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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 12 Months Ended
Dec. 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 December 31, 2024 and 2023:
Balances as of
December 31, 2024		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)		Unobservable
inputs
(Level 3)		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$572 $572 $— $— $639 $639 $— 
U.S. government debt securities (1)
— — — — 60 60 — 
Foreign government debt securities (1)
4 4 — — 32 32 — 
Restricted cash and cash equivalents:
Money market (2)
297 297 — — 278 278 — 
Foreign government debt securities (1)
469 469 — — 116 116 — 
Investments:
U.S. government debt securities (1)
1,087 1,087 — — 1,009 1,009 — 
Foreign government debt securities (1) (3)
4,114 4,114 — — 2,530 2,530 — 
Corporate debt securities262 262 — — 30 30 — 
Other assets:
Derivative instruments58 — 58 — 23 — 23 
Intangible assets at fair value49 49 — — 24 24 — 
Total assets$6,912 $6,854 $58 $— $4,741 $4,718 $23 
Salaries and social security payable:
Long-term retention program$163 $— $163 $— $104 $— $104 
Other Liabilities:
Contingent considerations4 — — 4 — — — 
Derivative Instruments31 — 31 — 31 — 31 
Meli Dólar liability (1)
31 — 31 — — — — 
Total liabilities$229 $— $225 $4 $135 $— $135 
(1) Measured at fair value with impact on the consolidated statements of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain investments and Meli Dólar liability.)
(2) As of December 31, 2024 and 2023 includes $283 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 December 31, 2024 and 2023 includes $12 million and $23 million, respectively, of investments from securitization transactions. (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. The unobservable inputs of the fair value of contingent considerations classified as Level 3 refer to the amounts to be paid according to the respective agreements of each acquisition, the likelihood of achievement of the performance targets arising from each one (expected to be 100%), and the Company’s historical experience with similar arrangements. Reasonable variation on those unobservable inputs would not significantly change the fair value of those instruments. As of December 31, 2024 and 2023, the Company had not changed the methodology nor the assumptions used to estimate the fair value of the financial instruments.
There were no transfers to and from Levels 1, 2 and 3 during the years ended December 31, 2024 and 2023.
The Company’s election of the fair value option applies to: i) foreign government debt securities, ii) U.S. government debt securities and iii) Meli Dólar liability. The Company recognized fair value changes of foreign and U.S. government debt securities, which include the related interest income of those instruments, in net service 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 years results) or in interest income and other financial gains if not. Such fair value changes and interest income amount to gains of $329 million and $230 million in net service revenues and financial income, and $57 million and $38 million in interest income and other financial gains for the years ended December 31, 2024 and 2023, respectively. The Meli Dólar liability has not presented changes in its fair value for the year ended December 31, 2024. No Meli Dólar liability existed during the year ended December 31, 2023.
As of December 31, 2024 and 2023, the cost of the Company’s investment in corporate debt securities classified as available for sale amounted to $259 million and $30 million, respectively, and the estimated fair value amounted to $262 million and $30 million, respectively. The cost of these securities is determined under a specific identification basis. As of December 31, 2024 and 2023, the gross unrealized gains accumulated in the consolidated statements of comprehensive income amounted to $3 million and less than $1 million, respectively. For the year ended December 31, 2024, the proceeds from sales of corporate debt securities amounted to $26 million. There were no sales of corporate debt securities during the year ended December 31, 2023.
The following table summarizes the net carrying amount of the investments classified as available for sale (Corporate debt securities), classified by its contractual maturities:
December 31,
20242023
(In millions)
One year or less$87 $5 
One year to two years45 12 
Two years to three years21 4 
Three years to four years63 3 
Four years to five years46 6 
Total available for sale investments
$262 $30 

The following table summarizes the net carrying amount of the debt securities not classified as available for sale (U.S. and foreign government debt securities), classified by its contractual maturities or Management expectation to convert the investments into cash:
December 31,
20242023
(In millions)
One year or less$4,711 $3,668 
One year to two years475 4 
Two years to three years152 — 
Three years to four years231 35 
Four years to five years104 37 
More than five years1 3 
Total debt securities not classified as available for sale$5,674 $3,747 
Financial assets and liabilities not measured and recorded at fair value
The following table summarizes the estimated fair value level of the financial assets and liabilities of the Company not measured at fair value as of December 31, 2024 and 2023:
Balances as of
December 31, 2024		Estimated fair value as of December 31, 2024Balances as of
December 31, 2023		Estimated fair value as of December 31, 2023
(In millions)
Cash and cash equivalents$2,059 $2,059 $1,825 $1,825 
Restricted cash and cash equivalents (1)
1,298 1,298 898 898 
Investments160 160 15 15 
Accounts receivables, net255 255 156 156 
Credit card receivables and other means of payment, net5,288 5,288 3,632 3,632 
Loans receivable, net4,895 4,840 2,694 2,676 
Other assets114 114 131 131 
Total Assets$14,069 $14,014 $9,351 $9,333 
Accounts payable and accrued expenses$3,196 $3,196 $2,117 $2,117 
Funds payable to customers6,954 6,954 4,475 4,475 
Amounts payable due to credit and debit card transactions1,964 1,964 1,092 1,092 
Salaries and social security payable564 564 441 441 
Loans payable and other financial liabilities5,593 5,499 4,495 4,441 
Other liabilities356 356 285 285 
Total Liabilities$18,627 $18,533 $12,905 $12,851 
(1) As of December 31, 2024 and 2023 includes $38 million and $12 million of cash in banks, and $171 million and $74 million of time deposits from securitization transactions, respectively. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments.)
As of December 31, 2024 and 2023, the carrying value of the Company’s financial assets with determinable fair value (except for loans receivable) 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 December 31, 2024 and 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 or because 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 December 31, 2024 and 2023, the estimated fair value of the 2026 Notes would be $351 million and $375 million, respectively, and the estimated fair value of the 2031 Notes would be $475 million and $599 million, respectively, which is based on Level 2 inputs.