Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Entity Registrant Name | Arcos Dorados Holdings Inc. |
Entity Central Index Key | 1,508,478 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Class A Shares Of Common Stock [Member] | |
Entity Common Stock, Shares Outstanding | 131,072,508 |
Class B Shares Of Common Stock [Member] | |
Entity Common Stock, Shares Outstanding | 80,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||
Sales by Company-operated restaurants | $ 3,162,256 | $ 2,803,334 | $ 2,930,379 |
Revenues from franchised restaurants | 157,269 | 125,296 | 122,361 |
Total revenues | 3,319,525 | 2,928,630 | 3,052,740 |
Company-operated restaurant expenses: | |||
Food and paper | (1,110,240) | (1,012,976) | (1,037,487) |
Payroll and employee benefits | (683,954) | (607,082) | (660,773) |
Occupancy and other operating expenses | (842,519) | (752,428) | (793,622) |
Royalty fees | (163,954) | (142,777) | (149,089) |
Franchised restaurants – occupancy expenses | (69,836) | (55,098) | (54,242) |
General and administrative expenses | (244,664) | (221,075) | (270,680) |
Other operating income, net | 68,577 | 41,386 | 6,560 |
Total operating costs and expenses | (3,046,590) | (2,750,050) | (2,959,333) |
Operating income | 272,935 | 178,580 | 93,407 |
Net interest expense | (68,357) | (66,880) | (64,407) |
Loss from derivative instruments | (7,065) | (3,065) | (2,894) |
Foreign currency exchange results | (14,265) | 32,354 | (54,032) |
Other non-operating expenses, net | (435) | (2,360) | (627) |
Income (loss) before income taxes | 182,813 | 138,629 | (28,553) |
Income tax expense | (53,314) | (59,641) | (22,816) |
Net income (loss) | 129,499 | 78,988 | (51,369) |
Less: Net income attributable to non-controlling interests | (333) | (178) | (264) |
Net income (loss) attributable to Arcos Dorados Holdings Inc. | $ 129,166 | $ 78,810 | $ (51,633) |
Earnings (loss) per share information: | |||
Basic net income (loss) per common share attributable to Arcos Dorados Holdings Inc. (in dollars per share) | $ 0.61 | $ 0.37 | $ (0.25) |
Diluted net income (loss) per common share attributable to Arcos Dorados Holdings Inc. (in dollars per share) | $ 0.61 | $ 0.37 | $ (0.25) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 129,499 | $ 78,988 | $ (51,369) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 4,783 | (9,929) | (128,492) |
Post-employment benefits: | |||
Loss recognized in accumulated other comprehensive income (loss) | (938) | (310) | (213) |
Reclassification of loss to consolidated statement of income (loss) | 386 | 386 | 440 |
Post-employment (expenses) benefits (net of $272, $39 and $120 of deferred income taxes) | (552) | 76 | 227 |
Cash flow hedges: | |||
Net gains (loss) recognized in accumulated other comprehensive loss | 6,462 | (18,813) | 20,487 |
Reclassification of net loss (gain) to consolidated statement of income (loss) | 1,592 | 11,242 | (14,209) |
Cash flow hedges (net of $3,938, $nil and $nil of income taxes) | 8,054 | (7,571) | 6,278 |
Total other comprehensive income (loss) | 12,285 | (17,424) | (121,987) |
Comprehensive income (loss) | 141,784 | 61,564 | (173,356) |
Less: Comprehensive income attributable to non-controlling interests | (316) | (140) | (73) |
Comprehensive income (loss) attributable to Arcos Dorados Holdings Inc. | $ 141,468 | $ 61,424 | $ (173,429) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Defined benefit pension plan, tax | $ 272 | $ (39) | $ (120) |
Cash flow hedges, tax | $ 3,938 | $ 0 | $ 0 |
Consolidated Statements of Bala
Consolidated Statements of Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 308,491 | $ 194,803 |
Short-term investment | 19,588 | 0 |
Accounts and notes receivable, net | 111,302 | 83,239 |
Other receivables | 36,310 | 28,841 |
Inventories | 82,735 | 48,915 |
Prepaid expenses and other current assets | 94,204 | 87,643 |
McDonald’s Corporation’s indemnification for contingencies | 407 | 1,749 |
Total current assets | 653,037 | 445,190 |
Non-current assets | ||
Miscellaneous | 98,291 | 89,661 |
Collateral deposits | 2,500 | 5,325 |
Property and equipment, net | 890,736 | 847,966 |
Net intangible assets and goodwill | 47,729 | 43,044 |
Deferred income taxes | 74,299 | 70,446 |
Derivative instruments | 35,069 | 0 |
McDonald’s Corporation’s indemnification for contingencies | 2,082 | 3,421 |
Total non-current assets | 1,150,706 | 1,059,863 |
Total assets | 1,803,743 | 1,505,053 |
Current liabilities | ||
Accounts payable | 303,452 | 217,914 |
Royalties payable to McDonald’s Corporation | 13,729 | 17,585 |
Income taxes payable | 54,592 | 38,912 |
Other taxes payable | 82,326 | 73,681 |
Accrued payroll and other liabilities | 119,088 | 144,442 |
Provision for contingencies | 2,529 | 764 |
Interest payable | 9,986 | 7,035 |
Current portion of long-term debt | 4,359 | 28,099 |
Derivative instruments | 15,522 | 19,876 |
Total current liabilities | 605,583 | 548,308 |
Non-current liabilities | ||
Accrued payroll and other liabilities | 29,366 | 23,760 |
Provision for contingencies | 25,427 | 17,348 |
Long-term debt, excluding current portion | 629,142 | 551,580 |
Derivative instruments | 7,506 | 10,615 |
Deferred income taxes | 10,577 | 1,866 |
Total non-current liabilities | 702,018 | 605,169 |
Total liabilities | 1,307,601 | 1,153,477 |
Equity | ||
Additional paid-in capital | 14,216 | 13,788 |
Retained earnings | 401,134 | 271,968 |
Accumulated other comprehensive losses | (429,347) | (441,649) |
Total Arcos Dorados Holdings Inc. shareholders’ equity | 495,650 | 350,991 |
Non-controlling interests in subsidiaries | 492 | 585 |
Total equity | 496,142 | 351,576 |
Total liabilities and equity | 1,803,743 | 1,505,053 |
Class A Shares Of Common Stock [Member] | ||
Equity | ||
Common stock | 376,732 | 373,969 |
Total equity | 376,732 | 373,969 |
Class B Shares Of Common Stock [Member] | ||
Equity | ||
Common stock | 132,915 | 132,915 |
Total equity | $ 132,915 | $ 132,915 |
Consolidated Statements of Bal6
Consolidated Statements of Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0 | |||
Common stock, shares authorized | 500,000,000 | |||
Common stock, shares issued | 211,072,508 | 210,711,224 | 210,538,896 | 210,216,043 |
Common stock, shares outstanding | 211,072,508 | 210,711,224 | 210,538,896 | 210,216,043 |
Class A Shares Of Common Stock [Member] | ||||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Common stock, shares authorized | 420,000,000 | 420,000,000 | ||
Common stock, shares issued | 131,072,508 | 130,711,224 | 130,538,896 | 130,216,043 |
Common stock, shares outstanding | 131,072,508 | 130,711,224 | 130,538,896 | 130,216,043 |
Class B Shares Of Common Stock [Member] | ||||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Common stock, shares authorized | 80,000,000 | 80,000,000 | ||
Common stock, shares issued | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares outstanding | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income (loss) attributable to Arcos Dorados Holdings Inc. | $ 129,166 | $ 78,810 | $ (51,633) |
Non-cash charges and credits: | |||
Depreciation and amortization | 99,382 | 92,969 | 110,715 |
Loss from derivative instruments | 7,065 | 3,065 | 2,894 |
Amortization and accrual of letter of credit fees and deferred financing costs | 3,433 | 3,974 | 3,982 |
Gain of property and equipment sales | (93,122) | (55,163) | (10,942) |
Deferred income taxes | 1,731 | 5,499 | (9,057) |
Foreign currency exchange results | 20,366 | (33,348) | 23,239 |
Accrued net share-based compensation expense | 4,216 | 3,558 | 4,082 |
Impairment of long-lived assets and goodwill | 17,764 | 12,742 | 13,022 |
Write-offs and related contingencies of property and equipment | 8,528 | 5,776 | 6,038 |
Gain on Sales of restaurants businesses | (14,742) | (16,549) | (3,390) |
Others, net | 6,305 | 6,637 | 7,156 |
Changes in assets and liabilities: | |||
Accounts payable | 102,660 | 35,815 | 25,020 |
Accounts and notes receivable and other receivables | (50,211) | (32,604) | 2,369 |
Inventories, prepaid and other assets | (53,466) | 26,763 | (45,900) |
Income taxes payable | 18,946 | 9,480 | 15,786 |
Other taxes payable | 12,672 | 8,180 | (2,568) |
Interest payable | 2,942 | (9,533) | (3,746) |
Accrued payroll and other liabilities and provision for contingencies | 35,075 | 15,412 | 24,195 |
Others | (3,540) | 2,706 | 1,427 |
Net cash provided by operating activities | 255,170 | 164,189 | 112,689 |
Investing activities | |||
Property and equipment expenditures | (174,766) | (92,282) | (90,964) |
Purchases of restaurant businesses paid at acquisition date | (870) | 0 | (1,091) |
Proceeds from sale of property and equipment and related advances | 61,983 | 88,380 | 19,738 |
Proceeds from sales of restaurant businesses and related advances | 10,407 | 25,090 | 3,861 |
Acquisitions of short-term investments | (19,588) | 0 | 0 |
Loans collected from related parties | 0 | 1,800 | 9,702 |
Other investing activity | (1,646) | 30 | (1,361) |
Net cash (used in) provided by investing activities | (124,480) | 23,018 | (60,115) |
Financing activities | |||
Issuance of 2027 Notes | 265,000 | 0 | 0 |
(Repayment of) / proceeds from secured loan agreement | (169,511) | 167,262 | 0 |
Purchase of 2023 Notes | (48,885) | (80,800) | 0 |
Net (payment) collection of derivative instruments | (40,822) | (6,268) | 19,817 |
Dividend payments to Arcos Dorados Holdings Inc.’ shareholders | 0 | 0 | (12,509) |
Purchase and repayment of 2016 Notes | 0 | (181,156) | (11,710) |
Net short-term borrowings | 0 | (2,488) | (29,043) |
Other financing activities | (9,135) | (9,545) | (8,818) |
Net cash used in financing activities | (3,353) | (112,995) | (42,263) |
Effect of exchange rate changes on cash and cash equivalents | (13,649) | 8,072 | (36,822) |
Increase (decrease) in cash and cash equivalents | 113,688 | 82,284 | (26,511) |
Cash and cash equivalents at the beginning of the year | 194,803 | 112,519 | 139,030 |
Cash and cash equivalents at the end of the year | 308,491 | 194,803 | 112,519 |
Supplemental cash flow information: | |||
Interest | 53,206 | 76,605 | 64,229 |
Income tax | 24,112 | 39,135 | 11,191 |
Non-cash investing and financing activities: | |||
Seller financing pending of payment and settlement of franchise receivables related to purchases of restaurant businesses | 36 | 0 | 2,113 |
Exchange of assets | $ 6,721 | $ 2,150 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Arcos Dorados Holdings Inc.' Shareholders [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Losses [Member] | Non-Controlling Interests [Member] | Class A Shares Of Common Stock [Member] | Class B Shares Of Common Stock [Member] |
Balance at Dec. 31, 2014 | $ 457,587 | $ 456,914 | $ 15,974 | $ 244,791 | $ (302,467) | $ 673 | $ 365,701 | $ 132,915 |
Balance of common stock, shares at Dec. 31, 2014 | 210,216,043 | 130,216,043 | 80,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) for the year | $ (51,369) | (51,633) | (51,633) | 264 | ||||
Other comprehensive income | (121,987) | (121,796) | (121,796) | (191) | ||||
Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) | 0 | 0 | 0 | |||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan | (6,156) | $ 6,156 | ||||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan, shares | 322,853 | |||||||
Stock-based compensation related to the 2011 Equity Incentive Plan | 2,788 | 2,788 | 2,788 | |||||
Dividends to non-controlling interests | (129) | (129) | ||||||
Balance at Dec. 31, 2015 | $ 286,890 | 286,273 | 12,606 | 193,158 | (424,263) | 617 | $ 371,857 | $ 132,915 |
Balance of common stock, shares at Dec. 31, 2015 | 210,538,896 | 130,538,896 | 80,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) for the year | $ 78,988 | 78,810 | 78,810 | 178 | ||||
Other comprehensive income | (17,424) | (17,386) | (17,386) | (38) | ||||
Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) | 0 | |||||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan | (2,112) | $ 2,112 | ||||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan, shares | 172,328 | |||||||
Stock-based compensation related to the 2011 Equity Incentive Plan | 3,294 | 3,294 | 3,294 | |||||
Dividends to non-controlling interests | (172) | (172) | ||||||
Balance at Dec. 31, 2016 | $ 351,576 | 350,991 | 13,788 | 271,968 | (441,649) | 585 | $ 373,969 | $ 132,915 |
Balance of common stock, shares at Dec. 31, 2016 | 210,711,224 | 130,711,224 | 80,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) for the year | $ 129,499 | 129,166 | 129,166 | 333 | ||||
Other comprehensive income | 12,285 | 12,302 | 12,302 | (17) | ||||
Dividends to Arcos Dorados Holdings Inc.’s shareholders ($0.24 per share) | 0 | |||||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan | (2,763) | $ 2,763 | ||||||
Issuance of shares in connection with the partial vesting of outstanding restricted share units under the 2011 Equity Incentive Plan, shares | 361,284 | |||||||
Stock-based compensation related to the 2011 Equity Incentive Plan | 3,191 | 3,191 | 3,191 | |||||
Portion of non-controlling interests related to business sold | (108) | (108) | ||||||
Dividends to non-controlling interests | (301) | (301) | ||||||
Balance at Dec. 31, 2017 | $ 496,142 | $ 495,650 | $ 14,216 | $ 401,134 | $ (429,347) | $ 492 | $ 376,732 | $ 132,915 |
Balance of common stock, shares at Dec. 31, 2017 | 211,072,508 | 131,072,508 | 80,000,000 |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends to Arcos Dorados Holdings Inc.'s shareholders, per share (in dollars per share) | $ 0 | $ 0 | $ 0.24 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and nature of business Arcos Dorados Holdings Inc. (the “Company”) is a limited liability company organized and existing under the laws of the British Virgin Islands. The Company’s fiscal year ends on the last day of December. The Company has through its wholly-owned Company Arcos Dorados Group B.V., a 100% equity interest in Arcos Dorados B.V. (“ADBV”). On August 3, 2007 the Company, indirectly through its wholly-owned subsidiary ADBV, entered into a Stock Purchase Agreement and Master Franchise Agreements (“MFAs”) with McDonald’s Corporation pursuant to which the Company completed the acquisition of the McDonald’s business in Latin America and the Caribbean (“LatAm business”). See Note 4 for details. Prior to this acquisition, the Company did not carry out operations. The Company’s rights to operate and franchise McDonald’s-branded restaurants in the Territories, and therefore the ability to conduct the business, derive exclusively from the rights granted by McDonald’s Corporation in the MFAs through 2027. The initial term of the MFA for French Guyana, Guadeloupe and Martinique was ten years through August 2, 2017 with an option to extend the agreement for these territories for an additional period of ten years , through August 2, 2027. On July 20, 2016, the Company has exercised its option to extend the MFA for these three territories. The Company, through ADBV’s wholly-owned and majority owned subsidiaries, operates and franchises McDonald’s restaurants in the food service industry. The Company has operations in twenty territories as follows: Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas (USVI) and Venezuela. All restaurants are operated either by the Company’s subsidiaries or by independent entrepreneurs under the terms of sub-franchisee agreements (franchisees). |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has elected to report its consolidated financial statements in United States dollars (“$” or “US dollars”). Reclassifications Certain reclassifications have been made from "Occupancy and other operating expenses" to "Payroll and employee benefits" in the Company's consolidated statements of income (loss), totaling $44,415 , to the prior year information to conform to the current year presentation, for the fiscal year ended December, 31, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of significant accounting policies The following is a summary of significant accounting policies followed by the Company in the preparation of the consolidated financial statements. Use of estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Foreign currency matters The financial statements of the Company’s foreign operating subsidiaries are translated in accordance with guidance in ASC 830 Foreign Currency Matters. Except for the Company’s Venezuelan operations, the functional currencies of the Foreign currency matters (continued) Company’s foreign operating subsidiaries are the local currencies of the countries in which they conduct their operations. Therefore, assets and liabilities are translated into US dollars at the balance sheet date exchange rates, and revenues, expenses and cash flow are translated at average rates prevailing during the periods. Translation adjustments are included in the “Accumulated other comprehensive losses” component of shareholders’ equity. The Company includes foreign currency exchange results related to monetary assets and liabilities transactions, including intercompany transactions, denominated in currencies other than its functional currencies in its income (loss) statement. Since January 1, 2010, Venezuela has considered to be highly inflationary, and as such, the financial statements of the Company’s Venezuelan subsidiaries are remeasured as its functional currency was the reporting currency (US dollars). As a result, remeasurement gains and losses are recognized in earnings rather than in the cumulative translation adjustment, component of “Accumulated other comprehensive losses” within shareholders’ equity. See Note 22 for additional information pertaining to the Company’s Venezuelan operations, including currency restrictions and controls existing in the country and a discussion of the exchange rate used for remeasurement purposes. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less, from the date of purchase, to be cash equivalents. Revenue recognition The Company’s revenues consist of sales by Company-operated restaurants and revenues from restaurants operated by franchisees. Sales by Company-operated restaurants are recognized at the point of sale. The Company presents sales net of sales tax and other sales-related taxes. Revenues from restaurants operated by franchisees include rental income, initial franchise fees and royalty income. Rental income is measured on a monthly basis based on the greater of a fixed rent, computed on a straight-line basis, or a certain percentage of gross sales reported by franchisees. Initial franchise fees represent the difference between the amount the Company collects from the franchisee and the amount the Company pays to McDonald’s Corporation upon the opening of a new restaurant. Royalty income represents the difference, if any, between the amount the Company collects from the franchisee and the amount the Company is required to pay to McDonald’s Corporation. Royalty income is recognized in the period earned. Accounts and notes receivable and allowance for doubtful accounts Accounts receivable primarily consist of royalty and rent receivables due from franchisees and debit and credit card receivables. Accounts receivable are initially recorded at fair value and do not bear interest. Notes receivable relates to interest-bearing financing granted to certain franchisees in connection with the acquisition of equipment and third-party suppliers. The Company maintains an allowance for doubtful accounts in an amount that it considers sufficient to cover losses resulting from the inability of its franchisees to make required payments. In judging the adequacy of the allowance for doubtful accounts, the Company considers multiple factors including historical bad debt experience, the current economic environment and the aging of the receivables. Other receivables Other receivables primarily consist of value-added tax and other tax receivables (amounting to $16,215 and $15,089 as of December 31, 2017 and 2016 , respectively). Other receivables are reported at the amount expected to be collected. Inventories Inventories are stated at the lower of cost or market, with cost being determined on a first-in, first-out basis. Property and equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Property costs include costs of land and building for both company-operated and franchise restaurants while equipment costs primarily relate to company-operated restaurants. Cost of property and equipment acquired from McDonald’s Corporation (as part of the acquisition of LatAm business) was determined based on its estimated fair market value at the acquisition date, then partially reduced by the allocation of the negative goodwill that resulted from the purchase price allocation. Cost of property and equipment acquired or constructed after the acquisition of LatAm business in connection with the Company’s restaurant reimaging and extension program is comprised of acquisition and construction costs and capitalized internal costs. Capitalized internal costs include payroll expenses related to employees fully dedicated to restaurant construction projects and related travel expenses. Capitalized payroll costs are allocated to each new restaurant location based on the actual time spent on each project. The Company commences capitalizing costs related to construction projects when it becomes probable that the project will be developed – when the site has been identified and the related profitability assessment has been approved. Maintenance and repairs are expensed as incurred. Accumulated depreciation is calculated using the straight-line method over the following estimated useful lives: buildings – up to 40 years; leasehold improvements – the lesser of useful lives of assets or lease terms which generally include option periods; and equipment 3 to 12 years. Intangible assets, net Intangible assets include computer software costs, initial franchise fees, reacquired rights under franchise agreements, letter of credit fees and others. The Company follows the provisions of ASC 350-40-30 within ASC 350 Intangibles, Subtopic 40 Internal Use Software which requires the capitalization of costs incurred in connection with developing or obtaining software for internal use. These costs are amortized over a period of three years on a straight line basis. The Company is required to pay to McDonald’s Corporation an initial franchisee fee upon opening of a new restaurant. The initial franchise fee related to Company-operated restaurants is capitalized as an intangible asset and amortized on a straight-line basis over the term of the franchise. A reacquired franchise right is recognized as an intangible asset as part of the business combination in the acquisition of franchised restaurants apart from goodwill with an assigned amortizable life limited to the remaining contractual term (i.e., not including any renewal periods). The value assigned to the reacquired franchise right excludes any amounts recognized as a settlement gain or loss and is limited to the value associated with the remaining contractual term and operating conditions for the acquired restaurants. The reacquired franchise right is measured using a valuation technique that considers restaurant's cash flows after payment of an at-market royalty rate to the Company. The cash flows are projected for the remaining contractual term, regardless of whether market participants would consider potential contractual renewals in determining its fair value. Letter of credit fees are amortized on a straight-line basis over the term of the Letter of Credit. Impairment and disposal of long-lived assets In accordance with the guidance within ASC 360-10-35, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of the asset may not be recoverable. For purposes of reviewing assets for potential impairment, assets are grouped at a country level for each of the operating markets. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, each restaurant’s Impairment and disposal of long-lived assets (continued) cash flows are not largely independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value considering its highest and best use, as determined by an estimate of discounted future cash flows or its market value. During March 2015, the Company performed an impairment testing of its long-lived assets in Venezuela considering the operating losses incurred in this market as a consequence of the Company’s currency exchange rate changes (indicator of potential impairment), as mentioned in Note 22. As a result of this analysis, the Company recorded impairment charges of $7,804 during the fiscal year 2015, primarily associated to an advanced payment for a real estate given during the fourth quarter of 2013, using a fair market value approach. The impairment charges also included certain restaurants with undiscounted future cash flows insufficient to recover their carrying value. In the fourth quarter of 2017, 2016 and 2015, the Company assessed all markets for impairment indicators. As a result of these assessments, the Company concluded the second step was required to be performed as a component of the impairment testing of its long-lived assets in the following markets on a per store basis: 2017 2016 2015 Puerto Rico Yes Yes Yes Mexico Yes Yes Yes Peru Yes Yes Yes Aruba Yes Yes Yes Curacao No No Yes USVI Yes Yes Yes Venezuela Yes Yes Yes Colombia Yes Yes Yes Ecuador Yes Yes Yes Trinidad and Tobago Yes Yes No As a result of the impairment testing the Company recorded the following impairment charges, for the markets indicated below, within Other operating income, net on the Statements of Income (loss): Fiscal year Markets Total 2017 Mexico, Puerto Rico, USVI, Peru, Ecuador, Colombia, Venezuela and Trinidad and Tobago $ 17,564 2016 Mexico, Puerto Rico, USVI, Peru, Ecuador, Venezuela and Trinidad and Tobago 7,697 2015 Mexico, Peru, Colombia and Venezuela 12,343 Goodwill Goodwill represents the excess of cost over the estimated fair market value of net tangible assets and identifiable intangible assets acquired. In accordance with the guidance within ASC 350 Intangibles-Goodwill and Other, goodwill is stated at cost and reviewed for impairment on an annual basis. The annual impairment test is performed during the fourth quarter of the fiscal year and compares the fair value of each reporting unit, generally based on discounted future cash flows, with its Goodwill (continued) carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill. In assessing the recoverability of the goodwill, the Company considers changes in economic conditions and makes assumptions regarding estimated future cash flows and other factors. Estimates of future cash flows are highly subjective judgments based on the Company’s experience and knowledge of its operations. These estimates can be significantly impacted by many factors including changes in global and local business and economic conditions, operating costs, inflation, competition, and consumer and demographic trends. As a result of the analyses performed the Company recorded the following impairment charges, related to goodwill generated in the acquisition of franchised restaurants, for the markets indicated below within Other operating income, net on the statements of income (loss): Fiscal year Markets Total 2017 Mexico $ 200 2016 Mexico 5,045 2015 Argentina 679 Advertising costs Advertising costs are expensed as incurred. Advertising expenses related to Company-operated restaurants were $130,277 , $117,250 and $122,920 in 2017 , 2016 and 2015 , respectively. Advertising expenses related to franchised operations do not affect the Company’s expenses since these are recovered from franchisees. Advertising expenses related to franchised operations were $46,536 , $36,374 and $35,131 in 2017 , 2016 and 2015 , respectively. Accounting for income taxes The Company records deferred income taxes using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The guidance requires companies to set up a valuation allowance for that component of net deferred tax assets which does not meet the more likely than not criterion for realization. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company is regularly audited by tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Accounts payable outsourcing The Company offers its suppliers access to an accounts payable services arrangement provided by third party financial institutions. This service allows the Company’s suppliers to view its scheduled payments online, enabling them to better manage Accounts payable outsourcing (continued) their cash flow and reduce payment processing costs. Independent of the Company, the financial institutions also allow suppliers to sell their receivables to the financial institutions in an arrangement separately negotiated by the supplier and the financial institution. The Company has no economic interest in the sale of these receivables and no direct relationship with the financial institutions concerning the sale of receivables. All of the Company’s obligations, including amounts due, remain to the Company’s suppliers as stated in the supplier agreements. As of December 31, 2017 and 2016 , $2,117 and $2,241 , respectively, of the Company’s total accounts payable are available for this purpose and have been sold by suppliers to participating financial institutions. Share-based compensation The Company recognizes compensation expense as services required to earn the benefits are rendered. See Note 17 for details of the outstanding plans and the related accounting policies. Derivative financial instruments The Company utilizes certain hedge instruments to manage its interest rate and foreign currency rate exposures. The counterparties to these instruments generally are major financial institutions. The Company does not hold or issue derivative instruments for trading purposes. In entering into these contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The Company does not expect any losses as a result of counterparty defaults. All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Additionally, the fair value adjustments will affect either shareholders’ equity as accumulated other comprehensive income (loss) or net income (loss) depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. Severance payments Under certain laws and labor agreements of the countries in which the Company operates, the Company is required to make minimum severance payments to employees who are dismissed without cause and employees leaving its employment in certain other circumstances. The Company accrues severance costs if they relate to services already rendered, are related to rights that accumulate or vest, are probable of payment and can be reasonably estimated. Otherwise, severance payments are expensed as incurred. Provision for contingencies The Company accrues liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and the Company’s lawyers’ experience in contesting, litigating and settling other matters. As the scope of the liabilities becomes better defined, there may be changes in the estimates of future costs. See Note 18 for details. Comprehensive income (loss) Comprehensive income (loss) includes net income as currently reported under generally accepted accounting principles and also includes the impact of other events and circumstances from non-owner sources which are recorded as a separate component of shareholders’ equity. The Company reports foreign currency translation gains and losses, unrealized results on cash flow hedges as well as unrecognized post-retirement benefits as components of comprehensive income (loss). Sales of property and equipment and restaurant businesses The Company recognizes the sale of property and equipment when: (a) the profit is determinable, that is, the collectibility of the sales price is reasonably assured or the amount that will not be collectible can be estimated, and (b) the earnings process is virtually complete, that is, the Company is not obliged to perform significant activities after the sale to earn the profit. The sale of restaurant businesses is recognized when the Company transfers substantially all of the risks and rewards of ownership. In order to determine the gain or loss on the disposal, the goodwill associated with the sold of property and equipment and restaurant business, if any, is considered within the carrying value. The amount of goodwill to be included in that carrying amount is based on the relative fair value of the item to be disposed and the portion of the reporting unit that will be retained. During fiscal years 2017 , 2016 and 2015 , the Company recorded results from sales of property and equipment and restaurant businesses, amounting to $107,867 , $71,712 and $14,332 , respectively, included within “Other operating income Sales of property and equipment and restaurant businesses (continued) (expenses), net”. The sales performed during fiscal years 2017 and 2016 , were primarily related to the redevelopment of certain real estate assets and restaurant businesses, related to the refranchising of a number of company-operated restaurants. In addition, as of December 31, 2016 , the Company received advances related to the redevelopment of certain real estate assets and restaurant businesses plan for which the sales had not met the aforementioned conditions, amounting to $34,341 , recorded within the current portion of “Accrued payroll and other Liabilities”. Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASC 606), “Revenue Recognition - Revenue from Contracts with Customers,” which amends the guidance in former ASC 605, “Revenue Recognition,” and becomes effective beginning January 1, 2017. In August 12, 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017. The standard’s core principle is that a Company must recognize revenue when it transfers promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. After evaluating the effect of adopting the new standard, the Company concluded that the sole source of revenue affected would be the initial franchise fee. The Company's current accounting policy is to recognize it when a new restaurant opens or at the start of a new franchise term, however, in accordance with the new guidance, the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement, and will therefore be treated as a single performance obligation. As such, initial franchise fees received will be deferred over the term of the franchise agreement. The Company will adopt the modified retrospective method as of the date the new guidance become effective. Consequently, a deferred income of $5 million will be recognized from date of the adoption (January 2018). In addition, in February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which modifies lease accounting for lessees to increase transparency and comparability by recording a right-of-use asset and lease liability on their balance sheet for operating leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. This standard is effective for annual periods beginning after December 15, 2018, including interim periods. The Company will adopt ASU 2016-02 in its first quarter of 2019 utilizing the modified retrospective transition method and expects to apply the transition practical expedients allowed by the standard. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. No other new accounting pronouncement issued or effective during the periods had or is expected to have a material impact on the Company’s consolidated financial statements. |
Acquisition of Businesses
Acquisition of Businesses | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition of Businesses | Acquisition of businesses LatAm Business On August 3, 2007, the Company, indirectly through its wholly-owned subsidiary ADBV, entered into a Stock Purchase Agreement with McDonald’s Corporation pursuant to which the Company completed the acquisition of the McDonald’s business in Latin America and the Caribbean for a final purchase price of $698,080 . The acquisition of the LatAm business was accounted for by the purchase method of accounting and, accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of acquisition. When the fair value of the net assets acquired exceeded the purchase price, the resulting negative goodwill was allocated to partially reduce the fair value of the non-current assets acquired on a pro-rata basis. In connection with this transaction, ADBV and certain subsidiaries (the “MF subsidiaries”) also entered into 20 -year Master Franchise Agreements (“MFAs”) with McDonald’s Corporation which grants to the Company and its MF subsidiaries the following: i. The right to own and operate, directly or indirectly, franchised restaurants in each territory; ii. The right and license to grant sub franchises in each territory; iii. The right to adopt and use, and to grant the right and license to sub franchisees to adopt and use, the system in each territory; iv. The right to advertise to the public that it is a franchisee of McDonald’s; v. The right and license to grant sub franchises and sublicenses of each of the foregoing rights and licenses to each MF subsidiary. The Company is required to pay to McDonald’s Corporation continuing franchise fees (Royalty fees) on a monthly basis. The amount to be paid during the first 10 years of the MFAs is equal to 5% of the US dollar equivalent of the gross product sales of each of the franchised restaurants. This percentage increases to 6% and 7% for the subsequent two 5 -year periods of the agreement. Payment of monthly royalties is due on the seventh business day of the next calendar month. Pursuant to the MFAs provisions, McDonald’s Corporation has the right to (a) terminate the MFAs, or (b) exercise a call option over the Company’s shares or any MF subsidiary, if the Company or any MF subsidiary (i) fails to comply with the McDonald’s System (as defined in the MFAs), (ii) files for bankruptcy, (iii) defaults on its financial debt payments, (iv) substantially fails to achieve targeted openings and reinvestments requirements, or (v) upon the occurrence of any other event of default as defined in the MFAs. Other acquisitions During fiscal years 2017 and 2015 , the Company acquired certain franchised restaurants in certain territories. No acquisitions of franchised restaurant were made during fiscal year 2016. Presented below is supplemental information about these acquisitions: Other acquisitions (continued) Purchases of restaurant businesses: 2017 2016 2015 Property and equipment $ 429 $ — $ 936 Identifiable intangible assets 5,346 — 853 Goodwill 200 — 1,621 Assumed debt — — (206 ) Gain on purchase of franchised restaurants (4,808 ) — — Purchase price 1,167 — 3,204 Restaurants sold in exchange (261 ) — — Settlement of franchise receivables (36 ) — (2,113 ) Net cash paid at acquisition date $ 870 $ — $ 1,091 |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | Accounts and notes receivable, net Accounts and notes receivable, net consist of the following at year end: 2017 2016 Receivables from franchisees $ 67,115 $ 45,700 Debit and credit card receivables 48,610 40,652 Meal voucher receivables 11,683 11,024 Notes receivable 3,685 2,230 Allowance for doubtful accounts (19,791 ) (16,367 ) $ 111,302 $ 83,239 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following at year end: 2017 2016 Prepaid taxes $ 48,076 $ 52,407 Prepaid expenses 27,478 18,753 Promotion items and prepayments 17,683 12,853 Other 967 3,630 $ 94,204 $ 87,643 |
Miscellaneous
Miscellaneous | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Miscellaneous | Miscellaneous Miscellaneous consist of the following at year end: 2017 2016 Judicial deposits $ 44,854 $ 35,652 Tax credits 22,402 21,060 Prepaid property and equipment 10,317 13,279 Notes receivable 4,406 4,509 Rent deposits 3,273 4,471 Other 13,039 10,690 98,291 89,661 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net Property and equipment, net consist of the following at year-end: 2017 2016 Land $ 158,634 $ 145,417 Buildings and leasehold improvements 633,747 605,156 Equipment 642,449 563,973 Total cost 1,434,830 1,314,546 Total accumulated depreciation (544,094 ) (466,580 ) $ 890,736 $ 847,966 Total depreciation expense for fiscal years 2017 , 2016 and 2015 amounted to $89,085 , $83,993 and $96,383 , respectively. |
Net Intangible Assets and Goodw
Net Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net Intangible Assets and Goodwill | Net intangible assets and goodwill Net intangible assets and goodwill consist of the following at year-end: 2017 2016 Net intangible assets (i) Computer software cost $ 72,717 $ 66,969 Initial franchise fees 15,572 15,039 Reacquired franchised rights 13,667 8,219 Letter of credit fees 940 940 Others 1,000 1,000 Total cost 103,896 92,167 Total accumulated amortization (63,245 ) (56,242 ) Subtotal 40,651 35,925 Goodwill (ii) 2017 2016 Brazil 5,013 5,100 Chile 1,209 1,110 Argentina 350 411 Ecuador 273 273 Peru 174 167 Colombia 59 58 Subtotal 7,078 7,119 $ 47,729 $ 43,044 (i) Total amortization expense for fiscal years 2017 , 2016 and 2015 amounted to $10,297 , $8,976 and $14,332 , respectively. The estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: $16,162 for 2018 , $11,402 for 2019 ; $4,737 for 2020 ; $1,635 for 2021 ; $1,239 for 2022 ; and thereafter $5,476 . (ii) Related to the acquisition of franchised restaurants (Brazil, Peru, Chile, Argentina and Colombia) and non-controlling interests in subsidiaries (Ecuador and Chile). |
Accrued Payroll and Other Liabi
Accrued Payroll and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Payroll and Other Liabilities | Accrued payroll and other liabilities Accrued payroll and other liabilities consist of the following at year end: 2017 2016 Current: Accrued payroll $ 97,995 $ 95,754 Advances related to pending sales of property and equipment and restaurant businesses — 34,341 Accrued expenses 13,574 9,492 Other liabilities 7,519 4,855 $ 119,088 $ 144,442 Non-current: Deferred rent 15,198 13,782 Other liabilities 14,168 9,978 $ 29,366 $ 23,760 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-Term Debt | Short-term debt Revolving Credit Facilities The Company entered into revolving credit facilities in order to borrow money from time to time to cover its working capital needs and for other general corporate purposes. On August 1, 2017, ADBV renewed its committed revolving credit facility with Bank of America, N.A. (BOFA), as lender, for up to $25 million maturing on August 3, 2018. Each loan made to ADBV under this agreement will bear interest at an annual rate equal to LIBOR plus 2.50% . In addition, on November 1, 2017, ADBV renewed its revolving credit facility with JPMorgan Chase Bank, N.A, for up to $25 million maturing on November 10, 2018, with an annual interest rate equal to LIBOR plus 2.25% . Interest on each loan will be payable at maturity and on a quarterly basis, beginning with the date that is three calendar months following the date the loan is made. Principal is due upon maturity. The obligations of ADBV under the revolving credit facilities are jointly and severally guaranteed by certain of the Company’s subsidiaries on an unconditional basis. Furthermore, the agreements include customary covenants including, among others, restrictions on the ability of ADBV, the guarantors and certain material subsidiaries to: (i) incur liens, (ii) enter into any merger, consolidation or amalgamation; (iii) sell, assign, lease or transfer all or substantially all of the borrower’s or guarantor’s business or property; (iv) enter into transactions with affiliates; (v) engage in substantially different lines of business; (vi) engage in transactions that violate certain anti-terrorism laws; and (vii) is required to comply with a consolidated net indebtedness to EBITDA ratio lower than 3.0 to 1 as of any last day of the fiscal quarter of the borrower. The revolving credit facilities provide for customary events of default, which, if any of them occurs, would permit or require the lender to terminate its obligation to provide loans under the revolving credit facilities and/or to declare all sums outstanding under the loan documents immediately due and payable. As of December 31, 2017 , the mentioned ratio was 0.75 and thus the Company is currently in compliance with the ratio requirement under both revolving credit facilities. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term debt Long-term debt consists of the following at year-end: 2017 2016 2027 Notes $ 265,000 $ — 2023 Notes 348,069 393,767 Secured Loan Agreement — 167,262 Capital lease obligations 4,539 4,704 Other long-term borrowings 22,900 25,553 Subtotal 640,508 591,286 Discount on 2023 Notes (3,804 ) (5,029 ) Premium on 2023 Notes 1,438 1,910 Fair value adjustment related to Secured Loan Agreement (i) — (2,877 ) Deferred financing costs (4,641 ) (5,611 ) Total 633,501 579,679 Current portion of long-term debt 4,359 28,099 Long-term debt, excluding current portion $ 629,142 $ 551,580 (i) The carrying value of hedged items in fair value hedges, are adjusted for fair value changes to the extent they are attributable to the risks designated as being hedged. The related hedging instrument was also recorded at fair value included within "Derivative instruments" in current and non-current liabilities as of December 31, 2016. 