Valuation and qualifying accounts

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

The following table presents the information required by Rule 12-09 of Regulation S-X regarding valuation and qualifying accounts for each of the periods presented:


Description	Balance at beginning of period		Additions (i)		Deductions (ii)		Remeasurement/Translation		Balance at end of period
Year ended December 31, 2022:
Deducted from assets accounts:
Allowance for doubtful accounts (iii)	$	874	$	732	$	(715)	$	(42)	$	849
Valuation allowance on deferred tax assets	186,239		63,163		(5,453)		(42,535)		201,414
Reported as liabilities:
Provision for contingencies	34,086		27,182		(16,224)		(205)		44,839
Total	$	221,199	$	91,077	$	(22,392)	$	(42,782)	$	247,102
Year ended December 31, 2021:
Deducted from assets accounts:
Allowance for doubtful accounts (iii)	$	943	$	814	$	(787)	$	(96)	$	874
Valuation allowance on deferred tax assets	235,196		2,403		(38,992)		(12,368)		186,239
Reported as liabilities:
Provision for contingencies	26,948		23,454		(13,788)		(2,528)		34,086
Total	$	263,087	$	26,671	$	(53,567)	$	(14,992)	$	221,199
Year ended December 31, 2020:
Deducted from assets accounts:
Allowance for doubtful accounts (iii)	$	23,076	$	937	$	(22,929)	$	(141)	$	943
Valuation allowance on deferred tax assets	194,426		65,077		(18,870)		(5,437)		235,196
Reported as liabilities:
Provision for contingencies	26,158		17,391		(11,920)		(4,681)		26,948
Total	$	243,660	$	83,405	$	(53,719)	$	(10,259)	$	263,087

(i)Additions in valuation allowance on deferred tax assets are charged to income tax expense.

Additions in provision for contingencies are explained as follows:

Fiscal years 2022, 2021 and 2020 – Relate to the accrual of $27,041, $22,555 and $15,330, respectively, and a reclassification of $141 and $899, during fiscal years 2022 and 2021, respectively. See Note 18 for details.

(ii)Deductions in valuation allowance on deferred tax assets are charged to income tax expense.

Deductions in provision for contingencies are explained as follows:

Corresponds to the settlements amounting to $16,224; $13,788 and $11,920 during fiscal years 2022, 2021 and 2020, respectively as discussed in Note 18.

Deductions in allowance for doubtful accounts during fiscal year 2020 mainly relate to reductions in the accrual and the write-off of some receivables from franchisees in Puerto Rico as a consequence of a the confidential settlement agreements reached in December 2019 and March 2020 with Puerto Rican franchisees. For details see note 4.

(iii)Presented in the consolidated balance sheet as follow: $460 and $542 at December 31, 2022 and 2021, respectively, within Accounts and notes receivable, net and $387 and $332 at December 31, 2022 and 2021, respectively, within Other receivables.