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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | 3 Months Ended
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Mar. 31, 2025
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, 2025 and December 31, 2024:
| Balances as of March 31, 2025 |  | 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, 2024 |  | Quoted Prices in active markets for identical Assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Unobservable inputs (Level 3)
| (In millions)
Cash and Cash Equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market | $ | 675 |  |  | $ | 675 |  |  | $ | — |  |  | $ | — |  |  | $ | 572 |  |  | $ | 572 |  |  | $ | — |  |  | $ | — |
U.S. government debt securities (1) | 23 |  |  | 23 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Foreign government debt securities (1) | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 4 |  |  | — |  |  | — |
Restricted Cash and Cash Equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market (2) | 319 |  |  | 319 |  |  | — |  |  | — |  |  | 297 |  |  | 297 |  |  | — |  |  | — |
Foreign government debt securities (1) | 5 |  |  | 5 |  |  | — |  |  | — |  |  | 469 |  |  | 469 |  |  | — |  |  | — |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government debt securities (1) | 1,075 |  |  | 1,075 |  |  | — |  |  | — |  |  | 1,087 |  |  | 1,087 |  |  | — |  |  | — |
Foreign government debt securities (1) (3) | 4,871 |  |  | 4,871 |  |  | — |  |  | — |  |  | 4,114 |  |  | 4,114 |  |  | — |  |  | — |
Corporate debt securities | 265 |  |  | 265 |  |  | — |  |  | — |  |  | 262 |  |  | 262 |  |  | — |  |  | — |
Other Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative Instruments | 31 |  |  | — |  |  | 31 |  |  | — |  |  | 58 |  |  | — |  |  | 58 |  |  | — |
Intangible assets at fair value | 53 |  |  | 53 |  |  | — |  |  | — |  |  | 49 |  |  | 49 |  |  | — |  |  | — |
Total Assets | $ | 7,317 |  |  | $ | 7,286 |  |  | $ | 31 |  |  | $ | — |  |  | $ | 6,912 |  |  | $ | 6,854 |  |  | $ | 58 |  |  | $ | — |
Salaries and social security payable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-term retention program | $ | 44 |  |  | $ | — |  |  | $ | 44 |  |  | $ | — |  |  | $ | 163 |  |  | $ | — |  |  | $ | 163 |  |  | $ | — |
Other Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Meli Dólar liability (1) | 42 |  |  | — |  |  | 42 |  |  | — |  |  | 31 |  |  | — |  |  | 31 |  |  | — |
Derivative Instruments | 44 |  |  | — |  |  | 44 |  |  | — |  |  | 31 |  |  | — |  |  | 31 |  |  | — |
Contingent consideration | 4 |  |  | — |  |  | — |  |  | 4 |  |  | 4 |  |  | — |  |  | — |  |  | 4 |
Total Liabilities | $ | 134 |  |  | $ | — |  |  | $ | 130 |  |  | $ | 4 |  |  | $ | 229 |  |  | $ | — |  |  | $ | 225 |  |  | $ | 4 |
(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, 2025 and December 31, 2024, includes $296 million and $283 million, respectively, of money market funds from securitization transactions. (See Note 4 – Cash, cash equivalents, restricted cash and cash equivalents and investments). (3) As of March 31, 2025 and December 31, 2024, includes $11 million and $12 million, respectively, of investments from securitization transactions. (See Note 4 – 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 agreement of an acquisition, the likelihood of achievement of the targets included in that arrangement (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 March 31, 2025 and December 31, 2024, 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 three-month period ended March 31, 2025, nor during the year ended December 31, 2024. 