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Segment and geographic information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment and geographic information | Segment and geographic information The Company is required to report information about operating segments in annual financial statements and interim financial reports issued to shareholders in accordance with ASC 280. Operating segments are components of a company about which separate financial information is available that is regularly evaluated by the chief operating decision maker(s) in deciding how to allocate resources and assess performance. ASC 280 also requires disclosures about the Company’s products and services, geographical areas and major customers. As discussed in Note 1, the Company through its wholly-owned and majority-owned subsidiaries operates and franchises McDonald’s restaurants in the food service industry. The Company has determined that its reportable segments are those that are based on the Company’s method of internal reporting. The Company manages its business as distinct geographic segments and its operations are divided into four geographical divisions, which are as follows: Brazil; the Caribbean division, consisting of Aruba, Curacao, Colombia, French Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela; the North Latin America division (“NOLAD”), consisting of Costa Rica, Mexico and Panama; and the South Latin America division (“SLAD”), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. The accounting policies of the segments are the same as those described in Note 3. The following table presents information about profit or loss and assets for each reportable segment:
|  | For the fiscal years ended December 31,
|  | 2018 |  | 2017 |  | 2016
Revenues: |  |  |  |  |  |
Brazil |  | $ | 1,345,453 |  |  | $ | 1,496,573 |  |  | $ | 1,333,237 |
Caribbean division |  | 483,743 |  |  | 474,822 |  |  | 409,671 |
NOLAD |  | 406,848 |  |  | 386,874 |  |  | 363,965 |
SLAD |  | 845,527 |  |  | 961,256 |  |  | 821,757 |
Total revenues |  | $ | 3,081,571 |  |  | $ | 3,319,525 |  |  | $ | 2,928,630 |
Adjusted EBITDA: |  |  |  |  |  |
Brazil |  | $ | 218,391 |  |  | $ | 218,172 |  |  | $ | 168,076 |
Caribbean division |  | (8,281 | ) |  | 40,844 |  |  | 18,049 |
NOLAD |  | 32,313 |  |  | 33,717 |  |  | 36,288 |
SLAD |  | 73,670 |  |  | 87,083 |  |  | 76,327 |
Total reportable segments |  | 316,093 |  |  | 379,816 |  |  | 298,740 |
Corporate and others (i) |  | (58,096 | ) |  | (74,879 | ) |  | (60,295 | )
Total adjusted EBITDA |  | $ | 257,997 |  |  | $ | 304,937 |  |  | $ | 238,445 |
|  | For the fiscal years ended December 31,
|  | 2018 |  | 2017 |  | 2016
Adjusted EBITDA reconciliation: |  |  |  |  |  |
Total Adjusted EBITDA |  | $ | 257,997 |  |  | $ | 304,937 |  |  | $ | 238,445 |
(Less) Plus items excluded from computation that affect operating income: |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | (105,800 | ) |  | (99,382 | ) |  | (92,969 | )
Gains from sale or insurance recovery of property and equipment |  | 4,973 |  |  | 95,081 |  |  | 57,244 |
Write-offs of property and equipment |  | (4,167 | ) |  | (8,528 | ) |  | (5,776 | )
Impairment of long-lived assets |  | (18,950 | ) |  | (17,564 | ) |  | (7,697 | )
Impairment of goodwill |  | (167 | ) |  | (200 | ) |  | (5,045 | )
Reorganization and optimization plan expenses |  | (11,003 | ) |  | — |  |  | (5,341 | )
ADBV Long-Term Incentive Plan incremental compensation from modification |  | 575 |  |  | (1,409 | ) |  | (281 | )
Operating income |  | 123,458 |  |  | 272,935 |  |  | 178,580 |
(Less) Plus: |  |  |  |  |  |  |  |  |
Net interest expense |  | (52,868 | ) |  | (68,357 | ) |  | (66,880 | )
Loss from derivative instruments |  | (565 | ) |  | (7,065 | ) |  | (3,065 | )
Foreign currency exchange results |  | 14,874 |  |  | (14,265 | ) |  | 32,354 |
Other non-operating expenses, net |  | 270 |  |  | (435 | ) |  | (2,360 | )
Income tax expense |  | (48,136 | ) |  | (53,314 | ) |  | (59,641 | )
Net income attributable to non-controlling interests |  | (186 | ) |  | (333 | ) |  | (178 | )
Net income attributable to Arcos Dorados Holdings Inc. |  | $ | 36,847 |  |  | $ | 129,166 |  |  | $ | 78,810 |
|  | For the fiscal years ended December 31,
|  | 2018 |  | 2017 |  | 2016
Depreciation and amortization: |  |  |  |  |  |
Brazil |  | $ | 52,632 |  |  | $ | 52,442 |  |  | $ | 43,733 |
Caribbean division |  | 22,835 |  |  | 25,210 |  |  | 27,376 |
NOLAD |  | 20,829 |  |  | 20,635 |  |  | 21,975 |
SLAD |  | 19,293 |  |  | 15,292 |  |  | 14,477 |
Total reportable segments |  | 115,589 |  |  | 113,579 |  |  | 107,561 |
Corporate and others (i) |  | 5,696 |  |  | 5,978 |  |  | 5,478 |
Purchase price allocation (ii) |  | (15,485 | ) |  | (20,175 | ) |  | (20,070 | )
Total depreciation and amortization |  | $ | 105,800 |  |  | $ | 99,382 |  |  | $ | 92,969 |
Property and equipment expenditures: |  |  |  |  |  |
Brazil |  | $ | 100,926 |  |  | $ | 91,769 |  |  | $ | 42,657 |
Caribbean division |  | 18,640 |  |  | 16,759 |  |  | 14,387 |
NOLAD |  | 24,145 |  |  | 17,565 |  |  | 10,117 |
SLAD |  | 53,300 |  |  | 48,621 |  |  | 24,967 |
Others |  | 30 |  |  | 52 |  |  | 154 |
Total property and equipment expenditures |  | $ | 197,041 |  |  | $ | 174,766 |  |  | $ | 92,282 |
|  | As of December 31,
|  | 2018 |  | 2017
Total assets: |  |  |  |
Brazil |  | $ | 751,550 |  |  | $ | 786,897 |
Caribbean division |  | 303,467 |  |  | 416,541 |
NOLAD |  | 247,697 |  |  | 271,558 |
SLAD |  | 291,300 |  |  | 297,581 |
Total reportable segments |  | 1,594,014 |  |  | 1,772,577 |
Corporate and others (i) |  | 105,835 |  |  | 172,400 |
Purchase price allocation (ii) |  | (121,810 | ) |  | (141,234 | )
Total assets |  | $ | 1,578,039 |  |  | $ | 1,803,743 |
(i) | Primarily relates to corporate general and administrative expenses, corporate supply chain operations in Uruguay, and related assets. Corporate general and administrative expenses consist of corporate office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. As of December 31, 2018 and 2017, corporate assets primarily includes corporate cash and cash equivalents.
(ii) | Relates to the purchase price allocation adjustment made at corporate level, which reduces the total assets and the corresponding depreciation and amortization.
The Company’s revenues are derived from two sources: sales by Company-operated restaurants and revenues from restaurants operated by franchisees. All of the Company’s revenues are derived from foreign operations. Long-lived assets consisting of property and equipment totaled $856,192 and $890,736 at December 31, 2018 and 2017, respectively. All of the Company’s long-lived assets are related to foreign operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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