Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33647 | |
Entity Registrant Name | MercadoLibre, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0212790 | |
Entity Address, Address Line One | Pasaje Posta 4789 | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | Buenos Aires | |
Entity Address, Country | AR | |
Entity Address, Postal Zip Code | C1430EKG | |
City Area Code | 5411 | |
Local Phone Number | 4640-8000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,852,319 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001099590 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | MELI | |
Security Exchange Name | NASDAQ | |
2.375% Sustainability Notes Due 2026 [Member] | ||
Title of 12(b) Security | 2.375% Sustainability Notes due 2026 | |
Trading Symbol | MELI26 | |
Security Exchange Name | NASDAQ | |
3.125% Notes Due 2031 [Member] | ||
Title of 12(b) Security | 3.125% Notes due 2031 | |
Trading Symbol | MELI31 | |
Security Exchange Name | NASDAQ |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 862,720 | $ 1,856,394 | |
Restricted cash and cash equivalents | 325,636 | 651,830 | |
Short-term investments (634,067 and 636,949 held in guarantee - see Note 4) | 980,076 | 1,241,306 | |
Accounts receivable, net | 64,815 | 49,691 | |
Credit cards receivable and other means of payments, net | 883,670 | 863,073 | |
Loans receivable, net | 416,600 | 385,036 | |
Prepaid expenses | 43,291 | 28,378 | |
Inventories | 131,460 | 118,140 | |
Other assets | 191,923 | 152,959 | |
Total current assets | 3,900,191 | 5,346,807 | |
Non-current assets: | |||
Long-term investments | 175,601 | 166,111 | |
Loans receivable, net | 18,849 | 16,619 | |
Property and equipment, net | 458,640 | 391,684 | |
Operating lease right-of-use assets | 345,313 | 303,214 | |
Goodwill | 82,830 | 85,211 | |
Intangible assets, net | 20,271 | 14,155 | |
Deferred tax assets | 124,272 | 134,916 | |
Other assets | 71,888 | 67,615 | |
Total non-current assets | 1,297,664 | 1,179,525 | |
Total assets | 5,197,855 | 6,526,332 | |
Current liabilities: | |||
Accounts payable and accrued expenses | 612,206 | 767,336 | |
Funds payable to customers and amounts due to merchants | 1,527,971 | 1,733,095 | |
Salaries and social security payable | 193,166 | 207,358 | |
Taxes payable | 240,167 | 215,918 | |
Loans payable and other financial liabilities | 514,540 | 548,393 | |
Operating lease liabilities | 67,264 | 55,246 | |
Other liabilities | 49,635 | 108,534 | |
Total current liabilities | 3,204,949 | 3,635,880 | |
Non-current liabilities: | |||
Salaries and social security payable | 20,695 | 49,852 | |
Loans payable and other financial liabilities | 1,659,898 | 860,876 | |
Operating lease liabilities | 277,264 | 243,601 | |
Deferred tax liabilities | 41,233 | 64,354 | |
Other liabilities | 24,220 | 20,191 | |
Total non-current liabilities | 2,023,310 | 1,238,874 | |
Total liabilities | 5,228,259 | 4,874,754 | |
Commitments and Contingencies (Note 9) | |||
Equity | |||
Common stock, $0.001 par value, 110,000,000 shares authorized, 49,852,319 and 49,869,727 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 50 | 50 | |
Additional paid-in capital | 275,632 | 1,860,502 | |
Treasury stock | (80,126) | (54,805) | |
Retained earnings | 280,103 | 314,115 | |
Accumulated other comprehensive loss | (506,063) | (468,284) | |
Total Equity | [1] | (30,404) | 1,651,578 |
Total Liabilities and Equity | $ 5,197,855 | $ 6,526,332 | |
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Interim Condensed Consolidated Balance Sheets [Abstract] | ||
Short-term investments, held in guarantee | $ 634,067 | $ 636,949 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 49,852,319 | 49,869,727 |
Common stock, shares outstanding | 49,852,319 | 49,869,727 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Net revenues | $ 1,378,441 | $ 652,091 | ||
Cost of net revenues | (787,064) | (339,277) | ||
Gross profit | 591,377 | 312,814 | ||
Operating expenses: | ||||
Product and technology development | (126,035) | (73,435) | ||
Sales and marketing | (288,159) | (206,507) | ||
General and administrative | (86,339) | (62,566) | ||
Total operating expenses | (500,533) | (342,508) | ||
Income (loss) from operations | 90,844 | (29,694) | ||
Other income (expenses): | ||||
Interest income and other financial gains | 25,071 | 36,784 | ||
Interest expense and other financial losses | [1] | (91,289) | (23,584) | |
Foreign currency losses | (15,089) | (186) | ||
Net income (loss) before income tax expense | 9,537 | (16,680) | ||
Income tax expense | (43,549) | (4,429) | ||
Net loss | $ (34,012) | [2] | $ (21,109) | |
Basic EPS: Basic net loss | ||||
Available to shareholders per common share | $ (0.68) | $ (0.44) | ||
Weighted average of outstanding common shares | 49,867,625 | 49,709,955 | ||
Diluted EPS: Diluted net loss | ||||
Available to shareholders per common share | $ (0.68) | $ (0.44) | ||
Weighted average of outstanding common shares | 49,867,625 | 49,709,955 | ||
Service [Member] | ||||
Net revenues | $ 1,230,904 | $ 639,892 | ||
Product [Member] | ||||
Net revenues | 147,537 | 12,199 | ||
2028 Convertible Senior Notes [Member] | ||||
Other income (expenses): | ||||
Interest expense and other financial losses | $ (49,247) | $ (49,247) | ||
[1] | Includes $ 49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase. | |||
[2] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Interim Condensed Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net loss | $ (34,012) | [1] | $ (21,109) |
Other comprehensive loss, net of income tax: | |||
Currency translation adjustment | (41,869) | (94,597) | |
Unrealized gains on hedging activities | 3,670 | 3,981 | |
Unrealized net gains on available for sale investments | 2,268 | ||
Less: Reclassification adjustment for gains from accumulated other comprehensive loss | (420) | 1,705 | |
Net change in accumulated other comprehensive loss, net of income tax | (37,779) | (90,053) | |
Total Comprehensive loss | $ (71,791) | $ (111,162) | |
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Loss [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total | |
Changes in accounting Standards | $ 50 | $ 50 | $ 2,067,869 | $ 2,067,869 | $ (720) | $ (720) | $ (4,570) | $ 318,022 | $ 322,592 | $ (406,671) | $ (406,671) | $ (4,570) | $ 1,978,550 | $ 1,983,120 | ||
Beginning Balance at Dec. 31, 2019 | $ 50 | $ 50 | 2,067,869 | 2,067,869 | (720) | (720) | (4,570) | 318,022 | 322,592 | (406,671) | (406,671) | (4,570) | 1,978,550 | 1,983,120 | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 49,710 | 49,710 | ||||||||||||||
Stock-based compensation - restricted shares issued | 179 | 179 | ||||||||||||||
Changes in accounting Standards | $ 50 | $ 50 | $ 2,067,869 | 2,068,048 | $ (720) | (720) | $ (4,570) | $ 318,022 | 295,913 | $ (406,671) | (496,724) | $ (4,570) | $ 1,978,550 | 1,866,567 | ||
Redeemable convertible preferred stock dividend distribution ($9.99 per share) | (1,000) | (1,000) | ||||||||||||||
Net loss | (21,109) | (21,109) | ||||||||||||||
Other comprehensive loss | (90,053) | (90,053) | ||||||||||||||
Ending Balance at Mar. 31, 2020 | $ 50 | 2,068,048 | (720) | 295,913 | (496,724) | 1,866,567 | ||||||||||
Ending Balance (in shares) at Mar. 31, 2020 | 49,710 | |||||||||||||||
Changes in accounting Standards | $ 50 | 2,068,048 | (720) | 295,913 | (496,724) | 1,866,567 | ||||||||||
Changes in accounting Standards | 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | [1] | |||||||||
Beginning Balance at Dec. 31, 2020 | $ 50 | 1,860,502 | (54,805) | 314,115 | (468,284) | 1,651,578 | [1] | |||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 49,870 | |||||||||||||||
Stock-based compensation - restricted shares issued | 178 | 178 | [1] | |||||||||||||
Capped Call | (100,769) | (100,769) | [1] | |||||||||||||
Repurchase of 2028 Notes Conversion Option | (1,484,279) | (1,484,279) | [1] | |||||||||||||
Common Stock repurchased | (25,321) | (25,321) | [1] | |||||||||||||
Common Stock repurchased (in shares) | (18) | |||||||||||||||
Changes in accounting Standards | $ 50 | 275,632 | (80,126) | 280,103 | (506,063) | 1,651,578 | [1] | |||||||||
Net loss | (34,012) | (34,012) | [1] | |||||||||||||
Other comprehensive loss | (37,779) | (37,779) | [1] | |||||||||||||
Ending Balance at Mar. 31, 2021 | $ 50 | 275,632 | (80,126) | 280,103 | (506,063) | (30,404) | [1] | |||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 49,852 | |||||||||||||||
Changes in accounting Standards | $ 50 | $ 275,632 | $ (80,126) | $ 280,103 | $ (506,063) | $ (30,404) | [1] | |||||||||
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements Of Equity (Parenthetical) | Mar. 31, 2020$ / shares |
Interim Condensed Consolidated Statements Of Equity [Abstract] | |
Redeemable convertible preferred stock dividend distribution, price per share | $ 9.99 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from operations: | |||
Net loss | $ (34,012) | [1] | $ (21,109) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Unrealized devaluation loss, net | 24,772 | 18,505 | |
Depreciation and amortization | 38,416 | 21,550 | |
Accrued interest | (4,045) | (22,352) | |
Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges | 34,137 | (3,632) | |
Bad debt charges | 83,829 | 24,419 | |
Financial results on derivative instruments | (18,989) | (16,767) | |
Stock-based compensation expense - restricted shares | 178 | 179 | |
LTRP accrued compensation | 22,916 | 15,664 | |
Deferred income taxes | 3,988 | (4,199) | |
Changes in assets and liabilities: | |||
Accounts receivable | 21,064 | 19,748 | |
Credit cards receivables and other means of payments | (62,274) | (33,303) | |
Prepaid expenses | (15,218) | 8,560 | |
Inventory | (18,958) | (5,272) | |
Other assets | (34,882) | (5,796) | |
Payables and accrued expenses | (143,763) | (43,101) | |
Funds payable to customers and amounts due to merchants | (106,866) | (21,344) | |
Other liabilities | (62,768) | (32,206) | |
Interest received from investments | 9,478 | 14,805 | |
Net cash used in operating activities | (262,997) | (85,651) | |
Cash flows from investing activities: | |||
Purchase of investments | (2,415,091) | (1,323,631) | |
Proceeds from sale and maturity of investments | 2,588,681 | 1,249,960 | |
Receipts from settlements of derivative instruments | 1,585 | 3,668 | |
Payment for acquired businesses, net of cash acquired | 0 | (7,561) | |
Payment from settlements of derivative instruments | (3,897) | 0 | |
Purchases of intangible assets | (7,805) | (93) | |
Changes in principal of loans receivable, net | (148,734) | (27,250) | |
Purchases of property and equipment | (112,672) | (45,175) | |
Net cash used in investing activities | (97,933) | (150,082) | |
Cash flows from financing activities: | |||
Proceeds from loans payable and other financial liabilities | 1,839,617 | 749,617 | |
Payments on loans payable and other financial liabilities | (704,307) | (593,497) | |
Payments on repurchase of the 2028 Notes | (1,865,076) | 0 | |
Payment of finance lease obligations | (3,863) | (564) | |
Purchase of convertible note capped call | (100,769) | 0 | |
Dividends paid of preferred stock | 0 | (1,000) | |
Common Stock repurchased | (25,321) | 0 | |
Net cash (used in) provided by financing activities | (859,719) | 154,556 | |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents | (99,219) | (104,864) | |
Net decrease in cash, cash equivalents, restricted cash and cash equivalents | (1,319,868) | (186,041) | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period | 2,508,224 | [2] | 1,451,424 |
Cash, cash equivalents, restricted cash and cash equivalents, end of the period | $ 1,188,356 | [2] | $ 1,265,383 |
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. | ||
[2] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. |
Nature Of Business
Nature Of Business | 3 Months Ended |
Mar. 31, 2021 | |
Nature Of Business [Abstract] | |
Nature Of Business | 1. Nature of Business MercadoLibre, Inc. (“MercadoLibre” or the “Company”) was incorporated in the state of Delaware, in the United States of America, in October 1999. MercadoLibre is the largest online commerce ecosystem in Latin America , serving as an integrated regional platform and as a provider of necessary digital and technology tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech solution, MercadoLibre enables individuals and businesses to send and receive digital payments; through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers; through the advertising products, MercadoLibre facilitates advertising services for large retailers and brands to promote their product and services on the web; through Mercado Shops, MercadoLibre allows users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model; through Mercado Credito, MercadoLibre extends loans to certain merchants and consumers; and through Mercado Fondo, MercadoLibre allows users to invest funds deposited in their Mercado Pago accounts. As of March 31, 2021, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates its FinTech solution in Argentina, Brazil, Mexico, Colombia, Chile, Peru and Uruguay, and extends loans through Mercado Credito in Argentina, Brazil and Mexico. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia, Chile and Uruguay. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). 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 $ 552,837 thousands and $ 490,464 thousands as of March 31, 2021 and December 31, 2020, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2021 and December 31, 2020. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 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. From the quarter ended March 31, 2021 the Company disclosed Net product revenues as a separate line of Net revenues following its growth in significance relative to Net service revenues. As a result, the Company has reclassified the corresponding amount of the three month period ended March 31, 2020 to the line Net product revenues for an amount of $ 12,199 thousands for comparative purposes. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The Company has evaluated all subsequent events through the date these condensed consolidated financial statements were issued. The condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Company’s Form 10-K for the year ended December 31, 2020. During the three-month period ended March 31, 2021, there were no material updates made to the Company’s significant accounting policies. Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Receivables are presented net of allowance for doubtful accounts, loans receivable and chargebacks of $ 176,912 thousands and $ 126,661 thousands as of March 31, 2021 and December 31, 2020, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. Deferred revenue as of December 31, 2020 and 2019 was $ 32,519 thousands and $ 16,590 thousands, respectively, of which $ 9,413 thousands and $ 5,562 thousands were recognized as revenue during the three-month periods ended March 31, 2021 and 2020, respectively. As of March 31, 2021, total deferred revenue was $ 18,556 thousands, mainly due to fees related to listing and optional feature services billed and loyalty programs that are expected to be recognized as revenue in the coming months. Digital Assets During the first quarter of 2021, the Company purchased an aggregate amount of $ 7,800 thousands in bitcoins. The Company accounts for its digital assets — bitcoins — 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 determines the fair value of its digital assets in accordance with ASC 820, Fair Value Measurement. Impairment losses are recognized in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. Repurchase of 2.00% Convertible Senior Notes due 2028 - Extinguishment of debt The derecognition of a convertible debt is based on the principle that an entity is extinguishing the liability component and reacquiring the equity component that was recognized at issuance. This approach is applied whether the debt was settled in cash, shares, other assets (or any combination), or at maturity upon conversion or upon early extinguishment. The settlement consideration is first allocated to the extinguishment of the liability component equal to the fair value of that component immediately prior to extinguishment. Any difference between that allocated amount and the net carrying amount of the liability component and unamortized debt issuance costs should be recognized as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. Any paid premium included in the repurchase price should be recognized as a loss when the debt is extinguished. Foreign currency translation All of the Company’s consolidated foreign operations use the local currency as their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive loss. Argentine currency status As of July 1, 2018, the Company transitioned its Argentinian operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the US dollar, to make payments abroad, either for foreign debt or the importation of goods or services, dividend payments and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government´s perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce and financial payments is the official exchange rate, which as of March 31, 2021 was 92.0 . The Company uses Argentina’s official exchange rate to record the accounts of Argentine subsidiaries. The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (In thousands) Assets $ 1,493,608 $ 1,470,885 Liabilities 1,154,563 1,230,326 Net Assets $ 339,045 $ 240,559 Income taxes The Company is subject to U.S. and foreign income taxes. The Company accounts for income taxes following the liability method of accounting which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s income tax expense consists of taxes currently payable, if any, plus the change during the period in the Company’s deferred tax assets and liabilities. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. Accordingly, Management periodically assesses the need to establish a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. In connection with this assessment, Management considers, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies that would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Based on Management’s assessment of available objective evidence and considering the future effect of the Company’s initiatives to capture long-term business opportunities, the Company accounted for a valuation allowance in certain subsidiaries in its Mexican operations of $ 12,176 thousands and $ 14,186 thousands for the three-month periods ended March 31, 2021 and 2020, respectively. On June 10, 2019, the Argentine government enacted Law No. 27,506 (knowledge-based economy promotional regime), which established a regime that provides certain tax benefits for companies that meet specific criteria, such as companies that derive at least 70% of their revenues from certain specified activities related to the knowledge-based economy. The regime was suspended on January 20, 2020 until new rules for the application of the knowledge-based economy promotional regime were issued. On June 25, 2020, the Chamber of Deputies passed changes to the knowledge-based economy promotional regime. The Chamber of Senates proposed further amendments, which were returned to the Chamber of Deputies and finally approved on October 7, 2020. The approved regime is effective as of January 1, 2020 until December 31, 2029. Based on the amended promotional regime, companies that meet new specified criteria shall be entitled to: i) a reduction of the income tax burden of 60% (60% for micro and small enterprises, 40% for medium-sized enterprises and 20% for large enterprises) over the promoted activities for each fiscal year, applicable to both Argentine source income and foreign source income, ii) stability of the benefits established by the knowledge-based economy promotional regime (as long as the beneficiary is registered and in good standing), iii) a non-transferable tax credit bond amounting to 70% (which can be up to 80% in certain specific cases) of the Company’s contribution to the social security regime of every employee whose job is related to the promoted activities (caps on the number of employees are applicable). Such bonds can be used within 24 months from their issue date (which period can be extended for an additional 12 months in certain cases) to offset certain federal taxes, such as value-added tax, but they cannot be used to offset income tax. On December 20, 2020, Argentina’s Executive Power issued Decree No. 1034/2020, which set the rules to implement the provisions of the knowledge-based economy promotional regime. Eligible companies must enroll in a registry according to the terms and conditions to be established by the Application Authority, which will verify compliance with the requirements. The Decree also set the mechanism for calculating the level of investment in research and development, the level of employee retention, exports, among others. It also establishes that exports of services from companies participating in this regime will not be subject to export duties. On January 13, 2021, Argentina’s Ministry of Productive Development –current Application Authority of the knowledge-based economy promotional regime- issued Resolution No. 4/2021 which was followed by Disposition N° 11/2021 issued by the Under Secretariat of Knowledge Economy on February 12, 2021. Both rules establish further details on the requirements, terms, conditions, application, and compliance procedures to be eligible under the promotional regime. MercadoLibre S.R.L. has submitted the application to be eligible to the knowledge-based economy promotional regime; such eligibility remains subject to Argentine government approval. 