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Segment and geographic information | 12 Months Ended
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Dec. 31, 2023
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 and its operations are divided into three geographic divisions, as follows: (i) Brazil, (ii) the North Latin American division, or “NOLAD,” which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana and the U.S. Virgin Islands of St. Croix and St. Thomas and (iii) the South Latin American division, or “SLAD,” which is 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,
|  | 2023 |  | 2022 |  | 2021
Revenues: |  |  |  |  |  |
Brazil |  | $ | 1,701,547 |  |  | $ | 1,429,105 |  |  | $ | 1,002,781 |
NOLAD |  | 1,132,912 |  |  | 920,189 |  |  | 780,866 |
SLAD |  | 1,497,419 |  |  | 1,269,608 |  |  | 876,294 |
Total revenues |  | $ | 4,331,878 |  |  | $ | 3,618,902 |  |  | $ | 2,659,941 |
Adjusted EBITDA: |  |  |  |  |  |
Brazil |  | $ | 300,177 |  |  | $ | 242,346 |  |  | $ | 175,603 |
NOLAD |  | 115,364 |  |  | 95,290 |  |  | 85,323 |
SLAD |  | 160,380 |  |  | 134,253 |  |  | 77,573 |
Total reportable segments |  | 575,921 |  |  | 471,889 |  |  | 338,499 |
Corporate and others (i) |  | (103,617) |  |  | (85,325) |  |  | (66,741) |
Total adjusted EBITDA |  | $ | 472,304 |  |  | $ | 386,564 |  |  | $ | 271,758 |
|  | For the fiscal years ended December 31,
|  | 2023 |  | 2022 |  | 2021
Adjusted EBITDA reconciliation: |  |  |  |  |  |
Total Adjusted EBITDA |  | $ | 472,304 |  |  | $ | 386,564 |  |  | $ | 271,758 |
(Less) Plus items excluded from computation that affect operating income: |  |  |  |  |  |
Depreciation and amortization |  | (149,268) |  |  | (119,777) |  |  | (120,394) |
Gains from sale, insurance recovery and contribution in equity method investment of property and equipment |  | 2,030 |  |  | 1,949 |  |  | 4,876 |
Write-offs of long-lived assets |  | (8,401) |  |  | (3,143) |  |  | (3,094) |
Impairment of long-lived assets |  | (2,626) |  |  | (1,171) |  |  | (1,573) |
Reorganization and optimization plan expenses |  | — |  |  | — |  |  | (12,054) |
Operating income |  | 314,039 |  |  | 264,422 |  |  | 139,519 |
(Less) Plus: |  |  |  |  |  |
Net interest expense and other financing results |  | (32,275) |  |  | (43,750) |  |  | (49,546) |
Loss from derivative instruments |  | (13,183) |  |  | (10,490) |  |  | (5,183) |
Foreign currency exchange results |  | 10,774 |  |  | 16,501 |  |  | (9,189) |
Other non-operating (expenses) income, net |  | (1,238) |  |  | (287) |  |  | 2,185 |
Income tax expense, net |  | (95,702) |  |  | (85,476) |  |  | (31,933) |
Net income attributable to non-controlling interests |  | (1,141) |  |  | (577) |  |  | (367) |
Net income attributable to Arcos Dorados Holdings Inc. |  | $ | 181,274 |  |  | $ | 140,343 |  |  | $ | 45,486 |
|  | For the fiscal years ended December 31,
|  | 2023 |  | 2022 |  | 2021
Depreciation and amortization: |  |  |  |  |  |
Brazil |  | $ | 68,249 |  |  | $ | 55,003 |  |  | $ | 54,883 |
NOLAD |  | 41,195 |  |  | 32,377 |  |  | 34,810 |
SLAD |  | 32,302 |  |  | 25,932 |  |  | 26,188 |
Total reportable segments |  | 141,746 |  |  | 113,312 |  |  | 115,881 |
Corporate and others (i) |  | 8,178 |  |  | 7,134 |  |  | 5,372 |
Purchase price allocation (ii) |  | (656) |  |  | (669) |  |  | (859) |
Total depreciation and amortization |  | $ | 149,268 |  |  | $ | 119,777 |  |  | $ | 120,394 |
Property and equipment expenditures: |  |  |  |  |  |
Brazil |  | $ | 121,913 |  |  | $ | 68,661 |  |  | $ | 50,217 |
NOLAD |  | 113,823 |  |  | 69,966 |  |  | 23,800 |
SLAD |  | 122,616 |  |  | 78,162 |  |  | 40,640 |
Others |  | 1,745 |  |  | 326 |  |  | 342 |
Total property and equipment expenditures |  | $ | 360,097 |  |  | $ | 217,115 |  |  | $ | 114,999 |
|  | As of December 31,
|  | 2023 |  | 2022
Total assets: |  |  |  |
Brazil |  | $ | 1,304,759 |  |  | $ | 1,161,940 |
NOLAD |  | 900,429 |  |  | 753,453 |
SLAD |  | 748,073 |  |  | 647,852 |
Total reportable segments |  | 2,953,261 |  |  | 2,563,245 |
Corporate and others (i) |  | 171,255 |  |  | 174,486 |
Purchase price allocation (ii) |  | (105,278) |  |  | (101,101) |
Total assets |  | $ | 3,019,238 |  |  | $ | 2,636,630 |
(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, 2023, corporate assets primarily include cash and cash equivalents and short-term investments. As of December 31, 2022, corporate assets primarily include cash and cash equivalents, short-term investments and derivatives. (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, considering the corresponding depreciation and amortization. As of December 31, 2023 and 2022, 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 $1,119,885 and $856,085 as of December 31, 2023 and 2022, 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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