2 unchanged sentences
These market risks arise mainly from macroeconomic instability and the possibility that changes in interest rates and the U.S.
−Removed: dollar exchange rate with local currencies, particularly the Brazilian Real, Argentine Peso and Mexican Peso due to Brazil’s, Argentina’s and Mexico’s respective share of our revenues, may affect the value of our financial assets and liabilities.
+Added: dollar exchange rate with local currencies, particularly the Brazilian Real, Mexican Peso and Argentine Peso due to Brazil’s, Mexico’s and Argentina’s respective share of our revenues, may affect the value of our financial assets and liabilities.
We are also exposed to market risks arising from our long-term retention programs (“LTRPs”).
1 unchanged sentence
Foreign currencies
−Removed: We have significant operations internationally that are denominated in foreign currencies, primarily the Brazilian Real, Argentine Peso, Mexican Peso, Colombian Peso and Chilean Peso, subjecting us to foreign currency risk, which may adversely impact our financial results.
+Added: We have significant operations internationally that are denominated in foreign currencies, primarily the Brazilian Real, Mexican Peso, Argentine Peso, Colombian Peso and Chilean Peso, subjecting us to foreign currency risk, which may adversely impact our financial results.
We transact business in various foreign currencies and have significant international revenues and costs.
5 unchanged sentences
The derivatives’ gain or loss for cash flow and net investment hedges is initially reported as a component of accumulated other comprehensive loss.
−Removed: Cash flow hedges and net investment hedges are subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings.
+Added: Cash flow hedges and net investment hedges are subsequently reclassified into the consolidated statements of income in the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings.
The derivatives’ gain or loss for fair value hedges is reported in our consolidated statements of income in the same line items as the change in the value of the hedged item due to the hedged risks.
−Removed: As of December 31, 2023, we hold cash and cash equivalents in local currencies in our subsidiaries, and have receivables denominated in local currencies in all of our operations.
+Added: As of December 31, 2024, we hold cash and cash equivalents, restricted cash and cash equivalent, short and long-term investments in local currencies in our subsidiaries, and have receivables denominated in local currencies in all of our operations.
Our subsidiaries generate revenues and incur most of their expenses in the respective local currencies of the countries in which they operate.
8 unchanged sentences
dollar-denominated long-term investments totaled $708 million.
−Removed: For the year ended December 31, 2023, we had a consolidated loss on foreign currency of $615 million mainly related to higher foreign exchange losses attributable to our own common stock acquisition in the Argentine market at a price that reflects the additional cost of accessing U.S.
−Removed: dollars through an indirect mechanism due to restrictions imposed by the Argentine government for buying U.S.
−Removed: dollars at the official exchange rate, and higher foreign exchange losses from our Argentinian subsidiaries due to the devaluation of the Argentine peso during December 2023 and the acquisition of U.S.
−Removed: dollars in the Argentine market at a price that reflects the additional cost of accessing U.S.
+Added: For the year ended December 31, 2024, we had a consolidated loss on foreign currency of $182 million mainly related to lower foreign exchange losses due to acquisitions of financial instruments in the Argentine market at a price that reflects an additional cost of accessing U.S.
dollars through an indirect mechanism due to restrictions imposed by the Argentine government for buying U.S.
−Removed: dollars at the official exchange rate.
+Added: dollars at the official exchange rate, and due to lower foreign exchange losses from our Argentine subsidiaries.
+Added: This was partially offset by higher foreign exchange losses from our Brazilian and Mexican subsidiaries.
65 | MercadoLibre, Inc.
Foreign currency sensitivity analysis
−Removed: The table below shows the impact on our net revenues, cost of net revenues, operating expenses, other income (expenses), income tax expense and equity in earnings of unconsolidated entity, net income and equity for a positive and a negative 10% fluctuation on all the foreign currencies to which we are exposed to as of December 31, 2023:
+Added: The table below shows the impact on our net revenues and financial income, cost of net revenues and financial expenses, operating expenses, other income (expenses), income tax expense, net income and shareholders' equity for a positive and a negative 10% fluctuation on all the foreign currencies to which we are exposed to at the moment of translating our financial statements to U.S.
+Added: dollars for the year ended December 31, 2024:
Actual ' +10% (2)
(In millions)
−Removed: Net revenues $ 16,081 $ 14,473 $ 13,157
+Added: Net revenues and financial income $ 23,081 $ 20,777 $ 18,891
(20,103) (18,146) (16,543)
Income from operations 2,978 2,631 2,348
−Removed: Other income (expenses), income tax expense and equity in earning of unconsolidated entity related to P&L items (243) (221) (213)
+Added: Other income (expenses) and income tax expense related to P&L items
+Added: (596) (538) (492)
Foreign Currency impact related to the remeasurement of our Net Asset position (202) (182) (165)
3 unchanged sentences
(2) Decrease of the subsidiaries local currency against U.S.
−Removed: (3) Includes cost of net revenues and operating expenses.
+Added: (3) Includes cost of net revenues and financial expenses and operating expenses.
The table above shows an increase in our net income when the U.S.
6 unchanged sentences
Additionally, we would have recorded a foreign currency loss amounting to approximately $51 million in our Brazilian subsidiaries.
+Added: Mexican segment
+Added: Considering a hypothetical decrease of 10% of the Mexican peso against the U.S.
+Added: dollar on December 31, 2024, the reported net assets in our Mexican subsidiaries would have decreased by approximately $142 million with the related impact in Other Comprehensive Income.
+Added: Additionally, we would have recorded a foreign currency loss amounting to approximately $10 million in our Mexican subsidiaries.
Argentine segment
8 unchanged sentences
Considering a hypothetical decrease of 10% of the Argentine Peso against the U.S.
−Removed: dollar on December 31, 2023, the effect on non-functional currency net liability position in our Argentine subsidiaries would have been a foreign exchange gain amounting to approximately $4 million in our Argentine subsidiaries.
+Added: dollar on December 31, 2024, the effect on non-functional currency net asset position in our Argentine subsidiaries would have been a foreign exchange loss amounting to approximately $72 million in our Argentine subsidiaries.
See Note 2 – Summary of significant accounting policies - Foreign currency translation - Argentine currency status and macroeconomic outlook of our audited consolidated financial statements for further detail on the currency status and the exchange regulations of our Argentine segment.
−Removed: Mexican segment
−Removed: Considering a hypothetical decrease of 10% of the Mexican peso against the U.S.
−Removed: dollar on December 31, 2023, the reported net assets in our Mexican subsidiaries would have decreased by approximately $103 million with the related impact in Other Comprehensive Income.
−Removed: Additionally, we would have recorded a foreign currency loss amounting to approximately $23 million in our Mexican subsidiaries.
66 | MercadoLibre, Inc.
Our earnings and cash flows are also affected by changes in interest rates.
−Removed: These changes could have an impact on the interest rates that financial institutions charge us prior to the time we sell our Mercado Pago receivables and on the financial debt that we use to fund Mercado Pago and Mercado Credito’s operations.
+Added: These changes could have an impact on the interest rates that financial institutions charge us prior to the time we sell our Mercado Pago receivables and on the financial debt that we use to fund Mercado Pago and lending’s operations.
As of December 31, 2024, Mercado Pago’s receivables totaled $5,288 million.
−Removed: Interest rate fluctuations could also impact interest earned through our Mercado Credito solution.
−Removed: As of December 31, 2023, loans receivable net of the allowance for doubtful accounts from our Mercado Credito solution totaled $2,694 million.
+Added: Interest rate fluctuations could also impact interest earned through our lending solution.
+Added: As of December 31, 2024, loans receivable net of the allowance for doubtful accounts from our lending solution totaled $4,895 million.
Interest rate fluctuations could also negatively affect certain of our fixed rate and floating rate investments comprised primarily of time deposits, money market funds and sovereign debt securities.