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 $ 1,173 thousands and $ 12,004 thousands as of March 31, 2021 and 2020, respectively. Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 508,438 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 3,728 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 1,353 ) 754 $ ( 506,063 ) $ ( 468,284 ) The following tables summarize the changes in accumulated balances of other comprehensive loss for the three-months ended March 31, 2021: Unrealized Foreign Estimated tax (Losses) Gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 5,561 ( 41,869 ) ( 1,891 ) ( 38,199 ) Amount of (gain) loss reclassified from accumulated other comprehensive loss 636 — ( 216 ) 420 Net current period other comprehensive income (loss) 6,197 ( 41,869 ) ( 2,107 ) ( 37,779 ) Ending balance $ 3,728 $ ( 508,438 ) $ ( 1,353 ) $ ( 506,063 ) Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 636 ) Cost of net revenues Estimated tax benefit on unrealized gains 216 Income tax expense Total reclassifications for the period $ ( 420 ) Total, net of income taxes Use of estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowances for doubtful accounts and chargeback provisions, allowance for loans receivables, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of short-term and long-term investments, impairment of long-lived assets, compensation costs relating to the Company’s long term retention plan, fair value of convertible debt, fair value of investments, fair value of derivative instruments, income taxes and contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates. Recently Adopted Accounting Standards On December 18, 2019 the FASB issued the ASU 2019-12 “Income taxes (Topic 740)—Simplifying the accounting for income taxes”. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles and also improve consistent application by clarifying and amending existing guidance, such as franchise taxes and interim recognition of enactment of tax laws or rate changes. The amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company´s financial statements. Recently issued accounting pronouncements not yet adopted On August 5, 2020 the FASB issued the ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this update address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, accounting models for specific features are removed and amendments to the disclosure requirements are included. For contracts in an entity’s own equity, simplifies the settlement assessment by removing some requirements. Additionally, the amendments in this update affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Loss Per Share [Abstract] | |
Net Loss Per Share | 3. Net loss per share Basic earnings per share for the Company’s common stock is computed by dividing, net loss available to common shareholders attributable to common stock for the period by the weighted average number of common shares outstanding during the period. On August 24, 2018 and August 31, 2018 the Company issued an aggregate principal amount of $ 880 million of 2.00 % Convertible Senior Notes due 2028 (see Note 11 to these interim condensed consolidated financial statements). The conversion of these notes are included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of these Notes is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. Additionally, on March 29, 2019 the Company issued Preferred Stock. The conversion of Preferred Stock was included in the calculation for diluted earnings per share utilizing the “if converted” method. Accordingly, conversion of the redeemable convertible preferred stock is not assumed for purposes of computing diluted earnings per share if the effect is antidilutive. The denominator for diluted net loss per share for the three-month periods ended March 31, 2021 and 2020 does not include any effect from the 2028 Notes Capped Call Transactions (as defined in Note 11) because it would be antidilutive. In the event of conversion of any or all of the 2028 Notes, the shares that would be delivered to the Company under the Capped Call Transactions (as defined in Note 11) are designed to partially neutralize the dilutive effect of the shares that the Company would issue under the Notes. S ee Note 11 to these interim condensed consolidated financial statements and Note 16 to the financial statements for the year ended December 31, 2020, contained in the Company ’s Annual Report on Form 10-K filed with the SEC for more details. For the three-month periods ended March 31, 2021 and 2020 , the effects of the conversion of the Notes and the redeemable convertible preferred stock would have been antidilutive and, as a consequence, they were not factored into the calculation of diluted earnings per share. Net loss per share of common stock is as follows for the three-month periods ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (In thousands) Basic Diluted Basic Diluted Net loss per common share $ ( 0.68 ) $ ( 0.68 ) $ ( 0.44 ) $ ( 0.44 ) Numerator: Net loss $ ( 34,012 ) $ ( 34,012 ) $ ( 21,109 ) $ ( 21,109 ) Dividends on preferred stock — — ( 1,000 ) ( 1,000 ) Net loss corresponding to common stock $ ( 34,012 ) $ ( 34,012 ) $ ( 22,109 ) $ ( 22,109 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,867,625 — 49,709,955 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,867,625 — 49,709,955 |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments [Abstract] | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments | 4. Cash, cash equivalents, restricted cash and cash equivalent and investments The composition of cash, cash equivalents, restricted cash and cash equivalents, short-term and long-term investments is as follows: March 31, December 31, 2021 2020 (In thousands) Cash and cash equivalents $ 862,720 $ 1,856,394 Restricted cash and cash equivalents Securitization Transactions $ 100,758 $ 249,872 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 144,249 Bank account (Argentine Central Bank regulation) 185,560 237,511 Bank collateral account (Secured lines of credit guarantee) 574 574 Money Market Funds (Secured lines of credit guarantee) 38,586 19,469 Cash in bank account 158 155 Total restricted cash and cash equivalents $ 325,636 $ 651,830 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 1,188,356 $ 2,508,224 Short-term investments Time Deposits $ 305,746 $ 158,818 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 562,797 565,705 Sovereign Debt Securities (Secured lines of credit guarantee) 71,270 71,244 Sovereign Debt Securities 40,263 445,539 Total short-term investments $ 980,076 $ 1,241,306 Long-term investments Sovereign Debt Securities $ 157,023 $ 150,054 Securitization Transactions 1,596 — Other Investments 16,982 16,057 Total long-term investments $ 175,601 $ 166,111 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. Regulation issued by Central Bank of Argentina (“CBA”) a) In January 2020, the CBA enacted regulations related to payment service providers that applies to Fintech companies that are not financial institutions, but nevertheless provide payment services in at least one of the processes of the payments system. On July 7, 2020, the CBA approved the registration of the Argentine subsidiary in the registry for payment service providers. These regulations sets forth certain rules that require payment services providers to, among other things, (i) deposit and maintain users’ funds in specific banks’ accounts, payable on demand; (ii) implement a monthly reporting regime with the CBA; (iii) segregate information related to users’ investments funds; (iv) maintain different bank accounts to segregate the Company’s funds from users’ funds; and (v) introduce clarifications on advertising and documents about the standard terms and conditions of the payment service provider. As of March 31, 2021, in accordance with the regulation, the Company held $ 185,560 thousands in a bank account, payable on demand. b) In October 2020, the CBA issued a regulation that applies to non-financial loan providers. In accordance with this regulation, the Company was registered in the "Registry of other non-financial loan providers" on December 1, 2020 and complied with a periodic information report within the framework of a monthly information regime as from March 1, 2021. In turn, the CBA established that the Company must comply with the obligations established by CBA rules, regarding, among other things: (i) interest rates in loan operations; (ii) protection of users of financial services; (iii) communication by electronic means for the care of the environment. Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) On November 1, 2018, the Company obtained approval from the Central Bank of Brazil to operate as an authorized payment institution. With this authorization, Mercado Pago in Brazil is subject to the supervision of the Central Bank of Brazil and must fully comply with all obligations established by current regulations. Among other obligations, the regulations require authorized payment institutions to hold any electronic balance in a payment institution account in either a specific account of the Central Bank of Brazil that does not pay interest or Brazilian federal government bonds registered with the “Sistema Especial de Liquidacao e Custodia.” 100 % of electronic funds were required to be deposited as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, in accordance with the regulation, the Company held $ 562,797 thousands and $ 709,954 thousands deposited in Brazilian federal government bonds, respectively, as a mandatory guarantee (the “Central Bank of Brazil Mandatory Guarantee”). |
Loans Receivable, Net
Loans Receivable, Net | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans Receivable, Net | 5. Loans receivable, net The Company manages loans receivable as “On-line merchant”, “Consumer” and “In-store merchant”. As of March 31, 2021 and December 31, 2020, Loans receivable, net were as follows: March 31, December 31, 2021 2020 (In thousands) On-line merchant $ 202,146 $ 180,063 Consumer 296,457 237,956 In-store merchant 77,273 61,452 Loans receivable 575,876 479,471 Allowance for uncollectible accounts ( 140,427 ) ( 77,816 ) Loans receivable, net $ 435,449 $ 401,655 The credit quality analysis of loans receivable was as follows: March 31, December 31, 2021 2020 (In thousands) 1-30 days past due $ 45,623 $ 34,706 31-60 days past due 28,644 16,977 61 -90 days past due 27,412 13,239 91 -120 days past due 19,763 10,632 121 -150 days past due 16,381 5,315 151 -180 days past due 11,684 3,649 Total past due 149,507 84,518 To become due 426,369 394,953 Total $ 575,876 $ 479,471 The following table summarizes the allowance for uncollectible accounts activity during the three-month period ended March 31, 2021 and 2020: March 31, 2021 2020 (In thousands) Balance at beginning of year $ 77,816 $ 20,444 Adoption of ASC 326 (1) - 4,977 Charged/credited to Net loss 85,997 24,419 Charges/Utilized /Currency translation adjustments/Write-offs ( 23,386 ) ( 19,477 ) Balance at end of period $ 140,427 $ 30,363 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 . |
Business Combinations, Goodwill
Business Combinations, Goodwill And Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | 6. Business combinations, g oodwill and intangible assets Business combinations Acquisition of a software development company In March 2020, the Company, through its subsidiary Meli Participaciones S.L., completed the acquisition of 100 % of the equity interest of Kiserty S.A. and its subsidiaries, which is a software development company located and organized under the law of Uruguay. The objective of the acquisition was to enhance the capabilities of the Company in terms of software development. The aggregate purchase price for the acquisition was $ 10,899 thousands, measured at its fair value amount, which included: (i) the total cash payment of $ 8,500 thousands at the time of closing; (ii) an escrow of $ 225 thousands and (iii) a contingent additional cash consideration up to $ 2,174 thousands. The Company’s consolidated statement of income includes the results of operations of the acquired business as from March 9, 2020. The net income before intercompany eliminations of the acquired Company included in the Company’s consolidated statement of income amounted to $ 2,061 thousands for the period ended March 31, 2021. In addition, the Company incurred in certain direct costs of the business combination which were expensed as incurred. The purchase price was allocated based on the measurement of the fair value of assets acquired and liabilities assumed considering the information available as of the initial accounting date. The valuation of identifiable intangible assets acquired reflects Management’s estimates based on the use of established valuation methods. The Company recognized goodwill for this acquisition based on Management’s expectation that the acquired business will improve the Company’s business. Arising goodwill was allocated to each of the segments identified by the Company’s Management, considering the synergies expected from this acquisition and it is expected that the acquisition will contribute to the earnings generation process of such segments. Goodwill arising from this acquisition is not deductible for tax purposes. The results of operations for periods prior to the acquisitions, individually and in the aggregate, were not material to the Company’s consolidated statements of income and, accordingly, pro forma information has not been presented . Goodwill and intangible assets The composition of goodwill and intangible assets is as follows: March 31, December 31, 2021 2020 (In thousands) Goodwill $ 82,830 $ 85,211 Intangible assets with indefinite lives - Trademarks 7,628 7,751 - Digital assets 7,588 — Amortizable intangible assets - Licenses and others 4,797 4,932 - Non-compete agreement 3,356 3,426 - Customer list 13,635 14,010 - Trademarks 7,808 7,879 Total intangible assets $ 44,812 $ 37,998 Accumulated amortization ( 24,541 ) ( 23,843 ) Total intangible assets, net $ 20,271 $ 14,155 Goodwill The changes in the carrying amount of goodwill for the three-month period ended March 31, 2021 and the year ended December 31, 2020 are as follows: Three Months Ended March 31, 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Effect of exchange rates changes ( 1,360 ) — ( 522 ) ( 170 ) ( 295 ) ( 34 ) ( 2,381 ) Balance, end of the period $ 18,402 $ 10,594 $ 31,175 $ 16,826 $ 4,095 $ 1,738 $ 82,830 Year Ended December 31, 2020 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 Business Acquisitions — 3,603 1,062 1,241 1,246 748 7,900 Disposals ( 3,480 ) — — — — — ( 3,480 ) Effect of exchange rates changes ( 5,830 ) — ( 1,561 ) 883 ( 168 ) ( 142 ) ( 6,818 ) Balance, end of the year $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Intangible assets with definite useful life Intangible assets with definite useful life are comprised of customer lists, non-compete and non-solicitation agreements, acquired software licenses and other acquired intangible assets including developed technologies and trademarks. Aggregate amortization expense for intangible assets totaled $ 1,318 thousands and $ 808 thousands for the three-month periods ended March 31, 2021 and 2020, respectively. The following table summarizes the remaining amortization of intangible assets (in thousands of U.S. dollars) with definite useful life as of March 31, 2021 : For year ended 12/31/2021 $ 2,450 For year ended 12/31/2022 1,242 For year ended 12/31/2023 973 For year ended 12/31/2024 341 Thereafter 49 $ 5,055 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 7. Segment reporting Reporting segments are based upon the Company’s internal organizational structure, the manner in which the Company’s operations are managed and resources are assigned, the criteria used by Management to evaluate the Company’s performance, the availability of separate financial information and overall materiality considerations. Segment reporting is based on geography as the main basis of segment breakdown in accordance with the criteria, as determined by Management, used to evaluate the Company’s performance. The Company’s segments include Brazil, Argentina, Mexico and other countries (which includes Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Honduras, Nicaragua, El Salvador, Bolivia, Guatemala, Panama, Paraguay, Peru, Uruguay and the United States of America). Direct contribution consists of net revenues from external customers less direct costs, which include costs of net revenues, product and technology development expenses, sales and marketing expenses and general and administrative expenses over which segment managers have direct discretionary control, such as advertising and marketing programs, customer support expenses, allowances for doubtful accounts, payroll and third-party fees. All corporate related costs have been excluded from the Company’s direct contribution. Expenses over which segment managers do not currently have discretionary control, such as certain technology and general and administrative costs are monitored by Management through shared cost centers and are not evaluated in the measurement of segment performance. The following tables summarize the financial performance of the Company’s reporting segments: Three Months Ended March 31, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 768,723 $ 297,236 $ 230,497 $ 81,985 $ 1,378,441 Direct costs ( 618,037 ) ( 188,969 ) ( 220,906 ) ( 64,310 ) ( 1,092,222 ) Direct contribution 150,686 108,267 9,591 17,675 286,219 Operating expenses and indirect costs of net revenues ( 195,375 ) Income from operations 90,844 Other income (expenses): Interest income and other financial gains 25,071 Interest expense and other financial losses ( 91,289 ) Foreign currency losses ( 15,089 ) Net income before income tax expense $ 9,537 Three Months Ended March 31, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 397,447 $ 132,875 $ 94,753 $ 27,016 $ 652,091 Direct costs ( 322,628 ) ( 101,025 ) ( 114,762 ) ( 27,604 ) ( 566,019 ) Direct contribution 74,819 31,850 ( 20,009 ) ( 588 ) 86,072 Operating expenses and indirect costs of net revenues ( 115,766 ) Loss from operations ( 29,694 ) Other income (expenses): Interest income and other financial gains 36,784 Interest expense and other financial losses ( 23,584 ) Foreign currency losses ( 186 ) Net loss before income tax expense $ ( 16,680 ) The following table summarizes the allocation of property and equipment, net based on geography: March 31, December 31, 2021 2020 (In thousands) US property and equipment, net $ 1,316 $ 586 Other countries Argentina 137,270 123,589 Brazil 187,668 171,409 Mexico 102,135 73,315 Other countries 30,251 22,785 $ 457,324 $ 391,098 Total property and equipment, net $ 458,640 $ 391,684 The following table summarizes the allocation of the goodwill and intangible assets based on geography: March 31, December 31, 2021 2020 (In thousands) US intangible assets $ 7,588 $ — Other countries goodwill and intangible assets Argentina 12,022 12,617 Brazil 18,523 19,958 Mexico 34,579 35,338 Chile 23,713 24,707 Other countries 6,676 6,746 $ 95,513 $ 99,366 Total goodwill and intangible assets $ 103,101 $ 99,366 Consolidated net revenues by similar products and services for the three-month periods ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Consolidated Net Revenues 2021 2020 (In thousands) Commerce $ 910,624 $ 380,710 Fintech 467,817 271,381 Total $ 1,378,441 $ 652,091 |
Fair Value Measurement Of Asset
Fair Value Measurement Of Assets And Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Fair Value Measurement Of Assets And Liabilities | 8. Fair value measurement of assets and liabilities The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2021 (Level 1) (Level 2) (Level 3) 2020 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 166,133 $ 166,133 $ — $ — $ 166,483 $ 166,483 $ — $ — Sovereign Debt Securities — — — — 37,654 37,654 — — Restricted Cash and cash equivalents: Money Market Funds 130,886 130,886 — — 257,695 257,695 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 144,249 144,249 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 562,797 562,797 — — 565,705 565,705 — — Sovereign Debt Securities 270,152 270,152 — — 666,837 666,837 — — Other Assets: Derivative Instruments 17,477 — — 17,477 199 — — 199 Total Financial Assets $ 1,147,445 $ 1,129,968 $ — $ 17,477 $ 1,838,822 $ 1,838,623 $ — $ 199 Liabilities: Contingent considerations $ 4,684 $ — $ — $ 4,684 $ 4,622 $ — $ — $ 4,622 Long-term retention plan 69,331 — 69,331 — 136,816 — 136,816 — Derivative Instruments 3,708 — — 3,708 13,964 — — 13,964 Total Financial Liabilities $ 77,723 $ — $ 69,331 $ 8,392 $ 155,402 $ — $ 136,816 $ 18,586 As of March 31, 2021 and December 31, 2020, the Company’s financial assets valued at fair value consisted of assets valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company assumptions. Fair value of derivative instruments are determined considering the prevailing risk free interest rate and spot exchange rate. As of March 31, 2021 and December 31, 2020 , the Company ’s liabilities were valued at fair value using Level 2 inputs and Level 3 inputs (valuations based on unobservable inputs reflecting Company assumptions). Fair value of contingent considerations are determined based on the probability of achievement of the performance targets arising from each acquisition, as well as the Company’s historical experience with similar arrangements. Fair value of derivative instruments are determined considering the prevailing risk free interest rate and spot exchange rate. As of March 31, 2021 and December 31, 2020, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value mainly because of their short-term maturity. These assets and liabilities included cash, cash equivalents, restricted cash and cash equivalents and short-term investments (excluding money markets funds and debt securities), accounts receivable, credit cards receivable and other means of payment, loans receivable, funds payable to customers and amounts due to merchants, other assets (excluding derivative instruments), accounts payable, salaries and social security payable (excluding variable LTRP), taxes payable, provisions and other liabilities (excluding contingent considerations and derivative instruments) . As of March 31, 2021 and December 31, 2020, the estimated fair value of the 2028 Notes (liability component), which is based on Level 2 inputs, is $ 333,759 thousands and $ 672,345 thousands, respectively, and were determined based on market interest rates. The rest of the loans payable and other financial liabilities approximate their fair value because the effective interest rates are not materially different from market interest rates. The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of March 31, 2021 and December 31, 2020: Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2021 (Level 2) 2020 (Level 2) (In thousands) Assets Time Deposits $ 305,746 $ 305,746 $ 158,818 $ 158,818 Accounts receivable, net 64,815 64,815 49,691 49,691 Credit Cards receivable and other means of payment, net 883,670 883,670 863,073 863,073 Loans receivable, net 435,449 435,449 401,655 401,655 Other assets 263,316 263,316 236,432 236,432 Total Assets $ 1,952,996 $ 1,952,996 $ 1,709,669 $ 1,709,669 Liabilities Accounts payable and accrued expenses $ 612,206 $ 612,206 $ 767,336 $ 767,336 Funds payable to customers and amounts due to merchants 1,527,971 1,527,971 1,733,095 1,733,095 Salaries and social security payable 144,530 144,530 120,394 120,394 Taxes payable 240,167 240,167 215,918 215,918 Loans payable and other financial liabilities (*) 2,174,438 2,205,705 1,409,269 1,479,165 Other liabilities 65,463 65,463 110,139 110,139 Total Liabilities $ 4,764,775 $ 4,796,042 $ 4,356,151 $ 4,426,047 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. As of March 31, 2021 and December 31, 2020 , the Company held no direct investments in auction rate securities and does no t have any non-financial assets or liabilities measured at fair value. As of March 31, 2021 and December 31, 2020 , the fair value of money market funds and sovereign debt securities classified as available for sale securities are as follows: March 31, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,133 $ — $ — $ 166,133 Total Cash and cash equivalents $ 166,133 $ — $ — $ 166,133 Restricted cash and cash equivalents Money Market Funds $ 130,886 $ — $ — $ 130,886 Total Restricted cash and cash equivalents $ 130,886 $ — $ — $ 130,886 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 561,606 $ 1,192 $ ( 1 ) $ 562,797 Sovereign Debt Securities (1) 111,111 422 — 111,533 Total Short-term investments $ 672,717 $ 1,614 $ ( 1 ) $ 674,330 Long-term investments Sovereign Debt Securities (1) $ 159,059 $ 86 $ ( 526 ) $ 158,619 Total Long-term investments $ 159,059 $ 86 $ ( 526 ) $ 158,619 Total $ 1,128,795 $ 1,700 $ ( 527 ) $ 1,129,968 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.) December 31, 2020 Cost Financial Gains Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,483 $ — $ 166,483 Sovereign Debt Securities (1) 37,595 59 37,654 Total Cash and cash equivalents $ 204,078 $ 59 $ 204,137 Restricted Cash and cash equivalents Money Market Funds $ 257,695 $ — $ 257,695 Sovereign Debt Securities (1) 144,098 151 144,249 Total Restricted Cash and cash equivalents $ 401,793 $ 151 $ 401,944 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee)(1) $ 559,487 $ 6,218 $ 565,705 Sovereign Debt Securities (1) 514,894 1,889 516,783 Total Short-term investments $ 1,074,381 $ 8,107 $ 1,082,488 Long-term investments Sovereign Debt Securities (1) $ 149,938 $ 116 $ 150,054 Total Long-term investments $ 149,938 $ 116 $ 150,054 Total $ 1,830,190 $ 8,433 $ 1,838,623 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.) . As of March 31, 2021 , the estimated fair values (in thousands of U.S. dollars) of money market funds and sovereign debt securities classified by their effective maturities are as follows: One year or less 971,349 One year to two years 149,989 Two years to three years 563 Three years to four years 7,592 More than five years 475 Total $ 1,129,968 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. Commitments and Contingencies Litigation and Other Legal Matters The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers probable that future costs will be incurred and such costs can be reasonably estimated. Proceeding-related liabilities are based on developments to date and historical information related to actions filed against the Company. As of March 31, 2021 , the Company had accounted for estimated liabilities involving proceeding-related contingencies and other estimated contingencies of $ 8,726 thousands to cover legal actions against the Company in which its Management has assessed the likelihood of a final adverse outcome as probable. Expected legal costs related to litigations are accrued when the legal service is actually provided. In addition, as of March 31, 2021, the Company and its subsidiaries are subject to certain legal actions considered by the Company’s Management and its legal counsels to be reasonably possible for an estimated aggregate amount up to $ 55,699 thousands. No loss amounts have been accrued for such reasonably possible legal actions. Brazilian preliminary injunction against the Brazilian tax authorities On November 6, 2014, the Brazilian subsidiaries, Mercadolivre.com Atividades de Internet Ltda., Ebazar.com.br Ltda., Mercado Pago.com Representações Ltda. and the Argentine subsidiary, Mercado Libre S.R.L., filed a writ of mandamus and requested a preliminary injunction with the Federal Court of Osasco against the federal tax authority to avoid the IR (income tax) withholding over payments remitted by the Brazilian subsidiaries to MercadoLibre S.R.L. for the provision of IT support and assistance services by the latter, and requested reimbursement of the amounts improperly withheld over the course of the preceding five ( 5 ) years. The preliminary injunction was granted on the grounds that such withholding violated the convention signed between Brazil and Argentina that prevents double taxation. In August 2015, the injunction was revoked by the first instance judge in an award favorable to the federal tax authority. The Company appealed the decision and deposited with the court the disputed amounts. As of March 31, 2021 the total amount of the deposits were $ 65,563 thousands (which includes $ 5,918 thousands of interest). Such amounts are included in non-current other assets of the consolidated balance sheet. In June 2020, the Company’s appeal was dismissed. The Company submitted a new remedy before the same court in July 2020, which was dismissed on February 17, 2021. On March 18, 2021 the Company filed an appeal with the superior courts, which is now pending. Management’s opinion, based on the opinion of external legal counsel, is that the risk of losing the case is reasonably possible but not probable based on the technical merits of the Company ’s tax position and the existence of favorable decisions issued by the Federal Regional Courts. For that reason, the Company has not recorded any expense or liability for the disputed amounts. Other third parties have from time to time claimed, and others may claim in the future, that the Company was responsible for fraud committed against them, or that the Company has infringed their intellectual property rights. The underlying laws with respect to the potential liability of online intermediaries like the Company are unclear in the jurisdictions where the Company operates. Management believes that additional lawsuits alleging that the Company has violated copyright or trademark laws will be filed against the Company in the future. Intellectual property and regulatory claims, whether meritorious or not, are time consuming and costly to resolve, require significant amounts of management time, could require expensive changes in the Company’s methods of doing business, or could require the Company to enter into costly royalty or licensing agreements. The Company may be subject to patent disputes, and be subject to patent infringement claims as the Company’s services expand in scope and complexity. In particular, the Company may face additional patent infringement claims involving various aspects of the payments businesses. From time to time, the Company is involved in other disputes or regulatory inquiries that arise in the ordinary course of business. The number and significance of these disputes and inquiries are increasing as the Company’s business expands and the Company grows larger. Buyer protection program The Company provides consumers with a buyer protection program (“BPP”) for all transactions completed through the Company’s online payment solution (“Mercado Pago”). This program is designed to protect buyers in the Marketplace from losses due primarily to fraud or counterparty non-performance. The Company’s BPP provides protection to consumers by reimbursing them for the total value of a purchased item and the value of any shipping service paid if it does not arrive or does not match the seller’s description. The Company is entitled to recover from the third-party carrier companies performing the shipping service certain amounts paid under the BPP. Furthermore, in some specific circumstances (i.e. Black Friday, Hot Sale), the Company enters into insurance contracts with third-party insurance companies in order to cover contingencies that may arise from the BPP. The maximum potential exposure under this program is estimated to be the volume of payments on the Marketplace, for which claims may be made under the terms and conditions of the Company’s BPP. Based on historical losses to date, the Company does not believe that the maximum potential exposure is representative of the actual potential exposure. The Company records a liability with respect to losses under this program when they are probable and the amount can be reasonably estimated. As of March 31, 2021 and December 31, 2020, Management’s estimate of the maximum potential exposure related to the Company’s buyer protection program is $ 2,283,252 thousands and $ 2,535,041 thousands, respectively, for which the Company recorded an allowance of $ 7,384 thousands and $ 8,364 thousands , respectively. Commitments The Company entered into a purchase commitment with two U.S. suppliers in relation to the purchase of cloud platform services as follows: a) for a total amount of $ 240,500 thousands to be fully paid off between June 1, 2020 and May 31, 2024. As of March 31, 2021, the Company paid $ 62,860 thousands in relation thereto; and b) for a total amount of $ 30,000 thousands to be fully paid off between November 24, 2019 and March 23, 2023. As of March 31, 2021, the Company paid $ 7,670 thousands in relation thereto. |
Long Term Retention Plan
Long Term Retention Plan | 3 Months Ended |
Mar. 31, 2021 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plan | 10. Long term retention program (“LTRP”) The following table summarizes the 2012, 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 long term retention program accrued compensation expense for the three-month periods ended March 31, 2021 and 2020, which are payable in cash according to the decisions made by the Board of Directors: Three Months Ended March 31, 2021 2020 (In thousands) LTRP 2012 — 69 LTRP 2014 — 126 LTRP 2015 178 1,272 LTRP 2016 ( 538 ) 2,435 LTRP 2017 ( 708 ) 2,706 LTRP 2018 ( 210 ) 1,556 LTRP 2019 8,376 3,663 LTRP 2020 9,652 3,837 LTRP 2021 6,166 — Total LTRP $ 22,916 $ 15,664 |
Loans Payable And Other Financi
Loans Payable And Other Financial Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Loans Payable And Other Financial Liabilities [Abstract] | |
Loans Payable And Other Financial Liabilities | 11. Loans payable and other financial liabilities The following table summarizes the Company’s Loans payable and other financial liabilities as of March 31, 2021 and December 31, 2020: Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity March 31, 2021 December 31, 2020 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 1.44 % April 2021 $ 45,044 $ 92,895 Brazilian Subsidiary Brazilian Reais — — % — — 70,267 Brazilian Subsidiary Brazilian Reais Variable CDI + 3.25 % May 2021 39,478 42,693 Brazilian Subsidiary Brazilian Reais Variable CDI + 2.10 % June 2021 26,920 29,218 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % April 2021 17,945 18,418 Argentine Subsidiary Argentine Pesos Fixed 37.75 % May 2021 13,185 14,400 Uruguayan Subsidiary Uruguayan Pesos Fixed 6.25 % September 2021 7,921 — Uruguayan Subsidiary Uruguayan Pesos Fixed 5.37 % April 2021 4,793 13,406 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 31.76 % April 2021 37,178 18,311 Argentine Subsidiary Argentine Pesos Fixed 34.84 % April 2021 5,977 — Brazilian Subsidiary (*) Brazilian Reais Variable CDI + 0.55 % July 2021 52,978 58,437 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 6.46 % April 2021 20,808 20,055 Argentine Subsidiary Argentine Pesos Fixed 39.21 % April - May 2021 124,376 116,140 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable CDI + 0.52 to 0.80 % June 2021 22,854 — Brazilian Subsidiary Brazilian Reais Variable 107 % to 122 % of CDI January - March 2022 43,460 — 2028 Notes 1,124 6,649 2026 Sustainability Notes 2,006 — 2031 Notes 4,618 — Finance lease obligations 6,251 7,394 Credit card collateralized debt 11,842 12,920 Collateralized debt 25,782 25,342 Other lines of credit — 1,848 $ 514,540 $ 548,393 Non Current loans payable and other financial liabilities: 2028 Notes 301,368 595,800 2026 Sustainability Notes 396,282 — 2031 Notes 693,347 — Finance lease obligations 18,050 16,261 Collateralized debt 250,851 248,815 $ 1,659,898 $ 860,876 (*) Under the terms of the loan agreement, the Company transferred U.S. treasury notes to an account owned by the Company but under the sole control and dominion of the escrow agent as collateral. This collateral is accounted for in short-term investments and its coupon payment is accounted for in Restricted cash and cash equivalents of the consolidated balance sheet. See Notes 12 and 13 to these interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively. 