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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
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(Mark One)
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x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2021
-OR-
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _________ to _________
Commission file number 001-33647
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MercadoLibre, Inc.
(Exact name of Registrant as specified in its Charter)
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Delaware |
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98-0212790 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification Number) |
Pasaje Posta 4789, 6th Floor
Buenos Aires, Argentina, C1430EKG
(Address of registrant’s principal executive offices)
(+5411) 4640-8000
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
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Securities registered pursuant to Section 12(b) of the Act: |
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Common Stock, $0.001 par value per share |
MELI |
Nasdaq Global Select Market |
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2.375% Sustainability Notes due 2026 |
MELI26 |
The Nasdaq Stock Market LLC |
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3.125% Notes due 2031 |
MELI31 |
The Nasdaq Stock Market LLC |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
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Large accelerated filer |
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Accelerated filer |
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¨ |
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Non-accelerated filer |
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Smaller reporting company |
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¨ |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
49,852,319 shares of the issuer’s common stock, $0.001 par value, outstanding as of May 4, 2021.
MERCADOLIBRE, INC.
INDEX TO FORM 10-Q
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PART I. FINANCIAL INFORMATION |
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Item 1 — Unaudited Interim Condensed Consolidated Financial Statements |
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Interim Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 |
1 |
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2 |
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3 |
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4 |
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5 |
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Notes to Interim Condensed Consolidated Financial Statements (unaudited) |
6 |
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Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations |
31 |
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Item 3 — Qualitative and Quantitative Disclosures About Market Risk |
52 |
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55 |
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56 |
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56 |
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56 |
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57 |
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58 |
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58 |
MercadoLibre, Inc.
Interim Condensed Consolidated Balance Sheets
As of March 31, 2021 and December 31, 2020
(In thousands of U.S. dollars, except par value)
(Unaudited)
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March 31, |
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December 31, |
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2021 |
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2020 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ 862,720 |
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$ 1,856,394 |
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Restricted cash and cash equivalents |
325,636 |
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651,830 |
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Short-term investments (634,067 and 636,949 held in guarantee - see Note 4) |
980,076 |
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1,241,306 |
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Accounts receivable, net |
64,815 |
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49,691 |
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Credit cards receivable and other means of payments, net |
883,670 |
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863,073 |
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Loans receivable, net |
416,600 |
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385,036 |
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Prepaid expenses |
43,291 |
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28,378 |
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Inventory |
131,460 |
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118,140 |
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Other assets |
191,923 |
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152,959 |
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Total current assets |
3,900,191 |
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5,346,807 |
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Non-current assets: |
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Long-term investments |
175,601 |
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166,111 |
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Loans receivable, net |
18,849 |
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16,619 |
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Property and equipment, net |
458,640 |
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391,684 |
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Operating lease right-of-use assets |
345,313 |
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303,214 |
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Goodwill |
82,830 |
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85,211 |
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Intangible assets, net |
20,271 |
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14,155 |
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Deferred tax assets |
124,272 |
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134,916 |
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Other assets |
71,888 |
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67,615 |
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Total non-current assets |
1,297,664 |
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1,179,525 |
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Total assets |
$ 5,197,855 |
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$ 6,526,332 |
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Liabilities |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ 612,206 |
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$ 767,336 |
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Funds payable to customers and amounts due to merchants |
1,527,971 |
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1,733,095 |
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Salaries and social security payable |
193,166 |
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207,358 |
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Taxes payable |
240,167 |
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215,918 |
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Loans payable and other financial liabilities |
514,540 |
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548,393 |
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Operating lease liabilities |
67,264 |
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55,246 |
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Other liabilities |
49,635 |
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108,534 |
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Total current liabilities |
3,204,949 |
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3,635,880 |
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Non-current liabilities: |
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Salaries and social security payable |
20,695 |
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49,852 |
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Loans payable and other financial liabilities |
1,659,898 |
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860,876 |
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Operating lease liabilities |
277,264 |
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243,601 |
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Deferred tax liabilities |
41,233 |
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64,354 |
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Other liabilities |
24,220 |
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20,191 |
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Total non-current liabilities |
2,023,310 |
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1,238,874 |
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Total liabilities |
$ 5,228,259 |
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$ 4,874,754 |
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Commitments and Contingencies (Note 9) |
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Equity |
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Common stock, $0.001 par value, 110,000,000 shares authorized, |
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49,852,319 and 49,869,727 shares issued and outstanding at March 31, |
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2021 and December 31, 2020 |
$ 50 |
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$ 50 |
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Additional paid-in capital |
275,632 |
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1,860,502 |
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Treasury stock |
(80,126) |
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(54,805) |
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Retained earnings |
280,103 |
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314,115 |
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Accumulated other comprehensive loss |
(506,063) |
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(468,284) |
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Total Equity |
(30,404) |
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1,651,578 |
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Total Liabilities and Equity |
$ 5,197,855 |
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$ 6,526,332 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
MercadoLibre, Inc.