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 or in interest income and other financial gains if not. Such fair value changes and interest income amount to gains of $125 million and $69 million in net service revenues and financial income, and $20 million and $10 million in interest income and other financial gains for the three-month periods ended March 31, 2025 and 2024, respectively. The Meli Dólar liability has not presented changes in its fair value for the three-month period ended March 31, 2025. No Meli Dólar liability existed during the three-month period ended March 31, 2024. As of March 31, 2025 and December 31, 2024, the cost of the Company’s investment in corporate debt securities classified as available for sale amounted to $261 million and $259 million, respectively, and the estimated fair value amounted to $265 million and $262 million, respectively. The cost of these securities is determined under a specific identification basis. As of March 31, 2025 and December 31, 2024 the gross unrealized gains accumulated amounted to $4 million and $3 million, respectively. For the three-month periods ended March 31, 2025 and 2024, the proceeds from sales of corporate debt securities amounted to $24 million and $3 million, respectively. 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, 2025 |  | December 31, 2024
| (In millions)
One year or less | $ | 83 |  |  | $ | 87 |
One year to two years | 39 |  |  | 45 |
Two years to three years | 29 |  |  | 21 |
Three years to four years | 78 |  |  | 63 |
Four years to five years | 36 |  |  | 46 |
Total available for sale investments | $ | 265 |  |  | $ | 262 |
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:
| March 31, 2025 |  | December 31, 2024
| (In millions)
One year or less | $ | 4,901 |  |  | $ | 4,711 |
One year to two years | 537 |  |  | 475 |
Two years to three years | 170 |  |  | 152 |
Three years to four years | 297 |  |  | 231 |
Four years to five years | 68 |  |  | 104 |
More than five years | 1 |  |  | 1 |
Total debt securities not classified as available for sale | $ | 5,974 |  |  | $ | 5,674 |
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, 2025 and December 31, 2024:
| Balances as of March 31, 2025 |  | Estimated fair value as of March 31, 2025 |  | Balances as of December 31, 2024 |  | Estimated fair value as of December 31, 2024
| (In millions)
Cash and cash equivalents | $ | 2,279 |  |  | $ | 2,279 |  |  | $ | 2,059 |  |  | $ | 2,059 |
Restricted cash and cash equivalents | 1,197 |  |  | 1,197 |  |  | 1,298 |  |  | 1,298 |
Investments | 126 |  |  | 126 |  |  | 160 |  |  | 160 |
Accounts receivables, net | 261 |  |  | 261 |  |  | 255 |  |  | 255 |
Credit card receivables and other means of payment, net | 5,532 |  |  | 5,532 |  |  | 5,288 |  |  | 5,288 |
Loans receivable, net | 5,726 |  |  | 5,662 |  |  | 4,895 |  |  | 4,840 |
Other assets | 265 |  |  | 265 |  |  | 114 |  |  | 114 |
Total Assets | $ | 15,386 |  |  | $ | 15,322 |  |  | $ | 14,069 |  |  | $ | 14,014 |
Accounts payable and accrued expenses | $ | 3,330 |  |  | $ | 3,330 |  |  | $ | 3,196 |  |  | $ | 3,196 |
Funds payable to customers | 7,391 |  |  | 7,391 |  |  | 6,954 |  |  | 6,954 |
Amounts payable due to credit and debit card transactions | 2,185 |  |  | 2,185 |  |  | 1,964 |  |  | 1,964 |
Salaries and social security payable | 603 |  |  | 603 |  |  | 564 |  |  | 564 |
Loans payable and other financial liabilities | 6,318 |  |  | 6,247 |  |  | 5,593 |  |  | 5,499 |
Other liabilities | 411 |  |  | 411 |  |  | 356 |  |  | 356 |
Total Liabilities | $ | 20,238 |  |  | $ | 20,167 |  |  | $ | 18,627 |  |  | $ | 18,533 |
As of March 31, 2025 and December 31, 2024, 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 or because the effective interest rates are not materially different from market interest rates. If these financial assets were measured at fair value in the financial statements, cash and cash equivalents and restricted cash and cash equivalents 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, 2025 and December 31, 2024, the carrying value of the Company’s financial liabilities (except for the 2.375% Sustainability Notes due 2026 (the “2026 Sustainability Notes”) and the 3.125% Notes due 2031 (the “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 March 31, 2025 and December 31, 2024, the estimated fair value of the 2026 Sustainability Notes would be $356 million and $351 million, respectively, and the estimated fair value of the 2031 Notes would be $487 million and $475 million, respectively, which is based on Level 2 inputs.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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