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Loans payable and other financial liabilities | 9 Months Ended
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Sep. 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 September 30, 2023 and December 31, 2022:
| September 30, 2023 |  | December 31, 2022
| (In millions)
Current loans payable and other financial liabilities: |  |  |
Loans from banks | $ | 489 |  |  | $ | 319 |
Bank overdrafts | — |  |  | 9 |
Secured lines of credit | 94 |  |  | 115 |
Financial Bills | — |  |  | 113 |
Deposit Certificates | 901 |  |  | 993 |
Commercial Notes | 2 |  |  | 6 |
Finance lease obligations | 20 |  |  | 14 |
Collateralized debt | 664 |  |  | 535 |
2028 Notes | 87 |  |  | 3 |
2026 Sustainability Notes | 2 |  |  | 4 |
2031 Notes | 4 |  |  | 10 |
Other lines of credit | 9 |  |  | 10 |
| $ | 2,272 |  |  | $ | 2,131 |
Non-Current loans payable and other financial liabilities: |  |  |
Loans from banks | $ | 90 |  |  | $ | 145 |
Secured lines of credit | 19 |  |  | 24 |
Financial Bills | 8 |  |  | — |
Deposit Certificates | — |  |  | 3 |
Commercial Notes | 202 |  |  | 187 |
Finance lease obligations | 40 |  |  | 37 |
Collateralized debt | 774 |  |  | 703 |
2028 Notes | — |  |  | 436 |
2026 Sustainability Notes | 397 |  |  | 398 |
2031 Notes | 651 |  |  | 694 |
Other lines of credit | 1 |  |  | — |
| $ | 2,182 |  |  | $ | 2,627 |
Type of instrument |  | Currency |  | Interest |  | Weighted Average Interest Rate |  |  |  | Maturity |  | September 30, 2023 |  | December 31, 2022
|  |  |  |  |  |  |  |  |  |  |  | (In millions)
Loans from banks |  |  |  |  |  |  |  |  |  |  |  |  |  |
Chilean Subsidiaries |  | Chilean Pesos |  | Fixed |  | 9.99 |  | % |  | October 2023 - April 2025 |  | $ | 102 |  |  | $ | 150 |
Brazilian Subsidiary (*) |  | US Dollar |  | Fixed |  | 5.75 |  | % |  | November 2023 |  | 52 |  |  | — |
Brazilian Subsidiary (*) |  | US Dollar |  | — |  | — |  | % |  | — |  | — |  |  | 59 |
Brazilian Subsidiary (*) |  | US Dollar |  | Fixed |  | 5.91 |  | % |  | August 2024 |  | 162 |  |  | — |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | TJLP + 0.8 |  | % |  | October 2023 - May 2031 |  | 9 |  |  | 9 |
Mexican Subsidiary |  | Mexican Pesos |  | Variable |  | TIIE + 2.20 - 3.50 |  | % |  | October 2023 - June 2027 |  | 192 |  |  | 177 |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | Fixed |  | 9.90 |  | % |  | October 2023 |  | 48 |  |  | 47 |
Colombian Subsidiary |  | Colombian Pesos |  | Fixed |  | 13.98 |  | % |  | November 2023 |  | 14 |  |  | 22 |
Bank overdrafts |  |  |  |  |  |  |  |  |  |  |  |  |  |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | — |  | — |  | % |  | — |  | — |  |  | 9 |
Secured lines of credit |  |  |  |  |  |  |  |  |  |  |  |  |  |
Argentine Subsidiaries |  | Argentine Pesos |  | Fixed |  | 103.12 |  | % |  | October 2023 |  | 84 |  |  | 107 |
Mexican Subsidiary |  | Mexican Pesos |  | Fixed |  | 10.17 |  | % |  | October 2023 - July 2027 |  | 29 |  |  | 32 |
Financial Bills |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | CDI + 1.15 - 1.40 |  | % |  | March - June 2025 |  | 8 |  |  | 113 |
Deposit Certificates |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | — |  | — |  | % |  | — |  | — |  |  | 272 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 100% to 140% of CDI |  |  |  | October 2023 - September 2024 |  | 769 |  |  | 565 |
Brazilian Subsidiary |  | Brazilian Reais |  | Fixed |  | 11.90 - 14.40 |  | % |  | October 2023 - April 2024 |  | 92 |  |  | 114 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 106.50% of CDI |  |  |  | November 2023 |  | 40 |  |  | 45 |
Commercial Notes |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | DI + 0.88 |  | % |  | October 2023 - August 2027 |  | 72 |  |  | 71 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | IPCA + 6.41 |  | % |  | October 2023 - August 2029 |  | 132 |  |  | 122 |
Finance lease obligations |  |  |  |  |  |  |  |  |  |  |  | 60 |  |  | 51 |
Collateralized debt |  |  |  |  |  |  |  |  |  |  |  | 1,438 |  |  | 1,238 |
2028 Notes |  | US Dollar |  | Fixed |  | 2.00 |  | % |  | October - November 2023 |  | 87 |  |  | 439 |
2026 Sustainability Notes |  | US Dollar |  | Fixed |  | 2.375 |  | % |  | January 2024 - January 2026 |  | 399 |  |  | 402 |
2031 Notes |  | US Dollar |  | Fixed |  | 3.125 |  | % |  | January 2024 - January 2031 |  | 655 |  |  | 704 |
Other lines of credit |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  | 10 |
|  |  |  |  |  |  |  |  |  |  |  | $ | 4,454 |  |  | $ | 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. For the nine-month periods ended September 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”) On September 19, 2023, the Company announced its intention to redeem all its 2028 Notes on November 14, 2023. Holders of the 2028 Notes may elect to convert their notes at any time before November 13, 2023. Each $1,000 principal amount of 2028 Notes is convertible into 2.2952 shares of MercadoLibre common stock. This conversion rate reflects an increase of 0.0399 additional shares per $1,000 principal amount of 2028 Notes above the otherwise applicable conversion rate, which applies because the notes have been called for redemption. The Company settles any conversions solely in shares of common stock, except that any fractional shares that would otherwise be deliverable are paid out in cash. The redemption price to be paid for any notes that are not converted will be 100% of the redeemed notes’ principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. As of September 30, 2023, holders of the 2028 Notes converted $351 million principal amount of 2028 Notes into 806,629 shares of the Company’s common stock which MercadoLibre held as treasury stock. As of September 30, 2023, these 2028 Notes conversions generated a non-cash transaction of $350 million. As of the date of issuance of these unaudited interim condensed consolidated financial statements, $379 million principal amount of 2028 Notes were converted into 869,692 shares of the Company’s common stock. After all 2028 Notes’ conversions mentioned, the outstanding principal amount of 2028 Notes is $60 million. The Company entered into 2028 Notes Capped Call Transactions. The settlement averaging period with respect to the 2028 Notes Capped Call Transactions began on June 28, 2023 and ended on August 30, 2023, and the 2028 Notes Capped Call Transactions settlement date was September 1, 2023. As a result the Company received 289,675 shares of common stock. As of September 30, 2023, the principal and issuance costs of the 2028 Notes amounted to $88 million and $1 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 nine and three-month periods ended September 30, 2023 and 2022, the Company recognized interest expense, including the amortization of issuance costs of $7 million and $2 million, in both periods, respectively. 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 September 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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