Interim Condensed Consolidated Statements of Income
For the three-month periods ended March 31, 2021 and 2020
(In thousands of U.S. dollars, except for share data)
(Unaudited)
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Three Months Ended March 31, |
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2021 |
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2020 |
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Net service revenues |
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$ 1,230,904 |
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$ 639,892 |
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Net product revenues |
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147,537 |
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12,199 |
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Net revenues |
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1,378,441 |
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652,091 |
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Cost of net revenues |
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(787,064) |
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(339,277) |
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Gross profit |
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591,377 |
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312,814 |
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Operating expenses: |
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Product and technology development |
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(126,035) |
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(73,435) |
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Sales and marketing |
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(288,159) |
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(206,507) |
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General and administrative |
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(86,339) |
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(62,566) |
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Total operating expenses |
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(500,533) |
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(342,508) |
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Income (loss) from operations |
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90,844 |
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(29,694) |
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Other income (expenses): |
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Interest income and other financial gains |
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25,071 |
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36,784 |
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Interest expense and other financial losses (*) |
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(91,289) |
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(23,584) |
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Foreign currency losses |
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(15,089) |
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(186) |
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Net income (loss) before income tax expense |
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9,537 |
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(16,680) |
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Income tax expense |
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(43,549) |
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(4,429) |
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Net loss |
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$ (34,012) |
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$ (21,109) |
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(*) |
Includes $49,247 thousands of loss on debt extinguishment and premium related to the 2028 Notes repurchase. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase. |
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Three Months Ended March 31, |
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2021 |
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2020 |
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Basic EPS |
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Basic net loss |
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Available to shareholders per common share |
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$ (0.68) |
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$ (0.44) |
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Weighted average of outstanding common shares |
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49,867,625 |
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49,709,955 |
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Diluted EPS |
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Diluted net loss |
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Available to shareholders per common share |
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$ (0.68) |
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$ (0.44) |
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Weighted average of outstanding common shares |
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49,867,625 |
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49,709,955 |
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The accompanying notes are an integral part of these interim condensed consolidated financial statements.
MercadoLibre, Inc.
Interim Condensed Consolidated Statements of Comprehensive Income
For the three-month periods ended March 31, 2021 and 2020
(In thousands of U.S. dollars)
(Unaudited)
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Three Months Ended March 31, |
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2021 |
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2020 |
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Net loss |
$ (34,012) |
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$ (21,109) |
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Other comprehensive loss, net of income tax: |
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Currency translation adjustment |
(41,869) |
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(94,597) |
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Unrealized gains on hedging activities |
3,670 |
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3,981 |
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Unrealized net gains on available for sale investments |
— |
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2,268 |
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Less: Reclassification adjustment for gains from accumulated other comprehensive loss |
(420) |
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1,705 |
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Net change in accumulated other comprehensive loss, net of income tax |
(37,779) |
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(90,053) |
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Total Comprehensive loss |
$ (71,791) |
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$ (111,162) |
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The accompanying notes are an integral part of these interim condensed consolidated financial statements.
MercadoLibre, Inc.
Interim Condensed Consolidated Statements of Equity
For the three-month periods ended March 31, 2021 and 2020
(In thousands of U.S. dollars)
(Unaudited)
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Accumulated |
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Additional |
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other |
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Common stock |
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paid-in |
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Treasury |
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Retained |
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comprehensive |
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Total |
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Shares |
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Amount |
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capital |
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Stock |
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Earnings |
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loss |
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Equity(*) |
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Balance as of December 31, 2020 |
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49,870 |
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$ |
50 |
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$ |
1,860,502 |
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$ |
(54,805) |
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$ |
314,115 |
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$ |
(468,284) |
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$ |
1,651,578 |
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Stock-based compensation — restricted shares issued |
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— |
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— |
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178 |
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— |
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— |
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— |
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178 |
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Capped Call |
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— |
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— |
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(100,769) |
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— |
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— |
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— |
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(100,769) |
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Repurchase of 2028 Notes Conversion Option |
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— |
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— |
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(1,484,279) |
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— |
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— |
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— |
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(1,484,279) |
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Common Stock repurchased |
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(18) |
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— |
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— |
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(25,321) |
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— |
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— |
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(25,321) |
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Net loss |
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— |
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— |
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— |
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— |
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(34,012) |
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— |
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(34,012) |
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Other comprehensive loss |
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— |
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— |
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— |
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— |
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— |
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(37,779) |
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(37,779) |
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Balance as of March 31, 2021 |
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49,852 |
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$ |
50 |
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$ |
275,632 |
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$ |
(80,126) |
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$ |
280,103 |
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$ |
(506,063) |
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$ |
(30,404) |
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(*) The Total Equity of the Company as of March 31, 2021 decreased from $1,651,578 thousands to $(30,404) thousands, mainly, due to the impact of 2028 Notes repurchased. See Note 11 to these unaudited interim condensed consolidated financial statements for further detail on 2028 Notes repurchase transaction.