2027, 2023 and 2016 Notes: The following table presents additional information related to the 2027, 2023 and 2016 Notes (the "Notes"): Principal as of December 31, Annual interest rate Currency 2017 2016 Maturity 2027 Notes 5.875 % USD 265,000 — April 4, 2027 2023 Notes 6.625 % USD 348,069 393,767 September 27, 2023 2027, 2023 and 2016 Notes (continued): Interest Expense (i) DFC Amortization (i) Accretion of Premium and Amortization of Discount (i) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2027 Notes 11,547 — — 224 — — — — — 2023 Notes 23,885 28,516 31,387 610 943 439 752 1,157 515 2016 Notes — 6,668 20,991 — 391 805 — (266 ) (496 ) (i) These charges are included within "Net interest expense" in the consolidated statements of income. On July 13, 2011 and April 24, 2012, the Company issued Brazilian reais notes due in 2016 (the "2016 Notes") amounting to Brazilian reais (“BRL”) 675,000 . Periodic payments of principal were not required and interest was paid semi-annually beginning on January 13, 2012. The Company incurred $3,699 of financing costs related to these issuances, which were capitalized as deferred financing costs ("DFC") and were amortized over the life of the notes. The following table presents information related to the purchase and repayments of the principal of the 2016 Notes: Amount Date Redemption price BRL $ November 25, 2015 93.75% 40,000 9,995 November 30, 2015 93.75% 7,039 1,715 January 29, 2016 97.75% 1,180 288 April 21, 2016 100.00% 421,765 118,797 May 5, 2016 97.00% 4,025 1,106 July 13, 2016 100.00% 200,991 60,965 Total 675,000 192,866 On September 27, 2013, the Company issued senior notes for an aggregate principal amount of $473.8 million , which are due in 2023 (the "2023 Notes"). Periodic payments of principal are not required and interest is paid semi-annually commencing on March 27, 2014. The Company incurred $3,313 of financing costs related to the cash issuance of 2023 Notes, which were capitalized as deferred DFC and are being amortized over the life of the notes. On June 1, 2016, the Company launched a cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price equal to 98% , which expired on June 28, 2016. The holders who tendered their 2023 Notes prior to June 14, received a redemption price equal to 101% . As a consequence of this transaction, the Company redeemed 16.90% of the outstanding principal. The total payment was $80,800 (including $800 of early tender payment) plus accrued and unpaid interest. The results related to the cash tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated statement of income. Furthermore, on March 16, 2017, the Company launched another cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price equal to 104% , which expired on April 12, 2017. The holders who tendered their 2023 Notes prior to March 29, 2017, received a redemption price equal to 107% . As a consequence of this transaction, the Company redeemed 11.6% of the outstanding principal. The total payment was $48,885 (including $3,187 of early tender payment) plus accrued 2027, 2023 and 2016 Notes (continued): and unpaid interest. The results related to the cash tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated statement of income. In April 2017, the Company issued senior notes for an aggregate principal amount of $265 million , which are due in 2027 (the “2027 Notes”). Periodic payments of principal are not required and interest is paid semi-annually commencing on October 4, 2017. The proceeds from the issuance of the 2027 Notes were used to repay the Secured Loan Agreement, unwind the related derivative instruments (described in Note 13), pay the principal and premium on the 2023 Notes (in connection with aforementioned tender offer) and for general purposes. The Company incurred $3,001 of financing costs related to the issuance of 2027 Notes, which were capitalized as DFC and are being amortized over the life of the notes. The Notes, are redeemable, in whole or in part, at the option of the Company at any time at the applicable redemption price set forth in the indenture governing them. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s subsidiaries. The Notes and guarantees (i) are senior unsecured obligations and rank equal in right of payment with all of the Company’s and guarantors’ existing and future senior unsecured indebtedness; (ii) will be effectively junior to all of the Company’s and guarantors’ existing and future secured indebtedness to the extent of the value of the Company’s assets securing that indebtedness; and (iii) are structurally subordinated to all obligations of the Company’s subsidiaries that are not guarantors. The indenture governing the Notes limits the Company’s and its subsidiaries’ ability to, among other things, (i) create certain liens; (ii) enter into sale and lease-back transactions; and (iii) consolidate, merge or transfer assets. In addition, the indenture governing the 2027 Notes, limits the Company’s and its subsidiaries’ ability to: incur in additional indebtedness and make certain restricted payments, including dividends. These covenants are subject to important qualifications and exceptions. The indenture governing the Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then-outstanding Notes to be due and payable immediately. The 2023 Notes are listed on the Luxembourg Stock Exchange and trade on the Euro MTF Market. Secured Loan Agreement On March 29, 2016, the Company’s Brazilian subsidiary signed a $167,262 Secured Loan Agreement (the "Loan") with five off-shore lenders namely: Citibank N.A., Itaú BBA International plc, Santander (Brasil) S.A., Cayman Islands Branch, Bank of America N.A. and JP Morgan Chase Bank, N.A. Each loan under the agreement bore interest at the following annual interest rates: Lender Annual Interest Rate Citibank N.A. 3M LIBOR + 2.439% Itaú BBA International plc 5.26% Banco Santander (Brasil) S.A., Cayman Islands Branch 4.7863% Bank of America N.A. 3M LIBOR + 4.00% JP Morgan Chase Bank, N.A. 3M LIBOR + 3.92% In order to fully convert each loan of the agreement into BRL, the Brazilian subsidiary entered into five cross-currency interest rate swap agreements with the local subsidiaries of the same lenders. Consequently, the loans were fully converted into BRL amounting to BRL 613,850 . Refer to Note 13 for more details. Secured Loan Agreement (continued) Considering the cross currency interest rate swap agreements, the final interest rate of the Loan was the Interbank Market reference interest rate (known in Brazil as “CDI”) plus 4.50% per year. Interest payments were made quarterly, beginning June 2016 and principal payments were made semi-annually, beginning September 2017. The Loan proceeds were used primarily to repay the 2016 Notes mentioned above. The Loan would have matured on March 30, 2020 and periodic payments of principal were required. Prepayments were allowed without penalty. On April 11, 2017, the Company repaid the Loan with a total payment of $169.7 million including the outstanding principal, plus accrued and unpaid interest and certain transaction costs. The Company incurred $3,243 of financing costs related to the issuance of the Loan, which were capitalized as DFC and were amortized over the life of the Loan. As a consequence of the repayment, the remaining DFC were recognized as interest expense in the consolidated statement of income. The following table presents information related to the Secured Loan Agreement: Interest Expense (i) (ii) DFC Amortization (ii) Other Costs (ii) (iii) 2017 2016 2015 2017 2016 2015 2017 2016 2015 $ 2,570 $ 6,519 $ — $ 3,251 $ 814 $ — $ 2,249 $ — $ — (i) These charges do not include the effect of the cross-currency interest rate swap agreements mentioned in Note 13, amounting to a loss of $6,921 and $18,177 , during fiscal years 2017 and 2016, respectively. Including these effects the total interest cost amounts to $9,491 and $24,696 , respectively. (ii) These charges are included within "Net interest expense" in the consolidated statement of income. (iii) Transaction costs related to the repayment of the Loan. Other required disclosure At December 31, 2017 , future payments related to the Company’s long-term debt are as follows: Other required disclosure (continued) Principal Interest Total 2018 4,359 40,920 45,279 2019 4,404 40,557 44,961 2020 3,895 40,217 44,112 2021 3,831 39,862 43,693 2022 4,040 39,468 43,508 Thereafter 619,979 94,148 714,127 Total payments 640,508 295,172 935,680 Interest — (295,172 ) (295,172 ) Discount on 2023 Notes (3,804 ) — (3,804 ) Premium on 2023 Notes 1,438 — 1,438 Deferred financing cost (4,641 ) — (4,641 ) Long-term debt $ 633,501 $ — $ 633,501 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative instruments The following table presents the fair values of derivative instruments included in the consolidated balance sheets as of December 31, 2017 and 2016 : Derivatives Fair Value Type of Derivative Balance Sheets Location 2017 2016 Derivatives designated as hedging instruments Cash flow hedge Forward contracts Other receivables $ 309 $ — Forward contracts Accrued payroll and other liabilities $ (517 ) $ (100 ) Cross-currency interest rate swap (i) Derivative instruments 7,835 (3,274 ) Call spread (i) Derivative instruments (10,908 ) — Coupon-only swap (i) Derivative instruments 15,114 — Fair value hedge Cross-currency interest rate swap (i) Derivative instruments — (27,217 ) Total derivative instruments $ 11,833 $ (30,591 ) (i) At December 31, 2017 , presented in the consolidated balance sheet as follows: $35,069 as non-current asset, $15,522 as a current liability and $7,506 as non-current liability. At December 31, 2016 , presented in the consolidated balance sheet as follows: $19,876 as a current liability and $10,615 as a non-current liability. Derivatives designated as hedging instruments Cash flow hedge Forward contracts The Company has entered into various forward contracts in a few territories in order to hedge a portion of the foreign exchange risk associated with forecasted imports of goods. The effect of the hedges result in fixing the cost of goods acquired (i.e. the net settlement or collection adjusts the cost of inventory paid to the suppliers). As of December 31, 2017 , the Company has forward contracts outstanding with a notional amount of $24,397 that mature during 2018. The Company made net (payments) collections totaling $(1,236) , $(1,307) and $2,306 during fiscal years 2017 , 2016 and 2015 , respectively, as a result of the net settlements of these derivatives. Cross-currency interest rate swap The Company entered into three cross-currency interest rate swap agreements to hedge all the variability in a portion ( 73.00% ) of the principal and interest collections of its BRL intercompany loan receivables with ADBV. The agreements were signed during November 2013 (amended in February 2017), June and July 2017. The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate JP Morgan Chase Bank, N.A. (i) BRL 108,000 13 % $ 35,400 4.38 % March 31/ September 30 September 2023 JP Morgan Chase Bank, N.A. BRL 98,670 13 % $ 30,000 6.02 % March 31/ September 30 September 2023 Citibank N.A. BRL 94,200 13 % $ 30,000 6.29 % March 31/ September 30 September 2023 (i) During the fiscal year ended December 31, 2017 , the agreement was amended twice: on February 9, 2017 and February 22, 2017. All the terms of the swap agreement match the terms of the BRL intercompany loan receivable. As a result of the amendments the Company paid $2,689 . According to ASC 815-30-40, the amount deferred in accumulated other comprehensive income until the date of the last amendment, amounting to $677 as of December 31, 2017 , will be amortized to earnings as the originally hedged cash flows affects the statement of income. During April 2017, the Company’s Brazilian subsidiary entered into similar agreements in order to hedge all the variability in a portion (50%) of the principal and interest payable of intercompany loan payables nominated in US dollar. The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate BAML (i) BRL 156,250 13.64 % $ 50,000 6.91 % March 31/ September 30 April 2027 Banco Santander S.A. BRL 155,500 13.77 % $ 50,000 6.91 % June 30/ December 31 September 2023 Derivatives designated as hedging instruments (continued) Cash flow hedge (continued) Cross-currency interest rate swap (continued) (i) Bank of America Merrill Lynch Banco Múltiplo S.A. The Company paid $6,163 and $2,795 of net interest during the fiscal years December 31, 2017 and 2016 , respectively. Call spread During April 2017, the Company’s Brazilian subsidiary entered into two call spread agreements in order to hedge the variability in a portion (50%) of the principal of intercompany loan payables nominated in US dollar. Call spread agreements consist of a combination of two call options: the Company bought an option to buy US dollar at a strike price equal to the BRL exchange rate at the date of the agreements, and wrote an option to buy US dollar at a higher strike price than the previous one. Both pair of options have the same notional amount and are based on the same underlying with the same maturity date. The following table presents information related to the terms of the agreements: Bank Nominal Amount Strike price Maturity Currency Amount Call option written Call option bought Citibank S.A. $ 50,000 4.49 3.11 September 2023 JP Morgan S.A. $ 50,000 5.20 3.13 April 2027 Coupon-only swap During April 2017, the Company’s Brazilian subsidiary entered into two coupon-only swap agreements in order to hedge the variability (50%) in the interest payable related to the intercompany loan aforementioned. The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate Citibank S.A. BRL 155,500 11.08 % $ 50,000 6.91 % June 30/ December 31 September 2023 JP Morgan S.A. BRL 156,250 11.18 % $ 50,000 6.91 % March 31/ September 30 April 2027 The Company paid $1,390 of net interest during the twelve months ended December 31, 2017 , related to these agreements. Additional disclosures The following table present the pretax amounts affecting income and other comprehensive income for the twelve months ended December 31, 2017 and 2016 for each type of derivative relationship: Derivatives designated as hedging instruments (continued) Cash flow hedge (continued) Additional disclosures (continued) Derivatives in Cash Flow Hedging Relationships (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) (i) Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) (ii) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Forward contracts $ (1,344 ) $ (1,861 ) $ 1,903 $ 1,236 $ 1,307 $ (2,306 ) $ — $ — $ — Cross-currency interest rate swaps 5,828 (16,952 ) 18,584 1,965 9,935 (11,903 ) — — (2,650 ) Call Spread 21,047 — — 2,791 — — — — — Coupon-only swap (13,598 ) — — (5,933 ) — — (101 ) — — Total 11,933 (18,813 ) 20,487 59 11,242 (14,209 ) (101 ) — (2,650 ) (i) The (loss) gain recognized in income related to forward contracts was recorded as an adjustment to food and paper. The net (loss) gain recognized in income, related to Cross-currency interest rate swaps is presented in the consolidated statement of income as follows: a gain (loss) of $7,532 and $(6,997) and $13,595 , for the fiscal years 2017, 2016 and 2015, respectively, as an adjustment to foreign currency exchange results and a loss of $9,497 and $2,938 and $1,692 , for the fiscal years 2017, 2016 and 2015, respectively as an adjustment to net interest expense. The gain (loss) recognized in income related to call spread agreements and coupon-only swap agreements were recorded as an adjustment to foreign currency exchange and interest expense, respectively. (ii) The gain recognized in income is presented within "Loss from derivative instruments". Fair value hedge Cross-currency interest rate swap On March 29, 2016, the Company entered into five cross-currency interest rate swap agreements (the "2016 cross-currency interest rate swap") in order to fully hedge the principal and interest cash flows of the Secured Loan Agreement described in Note 12, into BRL. The agreements were signed with the Brazilian subsidiaries of the banks participating in the secured loan. All the terms of the 2016 cross-currency interest rate swap agreements matched the terms of the Secured Loan Agreement. Pursuant to these agreements, the Company received interest in US dollar at an interest rate equal to the one it had to pay to the off-shore lenders over a notional amount of $167.3 million and paid interest in BRL at CDI plus 4.50% per year, over a notional amount of BRL 613.9 million quarterly, beginning June 2016. During April 2017, the Company unwound these agreements as a consequence of the repayment of the Secured Loan Agreement mentioned in Note 12. The total payment amounted to $39.1 million (BRL 122.7 million ), including $0.9 million of accrued and unpaid interest. During fiscal years 2017 and 2016, the accrued interest amounted to $6,921 and $18,177 , respectively. These charges do not include the effect of the Secured Loan Agreement mentioned in Note 12, amounting to a loss of $2,570 and $6,519 , respectively. Including these effects the total interest cost amounts to $9,491 and $24,696 , respectively. These amounts were recorded within “Net interest expense” in the Company’s consolidated statement of income. Derivatives designated as hedging instruments (continued) Fair value hedge (continued) Cross-currency interest rate swap These amounts were recorded within “Net interest expense” in the Company’s consolidated statement of income. According to ASC 815-25-35, the change in the fair value of the hedging instrument and the change in the fair value of the hedged item shall be recognized in earnings. If those results are not perfectly offset, the difference shall be considered as hedge ineffectiveness. The following table presents the pretax amounts affecting income for the fiscal years ended December 31, 2017 and 2016 , respectively: Cross-currency swaps (i) Derivatives in Fair Value Hedging Relationships 2017 2016 Loss recognized in Income on hedging derivatives (9,599) (5,814) Gain recognized in Income on hedging items 4,118 2,877 (i) The loss of $5,481 and $2,937 , in 2017 and 2016 respectively, related to the ineffective portion of derivatives, was recorded within “Loss from derivative instruments” in the Company’s consolidated statements of income (loss). Derivatives not designated as hedging instruments During fiscal year 2017, the Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings, within "Loss from derivatives instruments" in the Company´s consolidated statement of income. The Company paid $1,156 during the twelve months ended December 31, 2017 related to those forward contracts. Total equity return swap On August 13, 2012, the Company entered into a total equity return swap agreement with Goldman Sachs International (GSI) in order to minimize earning volatility related to a long-term incentive plan to reward employees implemented by ADBV in 2008, fully vested in March 2015. The agreement was renewed twice and as from the amendment signed on September 23, 2014, the Company was required to make a collateral deposit, which returned to the Company with the maturity of the agreement on September 12, 2015. During the third quarter of 2015, the Company paid $9,681 as settlement of the agreement. The Company did not designate this swap as a hedge under ASC 815. Therefore, the agreement was carried at fair market value in the consolidated balance sheets with changes reported in earnings, within "General and administrative expenses". The interest portion was recorded within “Net interest expense” in the Company’s consolidated statement of income. The following table presents amounts affecting income related to derivatives not designated as hedging instruments: Derivatives not designated as hedging instruments (continued) Total equity return swap (continued) Derivatives Not Designated as Hedging Instruments Location of Loss Recognized in Income Loss Recognized in Income on Derivative instruments 2017 2016 2015 Total equity return swap General and administrative expenses (i) $ — $ — $ (1,743 ) Net interest expense — — (453 ) Others Loss from derivative instruments — (127 ) (244 ) Total $ — 1,504 $ (127 ) $ (2,440 ) (i) For the fiscal year 2015, includes a loss amounting to $1,252 excluded from Adjusted EBITDA as from the total vesting of the plan. See Adjusted EBITDA reconciliation in Note 21. |
Operating Lease Agreements
Operating Lease Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Operating Lease Agreements | Operating lease agreements At December 31, 2017 , the Company was the lessee at 2,743 locations through ground leases (the Company leases the land and the Company or franchisee owns the building) and through improved leases (the Company leases land and buildings). Lease terms for most restaurants vary between 10 and 20 years and, in many cases, provide for rent escalations and renewal options, with certain leases providing purchase options. Escalations terms vary by reporting unit, with examples including fixed-rent escalations, escalations based on an inflation index, and fair value adjustments. According to rental terms, the Company pays monthly rent based on the greater of a fixed rent or a certain percentage of the Company’s gross sales. For most locations, the Company is obligated for the related occupancy costs including property taxes, insurance and maintenance. However, for franchised sites, the Company requires the franchisees to pay these costs. In addition, the Company is the lessee under non-cancelable leases covering certain offices and warehouses. In March 2010, the Company entered into an aircraft operating lease agreement for a term of 8 years, which provides for quarterly payments of $690 . The agreement includes a purchase option at the end of the lease term at fair market value and also an early purchase option at a fixed amount of $26,685 at maturity of the 24 th quarterly payment. The Company was required to make a cash deposit of $5,325 as collateral for the obligations assumed under this agreement. On December 22, 2017, the Company entered into an amendment to the agreement, extending the term of the aircraft operating lease for an additional 10 years, with quarterly payments (retroactively effective as of December 5, 2017) of $442 . Under the new agreement, the Company was required to make a cash collateral deposit of $2,500 . At December 31, 2017 , future minimum payments required under existing operating leases with initial terms of one year or more are: Restaurant Other Total 2018 $ 141,641 $ 6,844 $ 148,485 2019 124,242 4,639 128,881 2020 109,389 4,378 113,767 2021 94,080 3,333 97,413 2022 76,339 2,729 79,068 Thereafter 350,413 14,570 364,983 Total minimum payment $ 896,104 $ 36,493 $ 932,597 The following table provides detail of rent expense for fiscal years 2017 , 2016 and 2015 : 2017 2016 2015 Company-operated restaurants (i) $ 148,505 $ 131,142 $ 135,232 Franchised restaurants (ii) 54,711 43,311 36,381 Total rent expense $ 203,216 $ 174,453 $ 171,613 (i) Included within “Occupancy and other operating expenses” in the consolidated statements of income (loss). (ii) Included within “Franchised restaurants – occupancy expenses” in the consolidated statements of income (loss). The following table provides a breakdown detail of rent expense between minimum and contingent rentals for fiscal years 2017 , 2016 and 2015 : 2017 2016 2015 Minimum rentals $ 138,496 $ 122,726 $ 122,110 Contingent rentals based on sales 64,720 51,727 49,503 Total rent expense $ 203,216 $ 174,453 $ 171,613 |
Franchise Arrangements
Franchise Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Franchise Arrangements [Abstract] | |
