Fair Value Measurement of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Measurement of Assets and Liabilities [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis


		Quoted Prices in				Quoted Prices in
	Balances as of	active markets for	Significant other	Unobservable	Balances as of	active markets for	Significant other	Unobservable
	June 30,	identical Assets	observable inputs	inputs	December 31,	identical Assets	observable inputs	inputs
Description	2020	(Level 1)	(Level 2)	(Level 3)	2019	(Level 1)	(Level 2)	(Level 3)
	(In thousands)
Assets
Cash and Cash Equivalents:
Money Market Funds	$ 526,204	$ 526,204	$ —	$ —	$ 688,760	$ 688,760	$ —	$ —
Sovereign Debt Securities	16,698	16,698	—	—	32,874	32,874	—	—
Restricted Cash and cash equivalents:
Money Market Funds	36,616	36,616	—	—	32,829	32,829	—	—
Sovereign Debt Securities	—	—	—	—	29,260	29,260	—	—
Investments:
Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee)	530,660	530,660	—	—	506,175	506,175	—	—
Sovereign Debt Securities	1,171,363	1,171,363	—	—	1,161,663	1,161,663	—	—
Corporate Debt Securities	—	—	—	—	236	178	58	—
Other Assets:
Derivative Instruments	16,443	—	—	16,443	1,249	—	—	1,249
Total Financial Assets	$ 2,297,984	$ 2,281,541	$ —	$ 16,443	$ 2,453,046	$ 2,451,739	$ 58	$ 1,249
Liabilities:
Contingent considerations	$ 4,506	$ —	$ —	$ 4,506	$ 2,201	$ —	$ —	$ 2,201
Long-term retention program	68,298	—	68,298	—	60,958	—	60,958	—
Derivative Instruments	984	—	—	984	251	—	—	251
Total Financial Liabilities	$ 73,788	$ —	$ 68,298	$ 5,490	$ 63,410	$ —	$ 60,958	$ 2,452

Fair Value of Financial Assets and Liabilities Measured at Amortized Cost



	Balances as of	Significant other	Balances as of	Significant other
	June 30,	observable inputs	December 31,	observable inputs
	2020	(Level 2)	2019	(Level 2)
	(In thousands)
Assets
Time Deposits	$ 422,849	$ 422,849	$ 189,660	$ 189,660
Accounts receivable	42,423	42,423	35,446	35,446
Credit Cards receivable and other means of payment, net	646,739	646,739	379,969	379,969
Loans receivable, net	144,203	144,203	188,544	188,544
Other assets	129,196	129,196	149,218	149,218
Total Assets	$ 1,385,410	$ 1,385,410	$ 942,837	$ 942,837
Liabilities
Accounts payable and accrued expenses	$ 417,759	$ 417,759	$ 372,309	$ 372,309
Funds payable to customers	1,324,605	1,324,605	894,057	894,057
Salaries and social security payable	71,925	71,925	67,686	67,686
Taxes payable	141,226	141,226	60,247	60,247
Loans payable and other financial liabilities (*)	1,202,582	1,274,558	817,491	927,903
Other liabilities	54,784	54,784	124,644	124,644
Total Liabilities	$ 3,212,881	$ 3,284,857	$ 2,336,434	$ 2,446,846

(*) The fair value of the 2028 Notes (including the equity component) is disclosed in Note 11.

Fair Value of Money Market Funds, Short and Long-Term Investments Classified as Available for Sale Securities



	June 30, 2020
	Cost	Gross Unrealized Gains⁽¹⁾	Financial Gains	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 526,204	$ —	$ —	$ 526,204
Sovereign Debt Securities	16,673	—	25	16,698
Total Cash and cash equivalents	$ 542,877	$ —	$ 25	$ 542,902

Restricted cash and cash equivalents
Money Market Funds	$ 36,616	$ —	$ —	$ 36,616
Total Restricted cash and cash equivalents	$ 36,616	$ —	$ —	$ 36,616

Short-term investments
Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee) (2)	$ 527,098	$ —	$ 3,562	$ 530,660
Sovereign Debt Securities (3)	1,162,560	1,343	7,460	1,171,363
Total Short-term investments	$ 1,689,658	$ 1,343	$ 11,022	$ 1,702,023

Total	$ 2,269,151	$ 1,343	$ 11,047	$ 2,281,541

(1) Unrealized gains from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. Management does not believe any remaining significant unrealized losses represent credit losses based on the evaluation of available evidence including the credit rating of the investments, as of June 30, 2020.

(2) Brazilian government bonds measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments.)

(3) Includes $820,088 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option (See Note 2 – Fair value option applied to certain financial instruments).

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	December 31, 2019
	Cost	Gross Unrealized Gains⁽¹⁾	Financial Gains	Financial Losses	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 688,760	$ —	$ —	$ —	$ 688,760
Sovereign Debt Securities	32,851	—	23	—	32,874
Total Cash and cash equivalents	$ 721,611	$ —	$ 23	$ —	$ 721,634

Restricted Cash and cash equivalents
Money Market Funds	$ 32,829	$ —	$ —	$ —	$ 32,829
Sovereign Debt Securities (2)	29,227	—	33	—	29,260
Total Restricted Cash and cash equivalents	$ 62,056	$ —	$ 33	$ —	$ 62,089

Short-term investments
Sovereign Debt Securities (Central Bank of Brazil mandatory guarantee)(3)	$ 504,195	$ —	$ 1,980	$ —	$ 506,175
Sovereign Debt Securities (4)	898,922	2,080	400	(59)	901,343
Corporate Debt Securities	63	—	—	—	63
Total Short-term investments	$ 1,403,180	$ 2,080	$ 2,380	$ (59)	$ 1,407,581

Long-term investments
Sovereign Debt Securities (5)	$ 260,400	$ 2	$ 1	$ (83)	$ 260,320
Corporate Debt Securities	170	3	—	—	173
Total Long-term investments	$ 260,570	$ 5	$ 1	$ (83)	$ 260,493

Total	$ 2,447,417	$ 2,085	$ 2,437	$ (142)	$ 2,451,797

(1)Unrealized gains from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. Management does not believe any remaining significant unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of December 31, 2019.

(2)Held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. (See Note 11 – Loans payable and other financial liabilities.)

(3)Brazilian government bonds measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 – Investments - Fair value option applied to certain financial instruments.)

(4)Includes $627,842 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option (See Note 2 – Investments - Fair value option applied to certain financial instruments.) and $16,623 thousands held by the Company’s Argentine subsidiary in guarantee for secured lines of credit. (See Note 11 – Loans payable and other financial liabilities.)

(5)Includes $260,230 thousands of U.S treasury notes measured at fair value with impact on the consolidated statement of income for the application of the fair value option. (See Note 2 –Investments - Fair value option applied to certain financial instruments.)

Estimated Fair Values of Cash Equivalents, Short-Term and Long-Term Investments, Effective Maturities


One year or less		2,281,541
Total		$ 2,281,541