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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 3 Months Ended
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 securities265 265 — — 262 262 — — 
Other Assets:
Derivative Instruments31 — 31 — 58 — 58 — 
Intangible assets at fair value53 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 Instruments44 — 44 — 31 — 31 — 
Contingent consideration4 — — 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, 2025December 31, 2024
(In millions)
One year or less$83 $87 
One year to two years39 45 
Two years to three years29 21 
Three years to four years78 63 
Four years to five years36 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, 2025December 31, 2024
(In millions)
One year or less$4,901 $4,711 
One year to two years537 475 
Two years to three years170 152 
Three years to four years297 231 
Four years to five years68 104 
More than five years1 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, 2025Balances 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 equivalents1,197 1,197 1,298 1,298 
Investments126 126 160 160 
Accounts receivables, net261 261 255 255 
Credit card receivables and other means of payment, net5,532 5,532 5,288 5,288 
Loans receivable, net5,726 5,662 4,895 4,840 
Other assets265 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 customers7,391 7,391 6,954 6,954 
Amounts payable due to credit and debit card transactions2,185 2,185 1,964 1,964 
Salaries and social security payable603 603 564 564 
Loans payable and other financial liabilities6,318 6,247 5,593 5,499 
Other liabilities411 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.