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Accumulated |
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Additional |
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other |
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Common stock |
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paid-in |
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Treasury |
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Retained |
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comprehensive |
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Total |
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Shares |
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Amount |
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capital |
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Stock |
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Earnings |
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loss |
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Equity |
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Balance as of December 31, 2019 |
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49,710 |
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$ |
50 |
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$ |
2,067,869 |
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$ |
(720) |
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$ |
322,592 |
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$ |
(406,671) |
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$ |
1,983,120 |
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Changes in accounting standards |
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— |
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— |
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— |
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— |
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(4,570) |
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— |
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(4,570) |
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Balance as of December 31, 2019 Restated |
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49,710 |
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$ |
50 |
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$ |
2,067,869 |
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$ |
(720) |
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$ |
318,022 |
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$ |
(406,671) |
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$ |
1,978,550 |
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Stock-based compensation — restricted shares issued |
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— |
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— |
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179 |
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— |
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— |
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— |
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179 |
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Net loss |
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— |
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— |
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— |
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— |
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(21,109) |
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— |
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(21,109) |
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Redeemable convertible preferred stock dividend distribution ($9.99 per share) |
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— |
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— |
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— |
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— |
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(1,000) |
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— |
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(1,000) |
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Other comprehensive loss |
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— |
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— |
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— |
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— |
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— |
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(90,053) |
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(90,053) |
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Balance as of March 31, 2020 |
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49,710 |
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$ |
50 |
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$ |
2,068,048 |
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$ |
(720) |
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$ |
295,913 |
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$ |
(496,724) |
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$ |
1,866,567 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
MercadoLibre, Inc.
Interim Condensed Consolidated Statements of Cash Flows
For the three-month periods ended March 31, 2021 and 2020
(In thousands of U.S. dollars)
(Unaudited)
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Three Months Ended March 31, |
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2021 |
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2020 |
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Cash flows from operations: |
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Net loss |
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$ (34,012) |
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$ (21,109) |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Unrealized devaluation loss, net |
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24,772 |
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18,505 |
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Depreciation and amortization |
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38,416 |
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21,550 |
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Accrued interest |
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(4,045) |
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(22,352) |
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Non cash interest, convertible notes amortization of debt discount and amortization of debt issuance costs and other charges |
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34,137 |
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(3,632) |
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Bad debt charges |
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83,829 |
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24,419 |
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Financial results on derivative instruments |
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(18,989) |
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(16,767) |
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Stock-based compensation expense — restricted shares |
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178 |
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179 |
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LTRP accrued compensation |
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22,916 |
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15,664 |
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Deferred income taxes |
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3,988 |
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(4,199) |
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Changes in assets and liabilities: |
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Accounts receivable |
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21,064 |
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19,748 |
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Credit cards receivables and other means of payments |
