 23 490 331 Total commerce revenues $ 1,441 $ 1,115 $ 510 $ 377 $ 552 $ 392 $ 179 $ 169 $ 2,682 $ 2,053 Fintech services (c) $ 702 $ 416 $ 391 $ 223 $ 59 $ 39 $ 54 $ 40 $ 1,206 $ 718 Credit revenues (d) 546 179 208 59 176 57 1 — 931 295 Fintech products sales (e) 14 10 3 4 5 1 4 — 26 15 Total fintech revenues $ 1,262 $ 605 $ 602 $ 286 $ 240 $ 97 $ 59 $ 40 $ 2,163 $ 1,028 Total net revenues $ 2,703 $ 1,720 $ 1,112 $ 663 $ 792 $ 489 $ 238 $ 209 $ 4,845 $ 3,081 Three Months Ended June 30, Brazil Argentina Mexico Other Countries Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In millions) Commerce services (a) $ 641 $ 545 $ 200 $ 148 $ 232 $ 171 $ 82 $ 89 $ 1,155 $ 953 Commerce products sales (b) 111 79 70 62 58 33 10 15 249 189 Total commerce revenues $ 752 $ 624 $ 270 $ 210 $ 290 $ 204 $ 92 $ 104 $ 1,404 $ 1,142 Fintech services (c) $ 384 $ 224 $ 202 $ 121 $ 34 $ 21 $ 28 $ 23 $ 648 $ 389 Credit revenues (d) 307 97 120 33 101 33 1 — 529 163 Fintech products sales (e) 8 6 2 2 3 1 3 — 16 9 Total fintech revenues $ 699 $ 327 $ 324 $ 156 $ 138 $ 55 $ 32 $ 23 $ 1,193 $ 561 Total net revenues $ 1,451 $ 951 $ 594 $ 366 $ 428 $ 259 $ 124 $ 127 $ 2,597 $ 1,703 (a) Includes final value fees paid by sellers derived from intermediation services and related shipping fees, classified fees derived from classified advertising services and ad sales. (b) Includes revenues from inventories sales and related shipping fees. (c) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company's payment solution, revenues as a result of offering installments for the payment to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets, Mercado Pago credit and debit card fees and insurtech fees. (d) Includes interest earned on loans and advances granted to merchants and consumers, and credit card transactions. (e) Includes sales of mobile point of sales devices. The following table summarizes the allocation of property and equipment, net based on geography: June 30, December 31, 2022 2021 (In millions) US property and equipment, net $ 1 $ 1 Other countries Argentina 183 174 Brazil 486 395 Mexico 188 176 Other countries 74 61 $ 931 $ 806 Total property and equipment, net $ 932 $ 807 The following table summarizes the allocation of the goodwill and intangible assets based on geography: June 30, December 31, 2022 2021 (In millions) US intangible assets $ 10 $ 21 Other countries goodwill and intangible assets Argentina 15 16 Brazil 63 60 Mexico 42 41 Chile 40 45 Other countries 10 10 $ 170 $ 172 Total goodwill and intangible assets $ 180 $ 193 |
Fair Value Measurement Of Asset
Fair Value Measurement Of Assets And Liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 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 $ 321 $ 321 $ — $ — $ 1,079 $ 1,079 $ — $ — Sovereign Debt Securities (1) — — — — 16 16 — — Restricted Cash and cash equivalents: Money Market Funds 207 207 — — 210 210 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 135 135 — — 296 296 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 748 748 — — 602 602 — — Sovereign Debt Securities (1) (2) 739 739 — — 228 228 — — Corporate Debt Securities 55 55 — — — — — — Other Assets: Derivative Instruments 6 — 6 — 17 — — 17 Total Financial Assets $ 2,211 $ 2,205 $ 6 $ — $ 2,448 $ 2,431 $ — $ 17 Liabilities: Contingent considerations $ 9 $ — $ — $ 9 $ 9 $ — $ — $ 9 Long-term retention plan 28 — 28 — 103 — 103 — Derivative Instruments 21 — 21 — 6 — — 6 Total Financial Liabilities $ 58 $ — $ 49 $ 9 $ 118 $ — $ 103 $ 15 (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.) (2) As of June 30, 2022 and December 31, 2021 includes $ 15 million and $ 13 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 4 - Cash, cash equivalents, restricted cash and cash equivalents and investments.) As of June 30, 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, f air value of contingent considerations is 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). The following tables summarize the reconciliation of the financial assets and liabilities measured at fair value using Level 3 inputs as of June 30, 2022 and December 31, 2021: Balance as of December 31, 2021 Net Additions Settlements Foreign Currency Translation Gain (Losses) in Other Comprehensive Income Gain (Losses) on Income Statement Transfers out of level 3 Balance as of June 30, 2022 Derivative Instruments, net $ 11 $ 2 $ 7 $ 2 $ ( 15 ) $ ( 22 ) $ 15 $ — Contingent Considerations 9 — — — — — — 9 Total $ 20 $ 2 $ 7 $ 2 $ ( 15 ) $ ( 22 ) $ 15 $ 9 Balance as of December 31, 2020 Net Additions Settlements Foreign Currency Translation Gain (Losses) in Other Comprehensive Income Gain (Losses) on Income Statement Transfers out of level 3 Balance as of December 31, 2021 Derivative Instruments, net $ ( 14 ) $ 3 $ 14 $ ( 3 ) $ 11 $ — $ — $ 11 Contingent Considerations 5 4 — — — — — 9 Total $ ( 9 ) $ 7 $ 14 $ ( 3 ) $ 11 $ — $ — $ 20 As of June 30, 2022 and December 31, 2021, the carrying value of the Company’s financial assets (except for loans receivable) and liabilities (except for the 2028 Notes) measured at amortized cost approximated their fair value mainly because of their short-term maturity. These assets and liabilities included cash and cash equivalents, restricted cash and cash equivalents and short-term investments (excluding money markets funds and debt securities), accounts receivable, credit card receivables and other means of payment, funds payable to customers, amounts payable due to credit and debit card transactions, other assets (excluding derivative instruments), accounts payable, salaries and social security payable (excluding variable LTRP), provisions and other liabilities (excluding contingent considerations and derivative instruments). If these financial instruments were measured at fair value in the financial statements, they would be classified as Level 2. On the other hand, as of June 30, 2022 and December 31, 2021, the estimated fair value of the loans receivables, which is based on Level 3 inputs, is $ 1,934 million and $ 1,260 million, respectively, and were determined based on Company’s assumptions. As of June 30, 2022 and December 31, 2021, the estimated fair value of the 2028 Notes, which is based on Level 2 inputs, is $ 305 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 for those financial assets and liabilities of the Company measured at amortized cost as of June 30, 2022 and December 31, 2021: Balances as of Fair Value as of Balances as of Fair Value as of June 30, June 30, December 31, December 31, 2022 2022 2021 2021 (In millions) Assets Time Deposits $ 536 $ 536 $ 16 $ 16 Accounts receivable, net 102 102 98 98 Credit Card receivables and other means of payment, net 2,501 2,501 1,839 1,839 Loans receivable, net 1,845 1,934 1,260 1,260 Other assets 550 550 458 458 Total Assets $ 5,534 $ 5,623 $ 3,671 $ 3,671 Liabilities Accounts payable and accrued expenses $ 1,131 $ 1,131 $ 1,036 $ 1,036 Funds payable to customers 2,528 2,528 2,393 2,393 Amounts payable due to credit and debit card transactions 437 437 341 341 Salaries and social security payable 249 249 230 230 Loans payable and other financial liabilities (*) 4,440 4,307 3,518 3,534 Other liabilities 117 117 117 117 Total Liabilities $ 8,902 $ 8,769 $ 7,635 $ 7,651 (*) The fair value of the 2028 Notes (including the conversion option) is disclosed in Note 11. As of June 30, 2022, the cost and the estimated fair value of the Company’s investment in corporate debt securities classified as available for sale were $ 55 million, all with an effective maturity of one year or less. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 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 June 30, 2022 , the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $ 26 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 June 30, 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 $ 219 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. 4 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 $ 9 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, 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, aimed at preventing that the Brazilian tax authorities demand payments of the 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 . From April to June 2022, the Brazilian subsidiary Mercado Envios Serviços de Logística Ltda. also filed writs of mandamus to 3 Federation Units (São Paulo, Santa Catarina e Bahia), for the purpose of preventing the Brazilian tax authorities from demanding payment of the DIFAL over their respective fixed assets. 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 . Exclusion of ICMS tax benefits from IRPJ and CSLL tax base The Company has ICMS tax incentives granted by the State of Minas Gerais, through a special regime signed with the state by means of a term of agreement, which are aimed at implementing and expanding business in that state. The Company accounted for the tax benefit within cost of net revenues for $ 17 million and $ 8 million for the six and three-month periods ended June 30, 2022, respectively ( no impact in the same periods of the preceding year). On November 9, 2021 the Company filed a writ of mandamus which claimed the exclusion of the amounts relating to the ICMS tax benefits granted by the State of Minas Gerais through the special regime from the tax base of the Corporate Income Tax (IRPJ) and of the Social Contribution on Net Profits (CSLL). On January 31, 2022, a decision was rendered granting the injunction requested in order not to include the amounts of tax benefits granted by the State of Minas Gerais in the tax base of IRPJ and CSLL, without, however, ruling on the requirements set forth in article 30 of Law 12.973/14 and article 38 of Decree-Law 1577/98. A motion for clarification was filed against this decision, which was accepted in order to include in the preliminary injunction the lack of compliance with such requirements. On April 12, 2022, the Office of Attorney-General of the National Treasury manifested itself in the records informing that it had not filed an appeal against the decision that granted the preliminary injunction. The Company is currently waiting for the judicial decision. 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 BPP 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 June 30, 2022 and December 31, 2021, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $ 3,301 million and $ 2,964 million, respectively, for which the Company recorded a provision of $ 5 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 June 30, 2022, the Company had paid $ 94 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 June 30, 2022, the Company had paid $ 18 million in relation thereto. In connection with the closing of MELI Kaszek Pioneer Corp (“MEKA”)’s initial public offering on October 1, 2021, MEKA (a special purpose acquisition company sponsored by MELI Kaszek Pioneer Sponsor LLC (the “Sponsor”), which is a joint venture between Company’s subsidiary MELI Capital Ventures LLC and Kaszek) entered into a forward purchase agreement with the Sponsor, pursuant to which the Sponsor committed to purchase from MEKA 5 million Class A ordinary shares at a price of $ 10 per share in a private placement to close substantially concurrently with the consummation of MEKA’s initial business combination. On April 8, 2022, the Company signed a 10 -year agreement with Gol Linhas Aereas S.A. under which the Company is committed to contract a minimum amount of air logistics services for a total annual cost of $ 43 million. According to the agreement, Gol Linhas Aereas S.A. will provide logistics services in Brazil to Mercado Envios through six dedicated aircrafts. |
Long Term Retention Plan
Long Term Retention Plan | 6 Months Ended |
Jun. 30, 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 six and three-month periods ended June 30, 2022 and 2021, which are payable in cash according to the decisions made by the Board of Directors: Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 (In millions) (In millions) LTRP 2016 $ — $ 1 $ — $ 2 LTRP 2017 ( 4 ) 2 ( 3 ) 3 LTRP 2018 ( 3 ) 2 ( 3 ) 1 LTRP 2019 7 15 1 7 LTRP 2020 9 18 2 8 LTRP 2021 11 13 3 7 LTRP 2022 15 — 5 — Total LTRP $ 35 $ 51 $ 5 $ 28 |
Loans Payable And Other Financi
Loans Payable And Other Financial Liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021: Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity June 30, 2022 December 31, 2021 (In millions) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 10.18 % July - December 2022 $ 129 $ 112 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % July 2022 60 60 Brazilian Subsidiary US Dollar Fixed 1.30 % December 2022 50 50 Brazilian Subsidiary US Dollar Fixed 1.70 % November 2022 51 50 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 - 3.50 % July 2022 - June 2023 71 66 Mexican Subsidiary Mexican Peso Fixed 9.48 % July 2022 - June 2023 40 — Uruguayan Subsidiary Uruguayan Pesos Fixed 9.50 % July - December 2022 27 23 Colombian Subsidiary Colombian Pesos Fixed 8.62 % August - December 2022 18 16 Chilean Subsidiary Chilean Pesos Fixed 9.89 % July - November 2022 14 — Chilean Subsidiary Chilean Pesos Fixed 2.46 % July 2022 - June 2023 1 1 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 42.72 % July 2022 44 44 Argentine Subsidiary Argentine Pesos Fixed 43.78 % July 2022 37 25 Mexican Subsidiary Mexican Peso Fixed 9.85 % July 2022 - June 2023 7 4 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 10.10 % July 2022 29 27 Argentine Subsidiary Argentine Pesos Fixed 34.06 % July 2022 68 115 Brazilian Subsidiary Brazilian Reais — — % — — 4 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable IPCA + 5.25 - 7.15 % February - May 2023 261 — Brazilian Subsidiary Brazilian Reais Variable 98 % to 150 % of CDI July 2022 - June 2023 475 518 Brazilian Subsidiary Brazilian Reais Fixed 7.95 - 14.41 % July 2022 - June 2023 132 41 Brazilian Subsidiary Brazilian Reais Variable 106 % to 107.6 % of CDI July - September 2022 42 23 2028 Notes 3 3 2026 Sustainability Notes 4 4 2031 Notes 10 10 Finance lease obligations 12 10 Collateralized debt 336 77 Other lines of credit 4 2 $ 1,925 $ 1,285 Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity June 30, 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 105 92 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 104.5 % to 116 % of CDI July 2023 - June 2024 17 3 Finance lease obligations 37 36 Collateralized debt 765 674 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % July 2023 - April 2025 3 4 Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 4 4 Mexican Subsidiary Mexican Peso Variable TIIE + 3.20 - 3.50 % July 2023 - June 2027 31 — Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 9.85 % July 2023 - July 2027 27 17 $ 2,515 $ 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 pays 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 June 30, 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 six-month period ended June 30, 2022, 7 Notes were requested for conversion, for a total principal amount of $ 7 thousand. The determination of whether or not the Notes are convertible must be performed on a quarterly basis. The Company reconfirmed during the second 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. 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 $ 717 million and $ 1,367 million as of June 30, 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 June 30, 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 $ 636.87 closing price of the Company’s common stock on June 30, 2022 , the if-converted value of the 2028 Notes exceeded their principal amount by $ 192 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 México S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre 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 June 30, 2022, no amounts have been borrowed under the facility. |
Securitization Transactions
Securitization Transactions | 6 Months Ended |
Jun. 30, 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”). 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 generally precluded from recording the transfers of assets in securitization transactions as sales or is required to consolidate the SPE. The Company securitizes certain credit card receivables related to users’ purchases through Argentine and Chilean SPEs. Under the SPE contracts, the Company has determined that it has no obligation to absorb losses or the right to receive benefits of the SPEs 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 vehicles, its assets, liabilities and related results are not consolidated in the Company’s financial statements. Additionally, the Company securitizes certain credit card receivables related to users’ purchases through Brazilian SPEs. Under the SPE contracts, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicles, 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 for 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 under securitization transactions, as of June 30, 2022: SPEs Collateralized debt as of June 30, 2022 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 153 CDI + 2.50 % Brazilian Reais May 2025 Fundo de Investimento Em DireitosCreditórios Arandu 191 CDI + 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 21 CDI + 3.50 % Brazilian Reais August 2023 Olimpia Fundo de Investimento Em Direitos Creditórios 96 CDI + 1.25 % Brazilian Reais November 2024 Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados 216 CDI + 1.90 % Brazilian Reais May 2028 Mercado Crédito XI 2 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo VI 4 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Mercado Crédito Consumo VII 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos October 2022 Mercado Crédito Consumo VIII 14 Badlar rates plus 200 basis points with a min 30 % and a max 50 % Argentine Pesos February 2023 Mercado Crédito Consumo IX 19 Badlar rates plus 200 basis points with a min 30 % and a max 52 % Argentine Pesos May 2023 Mercado Crédito Consumo X (*) 18 Badlar rates plus 200 basis points with a min 35 % and a max 62 % Argentine Pesos June 2023 Mercado Crédito Consumo XI (*) 15 Badlar rates plus 200 basis points with a min 35 % and a max 63 % Argentine Pesos August 2023 Mercado Crédito XII 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos November 2022 Mercado Crédito XIII 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos April 2023 Mercado Crédito XIV 18 Badlar rates plus 200 basis points with a min 30 % and a max 48 % Argentine Pesos March 2023 Mercado Crédito XV 19 Badlar rates plus 200 basis points with a min 30 % and a max 56 % Argentine Pesos August 2023 Fideicomiso de administración y fuente de pago CIB/3756 148 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 143 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 1,101 (*) As of June 30, 2022, Loans payables owned by these trusts were obtained through private placements. Mercado Crédito Consumo X trust made a public bond offering in Argentine stock market on July 22, 2022. This secured debt is issued by the SPEs and includes collateralized securities used to fund the Company’s Fintech 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 June 30, 2022 and December 31, 2021 as follows: June 30, December 31, 2022 2021 Assets (In millions) Current assets: Restricted cash and cash equivalents $ 310 $ 282 Credit card receivables and other means of payments, net 326 278 Loans receivable, net 968 608 Total current assets 1,604 1,168 Non-current assets: Long-term investments 15 13 Loans receivable, net 35 45 Total non-current assets 50 58 Total assets $ 1,654 $ 1,226 Liabilities Current liabilities: Accounts payable and accrued expenses $ 6 $ 1 Loans payable and other financial liabilities 336 77 Total current liabilities 342 78 Non-current liabilities: Loans payable and other financial liabilities 765 674 Total non-current liabilities 765 674 Total liabilities $ 1,107 $ 752 |
Leases
Leases | 6 Months Ended |
Jun. 30, 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: June 30, December 31, 2022 2021 Operating Leases (In millions) Operating lease right-of-use assets $ 525 $ 461 Operating lease liabilities $ 528 $ 464 Finance Leases Property and equipment, at cost 79 68 Accumulated depreciation ( 21 ) ( 14 ) Property and equipment, net $ 58 $ 54 Loans payable and other financial liabilities $ 49 $ 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 June 30, 2022: Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 9 % Finance leases 16 % (*) Includes discount rates of leases in local currency and U.S. dollar . The components of lease expense were as follows: Six Months Ended June 30, 2022 2021 (In millions) Operating lease cost $ 59 $ 34 Finance lease cost: Depreciation of property and equipment 8 4 Interest on lease liabilities 4 2 Total finance lease cost $ 12 $ 6 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: (In millions) Operating cash flows from operating leases $ 54 $ 32 Financing cash flows from finance leases 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 115 $ 110 Finance leases 7 17 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 June 30, 2022 Operating Leases Finance Leases (In millions) One year or less $ 121 $ 19 One year to two years 117 19 Two years to three years 110 15 Three years to four years 92 7 Four years to five years 63 5 Thereafter 183 — Total lease payments $ 686 $ 65 Less imputed interest ( 158 ) ( 16 ) Total $ 528 $ 49 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 14. Derivative instruments Cash Flow Hedge As of June 30, 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 June 30, 2022, the Company estimated that the whole amount of net derivative gains or losses 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 within the next 12 months. 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 June 30, 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 June 30, 2022, the Company entered into swap contracts to hedge the interest rate fluctuation of its financial debt related to its credit card receivables 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 June 30, 2022 December 31, 2021 (In millions) Designated as hedging instrument Foreign exchange contracts $ 82 $ 89 Interest rate contracts $ 228 $ — Cross currency swap contracts $ 96 $ 94 Not designated as hedging instrument Foreign exchange contracts $ 82 $ — Interest rate contracts $ 345 $ 249 Cross currency swap contracts $ 160 $ 160 Derivative Instrument Contracts The fair values of the Company’s outstanding derivative instruments as of June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Balance sheet location 2022 2021 (In millions) Derivatives Foreign exchange contracts not designated as hedging instruments Other current Assets $ 2 $ — Interest rate contracts designated as cash flow hedges Other current Assets 1 — Cross currency swap contracts designated as net investment hedge Other non-current Assets 1 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 1 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 12 5 Cross currency swap contracts designated as net investment hedge Other non-current Liabilities 3 — Interest rate contracts designated as cash flow hedges Other current Liabilities 2 — Foreign exchange contracts designated as cash flow hedges Other current Liabilities 4 1 The effects of derivative contracts on the unaudited interim condensed consolidated statement of comprehensive income as of June 30, 2022 were as follows: Amount of Amount of loss reclassified December 31, gains recognized from accumulated June 30, 2021 in other comprehensive loss other comprehensive loss 2022 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1 $ ( 9 ) $ 4 $ ( 4 ) Interest Swap Contracts designated as cash flow hedges — ( 6 ) 1 ( 5 ) Cross currency swap contract designated as net investment hedge 7 ( 9 ) 4 2 8 ( 24 ) 9 ( 7 ) The effects of derivative contracts not designated as hedging instruments on the unaudited interim condensed consolidated statements of income for the six and three-month periods ended June 30, 2022 and 2021 were as follows: Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 (In millions) (In millions) Foreign exchange contracts not designated as hedging instruments recognized in foreign exchange losses, net $ — $ ( 11 ) $ 5 $ ( 30 ) Currency Swap contracts not designated as hedging instruments recognized in foreign exchange losses, net ( 22 ) — 10 — |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2022 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 15. Share repurchase program 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, 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 June 30, 2022, the Company had acquired 208,577 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 foreign currency losses of $ 63 million and $ 31 million for the six-month periods ended June 30, 2022 and 2021 respectively, while foreign currency losses for the three-month periods ended June 30, 2022 and 2021 amounted to $ 28 million and $ 13 million, respectively. |
Fintech Regulations
Fintech Regulations | 6 Months Ended |
Jun. 30, 2022 | |
Fintech Regulations [Abstract] | |
Fintech Regulations | 16. Fintech Regulations Regulation issued by Central Bank of Argentina (“CBA”) 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 June 30, 2022, in accordance with the regulation, the Company held customer’s funds for the amount of $ 415 million representing the total amount of funds in payment accounts of customers, payable to them on demand. 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 the 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, the Company 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. 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 June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, in accordance with the regulation, the Company held $ 883 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 June 30, 2022, in accordance with the regulations, the Chilean subsidiaries held $ 40 million as restricted cash related to liquidity reserves. Mexican subsidiary regulated by National Banking and Securities Commission 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 National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, or the "CNBV") to operate as an Electronic Payment Institution (Institución de Fondos de Pago Electrónico or “IFPE”, as referred to by the Financial Technology Institutions Act) which enables that entity to issue, manage, redeem and make electronic transfers of money on behalf of its clients, through computer applications, interfaces, web sites or any other means of electronic or digital communication. MercadoLibre, S.A. de C.V. Institución de Fondos de Pago Electrónico thus became a regulated financial entity, effective on July 1, 2022, and is subject to the supervision and jurisdiction of the relevant Mexican financial regulators, including but not limited to the CNBV and the Central Bank. Amongst the regulatory obligations to which Electronic Payment Institutions are subject, the following are noteworthy: a) maintain minimum capital requirements, b) maintain sufficient reserves in high-quality liquid assets (e.g. cash, treasury bills, etc.), so as to be able to redeem, on par, the funds held on behalf of the clients, c) maintenance of compliance, anti-money laundering and countering of terrorism financing, d) development and maintenance of sound cybersecurity and information security policies, including but not limited to the performance of recurrent vulnerability tests and the deployment of strict infrastructure controls. |