Franchise Arrangements | Franchise arrangements Individual franchise arrangements generally include a lease and a license and provide for payment of initial fees as well as continuing rent and service fees (royalties) to the Company based upon a percentage of sales with minimum rent payments. The Company’s franchisees are granted the right to operate a restaurant using the McDonald’s system and, in most cases, the use of a restaurant facility, generally for a period of 20 years. Franchisees pay related occupancy costs including property taxes, insurance and maintenance. Pursuant to the MFAs, the Company pays initial fees and continuing service fees for franchised restaurants to McDonald’s Corporation. Therefore, the margin for franchised restaurants is primarily comprised of rental income net of occupancy expenses (depreciation for owned property and equipment and/or rental expense for leased properties). At December 31, 2017 and 2016 , net property and equipment under franchise arrangements totaled $138,587 and $140,000 , respectively (including land for $41,057 and $39,273 , respectively). Revenues from franchised restaurants for fiscal years 2017 , 2016 and 2015 consisted of: 2017 2016 2015 Rent $ 155,405 $ 123,311 $ 121,122 Initial fees (i) 1,205 1,386 611 Royalty fees (ii) 659 599 628 Total $ 157,269 $ 125,296 $ 122,361 (i) Presented net of initial fees paid to McDonald’s Corporation for $1,417 , $1,588 and $747 in 2017 , 2016 and 2015 , respectively. (ii) Presented net of royalties fees paid to McDonald’s Corporation for $64,806 , $50,839 and $49,742 in 2017 , 2016 and 2015 , respectively. At December 31, 2017 , future minimum rent payments due to the Company under existing franchised agreements are: Owned sites Leased sites Total 2018 $ 5,651 $ 59,667 $ 65,318 2019 5,185 56,869 62,054 2020 4,782 53,615 58,397 2021 4,462 48,347 52,809 2022 3,795 41,043 44,838 Thereafter 18,561 160,860 179,421 Total $ 42,436 $ 420,401 $ 462,837 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The Company’s operations are conducted by its foreign subsidiaries in Latin America and the Caribbean. The foreign subsidiaries are incorporated under the laws of their respective countries and as such the Company is taxed in such foreign countries. Statutory tax rates in the countries in which the Company operates for fiscal years 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Puerto Rico 20% 20% 20% Argentina, Martinique, French Guyana, Guadeloupe, St Croix, St. Thomas, Aruba and Curacao 35% 35% 35% Brazil and Venezuela 34% 34% 34% Colombia 40% 40% 39% Peru 30% 28% 28% Costa Rica and Mexico 30% 30% 30% Panamá, Uruguay, Trinidad and Tobago, Ecuador and Netherlands 25% 25% 25% Chile 26% 24% 23% Income tax expense for fiscal years 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Current income tax expense $ 51,215 $ 54,142 $ 31,873 Deferred income tax expense (benefit) 2,099 5,499 (9,057 ) Income tax expense $ 53,314 $ 59,641 $ 22,816 Income tax expense for fiscal years 2017 , 2016 and 2015 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: 2017 2016 2015 Pre-tax income (loss) $ 182,813 $ 138,629 $ (28,553 ) Weighted-average statutory income tax rate (i) 35.5 % 35.4 % 32.8 % Income tax expense at weighted-average statutory tax rate on pre-tax income (loss) 64,901 49,030 (9,353 ) Permanent differences : Change in valuation allowance (ii) (19,133 ) (17,037 ) 63,880 Expiration and changes in tax loss carryforwards (iii) 14,007 18,291 — Non-deductible expenses 9,888 15,047 10,243 Tax benefits, including Brazil and other (10,744 ) (14,437 ) (17,377 ) Income taxes withholdings on intercompany transactions (iv) 6,804 22,379 1,557 Differences including exchange rate, inflation adjustment and filing differences (11,769 ) (13,001 ) (29,222 ) Alternative Taxes (363 ) (114 ) 2,386 Others (277 ) (517 ) 702 Income tax expense $ 53,314 $ 59,641 $ 22,816 (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 Non-Operating Losses (NOLs). (iii) Expiration of loss tax carryforwards are mainly generated by Holding legal entities and the Caribbean division. (iv) Comprises income tax withheld on the payment of interest on intercompany loans. In 2016 this item also includes the withholding income tax of $18.2 million due the repayment of the Company’s 2016 Notes. The tax effects of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 are presented below: 2017 2016 Tax loss carryforwards (i) $ 238,082 $ 268,389 Purchase price allocation adjustment 24,437 30,855 Property and equipment, tax inflation 37,577 37,471 Other accrued payroll and other liabilities 30,730 15,437 Share-based compensation 3,850 4,151 Provision for contingencies 2,478 3,449 Other deferred tax assets (ii) 21,528 27,292 Other deferred tax liabilities (iii) (10,670 ) (13,649 ) Property and equipment - difference in depreciation rates (12,639 ) (14,195 ) Valuation allowance (iv) (271,651 ) (290,620 ) Net deferred tax asset $ 63,722 $ 68,580 (i) As of December 31, 2017 , the Company and its subsidiaries has accumulated operating tax loss carryforwards amounting to $849,911 . The Company has operating tax loss carryforwards amounting to $274,106 , expiring between 2018 and 2022. In addition, the Company has operating tax loss carryforwards amounting to $348,370 expiring after 2022 and operating tax loss carryforwards amounting to $227,435 that do no expire. Changes in tax loss carryforwards for the year relate to the use of NOLs, mainly in Mexico and Brazil, and the expiration of tax loss carryforwards in other markets. (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). For the fiscal year ended December 31, 2017 , this item includes: bad debt reserve in Puerto Rico for $3,782 , provision for regular expenses for $9,824 , mainly corresponding to Brazil, Mexico and Colombia; and foreign currency exchange differences in Venezuela for $698 . For the fiscal year ended December 31, 2016 this item includes regular expenses provisions for $14,063 , for Brazil and Colombia; $5,055 related to foreign currency exchange differences in Venezuela and $3,832 in Puerto Rico, mainly related to bad debt reserve. (iii) Primarily related to intangible assets and foreign currency exchange differences. (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. The total amount of $63,722 for the year ended December 31, 2017 , is presented in the consolidated balance sheet as non-current asset and non-current liability amounting to $74,299 and $10,577 , respectively. The total amount of $68,580 for the year ended December 31, 2016 , is presented in the consolidated balance sheet as non-current asset and non-current liability amounting to $70,446 and $1,866 , respectively. Deferred income taxes have not been recorded for temporary differences related to investments in certain foreign subsidiaries. These temporary differences, comprise undistributed earnings considered permanently invested in subsidiaries amounted to $116,042 at December 31, 2017. Determination of the deferred income tax liability on these unremitted earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. As of December 31, 2017, and 2016, the Company’s gross unrecognized tax benefits totaled Nil and $19 (including interests and penalties), respectively, that would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2017 2016 Balances at beginning balance $ 19 $ 63 Decrease for positions taken in prior years (19 ) (44 ) Balances at ending balance $ — $ 19 The Company is regularly under audit in multiple tax jurisdictions. It is reasonably possible that, as a result of audit progression within the next 12 months, there may be new information that causes the Company to reassess the total amount of unrecognized tax benefits recorded. While the Company cannot estimate the impact that new information may have on the unrecognized tax benefit balance, the Company believes that the liabilities that are recorded are appropriate and adequate as determined under ASC 740. The Company is generally no longer subject to income tax examinations by tax authorities for years prior to 2011. As of December 31, 2017, there are certain matters related to the interpretation of income tax laws for which there is a possibility that a loss may have been incurred, as of the date of the financial statements in accordance with ASC 740 in an amount of $150 million , related to assessments for the fiscal years 2009 to 2013. No formal claim has been made for fiscal years within the statute of limitation by Tax authorities in any of the mentioned matters, however those years are still subject to audit and claims may be asserted in the future. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-based compensation 2011 Equity Incentive Plan In March 2011, the Company adopted its Equity Incentive Plan, or 2011 Plan, to attract and retain the most highly qualified and capable professionals and to promote the success of its business. This Plan is being used to reward certain employees for the success of the Company’s business through an annual award program. The 2011 Plan permits grants of awards relating to class A shares, including awards in the form of shares (also referred to as stock), options, restricted shares, restricted share units, share appreciation rights, performance awards and other share-based awards as will be determined by the Company’s Board of Directors. The maximum number of shares that may be issued under the 2011 Plan is 2.5% of the Company’s total outstanding class A and class B shares immediately following its initial public offering. The Company made a special grant of stock options and restricted share units in 2011 in connection with its initial public offering, which are totally vested. The Company also made recurring grants of stock options and restricted share units in each of the fiscal years from 2011 to 2017 (from 2015 to 2017 only restricted share units). Both types of these recurring annual awards vest as follows: 40% on the second anniversary of the date of grant and 20% on each of the following three anniversaries. For all grants, each stock option granted represents the right to acquire a Class A share at its grant-date fair market value, while each restricted share unit represents the right to receive a Class A share when vested. The exercise right for the stock options is cumulative and, once such right becomes exercisable, it may be exercised in whole or in part during quarterly window periods until the date of termination, which occurs at the seventh anniversary of the date of grant. The Company utilizes a Black-Scholes 2011 Equity Incentive Plan (continued) option-pricing model to estimate the value of stock options at the grant date. The value of restricted shares units is based on the quoted market price of the Company’s class A shares at the grant date. On June 28, 2016, 1,117,380 stock option units were converted to a liability award maintaining the original conditions of the 2011 Plan. There were not incremental compensation costs resulting from the modification. The employees affected by this modification were 104 . The accrued liability is remeasured on a monthly basis until settlement. As of December 31, 2017 and 2016, the outstanding units related to this liability award were 605,821 and 933,399 , respectively. The accumulated Additional paid-in capital related to these units as from the grant date amounts to $5,865 and $5,820 during fiscal years 2017 and 2016, respectively (net of $85 and $9 reclassified to "Accrued payroll and other liabilities" in the Company’s consolidated balance sheet in 2017 and 2016, respectively). The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. The Company recognized stock-based compensation expense in the amount of $3,267 , $3,303 and $2,788 during fiscal years 2017 , 2016 and 2015 , respectively. The stock-based compensation expense of fiscal year 2015 includes $210 relates to the special awards granted in connection with the initial public offering. Stock-based compensation expense is included within “General and administrative expenses” in the consolidated statements of income (loss). The Company recognized $151 , $688 and $(1,581) of related income tax benefit (expense) during fiscal years 2017 , 2016 and 2015 , respectively. Stock Options The following table summarizes the activity of stock options during fiscal years 2017 , 2016 and 2015 : Units Weighted-average strike price Weighted-average grant-date fair value Outstanding at December 31, 2014 2,550,835 17.62 4.94 Forfeitures (141,130 ) 16.54 5.02 Expired (i) (383,811 ) 20.01 5.41 Outstanding at December 31, 2015 2,025,894 21.03 5.87 Forfeitures (80,734 ) 10.30 2.68 Expired (i) (51,305 ) 14.05 4.02 Modification (ii) (1,117,380 ) 19.07 5.30 Outstanding at December 31, 2016 776,475 15.55 4.46 Expired (i) (141,986 ) 21.20 5.28 Outstanding at December 31, 2017 634,489 14.28 4.28 Exercisable at December 31, 2017 540,331 15.03 4.58 (i) As of December 31, 2017 , 2016 and 2015, Additional paid-in capital included $750 , $206 and $2,077 respectively, related to expired stock options. (ii) Corresponds to stock options converted to a liability award. The following table provides a summary of outstanding stock options at December 31, 2017 : 2011 Equity Incentive Plan (continued) Stock Options (continued) Vested (i) Non-vested (ii) Total Number of units outstanding 540,331 94,158 634,489 Weighted-average grant-date fair market value per unit 4.58 2.53 4.28 Total grant-date fair value 2,476 238 2,714 Weighted-average accumulated percentage of service 100 86.6 98.8 Stock-based compensation recognized in Additional paid-in capital 2,476 206 2,682 Compensation expense not yet recognized (iii) — 32 32 (i) Related to exercisable awards. (ii) Related to awards that will vest between fiscal years 2017 and 2019. (iii) Expected to be recognized in a weighted-average period of 0.3 years. Restricted Share Units The following table summarizes the activity of restricted share units during fiscal years 2017 , 2016 and 2015 : 2011 Equity Incentive Plan (continued) Restricted Share Units (continued) Units Weighted-average grant-date fair value Outstanding at December 31, 2014 862,855 14.38 2015 annual grant 923,213 6.33 Partial vesting of 2011 grant (222,781 ) 21.20 Partial vesting of 2012 grant (31,772 ) 14.35 Partial vesting of 2013 grant (68,300 ) 14.31 Forfeitures (233,005 ) 9.88 Outstanding at December 31, 2015 1,230,210 7.96 2016 annual grant 865,291 4.70 Partial vesting of 2011 grant (27,075 ) 21.20 Partial vesting of 2012 grant (24,653 ) 14.35 Partial vesting of 2013 grant (26,054 ) 14.31 Partial vesting of 2014 grant (94,546 ) 8.58 Forfeitures (142,176 ) 6.64 Outstanding at December 31, 2016 1,780,997 6.07 2017 annual grant 497,960 9.20 Partial vesting of 2012 grant (23,003 ) 14.35 Partial vesting of 2013 grant (24,073 ) 14.31 Partial vesting of 2014 grant (44,312 ) 8.58 Partial vesting of 2015 grant (269,896 ) 6.33 Forfeitures (180,828 ) 5.99 Outstanding at December 31, 2017 1,736,845 6.65 Exercisable at December 31, 2017 — — As of December 31, 2017, all Class A Shares were issued. Hence, the accumulated compensation expense related to partial vesting was reclassified from "Additional paid-in capital" to "Common stock". The following table provides a summary of outstanding restricted share units at December 31, 2017 : Number of units outstanding (i) 1,736,845 Weighted-average grant-date fair market value per unit 6.65 Total grant-date fair value 11,542 Weighted-average accumulated percentage of service 49.80 Stock-based compensation recognized in Additional paid-in capital 5,744 Compensation expense not yet recognized (ii) 5,798 (i) Related to awards that will vest between fiscal years 2018 and 2022. (ii) Expected to be recognized in a weighted-average period of 2.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments The MFAs require the Company and its MF subsidiaries, among other obligations: (i) to pay monthly royalties commencing at a rate of approximately 5% of gross sales of the restaurants, during the first 10 years , substantially consistent with market. This percentage increases to 6% and 7% for the subsequent two 5 -year periods of the agreement; (ii) to agree with McDonald’s on a restaurant opening plan and a reinvestment plan for each three -year period and pay an initial franchise fee for each new restaurant opened; (iii) to commit to funding a specified Strategic Marketing Plan; (iv) to own (or lease) directly or indirectly, the fee simple interest in all real property on which any franchised restaurant is located; and (v) to maintain a minimum fixed charge coverage ratio (as defined therein) at least equal to 1.50 as well as a maximum leverage ratio (as defined therein) of 4.25 . On January 26, 2017, the Company reached an agreement with McDonald’s Corporation related to the restaurant opening and reinvestment plan, mentioned in point (ii) above, for the three -year period commenced on January 1, 2017. Under the agreement, the Company committed to open 180 new restaurants and to reinvest $292 million in existing restaurants. On January 25, 2017, McDonald’s Corporation agreed to provide growth support for the same period. The Company projects that the impact of this support could result in a consolidated effective royalty rate of 5.7% in 2018 and 5.9% in 2019. McDonald’s Corporation granted the Company limited waivers through and including June 30, 2016, during which time the Company was not required to comply with the financial ratios set forth in the MFA, mentioned in point (v) above. If the Company would not be in compliance with the financial requirements and would be unable to obtain an extension of the waiver or to comply with the original commitments under the MFA, it could be in material breach. A breach of the MFA would give McDonald’s Corporation certain rights, including the ability to acquire all or portions of the business. The following table summarize Company’s ratios requirements for the three-month periods ended from March 31, 2015 to December 31, 2017 : Fixed Charge Coverage Ratio Leverage Ratio March 31, 2015 1.40 4.62 June 30, 2015 1.45 4.61 September 30, 2015 1.48 4.56 December 31, 2015 1.56 4.40 March 31, 2016 1.67 4.80 June 30, 2016 1.64 4.40 September 30, 2016 1.67 4.08 December 31, 2016 1.64 4.21 March 31, 2017 1.65 4.12 June 30, 2017 1.65 4.05 September 30, 2017 1.69 4.02 December 31, 2017 1.77 3.80 In addition, the Company maintains standby letters of credit with an aggregate drawing amount of $80 million in favor of McDonald’s Corporation as collateral for the obligations assumed under the MFAs. The letters of credit can be drawn if certain events occur, including the failure to pay royalties. No amounts have been drawn at the date of issuance of these financial statements. Provision for contingencies The Company has certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings, including those involving labor, tax and other matters. At December 31, 2017 and 2016 , the Company maintains a provision for contingencies, net of judicial deposits, amounting to $27,956 and $18,112 , respectively, presented as follows: $2,529 and $764 as a current liability and $25,427 and $17,348 as a non-current liability, respectively. The breakdown of the provision for contingencies is as follows: Description Balance at beginning of period Accruals, net Settlements Reclassifications and increase of judicial deposits Translation Balance at end of period Year ended December 31, 2017: Tax contingencies in Brazil (i) $ 13,312 $ (2,599 ) $ (337 ) $ (667 ) $ (385 ) $ 9,324 Labor contingencies in Brazil (ii) 11,150 31,448 (21,130 ) — (407 ) 21,061 Other (iii) 12,222 7,150 (3,960 ) 17 217 15,646 Subtotal 36,684 35,999 (25,427 ) (650 ) (575 ) 46,031 Judicial deposits (iv) (18,572 ) 161 — (60 ) 396 $ (18,075 ) Provision for contingencies $ 18,112 $ 36,160 $ (25,427 ) $ (710 ) $ (179 ) $ 27,956 Year ended December 31, 2016: Tax contingencies in Brazil (i) $ 5,118 $ 7,196 $ — $ — $ 998 $ 13,312 Labor contingencies in Brazil (ii) 7,013 19,903 (17,523 ) — 1,757 11,150 Other (iii) 13,947 1,478 (3,031 ) (37 ) (135 ) 12,222 Subtotal 26,078 28,577 (20,554 ) (37 ) 2,620 36,684 Judicial deposits (iv) (5,500 ) — — (11,458 ) (1,614 ) (18,572 ) Provision for contingencies $ 20,578 $ 28,577 $ (20,554 ) $ (11,495 ) $ 1,006 $ 18,112 Year ended December 31, 2015: Tax contingencies in Brazil (i) $ 1,999 $ 4,616 $ (9 ) $ (532 ) $ (956 ) $ 5,118 Labor contingencies in Brazil (ii) 10,360 19,692 (19,877 ) (26 ) (3,136 ) 7,013 Other (iii) 7,780 13,421 (4,213 ) (22 ) (3,019 ) 13,947 Subtotal 20,139 37,729 (24,099 ) (580 ) (7,111 ) 26,078 Judicial deposits (iv) (7,935 ) — 684 (863 ) 2,614 (5,500 ) Provision for contingencies $ 12,204 $ 37,729 $ (23,415 ) $ (1,443 ) $ (4,497 ) $ 20,578 (i) In 2017, it includes mainly CIDE. In 2016 and 2015 it includes indirect tax matters, mainly PIS/COFINS. (ii) It primarily relates to dismissals in the normal course of business. (iii) It relates to tax and labor contingencies in other countries and civil contingencies in all the countries. (iv) It primarily relates to judicial deposits the Company was required to make in connection with the proceedings in Brazil. As of December 31, 2017 , there are certain matters related to the interpretation of tax and labor laws for which there is a possible that a loss may have been incurred in accordance with ASC 450-20-50-4 to be within a range of $89 million and $122 million . Provision for contingencies (continued) Additionally, there is a lawsuit filed by several Puerto Rican franchisees against McDonald’s Corporation and certain subsidiaries purchased by the Company during the acquisition of the LatAm business (“the Puerto Rican franchisees lawsuit”). The claim seeks declaratory judgment and damages in the aggregate amount of $66.7 million plus plaintiffs’ attorney fees. At the end of 2014 the plaintiffs finalized their presentation of evidence whereas the Company has not started yet. At that time, the Company filed a Motion of Non Suit that has not be resolved by the Commissioner assigned to this case. The Company believes that the probability of a loss is remote. During 2014, another franchisee filed a complaint (“the related Puerto Rican franchisee lawsuit”) against the Company and McDonald’s USA, LLC (a wholly owned subsidiary of McDonald’s Corporation), asserting a very similar claim to the one filed in the Puerto Rican franchisees lawsuit. The claim seeks declaratory judgment and damages in the amount of $30 million plus plaintiffs’ attorney fees. The Company also believes that the litigation probability of a loss is remote, since its close resemblance to the Puerto Rican franchisees lawsuit. Furthermore, the Puerto Rico Owner Operator’s Association (“PROA”), an association integrated by the Company’s franchisees that meets periodically to coordinate the development of promotional and marketing campaigns (an association that at the time of the claim was formed solely by franchisees that are plaintiffs in the Puerto Rican franchisees lawsuit), filed a third party complaint and counterclaim (“the PROA claim”) against the Company and other third party defendants, in the amount of $31 million . On June 9, 2014, after several motions for summary judgment duly filed and opposed by the parties, the Court entered a “Partial Summary Judgment and Resolution” in favor of PROA, before initiating the discovery phase, finding that the Company must participate and contribute funds to the association. However, the Court did not specify any amount for which the Company should be held liable, due to its preliminary and interlocutory nature, and the lack of discovery conducted regarding the amounts claimed by the plaintiffs. The Company is opposing this claim vigorously because it believes that there is no legal basis for it, considering: (i) the obligation to contribute is not directed towards a cooperative, (ii) the franchise agreement does not contain a provision that makes it mandatory to participate in the cooperative, and (iii) PROA’s by-laws state that participation in the cooperative is voluntary, among other arguments. According to the points previously mentioned, the Company believes that the probability of a loss is remote, therefore no provision has been recorded. Pursuant to Section 9.3 of the Stock Purchase Agreement, McDonald’s Corporation indemnifies the Company for certain Brazilian claims as well as for specific and limited claims arising from the Puerto Rican franchisees lawsuit. Pursuant to the MFA, the Company indemnifies McDonald’s for the related Puerto Rican franchisee lawsuit and the PROA claim. At December 31, 2017 , the provision for contingencies includes $2,489 ( $5,170 at December 31, 2016), related to Brazilian claims that are covered by the indemnification agreement. As a result, the Company has recorded a current asset and non-current asset in respect of McDonald’s Corporation’s indemnity in the consolidated balance sheet. The current asset in respect of McDonald’s Corporation’s indemnity represents the amount of cash to be received as a result of settling certain Brazilian labor and tax contingencies. |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Financial Instruments | Disclosures about fair value of financial instruments As defined in ASC 820 Fair Value Measurement and Disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The valuation techniques that can be used under this guidance are the market approach, income approach or cost approach. The market approach uses prices and other information for market transactions involving identical or comparable assets or liabilities, such as matrix pricing. The income approach uses valuation techniques to convert future amounts to a single discounted present amount based on current market conditions about those future amounts, such as present value techniques, option pricing models (e.g. Black-Scholes model) and binomial models (e.g. Monte-Carlo model). The cost approach is based on current replacement cost to replace an asset. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observance of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to level 1 measurements and the lowest priority to level 3 measurements, and accordingly, level 1 measurement should be used whenever possible. The three levels of the fair value hierarchy as defined by the guidance are as follows: Level 1 : Valuations utilizing quoted, unadjusted prices for identical assets or liabilities in active markets that the Company has the ability to access. This is the most reliable evidence of fair value and does not require a significant degree of judgment. Examples include exchange-traded derivatives and listed equities that are actively traded. Level 2 : Valuations utilizing quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. Financial instruments that are valued using models or other valuation methodologies are included. Models used should primarily be industry-standard models that consider various assumptions and economic measures, such as interest rates, yield curves, time value, volatilities, contract terms, current market prices, credit risk or other market-corroborated inputs. Examples include most over-the-counter derivatives (non-exchange traded), physical commodities, most structured notes and municipal and corporate bonds. Level 3 : Valuations utilizing significant unobservable inputs provides the least objective evidence of fair value and requires a significant degree of judgment. Inputs may be used with internally developed methodologies and should reflect an entity’s assumptions using the best information available about the assumptions that market participants would use in pricing an asset or liability. Examples include certain corporate loans, real-estate and private equity investments and long-dated or complex over-the-counter derivatives. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under this guidance, the lowest level that contains significant inputs used in valuation should be chosen. Pursuant to ASC 820-10-50, the Company has classified its assets and liabilities into these levels depending upon the data relied on to determine the fair values. The fair values of the Company’s derivatives are valued based upon quotes obtained from counterparties to the agreements and are designated as Level 2. The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2017 Assets Cash equivalents $ 93,541 $ — $ — $ 93,541 Short-term Investments — 19,588 — $ 19,588 Derivatives — 35,378 — 35,378 Total Assets $ 93,541 $ 54,966 $ — $ 148,507 Liabilities Derivatives $ — $ 23,545 $ — $ 23,545 Share-based compensation — 1,483 — 1,483 Total Liabilities $ — $ 25,028 $ — $ 25,028 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2016 Assets Cash equivalents - Investment funds $ 132,040 $ — $ — $ 132,040 Total Assets $ 132,040 $ — $ — $ 132,040 Liabilities Derivatives $ — $ 30,591 $ — $ 30,591 Share-based compensation — 512 — 512 Secured loan agreement — 164,385 — 164,385 Total Liabilities $ — $ 195,488 $ — $ 195,488 The derivative contracts were valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates that were observable for substantially the full term of the derivative contracts. Certain financial assets and liabilities not measured at fair value At December 31, 2017 , the fair value of the Company’s short-term and long-term debt was estimated at $692,299 , compared to a carrying amount of $643,487 . This fair value was estimated using various pricing models or discounted cash flow analysis that incorporated quoted market prices, and is similar to Level 2 within the valuation hierarchy. The carrying amount for notes receivable approximates fair value. Non-financial assets and liabilities measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). At December 31, 2017 , no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities, except for those required in connection with the impairment of long-lived assets and goodwill. Refer to Note 3 for more details, including inputs and valuation techniques used to measure fair value of these non-financial assets. |
Certain Risks and Concentration
Certain Risks and Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Certain Risks and Concentrations | Certain risks and concentrations The Company’s financial instruments that are exposed to concentration of credit risk primarily consist of cash and cash equivalents, short-term investment and accounts and notes receivable. Cash and cash equivalents and short-term investment are deposited with various creditworthy financial institutions, and therefore the Company believes it is not exposed to any significant credit risk related to cash and cash equivalents and short-term investment. Concentrations of credit risk with respect to accounts and notes receivable are generally limited due to the large number of franchisees comprising the Company’s franchise base. All the Company’s operations are concentrated in Latin America and the Caribbean. As a result, the Company’s financial condition and results of operations depend, to a significant extent, on macroeconomic and political conditions prevailing in the region. See Note 22 for additional information pertaining to the Company’s Venezuelan operations. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
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, 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, which are as follows: Brazil; the Caribbean division, consisting of Aruba, Curacao, Colombia, French Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela; the North Latin America division (“NOLAD”), consisting of Costa Rica, Mexico and Panama; and the South Latin America division (“SLAD”), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. The accounting policies of the segments are the same as those described in Note 3. As from January 1, 2016, the Company made changes in the allocation of certain expenses previously included in the corporate segment to the operating divisions in order to align the financial statement presentation with the revised allocation used by the Company's management as from that date. In accordance with ASC 280, Segment Reporting, the Company has restated its comparative segment information based on the new allocation of expenses. The following table presents information about profit or loss and assets for each reportable segment: For the fiscal years ended December 31, 2017 2016 2015 Revenues: Brazil $ 1,496,573 $ 1,333,237 $ 1,361,989 Caribbean division 474,822 409,671 398,144 NOLAD 386,874 363,965 367,364 SLAD 961,256 821,757 925,243 Total revenues $ 3,319,525 $ 2,928,630 $ 3,052,740 Adjusted EBITDA: Brazil $ 218,172 $ 168,076 $ 174,102 Caribbean division 40,844 18,049 2,059 NOLAD 33,717 36,288 31,424 SLAD 87,083 76,327 100,718 Total reportable segments 379,816 298,740 308,303 Corporate and others (i) (74,879 ) (60,295 ) (78,132 ) Total adjusted EBITDA $ 304,937 $ 238,445 $ 230,171 For the fiscal years ended December 31, 2017 2016 2015 Adjusted EBITDA reconciliation: Total Adjusted EBITDA $ 304,937 $ 238,445 $ 230,171 (Less) Plus items excluded from computation that affect operating income: Depreciation and amortization (99,382 ) (92,969 ) (110,715 ) Gains from sale or insurance recovery of property and equipment 95,081 57,244 12,308 Write-offs and related contingencies of property and equipment (8,528 ) (5,776 ) (6,038 ) Impairment of long-lived assets (17,564 ) (7,697 ) (12,343 ) Impairment of goodwill (200 ) (5,045 ) (679 ) Stock-based compensation related to the special awards in connection with the initial public offering under the 2011 Plan — — (210 ) Reorganization and optimization plan expenses — (5,341 ) (18,346 ) ADBV Long-Term Incentive Plan incremental compensation from modification (1,409 ) (281 ) (741 ) Operating income 272,935 178,580 93,407 (Less) Plus: Net interest expense (68,357 ) (66,880 ) (64,407 ) Loss from derivative instruments (7,065 ) (3,065 ) (2,894 ) Foreign currency exchange results (14,265 ) 32,354 (54,032 ) Other non-operating expenses, net (435 ) (2,360 ) (627 ) Income tax expense (53,314 ) (59,641 ) (22,816 ) Net income attributable to non-controlling interests (333 ) (178 ) (264 ) Net income (loss) attributable to Arcos Dorados Holdings Inc. $ 129,166 $ 78,810 $ (51,633 ) For the fiscal years ended December 31, 2017 2016 2015 Depreciation and amortization: Brazil $ 52,442 $ 43,733 $ 48,849 Caribbean division 25,210 27,376 30,998 NOLAD 20,635 21,975 25,733 SLAD 15,292 14,477 19,340 Total reportable segments 113,579 107,561 124,920 Corporate and others (i) 5,978 5,478 8,068 Purchase price allocation (ii) (20,175 ) (20,070 ) (22,273 ) Total depreciation and amortization $ 99,382 $ 92,969 $ 110,715 Property and equipment expenditures: Brazil $ 91,769 $ 42,657 $ 40,482 Caribbean division 16,759 14,387 11,756 NOLAD 17,565 10,117 14,623 SLAD 48,621 24,967 23,623 Others 52 154 480 Total property and equipment expenditures $ 174,766 $ 92,282 $ 90,964 As of December 31, 2017 2016 Total assets: Brazil $ 786,897 $ 726,250 Caribbean division 416,541 355,568 NOLAD 271,558 247,546 SLAD 297,581 246,344 Total reportable segments 1,772,577 1,575,708 Corporate and others (i) 172,400 82,822 Purchase price allocation (ii) (141,234 ) (153,477 ) Total assets $ 1,803,743 $ 1,505,053 (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, 2017 and 2016, corporate assets primarily include corporate cash and cash equivalents. (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 $890,736 and $847,966 at December 31, 2017 and 2016 , respectively. All of the Company’s long-lived assets are related to foreign operations. |
Venezuelan Operations
Venezuelan Operations | 12 Months Ended |
Dec. 31, 2017 | |
Venezuelan Operations [Abstract] | |
Venezuelan Operations | Venezuelan operations The Company conducts business in Venezuela where currency restrictions exist, limiting the Company’s ability to immediately access cash through repatriations at the government’s official exchange rate. The Company’s access to Venezuelan Bolívares (VEF) held by its Venezuelan subsidiaries remains available for use within this jurisdiction and is not restricted. The official exchange rate is established by the Central Bank of Venezuela and the Venezuelan Ministry of Finance and the acquisition of foreign currency at the official exchange rate by Venezuelan companies to pay foreign debt or dividends is subject to a registration and approval process by the relevant Venezuelan authorities. Since these restrictions are in place, the Company has not been able to access the official exchange rate to pay dividends and has been limited in its ability to pay royalties at the official exchange rate. Revenues and operating income (loss) of the Venezuelan operations were $101,477 and $6,804 , respectively, for fiscal year 2017 ; $51,615 and $(8,608) , respectively, for fiscal year 2016 ; and $40,898 and $(28,329) , respectively, for fiscal year 2015 . Since February 2013, the Venezuelan government has announced several changes in the currency exchange regulations. As a consequence, the Company reassessed the exchange rate used for remeasurement purposes as follows: Effects of exchange rate change Period Exchange rate System applied Exchange rate at System date change (VEF per US dollar) Write down of inventories (i) Impairment of long-lived assets (i) Foreign currency exchange loss From February 8, 2013 to February 28, 2014 Official exchange rate 6.30 — — 15,379 From March 1, 2014 to May 31, 2014 SICAD 11.80 7,611 — 19,697 From June 1, 2014 to February 28, 2015 SICAD II 49.98 9,937 45,186 38,963 From March 1, 2015 to March 9, 2016 SIMADI 177.00 3,250 7,804 8,046 From March 10, 2016 to May 18, 2017 DICOM 215.34 401 — 117 From May 19, 2017 up to date DICOM II 2,010.00 1,375 — 2,554 (i) Presented within Other operating income (expenses), net (ii) Presented within Foreign currency exchange results Effective May 19, 2017, a new Exchange Agreement was issued setting new rules on foreign exchange transactions and replacing the existing mechanism called DICOM. Under the new regulation, the access to the supplementary floating market rate, called DICOM II, operates through an auction mechanism. To participate in DICOM II, the parties must be previously registered and make a sworn statement of the origin or destination of the funds. The first auction was published on May 31, 2017 with an exchange rate of 2,010 VEF per US dollar. As of December 31, 2017, the DICOM II exchange rate settled at 3,345 VEF per dollar. In addition, the Company performed the impairment testing of its long-lived assets in accordance with the guidance within ASC 360-10-35, as mentioned in Note 3. As a result of the analysis, the Company recorded $8,563 during the fiscal year 2017, primarily associated to an advanced payment for a real estate given during the fourth quarter of 2013. In addition to exchange controls, the Venezuelan market is subject to price controls. The Venezuelan government issued a regulation establishing a maximum profit margin for companies and maximum prices for certain goods and services. Although these regulations caused a delay in the pricing plan, the Company was able to increase prices during the fiscal year ended December 31, 2017. The Company’s Venezuelan operations, and the Company’s ability to repatriate its earnings, continue to be negatively affected by these difficult conditions and would be further negatively affected by additional devaluations or the imposition of additional or more stringent controls on foreign currency exchange, pricing, payments, profits or imports or other governmental actions or continued or increased labor unrest. The Company continues to closely monitor developments in this dynamic environment, to assess evolving business risks and actively manage its operations in Venezuela. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ equity Authorized capital The Company is authorized to issue to 500,000,000 shares, consisting of 420,000,000 Class A shares and 80,000,000 Class B shares of no par value each. Issued and outstanding capital At December 31, 2014 , the Company had 210,216,043 shares issued and outstanding with no par value, consisting of 130,216,043 class A shares and 80,000,000 class B shares. During fiscal years 2017 , 2016 and 2015 , the Company issued 361,284 , 172,328 and 322,853 Class A shares, respectively, in connection with the partial vesting of restricted share units under the 2011 Equity Incentive Plan. Therefore, at December 31, 2017 , 2016 and 2015 the Company had 211,072,508 ; 210,711,224 and 210,538,896 shares issued and outstanding with no par value, consisting of 131,072,508 ; 130,711,224 and 130,538,896 Class A shares, respectively, and 80,000,000 for Class B shares for each year. Rights, privileges and obligations Holders of Class A shares are entitled to one vote per share and holders of Class B shares are entitled to five votes per share. Except with respect to voting, the rights, privileges and obligations of the Class A shares and Class B shares are pari passu in all respects, including with respect to dividends and rights upon liquidation of the Company. Distribution of dividends The Company can only make distributions to the extent that immediately following the distribution, its assets exceed its liabilities and the Company is able to pay its debts as they become due. During fiscal years 2017 , 2016 and 2015, the Company did not declare a dividend distribution to its shareholders, with respect to its results of operations for fiscal years 2016 , 2015 and 2014, respectively. During fiscal year 2014, the Company declared dividend distributions totaling $50,036 . The last installment of that distribution was paid during the fiscal year 2015, amounting to $12,509 . Accumulated other comprehensive loss The following table sets forth information with respect to the components of “Accumulated other comprehensive loss” as of December 31, 2017 and their related activity during the three-years in the period then ended: Accumulated other comprehensive loss (continued) Foreign currency translation Cash flow hedges Post-employment benefits (i) Total Accumulated other comprehensive loss Balances at December 31, 2014 $ (302,889 ) $ 1,598 $ (1,176 ) $ (302,467 ) Other comprehensive (loss) income before reclassifications (128,301 ) 20,487 (213 ) (108,027 ) Net (gain) loss reclassified from accumulated other comprehensive loss to consolidated statement of income — (14,209 ) 440 (13,769 ) Net current-period other comprehensive (loss) income (128,301 ) 6,278 227 (121,796 ) Balances at December 31, 2015 (431,190 ) 7,876 (949 ) (424,263 ) Other comprehensive loss before reclassifications (9,891 ) (18,813 ) (310 ) (29,014 ) Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income — 11,242 386 11,628 Net current-period other comprehensive (loss) income (9,891 ) (7,571 ) 76 (17,386 ) Balances at December 31, 2016 (441,081 ) 305 (873 ) (441,649 ) Other comprehensive income (loss) before reclassifications 4,800 6,462 (938 ) 10,324 Net loss reclassified from accumulated other comprehensive loss to consolidated statement income — 1,592 386 1,978 Net current-period other comprehensive income (loss) 4,800 8,054 (552 ) 12,302 Balances at December 31, 2017 $ (436,281 ) $ 8,359 $ (1,425 ) $ (429,347 ) (i) Mainly related to a post-employment benefit in Venezuela established by the Organic Law of Labor and Workers (known as “LOTTT”, its Spanish acronym) in 2012. This benefit provides a payment of 30 days of salary per year of employment tenure based on the last wage earned to all workers who leave the job for any reason. The term of service to calculate the post-employment payment of active workers run retroactively since June 19, 1997. The Company obtains an actuarial valuation to measure the post-employment benefit obligation, using the projected unit credit actuarial method and measures this benefit in accordance with ASC 715-30, similar to pension benefit. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (loss) per share The Company is required to present basic earnings per share and diluted earnings per share in accordance with ASC 260. Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options and restricted share units. Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the period under the treasury method. The following table sets forth the computation of basic and diluted net (loss) income per common share attributable to Arcos Dorados Holdings Inc. for all years presented: For the fiscal years ended December 31, 2017 2016 2015 Net income (loss) attributable to Arcos Dorados Holdings Inc. available to common shareholders $ 129,166 $ 78,810 $ (51,633 ) Weighted-average number of common shares outstanding - Basic 210,935,685 210,646,955 210,436,232 Incremental shares from assumed exercise of stock options (i) — — — Incremental shares from vesting of restricted share units 1,060,726 377,653 160,122 Weighted-average number of common shares outstanding - Diluted 211,996,411 211,024,608 210,596,354 Basic net income (loss) per common share attributable to Arcos Dorados Holdings Inc. $ 0.61 $ 0.37 $ (0.25 ) Diluted net income (loss) per common share attributable to Arcos Dorados Holdings Inc. $ 0.61 $ 0.37 $ (0.25 ) (i) Options to purchase shares of common stock were outstanding during fiscal years 2017 , 2016 and 2015 . See Note 17 for details. These options were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions The Company has entered into a master commercial agreement on arm’s length terms with Axionlog, a company under common control that operates the distribution centers in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela (the “Axionlog Business”). Pursuant to this agreement Axionlog provides the Company distribution inventory, storage and transportation services in the countries in which it operates. On November 9, 2011 the Company entered into a revolving loan agreement as a creditor with Axionlog Distribution B.V., a holding company of the Axionlog Business, for a total amount of $12 million at an interest rate of LIBOR plus 6% , in line with interest rates prevailing in the market at the time of the agreement. Notwithstanding the fact that the loan maturity date was November 7, 2016 the parties decided to terminate the agreement early as of May 27, 2016. As a result, the Company collected the outstanding principal amount of $1,800 . The following table summarizes the outstanding balances between the Company and the Axionlog Business as of December 31, 2017 and 2016 : As of December 31, 2017 2016 Accounts and notes receivable $ 1,097 $ — Other receivables 979 1,050 Miscellaneous 3,126 3,612 Accounts payable (11,727 ) (10,355 ) The following table summarizes the transactions between the Company and the Axionlog Business for the fiscal years ended December 31, 2017 , 2016 and 2015 : Fiscal years ended December 31, 2017 2016 2015 Food and paper (i) $ (173,387 ) $ (163,536 ) $ (164,882 ) Occupancy and other operating expenses (4,281 ) (3,882 ) (2,499 ) Net interest income — 47 461 (i) Includes $48,773 of distribution fees and $124,614 of suppliers purchases managed through the Axionlog Business for the fiscal year ended December 31, 2017 ; $40,714 and $122,822 , respectively, for the fiscal year ended December 31, 2016 ; and $44,170 and $120,712 , respectively, for the fiscal year ended December 31, 2015 . As of December 31, 2017 and 2016 , the Company had other receivables totaling $2,112 and $1,315 , respectively and accounts payable with Lacoop, A.C. and Lacoop II, S.C. totaling $1,113 and $1,299 , respectively. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and qualifying accounts The following table presents the information required by Rule 12-09 of Regulation S-X in regards to valuation and qualifying accounts for each of the periods presented: Description Balance at beginning of period Additions (i) Deductions (ii) Translation Balance at end of period Year ended December 31, 2017: Deducted from assets accounts: Allowance for doubtful accounts (iii) $ 16,367 $ 6,386 $ (1,244 ) $ (42 ) $ 21,467 Valuation allowance on deferred tax assets 290,620 8,382 (27,515 ) 164 271,651 Reported as liabilities: Provision for contingencies 18,112 36,160 (26,137 ) (179 ) 27,956 Total $ 325,099 $ 50,928 $ (54,896 ) $ (57 ) $ 321,074 Year ended December 31, 2016: Deducted from assets accounts: Allowance for doubtful accounts $ 12,768 $ 5,367 $ (1,647 ) $ (121 ) $ 16,367 Valuation allowance on deferred tax assets 297,891 36,778 (24,967 ) (19,082 ) 290,620 Reported as liabilities: Provision for contingencies 20,578 28,577 (32,049 ) 1,006 18,112 Total $ 331,237 $ 70,722 $ (58,663 ) $ (18,197 ) $ 325,099 Year ended December 31, 2015: Deducted from assets accounts: Allowance for doubtful accounts $ 9,373 $ 6,656 $ (2,615 ) $ (646 ) $ 12,768 Valuation allowance on deferred tax assets 301,012 49,879 (401 ) (52,599 ) 297,891 Reported as liabilities: Provision for contingencies 12,204 37,729 (24,858 ) (4,497 ) 20,578 Total $ 322,589 $ 94,264 $ (27,874 ) $ (57,742 ) $ 331,237 (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 2017 , 2016 and 2015 – Relate to the accrual of $36,160 , $28,577 and $37,729 , 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 and reclassifications amounting to $25,427 and $710 , respectively, during fiscal year 2017 ; $20,554 and $11,495 , respectively, during fiscal year 2016 ; and $23,415 and $1,443 , respectively, during fiscal year 2015 ; as discussed in Note 18. (iii) At December 31, 2017, presented in the consolidated balance sheet as follow: $19,791 within Accounts and notes receivable, net and $1,676 within Other receivables. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events During February 2018, the Venezuelan government announced the unification of the formerly exchange rate systems, DIPRO and DICOM II, into a sole foreign exchange mechanism called DICOM. The unified system operates through an auction mechanism similar to the formerly DICOM II. The first auction was published on February 5, 2018, with and exchange rate of 25,000 VEF per US dollar. As a result of the announcement, the Company will reassess the exchange rate used for remeasurement purposes as of March 31, 2018, based on any new available information. As of December 31, 2017, the Company’s local currency denominated net monetary position was $(9.7) (including $13.0 of cash and cash equivalents). In addition, Venezuela’s non-monetary assets were $75.2 (including approximately $33.5 of fixed assets and advances to suppliers). On March 20, 2018, the Company approved a dividend distribution to all Class A and Class B shareholders of $0.10 per share, to be paid in two equal installments of $0.05 per share on April 5, 2018 and October 5, 2018. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use Of Estimates | Use of estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Foreign Currency Matters | Foreign currency matters The financial statements of the Company’s foreign operating subsidiaries are translated in accordance with guidance in ASC 830 Foreign Currency Matters. Except for the Company’s Venezuelan operations, the functional currencies of the Foreign currency matters (continued) Company’s foreign operating subsidiaries are the local currencies of the countries in which they conduct their operations. Therefore, assets and liabilities are translated into US dollars at the balance sheet date exchange rates, and revenues, expenses and cash flow are translated at average rates prevailing during the periods. Translation adjustments are included in the “Accumulated other comprehensive losses” component of shareholders’ equity. The Company includes foreign currency exchange results related to monetary assets and liabilities transactions, including intercompany transactions, denominated in currencies other than its functional currencies in its income (loss) statement. Since January 1, 2010, Venezuela has considered to be highly inflationary, and as such, the financial statements of the Company’s Venezuelan subsidiaries are remeasured as its functional currency was the reporting currency (US dollars). As a result, remeasurement gains and losses are recognized in earnings rather than in the cumulative translation adjustment, component of “Accumulated other comprehensive losses” within shareholders’ equity. See Note 22 for additional information pertaining to the Company’s Venezuelan operations, including currency restrictions and controls existing in the country and a discussion of the exchange rate used for remeasurement purposes. |
Cash And Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less, from the date of purchase, to be cash equivalents. |
Revenue Recognition | Revenue recognition The Company’s revenues consist of sales by Company-operated restaurants and revenues from restaurants operated by franchisees. Sales by Company-operated restaurants are recognized at the point of sale. The Company presents sales net of sales tax and other sales-related taxes. Revenues from restaurants operated by franchisees include rental income, initial franchise fees and royalty income. Rental income is measured on a monthly basis based on the greater of a fixed rent, computed on a straight-line basis, or a certain percentage of gross sales reported by franchisees. Initial franchise fees represent the difference between the amount the Company collects from the franchisee and the amount the Company pays to McDonald’s Corporation upon the opening of a new restaurant. Royalty income represents the difference, if any, between the amount the Company collects from the franchisee and the amount the Company is required to pay to McDonald’s Corporation. Royalty income is recognized in the period earned. |
Accounts And Notes Receivable And Allowance For Doubtful Accounts | Accounts and notes receivable and allowance for doubtful accounts Accounts receivable primarily consist of royalty and rent receivables due from franchisees and debit and credit card receivables. Accounts receivable are initially recorded at fair value and do not bear interest. Notes receivable relates to interest-bearing financing granted to certain franchisees in connection with the acquisition of equipment and third-party suppliers. The Company maintains an allowance for doubtful accounts in an amount that it considers sufficient to cover losses resulting from the inability of its franchisees to make required payments. In judging the adequacy of the allowance for doubtful accounts, the Company considers multiple factors including historical bad debt experience, the current economic environment and the aging of the receivables. |
Other Receivables | Other receivables Other receivables primarily consist of value-added tax and other tax receivables (amounting to $16,215 and $15,089 as of December 31, 2017 and 2016 , respectively). Other receivables are reported at the amount expected to be collected. |
Inventories | Inventories Inventories are stated at the lower of cost or market, with cost being determined on a first-in, first-out basis. |
Property And Equipment, Net | Property and equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Property costs include costs of land and building for both company-operated and franchise restaurants while equipment costs primarily relate to company-operated restaurants. Cost of property and equipment acquired from McDonald’s Corporation (as part of the acquisition of LatAm business) was determined based on its estimated fair market value at the acquisition date, then partially reduced by the allocation of the negative goodwill that resulted from the purchase price allocation. Cost of property and equipment acquired or constructed after the acquisition of LatAm business in connection with the Company’s restaurant reimaging and extension program is comprised of acquisition and construction costs and capitalized internal costs. Capitalized internal costs include payroll expenses related to employees fully dedicated to restaurant construction projects and related travel expenses. Capitalized payroll costs are allocated to each new restaurant location based on the actual time spent on each project. The Company commences capitalizing costs related to construction projects when it becomes probable that the project will be developed – when the site has been identified and the related profitability assessment has been approved. Maintenance and repairs are expensed as incurred. Accumulated depreciation is calculated using the straight-line method over the following estimated useful lives: buildings – up to 40 years; leasehold improvements – the lesser of useful lives of assets or lease terms which generally include option periods; and equipment 3 to 12 years. |
Intangible Assets, Net | Intangible assets, net Intangible assets include computer software costs, initial franchise fees, reacquired rights under franchise agreements, letter of credit fees and others. The Company follows the provisions of ASC 350-40-30 within ASC 350 Intangibles, Subtopic 40 Internal Use Software which requires the capitalization of costs incurred in connection with developing or obtaining software for internal use. These costs are amortized over a period of three years on a straight line basis. The Company is required to pay to McDonald’s Corporation an initial franchisee fee upon opening of a new restaurant. The initial franchise fee related to Company-operated restaurants is capitalized as an intangible asset and amortized on a straight-line basis over the term of the franchise. A reacquired franchise right is recognized as an intangible asset as part of the business combination in the acquisition of franchised restaurants apart from goodwill with an assigned amortizable life limited to the remaining contractual term (i.e., not including any renewal periods). The value assigned to the reacquired franchise right excludes any amounts recognized as a settlement gain or loss and is limited to the value associated with the remaining contractual term and operating conditions for the acquired restaurants. The reacquired franchise right is measured using a valuation technique that considers restaurant's cash flows after payment of an at-market royalty rate to the Company. The cash flows are projected for the remaining contractual term, regardless of whether market participants would consider potential contractual renewals in determining its fair value. Letter of credit fees are amortized on a straight-line basis over the term of the Letter of Credit. |
Impairment And Disposal Of Long-Lived Assets | Impairment and disposal of long-lived assets In accordance with the guidance within ASC 360-10-35, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of the asset may not be recoverable. For purposes of reviewing assets for potential impairment, assets are grouped at a country level for each of the operating markets. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, each restaurant’s Impairment and disposal of long-lived assets (continued) cash flows are not largely independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value considering its highest and best use, as determined by an estimate of discounted future cash flows or its market value. |
Goodwill | Goodwill Goodwill represents the excess of cost over the estimated fair market value of net tangible assets and identifiable intangible assets acquired. In accordance with the guidance within ASC 350 Intangibles-Goodwill and Other, goodwill is stated at cost and reviewed for impairment on an annual basis. The annual impairment test is performed during the fourth quarter of the fiscal year and compares the fair value of each reporting unit, generally based on discounted future cash flows, with its Goodwill (continued) carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill. In assessing the recoverability of the goodwill, the Company considers changes in economic conditions and makes assumptions regarding estimated future cash flows and other factors. Estimates of future cash flows are highly subjective judgments based on the Company’s experience and knowledge of its operations. These estimates can be significantly impacted by many factors including changes in global and local business and economic conditions, operating costs, inflation, competition, and consumer and demographic trends. |
Advertising Costs | Advertising costs Advertising costs are expensed as incurred. |
Accounting For Income Taxes | Accounting for income taxes The Company records deferred income taxes using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The guidance requires companies to set up a valuation allowance for that component of net deferred tax assets which does not meet the more likely than not criterion for realization. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company is regularly audited by tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. |
Accounts Payable Outsourcing | Accounts payable outsourcing The Company offers its suppliers access to an accounts payable services arrangement provided by third party financial institutions. This service allows the Company’s suppliers to view its scheduled payments online, enabling them to better manage Accounts payable outsourcing (continued) their cash flow and reduce payment processing costs. Independent of the Company, the financial institutions also allow suppliers to sell their receivables to the financial institutions in an arrangement separately negotiated by the supplier and the financial institution. The Company has no economic interest in the sale of these receivables and no direct relationship with the financial institutions concerning the sale of receivables. All of the Company’s obligations, including amounts due, remain to the Company’s suppliers as stated in the supplier agreements. |
Share-Based Compensation | Share-based compensation The Company recognizes compensation expense as services required to earn the benefits are rendered. See Note 17 for details of the outstanding plans and the related accounting policies. |
Derivative Financial Instruments | Derivative financial instruments The Company utilizes certain hedge instruments to manage its interest rate and foreign currency rate exposures. The counterparties to these instruments generally are major financial institutions. The Company does not hold or issue derivative instruments for trading purposes. In entering into these contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The Company does not expect any losses as a result of counterparty defaults. All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Additionally, the fair value adjustments will affect either shareholders’ equity as accumulated other comprehensive income (loss) or net income (loss) depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. |
Severance Payments | Severance payments Under certain laws and labor agreements of the countries in which the Company operates, the Company is required to make minimum severance payments to employees who are dismissed without cause and employees leaving its employment in certain other circumstances. The Company accrues severance costs if they relate to services already rendered, are related to rights that accumulate or vest, are probable of payment and can be reasonably estimated. Otherwise, severance payments are expensed as incurred. |
Provision For Contingencies | Provision for contingencies The Company accrues liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and the Company’s lawyers’ experience in contesting, litigating and settling other matters. As the scope of the liabilities becomes better defined, there may be changes in the estimates of future costs. See Note 18 for details. |
Comprehensive Income (Loss) | Comprehensive income (loss) Comprehensive income (loss) includes net income as currently reported under generally accepted accounting principles and also includes the impact of other events and circumstances from non-owner sources which are recorded as a separate component of shareholders’ equity. The Company reports foreign currency translation gains and losses, unrealized results on cash flow hedges as well as unrecognized post-retirement benefits as components of comprehensive income (loss). |
Sales of Properties and Equipment and Restaurant Businesses | Sales of property and equipment and restaurant businesses The Company recognizes the sale of property and equipment when: (a) the profit is determinable, that is, the collectibility of the sales price is reasonably assured or the amount that will not be collectible can be estimated, and (b) the earnings process is virtually complete, that is, the Company is not obliged to perform significant activities after the sale to earn the profit. The sale of restaurant businesses is recognized when the Company transfers substantially all of the risks and rewards of ownership. In order to determine the gain or loss on the disposal, the goodwill associated with the sold of property and equipment and restaurant business, if any, is considered within the carrying value. The amount of goodwill to be included in that carrying amount is based on the relative fair value of the item to be disposed and the portion of the reporting unit that will be retained. |
Recent Accounting Pronouncements | Recent accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASC 606), “Revenue Recognition - Revenue from Contracts with Customers,” which amends the guidance in former ASC 605, “Revenue Recognition,” and becomes effective beginning January 1, 2017. In August 12, 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017. The standard’s core principle is that a Company must recognize revenue when it transfers promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. After evaluating the effect of adopting the new standard, the Company concluded that the sole source of revenue affected would be the initial franchise fee. The Company's current accounting policy is to recognize it when a new restaurant opens or at the start of a new franchise term, however, in accordance with the new guidance, the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement, and will therefore be treated as a single performance obligation. As such, initial franchise fees received will be deferred over the term of the franchise agreement. The Company will adopt the modified retrospective method as of the date the new guidance become effective. Consequently, a deferred income of $5 million will be recognized from date of the adoption (January 2018). In addition, in February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which modifies lease accounting for lessees to increase transparency and comparability by recording a right-of-use asset and lease liability on their balance sheet for operating leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. This standard is effective for annual periods beginning after December 15, 2018, including interim periods. The Company will adopt ASU 2016-02 in its first quarter of 2019 utilizing the modified retrospective transition method and expects to apply the transition practical expedients allowed by the standard. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. No other new accounting pronouncement issued or effective during the periods had or is expected to have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Details of Impairment of Long-Lived Assets | As a result of these assessments, the Company concluded the second step was required to be performed as a component of the impairment testing of its long-lived assets in the following markets on a per store basis: 2017 2016 2015 Puerto Rico Yes Yes Yes Mexico Yes Yes Yes Peru Yes Yes Yes Aruba Yes Yes Yes Curacao No No Yes USVI Yes Yes Yes Venezuela Yes Yes Yes Colombia Yes Yes Yes Ecuador Yes Yes Yes Trinidad and Tobago Yes Yes No As a result of the impairment testing the Company recorded the following impairment charges, for the markets indicated below, within Other operating income, net on the Statements of Income (loss): Fiscal year Markets Total 2017 Mexico, Puerto Rico, USVI, Peru, Ecuador, Colombia, Venezuela and Trinidad and Tobago $ 17,564 2016 Mexico, Puerto Rico, USVI, Peru, Ecuador, Venezuela and Trinidad and Tobago 7,697 2015 Mexico, Peru, Colombia and Venezuela 12,343 |
Schedule of Goodwill Impairment | As a result of the analyses performed the Company recorded the following impairment charges, related to goodwill generated in the acquisition of franchised restaurants, for the markets indicated below within Other operating income, net on the statements of income (loss): Fiscal year Markets Total 2017 Mexico $ 200 2016 Mexico 5,045 2015 Argentina 679 |
Acquisition of Businesses (Tabl
Acquisition of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule Of Non-Significant Business Acquisitions | During fiscal years 2017 and 2015 , the Company acquired certain franchised restaurants in certain territories. No acquisitions of franchised restaurant were made during fiscal year 2016. Presented below is supplemental information about these acquisitions: Other acquisitions (continued) Purchases of restaurant businesses: 2017 2016 2015 Property and equipment $ 429 $ — $ 936 Identifiable intangible assets 5,346 — 853 Goodwill 200 — 1,621 Assumed debt — — (206 ) Gain on purchase of franchised restaurants (4,808 ) — — Purchase price 1,167 — 3,204 Restaurants sold in exchange (261 ) — — Settlement of franchise receivables (36 ) — (2,113 ) Net cash paid at acquisition date $ 870 $ — $ 1,091 |
Accounts and Notes Receivable40
Accounts and Notes Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule Of Accounts And Notes Receivable, Net | Accounts and notes receivable, net consist of the following at year end: 2017 2016 Receivables from franchisees $ 67,115 $ 45,700 Debit and credit card receivables 48,610 40,652 Meal voucher receivables 11,683 11,024 Notes receivable 3,685 2,230 Allowance for doubtful accounts (19,791 ) (16,367 ) $ 111,302 $ 83,239 |