2.375% Sustainability Senior Notes Due 2026 and 3.125% Senior Notes Due 2031 On January 14, 2021, the Company closed a public offering of $ 400,000 thousands aggregate principal amount of 2.375 % Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $ 700,000 thousands aggregate principal amount of 3.125 % Notes due 2031 (the “2031 Notes”, and together with the 2026 Sustainability Notes, the “Notes”). The Company will pay interest on the Notes on January 14 and July 14 of each year, beginning on July 14, 2021. The 2026 Sustainability Notes will mature on January 14, 2026 , and the 2031 Notes will mature on January 14, 2031 . In connection with the Notes, the Company capitalized $ 10 ,647 thousands of debt issuance costs, which are amortized during the term of the Notes. Certain of the Company ’ s subsidiaries (the “Subsidiary Guarantors”) fully and unconditionally guarantee the payment of principal, premium, if any, interest, and all other amounts in respect of each of the Notes (the “Subsidiary Guarantees”). The initial Subsidiary Guarantors are MercadoLibre S.R.L., Ibazar.com Atividades de Internet Ltda., eBazar.com.br Ltda., Mercado Envios Servicos de Logistica Ltda., MercadoPago.com Representações Ltda., MercadoLibre Chile Ltda., MercadoLibre, S. de R.L. de C.V., DeRemate.com de México, S. de R.L. de C.V. and MercadoLibre Colombia Ltda. The Notes rank equally in right of payment with all of the Company ’ s other existing and future senior unsecured debt obligations from time to time outstanding. Each Subsidiary Guarantee will rank equally in right of payment with all of the Subsidiary Guarantor’s other existing and future senior unsecured debt obligations from time to time outstanding, except for statutory priorities under applicable local law. 2.00% Convertible Senior Notes Due 2028 On August 24, 2018, the Company issued $ 800,000 thousands of 2.00 % Convertible Senior Notes due 2028 and issued an additional $ 80,000 thousands of notes on August 31, 2018 pursuant to the partial exercise of the initial purchasers’ option to purchase such additional notes, for an aggregate principal amount of $ 880,000 thousands of 2.00 % Convertible Senior Notes due 2028 (collectively, the “2028 Notes”). The 2028 Notes are unsecured, unsubordinated obligations of the Company, which pay interest in cash semi-annually, on February 15 and August 15 of each year, at a rate of 2.00 % per annum. The 2028 Notes will mature on August 15, 2028 unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date. The 2028 Notes may be converted, under specific conditions, based on an initial conversion rate of 2.2553 shares of common stock per $ 1,000 principal amount of the 2028 Notes (equivalent to an initial conversion price of $ 443.40 per share of common stock), subject to adjustment as described in the indenture governing the 2028 Notes. For additional information regarding the 2028 Notes please refer to Note 2 and Note 16 to the audited consolidated financial statements for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the SEC. During the three-month period ended March 31, 2021, one Note was converted, for a total amount of $ 1 thousand. Additionally, d uring the first quarter of 2021, the conversion threshold was met and the Notes become convertible between April 1, 2021 and June 30, 2021. As of the date of issuance of these interim condensed consolidated financial statements, the Company received additional requests for conversion of $ 900 thousands. The determination of whether or not the Notes are convertible must continue to be performed on a quarterly basis. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. In connection with the issuance of the 2028 Notes, the Company paid $ 91,784 thousands, $ 11,472 thousands, $ 88,362 thousands, $ 104,095 thousands, $ 82,682 thousands, $ 120,012 thousands and $ 100,769 thousands (including transaction expenses) in August 2018, November 2018, June 2019, June 2020, August 2020, November 2020 and January 2021, respectively, to enter into capped call transactions with respect to shares of the common stock with certain financial institutions (the “2028 Notes Capped Call Transactions”). In addition, the Company paid $ 8,005 thousands in November 2019 to amend the strike and cap prices of the capped call transaction purchased in November 2018. The 2028 Notes Capped Call Transactions are expected generally to reduce the potential dilution upon conversion of the 2028 Notes in the event that the market price of the Company’s common stock is greater than the strike price and lower than the cap price of the 2028 Notes Capped Call Transactions. The cost of the 2028 Notes Capped Call Transactions is included as a net reduction to additional paid-in capital in the stockholders’ equity section of the consolidated balance sheets. In January 2021, the Company repurchased $ 440,000 thousands principal amount of the outstanding of the 2028 Notes. The total amount paid amounted to $ 1,865,076 thousands, which includes principal, interest accrued and premium. As a result, $ 439,992 thousands of the principal amount of the 2028 Notes remains outstanding as of March 31, 2021. The settlement consideration was first allocated to the extinguishment of the liability component of the 2028 Notes repurchased. The difference of $ 29,953 thousands between the fair value of the liability component and the net carrying amount of the liability component and unamortized debt issuance costs was recognized as a loss on debt extinguishment; in addition, $ 19,294 thousands paid as a premium was recognized as a loss in Interest expense and other financial losses line in the consolidated statement of income for the three-month period ended March 31, 2021. The remaining consideration of $ 1,484,279 thousands (net of income tax effects) was allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. The total estimated fair value of the 2028 Notes was $ 1,465,869 thousands and $ 3,416,819 thousands as of March 31, 2021 and December 31, 2020, respectively. The fair value was determined based on the closing trading price per $ 100 principal amount of the 2028 Notes as of the last day of trading for the period. The Company considered the fair value of the 2028 Notes as of March 31, 2021 and December 31, 2020 to be a Level 2 measurement. The fair value of the 2028 Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. Based on the $ 1,472.14 closing price of the Company’s common stock on March 31, 2021 , the if-converted value of the 2028 Notes exceeded their principal amount by $ 1,020,833 thousands. The following table presents the carrying amounts of the liability and equity components related to the 2028 Notes as of March 31, 2021 and December 31, 2020 : March 31, 2021 December 31, 2020 (In thousands) Amount of the equity component (1) $ 163,653 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 439,992 $ 879,993 Unamortized debt discount (2) ( 134,257 ) ( 275,299 ) Unamortized transaction costs related to the debt component ( 4,367 ) ( 8,894 ) Contractual coupon interest accrual 44,244 41,409 Contractual coupon interest payment ( 43,120 ) ( 34,760 ) Net carrying amount $ 302,492 $ 602,449 (1) Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of March 31, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.5 years. The following table presents the interest expense for the contractual interest, the accretion of debt discount and the amortization of debt issuance costs: Three month periods ended March 31, 2021 2020 (In thousands) Contractual coupon interest expense $ 2,836 $ 4,400 Amortization of debt discount 4,355 6,307 Amortization of debt issuance costs 102 135 Total interest expense related to the 2028 Notes $ 7,293 $ 10,842 |
Securitization Transactions
Securitization Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Securitization Transactions [Abstract] | |
Securitization Transactions | 12. Securitization Transactions The process of securitization consists of the issuance of securities collateralized by a pool of assets through a special purpose entity, often under a VIE. The Company securitizes financial assets associated with its credit cards and loans receivable portfolio. The Company’s securitization transactions typically involve the legal transfer of financial assets to bankruptcy remote special purpose entities (“SPEs”) or the acquisition of loans receivable portfolios through SPEs. The Company generally retains economic interests in the collateralized securitization transactions, which are retained in the form of subordinated interests. For accounting purposes, the Company is precluded from recording the transfers of assets in securitization transactions as sales or is required to consolidate the SPE. The Company securitizes certain credit cards receivable related to user’s purchases through Argentine SPEs. According to the SPE contracts, the Company has determined that it has no obligation to absorb losses or the right to receive benefits of the SPE that could be significant because it does not retain any equity certificate of participation or subordinated interest in the SPEs. As the Company does not control the vehicle, its assets, liabilities, and related results are not consolidated in the Company’s financial statements. Additionally, the Company intends to securitize certain credit cards receivable related to user’s purchases through Brazilian SPE. According to the SPE contract in place, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPE that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicle, the assets, liabilities, and related results are consolidated in its financial statements. The Company securitizes certain loans receivable through Brazilian, Argentine and Mexican SPEs, formed to securitize loans receivable provided by the Company to its users or purchased from financial institutions that grant loans to the Company’s users through Mercado Pago. According to the SPE contracts, the Company has determined that it has both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant because it retains the equity certificates of participation, and would therefore also be consolidated. When the Company controls the vehicle, it accounts the securitization transactions as if they were secured financing and therefore the assets, liabilities, and related results are consolidated in its financial statements. The following table summarizes the Company’s collateralized debt as of March 31, 2021: SPEs Collateralized debt as of March 31, 2021 Interest rate Currency Maturity Mercado Crédito Merchant Fundo de Investimento em Direitos Creditórios 1,769 DI plus 3.5 % Brazilian Reais June 2021 Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 51,364 DI plus 2.5 % Brazilian Reais November 2023 Fundo de Investimento Em DireitosCreditórios Arandu 173,713 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Consumo II 5,478 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos July 2021 Mercado Crédito VIII 2,726 Badlar rates plus 200 basis points with a min 29 % and a max 39 % Argentine Pesos July 2021 Mercado Crédito Consumo III 6,325 Badlar rates plus 200 basis points with a min 29 % and a max 41 % Argentine Pesos August 2021 Mercado Crédito IX 9,202 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos February 2022 Fideicomiso de administración y fuente de pago CIB/3369 26,056 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.34 % Mexican Pesos November 2022 This secured debt is issued by the SPEs and includes collateralized securities used to fund Mercado Credito business. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have recourse to the Company. Additionally, the cash flows generated by the SPEs are restricted to the payment of amounts due to third-party investors, but the Company retains the right to residual cash flows. The assets and liabilities of the SPEs are included in the Company’s interim condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 as follows: March 31, December 31, 2021 2020 Assets (In thousands) Current assets: Restricted cash and cash equivalents $ 100,758 $ 249,872 Credit cards receivable and other means of payments, net 136,693 — Loans receivable, net 133,588 113,846 Total current assets 371,039 363,718 Non-current assets: Long-term investments 1,596 — Loans receivable, net 10,106 9,581 Total non-current assets 11,702 9,581 Total assets $ 382,741 $ 373,299 Liabilities Current liabilities: Accounts payable and accrued expenses $ 136 $ 100 Loans payable and other financial liabilities 25,782 25,342 Total current liabilities 25,918 25,442 Non-current liabilities: Loans payable and other financial liabilities 250,851 248,815 Total non-current liabilities 250,851 248,815 Total liabilities $ 276,769 $ 274,257 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 13. Leases The Company leases certain fulfillment, cross-docking and services centers, office space and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2021 2020 Operating Leases (In thousands) Operating lease right-of-use assets $ 345,313 $ 303,214 Operating lease liabilities $ 344,528 $ 298,847 Finance Leases Property and equipment, at cost 34,994 29,798 Accumulated depreciation ( 5,730 ) ( 4,086 ) Property and equipment, net $ 29,264 $ 25,712 Loans payable and other financial liabilities $ 24,301 $ 23,655 The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases at March 31, 2021: Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 8 % Finance leases 13 % (*) Includes discount rates of leases in local currency and U.S dollar . The components of lease expense were as follows: Three months ended March 31, 2021 2020 (In thousands) Operating lease cost $ 16,105 $ 9,051 Finance lease cost: Depreciation of property and equipment 1,324 512 Interest on lease liabilities 837 508 Total finance lease cost $ 2,161 $ 1,020 Supplemental cash flow information related to leases was as follows: Three months ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 14,779 $ 8,590 Financing cash flows from finance leases 3,863 564 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 65,394 $ 14,580 Finance leases 6,197 663 The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases: Period Ending March 31, 2021 Operating Leases Finance Leases (In thousands) One year or less $ 69,830 $ 8,522 One year to two years 68,741 8,522 Two years to three years 65,053 7,405 Three years to four years 61,152 4,657 Four years to five years 49,032 1,642 Thereafter 126,023 — Total lease payments $ 439,831 $ 30,748 Less imputed interest ( 95,303 ) ( 6,447 ) Total $ 344,528 $ 24,301 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 14. Derivative instruments The Company designates certain derivatives as hedges of particular risks associated with forecasted purchases. These transactions, mainly currency forward contracts, are classified as cash flow hedges. As of March 31, 2021 the Company used foreign currency exchange contracts to hedge the foreign currency effects related to the forecasted purchase of MPOS devices in U.S. dollars owed by a Brazilian subsidiary whose functional currency is the Brazilian Reais. Pursuant to these contracts, the Company will buy a notional amount of $ 10,005 thousands in April 2021, $ 10,589 thousands in May 2021, $ 10,749 thousands in June 2021, $ 8,490 thousands in July 2021, $ 8,659 thousands in August 2021, $ 8,755 thousands in September 2021, $ 4,326 thousands in October 2021, $ 7,724 thousands in November 2021, $ 5,960 thousands in December 2021, $ 2,337 thousands in January 2022, $ 2,175 thousands in February 2022 and $ 2,675 thousands in March 2022 at fixed currency rates. The Company designated the foreign currency exchange contracts as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings in the same period the forecasted transaction affects earnings. As of March 31, 2021, the Company estimated that the whole amount of net derivative gains related to its cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. In addition, as of March 31, 2021, the Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions denominated in U.S. dollars of a Brazilian subsidiary, whose functional currency is the Brazilian Reais, which were not designated as hedges for accounting purposes. Pursuant to these contracts, the Company will buy a notional amount of $ 60,000 thousands in April 2021, $ 52,000 thousands in May 2021, $ 39,000 thousands in June 2021, $ 30,000 thousands in July 2021 and $ 24,000 thousands in August 2021 at fixed currency rates. Finally, the Company entered into certain foreign currency exchange contracts to hedge the foreign currency fluctuations related to certain transactions denominated in U.S. dollars of a Mexican subsidiary, whose functional currency is the Mexican Peso, which were not designated as hedges for accounting purposes. Pursuant to these contracts, the Company will buy a notional amount of $ 66,470 thousands in April 2021, $ 20,349 thousands in May in 2021, $ 27,000 thousands in June 2021 and $ 15,000 thousands in July 2021, at fixed currency rates. Foreign exchange contracts The fair values of the Company’s outstanding derivative instruments as of March 31, 2021 and December 31, 2020 were as follows: March 31, December 31, Balance sheet location 2021 2020 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 14,008 $ 199 Foreign exchange contracts designated as cash flow hedges Other current assets 3,469 — Foreign exchange contracts not designated as hedging instruments Other current liabilities 3,708 11,106 Foreign exchange contracts designated as cash flow hedges Other current liabilities — 2,858 The effects of derivative contracts on unaudited interim condensed consolidated of comprehensive income as of March 31, 2021 were as follows: Amount of Amount of (gain) loss reclassified December 31, Gain (Loss) recognized from accumulated March 31, 2020 in other comprehensive loss other comprehensive loss 2021 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 2,469 ) $ 5,561 $ 636 $ 3,728 The effects of derivative contracts on unaudited interim condensed consolidated statement of income for the three-month periods ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 (In thousands) Foreign exchange contracts not designated as hedging instruments $ 18,989 $ 16,767 |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Share Repurchase Program | 15. Share repurchase program On August 30, 2020, the Board of Directors of MercadoLibre authorized the Company to repurchase shares of the Company’s common stock, par value $ 0.001 per share, for aggregate consideration of up to $ 350,000 thousands. The Company expects to purchase shares at any time and from time to time, in compliance with applicable federal securities laws, through open-market purchases, block trades, derivatives, trading plans established in accordance with SEC rules, or privately negotiated transactions. The timing of repurchases will depend on factors including market conditions and prices, the Company’s liquidity requirements and alternative uses of capital. The share repurchase program expires on August 31, 2021 and may be suspended from time to time or discontinued, and there is no assurance as to the number of shares that will be repurchased under the program or that there will be any repurchases. As of March 31, 2021, the Company acquired 66,096 shares under the share repurchase program. The shares were acquired in the Argentine market and paid for in Argentine pesos at a price that reflects the additional cost of accessing US dollars through an indirect mechanism, because of restrictions imposed by the Argentine government for buying US dollars at the official exchange rate in Argentina. As a result, the Company recognized a foreign currency loss of $ 18,280 thousands for the three-month period ended March 31, 2021. |
Impact Of COVID-19 Pandemic
Impact Of COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2021 | |
Impact Of COVID-19 Pandemic [Abstract] | |
Impact Of COVID-19 Pandemic | 16. Impact of COVID-19 pandemic In March 2020, the outbreak of a novel strain of the coronavirus, COVID-19 was recognized as a pandemic by the World Health Organization, and the outbreak has become increasingly widespread around the world. Government-imposed total or partial lockdowns or curfews instituted throughout Latin America since March 2020, some of which have been subsequently extended, modified or rescinded, have led to a weakening of the macroeconomic environment, generating recession conditions and a devaluation of the local currencies in the countries in which the Company operates. The Company has thus far not been required to suspend its operations in any country, but the Company’s business was, and may in the future again be, negatively affected by the pandemic in terms of operations, consumer buying trends, and consequently, net revenues. Management believes that, given the uncertainty with respect to how long the pandemic will persist, what additional measures may be introduced by governments or private parties, what effect any such additional measures may have on our business or the macroeconomic impact of the pandemic in the countries where the Company operates, it is not possible to have certainty around business development and its cash generation until the outbreak of COVID-19 can be definitively contained. In terms of liquidity and cash management, relevant funding sources remain available at the geographical segment level and guaranteed senior notes were issued in January 2021 in an aggregate amount of $ 1,100,000 thousands. As of March 31, 2021, the Company’s main source of liquidity was $ 1,208,729 thousands of cash and cash equivalents and short-term investments, which excludes a $ 562,797 thousands investment related to the Central Bank of Brazil Mandatory Guarantee and a $ 71,270 thousands investment related to a guarantee for a secured line of credit in Brazil. Lastly, the revenues sources of the Company’s subsidiaries are denominated in local currency. As a result, the current weak macro-economic environment in certain countries in which the Company operates coupled with the devaluations of certain local currencies in those countries against the U.S. dollar could cause a decline in year-over-year net revenues as measured in U.S. dollars. Management has made its best estimation of the potential scenarios for 2021. However it is not possible to predict at this time with certainty the impact that COVID-19 could have and its effects, including its impact on the economies of the countries in which the Company operates, and therefore the extent of the impact on the Company’s financial condition and results of operations if conditions persist or materially deviate from those currently used in its estimates. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). 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 $ 552,837 thousands and $ 490,464 thousands as of March 31, 2021 and December 31, 2020, respectively. These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2021 and December 31, 2020. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 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. From the quarter ended March 31, 2021 the Company disclosed Net product revenues as a separate line of Net revenues following its growth in significance relative to Net service revenues. As a result, the Company has reclassified the corresponding amount of the three month period ended March 31, 2020 to the line Net product revenues for an amount of $ 12,199 thousands for comparative purposes. Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The Company has evaluated all subsequent events through the date these condensed consolidated financial statements were issued. The condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Company’s Form 10-K for the year ended December 31, 2020. During the three-month period ended March 31, 2021, there were no material updates made to the Company’s significant accounting policies. |
Revenue Recognition | Revenue recognition Revenue recognition criteria for the services provided and goods sold by the Company are described in note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Receivables are presented net of allowance for doubtful accounts, loans receivable and chargebacks of $ 176,912 thousands and $ 126,661 thousands as of March 31, 2021 and December 31, 2020, respectively. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. Deferred revenue as of December 31, 2020 and 2019 was $ 32,519 thousands and $ 16,590 thousands, respectively, of which $ 9,413 thousands and $ 5,562 thousands were recognized as revenue during the three-month periods ended March 31, 2021 and 2020, respectively. As of March 31, 2021, total deferred revenue was $ 18,556 thousands, mainly due to fees related to listing and optional feature services billed and loyalty programs that are expected to be recognized as revenue in the coming months. |
Digital Assets | Digital Assets During the first quarter of 2021, the Company purchased an aggregate amount of $ 7,800 thousands in bitcoins. The Company accounts for its digital assets — bitcoins — 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 determines the fair value of its digital assets in accordance with ASC 820, Fair Value Measurement. Impairment losses are recognized in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale. |
Repurchase Of 2.00% Convertible Senior Notes Due 2028 - Extinguishment Of Debt | Repurchase of 2.00% Convertible Senior Notes due 2028 - Extinguishment of debt The derecognition of a convertible debt is based on the principle that an entity is extinguishing the liability component and reacquiring the equity component that was recognized at issuance. This approach is applied whether the debt was settled in cash, shares, other assets (or any combination), or at maturity upon conversion or upon early extinguishment. The settlement consideration is first allocated to the extinguishment of the liability component equal to the fair value of that component immediately prior to extinguishment. Any difference between that allocated amount and the net carrying amount of the liability component and unamortized debt issuance costs should be recognized as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. Any paid premium included in the repurchase price should be recognized as a loss when the debt is extinguished. |
Foreign Currency Translation | Foreign currency translation All of the Company’s consolidated foreign operations use the local currency as their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive loss. Argentine currency status As of July 1, 2018, the Company transitioned its Argentinian operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company. Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the US dollar, to make payments abroad, either for foreign debt or the importation of goods or services, dividend payments and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government´s perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce and financial payments is the official exchange rate, which as of March 31, 2021 was 92.0 . The Company uses Argentina’s official exchange rate to record the accounts of Argentine subsidiaries. The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (In thousands) Assets $ 1,493,608 $ 1,470,885 Liabilities 1,154,563 1,230,326 Net Assets $ 339,045 $ 240,559 |
Income Taxes | Income taxes The Company is subject to U.S. and foreign income taxes. The Company accounts for income taxes following the liability method of accounting which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s income tax expense consists of taxes currently payable, if any, plus the change during the period in the Company’s deferred tax assets and liabilities. A valuation allowance is recorded when, based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized. Accordingly, Management periodically assesses the need to establish a valuation allowance for deferred tax assets considering positive and negative objective evidence related to the realization of the deferred tax assets. In connection with this assessment, Management considers, among other factors, the nature, frequency and magnitude of current and cumulative losses on an individual subsidiary basis, projections of future taxable income, the duration of statutory carryforward periods, as well as feasible tax planning strategies that would be employed by the Company to prevent tax loss carryforwards from expiring unutilized. Based on Management’s assessment of available objective evidence and considering the future effect of the Company’s initiatives to capture long-term business opportunities, the Company accounted for a valuation allowance in certain subsidiaries in its Mexican operations of $ 12,176 thousands and $ 14,186 thousands for the three-month periods ended March 31, 2021 and 2020, respectively. On June 10, 2019, the Argentine government enacted Law No. 27,506 (knowledge-based economy promotional regime), which established a regime that provides certain tax benefits for companies that meet specific criteria, such as companies that derive at least 70% of their revenues from certain specified activities related to the knowledge-based economy. The regime was suspended on January 20, 2020 until new rules for the application of the knowledge-based economy promotional regime were issued. On June 25, 2020, the Chamber of Deputies passed changes to the knowledge-based economy promotional regime. The Chamber of Senates proposed further amendments, which were returned to the Chamber of Deputies and finally approved on October 7, 2020. The approved regime is effective as of January 1, 2020 until December 31, 2029. Based on the amended promotional regime, companies that meet new specified criteria shall be entitled to: i) a reduction of the income tax burden of 60% (60% for micro and small enterprises, 40% for medium-sized enterprises and 20% for large enterprises) over the promoted activities for each fiscal year, applicable to both Argentine source income and foreign source income, ii) stability of the benefits established by the knowledge-based economy promotional regime (as long as the beneficiary is registered and in good standing), iii) a non-transferable tax credit bond amounting to 70% (which can be up to 80% in certain specific cases) of the Company’s contribution to the social security regime of every employee whose job is related to the promoted activities (caps on the number of employees are applicable). Such bonds can be used within 24 months from their issue date (which period can be extended for an additional 12 months in certain cases) to offset certain federal taxes, such as value-added tax, but they cannot be used to offset income tax. On December 20, 2020, Argentina’s Executive Power issued Decree No. 1034/2020, which set the rules to implement the provisions of the knowledge-based economy promotional regime. Eligible companies must enroll in a registry according to the terms and conditions to be established by the Application Authority, which will verify compliance with the requirements. The Decree also set the mechanism for calculating the level of investment in research and development, the level of employee retention, exports, among others. It also establishes that exports of services from companies participating in this regime will not be subject to export duties. On January 13, 2021, Argentina’s Ministry of Productive Development –current Application Authority of the knowledge-based economy promotional regime- issued Resolution No. 4/2021 which was followed by Disposition N° 11/2021 issued by the Under Secretariat of Knowledge Economy on February 12, 2021. Both rules establish further details on the requirements, terms, conditions, application, and compliance procedures to be eligible under the promotional regime. MercadoLibre S.R.L. has submitted the application to be eligible to the knowledge-based economy promotional regime; such eligibility remains subject to Argentine government approval. |
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 $ 1,173 thousands and $ 12,004 thousands as of March 31, 2021 and 2020, respectively. |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss The following table sets forth the Company’s accumulated other comprehensive loss as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 508,438 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 3,728 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 1,353 ) 754 $ ( 506,063 ) $ ( 468,284 ) The following tables summarize the changes in accumulated balances of other comprehensive loss for the three-months ended March 31, 2021: Unrealized Foreign Estimated tax (Losses) Gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 5,561 ( 41,869 ) ( 1,891 ) ( 38,199 ) Amount of (gain) loss reclassified from accumulated other comprehensive loss 636 — ( 216 ) 420 Net current period other comprehensive income (loss) 6,197 ( 41,869 ) ( 2,107 ) ( 37,779 ) Ending balance $ 3,728 $ ( 508,438 ) $ ( 1,353 ) $ ( 506,063 ) Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 636 ) Cost of net revenues Estimated tax benefit on unrealized gains 216 Income tax expense Total reclassifications for the period $ ( 420 ) Total, net of income taxes |
Use Of Estimates | Use of estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, accounting for allowances for doubtful accounts and chargeback provisions, allowance for loans receivables, inventories valuation reserves, recoverability of goodwill, intangible assets with indefinite useful lives and deferred tax assets, impairment of short-term and long-term investments, impairment of long-lived assets, compensation costs relating to the Company’s long term retention plan, fair value of convertible debt, fair value of investments, fair value of derivative instruments, income taxes and contingencies and determination of the incremental borrowing rate at commencement date of lease operating agreements. Actual results could differ from those estimates. |
Recently Adopted Accounting Standards & Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards On December 18, 2019 the FASB issued the ASU 2019-12 “Income taxes (Topic 740)—Simplifying the accounting for income taxes”. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles and also improve consistent application by clarifying and amending existing guidance, such as franchise taxes and interim recognition of enactment of tax laws or rate changes. The amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Company´s financial statements. Recently issued accounting pronouncements not yet adopted On August 5, 2020 the FASB issued the ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this update address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, accounting models for specific features are removed and amendments to the disclosure requirements are included. For contracts in an entity’s own equity, simplifies the settlement assessment by removing some requirements. Additionally, the amendments in this update affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is assessing the effects that the adoption of this accounting pronouncement may have on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Summary Of Significant Accounting Policies [Abstract] | |
Assets, Liabilities and Net Assets of Company's Argentinean Subsidiaries | March 31, December 31, 2021 2020 (In thousands) Assets $ 1,493,608 $ 1,470,885 Liabilities 1,154,563 1,230,326 Net Assets $ 339,045 $ 240,559 |
Accumulated Other Comprehensive Loss | March 31, December 31, 2021 2020 (In thousands) Accumulated other comprehensive loss: Foreign currency translation $ ( 508,438 ) $ ( 466,569 ) Unrealized gains (losses) on hedging activities 3,728 ( 2,469 ) Estimated tax (expense) benefit on unrealized gains (losses) ( 1,353 ) 754 $ ( 506,063 ) $ ( 468,284 ) |
Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss | Unrealized Foreign Estimated tax (Losses) Gains on Currency benefit hedging activities, net Translation (expense) Total (In thousands) Balances as of December 31, 2020 $ ( 2,469 ) $ ( 466,569 ) $ 754 $ ( 468,284 ) Other comprehensive income (loss) before reclassifications 5,561 ( 41,869 ) ( 1,891 ) ( 38,199 ) Amount of (gain) loss reclassified from accumulated other comprehensive loss 636 — ( 216 ) 420 Net current period other comprehensive income (loss) 6,197 ( 41,869 ) ( 2,107 ) ( 37,779 ) Ending balance $ 3,728 $ ( 508,438 ) $ ( 1,353 ) $ ( 506,063 ) |
Reclassifications Out Of Accumulated Other Comprehensive Loss | Amount of (Loss) Gain Reclassified from Details about Accumulated Accumulated Other Other Comprehensive Loss Comprehensive Affected Line Item Components Loss in the Statement of Income (In thousands) Unrealized losses on hedging activities $ ( 636 ) Cost of net revenues Estimated tax benefit on unrealized gains 216 Income tax expense Total reclassifications for the period $ ( 420 ) Total, net of income taxes |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Net Loss Per Share [Abstract] | |
Net (Loss) Income Per Share Of Common Stock | Three Months Ended March 31, 2021 2020 (In thousands) Basic Diluted Basic Diluted Net loss per common share $ ( 0.68 ) $ ( 0.68 ) $ ( 0.44 ) $ ( 0.44 ) Numerator: Net loss $ ( 34,012 ) $ ( 34,012 ) $ ( 21,109 ) $ ( 21,109 ) Dividends on preferred stock — — ( 1,000 ) ( 1,000 ) Net loss corresponding to common stock $ ( 34,012 ) $ ( 34,012 ) $ ( 22,109 ) $ ( 22,109 ) Denominator: Weighted average of common stock outstanding for Basic earnings per share 49,867,625 — 49,709,955 — Adjusted weighted average of common stock outstanding for Diluted earnings per share — 49,867,625 — 49,709,955 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments [Abstract] | |
Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments | March 31, December 31, 2021 2020 (In thousands) Cash and cash equivalents $ 862,720 $ 1,856,394 Restricted cash and cash equivalents Securitization Transactions $ 100,758 $ 249,872 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — 144,249 Bank account (Argentine Central Bank regulation) 185,560 237,511 Bank collateral account (Secured lines of credit guarantee) 574 574 Money Market Funds (Secured lines of credit guarantee) 38,586 19,469 Cash in bank account 158 155 Total restricted cash and cash equivalents $ 325,636 $ 651,830 Total cash, cash equivalents, restricted cash and cash equivalents (*) $ 1,188,356 $ 2,508,224 Short-term investments Time Deposits $ 305,746 $ 158,818 Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 562,797 565,705 Sovereign Debt Securities (Secured lines of credit guarantee) 71,270 71,244 Sovereign Debt Securities 40,263 445,539 Total short-term investments $ 980,076 $ 1,241,306 Long-term investments Sovereign Debt Securities $ 157,023 $ 150,054 Securitization Transactions 1,596 — Other Investments 16,982 16,057 Total long-term investments $ 175,601 $ 166,111 (*) Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule Of Accounts Receivable, Net | March 31, December 31, 2021 2020 (In thousands) On-line merchant $ 202,146 $ 180,063 Consumer 296,457 237,956 In-store merchant 77,273 61,452 Loans receivable 575,876 479,471 Allowance for uncollectible accounts ( 140,427 ) ( 77,816 ) Loans receivable, net $ 435,449 $ 401,655 |
Schedule Of Credit Quality Analysis Of Loans Receivables | March 31, December 31, 2021 2020 (In thousands) 1-30 days past due $ 45,623 $ 34,706 31-60 days past due 28,644 16,977 61 -90 days past due 27,412 13,239 91 -120 days past due 19,763 10,632 121 -150 days past due 16,381 5,315 151 -180 days past due 11,684 3,649 Total past due 149,507 84,518 To become due 426,369 394,953 Total $ 575,876 $ 479,471 |
Summary Of Allowance For Uncollectible Accounts Activity | March 31, 2021 2020 (In thousands) Balance at beginning of year $ 77,816 $ 20,444 Adoption of ASC 326 (1) - 4,977 Charged/credited to Net loss 85,997 24,419 Charges/Utilized /Currency translation adjustments/Write-offs ( 23,386 ) ( 19,477 ) Balance at end of period $ 140,427 $ 30,363 (1) Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 . |
Business Combinations, Goodwi_2
Business Combinations, Goodwill And Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
Composition Of Goodwill And Intangible Assets | March 31, December 31, 2021 2020 (In thousands) Goodwill $ 82,830 $ 85,211 Intangible assets with indefinite lives - Trademarks 7,628 7,751 - Digital assets 7,588 — Amortizable intangible assets - Licenses and others 4,797 4,932 - Non-compete agreement 3,356 3,426 - Customer list 13,635 14,010 - Trademarks 7,808 7,879 Total intangible assets $ 44,812 $ 37,998 Accumulated amortization ( 24,541 ) ( 23,843 ) Total intangible assets, net $ 20,271 $ 14,155 |
Changes In Carrying Amount Of Goodwill | Three Months Ended March 31, 2021 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the period $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 Effect of exchange rates changes ( 1,360 ) — ( 522 ) ( 170 ) ( 295 ) ( 34 ) ( 2,381 ) Balance, end of the period $ 18,402 $ 10,594 $ 31,175 $ 16,826 $ 4,095 $ 1,738 $ 82,830 Year Ended December 31, 2020 Brazil Argentina Mexico Chile Colombia Other Countries Total (In thousands) Balance, beginning of the year $ 29,072 $ 6,991 $ 32,196 $ 14,872 $ 3,312 $ 1,166 $ 87,609 Business Acquisitions — 3,603 1,062 1,241 1,246 748 7,900 Disposals ( 3,480 ) — — — — — ( 3,480 ) Effect of exchange rates changes ( 5,830 ) — ( 1,561 ) 883 ( 168 ) ( 142 ) ( 6,818 ) Balance, end of the year $ 19,762 $ 10,594 $ 31,697 $ 16,996 $ 4,390 $ 1,772 $ 85,211 |
Expected Intangible Asset Amortization Expense | For year ended 12/31/2021 $ 2,450 For year ended 12/31/2022 1,242 For year ended 12/31/2023 973 For year ended 12/31/2024 341 Thereafter 49 $ 5,055 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Financial Performance Of Company's Reporting Segments | Three Months Ended March 31, 2021 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 768,723 $ 297,236 $ 230,497 $ 81,985 $ 1,378,441 Direct costs ( 618,037 ) ( 188,969 ) ( 220,906 ) ( 64,310 ) ( 1,092,222 ) Direct contribution 150,686 108,267 9,591 17,675 286,219 Operating expenses and indirect costs of net revenues ( 195,375 ) Income from operations 90,844 Other income (expenses): Interest income and other financial gains 25,071 Interest expense and other financial losses ( 91,289 ) Foreign currency losses ( 15,089 ) Net income before income tax expense $ 9,537 Three Months Ended March 31, 2020 Brazil Argentina Mexico Other Countries Total (In thousands) Net revenues $ 397,447 $ 132,875 $ 94,753 $ 27,016 $ 652,091 Direct costs ( 322,628 ) ( 101,025 ) ( 114,762 ) ( 27,604 ) ( 566,019 ) Direct contribution 74,819 31,850 ( 20,009 ) ( 588 ) 86,072 Operating expenses and indirect costs of net revenues ( 115,766 ) Loss from operations ( 29,694 ) Other income (expenses): Interest income and other financial gains 36,784 Interest expense and other financial losses ( 23,584 ) Foreign currency losses ( 186 ) Net loss before income tax expense $ ( 16,680 ) |
Allocation Of Property And Equipment Based On Geography | March 31, December 31, 2021 2020 (In thousands) US property and equipment, net $ 1,316 $ 586 Other countries Argentina 137,270 123,589 Brazil 187,668 171,409 Mexico 102,135 73,315 Other countries 30,251 22,785 $ 457,324 $ 391,098 Total property and equipment, net $ 458,640 $ 391,684 |
Allocation Of Goodwill And Intangible Assets Based On Geography | March 31, December 31, 2021 2020 (In thousands) US intangible assets $ 7,588 $ — Other countries goodwill and intangible assets Argentina 12,022 12,617 Brazil 18,523 19,958 Mexico 34,579 35,338 Chile 23,713 24,707 Other countries 6,676 6,746 $ 95,513 $ 99,366 Total goodwill and intangible assets $ 103,101 $ 99,366 |
Consolidated Net Revenues By Similar Products And Services | Three Months Ended March 31, Consolidated Net Revenues 2021 2020 (In thousands) Commerce $ 910,624 $ 380,710 Fintech 467,817 271,381 Total $ 1,378,441 $ 652,091 |
Fair Value Measurement Of Ass_2
Fair Value Measurement Of Assets And Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurement Of Assets And Liabilities [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | Quoted Prices in Quoted Prices in Balances as of active markets for Significant other Unobservable Balances as of active markets for Significant other Unobservable March 31, identical Assets observable inputs inputs December 31, identical Assets observable inputs inputs Description 2021 (Level 1) (Level 2) (Level 3) 2020 (Level 1) (Level 2) (Level 3) (In thousands) Assets Cash and Cash Equivalents: Money Market Funds $ 166,133 $ 166,133 $ — $ — $ 166,483 $ 166,483 $ — $ — Sovereign Debt Securities — — — — 37,654 37,654 — — Restricted Cash and cash equivalents: Money Market Funds 130,886 130,886 — — 257,695 257,695 — — Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) — — — — 144,249 144,249 — — Investments: Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) 562,797 562,797 — — 565,705 565,705 — — Sovereign Debt Securities 270,152 270,152 — — 666,837 666,837 — — Other Assets: Derivative Instruments 17,477 — — 17,477 199 — — 199 Total Financial Assets $ 1,147,445 $ 1,129,968 $ — $ 17,477 $ 1,838,822 $ 1,838,623 $ — $ 199 Liabilities: Contingent considerations $ 4,684 $ — $ — $ 4,684 $ 4,622 $ — $ — $ 4,622 Long-term retention plan 69,331 — 69,331 — 136,816 — 136,816 — Derivative Instruments 3,708 — — 3,708 13,964 — — 13,964 Total Financial Liabilities $ 77,723 $ — $ 69,331 $ 8,392 $ 155,402 $ — $ 136,816 $ 18,586 |
Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost | Balances as of Significant other Balances as of Significant other March 31, observable inputs December 31, observable inputs 2021 (Level 2) 2020 (Level 2) (In thousands) Assets Time Deposits $ 305,746 $ 305,746 $ 158,818 $ 158,818 Accounts receivable, net 64,815 64,815 49,691 49,691 Credit Cards receivable and other means of payment, net 883,670 883,670 863,073 863,073 Loans receivable, net 435,449 435,449 401,655 401,655 Other assets 263,316 263,316 236,432 236,432 Total Assets $ 1,952,996 $ 1,952,996 $ 1,709,669 $ 1,709,669 Liabilities Accounts payable and accrued expenses $ 612,206 $ 612,206 $ 767,336 $ 767,336 Funds payable to customers and amounts due to merchants 1,527,971 1,527,971 1,733,095 1,733,095 Salaries and social security payable 144,530 144,530 120,394 120,394 Taxes payable 240,167 240,167 215,918 215,918 Loans payable and other financial liabilities (*) 2,174,438 2,205,705 1,409,269 1,479,165 Other liabilities 65,463 65,463 110,139 110,139 Total Liabilities $ 4,764,775 $ 4,796,042 $ 4,356,151 $ 4,426,047 (*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. |
Fair Value Of Money Market Funds, Short And Long-Term Investments Classified As Available For Sale Securities | March 31, 2021 Cost Financial Gains Financial Losses Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,133 $ — $ — $ 166,133 Total Cash and cash equivalents $ 166,133 $ — $ — $ 166,133 Restricted cash and cash equivalents Money Market Funds $ 130,886 $ — $ — $ 130,886 Total Restricted cash and cash equivalents $ 130,886 $ — $ — $ 130,886 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee) (1) $ 561,606 $ 1,192 $ ( 1 ) $ 562,797 Sovereign Debt Securities (1) 111,111 422 — 111,533 Total Short-term investments $ 672,717 $ 1,614 $ ( 1 ) $ 674,330 Long-term investments Sovereign Debt Securities (1) $ 159,059 $ 86 $ ( 526 ) $ 158,619 Total Long-term investments $ 159,059 $ 86 $ ( 526 ) $ 158,619 Total $ 1,128,795 $ 1,700 $ ( 527 ) $ 1,129,968 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.) December 31, 2020 Cost Financial Gains Estimated Fair Value (In thousands) Cash and cash equivalents Money Market Funds $ 166,483 $ — $ 166,483 Sovereign Debt Securities (1) 37,595 59 37,654 Total Cash and cash equivalents $ 204,078 $ 59 $ 204,137 Restricted Cash and cash equivalents Money Market Funds $ 257,695 $ — $ 257,695 Sovereign Debt Securities (1) 144,098 151 144,249 Total Restricted Cash and cash equivalents $ 401,793 $ 151 $ 401,944 Short-term investments Sovereign Debt Securities (Central Bank of Brazil Mandatory Guarantee)(1) $ 559,487 $ 6,218 $ 565,705 Sovereign Debt Securities (1) 514,894 1,889 516,783 Total Short-term investments $ 1,074,381 $ 8,107 $ 1,082,488 Long-term investments Sovereign Debt Securities (1) $ 149,938 $ 116 $ 150,054 Total Long-term investments $ 149,938 $ 116 $ 150,054 Total $ 1,830,190 $ 8,433 $ 1,838,623 (1) Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.) . |
Estimated Fair Values Of Cash Equivalents, Short-Term And Long-Term Investments, Effective Maturities | One year or less 971,349 One year to two years 149,989 Two years to three years 563 Three years to four years 7,592 More than five years 475 Total $ 1,129,968 |
Long Term Retention Plan (Table
Long Term Retention Plan (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long Term Retention Plan [Abstract] | |
Long Term Retention Plans Accrued Compensation Expense | Three Months Ended March 31, 2021 2020 (In thousands) LTRP 2012 — 69 LTRP 2014 — 126 LTRP 2015 178 1,272 LTRP 2016 ( 538 ) 2,435 LTRP 2017 ( 708 ) 2,706 LTRP 2018 ( 210 ) 1,556 LTRP 2019 8,376 3,663 LTRP 2020 9,652 3,837 LTRP 2021 6,166 — Total LTRP $ 22,916 $ 15,664 |
Loans Payable And Other Finan_2
Loans Payable And Other Financial Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans Payable And Other Financial Liabilities [Abstract] | |
Summary Of Loans Payable And Other Financial Liabilities | Book value as of Type of instrument Currency Interest Weighted Average Interest Rate Maturity March 31, 2021 December 31, 2020 (In thousands) Current loans payable and other financial liabilities: Loans from banks Chilean Subsidiary Chilean Pesos Fixed 1.44 % April 2021 $ 45,044 $ 92,895 Brazilian Subsidiary Brazilian Reais — — % — — 70,267 Brazilian Subsidiary Brazilian Reais Variable CDI + 3.25 % May 2021 39,478 42,693 Brazilian Subsidiary Brazilian Reais Variable CDI + 2.10 % June 2021 26,920 29,218 Mexican Subsidiary Mexican Peso Variable TIIE + 2.20 % April 2021 17,945 18,418 Argentine Subsidiary Argentine Pesos Fixed 37.75 % May 2021 13,185 14,400 Uruguayan Subsidiary Uruguayan Pesos Fixed 6.25 % September 2021 7,921 — Uruguayan Subsidiary Uruguayan Pesos Fixed 5.37 % April 2021 4,793 13,406 Secured lines of credit Argentine Subsidiary Argentine Pesos Fixed 31.76 % April 2021 37,178 18,311 Argentine Subsidiary Argentine Pesos Fixed 34.84 % April 2021 5,977 — Brazilian Subsidiary (*) Brazilian Reais Variable CDI + 0.55 % July 2021 52,978 58,437 Unsecured lines of credit Uruguayan Subsidiary Uruguayan Pesos Fixed 6.46 % April 2021 20,808 20,055 Argentine Subsidiary Argentine Pesos Fixed 39.21 % April - May 2021 124,376 116,140 Deposit Certificates Brazilian Subsidiary Brazilian Reais Variable CDI + 0.52 to 0.80 % June 2021 22,854 — Brazilian Subsidiary Brazilian Reais Variable 107 % to 122 % of CDI January - March 2022 43,460 — 2028 Notes 1,124 6,649 2026 Sustainability Notes 2,006 — 2031 Notes 4,618 — Finance lease obligations 6,251 7,394 Credit card collateralized debt 11,842 12,920 Collateralized debt 25,782 25,342 Other lines of credit — 1,848 $ 514,540 $ 548,393 Non Current loans payable and other financial liabilities: 2028 Notes 301,368 595,800 2026 Sustainability Notes 396,282 — 2031 Notes 693,347 — Finance lease obligations 18,050 16,261 Collateralized debt 250,851 248,815 $ 1,659,898 $ 860,876 (*) Under the terms of the loan agreement, the Company transferred U.S. treasury notes to an account owned by the Company but under the sole control and dominion of the escrow agent as collateral. This collateral is accounted for in short-term investments and its coupon payment is accounted for in Restricted cash and cash equivalents of the consolidated balance sheet. |
Carrying Amounts Of Liability And Equity Components | March 31, 2021 December 31, 2020 (In thousands) Amount of the equity component (1) $ 163,653 $ 327,305 2.00 % Convertible Senior Notes due 2028 $ 439,992 $ 879,993 Unamortized debt discount (2) ( 134,257 ) ( 275,299 ) Unamortized transaction costs related to the debt component ( 4,367 ) ( 8,894 ) Contractual coupon interest accrual 44,244 41,409 Contractual coupon interest payment ( 43,120 ) ( 34,760 ) Net carrying amount $ 302,492 $ 602,449 (1) Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. (2) As of March 31, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.5 years. |
Summary Of Interest Expense For Contractual Interest And Accretion Of Debt Discount | Three month periods ended March 31, 2021 2020 (In thousands) Contractual coupon interest expense $ 2,836 $ 4,400 Amortization of debt discount 4,355 6,307 Amortization of debt issuance costs 102 135 Total interest expense related to the 2028 Notes $ 7,293 $ 10,842 |
Securitization Transactions (Ta
Securitization Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Securitization Transactions [Abstract] | |
Collateralized Debt | SPEs Collateralized debt as of March 31, 2021 Interest rate Currency Maturity Mercado Crédito Merchant Fundo de Investimento em Direitos Creditórios 1,769 DI plus 3.5 % Brazilian Reais June 2021 Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados 51,364 DI plus 2.5 % Brazilian Reais November 2023 Fundo de Investimento Em DireitosCreditórios Arandu 173,713 DI plus 1.75 % Brazilian Reais June 2023 Mercado Crédito Consumo II 5,478 Badlar rates plus 200 basis points with a min 27 % and a max 37 % Argentine Pesos July 2021 Mercado Crédito VIII 2,726 Badlar rates plus 200 basis points with a min 29 % and a max 39 % Argentine Pesos July 2021 Mercado Crédito Consumo III 6,325 Badlar rates plus 200 basis points with a min 29 % and a max 41 % Argentine Pesos August 2021 Mercado Crédito IX 9,202 Badlar rates plus 200 basis points with a min 30 % and a max 44 % Argentine Pesos February 2022 Fideicomiso de administración y fuente de pago CIB/3369 26,056 The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 3.34 % Mexican Pesos November 2022 |
Assets And Liabilities Of The Trust | March 31, December 31, 2021 2020 Assets (In thousands) Current assets: Restricted cash and cash equivalents $ 100,758 $ 249,872 Credit cards receivable and other means of payments, net 136,693 — Loans receivable, net 133,588 113,846 Total current assets 371,039 363,718 Non-current assets: Long-term investments 1,596 — Loans receivable, net 10,106 9,581 Total non-current assets 11,702 9,581 Total assets $ 382,741 $ 373,299 Liabilities Current liabilities: Accounts payable and accrued expenses $ 136 $ 100 Loans payable and other financial liabilities 25,782 25,342 Total current liabilities 25,918 25,442 Non-current liabilities: Loans payable and other financial liabilities 250,851 248,815 Total non-current liabilities 250,851 248,815 Total liabilities $ 276,769 $ 274,257 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases | March 31, December 31, 2021 2020 Operating Leases (In thousands) Operating lease right-of-use assets $ 345,313 $ 303,214 Operating lease liabilities $ 344,528 $ 298,847 Finance Leases Property and equipment, at cost 34,994 29,798 Accumulated depreciation ( 5,730 ) ( 4,086 ) Property and equipment, net $ 29,264 $ 25,712 Loans payable and other financial liabilities $ 24,301 $ 23,655 |
Summary Of Weighted Average Remaining Lease Term And Discount Rate | Weighted average remaining lease term Operating leases 7 Years Finance leases 4 Years Weighted average discount rate (*) Operating leases 8 % Finance leases 13 % (*) Includes discount rates of leases in local currency and U.S dollar . |
Components Of Lease Expense | Three months ended March 31, 2021 2020 (In thousands) Operating lease cost $ 16,105 $ 9,051 Finance lease cost: Depreciation of property and equipment 1,324 512 Interest on lease liabilities 837 508 Total finance lease cost $ 2,161 $ 1,020 |
Supplemental Cash Flow Information Related To Leases | Three months ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 14,779 $ 8,590 Financing cash flows from finance leases 3,863 564 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 65,394 $ 14,580 Finance leases 6,197 663 |
Maturities Of Lease Liabilities | Period Ending March 31, 2021 Operating Leases Finance Leases (In thousands) One year or less $ 69,830 $ 8,522 One year to two years 68,741 8,522 Two years to three years 65,053 7,405 Three years to four years 61,152 4,657 Four years to five years 49,032 1,642 Thereafter 126,023 — Total lease payments $ 439,831 $ 30,748 Less imputed interest ( 95,303 ) ( 6,447 ) Total $ 344,528 $ 24,301 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments [Abstract] | |
Summary Of Outstanding Derivative Instruments | March 31, December 31, Balance sheet location 2021 2020 (In thousands) Derivatives Foreign exchange contracts not designated as hedging instruments Other current assets $ 14,008 $ 199 Foreign exchange contracts designated as cash flow hedges Other current assets 3,469 — Foreign exchange contracts not designated as hedging instruments Other current liabilities 3,708 11,106 Foreign exchange contracts designated as cash flow hedges Other current liabilities — 2,858 |
Effect Of Derivative Contracts On Comprehensive Income | Amount of Amount of (gain) loss reclassified December 31, Gain (Loss) recognized from accumulated March 31, 2020 in other comprehensive loss other comprehensive loss 2021 (In thousands) Foreign exchange contracts designated as cash flow hedges $ ( 2,469 ) $ 5,561 $ 636 $ 3,728 |
Effect Of Derivative Contracts On Income Statement | Three Months Ended March 31, 2021 2020 (In thousands) Foreign exchange contracts not designated as hedging instruments $ 18,989 $ 16,767 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2010USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Long-lived assets, intangible assets and goodwill located in the foreign operations | $ 552,837 | $ 490,464 | |||
Allowance for doubtful accounts, loan receivables and chargebacks | 176,912 | 126,661 | |||
Deferred Revenue | 18,556 | $ 32,519 | $ 16,590 | ||
Deferred Revenue, Revenue Recognized | 9,413 | $ 5,562 | |||
Net revenues | 1,378,441 | 652,091 | |||
Recognized gains in interest income and other financial gains | 1,173 | 12,004 | |||
Bitcoins [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible assets with indefinite lives | $ 7,800 | ||||
Argentina [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Foreign exchange rate | 92 | ||||
Mexico Segment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Valuation allowance in certain subsidiaries | $ 12,176 | 14,186 | |||
Product [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Net revenues | $ 147,537 | $ 12,199 | |||
Product [Member] | Restatement Adjustment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Net revenues | $ 12,199 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Assets, Liabilities And Net Assets Of Company's Argentinean Subsidiaries) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | $ 5,197,855 | $ 6,526,332 |
Liabilities | 5,228,259 | 4,874,754 |
Argentinean Subsidiaries [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Assets | 1,493,608 | 1,470,885 |
Liabilities | 1,154,563 | 1,230,326 |
Net Assets | $ 339,045 | $ 240,559 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Abstract] | ||
Foreign currency translation | $ (508,438) | $ (466,569) |
Unrealized gains (losses) on hedging activities | 3,728 | (2,469) |
Estimated tax expense on unrealized gains | (1,353) | 754 |
Accumulated other comprehensive loss | $ (506,063) | $ (468,284) |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Summary Of Changes In Accumulated Balances Of Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning Balance | $ 1,651,578 | [1] | $ 1,983,120 |
Net change in accumulated other comprehensive loss, net of income tax | (37,779) | (90,053) | |
Ending Balance | (30,404) | [1] | 1,866,567 |
Unrealized Gains (Losses) on Investments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, before tax | (2,469) | ||
Other comprehensive income (loss) before reclassifications, before tax | 5,561 | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, before tax | 636 | ||
Net current period other comprehensive income (loss), before tax | 6,197 | ||
Ending balance, before tax | 3,728 | ||
Foreign Currency Translation [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, before tax | (466,569) | ||
Other comprehensive income (loss) before reclassifications, before tax | (41,869) | ||
Net current period other comprehensive income (loss), before tax | (41,869) | ||
Ending balance, before tax | (508,438) | ||
Accumulated Other Comprehensive Loss [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance, Estimated tax benefit (expense) | 754 | ||
Other comprehensive income (loss) before reclassifications, Estimated tax benefit (expense) | (1,891) | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, Estimated tax benefit (expense) | (216) | ||
Net current period other comprehensive income (loss), Estimated tax benefit (expense) | (2,107) | ||
Ending balance, Estimated tax benefit (expense) | (1,353) | ||
Beginning Balance | (468,284) | (406,671) | |
Other comprehensive income (loss) before reclassifications, net tax | (38,199) | ||
Amount of (gain) loss reclassified from accumulated other comprehensive (loss) income, net of tax | 420 | ||
Net change in accumulated other comprehensive loss, net of income tax | (37,779) | ||
Ending Balance | $ (506,063) | $ (496,724) | |
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income and other financial gains | $ 25,071 | $ 36,784 | |
Cost of net revenues | 787,064 | 339,277 | |
Income tax loss | (43,549) | (4,429) | |
Net loss | (34,012) | [1] | $ (21,109) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax loss | 216 | ||
Net loss | (420) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income [Member] | Unrealized (Losses) Gains On Hedging Activities, Net [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of net revenues | $ (636) | ||
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Net Loss Per Share (Narrative)
Net Loss Per Share (Narrative) (Details) - USD ($) | Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2018 | Aug. 24, 2018 |
Debt Instrument [Line Items] | |||||
Convertible senior notes, issued | $ 1,100,000,000 | ||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, issued | $ 880,000,000 | $ 880,000,000 | |||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% |
Net Loss Per Share (Net (Loss)
Net Loss Per Share (Net (Loss) Income Per Share Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net income attributable to MercadoLibre, Inc. per common share | |||
Net loss per common share, Basic | $ (0.68) | $ (0.44) | |
Net loss per common share, Diluted | $ (0.68) | $ (0.44) | |
Numerator: | |||
Net loss | $ (34,012) | [1] | $ (21,109) |
Dividends on preferred stock | (1,000) | ||
Net income corresponding to common stock, Basic | (34,012) | (22,109) | |
Net income corresponding to common stock, Diluted | $ (34,012) | $ (22,109) | |
Denominator: | |||
Weighted average of common stock outstanding for Basic earnings per share | 49,867,625 | 49,709,955 | |
Adjusted weighted average of common stock outstanding for Diluted earnings per share | 49,867,625 | 49,709,955 | |
[1] | The Total Equity of the Company as of March 31, 2021 decreased from $ 1,651,578 thousands to $( 30,404 ) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction. |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Narrative) (Details) - Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and short term investments | $ 562,797 | $ 709,954 |
Percent of electronic funds | 100.00% | 100.00% |
Cash, Cash Equivalents, Restr_4
Cash, Cash Equivalents, Restricted Cash And Cash Equivalent And Investments (Components Of Cash, Cash Equivalents, Restricted Cash And Cash Equivalents And Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | $ 862,720 | $ 1,856,394 | ||||
Restricted cash and cash equivalents | 325,636 | 651,830 | ||||
Total cash, cash equivalents, restricted cash and cash equivalents | 1,188,356 | [1] | 2,508,224 | [1] | $ 1,265,383 | $ 1,451,424 |
Short-term Investments | 980,076 | 1,241,306 | ||||
Long-term Investments | 175,601 | 166,111 | ||||
Time Deposits [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 305,746 | 158,818 | ||||
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 562,797 | 565,705 | ||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 71,270 | 71,244 | ||||
Sovereign Debt Securities [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Short-term Investments | 40,263 | 445,539 | ||||
Long-term Investments | 157,023 | 150,054 | ||||
Securitization Transactions [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Long-term Investments | 1,596 | |||||
Other Investments [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Long-term Investments | 16,982 | 16,057 | ||||
Securitization Transactions [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 100,758 | 249,872 | ||||
Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 144,249 | |||||
Bank Account (Argentine Central Bank Regulation) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 185,560 | 237,511 | ||||
Bank Collateral Account (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 574 | 574 | ||||
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | 38,586 | 19,469 | ||||
Cash In Bank Account [Member] | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash and cash equivalents | $ 158 | $ 155 | ||||
[1] | Cash, cash equivalents, restricted cash and cash equivalents as reported in the consolidated statements of cash flow. |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary Of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 575,876 | $ 479,471 |
Allowance for uncollectible accounts | (140,427) | (77,816) |
Loans receivables, net | 435,449 | 401,655 |
On-line Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 202,146 | 180,063 |
Consumer [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | 296,457 | 237,956 |
In-Store Merchant [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable | $ 77,273 | $ 61,452 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule Of Credit Quality Analysis Of Loans Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 575,876 | $ 479,471 |
1-30 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 45,623 | 34,706 |
31-60 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,644 | 16,977 |
61-90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 27,412 | 13,239 |
91 To 120 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,763 | 10,632 |
121 To 150 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 16,381 | 5,315 |
151 To 180 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 11,684 | 3,649 |
Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 149,507 | 84,518 |
To Become Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 426,369 | $ 394,953 |
Loans Receivable, Net (Summar_2
Loans Receivable, Net (Summary Of Allowance For Uncollectible Accounts Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Receivables [Abstract] | |||
Balance at beginning of year | $ 77,816 | $ 20,444 | |
Adoption of ASC 326 | [1] | 4,977 | |
Charged/credited to Net loss | 85,997 | 24,419 | |
Charges/Utilized/Currency translation adjustments/Write-offs | (23,386) | (19,477) | |
Balance at end of period | $ 140,427 | $ 30,363 | |
[1] | Cumulative pre-tax adjustments recorded to retained earnings as of January 1, 2020 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | |||
Aggregate amortization expense for intangible assets | $ 1,318 | $ 808 | |
Kiserty S.A. [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of acquisition | 100.00% | 100.00% | |
Aggregate purchase price for acquisition | $ 10,899 | ||
Business acquisition, cash paid | 8,500 | ||
Amount in escrow account | 225 | $ 225 | |
Fair value of contingent consideration | $ 2,174 | $ 2,174 | |
Net revenues | $ 2,061 |
Business Combinations, Goodwi_4
Business Combinations, Goodwill And Intangible Assets (Composition Of Goodwill And Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 82,830 | $ 85,211 | $ 87,609 |
Total intangible assets | 44,812 | 37,998 | |
Accumulated amortization | (24,541) | (23,843) | |
Total intangible assets, net | 20,271 | 14,155 | |
Licenses and Others [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 4,797 | 4,932 | |
Non-Compete Agreement [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 3,356 | 3,426 | |
Customer Lists [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 13,635 | 14,010 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | 7,808 | 7,879 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives | 7,628 | $ 7,751 | |
Digits Assets [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives | $ 7,588 |
Business Combinations, Goodwi_5
Business Combinations, Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Balance, beginning of the year | $ 85,211 | $ 87,609 |
Business Acquisitions | 7,900 | |
Disposals | (3,480) | |
Effect of exchange rates changes | (6,818) | |
Effect of exchange rates changes | (2,381) | |
Balance, end of the year | 82,830 | 85,211 |
Brazil [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 19,762 | 29,072 |
Disposals | (3,480) | |
Effect of exchange rates changes | (5,830) | |
Effect of exchange rates changes | (1,360) | |
Balance, end of the year | 18,402 | 19,762 |
Argentina [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 10,594 | 6,991 |
Business Acquisitions | 3,603 | |
Balance, end of the year | 10,594 | 10,594 |
Mexico [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 31,697 | 32,196 |
Business Acquisitions | 1,062 | |
Effect of exchange rates changes | (1,561) | |
Effect of exchange rates changes | (522) | |
Balance, end of the year | 31,175 | 31,697 |
Chile [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 16,996 | 14,872 |
Business Acquisitions | 1,241 | |
Effect of exchange rates changes | 883 | |
Effect of exchange rates changes | (170) | |
Balance, end of the year | 16,826 | 16,996 |
Colombia [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 4,390 | 3,312 |
Business Acquisitions | 1,246 | |
Effect of exchange rates changes | (168) | |
Effect of exchange rates changes | (295) | |
Balance, end of the year | 4,095 | 4,390 |
Other Countries [Member] | ||
Goodwill [Line Items] | ||
Balance, beginning of the year | 1,772 | 1,166 |
Business Acquisitions | 748 | |
Effect of exchange rates changes | (142) | |
Effect of exchange rates changes | (34) | |
Balance, end of the year | $ 1,738 | $ 1,772 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill And Intangible Assets (Expected Intangible Asset Amortization Expense) (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Business Combinations, Goodwill And Intangible Assets [Abstract] | |
For year ended 12/31/2021 | $ 2,450 |
For year ended 12/31/2022 | 1,242 |
For year ended 12/31/2023 | 973 |
For year ended 12/31/2024 | 341 |
Thereafter | 49 |
Total remaining amortization of intangible assets | $ 5,055 |
Segment Reporting (Financial Pe
Segment Reporting (Financial Performance Of Company's Reporting Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,378,441 | $ 652,091 | |
Direct costs | (1,092,222) | (566,019) | |
Direct contribution | 286,219 | 86,072 | |
Operating expenses and indirect costs of net revenues | (195,375) | (115,766) | |
Income (loss) from operations | 90,844 | (29,694) | |
Other income (expenses): | |||
Interest income and other financial gains | 25,071 | 36,784 | |
Interest expense and other financial losses | [1] | (91,289) | (23,584) |
Foreign currency losses | (15,089) | (186) | |
Net income (loss) before income tax expense | 9,537 | (16,680) | |
Operating Segments [Member] | Brazil Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 768,723 | 397,447 | |
Direct costs | (618,037) | (322,628) | |
Direct contribution | 150,686 | 74,819 | |
Operating Segments [Member] | Argentina Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 297,236 | 132,875 | |
Direct costs | (188,969) | (101,025) | |
Direct contribution | 108,267 | 31,850 | |
Operating Segments [Member] | Mexico Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 230,497 | 94,753 | |
Direct costs | (220,906) | (114,762) | |
Direct contribution | 9,591 | (20,009) | |
Operating Segments [Member] | Other Countries Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 81,985 | 27,016 | |
Direct costs | (64,310) | (27,604) | |
Direct contribution | $ 17,675 | $ (588) | |
[1] | Includes $ 49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase. |
Segment Reporting (Allocation O
Segment Reporting (Allocation Of Property And Equipment Based On Geography) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 458,640 | $ 391,684 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1,316 | 586 |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 137,270 | 123,589 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 187,668 | 171,409 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 102,135 | 73,315 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 30,251 | 22,785 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 457,324 | $ 391,098 |
Segment Reporting (Allocation_2
Segment Reporting (Allocation Of Goodwill And Intangible Assets Based On Geography) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 103,101 | $ 99,366 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 7,588 | |
Argentina [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 12,022 | 12,617 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 18,523 | 19,958 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 34,579 | 35,338 |
Chile [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 23,713 | 24,707 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | 6,676 | 6,746 |
Total Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total goodwill and intangible assets | $ 95,513 | $ 99,366 |
Segment Reporting (Consolidated
Segment Reporting (Consolidated Net Revenues By Similar Products And Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 1,378,441 | $ 652,091 |
Commerce [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | 910,624 | 380,710 |
Fintech [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Net revenues | $ 467,817 | $ 271,381 |
Fair Value Measurement Of Ass_3
Fair Value Measurement Of Assets And Liabilities (Narrative) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Auction Rate Securities [Member] | Direct Investment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-financial assets | $ 0 | $ 0 |
Non-financial liabilities | 0 | 0 |
2028 Convertible Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net carrying amount | $ 333,759,000 | $ 672,345,000 |
Fair Value Measurement Of Ass_4
Fair Value Measurement Of Assets And Liabilities (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | $ 17,477 | $ 199 |
Total Financial Assets | 1,147,445 | 1,838,822 |
Contingent considerations | 4,684 | 4,622 |
Long-term retention plan | 69,331 | 136,816 |
Derivative Instruments | 3,708 | 13,964 |
Total Financial Liabilities | 77,723 | 155,402 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Financial Assets | 1,129,968 | 1,838,623 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term retention plan | 69,331 | 136,816 |
Total Financial Liabilities | 69,331 | 136,816 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Assets | 17,477 | 199 |
Total Financial Assets | 17,477 | 199 |
Contingent considerations | 4,684 | 4,622 |
Derivative Instruments | 3,708 | 13,964 |
Total Financial Liabilities | 8,392 | 18,586 |
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 166,133 | 166,483 |
Restricted Cash and cash equivalents | 130,886 | 257,695 |
Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 166,133 | 166,483 |
Restricted Cash and cash equivalents | 130,886 | 257,695 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and cash equivalents | 144,249 | |
Investments | 562,797 | 565,705 |
Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and cash equivalents | 144,249 | |
Investments | 562,797 | 565,705 |
Sovereign Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 37,654 | |
Investments | 270,152 | 666,837 |
Sovereign Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 37,654 | |
Investments | $ 270,152 | $ 666,837 |
Fair Value Measurement Of Ass_5
Fair Value Measurement Of Assets And Liabilities (Fair Value Of Financial Assets And Liabilities Measured At Amortized Cost) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 1,952,996 | $ 1,709,669 | |
Liabilities | [1] | 4,764,775 | 4,356,151 |
Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 612,206 | 767,336 | |
Funds Payable to Customers And Amounts Due To Merchants [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 1,527,971 | 1,733,095 |
Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 144,530 | 120,394 | |
Tax Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 240,167 | 215,918 | |
Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 2,174,438 | 1,409,269 |
Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 65,463 | 110,139 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 1,952,996 | 1,709,669 | |
Liabilities | [1] | 4,796,042 | 4,426,047 |
Significant Other Observable Inputs (Level 2) [Member] | Accounts Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 612,206 | 767,336 | |
Significant Other Observable Inputs (Level 2) [Member] | Funds Payable to Customers And Amounts Due To Merchants [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 1,527,971 | 1,733,095 |
Significant Other Observable Inputs (Level 2) [Member] | Salaries and Social Security Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 144,530 | 120,394 | |
Significant Other Observable Inputs (Level 2) [Member] | Tax Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | 240,167 | 215,918 | |
Significant Other Observable Inputs (Level 2) [Member] | Loans Payable and Other Financial Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 2,205,705 | 1,479,165 |
Significant Other Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities | [1] | 65,463 | 110,139 |
Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 305,746 | 158,818 | |
Time Deposits [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 305,746 | 158,818 | |
Accounts Receivable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 64,815 | 49,691 | |
Accounts Receivable [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 64,815 | 49,691 | |
Credit Cards Receivable And Other Means Of Payments, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 883,670 | 863,073 | |
Credit Cards Receivable And Other Means Of Payments, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 883,670 | 863,073 | |
Loans Receivable, Net [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 435,449 | 401,655 | |
Loans Receivable, Net [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 435,449 | 401,655 | |
Other Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 263,316 | 236,432 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 263,316 | $ 236,432 | |
[1] | The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11. |
Fair Value Measurement Of Ass_6
Fair Value Measurement Of Assets And Liabilities (Fair Value Of Money Market Funds, Short And Long-Term Investments Classified As Available For Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | $ 1,128,795 | $ 1,830,190 | ||
Financial Gains | 1,700 | 8,433 | ||
Financial Losses | (527) | |||
Estimated Fair Value | 1,129,968 | 1,838,623 | ||
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 166,133 | 204,078 | ||
Financial Gains | 59 | |||
Estimated Fair Value | 166,133 | 204,137 | ||
Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 166,133 | 166,483 | ||
Estimated Fair Value | 166,133 | 166,483 | ||
Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 37,595 | |||
Financial Gains | 59 | |||
Estimated Fair Value | 37,654 | |||
Restricted Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 130,886 | 401,793 | ||
Financial Gains | 151 | |||
Estimated Fair Value | 130,886 | 401,944 | ||
Restricted Cash and Cash Equivalents [Member] | Money Market Funds (Secured Lines Of Credit Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 130,886 | 257,695 | ||
Estimated Fair Value | 130,886 | 257,695 | ||
Restricted Cash and Cash Equivalents [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 144,098 | |||
Financial Gains | 151 | |||
Estimated Fair Value | 144,249 | |||
Short Term Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 672,717 | 1,074,381 | ||
Financial Gains | 1,614 | 8,107 | ||
Financial Losses | (1) | |||
Estimated Fair Value | 674,330 | 1,082,488 | ||
Short Term Investments [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | [1] | 561,606 | 559,487 | |
Financial Gains | [1] | 1,192 | 6,218 | |
Financial Losses | [1] | (1) | ||
Estimated Fair Value | [1] | 562,797 | 565,705 | |
Short Term Investments [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 111,111 | [1] | 514,894 | |
Financial Gains | 422 | [1] | 1,889 | |
Estimated Fair Value | 111,533 | [1] | 516,783 | |
Long-term Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 159,059 | 149,938 | ||
Financial Gains | 86 | 116 | ||
Financial Losses | (526) | |||
Estimated Fair Value | 158,619 | 150,054 | ||
Long-term Investments [Member] | Sovereign Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | [1] | 159,059 | 149,938 | |
Financial Gains | [1] | 86 | 116 | |
Financial Losses | [1] | (526) | ||
Estimated Fair Value | [1] | $ 158,619 | $ 150,054 | |
[1] | Measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.) |