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(62,274) |
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(33,303) |
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Prepaid expenses |
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(15,218) |
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8,560 |
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Inventory |
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(18,958) |
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(5,272) |
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Other assets |
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(34,882) |
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(5,796) |
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Payables and accrued expenses |
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(143,763) |
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(43,101) |
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Funds payable to customers and amounts due to merchants |
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(106,866) |
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(21,344) |
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Other liabilities |
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(62,768) |
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(32,206) |
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Interest received from investments |
|
9,478 |
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14,805 |
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Net cash used in operating activities |
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(262,997) |
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(85,651) |
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Cash flows from investing activities: |
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Purchase of investments |
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(2,415,091) |
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(1,323,631) |
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Proceeds from sale and maturity of investments |
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2,588,681 |
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1,249,960 |
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Receipts from settlements of derivative instruments |
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1,585 |
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3,668 |
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Payment for acquired businesses, net of cash acquired |
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— |
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(7,561) |
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Payment from settlements of derivative instruments |
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(3,897) |
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— |
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Purchases of intangible assets |
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(7,805) |
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(93) |
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Changes in principal of loans receivable, net |
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(148,734) |
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(27,250) |
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Purchases of property and equipment |
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(112,672) |
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(45,175) |
|
Net cash used in investing activities |
|
(97,933) |
|
(150,082) |
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from loans payable and other financial liabilities |
|
1,839,617 |
|
749,617 |
|
Payments on loans payable and other financial liabilities |
|
(704,307) |
|
(593,497) |
|
Payments on repurchase of the 2028 Notes |
|
(1,865,076) |
|
— |
|
Payment of finance lease obligations |
|
(3,863) |
|
(564) |
|
Purchase of convertible note capped call |
|
(100,769) |
|
— |
|
Dividends paid of preferred stock |
|
— |
|
(1,000) |
|
Common Stock repurchased |
|
(25,321) |
|
— |
|
Net cash (used in) provided by financing activities |
|
(859,719) |
|
154,556 |
|
Effect of exchange rate changes on cash, cash equivalents, restricted cash and cash equivalents |
|
(99,219) |
|
(104,864) |
|
Net decrease in cash, cash equivalents, restricted cash and cash equivalents |
|
(1,319,868) |
|
(186,041) |
|
Cash, cash equivalents, restricted cash and cash equivalents, beginning of the period |
|
$ 2,508,224 |
|
$ 1,451,424 |
|
Cash, cash equivalents, restricted cash and cash equivalents, end of the period |
|
$ 1,188,356 |
|
$ 1,265,383 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
1. Nature of Business
MercadoLibre, Inc. (“MercadoLibre” or the “Company”) was incorporated in the state of Delaware, in the United States of America, in October 1999. MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of necessary digital and technology tools that allow businesses and individuals to trade products and services in the region.
The Company enables commerce through its marketplace platform, which allows users to buy and sell in most of Latin America. Through Mercado Pago, the fintech solution, MercadoLibre enables individuals and businesses to send and receive digital payments; through Mercado Envios, MercadoLibre facilitates the shipping of goods from the Company and sellers to buyers; through the advertising products, MercadoLibre facilitates advertising services for large retailers and brands to promote their product and services on the web; through Mercado Shops, MercadoLibre allows users to set-up, manage, and promote their own on-line web-stores under a subscription-based business model; through Mercado Credito, MercadoLibre extends loans to certain merchants and consumers; and through Mercado Fondo, MercadoLibre allows users to invest funds deposited in their Mercado Pago accounts.
As of March 31, 2021, MercadoLibre, through its wholly-owned subsidiaries, operated online e-commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Peru, Mexico, Panama, Honduras, Nicaragua, El Salvador, Uruguay, Bolivia, Guatemala, Paraguay and Venezuela. Additionally, MercadoLibre operates its FinTech solution in Argentina, Brazil, Mexico, Colombia, Chile, Peru and Uruguay, and extends loans through Mercado Credito in Argentina, Brazil and Mexico. It also offers a shipping solution directed towards Argentina, Brazil, Mexico, Colombia, Chile and Uruguay.
2. Summary of significant accounting policies
Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries and consolidated Variable Interest Entities (“VIE”). These interim condensed consolidated financial statements are stated in U.S. dollars, except where otherwise indicated. Intercompany transactions and balances with subsidiaries have been eliminated for consolidation purposes.
Substantially all net revenues, cost of net revenues and operating expenses are generated in the Company’s foreign operations. Long-lived assets, intangible assets and goodwill located in the foreign jurisdictions totaled $552,837 thousands and $490,464 thousands as of March 31, 2021 and December 31, 2020, respectively.
These interim condensed consolidated financial statements reflect the Company’s consolidated financial position as of March 31, 2021 and December 31, 2020. These consolidated financial statements include the Company’s consolidated statements of income, comprehensive income, equity and cash flows for the three-month periods ended March 31, 2021. These interim condensed consolidated financial statements include all normal recurring adjustments that Management believes are necessary to fairly state the Company’s financial position, operating results and cash flows.
From the quarter ended March 31, 2021 the Company disclosed Net product revenues as a separate line of Net revenues following its growth in significance relative to Net service revenues. As a result, the Company has reclassified the corresponding amount of the three month period ended March 31, 2020 to the line Net product revenues for an amount of $12,199 thousands for comparative purposes.
