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Loans payable and other financial liabilities | 6 Months Ended
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Jun. 30, 2023
Debt Disclosure [Abstract] |
Loans payable and other financial liabilities | Loans payable and other financial liabilities The following tables summarize the Company’s Loans payable and other financial liabilities as of June 30, 2023 and December 31, 2022:
| June 30, 2023 |  | December 31, 2022
| (In millions)
Current loans payable and other financial liabilities: |  |  |
Loans from banks | $ | 373 |  |  | $ | 319 |
Bank overdrafts | 32 |  |  | 9 |
Secured lines of credit | 115 |  |  | 115 |
Financial Bills | 131 |  |  | 113 |
Deposit Certificates | 827 |  |  | 993 |
Commercial Notes | 12 |  |  | 6 |
Finance lease obligations | 22 |  |  | 14 |
Collateralized debt | 749 |  |  | 535 |
2028 Notes | 3 |  |  | 3 |
2026 Sustainability Notes | 4 |  |  | 4 |
2031 Notes | 9 |  |  | 10 |
Other lines of credit | 9 |  |  | 10 |
| $ | 2,286 |  |  | $ | 2,131 |
Non-Current loans payable and other financial liabilities: |  |  |
Loans from banks | $ | 126 |  |  | $ | 145 |
Secured lines of credit | 23 |  |  | 24 |
Financial Bills | 1 |  |  | — |
Deposit Certificates | — |  |  | 3 |
Commercial Notes | 202 |  |  | 187 |
Finance lease obligations | 40 |  |  | 37 |
Collateralized debt | 604 |  |  | 703 |
2028 Notes | 436 |  |  | 436 |
2026 Sustainability Notes | 396 |  |  | 398 |
2031 Notes | 651 |  |  | 694 |
Other lines of credit | 2 |  |  | — |
| $ | 2,481 |  |  | $ | 2,627 |
Type of instrument |  | Currency |  | Interest |  | Weighted Average Interest Rate |  |  |  | Maturity |  | June 30, 2023 |  | December 31, 2022
|  |  |  |  |  |  |  |  |  |  |  | (In millions)
Loans from banks |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chilean Subsidiaries |  | Chilean Pesos |  | Fixed |  | 11.60 |  | % |  | August 2023 - April 2025 |  | $ | 112 |  |  | $ | 150 |
Brazilian Subsidiary (*) |  | US Dollar |  | Fixed |  | 5.75 |  | % |  | November 2023 |  | 51 |  |  | — |
Brazilian Subsidiary (*) |  | US Dollar |  | Fixed |  | 4.32 |  | % |  | August 2023 |  | 59 |  |  | 59 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | TJLP + 0.8 |  | % |  | July 2023 - May 2031 |  | 9 |  |  | 9 |
Mexican Subsidiary |  | Mexican Pesos |  | Variable |  | TIIE + 2.20 - 3.50 |  | % |  | July 2023 - June 2027 |  | 198 |  |  | 177 |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | Fixed |  | 11.00 |  | % |  | July 2023 |  | 47 |  |  | 47 |
Colombian Subsidiary |  | Colombian Pesos |  | Fixed |  | 14.45 |  | % |  | July 2023 - September 2023 |  | 23 |  |  | 22 |
Bank overdrafts |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | Fixed |  | 11.62 |  | % |  | July 2023 |  | 7 |  |  | 9 |
Chilean Subsidiaries |  | Chilean Pesos |  | Variable |  | TIB + 2.00 |  | % |  | July 2023 |  | 25 |  |  | — |
Secured lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |
Argentine Subsidiaries |  | Argentine Pesos |  | Fixed |  | 88.50 |  | % |  | July 2023 |  | 106 |  |  | 107 |
Mexican Subsidiary |  | Mexican Pesos |  | Fixed |  | 10.12 |  | % |  | July 2023 - July 2027 |  | 32 |  |  | 32 |
Financial Bills |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | CDI + 0.95 - 1.40 |  | % |  | July 2023 - June 2025 |  | 132 |  |  | 113 |
Deposit Certificates |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | — |  | — |  | % |  | — |  | — |  |  | 272 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 100% to 150% of CDI |  |  |  | July 2023 - June 2024 |  | 715 |  |  | 565 |
Brazilian Subsidiary |  | Brazilian Reais |  | Fixed |  | 13.35 - 14.70 |  | % |  | July 2023 - April 2024 |  | 91 |  |  | 114 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 107.02% to 107.05% of CDI |  |  |  | August 2023 |  | 21 |  |  | 45 |
Commercial Notes |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | DI + 0.88 |  | % |  | July 2023 - August 2027 |  | 77 |  |  | 71 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | IPCA + 6.41 |  | % |  | July 2023 - August 2029 |  | 137 |  |  | 122 |
Finance lease obligations |  |  |  |  |  |  |  |  |  |  |  | 62 |  |  | 51 |
Collateralized debt |  |  |  |  |  |  |  |  |  |  |  | 1,353 |  |  | 1,238 |
2028 Notes |  | US Dollar |  | Fixed |  | 2.00 |  | % |  | August 2023 - August 2028 |  | 439 |  |  | 439 |
2026 Sustainability Notes |  | US Dollar |  | Fixed |  | 2.375 |  | % |  | July 2023 - January 2026 |  | 400 |  |  | 402 |
2031 Notes |  | US Dollar |  | Fixed |  | 3.125 |  | % |  | July 2023 - January 2031 |  | 660 |  |  | 704 |
Other lines of credit |  |  |  |  |  |  |  |  |  |  |  | 11 |  |  | 10 |
|  |  |  |  |  |  |  |  |  |  |  | $ | 4,767 |  |  | $ | 4,758 |
