Segment And Geographic Information

12 Months Ended

Dec. 31, 2011

Segment And Geographic Information [Abstract]

Segment And Geographic Information

20. 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 Topic 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 Topic 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 as follows: Brazil; the Caribbean division, consisting of Aruba, Curacao, French Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago and the U.S. Virgin Islands of St. Croix and St. Thomas; the North Latin America division ("NOLAD"), consisting of Costa Rica, Mexico and Panama; and the South Latin America division ("SLAD"), consisting of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. 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 year ended December 31,
		2011			2010		2009
Revenues:
Brazil	$	1,890,824		$	1,595,571	$	1,200,742
Caribbean division		267,701			260,617		244,774
NOLAD		355,265			305,017		240,333
SLAD		1,143,859			856,913		979,627
Total revenues	$	3,657,649		$	3,018,118	$	2,665,476
Adjusted EBITDA:
Brazil	$	289,462		$	250,606	$	160,037
Caribbean division		9,493			23,556		21,167
NOLAD		19,551			15,400		3,918
SLAD		121,475			83,998		129,889
Total reportable segments		439,981			373,560		315,011
Corporate and others (i)		(100,193	)		(74,446	)	(48,628	)
Total adjusted EBITDA	$	339,788		$	299,114	$	266,383

		For the fiscal year ended December 31,
		2011				2010			2009
Adjusted EBITDA reconciliation:
Total Adjusted EBITDA	$	339,788		$		299,114		$	266,383
(Less) Plus items excluded from computation that
affect operating income:
Depreciation and amortization		(68,971	)			(60,585	)		(54,169	)
Compensation expense related to the award right granted to
our CEO		(2,214	)			(16,392	)		(4,334	)
Gains from sale of property and equipment		7,123				5,299			8,465
Write-offs of property and equipment		(3,570	)			(2,635	)		(9,434	)
Impairment of long-lived assets		(1,715	)			(4,668	)		-
Impairment of goodwill		(2,077	)			-			(102	)
Incremental compensation expense related to ADBV long-
term incentive plan		(10,526	)			(15,576	)		-
Stock-based compensation related to the special awards in
connection with the initial public offering under the 2011
Plan		(5,703	)			-			-
Cash bonus related to the initial public offering		(1,382	)			-			-
Operating income		250,753				204,557			206,809
(Less) Plus:
Net interest expense		(60,749	)			(41,613	)		(52,473	)
Loss from derivative instruments		(9,237	)			(32,809	)		(39,935	)
Foreign currency exchange results		(23,926	)			3,237			(14,098	)
Other non-operating income (expenses), net		3,562				(23,630	)		(1,240	)
Income tax expense		(44,603	)			(3,450	)		(18,709	)
Net income attributable to non-controlling interests		(271	)			(271	)		(332	)
Net income attributable to Arcos Dorados Holdings Inc.	$	115,529		$		106,021		$	80,022
Depreciation and amortization:
Brazil	$	44,503		$		43,927		$	30,944
Caribbean division		11,982				11,733			10,658
NOLAD		25,670				23,197			20,471
SLAD		24,070				20,343			23,433
Total reportable segments		106,225				99,200			85,506
Corporate and others (i)		6,536				6,048			5,132
Purchase price allocation (ii)		(43,790	)			(44,663	)		(36,469	)
Total depreciation and amortization	$	68,971		$		60,585		$	54,169
Property and equipment expenditures:
Brazil	$	142,111			$	70,017			29,065
Caribbean division		36,103				10,951			7,827
NOLAD		48,914				36,832			18,589
SLAD		90,150				53,602			31,342
Others		2,581				4,267			3,282
Total property and equipment expenditures	$	319,859			$	175,669			90,105

		As of December 31,
		2011			2010
Total assets:
Brazil	$	992,832		$	1,003,970
Caribbean division		259,633			229,863
NOLAD		381,840			390,812
SLAD		513,909			405,641
Total reportable segments		2,148,214			2,030,286
Corporate and others (i)		98,451			222,412
Purchase price allocation (ii)		(371,259	)		(468,432	)
Total assets	$	1,875,406		$	1,784,266

     (i) Primarily relates to corporate general and administrative expenses and assets as well as the results and assets of the Company's operating distribution centers until March 16, 2011 (see Note 23 for details of the split-off). Corporate general and administrative expenses consist of home office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. Corporate assets primarily include corporate cash and cash equivalents and collateral deposits.

     (ii) Relates to the purchase price allocation adjustment made at corporate level, which reduces the total assets and the corresponding depreciation and amortization.

     The Company's revenues are derived from two sources: sales by Company-operated restaurants and revenues from restaurants operated by franchisees. See Note 3 for more details. All of the Company's revenues are derived from foreign operations.

     Long-lived assets consisting of property and equipment totaled $1,023,180 and $911,730 at December 31, 2011 and 2010, respectively. All of the Company's long-lived assets are related to foreign operations.