Advisory Agreement And Shares G
Advisory Agreement And Shares Granted | 6 Months Ended |
Jun. 30, 2022 | |
Advisory Agreement And Shares Granted [Abstract] | |
Advisory Agreement And Shares Granted | 17. Advisory Agreement and Shares granted 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 the Company 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 the Company awarded 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 $ 1,101 million and $ 978 million as of June 30, 2022 and December 31, 2021, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of June 30, 2022 and December 31, 2021. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income and equity for the six and three-month periods ended June 30, 2022 and 2021 and statements of cash flows for the six-month periods ended June 30, 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. Certain comparative figures of these interim condensed consolidated financial statements were modified to provide more detailed disclosures. The Company discloses the provision for doubtful accounts as a separate line item of its operating expenses in the interim condensed consolidated statements of income. The provision for doubtful accounts amounts to $ 557 million and $ 303 million for the six and three-month periods ended June 30, 2022, and $ 166 million and $ 82 million for the six and three-month periods ended June 30, 2021. This change has not impacted the total amount of net income and total equity. 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 six-month period ended June 30, 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. The aggregate gain included in net revenues arising from financing transactions, net of the costs recognized on sale of credit card receivables, is $ 490 million and $ 263 million for the six and three-month periods ended June 30, 2022, and $ 281 million and $ 148 million for the six and three-month periods ended June 30, 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 accounts and chargebacks of $ 868 million and $ 474 million as of June 30, 2022 and December 31, 2021, respectively. The allowance for doubtful accounts with respect to the Company’s loans receivables amounts to $ 842 million and $ 435 million as of June 30, 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 months. Deferred revenue as of December 31, 2021 was $ 34 million, of which $ 21 million was recognized as revenue during the six-month period ended June 30, 2022. As of June 30, 2022, total deferred revenue was $ 29 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. |
Provision For Buyer Protection Program | Provision for buyer protection program The Company provides consumers with a buyer protection program (“BPP”) for all transactions completed through the Company’s online payment solution (“Mercado Pago”). The Company is exposed to losses under this program given that this program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. Provisions for BPP represent the Company’s estimate of probable losses based on its historical experience. The charge for the provision for BPP is recognized in sales and marketing expense line of the consolidated statement of income. |
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 period-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the period, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting 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 is the official exchange rate, which as of June 30, 2022 was 125.23 . 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 June 30, 2022 and December 31, 2021: June 30, December 31, 2022 2021 (In millions) Assets $ 2,488 $ 2,479 Liabilities 1,889 1,874 Net Assets $ 599 $ 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 $ 17 million and $ 2 million for the six and three-month periods ended June 30, 2022, respectively, and $ 33 million and $ 21 million for the six and three-month periods ended June 30, 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 has effect from 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 ( 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. were retroactive to January 1, 2020. As a result, the Company accounted for an income tax benefit of $ 12 million during the nine and three-month periods ended September 30, 2021, of which $ 8 million corresponded to the period ended December 31, 2020. Also, the Company recorded a social security benefit of $ 36 million during the nine and three-month periods ended September 30, 2021, of which $ 15 million corresponded to the period ended December 31, 2020. Given that the promotional regime establishes that exports of services by eligible companies are not subject to export duties, the Company recognized a gain of $ 24 million during the nine and three-month periods ended September 30, 2021, related to export duties accrued from January 2020 to August 2021 that were no longer required to be paid. During the six and three-month periods ended June 30, 2022, the Company accounted for an income tax benefit of $ 4 million and $ 3 million, respectively. The aggregate per share effect of the income tax benefit amounted to $ 0.08 and $ 0.06 for the six and three-month periods ended June 30, 2022, respectively. Furthermore, the Company recorded a social security benefit of $ 26 million and $ 11 million during the six and three-month periods ended June 30, 2022, respectively. Additionally, during the six and three-month periods ended June 30, 2022, the Company accrued a charge of $ 2 million and $ 1 million, respectively, to pay knowledge-based economy promotional law audit fees and FONPEC (“Fondo Fiduciario para la Promoción de la Economía del Conocimiento”) contribution. The Company’s consolidated effective tax rate for the six-month period ended June 30, 2022 compared to the same period in 2021 decreased from 77.0 % to 31.0 %, largely as a result of the one-time loss on debt extinguishment related to 2028 Notes repurchase recognized during the first quarter of 2021 which was considered a non-deductible expense and lower pre-tax losses in the Mexican segment that were not accounted for as deferred tax assets as a consequence of the valuation allowance. The Company’s consolidated effective tax rate for the three-month period ended June 30, 2022 compared to the same period in 2021 decreased from 50.9 % to 24.5 %, as a result of the combined effect of lower pre-tax losses in the Mexican segment that were not accounted for as deferred tax assets as a consequence of the valuation allowance and higher non-taxable pre-tax gains in the Brazilian segment. |
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 $ 12 million and $ 3 million for the investments as of June 30, 2022 and 2021, respectively. |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss The following tables set forth the Company’s accumulated other comprehensive loss as of June 30, 2022 and December 31, 2021 and summarize the changes in accumulated balances of other comprehensive income (loss) for the six months ended June 30, 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 ( 24 ) 38 5 19 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 9 — ( 2 ) 7 Net current period other comprehensive income (loss) ( 15 ) 38 3 26 Balances as of June 30, 2022 $ ( 7 ) $ ( 485 ) $ 3 $ ( 489 ) 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 $ ( 9 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 2 Income tax expense Total reclassifications for the period $ ( 7 ) 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, 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 loans receivables, 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 March 31, 2022, the SEC released the Staff Accounting Bulletin (SAB) No. 121. This SAB expresses views of the SEC’s 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 SEC’s staff view is 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 has assessed the SAB and based on the facts and information at this time does not believe it has impact on the Company’s financial statements. 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 additional paid in capital of $ 131 million and retained earnings of $ 34 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 June 30, 2022, the FASB issued ASU 2022-03 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered when measuring its fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years and should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The adoption of this standard is not expected to have a material impact on the Company’s financial statements. 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 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) | 6 Months Ended |
Jun. 30, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries | June 30, December 31, 2022 2021 (In millions) Assets $ 2,488 $ 2,479 Liabilities 1,889 1,874 Net Assets $ 599 $ 605 |
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 ( 24 ) 38 5 19 Amount of (gains) loss reclassified from accumulated other comprehensive income (loss) 9 — ( 2 ) 7 Net current period other comprehensive income (loss) ( 15 ) 38 3 26 Balances as of June 30, 2022 $ ( 7 ) $ ( 485 ) $ 3 $ ( 489 ) |
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 $ ( 9 ) Cost of net revenues and interest expense Estimated tax benefit on unrealized losses 2 Income tax expense Total reclassifications for the period $ ( 7 ) Total, net of income taxes |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Net Income Per Share [Abstract] | |
Net Income Per Share Of Common Stock | Six Months Ended June 30 Three Months Ended June 30 2022 2021 2022 2021 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Net income per common share $ 3.73 $ 3.73 $ 0.69 $ 0.69 $ 2.43 $ 2.43 $ 1.37 $ 1.37 Numerator (in millions): Net income $ 188 $ 188 $ 34 $ 34 $ 123 $ 123 $ 68 $ 68 Net income corresponding to common stock $ 188 $ 188 $ 34 $ 34 $ 123 $ 123 $ 68 $ 68 Denominator: Weighted average of common stock outstanding for Basic earnings per share 50,386,519 — 49,844,823 — 50,364,529 — 49,822,272 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 50,386,519 — 49,844,823 — 50,364,529 — 49,822,272 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans Receivable, Net [Abstract] | |
Schedule Of Loans Receivable, Net | June 30, 2022 Loans receivable Allowance for doubtful accounts Loans receivable, net (In millions) On-line merchant $ 414 $ ( 105 ) $ 309 Consumer 1,472 ( 443 ) 1,029 In-store merchant 276 ( 123 ) 153 Credit Cards 525 ( 171 ) 354 Total $ 2,687 $ ( 842 ) $ 1,845 December 31, 2021 Loans receivable Allowance for doubtful accounts Loans receivable, net (In millions) On-line merchant $ 361 $ ( 79 ) $ 282 Consumer 851 ( 232 ) 619 In-store merchant 187 ( 76 ) 111 Credit Cards 296 ( 48 ) 248 Total $ 1,695 $ ( 435 ) $ 1,260 |
Schedule Of Credit Quality Analysis Of Loans Receivables | June 30, December 31, 2022 2021 (In millions) 1-30 days past due $ 164 $ 90 31-60 days past due 97 47 61 -90 days past due 93 37 91 -120 days past due 85 37 121 -150 days past due 86 31 151 -180 days past due 80 25 181 -210 days past due 59 24 211 -240 days past due 49 23 241 -270 days past due 39 21 271 -300 days past due 36 21 301 -330 days past due 30 30 331 -360 days past due 25 25 Total past due 843 411 To become due 1,844 1,284 Total $ 2,687 $ 1,695 |
Summary Of Allowance For Uncollectible Accounts Activity | June 30, 2022 On-line merchant Consumer In-store merchant Credit Cards Total (In millions) Balance at beginning of year $ 79 $ 232 $ 76 $ 48 $ 435 Charged/credited to Net Income 58 299 76 124 557 Charges/Utilized /Currency translation adjustments/Write-offs ( 32 ) ( 88 ) ( 29 ) ( 1 ) ( 150 ) Balance at end of period $ 105 $ 443 $ 123 $ 171 $ 842 June 30, 2021 On-line merchant Consumer In-store merchant Credit Cards Total (In millions) Balance at beginning of year $ 20 $ 45 $ 13 $ — $ 78 Charged/credited to Net Income 30 101 34 2 167 Charges/Utilized /Currency translation adjustments/Write-offs ( 2 ) ( 4 ) 1 ( 1 ) ( 6 ) Balance at end of period $ 48 $ 142 $ 48 $ 1 $ 239 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets [Abstract] | |
Composition Of Goodwill And Intangible Assets | June 30, December 31, 2022 2021 (In millions) Goodwill $ 149 $ 148 Intangible assets with indefinite lives - Trademarks 7 8 - Digital assets (1) 10 21 Amortizable intangible assets - Licenses and others 13 13 - Non-compete agreement 4 4 - Customer list 12 13 - Trademarks 8 7 - Hubs Network 4 3 - Others 3 3 Total intangible assets $ 61 $ 72 Accumulated amortization ( 30 ) ( 27 ) Total intangible assets, net $ 31 $ 45 (1) Digital assets are net of $ 20 million and $ 9 million of impairment losses as of June 30, 2022 and December 31, 2021. |
Changes In Carrying Amount Of Goodwill | Six Months Ended June 30, 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 3 — 1 ( 3 ) — — 1 Balance, end of the period $ 59 $ 10 $ 38 $ 34 $ 6 $ 2 $ 149 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 $ 3 For year ended 12/31/2023 5 For year ended 12/31/2024 2 For year ended 12/31/2025 1 Thereafter 3 $ 14 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Financial Performance Of Company's Reporting Segments | Six Months Ended June 30, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 2,703 $ 1,112 $ 792 $ 238 $ 4,845 Direct costs ( 2,263 ) ( 692 ) ( 691 ) ( 227 ) ( 3,873 ) Direct contribution 440 420 101 11 972 Operating expenses and indirect costs of net revenues ( 583 ) Income from operations 389 Other income (expenses): Interest income and other financial gains 77 Interest expense and other financial losses ( 129 ) Foreign currency losses, net ( 63 ) Net income before income tax expense $ 274 Six Months Ended June 30, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,720 $ 663 $ 489 $ 209 $ 3,081 Direct costs ( 1,339 ) ( 421 ) ( 482 ) ( 156 ) ( 2,398 ) Direct contribution 381 242 7 53 683 Operating expenses and indirect costs of net revenues ( 426 ) Income from operations 257 Other income (expenses): Interest income and other financial gains 49 Interest expense and other financial losses ( 131 ) Foreign currency losses, net ( 27 ) Net income before income tax expense $ 148 Three Months Ended June 30, 2022 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 1,451 $ 594 $ 428 $ 124 $ 2,597 Direct costs ( 1,198 ) ( 372 ) ( 363 ) ( 117 ) ( 2,050 ) Direct contribution 253 222 65 7 547 Operating expenses and indirect costs of net revenues ( 297 ) Income from operations 250 Other income (expenses): Interest income and other financial gains 46 Interest expense and other financial losses ( 73 ) Foreign currency losses, net ( 60 ) Net income before income tax expense $ 163 Three Months Ended June 30, 2021 Brazil Argentina Mexico Other Countries Total (In millions) Net revenues $ 951 $ 366 $ 259 $ 127 $ 1,703 Direct costs ( 721 ) ( 232 ) ( 261 ) ( 92 ) ( 1,306 ) Direct contribution 230 134 ( 2 ) 35 397 Operating expenses and indirect costs of net revenues ( 231 ) Income from operations 166 Other income (expenses): Interest income and other financial gains 24 Interest expense and other financial losses ( 40 ) Foreign currency losses, net ( 12 ) Net income before income tax expense $ 138 |
Consolidated Net Revenues By Similar Products And Services | Six Months Ended June 30, Brazil Argentina Mexico Other Countries Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In millions) Commerce services (a) $ 1,208 $ 978 $ 381 $ 266 $ 445 $ 332 $ 158 $ 146 $ 2,192 $ 1,722 Commerce products sales (b) 233 137 129 111 107 60 21 23 490 331 Total commerce revenues $ 1,441 $ 1,115 $ 510 $ 377 $ 552 $ 392 $ 179 $ 169 $ 2,682 $ 2,053 Fintech services (c) $ 702 $ 416 $ 391 $ 223 $ 59 $ 39 $ 54 $ 40 $ 1,206 $ 718 Credit revenues (d) 546 179 208 59 176 57 1 — 931 295 Fintech products sales (e) 14 10 3 4 5 1 4 — 26 15 Total fintech revenues $ 1,262 $ 605 $ 602 $ 286 $ 240 $ 97 $ 59 $ 40 $ 2,163 $ 1,028 Total net revenues $ 2,703 $ 1,720 $ 1,112 $ 663 $ 792 $ 489 $ 238 $ 209 $ 4,845 $ 3,081 Three Months Ended June 30, Brazil Argentina Mexico Other Countries Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In millions) Commerce services (a) $ 641 $ 545 $ 200 $ 148 $ 232 $ 171 $ 82 $ 89 $ 1,155 $ 953 Commerce products sales (b) 111 79 70 62 58 33 10 15 249 189 Total commerce revenues $ 752 $ 624 $ 270 $ 210 $ 290 $ 204 $ 92 $ 104 $ 1,404 $ 1,142 Fintech services (c) $ 384 $ 224 $ 202 $ 121 $ 34 $ 21 $ 28 $ 23 $ 648 $ 389 Credit revenues (d) 307 97 120 33 101 33 1 — 529 163 Fintech products sales (e) 8 6 2 2 3 1 3 — 16 9 Total fintech revenues $ 699 $ 327 $ 324 $ 156 $ 138 $ 55 $ 32 $ 23 $ 1,193 $ 561 Total net revenues $ 1,451 $ 951 $ 594 $ 366 $ 428 $ 259 $ 124 $ 127 $ 2,597 $ 1,703 (a) Includes final value fees paid by sellers derived from intermediation services and related shipping fees, classified fees derived from classified advertising services and ad sales. (b) Includes revenues from inventories sales and related shipping fees. (c) Includes revenues from commissions the Company charges for transactions off-platform derived from use of the Company's payment solution, revenues as a result of offering installments for the payment to its Mercado Pago users, either when the Company finances the transactions directly or when the Company sells the corresponding financial assets, Mercado Pago credit and debit card fees and insurtech fees. (d) Includes interest earned on loans and advances granted to merchants and consumers, and credit card transactions. (e) Includes sales of mobile point of sales devices. |
Allocation Of Property And Equipment Based On Geography | June 30, December 31, 2022 2021 (In millions) US property and equipment, net $ 1 $ 1 Other countries Argentina 183 174 Brazil 486 395 Mexico 188 176 Other countries 74 61 $ 931 $ 806 Total property and equipment, net $ 932 $ 807 |
Allocation Of Goodwill And Intangible Assets Based On Geography | June 30, December 31, 2022 2021 (In millions) US intangible assets $ 10 $ 21 Other countries goodwill and intangible assets Argentina 15 16 Brazil 63 60 Mexico 42 41 Chile 40 45 Other countries 10 10 $ 170 $ 172 Total goodwill and intangible assets $ 180 $ 193 |
Fair Value Measurement Of Ass_2
Fair Value Measurement Of Assets And Liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 321 $ 321 $ — $ — $ 1,079 $ 1,079 $ — $ — Sovereign Debt Securities (1) — — — — 16 16 — — Restricted Cash and cash equivalents: Money Market Funds 207 207 — — 210 210 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 135 135 — — 296 296 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) 748 748 — — 602 602 — — Sovereign Debt Securities (1) (2) 739 739 — — 228 228 — — Corporate Debt Securities 55 55 — — — — — — Other Assets: Derivative Instruments 6 — 6 — 17 — — 17 Total Financial Assets $ 2,211 $ 2,205 $ 6 $ — $ 2,448 $ 2,431 $ — $ 17 Liabilities: Contingent considerations $ 9 $ — $ — $ 9 $ 9 $ — $ — $ 9 Long-term retention plan 28 — 28 — 103 — 103 — Derivative Instruments 21 — 21 — 6 — — 6 Total Financial Liabilities $ 58 $ — $ 49 $ 9 $ 118 $ — $ 103 $ 15 (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.) (2) As of June 30, 2022 and December 31, 2021 includes $ 15 million and $ 13 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 4 - Cash, cash equivalents, restricted cash and cash equivalents and investments.) |
Summary Of Reconciliation Of Financial Liabilities Valuated At Fair Value | Balance as of December 31, 2021 Net Additions Settlements Foreign Currency Translation Gain (Losses) in Other Comprehensive Income Gain (Losses) on Income Statement Transfers out of level 3 Balance as of June 30, 2022 Derivative Instruments, net $ 11 $ 2 $ 7 $ 2 $ ( 15 ) $ ( 22 ) $ 15 $ — Contingent Considerations 9 — — — — — — 9 Total $ 20 $ 2 $ 7 $ 2 $ ( 15 ) $ ( 22 ) $ 15 $ 9 Balance as of December 31, 2020 Net Additions Settlements Foreign Currency Translation Gain (Losses) in Other Comprehensive Income Gain (Losses) on Income Statement Transfers out of level 3 Balance as of December 31, 2021 Derivative Instruments, net $ ( 14 ) $ 3 $ 14 $ ( 3 ) $ 11 $ — $ — $ 11 Contingent Considerations 5 4 — — — — — 9 Total $ ( 9 ) $ 7 $ 14 $ ( 3 ) $ 11 $ — $ — $ 20 |
Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost | Balances as of Fair Value as of Balances as of Fair Value as of June 30, June 30, December 31, December 31, 2022 2022 2021 2021 (In millions) Assets Time Deposits $ 536 $ 536 $ 16 $ 16 Accounts receivable, net 102 102 98 98 Credit Card receivables and other means of payment, net 2,501 2,501 1,839 1,839 Loans receivable, net 1,845 1,934 1,260 1,260 Other assets 550 550 458 458 Total Assets $ 5,534 $ 5,623 $ 3,671 $ 3,671 Liabilities Accounts payable and accrued expenses $ 1,131 $ 1,131 $ 1,036 $ 1,036 Funds payable to customers 2,528 2,528 2,393 2,393 Amounts payable due to credit and debit card transactions 437 437 341 341 Salaries and social security payable 249 249 230 230 Loans payable and other financial liabilities (*) 4,440 4,307 3,518 3,534 Other liabilities 117 117 117 117 Total Liabilities $ 8,902 $ 8,769 $ 7,635 $ 7,651 (*) The fair value of the 2028 Notes (including the conversion option) is disclosed in Note 11. |
Long Term Retention Plan (Table
Long Term Retention Plan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Program Accrued Compensation Expense | Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 (In millions) (In millions) LTRP 2016 $ — $ 1 $ — $ 2 LTRP 2017 ( 4 ) 2 ( 3 ) 3 LTRP 2018 ( 3 ) 2 ( 3 ) 1 LTRP 2019 7 15 1 7 LTRP 2020 9 18 2 8 LTRP 2021 11 13 3 7 LTRP 2022 15 — 5 — Total LTRP $ 35 $ 51 $ 5 $ 28 |
Loans Payable And Other Finan_2
Loans Payable And Other Financial Liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 December 31, 2021 (In millions) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 10.18 % July - December 2022 $ 129 $ 112 Brazilian Subsidiary US Dollar Variable LIBOR 3M + 0.7408 % July 2022 60 60 Brazilian Subsidiary US Dollar Fixed 1.30 % December 2022 50 50 Brazilian Subsidiary US Dollar Fixed 1.70 % November 2022 51 50 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 - 3.50 % July 2022 - June 2023 71 66 Mexican Subsidiary Mexican Peso Fixed 9.48 % July 2022 - June 2023 40 — Uruguayan Subsidiary Uruguayan Pesos Fixed 9.50 % July - December 2022 27 23 Colombian Subsidiary Colombian Pesos Fixed 8.62 % August - December 2022 18 16 Chilean Subsidiary Chilean Pesos Fixed 9.89 % July - November 2022 14 — Chilean Subsidiary Chilean Pesos Fixed 2.46 % July 2022 - June 2023 1 1 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 42.72 % July 2022 44 44 Argentine Subsidiary Argentine Pesos Fixed 43.78 % July 2022 37 25 Mexican Subsidiary Mexican Peso Fixed 9.85 % July 2022 - June 2023 7 4 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 10.10 % July 2022 29 27 Argentine Subsidiary Argentine Pesos Fixed 34.06 % July 2022 68 115 Brazilian Subsidiary Brazilian Reais — — % — — 4 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable IPCA + 5.25 - 7.15 % February - May 2023 261 — Brazilian Subsidiary Brazilian Reais Variable 98 % to 150 % of CDI July 2022 - June 2023 475 518 Brazilian Subsidiary Brazilian Reais Fixed 7.95 - 14.41 % July 2022 - June 2023 132 41 Brazilian Subsidiary Brazilian Reais Variable 106 % to 107.6 % of CDI July - September 2022 42 23 2028 Notes 3 3 2026 Sustainability Notes 4 4 2031 Notes 10 10 Finance lease obligations 12 10 Collateralized debt 336 77 Other lines of credit 4 2 $ 1,925 $ 1,285 Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity June 30, 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 105 92 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable 104.5 % to 116 % of CDI July 2023 - June 2024 17 3 Finance lease obligations 37 36 Collateralized debt 765 674 Loans from banks Chilean Subsidiary Chilean Pesos Fixed 2.46 % July 2023 - April 2025 3 4 Brazilian Subsidiary Brazilian Reais Variable TJLP + 0.8 % May 2024 - May 2031 4 4 Mexican Subsidiary Mexican Peso Variable TIIE + 3.20 - 3.50 % July 2023 - June 2027 31 — Secured lines of credit Mexican Subsidiary Mexican Peso Fixed 9.85 % July 2023 - July 2027 27 17 $ 2,515 $ 2,233 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securitization Transactions [Abstract] | |
Collateralized Debt | SPEs Collateralized debt as of June 30, 2022 Interest rate Currency Maturity Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 153 CDI + 2.50 % Brazilian Reais May 2025 Fundo de Investimento Em DireitosCreditórios Arandu 191 CDI + 1.75 % Brazilian Reais June 2023 Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado 21 CDI + 3.50 % Brazilian Reais August 2023 Olimpia Fundo de Investimento Em Direitos Creditórios 96 CDI + 1.25 % Brazilian Reais November 2024 Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados 216 CDI + 1.90 % Brazilian Reais May 2028 Mercado Crédito XI 2 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos September 2022 Mercado Crédito Consumo VI 4 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos August 2022 Mercado Crédito Consumo VII 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos October 2022 Mercado Crédito Consumo VIII 14 Badlar rates plus 200 basis points with a min 30 % and a max 50 % Argentine Pesos February 2023 Mercado Crédito Consumo IX 19 Badlar rates plus 200 basis points with a min 30 % and a max 52 % Argentine Pesos May 2023 Mercado Crédito Consumo X (*) 18 Badlar rates plus 200 basis points with a min 35 % and a max 62 % Argentine Pesos June 2023 Mercado Crédito Consumo XI (*) 15 Badlar rates plus 200 basis points with a min 35 % and a max 63 % Argentine Pesos August 2023 Mercado Crédito XII 6 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos November 2022 Mercado Crédito XIII 12 Badlar rates plus 200 basis points with a min 30 % and a max 46 % Argentine Pesos April 2023 Mercado Crédito XIV 18 Badlar rates plus 200 basis points with a min 30 % and a max 48 % Argentine Pesos March 2023 Mercado Crédito XV 19 Badlar rates plus 200 basis points with a min 30 % and a max 56 % Argentine Pesos August 2023 Fideicomiso de administración y fuente de pago CIB/3756 148 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 143 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.0 % Mexican Pesos April 2024 1,101 (*) As of June 30, 2022, Loans payables owned by these trusts were obtained through private placements. Mercado Crédito Consumo X trust made a public bond offering in Argentine stock market on July 22, 2022. |