(*)The carrying amount includes the effect of the derivative instrument that qualified for fair value hedge accounting. See Note 15 "Derivative instruments" for further detail. See Notes 13 and 14 to these unaudited interim condensed consolidated financial statements for details regarding the Company’s collateralized debt securitization transactions and finance lease obligations, respectively. 2.375% Sustainability Senior Notes Due 2026 and 3.125% Senior Notes Due 2031 On January 14, 2021, the Company closed a public offering of $400 million aggregate principal amount of 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and $700 million aggregate principal amount of 3.125% Notes due 2031 (the “2031 Notes”, and together with the 2026 Sustainability Notes, the “Notes”). In May 2023, the Company repurchased a $2 million and $44 million principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively. The total amount paid amounted to $38 million, as a result, $398 million and $656 million of the principal amount of the 2026 Sustainability Notes and 2031 Notes remains outstanding as of June 30, 2023, respectively. For the six and three-month periods ended June 30, 2023, the Company recognized $8 million as a gain in Interest income and other financial gains in the unaudited interim condensed consolidated statements of income. For additional information regarding the 2026 Sustainability Notes and the 2031 Notes please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2022, contained in the Company’s 2022 10-K. 2.00% Convertible Senior Notes Due 2028 (“2028 Notes”) As of June 30, 2023, the principal and issuance costs of the 2028 Notes amounted to $439 million and $3 million, respectively. As of December 31, 2022, the principal and issuance costs of the 2028 Notes amounted to $439 million and $3 million, respectively. For the six and three-month periods ended June 30, 2023 and 2022, the Company recognized interest expense, including the amortization of issuance costs of $5 million and $2 million, in both periods, respectively. During the six-month period ended June 30, 2023, a total principal amount of $10 thousand was requested for conversion. The determination of whether or not the Notes are convertible must be performed on a quarterly basis. The Company reconfirmed during the second quarter of 2023 that the conversion threshold was met and the Notes remain eligible for conversion. As of the date of issuance of these unaudited interim condensed consolidated financial statements, the Company did not receive additional requests for conversion. The Company has entered into capped call transactions with respect to shares of its common stock with certain financial institutions (the “2028 Notes Capped Call Transactions”). The 2028 Notes Capped Call Transactions are expected generally to reduce the potential dilution upon conversion of the 2028 Notes in the event that the market price of the Company’s common stock is greater than the strike price and lower than the cap price of the 2028 Notes Capped Call Transactions. The amounts the Company has paid, including transaction expenses, are as follows:
Capped call trading date |  | Amount
|  | (In millions)
June 2019 (*) |  | $ | 88 |
June 2020 (*) |  | 104 |
August 2020 |  | 83 |
November 2020 |  | 120 |
January 2021 |  | 101 |
(*) Partially unwound in 2021. Based on the $1,184.60 closing price of the Company’s common stock on June 30, 2023, and if the stock price remains constant, the Company could obtain 256,442 shares of common stock on the 2028 Notes Capped Call Transactions settlement date. The settlement averaging period with respect to the 2028 Notes Capped Call Transactions began on June 28, 2023 and will end on August 30, 2023, and the 2028 Notes Capped Call Transactions settlement date will be September 1, 2023. The total estimated fair value of the 2028 Notes was $1,202 million and $884 million as of June 30, 2023 and December 31, 2022, 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 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 $1,184.60 closing price of the Company’s common stock on June 30, 2023, the if-converted value of the 2028 Notes exceeded their principal amount by $734 million. For additional information regarding the 2028 Notes and the 2028 Notes Capped Call Transactions please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2022, contained in the Company’s 2022 10-K. Revolving Credit Agreement On March 31, 2022, the Company, as borrower, and certain of its Subsidiaries, as guarantors, entered into a $400 million revolving credit agreement. For additional information regarding the Credit Agreement please refer to Note 17 to the audited consolidated financial statements for the year ended December 31, 2022, contained in the Company’s 2022 10-K. As of June 30, 2023, no amounts have been borrowed under the facility.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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