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Segment and geographic information | 12 Months Ended
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Dec. 31, 2021
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, geographic 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. As of September 30, 2021, its operations were divided into four geographic divisions, which were as follows: (i) Brazil; (ii) the Caribbean division, consisting of Aruba, Curaçao, Colombia, French Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela; (iii) the North Latin America division (“NOLAD”), consisting of Costa Rica, Mexico and Panama; and (iv) the South Latin America division (“SLAD”), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Effective October 1, 2021, the Company made certain changes in its internal management structure in order to gain operational agility. As a consequence, the Company reorganized its operation into three geographic divisions, as follows: (i) Brazil, (ii) the North Latin American division, or “NOLAD,” which is now comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guyana and the U.S. Virgin Islands of St. Croix and St. Thomas and (iii) the South Latin American division, or “SLAD,” which is now comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curaçao. 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,
|  | 2021 |  | 2020 |  | 2019
Revenues: |  |  |  |  |  |
Brazil |  | $ | 1,002,781 |  |  | $ | 862,748 |  |  | $ | 1,385,566 |
NOLAD |  | 780,866 |  |  | 584,646 |  |  | 676,382 |
SLAD |  | 876,294 |  |  | 536,825 |  |  | 897,129 |
Total revenues |  | $ | 2,659,941 |  |  | $ | 1,984,219 |  |  | $ | 2,959,077 |
Adjusted EBITDA: |  |  |  |  |  |
Brazil |  | $ | 175,603 |  |  | $ | 76,155 |  |  | $ | 227,844 |
NOLAD |  | 85,323 |  |  | 41,496 |  |  | 64,059 |
SLAD |  | 77,573 |  |  | 830 |  |  | 63,043 |
Total reportable segments |  | 338,499 |  |  | 118,481 |  |  | 354,946 |
Corporate and others (i) |  | (66,741) |  |  | (50,370) |  |  | (63,171) |
Total adjusted EBITDA |  | $ | 271,758 |  |  | $ | 68,111 |  |  | $ | 291,775 |
|  | For the fiscal years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Adjusted EBITDA reconciliation: |  |  |  |  |  |
Total Adjusted EBITDA |  | $ | 271,758 |  |  | $ | 68,111 |  |  | $ | 291,775 |
(Less) Plus items excluded from computation that affect operating income (loss): |  |  |  |  |  |
Depreciation and amortization |  | (120,394) |  |  | (126,853) |  |  | (123,218) |
Gains from sale, insurance recovery and contribution in equity method investment of property and equipment |  | 4,876 |  |  | 4,210 |  |  | 5,175 |
Write-offs of property and equipment |  | (3,094) |  |  | (4,501) |  |  | (4,733) |
Impairment of long-lived assets |  | (1,573) |  |  | (6,636) |  |  | (8,790) |
Impairment of goodwill |  | — |  |  | (1,085) |  |  | (273) |
Reorganization and optimization plan expenses |  | (12,054) |  |  | — |  |  | — |
Operating income (loss) |  | 139,519 |  |  | (66,754) |  |  | 159,936 |
(Less) Plus: |  |  |  |  |  |
Net interest expense |  | (49,546) |  |  | (59,068) |  |  | (52,079) |
(Loss) gain from derivative instruments |  | (5,183) |  |  | (2,297) |  |  | 439 |
Gain from securities |  | — |  |  | 25,676 |  |  | — |
Foreign currency exchange results |  | (9,189) |  |  | (31,707) |  |  | 12,754 |
Other non-operating income (expenses), net |  | 2,185 |  |  | 2,296 |  |  | (2,097) |
Income tax expense |  | (31,933) |  |  | (17,532) |  |  | (38,837) |
Net income attributable to non-controlling interests |  | (367) |  |  | (65) |  |  | (220) |
Net income (loss) attributable to Arcos Dorados Holdings Inc. |  | $ | 45,486 |  |  | $ | (149,451) |  |  | $ | 79,896 |
|  | For the fiscal years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Depreciation and amortization: |  |  |  |  |  |
Brazil |  | $ | 54,883 |  |  | $ | 59,466 |  |  | $ | 63,467 |
NOLAD |  | 34,810 |  |  | 35,812 |  |  | 31,192 |
SLAD |  | 26,188 |  |  | 27,459 |  |  | 29,424 |
Total reportable segments |  | 115,881 |  |  | 122,737 |  |  | 124,083 |
Corporate and others (i) |  | 5,372 |  |  | 5,288 |  |  | 4,894 |
Purchase price allocation (ii) |  | (859) |  |  | (1,172) |  |  | (5,759) |
Total depreciation and amortization |  | $ | 120,394 |  |  | $ | 126,853 |  |  | $ | 123,218 |
Property and equipment expenditures: |  |  |  |  |  |
Brazil |  | $ | 50,217 |  |  | $ | 39,127 |  |  | $ | 146,322 |
NOLAD |  | 23,800 |  |  | 17,250 |  |  | 42,892 |
SLAD |  | 40,640 |  |  | 29,934 |  |  | 75,984 |
Others |  | 342 |  |  | — |  |  | 37 |
Total property and equipment expenditures |  | $ | 114,999 |  |  | $ | 86,311 |  |  | $ | 265,235 |
|  | As of December 31,
|  | 2021 |  | 2020
Total assets: |  |  |  |
Brazil |  | $ | 1,083,700 |  |  | $ | 1,102,009 |
NOLAD |  | 679,682 |  |  | 691,534 |
SLAD |  | 566,208 |  |  | 513,966 |
Total reportable segments |  | 2,329,590 |  |  | 2,307,509 |
Corporate and others (i) |  | 134,020 |  |  | 95,802 |
Purchase price allocation (ii) |  | (102,353) |  |  | (109,357) |
Total assets |  | $ | 2,361,257 |  |  | $ | 2,293,954 |
(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 31,2021 and 2020, corporate assets primarily include cash and cash equivalents, derivatives 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 31,2021 and 2020 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 $743,533 and $796,532 at December 31, 2021 and 2020, 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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