Assets And Liabilities Of The Trust | June 30, December 31, 2022 2021 Assets (In millions) Current assets: Restricted cash and cash equivalents $ 310 $ 282 Credit card receivables and other means of payments, net 326 278 Loans receivable, net 968 608 Total current assets 1,604 1,168 Non-current assets: Long-term investments 15 13 Loans receivable, net 35 45 Total non-current assets 50 58 Total assets $ 1,654 $ 1,226 Liabilities Current liabilities: Accounts payable and accrued expenses $ 6 $ 1 Loans payable and other financial liabilities 336 77 Total current liabilities 342 78 Non-current liabilities: Loans payable and other financial liabilities 765 674 Total non-current liabilities 765 674 Total liabilities $ 1,107 $ 752 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | June 30, December 31, 2022 2021 Operating Leases (In millions) Operating lease right-of-use assets $ 525 $ 461 Operating lease liabilities $ 528 $ 464 Finance Leases Property and equipment, at cost 79 68 Accumulated depreciation ( 21 ) ( 14 ) Property and equipment, net $ 58 $ 54 Loans payable and other financial liabilities $ 49 $ 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 16 % (*) Includes discount rates of leases in local currency and U.S. dollar . |
Components Of Lease Expense | Six Months Ended June 30, 2022 2021 (In millions) Operating lease cost $ 59 $ 34 Finance lease cost: Depreciation of property and equipment 8 4 Interest on lease liabilities 4 2 Total finance lease cost $ 12 $ 6 |
Supplemental Cash Flow Information Related To Leases | Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: (In millions) Operating cash flows from operating leases $ 54 $ 32 Financing cash flows from finance leases 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 115 $ 110 Finance leases 7 17 |
Maturities Of Lease Liabilities | Period Ending June 30, 2022 Operating Leases Finance Leases (In millions) One year or less $ 121 $ 19 One year to two years 117 19 Two years to three years 110 15 Three years to four years 92 7 Four years to five years 63 5 Thereafter 183 — Total lease payments $ 686 $ 65 Less imputed interest ( 158 ) ( 16 ) Total $ 528 $ 49 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments [Abstract] | |
Summary Of Notional Amounts | Notional Amount as of Notional Amount as of June 30, 2022 December 31, 2021 (In millions) Designated as hedging instrument Foreign exchange contracts $ 82 $ 89 Interest rate contracts $ 228 $ — Cross currency swap contracts $ 96 $ 94 Not designated as hedging instrument Foreign exchange contracts $ 82 $ — Interest rate contracts $ 345 $ 249 Cross currency swap contracts $ 160 $ 160 |
Summary Of Outstanding Derivative Instruments | June 30, December 31, Balance sheet location 2022 2021 (In millions) Derivatives Foreign exchange contracts not designated as hedging instruments Other current Assets $ 2 $ — Interest rate contracts designated as cash flow hedges Other current Assets 1 — Cross currency swap contracts designated as net investment hedge Other non-current Assets 1 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 1 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 12 5 Cross currency swap contracts designated as net investment hedge Other non-current Liabilities 3 — Interest rate contracts designated as cash flow hedges Other current Liabilities 2 — Foreign exchange contracts designated as cash flow hedges Other current Liabilities 4 1 |
Effect Of Derivative Contracts On Comprehensive Income | Amount of Amount of loss reclassified December 31, gains recognized from accumulated June 30, 2021 in other comprehensive loss other comprehensive loss 2022 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1 $ ( 9 ) $ 4 $ ( 4 ) Interest Swap Contracts designated as cash flow hedges — ( 6 ) 1 ( 5 ) Cross currency swap contract designated as net investment hedge 7 ( 9 ) 4 2 8 ( 24 ) 9 ( 7 ) |
Effect Of Derivative Contracts On Income Statement | Six Months Ended June 30, Three Months Ended June 30, 2022 2021 2022 2021 (In millions) (In millions) Foreign exchange contracts not designated as hedging instruments recognized in foreign exchange losses, net $ — $ ( 11 ) $ 5 $ ( 30 ) Currency Swap contracts not designated as hedging instruments recognized in foreign exchange losses, net ( 22 ) — 10 — |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 25, 2020 | Jun. 10, 2019 | Jun. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||||
Provision for doubtful accounts | $ 303 | $ 82 | $ 557 | $ 166 | ||||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | 1,101 | 1,101 | $ 978 | |||||||
Allowance for doubtful accounts, loan receivables and chargebacks | 868 | 868 | 474 | |||||||
Deferred revenue | 29 | 29 | 34 | |||||||
Deferred revenue, revenue recognized | 21 | |||||||||
Recognized gains in interest income and other financial gains | 12 | 3 | ||||||||
Aggregate gain included in net revenues arising from financing transactions, net of the costs recognized on sale of credit card receivables, | 263 | 148 | 490 | 281 | ||||||
Income tax expense (benefit) | 39 | 70 | 85 | $ 114 | ||||||
Allowance for doubtful accounts, loan receivables and chargebacks | $ 842 | $ 842 | 435 | |||||||
Social security benefit | $ 15 | $ 36 | ||||||||
Gain recognized related to export duties accrued | 24 | 24 | ||||||||
2028 Convertible Senior Notes [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Effective tax rate | 31% | 77% | ||||||||
Argentina [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Foreign exchange rate | 125.23 | 125.23 | ||||||||
Argentina [Member] | Maximum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Non-transferable tax credit bond percent | 80% | |||||||||
Argentina [Member] | Minimum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Benchmark percent of derived revenue, enacted law | 70% | |||||||||
Non-transferable tax credit bond percent | 70% | |||||||||
Secretariat Of Knowledge Economy Resolution Issued [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Income tax expense (benefit) | $ 3 | $ 12 | $ (4) | $ 12 | $ 8 | |||||
Software development law audit fees | $ 1 | $ 2 | ||||||||
Aggregate per share effect of the Argentine tax holiday | $ / shares | $ 0.06 | $ 0.08 | ||||||||
Social security benefit | $ 11 | $ 26 | ||||||||
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 | |||||||||
Change In APIC [Member] | Accounting Standards Update 2020-06 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in accounting principle, accounting standards update, expected change | 131 | |||||||||
Change In Retained Earnings [Member] | Accounting Standards Update 2020-06 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in accounting principle, accounting standards update, expected change | $ 34 | |||||||||
Large [Member] | Argentina [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
New criteria benchmark percent, income tax burden | 20% | |||||||||
Medium-Sized [Member] | Argentina [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
New criteria benchmark percent, income tax burden | 40% | |||||||||
Micro And Small [Member] | Argentina [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
New criteria benchmark percent, income tax burden | 60% | |||||||||
Mexico Segment [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Valuation allowance in certain subsidiaries | $ 2 | $ 21 | 17 | $ 33 | ||||||
Effective tax rate | 24.50% | 50.90% | ||||||||
Increase in deferred tax valuation allowance | $ 2 | $ 21 | $ 17 | $ 33 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Assets, Liabilities And Net Assets Of Company's Argentinean Subsidiaries) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 11,447 | $ 10,101 |
Liabilities | 9,867 | 8,570 |
Argentinean Subsidiaries [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 2,488 | 2,479 |
Liabilities | 1,889 | 1,874 |
Net Assets | $ 599 | $ 605 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning Balance | $ 1,589 | $ (30) | $ 1,531 | $ 1,652 |
Net change in accumulated other comprehensive income (loss), net of income tax | (103) | 60 | 26 | 22 |
Ending Balance | 1,580 | 81 | 1,580 | 81 |
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 | (24) | |||
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), before tax | 9 | |||
Net current period other comprehensive income (loss), before tax | (15) | |||
Ending balance, before tax | (7) | (7) | ||
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 | 38 | |||
Net current period other comprehensive income (loss), before tax | 38 | |||
Ending balance, before tax | (485) | (485) | ||
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) | (2) | |||
Net current period other comprehensive income (loss), Estimated tax benefit (expense) | 3 | |||
Ending balance, Estimated tax benefit (expense) | 3 | 3 | ||
Beginning Balance | (386) | (506) | (515) | (468) |
Other comprehensive income (loss) before reclassifications, net tax | 19 | |||
Amount of (gains) loss reclassified from accumulated other comprehensive income (loss), net of tax | 7 | |||
Net change in accumulated other comprehensive income (loss), net of income tax | 26 | |||
Ending Balance | $ (489) | $ (446) | $ (489) | $ (446) |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Reclassifications Out Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of net revenues | $ 1,313 | $ 949 | $ 2,488 | $ 1,736 | ||
Income tax loss | (39) | (70) | (85) | (114) | ||
Net income | $ 123 | $ 65 | $ 68 | $ (34) | 188 | $ 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 | 2 | |||||
Net income | (7) | |||||
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 | $ (9) |
Net Income Per Share (Narrative
Net Income 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% | 2% |
Net Income Per Share (Net Incom
Net Income Per Share (Net Income Per Share Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income attributable to MercadoLibre, Inc. per common share | ||||||
Net income per common share, Basic | $ 2.43 | $ 1.37 | $ 3.73 | $ 0.69 | ||
Net income per common share, Diluted | $ 2.43 | $ 1.37 | $ 3.73 | $ 0.69 | ||
Numerator: | ||||||
Net income | $ 123 | $ 65 | $ 68 | $ (34) | $ 188 | $ 34 |
Net income corresponding to common stock, Basic | 123 | 68 | 188 | 34 | ||
Net income corresponding to common stock, Diluted | $ 123 | $ 68 | $ 188 | $ 34 | ||
Denominator: | ||||||
Weighted average of common stock outstanding for Basic earnings per share | 50,364,529 | 49,822,272 | 50,386,519 | 49,844,823 | ||
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 50,364,529 | 49,822,272 | 50,386,519 | 49,844,823 |
Cash, Cash Equivalents, Restr_2
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 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Cash and cash equivalents | $ 1,329 | $ 2,585 | |||||
Restricted cash and cash equivalents | 924 | 1,063 | |||||
Total cash, cash equivalents, restricted cash and cash equivalents | 2,253 | [1] | 3,648 | [1] | $ 1,431 | $ 2,508 | |
Short-term Investments | 1,645 | 810 | |||||
Long-term Investments | 456 | 89 | |||||
Time Deposits (Chilean Financial Market Commission) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 503 | 16 | |||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 748 | 602 | |||||
Sovereign Debt Securities [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 339 | 192 | |||||
Long-term Investments | 385 | 23 | |||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | [2] | 15 | 13 | ||||
Corporate Debt Securities [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Short-term Investments | 55 | ||||||
Equity Interest Held At Cost [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Long-term Investments | 56 | 53 | |||||
Securitization Transactions [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 310 | 282 | |||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 135 | 296 | |||||
Bank Account (Argentine Central Bank Regulation) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 415 | 449 | |||||
Bank Account (Chilean Financial Market Commission) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 7 | 21 | |||||
Time Deposits (Chilean Financial Market Commission) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | 33 | ||||||
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | |||||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||||
Restricted cash and cash equivalents | $ 24 | $ 15 | |||||
[1] Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow Investments from securitization transactions are restricted to the payment of amounts due to third-party investors. |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule Of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 2,687 | $ 1,695 |
Allowance for uncollectible accounts | (842) | (435) |
Loans receivables, net | 1,845 | 1,260 |
Credit Cards [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 525 | 296 |
Allowance for uncollectible accounts | (171) | (48) |
Loans receivables, net | 354 | 248 |
On-line Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 414 | 361 |
Allowance for uncollectible accounts | (105) | (79) |
Loans receivables, net | 309 | 282 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 1,472 | 851 |
Allowance for uncollectible accounts | (443) | (232) |
Loans receivables, net | 1,029 | 619 |
In-Store Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 276 | 187 |
Allowance for uncollectible accounts | (123) | (76) |
Loans receivables, net | $ 153 | $ 111 |
Loans Receivable, Net (Schedu_2
Loans Receivable, Net (Schedule Of Credit Quality Analysis Of Loans Receivables) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 2,687 | $ 1,695 |
1-30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 164 | 90 |
31-60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 97 | 47 |
61-90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 93 | 37 |
91 - 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 85 | 37 |
121 - 150 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 86 | 31 |
