XML 85 R53.htm IDEA: XBRL DOCUMENT v3.25.1

Income taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of statutory tax rates by country

Statutory tax rates in the countries in which the Company operates for fiscal years 2024, 2023 and 2022 were as follows: 

						2024						2023						2022
Puerto Rico						18.5%						18.5%						18.5%
Curaçao						22.0%						22.0%						22.0%
USVI						21.0%						21.0%						21.0%
Ecuador, Panama, Uruguay, Martinique, French Guiana and Guadeloupe						25.0%						25.0%						25.0%
Aruba						22.0%						22.0%						25.0%
Chile						27.0%						27.0%						27.0%
Peru						29.5%						29.5%						29.5%
Costa Rica, Mexico and Trinidad and Tobago						30.0%						30.0%						30.0%
Colombia and Argentina						35.0%						35.0%						35.0%
Brazil and Venezuela						34.0%						34.0%						34.0%
Netherlands						25.8%						25.8%						25.8%

Schedule of components of income tax expense

Income tax expense, net for fiscal years 2024, 2023 and 2022 consisted of the following:

						2024						2023						2022
Current income tax expense						$	121,292					$	100,012					$	100,925
Deferred income tax income						(11,389)						(4,310)						(15,449)
Income tax expense, net						$	109,903					$	95,702					$	85,476

Schedule of components of income tax expense by applying weighted-average statutory income tax rate

Income tax expense, net for fiscal years 2024, 2023 and 2022, differed from the amounts computed by applying the Company’s weighted-average statutory income tax rate to pre-tax income (loss) as a result of the following:

						2024						2023						2022
Pre-tax income						$	259,282					$	278,117					$	226,396
Weighted-average statutory income tax rate (i)						38.7		%				36.1		%				39.0		%
Income tax expense at weighted-average statutory tax rate on pre-tax income						100,297						100,411						88,314
Permanent differences:
Change in valuation allowance (ii)						9,956						(254)						381
Expiration and changes in tax loss carryforwards						865						3,784						132
Argentina and Venezuela remeasurement and inflationary impacts (iii)						(2,646)						(16,234)						(10,009)
Non-deductible expenses						17,029						15,548						24,845
Tax benefits and Non-taxable income						(19,845)						(12,826)						(9,740)
Income taxes withholdings on intercompany transactions (iv)						10,520						9,704						6,374
Differences including exchange rate, inflation adjustment and filing differences						(7,849)						(5,586)						(14,485)
Alternative Taxes						1,120						2,109						359
Others (v)						456						(954)						(695)
Income tax expense, net						$	109,903					$	95,702					$	85,476

(i)Weighted-average statutory income tax rate is calculated based on the aggregated amount of the income before taxes by country multiplied by the prevailing statutory income tax rate, divided by the consolidated income before taxes.

(ii)Comprises net changes in valuation allowances for the year, mainly related to net operating losses (“NOLs”).

(iii)Comprises changes in valuation allowance during 2024, 2023 and 2022 for $12,412, $22,825 and $57,329, respectively in Venezuela.

(iv)Comprises income tax withheld on the payment of interest on intercompany loans.

(v)Mainly comprises income tax effects over intercompany transactions which are eliminated for consolidation purposes.

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities as of December 31, 2024 and 2023 are presented below: 

						2024						2023
Tax loss carryforwards (i)						$	145,977					$	153,823
Purchase price allocation adjustment						10,042						12,288
Property and equipment, tax inflation adjustment						48,135						53,238
Other accrued payroll and other liabilities						41,116						41,787
Provision for contingencies, bad debts and obsolescence						15,899						23,126
Other deferred tax assets (ii)						29,316						31,177
Other deferred tax liabilities						(4,061)						(5,784)
Leases (iii)						27,052						29,216
Property and equipment - difference in depreciation rates						(20,375)						(23,200)
Valuation allowance (iv)						(204,898)						(218,674)
Net deferred tax asset						$	88,203					$	96,997

(i)As of December 31, 2024, the Company and its subsidiaries have accumulated NOLs amounting to $505,336. The Company has NOLs amounting to $184,968, expiring between 2025 and 2029, $139,982, expiring after 2029 and, $180,386 that do not expire. Changes in tax loss carryforwards for the year relate to the utilization of NOLs.

(ii)Other deferred tax assets reflect the net tax effects of temporary differences between the carrying amounts of assets for financial reporting purposes (accounting base) and the amounts used for income tax purposes (tax base). As of December 31, 2024 and 2023, this item includes: provision for regular expenses for $13,940 and $13,070, respectively, in Brazil, Colombia, Mexico, Panama and Venezuela.

(iii)As of December 31, 2024 and 2023, this item includes difference in depreciation of net leases (related to differences between ASC842 and local tax regulation) in Brazil; assets of $200,047 and $240,299 and liabilities of $172,995 and $211,083, respectively.

(iv)In assessing the realization of deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized.

X

- Definition

Schedule Of Components Of Income Tax Expense By Applying Weighted-Average Statutory Income Tax Rate [Table Text Block]

+ References

No definition available.

+ Details

Name:	arco_ScheduleOfComponentsOfIncomeTaxExpenseByApplyingWeightedAverageStatutoryIncomeTaxRateTableTextBlock
Namespace Prefix:	arco_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule Of Statutory Tax Rates By Country

+ References

No definition available.

+ Details

Name:	arco_ScheduleOfStatutoryTaxRatesByCountryTableTextBlock
Namespace Prefix:	arco_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-9

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration