XML 63 R29.htm IDEA: XBRL DOCUMENT v3.21.1
Segment and geographic information
 12 Months Ended
Dec. 31, 2020
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,
 202020192018
Revenues:   
Brazil$862,748 $1,385,566 $1,345,453 
Caribbean division381,090 399,251 483,743 
NOLAD311,887 431,266 406,848 
SLAD428,494 742,994 845,527 
Total revenues$1,984,219 $2,959,077 $3,081,571 
Adjusted EBITDA:   
Brazil$76,155 $227,844 $218,391 
Caribbean division28,847 24,955 (8,281)
NOLAD10,207 39,027 32,313 
SLAD3,272 63,120 73,670 
Total reportable segments118,481 354,946 316,093 
Corporate and others (i)(50,370)(63,171)(58,096)
Total adjusted EBITDA$68,111 $291,775 $257,997 
 For the fiscal years ended December 31,
 202020192018
Adjusted EBITDA reconciliation:   
Total Adjusted EBITDA$68,111 $291,775 $257,997 
(Less) Plus items excluded from computation that affect operating (loss) income:   
Depreciation and amortization(126,853)(123,218)(105,800)
Gains from sale or insurance recovery of property and equipment4,210 5,175 4,973 
Write-offs of property and equipment(4,501)(4,733)(4,167)
Impairment of long-lived assets(6,636)(8,790)(18,950)
Impairment of goodwill(1,085)(273)(167)
Reorganization and optimization plan expenses— — (11,003)
2008 Long-Term Incentive Plan incremental compensation from modification— — 575 
Operating (loss) income(66,754)159,936 123,458 
(Less) Plus:   
Net interest expense(59,068)(52,079)(52,868)
(Loss) gain from derivative instruments(2,297)439 (565)
Gain from securities25,676 — — 
Foreign currency exchange results(31,707)12,754 14,874 
Other non-operating income (expenses), net2,296 (2,097)270 
Income tax expense(17,532)(38,837)(48,136)
Net income attributable to non-controlling interests(65)(220)(186)
Net (loss) income attributable to Arcos Dorados Holdings Inc.$(149,451)$79,896 $36,847 
 For the fiscal years ended December 31,
 202020192018
Depreciation and amortization:   
Brazil$59,466 $63,467 $52,632 
Caribbean division20,742 18,481 22,835 
NOLAD22,200 21,422 20,829 
SLAD20,329 20,713 19,293 
Total reportable segments122,737 124,083 115,589 
Corporate and others (i)5,288 4,894 5,696 
Purchase price allocation (ii)(1,172)(5,759)(15,485)
Total depreciation and amortization$126,853 $123,218 $105,800 
Property and equipment expenditures:   
Brazil$39,127 $146,322 $100,926 
Caribbean division9,582 15,934 18,640 
NOLAD9,627 32,662 24,145 
SLAD27,975 70,280 53,300 
Others— 37 30 
Total property and equipment expenditures$86,311 $265,235 $197,041 

 As of December 31,
 20202019
Total assets:  
Brazil$1,102,009 $1,328,984 
Caribbean division420,481 429,170 
NOLAD412,045 458,235 
SLAD372,974 389,976 
Total reportable segments2,307,509 2,606,365 
Corporate and others (i)95,802 67,195 
Purchase price allocation (ii)(109,357)(115,875)
Total assets$2,293,954 $2,557,685 

(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 31,2020 and 2019, corporate assets primarily include corporate derivatives, cash and cash equivalents and lease right of use.
(ii)Relates to the purchase price allocation adjustment made at corporate level, which reduces the accounting value of our long-lived assets (excluding Lease right of use) and goodwill and the corresponding depreciation and amortization. As of December 31,2020 and 2019 primarily related with the reduction of goodwill.

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 $796,532 and $960,986 at December 31, 2020 and 2019, respectively. All of the Company’s long-lived assets are related to foreign operations.