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LOANS PAYABLE AND OTHER FINANCIAL LIABILITIES | 9 Months Ended
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Sep. 30, 2024
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, 2024 and December 31, 2023:
| September 30, 2024 |  | December 31, 2023
| (In millions)
Loans from banks | $ | 680 |  |  | $ | 485 |
Bank overdrafts | 1 |  |  | 33 |
Secured lines of credit | 65 |  |  | 39 |
Financial Bills | 8 |  |  | — |
Deposit Certificates | 1,058 |  |  | 976 |
Commercial Notes | 2 |  |  | 7 |
Finance lease liabilities | 32 |  |  | 35 |
Collateralized debt | 390 |  |  | 693 |
2026 Sustainability Notes | 2 |  |  | 4 |
2031 Notes | 4 |  |  | 9 |
Other lines of credit | 8 |  |  | 11 |
Current loans payable and other financial liabilities | $ | 2,250 |  |  | $ | 2,292 |
Loans from banks | $ | 169 |  |  | $ | 72 |
Secured lines of credit | 8 |  |  | 17 |
Financial Bills | 272 |  |  | 8 |
Commercial Notes | 192 |  |  | 211 |
Finance lease liabilities | 69 |  |  | 96 |
Collateralized debt | 1,455 |  |  | 782 |
2026 Sustainability Notes | 362 |  |  | 389 |
2031 Notes | 575 |  |  | 626 |
Other lines of credit | 1 |  |  | 2 |
Non-Current loans payable and other financial liabilities | $ | 3,103 |  |  | $ | 2,203 |
Type of instrument |  | Currency |  | Interest |  | Weighted Average Interest Rate |  | Maturity |  | September 30, 2024 |  | December 31, 2023
|  |  |  |  |  |  |  |  |  | (In millions)
Loans from banks |  |  |  |  |  |  |  |  |  |  |  |
Chilean Subsidiaries |  | Chilean Pesos |  | Fixed |  | 7.18% |  | October 2024 - September 2025 |  | $ | 126 |  |  | $ | 104 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | CDI + 0.81% |  | March 2025 |  | 49 |  |  | — |
Brazilian Subsidiary (1) |  | US Dollar |  | Fixed |  | 5.90% |  | November 2024 |  | 53 |  |  | 216 |
Brazilian Subsidiary (1) |  | Euros |  | Fixed |  | 4.26% |  | September 2025 |  | 128 |  |  | — |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | TJLP + 0.80% |  | October 2024 - May 2031 |  | 24 |  |  | 9 |
Mexican Subsidiaries |  | Mexican Pesos |  | Variable |  | TIIE + 1.59% - 3.5% |  | October 2024 - August 2029 |  | 421 |  |  | 178 |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | Fixed |  | 8.78% |  | October - December 2024 |  | 48 |  |  | 50 |
Bank overdrafts |  |  |  |  |  |  |  |  |  |  |  |
Uruguayan Subsidiary |  | Uruguayan Pesos |  | — |  | — |  | October 2024 |  | 1 |  |  | 13 |
Chilean Subsidiaries |  | Chilean Pesos |  | — |  | — |  | — |  | — |  |  | 20 |
Secured lines of credit |  |  |  |  |  |  |  |  |  |  |  |
Argentine Subsidiaries |  | Argentine Pesos |  | Fixed |  | 42.21% |  | October 2024 |  | 56 |  |  | 29 |
Mexican Subsidiary |  | Mexican Pesos |  | Fixed |  | 10.51% |  | October 2024 - July 2027 |  | 17 |  |  | 27 |
Financial Bills |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | CDI + 0.45% - 1.40% |  | March 2025 - September 2027 |  | 280 |  |  | 8 |
Deposit Certificates |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | CDI + 0.32% - 0.69% |  | October 2024 - September 2025 |  | 227 |  |  | — |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 98% to 150% of CDI |  | October 2024 - September 2025 |  | 769 |  |  | 703 |
Brazilian Subsidiary |  | Brazilian Reais |  | Fixed |  | 10.10% - 11.91% |  | October 2024 - March 2025 |  | 34 |  |  | 77 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | 101.50% of CDI |  | October 2024 |  | 28 |  |  | 196 |
Commercial Notes |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | DI + 0.88% |  | October 2024 - August 2027 |  | 67 |  |  | 78 |
Brazilian Subsidiary |  | Brazilian Reais |  | Variable |  | IPCA + 6.41% |  | October 2024 - August 2029 |  | 127 |  |  | 140 |
Finance lease liabilities |  |  |  |  |  |  |  |  |  | 101 |  |  | 131 |
Collateralized debt |  |  |  |  |  |  |  |  |  | 1,845 |  |  | 1,475 |
2026 Sustainability Notes |  | US Dollar |  | Fixed |  | 2.375% |  | January 2025 - January 2026 |  | 364 |  |  | 393 |