Because all of the disclosures required by U.S. GAAP for annual consolidated financial statements are not included herein, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). The Company has evaluated all subsequent events through the date these condensed consolidated financial statements were issued. The condensed consolidated statements of income, comprehensive income, equity and cash flows for the periods presented herein are not necessarily indicative of results expected for any future period. For a more detailed discussion of the Company’s significant accounting policies, see note 2 to the financial statements in the Company’s Form 10-K for the year ended December 31, 2020. During the three-month period ended March 31, 2021, there were no material updates made to the Company’s significant accounting policies.
Revenue recognition
Revenue recognition criteria for the services provided and goods sold by the Company are described in note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Receivables represent amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied the performance obligation and has the unconditional right to payment. Receivables are presented net of allowance for doubtful accounts, loans receivable and chargebacks of $176,912 thousands and $126,661 thousands as of March 31, 2021 and December 31, 2020, respectively.
Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period in accordance with ASC 606. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. Deferred revenue as of December 31, 2020 and 2019 was $32,519 thousands and $16,590 thousands, respectively, of which $9,413 thousands and $5,562 thousands were recognized as revenue during the three-month periods ended March 31, 2021 and 2020, respectively.
As of March 31, 2021, total deferred revenue was $18,556 thousands, mainly due to fees related to listing and optional feature services billed and loyalty programs that are expected to be recognized as revenue in the coming months.
Digital Assets
During the first quarter of 2021, the Company purchased an aggregate amount of $7,800 thousands in bitcoins. The Company accounts for its digital assets—bitcoins— as indefinite-lived intangible assets, in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company has ownership of and control over its digital assets and uses third-party custodial services to store its digital assets. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition.
The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on the active exchange, indicate that any decrease in the fair values of the digital assets below the carrying values for such assets subsequent to their acquisition will result in a recognition of impairment charges. The Company determines the fair value of its digital assets in accordance with ASC 820, Fair Value Measurement.
Impairment losses are recognized in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.
Repurchase of 2.00% Convertible Senior Notes due 2028 - Extinguishment of debt
The derecognition of a convertible debt is based on the principle that an entity is extinguishing the liability component and reacquiring the equity component that was recognized at issuance. This approach is applied whether the debt was settled in cash, shares, other assets (or any combination), or at maturity upon conversion or upon early extinguishment. The settlement consideration is first allocated to the extinguishment of the liability component equal to the fair value of that component immediately prior to extinguishment. Any difference between that allocated amount and the net carrying amount of the liability component and unamortized debt issuance costs should be recognized as a gain or loss on debt extinguishment. Any remaining consideration is allocated to the reacquisition of the equity component and recognized as a reduction of stockholders’ equity. Any paid premium included in the repurchase price should be recognized as a loss when the debt is extinguished.
Foreign currency translation
All of the Company’s consolidated foreign operations use the local currency as their functional currency, except for Argentina, which has used the U.S. dollar as its functional currency since July 1, 2018. Accordingly, the foreign subsidiaries with local currency as functional currency translate assets and liabilities from their local currencies into U.S. dollars by using year-end exchange rates while income and expense accounts are translated at the average monthly rates in effect during the year, unless exchange rates fluctuate significantly during the period, in which case the exchange rates at the date of the transaction are used. The resulting translation adjustment is recorded as a component of other comprehensive loss.
Argentine currency status
As of July 1, 2018, the Company transitioned its Argentinian operations to highly inflationary status in accordance with U.S. GAAP, and changed the functional currency for Argentine subsidiaries from Argentine Pesos to U.S. dollars, which is the functional currency of their immediate parent company.
Since the second half of 2019, the Argentine government instituted certain foreign currency exchange controls, which may restrict or partially restrict access to foreign currency, like the US dollar, to make payments abroad, either for foreign debt or the importation of goods or services, dividend payments and others, without prior authorization. Those regulations have continued to evolve, sometimes making them more or less stringent depending on the Argentine government´s perception of availability of sufficient national foreign currency reserves. The above has led to the existence of an informal foreign currency market where foreign currencies quote at levels significantly higher than the official exchange rate. However, the only exchange rate available for external commerce and financial payments is the official exchange rate, which as of March 31, 2021 was 92.0.
The Company uses Argentina’s official exchange rate to record the accounts of Argentine subsidiaries. The following table sets forth the assets, liabilities and net assets of the Company’s Argentine subsidiaries and consolidated VIEs, before intercompany eliminations, as of March 31, 2021 and December 31, 2020:
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
2020 |
|
|
|
(In thousands) |
||
|
Assets |
|
$ 1,493,608 |
|
$ 1,470,885 |