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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
Assets and liabilities measured and recorded at fair value on a recurring basis
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023:
Balances as of
March 31, 2024		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)		Balances as of
December 31, 2023		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)
(In millions)
Cash and Cash Equivalents:
Money Market$955 $955 $— $639 $639 $— 
U.S. government debt securities (1)
221 221 — 60 60 — 
Foreign government debt securities (1)
— — — 32 32 — 
Restricted Cash and Cash Equivalents:    
Money Market (2)
236 236 — 278 278 — 
Foreign government debt securities (1)
1 1 — 116 116 — 
Investments:     
U.S. government debt securities (1)
853 853 — 1,009 1,009 — 
Foreign government debt securities (1) (3)
2,822 2,822 — 2,530 2,530 — 
Corporate debt securities151 151 — 30 30 — 
Other Assets:
Derivative Instruments23 — 23 23 — 23 
Customer crypto-assets safeguarding assets71 — 71 34 — 34 
Intangible assets at fair value40 40 — 24 24 — 
Total Assets$5,373 $5,279 $94 $4,775 $4,718 $57 
Salaries and social security payable:
Long-term retention plan$33 $— $33 $104 $— $104 
Other Liabilities:     
Derivative Instruments22 — 22 31 — 31 
Customer crypto-assets safeguarding liabilities71 — 71 34 — 34 
Total Liabilities$126 $— $126 $169 $— $169 
(1) Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments).
(2) As of March 31, 2024 and December 31, 2023, includes $221 million and $269 million, respectively, of money market funds from securitization transactions. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments).
(3) As of March 31, 2024 and December 31, 2023, includes $23 million and $23 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments).
The Company’s assets and liabilities measured and recorded at fair value on a recurring basis were 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’s assumptions. As of March 31, 2024 and December 31, 2023, there were no assets and liabilities measured and recorded at fair value using level 3 inputs.
There were no transfers to and from Levels 1, 2 and 3 during the three-month period ended March 31, 2024, nor during the year ended December 31, 2023.
The Company’s election of the fair value option applies to: i) foreign government debt securities and ii) U.S. government debt securities. The Company recognized fair value changes, which includes the related interest income of those instruments, in net revenues and financial income if it is related to Mercado Pago’s operations (please refer to Note 2 – Summary of significant accounting policies - Change in the presentation of certain financial results and reclassification of prior year results) or in interest income and other financial gains if not. Such fair value changes and interest income amount to gains of $69 million and $49 million in net revenues and financial income and to $10 million and $8 million in interest income and other financial gains, for the three-month periods ended March 31, 2024 and 2023, respectively.
As of March 31, 2024 and December 31, 2023, the cost and the estimated fair value of the Company’s investment in corporate debt securities classified as available for sale amounted to $151 million and $30 million, respectively. The cost of these securities is determined under a specific identification basis. For the three-month period ended March 31, 2024, the proceeds from sales of corporate debt securities amounted to $3 million and the gross realized gains from such securities amount to less than $1 million. There were no sales of corporate debt securities during the three-month period ended March 31, 2023.
The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:
March 31, 2024December 31, 2023
(In millions)
One year or less$38 $5 
One year to two years51 12 
Two years to three years23 4 
Three years to four years11 3 
Four years to five years28 6 
Total available for sale investments$151 $30 
The following table summarizes the net carrying amount of the debt securities not classified as available for sale, classified by its contractual maturities or Management expectation to convert the investments into cash:
March 31, 2024December 31, 2023
(In millions)
One year or less$3,820 $3,668 
One year to two years4 4 
Two years to three years35 — 
Three years to four years31 35 
Four years to five years5 37 
More than five years2 3 
$3,897 $3,747 
Financial assets and liabilities not measured and recorded at fair value
The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of March 31, 2024 and December 31, 2023:
Balances as of
March 31, 2024		Estimated fair value as of March 31, 2024Balances as of
December 31, 2023		Estimated fair value as of December 31, 2023
(In millions)
Cash and cash equivalents$1,403 $1,403 $1,825 $1,825 
Restricted cash and cash equivalents1,002 1,002 898 898 
Investments35 35 15 15 
Accounts receivables, net170 170 156 156 
Credit card receivables and other means of payment, net3,962 3,962 3,632 3,632 
Loans receivable, net3,205 3,200 2,694 2,676 
Other assets94 94 131 131 
Total Assets$9,871 $9,866 $9,351 $9,333 
Accounts payable and accrued expenses$2,203 $2,203 $2,117 $2,117 
Funds payable to customers5,059 5,059 4,475 4,475 
Amounts payable due to credit and debit card transactions1,352 1,352 1,092 1,092 
Salaries and social security payable498 498 441 441 
Loans payable and other financial liabilities4,342 4,281 4,495 4,441 
Other liabilities317 317 285 285 
Total Liabilities$13,771 $13,710 $12,905 $12,851 
As of March 31, 2024 and December 31, 2023, the carrying value of the Company’s financial assets (except for loans receivable and equity securities held at cost) not measured at fair value approximated their fair value mainly because of their short-term maturity. If these financial assets were measured at fair value in the financial statements, cash and restricted cash would be classified as Level 1 (where cost and fair value are aligned) and the remaining financial assets would be classified as Level 2. The estimated fair value of the loans receivable would be classified as Level 3 based on the Company’s assumptions.
As of March 31, 2024 and December 31, 2023, the carrying value of the Company’s financial liabilities (except for 2026 Sustainability Notes and 2031 Notes) not measured at fair value approximated their fair value mainly because of their short-term maturity and the effective interest rates are not materially different from market interest rates. If these financial liabilities were measured at fair value in the financial statements, these would be classified as Level 2. As of March 31, 2024 and December 31, 2023, the estimated fair value of the 2026 Sustainability Notes would be $375 million and $375 million, respectively, and the estimated fair value of the 2026 Notes would be $585 million and $599 million, respectively, which is based on Level 2 inputs.