Prepaid Expenses and Other Cu41
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid expenses and other current assets consist of the following at year end: 2017 2016 Prepaid taxes $ 48,076 $ 52,407 Prepaid expenses 27,478 18,753 Promotion items and prepayments 17,683 12,853 Other 967 3,630 $ 94,204 $ 87,643 |
Miscellaneous (Tables)
Miscellaneous (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Miscellaneous Assets | Miscellaneous consist of the following at year end: 2017 2016 Judicial deposits $ 44,854 $ 35,652 Tax credits 22,402 21,060 Prepaid property and equipment 10,317 13,279 Notes receivable 4,406 4,509 Rent deposits 3,273 4,471 Other 13,039 10,690 98,291 89,661 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment, Net | Property and equipment, net consist of the following at year-end: 2017 2016 Land $ 158,634 $ 145,417 Buildings and leasehold improvements 633,747 605,156 Equipment 642,449 563,973 Total cost 1,434,830 1,314,546 Total accumulated depreciation (544,094 ) (466,580 ) $ 890,736 $ 847,966 |
Net Intangible Assets and Goo44
Net Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Net Intangible Assets and Goodwill | Net intangible assets and goodwill consist of the following at year-end: 2017 2016 Net intangible assets (i) Computer software cost $ 72,717 $ 66,969 Initial franchise fees 15,572 15,039 Reacquired franchised rights 13,667 8,219 Letter of credit fees 940 940 Others 1,000 1,000 Total cost 103,896 92,167 Total accumulated amortization (63,245 ) (56,242 ) Subtotal 40,651 35,925 Goodwill (ii) 2017 2016 Brazil 5,013 5,100 Chile 1,209 1,110 Argentina 350 411 Ecuador 273 273 Peru 174 167 Colombia 59 58 Subtotal 7,078 7,119 $ 47,729 $ 43,044 (i) Total amortization expense for fiscal years 2017 , 2016 and 2015 amounted to $10,297 , $8,976 and $14,332 , respectively. The estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: $16,162 for 2018 , $11,402 for 2019 ; $4,737 for 2020 ; $1,635 for 2021 ; $1,239 for 2022 ; and thereafter $5,476 . (ii) Related to the acquisition of franchised restaurants (Brazil, Peru, Chile, Argentina and Colombia) and non-controlling interests in subsidiaries (Ecuador and Chile). |
Accrued Payroll and Other Lia45
Accrued Payroll and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Payroll And Other Liabilities | Accrued payroll and other liabilities consist of the following at year end: 2017 2016 Current: Accrued payroll $ 97,995 $ 95,754 Advances related to pending sales of property and equipment and restaurant businesses — 34,341 Accrued expenses 13,574 9,492 Other liabilities 7,519 4,855 $ 119,088 $ 144,442 Non-current: Deferred rent 15,198 13,782 Other liabilities 14,168 9,978 $ 29,366 $ 23,760 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule Of Long-Term Debt | The following table presents information related to the purchase and repayments of the principal of the 2016 Notes: Amount Date Redemption price BRL $ November 25, 2015 93.75% 40,000 9,995 November 30, 2015 93.75% 7,039 1,715 January 29, 2016 97.75% 1,180 288 April 21, 2016 100.00% 421,765 118,797 May 5, 2016 97.00% 4,025 1,106 July 13, 2016 100.00% 200,991 60,965 Total 675,000 192,866 Each loan under the agreement bore interest at the following annual interest rates: Lender Annual Interest Rate Citibank N.A. 3M LIBOR + 2.439% Itaú BBA International plc 5.26% Banco Santander (Brasil) S.A., Cayman Islands Branch 4.7863% Bank of America N.A. 3M LIBOR + 4.00% JP Morgan Chase Bank, N.A. 3M LIBOR + 3.92% The following table presents additional information related to the 2027, 2023 and 2016 Notes (the "Notes"): Principal as of December 31, Annual interest rate Currency 2017 2016 Maturity 2027 Notes 5.875 % USD 265,000 — April 4, 2027 2023 Notes 6.625 % USD 348,069 393,767 September 27, 2023 2027, 2023 and 2016 Notes (continued): Interest Expense (i) DFC Amortization (i) Accretion of Premium and Amortization of Discount (i) 2017 2016 2015 2017 2016 2015 2017 2016 2015 2027 Notes 11,547 — — 224 — — — — — 2023 Notes 23,885 28,516 31,387 610 943 439 752 1,157 515 2016 Notes — 6,668 20,991 — 391 805 — (266 ) (496 ) (i) These charges are included within "Net interest expense" in the consolidated statements of income. Long-term debt consists of the following at year-end: 2017 2016 2027 Notes $ 265,000 $ — 2023 Notes 348,069 393,767 Secured Loan Agreement — 167,262 Capital lease obligations 4,539 4,704 Other long-term borrowings 22,900 25,553 Subtotal 640,508 591,286 Discount on 2023 Notes (3,804 ) (5,029 ) Premium on 2023 Notes 1,438 1,910 Fair value adjustment related to Secured Loan Agreement (i) — (2,877 ) Deferred financing costs (4,641 ) (5,611 ) Total 633,501 579,679 Current portion of long-term debt 4,359 28,099 Long-term debt, excluding current portion $ 629,142 $ 551,580 (i) The carrying value of hedged items in fair value hedges, are adjusted for fair value changes to the extent they are attributable to the risks designated as being hedged. The related hedging instrument was also recorded at fair value included within "Derivative instruments" in current and non-current liabilities as of December 31, 2016. The following table presents information related to the Secured Loan Agreement: Interest Expense (i) (ii) DFC Amortization (ii) Other Costs (ii) (iii) 2017 2016 2015 2017 2016 2015 2017 2016 2015 $ 2,570 $ 6,519 $ — $ 3,251 $ 814 $ — $ 2,249 $ — $ — (i) These charges do not include the effect of the cross-currency interest rate swap agreements mentioned in Note 13, amounting to a loss of $6,921 and $18,177 , during fiscal years 2017 and 2016, respectively. Including these effects the total interest cost amounts to $9,491 and $24,696 , respectively. (ii) These charges are included within "Net interest expense" in the consolidated statement of income. (iii) Transaction costs related to the repayment of the Loan. |
Schedule Of Future Payments Related To Long-Term Debt | Principal Interest Total 2018 4,359 40,920 45,279 2019 4,404 40,557 44,961 2020 3,895 40,217 44,112 2021 3,831 39,862 43,693 2022 4,040 39,468 43,508 Thereafter 619,979 94,148 714,127 Total payments 640,508 295,172 935,680 Interest — (295,172 ) (295,172 ) Discount on 2023 Notes (3,804 ) — (3,804 ) Premium on 2023 Notes 1,438 — 1,438 Deferred financing cost (4,641 ) — (4,641 ) Long-term debt $ 633,501 $ — $ 633,501 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments, Fair Value | The following table presents the fair values of derivative instruments included in the consolidated balance sheets as of December 31, 2017 and 2016 : Derivatives Fair Value Type of Derivative Balance Sheets Location 2017 2016 Derivatives designated as hedging instruments Cash flow hedge Forward contracts Other receivables $ 309 $ — Forward contracts Accrued payroll and other liabilities $ (517 ) $ (100 ) Cross-currency interest rate swap (i) Derivative instruments 7,835 (3,274 ) Call spread (i) Derivative instruments (10,908 ) — Coupon-only swap (i) Derivative instruments 15,114 — Fair value hedge Cross-currency interest rate swap (i) Derivative instruments — (27,217 ) Total derivative instruments $ 11,833 $ (30,591 ) (i) At December 31, 2017 , presented in the consolidated balance sheet as follows: $35,069 as non-current asset, $15,522 as a current liability and $7,506 as non-current liability. At December 31, 2016 , presented in the consolidated balance sheet as follows: $19,876 as a current liability and $10,615 as a non-current liability. |
Schedule of Derivative Instruments | The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate JP Morgan Chase Bank, N.A. (i) BRL 108,000 13 % $ 35,400 4.38 % March 31/ September 30 September 2023 JP Morgan Chase Bank, N.A. BRL 98,670 13 % $ 30,000 6.02 % March 31/ September 30 September 2023 Citibank N.A. BRL 94,200 13 % $ 30,000 6.29 % March 31/ September 30 September 2023 (i) During the fiscal year ended December 31, 2017 , the agreement was amended twice: on February 9, 2017 and February 22, 2017. All the terms of the swap agreement match the terms of the BRL intercompany loan receivable. As a result of the amendments the Company paid $2,689 . According to ASC 815-30-40, the amount deferred in accumulated other comprehensive income until the date of the last amendment, amounting to $677 as of December 31, 2017 , will be amortized to earnings as the originally hedged cash flows affects the statement of income. The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate Citibank S.A. BRL 155,500 11.08 % $ 50,000 6.91 % June 30/ December 31 September 2023 JP Morgan S.A. BRL 156,250 11.18 % $ 50,000 6.91 % March 31/ September 30 April 2027 The Company paid $1,390 of net interest during the twelve months ended December 31, 2017 , related to these agreements. The following table presents information related to the terms of the agreements: Bank Payable Receivable Interest payment dates Maturity Currency Amount Interest rate Currency Amount Interest rate BAML (i) BRL 156,250 13.64 % $ 50,000 6.91 % March 31/ September 30 April 2027 Banco Santander S.A. BRL 155,500 13.77 % $ 50,000 6.91 % June 30/ December 31 September 2023 Derivatives designated as hedging instruments (continued) Cash flow hedge (continued) Cross-currency interest rate swap (continued) (i) Bank of America Merrill Lynch Banco Múltiplo S.A. |
Schedule Of Cash Flow Hedges Included In Accumulated Other Comprehensive Income (Loss) | The following table present the pretax amounts affecting income and other comprehensive income for the twelve months ended December 31, 2017 and 2016 for each type of derivative relationship: Derivatives designated as hedging instruments (continued) Cash flow hedge (continued) Additional disclosures (continued) Derivatives in Cash Flow Hedging Relationships (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) (i) Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) (ii) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Forward contracts $ (1,344 ) $ (1,861 ) $ 1,903 $ 1,236 $ 1,307 $ (2,306 ) $ — $ — $ — Cross-currency interest rate swaps 5,828 (16,952 ) 18,584 1,965 9,935 (11,903 ) — — (2,650 ) Call Spread 21,047 — — 2,791 — — — — — Coupon-only swap (13,598 ) — — (5,933 ) — — (101 ) — — Total 11,933 (18,813 ) 20,487 59 11,242 (14,209 ) (101 ) — (2,650 ) (i) The (loss) gain recognized in income related to forward contracts was recorded as an adjustment to food and paper. The net (loss) gain recognized in income, related to Cross-currency interest rate swaps is presented in the consolidated statement of income as follows: a gain (loss) of $7,532 and $(6,997) and $13,595 , for the fiscal years 2017, 2016 and 2015, respectively, as an adjustment to foreign currency exchange results and a loss of $9,497 and $2,938 and $1,692 , for the fiscal years 2017, 2016 and 2015, respectively as an adjustment to net interest expense. The gain (loss) recognized in income related to call spread agreements and coupon-only swap agreements were recorded as an adjustment to foreign currency exchange and interest expense, respectively. (ii) The gain recognized in income is presented within "Loss from derivative instruments" |
Derivative Instruments, Gain (Loss) | The following table presents the pretax amounts affecting income for the fiscal years ended December 31, 2017 and 2016 , respectively: Cross-currency swaps (i) Derivatives in Fair Value Hedging Relationships 2017 2016 Loss recognized in Income on hedging derivatives (9,599) (5,814) Gain recognized in Income on hedging items 4,118 2,877 (i) The loss of $5,481 and $2,937 , in 2017 and 2016 respectively, related to the ineffective portion of derivatives, was recorded within “Loss from derivative instruments” in the Company’s consolidated statements of income (loss). |
Schedule Of Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance | The following table presents amounts affecting income related to derivatives not designated as hedging instruments: Derivatives not designated as hedging instruments (continued) Total equity return swap (continued) Derivatives Not Designated as Hedging Instruments Location of Loss Recognized in Income Loss Recognized in Income on Derivative instruments 2017 2016 2015 Total equity return swap General and administrative expenses (i) $ — $ — $ (1,743 ) Net interest expense — — (453 ) Others Loss from derivative instruments — (127 ) (244 ) Total $ — 1,504 $ (127 ) $ (2,440 ) (i) For the fiscal year 2015, includes a loss amounting to $1,252 excluded from Adjusted EBITDA as from the total vesting of the plan. See Adjusted EBITDA reconciliation in Note 21. |
Operating Lease Agreements (Tab
Operating Lease Agreements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases, Operating [Abstract] | |
Schedule Of Future Minimum Rental Payments For Operating Leases | At December 31, 2017 , future minimum payments required under existing operating leases with initial terms of one year or more are: Restaurant Other Total 2018 $ 141,641 $ 6,844 $ 148,485 2019 124,242 4,639 128,881 2020 109,389 4,378 113,767 2021 94,080 3,333 97,413 2022 76,339 2,729 79,068 Thereafter 350,413 14,570 364,983 Total minimum payment $ 896,104 $ 36,493 $ 932,597 |
Schedule Of Details Of Rent Expense | The following table provides detail of rent expense for fiscal years 2017 , 2016 and 2015 : 2017 2016 2015 Company-operated restaurants (i) $ 148,505 $ 131,142 $ 135,232 Franchised restaurants (ii) 54,711 43,311 36,381 Total rent expense $ 203,216 $ 174,453 $ 171,613 (i) Included within “Occupancy and other operating expenses” in the consolidated statements of income (loss). (ii) Included within “Franchised restaurants – occupancy expenses” in the consolidated statements of income (loss). |
Schedule Of Rent Expense | The following table provides a breakdown detail of rent expense between minimum and contingent rentals for fiscal years 2017 , 2016 and 2015 : 2017 2016 2015 Minimum rentals $ 138,496 $ 122,726 $ 122,110 Contingent rentals based on sales 64,720 51,727 49,503 Total rent expense $ 203,216 $ 174,453 $ 171,613 |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Franchise Arrangements [Line Items] | |
Schedule Of Revenues From Franchised Restaurants | Revenues from franchised restaurants for fiscal years 2017 , 2016 and 2015 consisted of: 2017 2016 2015 Rent $ 155,405 $ 123,311 $ 121,122 Initial fees (i) 1,205 1,386 611 Royalty fees (ii) 659 599 628 Total $ 157,269 $ 125,296 $ 122,361 (i) Presented net of initial fees paid to McDonald’s Corporation for $1,417 , $1,588 and $747 in 2017 , 2016 and 2015 , respectively. (ii) Presented net of royalties fees paid to McDonald’s Corporation for $64,806 , $50,839 and $49,742 in 2017 , 2016 and 2015 , respectively. |
Schedule Of Future Minimum Rent Payments | At December 31, 2017 , future minimum payments required under existing operating leases with initial terms of one year or more are: Restaurant Other Total 2018 $ 141,641 $ 6,844 $ 148,485 2019 124,242 4,639 128,881 2020 109,389 4,378 113,767 2021 94,080 3,333 97,413 2022 76,339 2,729 79,068 Thereafter 350,413 14,570 364,983 Total minimum payment $ 896,104 $ 36,493 $ 932,597 |
Rent Payments Due To Company [Member] | |
Franchise Arrangements [Line Items] | |
Schedule Of Future Minimum Rent Payments | At December 31, 2017 , future minimum rent payments due to the Company under existing franchised agreements are: Owned sites Leased sites Total 2018 $ 5,651 $ 59,667 $ 65,318 2019 5,185 56,869 62,054 2020 4,782 53,615 58,397 2021 4,462 48,347 52,809 2022 3,795 41,043 44,838 Thereafter 18,561 160,860 179,421 Total $ 42,436 $ 420,401 $ 462,837 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Statutory Tax Rates | Statutory tax rates in the countries in which the Company operates for fiscal years 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Puerto Rico 20% 20% 20% Argentina, Martinique, French Guyana, Guadeloupe, St Croix, St. Thomas, Aruba and Curacao 35% 35% 35% Brazil and Venezuela 34% 34% 34% Colombia 40% 40% 39% Peru 30% 28% 28% Costa Rica and Mexico 30% 30% 30% Panamá, Uruguay, Trinidad and Tobago, Ecuador and Netherlands 25% 25% 25% Chile 26% 24% 23% |
Schedule Of Components Of Income Tax Expense | Income tax expense for fiscal years 2017 , 2016 and 2015 consisted of the following: 2017 2016 2015 Current income tax expense $ 51,215 $ 54,142 $ 31,873 Deferred income tax expense (benefit) 2,099 5,499 (9,057 ) Income tax expense $ 53,314 $ 59,641 $ 22,816 |
Schedule Of Components Of Income Tax Expense By Applying Weighted-Average Statutory Income Tax Rate | Income tax expense for fiscal years 2017 , 2016 and 2015 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: 2017 2016 2015 Pre-tax income (loss) $ 182,813 $ 138,629 $ (28,553 ) Weighted-average statutory income tax rate (i) 35.5 % 35.4 % 32.8 % Income tax expense at weighted-average statutory tax rate on pre-tax income (loss) 64,901 49,030 (9,353 ) Permanent differences : Change in valuation allowance (ii) (19,133 ) (17,037 ) 63,880 Expiration and changes in tax loss carryforwards (iii) 14,007 18,291 — Non-deductible expenses 9,888 15,047 10,243 Tax benefits, including Brazil and other (10,744 ) (14,437 ) (17,377 ) Income taxes withholdings on intercompany transactions (iv) 6,804 22,379 1,557 Differences including exchange rate, inflation adjustment and filing differences (11,769 ) (13,001 ) (29,222 ) Alternative Taxes (363 ) (114 ) 2,386 Others (277 ) (517 ) 702 Income tax expense $ 53,314 $ 59,641 $ 22,816 (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 Non-Operating Losses (NOLs). (iii) Expiration of loss tax carryforwards are mainly generated by Holding legal entities and the Caribbean division. (iv) Comprises income tax withheld on the payment of interest on intercompany loans. In 2016 this item also includes the withholding income tax of $18.2 million due the repayment of the Company’s 2016 Notes. |
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 at December 31, 2017 and 2016 are presented below: 2017 2016 Tax loss carryforwards (i) $ 238,082 $ 268,389 Purchase price allocation adjustment 24,437 30,855 Property and equipment, tax inflation 37,577 37,471 Other accrued payroll and other liabilities 30,730 15,437 Share-based compensation 3,850 4,151 Provision for contingencies 2,478 3,449 Other deferred tax assets (ii) 21,528 27,292 Other deferred tax liabilities (iii) (10,670 ) (13,649 ) Property and equipment - difference in depreciation rates (12,639 ) (14,195 ) Valuation allowance (iv) (271,651 ) (290,620 ) Net deferred tax asset $ 63,722 $ 68,580 (i) As of December 31, 2017 , the Company and its subsidiaries has accumulated operating tax loss carryforwards amounting to $849,911 . The Company has operating tax loss carryforwards amounting to $274,106 , expiring between 2018 and 2022. In addition, the Company has operating tax loss carryforwards amounting to $348,370 expiring after 2022 and operating tax loss carryforwards amounting to $227,435 that do no expire. Changes in tax loss carryforwards for the year relate to the use of NOLs, mainly in Mexico and Brazil, and the expiration of tax loss carryforwards in other markets. (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). For the fiscal year ended December 31, 2017 , this item includes: bad debt reserve in Puerto Rico for $3,782 , provision for regular expenses for $9,824 , mainly corresponding to Brazil, Mexico and Colombia; and foreign currency exchange differences in Venezuela for $698 . For the fiscal year ended December 31, 2016 this item includes regular expenses provisions for $14,063 , for Brazil and Colombia; $5,055 related to foreign currency exchange differences in Venezuela and $3,832 in Puerto Rico, mainly related to bad debt reserve. (iii) Primarily related to intangible assets and foreign currency exchange differences. (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. |
Summary of Income Tax Contingencies | As of December 31, 2017, and 2016, the Company’s gross unrecognized tax benefits totaled Nil and $19 (including interests and penalties), respectively, that would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2017 2016 Balances at beginning balance $ 19 $ 63 Decrease for positions taken in prior years (19 ) (44 ) Balances at ending balance $ — $ 19 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) - 2011 Equity Incentive Plan [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Employee Compensation Equity Incentive Plan Activity (Stock Option) | The following table summarizes the activity of stock options during fiscal years 2017 , 2016 and 2015 : Units Weighted-average strike price Weighted-average grant-date fair value Outstanding at December 31, 2014 2,550,835 17.62 4.94 Forfeitures (141,130 ) 16.54 5.02 Expired (i) (383,811 ) 20.01 5.41 Outstanding at December 31, 2015 2,025,894 21.03 5.87 Forfeitures (80,734 ) 10.30 2.68 Expired (i) (51,305 ) 14.05 4.02 Modification (ii) (1,117,380 ) 19.07 5.30 Outstanding at December 31, 2016 776,475 15.55 4.46 Expired (i) (141,986 ) 21.20 5.28 Outstanding at December 31, 2017 634,489 14.28 4.28 Exercisable at December 31, 2017 540,331 15.03 4.58 (i) As of December 31, 2017 , 2016 and 2015, Additional paid-in capital included $750 , $206 and $2,077 respectively, related to expired stock options. (ii) Corresponds to stock options converted to a liability award. |
Schedule Of Vested And Nonvested Unit Activity | The following table provides a summary of outstanding stock options at December 31, 2017 : 2011 Equity Incentive Plan (continued) Stock Options (continued) Vested (i) Non-vested (ii) Total Number of units outstanding 540,331 94,158 634,489 Weighted-average grant-date fair market value per unit 4.58 2.53 4.28 Total grant-date fair value 2,476 238 2,714 Weighted-average accumulated percentage of service 100 86.6 98.8 Stock-based compensation recognized in Additional paid-in capital 2,476 206 2,682 Compensation expense not yet recognized (iii) — 32 32 (i) Related to exercisable awards. (ii) Related to awards that will vest between fiscal years 2017 and 2019. (iii) Expected to be recognized in a weighted-average period of 0.3 years. |
Restricted Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Restricted Share Units Activity | The following table summarizes the activity of restricted share units during fiscal years 2017 , 2016 and 2015 : 2011 Equity Incentive Plan (continued) Restricted Share Units (continued) Units Weighted-average grant-date fair value Outstanding at December 31, 2014 862,855 14.38 2015 annual grant 923,213 6.33 Partial vesting of 2011 grant (222,781 ) 21.20 Partial vesting of 2012 grant (31,772 ) 14.35 Partial vesting of 2013 grant (68,300 ) 14.31 Forfeitures (233,005 ) 9.88 Outstanding at December 31, 2015 1,230,210 7.96 2016 annual grant 865,291 4.70 Partial vesting of 2011 grant (27,075 ) 21.20 Partial vesting of 2012 grant (24,653 ) 14.35 Partial vesting of 2013 grant (26,054 ) 14.31 Partial vesting of 2014 grant (94,546 ) 8.58 Forfeitures (142,176 ) 6.64 Outstanding at December 31, 2016 1,780,997 6.07 2017 annual grant 497,960 9.20 Partial vesting of 2012 grant (23,003 ) 14.35 Partial vesting of 2013 grant (24,073 ) 14.31 Partial vesting of 2014 grant (44,312 ) 8.58 Partial vesting of 2015 grant (269,896 ) 6.33 Forfeitures (180,828 ) 5.99 Outstanding at December 31, 2017 1,736,845 6.65 Exercisable at December 31, 2017 — — |