151 - 180 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 80 | 25 |
181 - 210 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 59 | 24 |
211 - 240 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49 | 23 |
241 - 270 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 39 | 21 |
271 - 300 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 36 | 21 |
301 - 330 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 30 | 30 |
331 - 360 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25 | 25 |
Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 843 | 411 |
To Become Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,844 | $ 1,284 |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary Of Allowance For Uncollectible Accounts Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance at beginning of year | $ 435 | $ 78 |
Charged/credited to Net Income | 557 | 167 |
Charges/Utilized/Currency translation adjustments/Write-offs | (150) | (6) |
Balance at end of period | 842 | 239 |
On-line Merchant [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance at beginning of year | 79 | 20 |
Charged/credited to Net Income | 58 | 30 |
Charges/Utilized/Currency translation adjustments/Write-offs | (32) | (2) |
Balance at end of period | 105 | 48 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance at beginning of year | 232 | 45 |
Charged/credited to Net Income | 299 | 101 |
Charges/Utilized/Currency translation adjustments/Write-offs | (88) | (4) |
Balance at end of period | 443 | 142 |
In-Store Merchant [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance at beginning of year | 76 | 13 |
Charged/credited to Net Income | 76 | 34 |
Charges/Utilized/Currency translation adjustments/Write-offs | (29) | 1 |
Balance at end of period | 123 | 48 |
Credit Cards [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance at beginning of year | 48 | |
Charged/credited to Net Income | 124 | 2 |
Charges/Utilized/Currency translation adjustments/Write-offs | (1) | (1) |
Balance at end of period | $ 171 | $ 1 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill And Intangible Assets [Abstract] | ||||
Aggregate amortization expense for intangible assets | $ 2 | $ 2 | $ 3 | $ 3 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Composition Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 149 | $ 148 | $ 85 | ||
Total intangible assets | 61 | 72 | |||
Accumulated amortization | (30) | (27) | |||
Total intangible assets, net | 31 | 45 | |||
Impairment of digital assets | 11 | $ 7 | |||
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 | 12 | 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 | 3 | 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] | 10 | 21 | ||
Impairment of digital assets | $ 20 | $ 9 | |||
[1] Digital assets are net of $ 20 million and $ 9 million of impairment losses as of June 30, 2022 and December 31, 2021. |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance, beginning of the year | $ 148 | $ 85 |
Business Acquisitions | 68 | |
Effect of exchange rates changes | 1 | (5) |
Balance, end of the year | 149 | 148 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 56 | 20 |
Business Acquisitions | 37 | |
Effect of exchange rates changes | 3 | (1) |
Balance, end of the year | 59 | 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 | (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) | (3) |
Balance, end of the year | 34 | 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 | Jun. 30, 2022 USD ($) |
Goodwill And Intangible Assets [Abstract] | |
For year ended 12/31/2022 | $ 3 |
For year ended 12/31/2023 | 5 |
For year ended 12/31/2024 | 2 |
For year ended 12/31/2025 | 1 |
Thereafter | 3 |
Total remaining amortization of intangible assets | $ 14 |
Segment Reporting (Financial Pe
Segment Reporting (Financial Performance Of Company's Reporting Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 2,597 | $ 1,703 | $ 4,845 | $ 3,081 | |
Direct costs | (2,050) | (1,306) | (3,873) | (2,398) | |
Direct contribution | 547 | 397 | 972 | 683 | |
Operating expenses and indirect costs of net revenues | (297) | (231) | (583) | (426) | |
Income from operations | 250 | 166 | 389 | 257 | |
Other income (expenses): | |||||
Interest income and other financial gains | 46 | 24 | 77 | 49 | |
Interest expense and other financial losses | [1] | (73) | (40) | (129) | (131) |
Foreign currency losses, net | (60) | (12) | (63) | (27) | |
Net income before income tax expense | 163 | 138 | 274 | 148 | |
Operating Segments [Member] | Brazil Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,451 | 951 | 2,703 | 1,720 | |
Direct costs | (1,198) | (721) | (2,263) | (1,339) | |
Direct contribution | 253 | 230 | 440 | 381 | |
Operating Segments [Member] | Argentina Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 594 | 366 | 1,112 | 663 | |
Direct costs | (372) | (232) | (692) | (421) | |
Direct contribution | 222 | 134 | 420 | 242 | |
Operating Segments [Member] | Mexico Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 428 | 259 | 792 | 489 | |
Direct costs | (363) | (261) | (691) | (482) | |
Direct contribution | 65 | (2) | 101 | 7 | |
Operating Segments [Member] | Other Countries Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 124 | 127 | 238 | 209 | |
Direct costs | (117) | (92) | (227) | (156) | |
Direct contribution | $ 7 | $ 35 | $ 11 | $ 53 | |
[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 (Consolidated
Segment Reporting (Consolidated Net Revenues By Similar Products And Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 2,597 | $ 1,703 | $ 4,845 | $ 3,081 |
Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,404 | 1,142 | 2,682 | 2,053 |
Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,193 | 561 | 2,163 | 1,028 |
Services [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,155 | 953 | 2,192 | 1,722 |
Services [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 648 | 389 | 1,206 | 718 |
Credit Revenues [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 529 | 163 | 931 | 295 |
Products Sales [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 249 | 189 | 490 | 331 |
Products Sales [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 16 | 9 | 26 | 15 |
Operating Segments [Member] | Argentina Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 594 | 366 | 1,112 | 663 |
Operating Segments [Member] | Argentina Segment [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 270 | 210 | 510 | 377 |
Operating Segments [Member] | Argentina Segment [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 324 | 156 | 602 | 286 |
Operating Segments [Member] | Argentina Segment [Member] | Services [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 200 | 148 | 381 | 266 |
Operating Segments [Member] | Argentina Segment [Member] | Services [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 202 | 121 | 391 | 223 |
Operating Segments [Member] | Argentina Segment [Member] | Credit Revenues [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 120 | 33 | 208 | 59 |
Operating Segments [Member] | Argentina Segment [Member] | Products Sales [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 70 | 62 | 129 | 111 |
Operating Segments [Member] | Argentina Segment [Member] | Products Sales [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 2 | 2 | 3 | 4 |
Operating Segments [Member] | Brazil Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,451 | 951 | 2,703 | 1,720 |
Operating Segments [Member] | Brazil Segment [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 752 | 624 | 1,441 | 1,115 |
Operating Segments [Member] | Brazil Segment [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 699 | 327 | 1,262 | 605 |
Operating Segments [Member] | Brazil Segment [Member] | Services [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 641 | 545 | 1,208 | 978 |
Operating Segments [Member] | Brazil Segment [Member] | Services [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 384 | 224 | 702 | 416 |
Operating Segments [Member] | Brazil Segment [Member] | Credit Revenues [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 307 | 97 | 546 | 179 |
Operating Segments [Member] | Brazil Segment [Member] | Products Sales [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 111 | 79 | 233 | 137 |
Operating Segments [Member] | Brazil Segment [Member] | Products Sales [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 8 | 6 | 14 | 10 |
Operating Segments [Member] | Mexico Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 428 | 259 | 792 | 489 |
Operating Segments [Member] | Mexico Segment [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 290 | 204 | 552 | 392 |
Operating Segments [Member] | Mexico Segment [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 138 | 55 | 240 | 97 |
Operating Segments [Member] | Mexico Segment [Member] | Services [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 232 | 171 | 445 | 332 |
Operating Segments [Member] | Mexico Segment [Member] | Services [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 34 | 21 | 59 | 39 |
Operating Segments [Member] | Mexico Segment [Member] | Credit Revenues [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 101 | 33 | 176 | 57 |
Operating Segments [Member] | Mexico Segment [Member] | Products Sales [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 58 | 33 | 107 | 60 |
Operating Segments [Member] | Mexico Segment [Member] | Products Sales [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 3 | 1 | 5 | 1 |
Operating Segments [Member] | Other Countries Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 124 | 127 | 238 | 209 |
Operating Segments [Member] | Other Countries Segment [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 92 | 104 | 179 | 169 |
Operating Segments [Member] | Other Countries Segment [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 32 | 23 | 59 | 40 |
Operating Segments [Member] | Other Countries Segment [Member] | Services [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 82 | 89 | 158 | 146 |
Operating Segments [Member] | Other Countries Segment [Member] | Services [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 28 | 23 | 54 | 40 |
Operating Segments [Member] | Other Countries Segment [Member] | Credit Revenues [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1 | 1 | ||
Operating Segments [Member] | Other Countries Segment [Member] | Products Sales [Member] | Commerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 10 | $ 15 | 21 | $ 23 |
Operating Segments [Member] | Other Countries Segment [Member] | Products Sales [Member] | Fintech [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 3 | $ 4 |
Segment Reporting (Allocation O
Segment Reporting (Allocation Of Property And Equipment Based On Geography) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 932 | $ 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 | 486 | 395 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 188 | 176 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 74 | 61 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 931 | $ 806 |
Segment Reporting (Allocation_2
Segment Reporting (Allocation Of Goodwill And Intangible Assets Based On Geography) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 180 | $ 193 |
US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 10 | 21 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 15 | 16 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 63 | 60 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 42 | 41 |
Chile [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 40 | 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 | $ 170 | $ 172 |
Fair Value Measurement Of Ass_3
Fair Value Measurement Of Assets And Liabilities (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Significant Other Observable Inputs (Level 2) [Member] | Loans Receivable, Net [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 1,934 | $ 1,260 |
Corporate Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 55 | |
Estimated Fair Value | 55 | |
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | $ 305 | |
Convertible Senior Notes [Member] | Loans Payable and Other Financial Liabilities [Member] | 2028 Convertible Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | $ 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) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term investments | $ 456,000 | $ 89,000 | |
Sovereign Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term investments | 385,000 | 23,000 | |
Securitization Transactions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term investments | [1] | 15,000 | 13,000 |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Financial Assets | 2,211 | 2,448 | |
Contingent considerations | 9 | 9 | |
Long-term retention plan | 28 | 103 | |
Derivative Instruments | 21 | 6 | |
Total Financial Liabilities | 58 | 118 | |
Fair Value, Measurements, Recurring [Member] | Derivative Instruments, Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 6 | 17 | |
Fair Value, Measurements, Recurring [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] | |||
Total Financial Assets | 2,205 | 2,431 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Financial Assets | 6 | ||
Long-term retention plan | 28 | 103 | |
Derivative Instruments | 21 | ||
Total Financial Liabilities | 49 | 103 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivative Instruments, Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 6 | ||
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Financial Assets | 17 | ||