8 unchanged sentences
See Note 18 – Loans payable and other financial liabilities and Note 21 – Securitization transactions of our audited consolidated financial statements for further detail.
−Removed: Considering a hypothetical increase of 100 basis points in the interest rates, the reported Loans payable and other financial liabilities as of December 31, 2023 would have increased by approximately $16 million with the related impact in Interest expense and other financial losses.
−Removed: We have entered into swap contracts to hedge the interest rate fluctuation of $489 million notional amount, $244 million of which have been designated as hedging instruments.
+Added: Considering a hypothetical increase of 100 basis points in the interest rates, the reported charge to the consolidated statements of income for the year ended December 31, 2024 would have increased by approximately $28 million with the impact in Cost of net revenues and financial expenses or in Interest expense and other financial losses.
+Added: We have entered into swap and future contracts to hedge the interest rate fluctuation of $589 million notional amount, $486 million of which have been designated as hedging instruments.
See Note 23 – Derivative instruments of our audited consolidated financial statements for further detail on derivatives instruments.
3 unchanged sentences
The 2020, 2021, 2022, 2023 and 2024 LTRP awards are payable as follows:
−Removed: ■ the eligible employee will receive 16.66% of half of his or her target 2019, 2020, 2021, 2022 and/or 2023 LTRP bonus once a year for a period of six years, with the first payment occurring no later than April 30, 2020, 2021, 2022, 2023 and 2024, respectively (the “2019, 2020, 2021, 2022 or 2023 Annual Fixed Payment”, respectively);
+Added: ■ the eligible employee will receive 16.66% of half of his or her target 2020, 2021, 2022, 2023 and/or 2024 LTRP award once a year for a period of six years, with the first payment occurring no later than April 30, 2021, 2022, 2023, 2024 and 2025, respectively (the “2020, 2021, 2022, 2023 or 2024 Annual Fixed Payment”, respectively);
■ on each date we pay the respective Annual Fixed Payment to an eligible employee, he or she will also receive a payment (the “2020, 2021, 2022, 2023 or 2024 Variable Payment”) equal to the product of (i) 16.66% of half of the target 2020, 2021, 2022, 2023 or 2024 LTRP award and (ii) the quotient of (a) divided by (b), where (a), the numerator, equals the Applicable Year Stock Price (as defined below) and (b), the denominator, equals the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of 2019, 2020, 2021, 2022 and 2023 defined as $553.45, $1,431.26, $1,391.81, $888.69 and $1,426.11 for the 2020, 2021, 2022, 2023 and 2024 LTRPs, respectively.
The “Applicable Year Stock Price” shall equal the average closing price of our common stock on the NASDAQ Global Select Market during the final 60 trading days of the year preceding the applicable payment date.
−Removed: As of December 31, 2023, the total contractual obligation fair value of our outstanding LTRP Variable Award Payment obligation subject to equity price risk amounted to $418 million.
−Removed: As of December 31, 2023, the accrued liability related to the outstanding Variable Award Payment of the LTRP included in Salaries and social security payable in our consolidated balance sheet amounted to $104 million.
+Added: As of December 31, 2024, the total contractual obligation fair value of our outstanding LTRP Variable Payment obligation subject to equity price risk amounted to $470 million.
+Added: As of December 31, 2024, the accrued liability related to the outstanding Variable Payment of the LTRP included in Salaries and social security payable in our consolidated balance sheet amounted to $163 million.
The following table shows a sensitivity analysis of the risk associated with our total contractual obligation fair value related to the outstanding LTRP Variable Award Payment subject to equity price risk if our common stock price per share were to increase or decrease by up to 40%:
16 unchanged sentences
The payments will be indexed based on changes in equity price of our Common Stock.
−Removed: As of December 31, 2023, the total contractual obligation fair value of the mentioned payments amounted to $10 million.
+Added: As of December 31, 2024, the total contractual obligation fair value of the mentioned payments amounted to $3 million, which was fully paid on January 2, 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.