2031 Notes |  | US Dollar |  | Fixed |  | 3.125% |  | January 2025 - January 2031 |  | 579 |  |  | 635 |
Other lines of credit |  |  |  |  |  |  |  |  |  | 9 |  |  | 13 |
|  |  |  |  |  |  |  |  |  | $ | 5,353 |  |  | $ | 4,495 |
(1) The carrying amount includes the effect of the derivative instruments that qualified for fair value hedge accounting. See Note 16 – Derivative instruments for further detail. See Note 14 – Securitization transactions and Note 15 – Leases 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”). During 2023, the Company repurchased $9 million and $70 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively, plus $1 million of interest accrued on the 2026 Sustainability Notes and 2031 Notes. The total amount paid during 2023 for those repurchases amounted to $66 million. During 2024, the Company repurchased $27 million and $51 million in principal amount of the outstanding 2026 Sustainability Notes and 2031 Notes, respectively. The total amount paid during 2024 for those repurchases amounted to $71 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 the nine and three-month periods ended September 30, 2024, the Company recognized $8 million and $3 million as gain in Interest income and other financial gains in the interim condensed consolidated statements of income, respectively. 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, 2023, contained in the Company’s 2023 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 could elect to convert their notes at any time before November 13, 2023. Each $1,000 principal amount of 2028 Notes was convertible into 2.2952 shares of MercadoLibre common stock. On November 13, 2023, holders of the 2028 Notes converted $439 million principal amount of 2028 Notes into 1,007,597 shares of the Company’s common stock which MercadoLibre held as treasury stock. As of December 31, 2023, no principal amount of 2028 Notes remained outstanding. For the nine and three-month periods ended September 30, 2023, the Company recognized interest expense, including the amortization of issuance costs, of $7 million and $2 million, 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, 2023, contained in the Company’s 2023 10-K. Amended and Restated Revolving Credit Agreement On September 27, 2024, the Company entered into a $400 million amended and restated revolving credit agreement (the “Amended and Restated Credit Agreement”) with the lenders party thereto and the Company’s subsidiaries MercadoLibre S.R.L., Ebazar.com.br Ltda., Mercado Pago Instituição de Pagamento Ltda., DeRemate.com de Mexico S. de R.L. de C.V., MP Agregador, S. de R.L. de C.V., MercadoLibre Chile Ltda., and MercadoLibre Colombia Ltda. as initial guarantors (collectively, the “Initial Guarantors”). The Company’s obligations under the Amended and Restated Credit Agreement are guaranteed by the Initial Guarantors. The interest rates under the Amended and Restated Credit Agreement are based on Term SOFR (“Secured Overnight Funding Rate”) plus an interest margin of 1.00% per annum, which may be decreased to 0.90% per annum or increased to 1.15% per annum depending on the Company’s debt rating, as further provided under the Amended and Restated Credit Agreement. Any loans drawn from the Amended and Restated Credit Agreement must be repaid on or prior to September 27, 2028, which will be automatically extended to September 27, 2029 upon satisfaction, on or prior to August 28, 2027, of the Maturity Extension Conditions (as defined in the Amended and Restated Credit Agreement), as further provided in the Amended and Restated Credit Agreement. The Company is also obligated to pay a commitment fee on the unused amounts of the facility at a rate per annum equal to 25% of the then Applicable Margin, depending on the Company’s debt rating, as further provided under the Amended and Restated Credit Agreement. As of September 30, 2024, 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 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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