Fair Value Measurement Of Ass_7
Fair Value Measurement Of Assets And Liabilities (Estimated Fair Values Of Cash Equivalents, Short-Term And Long-Term Investments, Effective Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurement Of Assets And Liabilities [Abstract] | ||
One year or less | $ 971,349 | |
One year to two years | 149,989 | |
Two years to three years | 563 | |
Three years to four years | 7,592 | |
More than five years | 475 | |
Total | $ 1,129,968 | $ 1,838,623 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | ||
Reserves for proceeding-related contingencies | $ 8,726,000 | |
Aggregate amount for legal actions for which no loss amount has been accrued | 55,699,000 | |
Loss accrued for reasonably possible legal actions | $ 0 | |
Period of reimbursement of amounts improperly withheld | 5 years | |
Deposit with court | $ 65,563,000 | |
Accrued interests | $ 5,918,000 | |
Number of purchase commitments entered | item | 2 | |
Buyer Protection Program [Member] | ||
Loss Contingencies [Line Items] | ||
Provision for maximum potential exposure | $ 2,283,252,000 | $ 2,535,041,000 |
Product liability, contingency, recorded allowance | 7,384,000 | $ 8,364,000 |
Cloud Platform Services [Member] | ||
Loss Contingencies [Line Items] | ||
Paid in relation to the contract | 7,670,000 | |
Cloud Platform Services [Member] | Fully Paid Off Between June 1, 2020 And May 31, 2024 [Member] | ||
Loss Contingencies [Line Items] | ||
Purchase Commitment, Amount | 240,500,000 | |
Paid in relation to the contract | 62,860,000 | |
Cloud Platform Services [Member] | Fully Paid Off Between November 24, 2019 And March 23, 2023 [Member] | ||
Loss Contingencies [Line Items] | ||
Purchase Commitment, Amount | $ 30,000,000 |
Long Term Retention Plan (Long
Long Term Retention Plan (Long Term Retention Plans Accrued Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | $ 22,916 | $ 15,664 |
LTRP 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 69 | |
LTRP 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 126 | |
LTRP 2015 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 178 | 1,272 |
LTRP 2016 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | (538) | 2,435 |
LTRP 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | (708) | 2,706 |
LTRP 2018 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | (210) | 1,556 |
LTRP 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 8,376 | 3,663 |
LTRP 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | 9,652 | $ 3,837 |
LTRP 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long term retention plan | $ 6,166 |
Loans Payable And Other Finan_3
Loans Payable And Other Financial Liabilities (Narrative) (Details) | Aug. 24, 2018USD ($)$ / shares$ / item | Jan. 31, 2021USD ($) | Mar. 31, 2021USD ($)$ / shares$ / item | Jan. 14, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,100,000,000 | |||||||||||
Debt conversion, converted instrument additional amount requested | $ 900,000 | |||||||||||
Total amount paid, principal | 439,992,000 | |||||||||||
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 | |||||||||||
3.125% Notes Due 2031 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||
Debt instrument, interest rate | 3.125% | |||||||||||
Debt instrument, maturity date | Jan. 14, 2031 | |||||||||||
2026 Sustainability Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance costs | $ 10,000 | |||||||||||
2028 Convertible Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | 29,953,000 | |||||||||||
Paid in premium | 19,294,000 | |||||||||||
Remaining consideration allocated to reacquisition of equity component | 1,484,279,000 | |||||||||||
Amount paid to enter into capped call transactions | 100,769,000 | $ 120,012,000 | ||||||||||
Repurchased principal amount | 440,000,000 | |||||||||||
Total amount paid | $ 1,865,076,000 | |||||||||||
One Note Converted [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt conversion, converted instrument, principal amount | $ 1,000 | |||||||||||
Convertible Senior Notes [Member] | Initial Issuance - 2028 Convertible Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||||||
Convertible Senior Notes [Member] | Additional Issuance - 2028 Convertible Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 80,000,000 | |||||||||||
Convertible Senior Notes [Member] | 2028 Convertible Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 880,000,000 | $ 880,000,000 | ||||||||||
Debt instrument, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||
Debt instrument, maturity date | Aug. 15, 2028 | |||||||||||
Convertible senior notes, conversion rate | 2.2553% | |||||||||||
Converted instrument, principal amount used per conversion | $ / item | 1,000 | 100 | ||||||||||
Convertible senior notes, conversion price | $ / shares | $ 443.40 | |||||||||||
Amount paid to enter into capped call transactions | $ 82,682,000 | $ 104,095,000 | $ 8,005,000 | $ 88,362,000 | $ 11,472,000 | $ 91,784,000 | ||||||
Estimated fair value | $ 1,465,869,000 | $ 3,416,819,000 | ||||||||||
Common stock, closing price per share | $ / shares | $ 1,472.14 | |||||||||||
Debt instrument convertible, if-converted value in excess of principal | $ 1,020,833,000 | |||||||||||
Debt instrument outstanding | $ 439,992,000 | $ 879,993,000 |
Loans Payable And Other Finan_4
Loans Payable And Other Financial Liabilities (Summary Of Loans Payable And Other Financial Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 14, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Convertible notes, current | $ 1,124 | $ 6,649 | |
Finance lease obligations, current | 6,251 | 7,394 | |
Credit card collateralized debt | 11,842 | 12,920 | |
Collateralized debt, current | 25,782 | 25,342 | |
Other lines of credit, current | 1,848 | ||
Current loans payable and other financial liabilities | 514,540 | 548,393 | |
Convertible notes, noncurrent | 301,368 | 595,800 | |
Finance lease obligations, noncurrent | 18,050 | 16,261 | |
Collateralized debt, noncurrent | 250,851 | 248,815 | |
Non Current loans payable and other financial liabilities | 1,659,898 | 860,876 | |
Loan From Bank 1.44% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 45,044 | 92,895 | |
Debt weight average rate | 1.44% | ||
Loans From Banks, -% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | 70,267 | ||
Loans From Banks, CDI+3.25% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 39,478 | 42,693 | |
Loans From Banks, CDI+3.25% [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.25% | ||
Loans From Banks, CDI+2.10% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 26,920 | 29,218 | |
Loans From Banks, CDI+2.10% [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.10% | ||
Loans From Banks, TIIE+2.20% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 17,945 | 18,418 | |
Loans From Banks, TIIE+2.20% [Member] | TIIE [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.20% | ||
Loan From Banks 37.75% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 13,185 | 14,400 | |
Debt weight average rate | 37.75% | ||
Loan From Banks 6.25% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 7,921 | ||
Debt weight average rate | 6.25% | ||
Loan From Banks 5.37% [Member] | |||
Debt Instrument [Line Items] | |||
Loans from bank, current | $ 4,793 | 13,406 | |
Debt weight average rate | 5.37% | ||
Secured Lines Of Credit 31.76% [Member] | |||
Debt Instrument [Line Items] | |||
Lines of credit, current | $ 37,178 | 18,311 | |
Debt weight average rate | 31.76% | ||
Secured Lines Of Credit 34.84% [Member] | |||
Debt Instrument [Line Items] | |||
Lines of credit, current | $ 5,977 | ||
Debt weight average rate | 34.84% | ||
Secured Lines Of Credit, CDI+0.55% [Member] | |||
Debt Instrument [Line Items] | |||
Lines of credit, current | $ 52,978 | 58,437 | |
Secured Lines Of Credit, CDI+0.55% [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.55% | ||
Unsecured Line Of Credit 6.46% [Member] | |||
Debt Instrument [Line Items] | |||
Lines of credit, current | $ 20,808 | 20,055 | |
Debt weight average rate | 6.46% | ||
Unsecured Line Of Credit 39.21% [Member] | |||
Debt Instrument [Line Items] | |||
Lines of credit, current | $ 124,376 | $ 116,140 | |
Debt weight average rate | 39.21% | ||
Deposit Certifcates, CDI + 0.52-0.80% [Member] | |||
Debt Instrument [Line Items] | |||
Deposit Certificates | $ 22,854 | ||
Deposit Certifcates, 107% to 122% Of CDI [Member] | |||
Debt Instrument [Line Items] | |||
Deposit Certificates | 43,460 | ||
2.375% Sustainability Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, current | 2,006 | ||
Senior Notes, noncurrent | 396,282 | ||
Debt instrument, interest rate | 2.375% | ||
3.125% Notes Due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, current | 4,618 | ||
Senior Notes, noncurrent | $ 693,347 | ||
Debt instrument, interest rate | 3.125% | ||
Minimum [Member] | Deposit Certifcates, CDI + 0.52-0.80% [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.52% | ||
Minimum [Member] | Deposit Certifcates, 107% to 122% Of CDI [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Debt weight average rate | 107.00% | ||
Maximum [Member] | Deposit Certifcates, CDI + 0.52-0.80% [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.80% | ||
Maximum [Member] | Deposit Certifcates, 107% to 122% Of CDI [Member] | CDI [Member] | |||
Debt Instrument [Line Items] | |||
Debt weight average rate | 122.00% |
Loans Payable And Other Finan_5
Loans Payable And Other Financial Liabilities (Carrying Amounts Of Liability And Equity Components) (Details) - 2028 Convertible Senior Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2018 | Aug. 24, 2018 | ||
Debt Instrument [Line Items] | |||||
Remaining period over which the unamortized debt discount will be amortized | 7 years 6 months | ||||
Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of the equity component | [1] | $ 163,653 | $ 327,305 | ||
Debt instrument outstanding | 439,992 | 879,993 | |||
Unamortized debt discount | [2] | (134,257) | (275,299) | ||
Unamortized transaction costs related to the debt component | (4,367) | (8,894) | |||
Contractual coupon interest accrual | 44,244 | 41,409 | |||
Contractual coupon interest payment | (43,120) | (34,760) | |||
Net carrying amount | $ 302,492 | $ 602,449 | |||
Convertible senior notes, interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |
Transaction Costs Allocated Between Liability And Equity Components | $ 3,082 | ||||
[1] | Net of $ 3,082 thousands of transaction costs related to the equity component of the 2028 Notes. | ||||
[2] | As of March 31, 2021 , the remaining period over which the unamortized debt discount will be amortized is 7.5 years. |
Loans Payable And Other Finan_6
Loans Payable And Other Financial Liabilities (Summary Of Interest Expense For Contractual Interest And Accretion Of Debt Discount) (Details) - Convertible Senior Notes [Member] - 2028 Convertible Senior Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Contractual coupon interest expense | $ 2,836 | $ 4,400 |
Amortization of debt discount | 4,355 | 6,307 |
Amortization of debt issuance costs | 102 | 135 |
Total interest expense related to the Notes | $ 7,293 | $ 10,842 |
Securitization Transactions (Co
Securitization Transactions (Collateralized Debt) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Mercado Crédito Merchant [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 1,769 |
Mercado Crédito I [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 51,364 |
Creditórios Arandu [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 173,713 |
Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 5,478 |
Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 2,726 |
Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 6,325 |
Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | 9,202 |
Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Collateralized debt | $ 26,056 |
Brazilian DI Rate [Member] | Mercado Crédito Merchant [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.50% |
Brazilian DI Rate [Member] | Mercado Crédito I [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Brazilian DI Rate [Member] | Creditórios Arandu [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
BADLAR Rate [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 37.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 39.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 41.00% |
BADLAR Rate [Member] | Maximum [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 44.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito Consumo II [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 27.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito VIII [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 29.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito Consumo III [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 29.00% |
BADLAR Rate [Member] | Minimum [Member] | Mercado Crédito IX [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 30.00% |
Diario Oficial [Member] | Fideicomiso De Administración Y Fuente De Pago CIB/3369 [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.34% |
Securitization Transactions (As
Securitization Transactions (Assets And Liabilities Of The Trust) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | $ 325,636 | $ 651,830 |
Loans receivable, net | 416,600 | 385,036 |
Total current assets | 3,900,191 | 5,346,807 |
Long-term investments | 175,601 | 166,111 |
Loans receivable, net | 18,849 | 16,619 |
Total non-current assets | 1,297,664 | 1,179,525 |
Total assets | 5,197,855 | 6,526,332 |
Accounts payable and accrued expenses | 612,206 | 767,336 |
Loans payable and other financial liabilities | 514,540 | 548,393 |
Total current liabilities | 3,204,949 | 3,635,880 |
Loans payable and other financial liabilities | 1,659,898 | 860,876 |
Total non-current liabilities | 2,023,310 | 1,238,874 |
Total liabilities | 5,228,259 | 4,874,754 |
Trust Created In Brazil [Member] | ||
Securitization Transactions [Line Items] | ||
Restricted cash and cash equivalents | 100,758 | 249,872 |
Credit cards receivable and other means of payments, net | 136,693 | |
Loans receivable, net | 133,588 | 113,846 |
Total current assets | 371,039 | 363,718 |
Long-term investments | 1,596 | |
Loans receivable, net | 10,106 | 9,581 |
Total non-current assets | 11,702 | 9,581 |
Total assets | 382,741 | 373,299 |
Accounts payable and accrued expenses | 136 | 100 |
Loans payable and other financial liabilities | 25,782 | 25,342 |
Total current liabilities | 25,918 | 25,442 |
Loans payable and other financial liabilities | 250,851 | 248,815 |
Total non-current liabilities | 250,851 | 248,815 |
Total liabilities | $ 276,769 | $ 274,257 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 345,313 | $ 303,214 |
Operating lease liabilities | 344,528 | 298,847 |
Finance Leases, Property and equipment, at cost | 34,994 | 29,798 |
Finance Leases, Accumulated depreciation | (5,730) | (4,086) |
Finance Leases, Property and equipment, net | 29,264 | 25,712 |
Loans payable and other financial liabilities | $ 24,301 | $ 23,655 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Mar. 31, 2021 | |
Leases [Abstract] | ||
Weighted average remaining lease term, Operating leases | 7 years | |
Weighted average remaining lease term, Finance leases | 4 years | |
Weighted average discount rate, Operating leases | 8.00% | [1] |
Weighted average discount rate, Finance leases | 13.00% | [1] |
[1] | Includes discount rates of leases in local currency and U.S dollar . |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 16,105 | $ 9,051 |
Depreciation of property and equipment | 1,324 | 512 |
Interest on lease liabilities | 837 | 508 |
Total finance lease cost | $ 2,161 | $ 1,020 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 14,779 | $ 8,590 |
Financing cash flows from finance leases | 3,863 | 564 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 65,394 | 14,580 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 6,197 | $ 663 |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Leases, One year or less | $ 69,830 | |
Operating Leases, One year to two years | 68,741 | |
Operating Leases, Two years to three years | 65,053 | |
Operating Leases, Three years to four years | 61,152 | |
Operating Leases, Fours years to five years | 49,032 | |
Operating Leases, Thereafter | 126,023 | |
Operating Leases, Total lease payments | 439,831 | |
Operating Leases, Less imputed interest | (95,303) | |
Operating leases, Total | 344,528 | $ 298,847 |
Finance Leases, One year or less | 8,522 | |
Finance Leases, One year to two years | 8,522 | |
Finance Leases, Two years to three years | 7,405 | |
Finance Leases, Three years to four years | 4,657 | |
Finance Leases, Fours years to five years | 1,642 | |
Finance Leases, Total lease payments | 30,748 | |
Finance Leases, Less imputed interest | (6,447) | |
Finance Leases, Total | $ 24,301 | $ 23,655 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 |
Forecast [Member] | Foreign Exchange Contracts, Forecasted Purchases Of MPOS Devices [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 2,675 | $ 2,175 | $ 2,337 | $ 5,960 | $ 7,724 | $ 4,326 | $ 8,755 | $ 8,659 | $ 8,490 | $ 10,749 | $ 10,589 | |
Forecast [Member] | Foreign Exchange Contract Entered, USD To Brazilian Reais [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 24,000 | 30,000 | 39,000 | 52,000 | ||||||||
Forecast [Member] | Foreign Exchange Contract Entered, USD To Mexican Peso [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 15,000 | $ 27,000 | $ 20,349 | |||||||||
Subsequent Events [Member] | Foreign Exchange Contracts, Forecasted Purchases Of MPOS Devices [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 10,005 | |||||||||||
Subsequent Events [Member] | Foreign Exchange Contract Entered, USD To Brazilian Reais [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | 60,000 | |||||||||||
Subsequent Events [Member] | Foreign Exchange Contract Entered, USD To Mexican Peso [Member] | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, Notional Amount | $ 66,470 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 3,469 | |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 14,008 | $ 199 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | 2,858 | |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative | $ 3,708 | $ 11,106 |
Derivative Instruments (Effect
Derivative Instruments (Effect Of Derivative Contracts Comprehensive Income) (Details) - Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Beginning Balance | $ (2,469) |
Amount of Gain (Loss) recognized in other comprehensive loss | 5,561 |
Amount of gain reclassified from accumulated other comprehensive loss (income) | 636 |
End Balance | $ 3,728 |
Derivative Instruments (Effec_2
Derivative Instruments (Effect Of Derivative Contracts On Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments [Abstract] | ||
Foreign exchange contracts not designated as hedging instruments | $ 18,989 | $ 16,767 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Equity, Class of Treasury Stock [Line Items] | |||
Foreign currency loss | $ 24,772 | $ 18,505 | |
August 30, 2020 Board Authorized Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Aggregate consideration amount of repurchase program | $ 350,000 | ||
Common Stock repurchased, shares | 66,096 | ||
Foreign currency loss | $ 18,280 | ||
Repurchase program, expiration date | Aug. 31, 2021 |
Impact Of COVID-19 Pandemic (De
Impact Of COVID-19 Pandemic (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | |||
Debt instrument, face amount | $ 1,100,000 | ||
Short term investments and cash | $ 1,208,729 | ||
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Central Bank Of Brazil Mandatory Guarantee) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Investments | 562,797 | $ 565,705 | |
Fair Value, Measurements, Recurring [Member] | Sovereign Debt Securities (Secured Lines Of Credit Guarantee) [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Investments | $ 71,270 |