Contingent considerations | 9 | 9 | |
Derivative Instruments | 6 | ||
Total Financial Liabilities | 9 | 15 | |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Derivative Instruments, Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Assets | 17 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 321 | 1,079 | |
Restricted Cash and cash equivalents | 207 | 210 | |
Fair Value, Measurements, Recurring [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 321 | 1,079 | |
Restricted Cash and cash equivalents | 207 | 210 | |
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted Cash and cash equivalents | 135 | 296 | |
Investments | 748 | 602 | |
Fair Value, Measurements, Recurring [Member] | 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 | 135 | 296 | |
Investments | 748 | 602 | |
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | [2] | 16 | |
Investments | [2],[3] | 739 | 228 |
Fair Value, Measurements, Recurring [Member] | 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 | [2] | 16 | |
Investments | [2],[3] | 739 | $ 228 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | 55 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | $ 55 | ||
[1] Investments from securitization transactions are restricted to the payment of amounts due to third-party investors. 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 June 30, 2022 and December 31, 2021 includes $ 15 million and $ 13 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 4 - Cash, cash equivalents, restricted cash and cash equivalents and investments.) |
Fair Value Measurement Of Ass_5
Fair Value Measurement Of Assets And Liabilities (Summary Of Reconciliation Of Financial Liabilities Valuated At Fair Value) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 20 | $ (9) |
Net Additions | 2 | 7 |
Settlements | 7 | 14 |
Foreign Currency Translation | 2 | (3) |
Gain (Losses) in Other Comprehensive Income | (15) | 11 |
Gain (Losses) on Income Statement | (22) | |
Transfers out of level 3 | 15 | |
Ending Balance | 9 | 20 |
Derivative Instruments, Net [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 11 | (14) |
Net Additions | 2 | 3 |
Settlements | 7 | 14 |
Foreign Currency Translation | 2 | (3) |
Gain (Losses) in Other Comprehensive Income | (15) | 11 |
Gain (Losses) on Income Statement | (22) | |
Transfers out of level 3 | 15 | |
Ending Balance | 11 | |
Contingent Considerations [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 9 | 5 |
Net Additions | 4 | |
Ending Balance | $ 9 | $ 9 |
Fair Value Measurement Of Ass_6
Fair Value Measurement Of Assets And Liabilities (Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 1,934,000 | $ 1,260,000 | |
Reported Value Measurement [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 5,534 | 3,671 | |
Reported Value Measurement [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 8,902 | 7,635 | |
Reported Value Measurement [Member] | Accounts Payable And Accrued Expenses [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,131 | 1,036 | |
Reported Value Measurement [Member] | Funds Payable to Customers [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 2,528 | 2,393 | |
Reported Value Measurement [Member] | Amount Payable Due To Credit And Debit Card Transactions [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 437 | 341 | |
Reported Value Measurement [Member] | Salaries and Social Security Payable [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 249 | 230 | |
Reported Value Measurement [Member] | Loans Payable and Other Financial Liabilities [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 4,440 | 3,518 |
Reported Value Measurement [Member] | Other Liabilities [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 117 | 117 | |
Reported Value Measurement [Member] | Time Deposits (Chilean Financial Market Commission) [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 536 | 16 | |
Reported Value Measurement [Member] | Accounts Receivable [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 102 | 98 | |
Reported Value Measurement [Member] | Credit Cards [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 2,501 | 1,839 | |
Reported Value Measurement [Member] | Loans Receivable, Net [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,845 | 1,260 | |
Reported Value Measurement [Member] | Other Assets [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 550 | 458 | |
Estimate of Fair Value Measurement [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 5,623 | 3,671 | |
Estimate of Fair Value Measurement [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 8,769 | 7,651 | |
Estimate of Fair Value Measurement [Member] | Accounts Payable And Accrued Expenses [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 1,131 | 1,036 | |
Estimate of Fair Value Measurement [Member] | Funds Payable to Customers [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 2,528 | 2,393 | |
Estimate of Fair Value Measurement [Member] | Amount Payable Due To Credit And Debit Card Transactions [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 437 | 341 | |
Estimate of Fair Value Measurement [Member] | Salaries and Social Security Payable [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 249 | 230 | |
Estimate of Fair Value Measurement [Member] | Loans Payable and Other Financial Liabilities [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 4,307 | 3,534 |
Estimate of Fair Value Measurement [Member] | Other Liabilities [Member] | Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 117 | 117 | |
Estimate of Fair Value Measurement [Member] | Time Deposits (Chilean Financial Market Commission) [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 536 | 16 | |
Estimate of Fair Value Measurement [Member] | Accounts Receivable [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 102 | 98 | |
Estimate of Fair Value Measurement [Member] | Credit Cards [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 2,501 | 1,839 | |
Estimate of Fair Value Measurement [Member] | Loans Receivable, Net [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,934 | 1,260 | |
Estimate of Fair Value Measurement [Member] | Other Assets [Member] | Financial Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 550 | $ 458 | |
[1] The fair value of the 2028 Notes (including the conversion option) is disclosed in Note 11. |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Apr. 08, 2022 USD ($) item | Jan. 31, 2022 item | Jun. 30, 2022 USD ($) item $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 item | Dec. 31, 2021 USD ($) item | |
Loss Contingencies [Line Items] | |||||||||
Reserves for proceeding-related contingencies | $ 26,000,000 | $ 26,000,000 | |||||||
Aggregate amount for legal actions for which no loss amount has been accrued | $ 219,000,000 | 219,000,000 | |||||||
Number of federation units where writs of mandamus where filed | item | 27 | 3 | |||||||
Loss accrued for reasonably possible legal actions | 0 | ||||||||
Income tax expense (benefit) | $ 39,000,000 | $ 70,000,000 | $ 85,000,000 | $ 114,000,000 | |||||
Air logistics services agreement term | 10 years | ||||||||
Committed contract, minimum annual cost | $ 43,000,000 | ||||||||
Number of dedicated aircrafts | item | 6 | ||||||||
Number of purchase commitments entered | item | 2 | ||||||||
Sponsor Committed To Purchase Class A Ordinary Shares [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Initial public offering, shares | shares | 5 | ||||||||
Shares issued, price per share | $ / shares | $ 10 | $ 10 | |||||||
Buyer Protection Program [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Provision for maximum potential exposure | $ 3,301,000,000 | $ 3,301,000,000 | $ 2,964,000,000 | $ 2,964,000,000 | |||||
Product liability, contingency, recorded allowance | 5,000,000 | 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||
ICMS-DIFAL [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserves for proceeding-related contingencies | 9,000,000 | 9,000,000 | |||||||
Number of cases filed | item | 11 | 4 | 15 | ||||||
ICMS-DIFAL [Member] | 27 Federal Units [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserves for proceeding-related contingencies | 0 | 0 | |||||||
ICMS-DIFAL [Member] | 3 Federal Units [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserves for proceeding-related contingencies | 0 | 0 | |||||||
ICMS Tax Benefits Granted [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserves for proceeding-related contingencies | 0 | 0 | |||||||
Income tax expense (benefit) | (8,000,000) | $ 0 | (17,000,000) | $ 0 | |||||
Cloud Platform Services [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Paid in relation to the contract | 94,000,000 | 94,000,000 | |||||||
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 | $ 18,000,000 | 18,000,000 | |||||||
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | $ 5 | $ 28 | $ 35 | $ 51 |
LTRP 2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | 2 | 1 | ||
LTRP 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | (3) | 3 | (4) | 2 |
LTRP 2018 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | (3) | 1 | (3) | 2 |
LTRP 2019 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | 1 | 7 | 7 | 15 |
LTRP 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | 2 | 8 | 9 | 18 |
LTRP 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | 3 | $ 7 | 11 | $ 13 |
LTRP 2022 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total LTRP | $ 5 | $ 15 |
Loans Payable And Other Finan_3
Loans Payable And Other Financial Liabilities (Narrative) (Details) | 1 Months Ended | 6 Months Ended | ||||
Aug. 24, 2018 USD ($) $ / shares $ / item | Jan. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) item $ / shares $ / item | Dec. 31, 2021 USD ($) | Jan. 14, 2021 USD ($) | Aug. 31, 2018 USD ($) | |
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 | |||||
Repurchased principal amount | 440,000,000 | |||||
Total amount paid | $ 1,865,000,000 | |||||
Seven Notes Converted [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt conversion, converted instrument, principal amount | $ 7,000 | |||||
Number of notes converted | item | 7 | |||||
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% | 2% | ||||
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 | |||||
Estimated fair value | $ 717,000,000 | $ 1,367,000,000 | ||||
Common stock, closing price per share | $ / shares | $ 636.87 | |||||
Debt instrument convertible, if-converted value in excess of principal | $ 192,000,000 | |||||
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 | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Finance lease obligations, current | $ 12 | $ 10 |
Collateralized debt, current | 336 | 77 |
Other lines of credit, current | 4 | 2 |
Current loans payable and other financial liabilities | 1,925 | 1,285 |
Finance lease obligations, noncurrent | 37 | 36 |
Collateralized debt, noncurrent | 765 | 674 |
Non Current loans payable and other financial liabilities | 2,515 | 2,233 |
Loans From Banks, 10.18% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 129 | 112 |
Debt weight average rate | 10.18% | |
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 | $ 51 | 50 |
Debt weight average rate | 1.70% | |
Loans From Banks, TIIE + 2.20 - 3.50% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 71 | 66 |
Loans From Banks, 9.48% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 40 | |
Debt weight average rate | 9.48% | |
Loans From Banks, 9.50% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 27 | 23 |
Debt weight average rate | 9.50% | |
Loans From Banks, 8.62% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 18 | 16 |
Debt weight average rate | 8.62% | |
Loans From Banks, 9.89% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 14 | |
Debt weight average rate | 9.89% | |
Loans From Banks, 2.46% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from bank, current | $ 1 | 1 |
Loans from banks, noncurrent | $ 3 | 4 |
Debt weight average rate | 2.46% | |
Secured Lines Of Credit, 42.72% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 44 | 44 |
Debt weight average rate | 42.72% | |
Secured Lines Of Credit, 43.78% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 37 | 25 |
Debt weight average rate | 43.78% | |
Secured Lines Of Credit, 9.85% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 7 | 4 |
Secured lines of credit | $ 27 | 17 |
Debt weight average rate | 9.85% | |
Unsecured Lines Of Credit, 10.10% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 29 | 27 |
Debt weight average rate | 10.10% | |
Unsecured Lines Of Credit, 34.06% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | $ 68 | 115 |
Debt weight average rate | 34.06% | |
Unsecured Lines Of Credit, -% [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit, current | 4 | |
Deposit Certificates, IPCA + 5.25 -7.15% [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | $ 261 | |
Deposit Certificates, 98% to 150% of CDI [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 475 | 518 |
Deposit Certificates, 7.95% - 14.41% [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 132 | 41 |
Deposit Certificates, 106% to 107.6% of CDI [Member] | ||
Debt Instrument [Line Items] | ||
Deposit Certificates | 42 | 23 |
2028 Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Convertible notes, current | 3 | 3 |
Convertible notes, noncurrent | 435 | 312 |
2026 Sustainability Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 4 | 4 |
Senior Notes, noncurrent | 397 | 397 |
Notes Due 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, current | 10 | 10 |
Senior Notes, noncurrent | 694 | 694 |
Financial Bills, CDI + 0.95-1.10% [Member] | ||
Debt Instrument [Line Items] | ||
Financial Bills, noncurrent | 105 | 92 |
Deposit Certificates, 104.5% to 116% 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 | $ 4 | $ 4 |
Loans From Banks, TLJP + 0.8% [Member] | TJLP [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.80% | |
Loans From Banks, TIIE +3.20 - 3.50% [Member] | ||
Debt Instrument [Line Items] | ||
Loans from banks, noncurrent | $ 31 | |
Minimum [Member] | Loans From Banks, TIIE + 2.20 - 3.50% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.20% | |
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, 98% to 150% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 98% | |
Minimum [Member] | Deposit Certificates, 7.95% - 14.41% [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 7.95% | |
Minimum [Member] | Deposit Certificates, 106% to 107.6% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 106% | |
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, 104.5% to 116% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 104.50% | |
Minimum [Member] | Loans From Banks, TIIE +3.20 - 3.50% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.20% | |
Maximum [Member] | Loans From Banks, TIIE + 2.20 - 3.50% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
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, 98% to 150% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 150% | |
Maximum [Member] | Deposit Certificates, 7.95% - 14.41% [Member] | ||
Debt Instrument [Line Items] | ||
Debt weight average rate | 14.41% | |
Maximum [Member] | Deposit Certificates, 106% to 107.6% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 107.60% | |
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, 104.5% to 116% of CDI [Member] | CDI [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 116% | |
Maximum [Member] | Loans From Banks, TIIE +3.20 - 3.50% [Member] | TIIE [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% |
Securitization Transactions (Co
Securitization Transactions (Collateralized Debt) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 1,101 |
Special Purpose Entities I [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 153 |
Special Purpose Entities II [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 191 |
Special Purpose Entities III [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 21 |
Special Purpose Entities IV [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 96 |
Special Purpose Entities V [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 216 |
Special Purpose Entities VI [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 2 |
Special Purpose Entities VII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 4 |
Special Purpose Entities VIII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 6 |
Special Purpose Entities IX [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 14 |
Special Purpose Entities X [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 19 |
Special Purpose Entities XI [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 18 |
Special Purpose Entities XII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 15 |
Special Purpose Entities XIII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 6 |
Special Purpose Entities XIV [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 12 |
Basis spread on variable rate | 2% |
Special Purpose Entities XV [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 18 |
Special Purpose Entities XVI [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 19 |
Special Purpose Entities XVII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 148 |
Special Purpose Entities XVIII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 143 |
Maximum [Member] | Special Purpose Entities XIV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46% |
Minimum [Member] | Special Purpose Entities XIV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
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% |
BADLAR Rate [Member] | Special Purpose Entities VII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities VIII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities IX [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities X [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities XI [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities XII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities XIII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities XV [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Special Purpose Entities XVI [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 50% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities X [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 52% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 62% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 63% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 46% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 48% |
BADLAR Rate [Member] | Maximum [Member] | Special Purpose Entities XVI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 56% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities X [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 35% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 35% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XV [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
BADLAR Rate [Member] | Minimum [Member] | Special Purpose Entities XVI [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30% |
Diario Oficial [Member] | Special Purpose Entities XVII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.90% |
Diario Oficial [Member] | Special Purpose Entities XVIII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3% |
Securitization Transactions (As
Securitization Transactions (Assets And Liabilities Of The Trust) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 924 | $ 1,063 |
Short-term investments | 1,645 | 810 |
Credit cards receivables and other means of payments, net | 2,501 | 1,839 |
Loans receivable, net of allowance of $807 and $408 - (see Note 5) | 1,790 | 1,199 |
Other assets | 312 | 288 |
Total current assets | 8,863 | 8,175 |
Long-term investments | 456 | 89 |
Loans receivable, net of allowances of $35 and $27 - (see Note 5) | 55 | 61 |
Total non-current assets | 2,584 | 1,926 |
Total assets | 11,447 | 10,101 |
Accounts payable and accrued expenses | 1,131 | 1,036 |
Loans payable and other financial liabilities | 1,925 | 1,285 |
Total current liabilities | 6,823 | 5,837 |
Loans payable and other financial liabilities | 2,515 | 2,233 |
Total non-current liabilities | 3,044 | 2,733 |
Total liabilities | 9,867 | 8,570 |
Trust Created In Brazil [Member] | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 310 | 282 |
Credit cards receivables and other means of payments, net | 326 | 278 |
Loans receivable, net of allowance of $807 and $408 - (see Note 5) | 968 | 608 |
Total current assets | 1,604 | 1,168 |
Long-term investments | 15 | 13 |
Loans receivable, net of allowances of $35 and $27 - (see Note 5) | 35 | 45 |
Total non-current assets | 50 | 58 |
Total assets | 1,654 | 1,226 |
Accounts payable and accrued expenses | 6 | 1 |
Loans payable and other financial liabilities | 336 | 77 |
Total current liabilities | 342 | 78 |
Loans payable and other financial liabilities | 765 | 674 |
Total non-current liabilities | 765 | 674 |
Total liabilities | $ 1,107 | $ 752 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 525 | $ 461 |
Operating lease liabilities | 528 | 464 |
Finance Leases, Property and equipment, at cost | 79 | 68 |
Finance Leases, Accumulated depreciation | (21) | (14) |
Finance Leases, Property and equipment, net | 58 | 54 |
Loans payable and other financial liabilities | $ 49 | $ 46 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Jun. 30, 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% | [1] |
Weighted average discount rate, Finance leases | 16% | [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 | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 59 | $ 34 |
Depreciation of property and equipment | 8 | 4 |
Interest on lease liabilities | 4 | 2 |
Total finance lease cost | $ 12 | $ 6 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 54 | $ 32 |
Financing cash flows from finance leases | 9 | 9 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 115 | 110 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 7 | $ 17 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Leases, One year or less | $ 121 | |
Operating Leases, One year to two years | 117 | |
Operating Leases, Two years to three years | 110 | |
Operating Leases, Three years to four years | 92 | |
Operating Leases, Fours years to five years | 63 | |
Operating Leases, Thereafter | 183 | |
Operating Leases, Total lease payments | 686 | |
Operating Leases, Less imputed interest | (158) | |
Operating leases, Total | 528 | $ 464 |
Finance Leases, One year or less | 19 | |
Finance Leases, One year to two years | 19 | |
Finance Leases, Two years to three years | 15 | |
Finance Leases, Three years to four years | 7 | |
Finance Leases, Fours years to five years | 5 | |
Finance Leases, Total lease payments | 65 | |
Finance Leases, Less imputed interest | (16) | |
Finance Leases, Total | $ 49 | $ 46 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Notional Amounts) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 82 | $ 89 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 228 | |
Designated as Hedging Instrument [Member] | Cross Currency Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 96 | 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 | 345 | 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 | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative | $ (7) | $ 8 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | (4) | 1 |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 1 | 2 |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Not 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 | 4 | 1 |
Interest Rate Contract [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 1 | |
Interest Rate Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 1 | |
Interest Rate Contract [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2 | |
Cross Currency Swap Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2 | 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 | 1 | 7 |
Cross Currency Swap Contracts [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 12 | $ 5 |
Cross Currency Swap Contracts [Member] | Other Non-Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 3 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Contracts On Comprehensive Income) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | $ 8 |
Amount of Loss (gains) recognized in other comprehensive loss | (24) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 9 |
End Balance | (7) |
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 | (9) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 4 |
End Balance | (4) |
Designated as Hedging Instrument [Member] | Interest Swap Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Loss (gains) recognized in other comprehensive loss | (6) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 1 |
End Balance | (5) |
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 | (9) |
Amount of gain (loss) reclassified from accumulated other comprehensive loss | 4 |
End Balance | $ 2 |
Derivative Instruments (Effec_2
Derivative Instruments (Effect Of Derivative Contracts On Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments [Abstract] | ||||
Foreign exchange contracts not designated as hedging instruments recognized in foreign exchange losses, net | $ 5 | $ (30) | $ (11) | |
Currency Swap contracts not designated as hedging instrument recognized in foreign exchange losses, net | $ 10 | $ (22) |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 01, 2022 | Jun. 07, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 04, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares acquired from repurchase program | 208,577 | 208,577 | |||||
Foreign currency loss | $ 134 | $ 45 | |||||
August 30, 2020 Board Authorized Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common Stock repurchased, shares | 229,588 | ||||||
Foreign currency loss | $ 28 | $ 13 | $ 63 | $ 31 | |||
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 |
Fintech Regulations (Details)
Fintech Regulations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 30, 2021 | Jun. 30, 2022 | |
Fintech Regulations [Abstract] | ||
Funds in payment accounts of customers | $ 415 | |
Required percent of reserve of customer funds deposited | 100% | 100% |
Deposited in brazilian federal government bonds | $ 883 | |
Term of days followings requested preliminary injunction with the courts | 90 days | |
Restricted cash related to liquidity reserves | $ 40 |
Advisory Agreement And Shares_2
Advisory Agreement And Shares Granted (Details) - Former Executive Officer [Member] - USD ($) | 6 Months Ended | |
Apr. 08, 2022 | Jun. 30, 2022 | |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Term of fixed payments for eligible employees | 3 years | |
Monthly compensation for advisory services | $ 10,000 | |
Restricted Stock [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Available for grants | 5,051 | |
Vesting period | 5 years | |
Restricted Stock [Member] | One-Fifth Vesting Each Of Five Anniversaries [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Vesting percent | 0.20% |