Schedule Of Vested And Nonvested Unit Activity | The following table provides a summary of outstanding restricted share units at December 31, 2017 : Number of units outstanding (i) 1,736,845 Weighted-average grant-date fair market value per unit 6.65 Total grant-date fair value 11,542 Weighted-average accumulated percentage of service 49.80 Stock-based compensation recognized in Additional paid-in capital 5,744 Compensation expense not yet recognized (ii) 5,798 (i) Related to awards that will vest between fiscal years 2018 and 2022. (ii) Expected to be recognized in a weighted-average period of 2.0 years. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Covenant Ratios | The following table summarize Company’s ratios requirements for the three-month periods ended from March 31, 2015 to December 31, 2017 : Fixed Charge Coverage Ratio Leverage Ratio March 31, 2015 1.40 4.62 June 30, 2015 1.45 4.61 September 30, 2015 1.48 4.56 December 31, 2015 1.56 4.40 March 31, 2016 1.67 4.80 June 30, 2016 1.64 4.40 September 30, 2016 1.67 4.08 December 31, 2016 1.64 4.21 March 31, 2017 1.65 4.12 June 30, 2017 1.65 4.05 September 30, 2017 1.69 4.02 December 31, 2017 1.77 3.80 |
Schedule Of Provision For Contingencies | The breakdown of the provision for contingencies is as follows: Description Balance at beginning of period Accruals, net Settlements Reclassifications and increase of judicial deposits Translation Balance at end of period Year ended December 31, 2017: Tax contingencies in Brazil (i) $ 13,312 $ (2,599 ) $ (337 ) $ (667 ) $ (385 ) $ 9,324 Labor contingencies in Brazil (ii) 11,150 31,448 (21,130 ) — (407 ) 21,061 Other (iii) 12,222 7,150 (3,960 ) 17 217 15,646 Subtotal 36,684 35,999 (25,427 ) (650 ) (575 ) 46,031 Judicial deposits (iv) (18,572 ) 161 — (60 ) 396 $ (18,075 ) Provision for contingencies $ 18,112 $ 36,160 $ (25,427 ) $ (710 ) $ (179 ) $ 27,956 Year ended December 31, 2016: Tax contingencies in Brazil (i) $ 5,118 $ 7,196 $ — $ — $ 998 $ 13,312 Labor contingencies in Brazil (ii) 7,013 19,903 (17,523 ) — 1,757 11,150 Other (iii) 13,947 1,478 (3,031 ) (37 ) (135 ) 12,222 Subtotal 26,078 28,577 (20,554 ) (37 ) 2,620 36,684 Judicial deposits (iv) (5,500 ) — — (11,458 ) (1,614 ) (18,572 ) Provision for contingencies $ 20,578 $ 28,577 $ (20,554 ) $ (11,495 ) $ 1,006 $ 18,112 Year ended December 31, 2015: Tax contingencies in Brazil (i) $ 1,999 $ 4,616 $ (9 ) $ (532 ) $ (956 ) $ 5,118 Labor contingencies in Brazil (ii) 10,360 19,692 (19,877 ) (26 ) (3,136 ) 7,013 Other (iii) 7,780 13,421 (4,213 ) (22 ) (3,019 ) 13,947 Subtotal 20,139 37,729 (24,099 ) (580 ) (7,111 ) 26,078 Judicial deposits (iv) (7,935 ) — 684 (863 ) 2,614 (5,500 ) Provision for contingencies $ 12,204 $ 37,729 $ (23,415 ) $ (1,443 ) $ (4,497 ) $ 20,578 (i) In 2017, it includes mainly CIDE. In 2016 and 2015 it includes indirect tax matters, mainly PIS/COFINS. (ii) It primarily relates to dismissals in the normal course of business. (iii) It relates to tax and labor contingencies in other countries and civil contingencies in all the countries. (iv) It primarily relates to judicial deposits the Company was required to make in connection with the proceedings in Brazil. |
Disclosures About Fair Value 53
Disclosures About Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2017 Assets Cash equivalents $ 93,541 $ — $ — $ 93,541 Short-term Investments — 19,588 — $ 19,588 Derivatives — 35,378 — 35,378 Total Assets $ 93,541 $ 54,966 $ — $ 148,507 Liabilities Derivatives $ — $ 23,545 $ — $ 23,545 Share-based compensation — 1,483 — 1,483 Total Liabilities $ — $ 25,028 $ — $ 25,028 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2016 Assets Cash equivalents - Investment funds $ 132,040 $ — $ — $ 132,040 Total Assets $ 132,040 $ — $ — $ 132,040 Liabilities Derivatives $ — $ 30,591 $ — $ 30,591 Share-based compensation — 512 — 512 Secured loan agreement — 164,385 — 164,385 Total Liabilities $ — $ 195,488 $ — $ 195,488 |
Segment and Geographic Inform54
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Profit Or Loss And Assets For Reportable Segment | The following table presents information about profit or loss and assets for each reportable segment: For the fiscal years ended December 31, 2017 2016 2015 Revenues: Brazil $ 1,496,573 $ 1,333,237 $ 1,361,989 Caribbean division 474,822 409,671 398,144 NOLAD 386,874 363,965 367,364 SLAD 961,256 821,757 925,243 Total revenues $ 3,319,525 $ 2,928,630 $ 3,052,740 Adjusted EBITDA: Brazil $ 218,172 $ 168,076 $ 174,102 Caribbean division 40,844 18,049 2,059 NOLAD 33,717 36,288 31,424 SLAD 87,083 76,327 100,718 Total reportable segments 379,816 298,740 308,303 Corporate and others (i) (74,879 ) (60,295 ) (78,132 ) Total adjusted EBITDA $ 304,937 $ 238,445 $ 230,171 For the fiscal years ended December 31, 2017 2016 2015 Adjusted EBITDA reconciliation: Total Adjusted EBITDA $ 304,937 $ 238,445 $ 230,171 (Less) Plus items excluded from computation that affect operating income: Depreciation and amortization (99,382 ) (92,969 ) (110,715 ) Gains from sale or insurance recovery of property and equipment 95,081 57,244 12,308 Write-offs and related contingencies of property and equipment (8,528 ) (5,776 ) (6,038 ) Impairment of long-lived assets (17,564 ) (7,697 ) (12,343 ) Impairment of goodwill (200 ) (5,045 ) (679 ) Stock-based compensation related to the special awards in connection with the initial public offering under the 2011 Plan — — (210 ) Reorganization and optimization plan expenses — (5,341 ) (18,346 ) ADBV Long-Term Incentive Plan incremental compensation from modification (1,409 ) (281 ) (741 ) Operating income 272,935 178,580 93,407 (Less) Plus: Net interest expense (68,357 ) (66,880 ) (64,407 ) Loss from derivative instruments (7,065 ) (3,065 ) (2,894 ) Foreign currency exchange results (14,265 ) 32,354 (54,032 ) Other non-operating expenses, net (435 ) (2,360 ) (627 ) Income tax expense (53,314 ) (59,641 ) (22,816 ) Net income attributable to non-controlling interests (333 ) (178 ) (264 ) Net income (loss) attributable to Arcos Dorados Holdings Inc. $ 129,166 $ 78,810 $ (51,633 ) For the fiscal years ended December 31, 2017 2016 2015 Depreciation and amortization: Brazil $ 52,442 $ 43,733 $ 48,849 Caribbean division 25,210 27,376 30,998 NOLAD 20,635 21,975 25,733 SLAD 15,292 14,477 19,340 Total reportable segments 113,579 107,561 124,920 Corporate and others (i) 5,978 5,478 8,068 Purchase price allocation (ii) (20,175 ) (20,070 ) (22,273 ) Total depreciation and amortization $ 99,382 $ 92,969 $ 110,715 Property and equipment expenditures: Brazil $ 91,769 $ 42,657 $ 40,482 Caribbean division 16,759 14,387 11,756 NOLAD 17,565 10,117 14,623 SLAD 48,621 24,967 23,623 Others 52 154 480 Total property and equipment expenditures $ 174,766 $ 92,282 $ 90,964 As of December 31, 2017 2016 Total assets: Brazil $ 786,897 $ 726,250 Caribbean division 416,541 355,568 NOLAD 271,558 247,546 SLAD 297,581 246,344 Total reportable segments 1,772,577 1,575,708 Corporate and others (i) 172,400 82,822 Purchase price allocation (ii) (141,234 ) (153,477 ) Total assets $ 1,803,743 $ 1,505,053 (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, 2017 and 2016, corporate assets primarily include corporate cash and cash equivalents. (ii) Relates to the purchase price allocation adjustment made at corporate level, which reduces the total assets and the corresponding depreciation and amortization |
Venezuelan Operations (Tables)
Venezuelan Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Venezuelan Operations [Abstract] | |
Schedule of Foreign Currency Translation | As a consequence, the Company reassessed the exchange rate used for remeasurement purposes as follows: Effects of exchange rate change Period Exchange rate System applied Exchange rate at System date change (VEF per US dollar) Write down of inventories (i) Impairment of long-lived assets (i) Foreign currency exchange loss From February 8, 2013 to February 28, 2014 Official exchange rate 6.30 — — 15,379 From March 1, 2014 to May 31, 2014 SICAD 11.80 7,611 — 19,697 From June 1, 2014 to February 28, 2015 SICAD II 49.98 9,937 45,186 38,963 From March 1, 2015 to March 9, 2016 SIMADI 177.00 3,250 7,804 8,046 From March 10, 2016 to May 18, 2017 DICOM 215.34 401 — 117 From May 19, 2017 up to date DICOM II 2,010.00 1,375 — 2,554 (i) Presented within Other operating income (expenses), net (ii) Presented within Foreign currency exchange results |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | The following table sets forth information with respect to the components of “Accumulated other comprehensive loss” as of December 31, 2017 and their related activity during the three-years in the period then ended: Accumulated other comprehensive loss (continued) Foreign currency translation Cash flow hedges Post-employment benefits (i) Total Accumulated other comprehensive loss Balances at December 31, 2014 $ (302,889 ) $ 1,598 $ (1,176 ) $ (302,467 ) Other comprehensive (loss) income before reclassifications (128,301 ) 20,487 (213 ) (108,027 ) Net (gain) loss reclassified from accumulated other comprehensive loss to consolidated statement of income — (14,209 ) 440 (13,769 ) Net current-period other comprehensive (loss) income (128,301 ) 6,278 227 (121,796 ) Balances at December 31, 2015 (431,190 ) 7,876 (949 ) (424,263 ) Other comprehensive loss before reclassifications (9,891 ) (18,813 ) (310 ) (29,014 ) Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income — 11,242 386 11,628 Net current-period other comprehensive (loss) income (9,891 ) (7,571 ) 76 (17,386 ) Balances at December 31, 2016 (441,081 ) 305 (873 ) (441,649 ) Other comprehensive income (loss) before reclassifications 4,800 6,462 (938 ) 10,324 Net loss reclassified from accumulated other comprehensive loss to consolidated statement income — 1,592 386 1,978 Net current-period other comprehensive income (loss) 4,800 8,054 (552 ) 12,302 Balances at December 31, 2017 $ (436,281 ) $ 8,359 $ (1,425 ) $ (429,347 ) (i) Mainly related to a post-employment benefit in Venezuela established by the Organic Law of Labor and Workers (known as “LOTTT”, its Spanish acronym) in 2012. This benefit provides a payment of 30 days of salary per year of employment tenure based on the last wage earned to all workers who leave the job for any reason. The term of service to calculate the post-employment payment of active workers run retroactively since June 19, 1997. The Company obtains an actuarial valuation to measure the post-employment benefit obligation, using the projected unit credit actuarial method and measures this benefit in accordance with ASC 715-30, similar to pension benefit. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net (loss) income per common share attributable to Arcos Dorados Holdings Inc. for all years presented: For the fiscal years ended December 31, 2017 2016 2015 Net income (loss) attributable to Arcos Dorados Holdings Inc. available to common shareholders $ 129,166 $ 78,810 $ (51,633 ) Weighted-average number of common shares outstanding - Basic 210,935,685 210,646,955 210,436,232 Incremental shares from assumed exercise of stock options (i) — — — Incremental shares from vesting of restricted share units 1,060,726 377,653 160,122 Weighted-average number of common shares outstanding - Diluted 211,996,411 211,024,608 210,596,354 Basic net income (loss) per common share attributable to Arcos Dorados Holdings Inc. $ 0.61 $ 0.37 $ (0.25 ) Diluted net income (loss) per common share attributable to Arcos Dorados Holdings Inc. $ 0.61 $ 0.37 $ (0.25 ) (i) Options to purchase shares of common stock were outstanding during fiscal years 2017 , 2016 and 2015 . See Note 17 for details. These options were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary Of Related Party Outstanding Balances | The following table summarizes the outstanding balances between the Company and the Axionlog Business as of December 31, 2017 and 2016 : As of December 31, 2017 2016 Accounts and notes receivable $ 1,097 $ — Other receivables 979 1,050 Miscellaneous 3,126 3,612 Accounts payable (11,727 ) (10,355 ) |
Summary Of Related Party Transactions | The following table summarizes the transactions between the Company and the Axionlog Business for the fiscal years ended December 31, 2017 , 2016 and 2015 : Fiscal years ended December 31, 2017 2016 2015 Food and paper (i) $ (173,387 ) $ (163,536 ) $ (164,882 ) Occupancy and other operating expenses (4,281 ) (3,882 ) (2,499 ) Net interest income — 47 461 (i) Includes $48,773 of distribution fees and $124,614 of suppliers purchases managed through the Axionlog Business for the fiscal year ended December 31, 2017 ; $40,714 and $122,822 , respectively, for the fiscal year ended December 31, 2016 ; and $44,170 and $120,712 , respectively, for the fiscal year ended December 31, 2015 . |
Valuation and Qualifying Acco59
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts | The following table presents the information required by Rule 12-09 of Regulation S-X in regards to valuation and qualifying accounts for each of the periods presented: Description Balance at beginning of period Additions (i) Deductions (ii) Translation Balance at end of period Year ended December 31, 2017: Deducted from assets accounts: Allowance for doubtful accounts (iii) $ 16,367 $ 6,386 $ (1,244 ) $ (42 ) $ 21,467 Valuation allowance on deferred tax assets 290,620 8,382 (27,515 ) 164 271,651 Reported as liabilities: Provision for contingencies 18,112 36,160 (26,137 ) (179 ) 27,956 Total $ 325,099 $ 50,928 $ (54,896 ) $ (57 ) $ 321,074 Year ended December 31, 2016: Deducted from assets accounts: Allowance for doubtful accounts $ 12,768 $ 5,367 $ (1,647 ) $ (121 ) $ 16,367 Valuation allowance on deferred tax assets 297,891 36,778 (24,967 ) (19,082 ) 290,620 Reported as liabilities: Provision for contingencies 20,578 28,577 (32,049 ) 1,006 18,112 Total $ 331,237 $ 70,722 $ (58,663 ) $ (18,197 ) $ 325,099 Year ended December 31, 2015: Deducted from assets accounts: Allowance for doubtful accounts $ 9,373 $ 6,656 $ (2,615 ) $ (646 ) $ 12,768 Valuation allowance on deferred tax assets 301,012 49,879 (401 ) (52,599 ) 297,891 Reported as liabilities: Provision for contingencies 12,204 37,729 (24,858 ) (4,497 ) 20,578 Total $ 322,589 $ 94,264 $ (27,874 ) $ (57,742 ) $ 331,237 (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 2017 , 2016 and 2015 – Relate to the accrual of $36,160 , $28,577 and $37,729 , 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 and reclassifications amounting to $25,427 and $710 , respectively, during fiscal year 2017 ; $20,554 and $11,495 , respectively, during fiscal year 2016 ; and $23,415 and $1,443 , respectively, during fiscal year 2015 ; as discussed in Note 18. (iii) At December 31, 2017, presented in the consolidated balance sheet as follow: $19,791 within Accounts and notes receivable, net and $1,676 within Other receivables. |
Organization and Nature of Bu60
Organization and Nature of Business (Details) - territory | 12 Months Ended | |
Dec. 31, 2017 | Jul. 20, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Franchise agreement term | 10 years | |
Renewed franchise agreement term | 10 years | |
Number of territories under renewed franchise agreement | 3 | |
Number of territories with operations | 20 | |
Arcos Dorados B.V. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest percentage | 100.00% |
Basis of Presentation and Pri61
Basis of Presentation and Principles of Consolidation (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Occupancy and Other Operating Expenses [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Prior period reclassification adjustment | $ 44,415 |
Payroll and Employee Benefits [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Prior period reclassification adjustment | $ (44,415) |
Summary of Significant Accoun62
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Value added tax and other tax receivable | $ 16,215 | $ 15,089 | ||
Impairment of long-lived assets | 8,563 | $ 7,804 | ||
Tangible asset impairment charges | 17,564 | 7,697 | 12,343 | |
Accounts payable for outsourcing | 2,117 | 2,241 | ||
Sale of properties, equipment and restaurant businesses | 107,867 | 71,712 | 14,332 | |
Advances related to pending sales of property and equipment and restaurant businesses | 34,341 | |||
Company-Operated Franchise [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Advertising expense | 130,277 | 117,250 | 122,920 | |
Franchisee [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Advertising expense | $ 46,536 | $ 36,374 | $ 35,131 | |
Internal Used Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years | |||
Minimum [Member] | Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 3 years | |||
Maximum [Member] | Building [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 40 years | |||
Maximum [Member] | Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 12 years | |||
Forecast [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred income | $ 5,000 |
Summary of Significant Accoun63
Summary of Significant Accounting Policies (Goodwill Impairment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Impairment of goodwill | $ 200 | $ 5,045 | $ 679 |
Mexico [Member] | |||
Goodwill [Line Items] | |||
Impairment of goodwill | $ 200 | ||
Argentina [Member] | |||
Goodwill [Line Items] | |||
Impairment of goodwill | $ 5,045 | ||
Puerto Rico [Member] | |||
Goodwill [Line Items] | |||
Impairment of goodwill | $ 679 |
Acquisition of Businesses (Narr
Acquisition of Businesses (Narrative) (Details) $ in Thousands | Aug. 03, 2007USD ($) | Dec. 31, 2017period |
Business Acquisition [Line Items] | ||
Length of Master franchise agreement | 20 years | |
Number of subsequent payment periods | period | 2 | |
Latin America And Caribbean McDonald's [Member] | ||
Business Acquisition [Line Items] | ||
Final purchase price | $ | $ 698,080 | |
First Ten Years [Member] | ||
Business Acquisition [Line Items] | ||
First franchise fee payment period | 10 years | |
Royalty fee, percentage | 5.00% | |
Next Five Years [Member] | ||
Business Acquisition [Line Items] | ||
Royalty fee, percentage | 6.00% | |
Subsequent period of the agreement | 5 years | |
Last Five Years [Member] | ||
Business Acquisition [Line Items] | ||
Royalty fee, percentage | 7.00% | |
Subsequent period of the agreement | 5 years |
Acquisition of Businesses (Sche
Acquisition of Businesses (Schedule of Non-Significant Acquisitions) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,078 | $ 7,119 | |
Franchised Restaurants [Member] | |||
Business Acquisition [Line Items] | |||
Property and equipment | 429 | 0 | $ 936 |
Identifiable intangible assets | 5,346 | 0 | 853 |
Goodwill | 200 | 0 | 1,621 |
Assumed debt | 0 | 0 | (206) |
Gain on purchase of franchised restaurants | (4,808) | 0 | 0 |
Purchase price | 1,167 | 0 | 3,204 |
Restaurants sold in exchange | (261) | 0 | 0 |
Settlement of franchise receivables | (36) | 0 | (2,113) |
Net cash paid at acquisition date | $ 870 | $ 0 | $ 1,091 |
Accounts and Notes Receivable66
Accounts and Notes Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Receivables from franchisees | $ 67,115 | $ 45,700 |
Debit and credit card receivables | 48,610 | 40,652 |
Meal voucher receivables | 11,683 | 11,024 |
Notes receivable | 3,685 | 2,230 |
Allowance for doubtful accounts | (19,791) | (16,367) |
Accounts and notes receivable, Net | $ 111,302 | $ 83,239 |
Prepaid Expenses and Other Cu67
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid taxes | $ 48,076 | $ 52,407 |
Prepaid expenses | 27,478 | 18,753 |
Promotion items and prepayments | 17,683 | 12,853 |
Other | 967 | 3,630 |
Prepaid expense and other assets, Total | $ 94,204 | $ 87,643 |
Miscellaneous (Details)
Miscellaneous (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Judicial deposits | $ 44,854 | $ 35,652 |
Tax credits | 22,402 | 21,060 |
Prepaid property and equipment | 10,317 | 13,279 |
Notes receivable | 4,406 | 4,509 |
Rent deposits | 3,273 | 4,471 |
Other | 13,039 | 10,690 |
Miscellaneous | $ 98,291 | $ 89,661 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 1,434,830 | $ 1,314,546 | |
Total accumulated depreciation | (544,094) | (466,580) | |
Property, Plant and Equipment, Net, Total | 890,736 | 847,966 | |
Total depreciation expense | 89,085 | 83,993 | $ 96,383 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 158,634 | 145,417 | |
Buildings And Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 633,747 | 605,156 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 642,449 | $ 563,973 |
Net Intangible Assets and Goo70
Net Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | $ 103,896 | $ 92,167 | |
Total accumulated amortization | (63,245) | (56,242) | |
Subtotal | 40,651 | 35,925 | |
Goodwill | 7,078 | 7,119 | |
Net intangible assets including goodwill | 47,729 | 43,044 | |
Total amortization expense | 10,297 | 8,976 | $ 14,332 |
Estimated aggregate amortization expense for 2017 | 16,162 | ||
Estimated aggregate amortization expense for 2018 | 11,402 | ||
Estimated aggregate amortization expense for 2019 | 4,737 | ||
Estimated aggregate amortization expense for 2020 | 1,635 | ||
Estimated aggregate amortization expense for 2021 | 1,239 | ||
Estimated aggregate amortization expense thereafter | 5,476 | ||
Brazil [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 5,013 | 5,100 | |
Chile [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,209 | 1,110 | |
Argentina [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 350 | 411 | |
Ecuador [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 273 | 273 | |
Peru [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 174 | 167 | |
Colombia [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 59 | 58 | |
Computer Software Cost [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | 72,717 | 66,969 | |
Initial Franchise Fees [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | 15,572 | 15,039 | |
Reacquired Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | 13,667 | 8,219 | |
Letter of Credit Fees [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | 940 | 940 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total cost | $ 1,000 | $ 1,000 |
Accrued Payroll and Other Lia71
Accrued Payroll and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current: | ||
Accrued payroll | $ 97,995 | $ 95,754 |
Advances related to pending sales of property and equipment and restaurant businesses | 0 | 34,341 |
Accrued expenses | 13,574 | 9,492 |
Other liabilities | 7,519 | 4,855 |
Accrued payroll and other liabilities, Current | 119,088 | 144,442 |
Non-current: | ||
Deferred rent | 15,198 | 13,782 |
Other liabilities | 14,168 | 9,978 |
Accrued payroll and other liabilities | $ 29,366 | $ 23,760 |
Short-Term Debt (Narrative) (De
Short-Term Debt (Narrative) (Details) | Nov. 01, 2017USD ($) | Aug. 01, 2017USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Line of Credit Facility [Line Items] | ||||||||||||||
Debt to EBITDA ratio (greater than) | 3 | |||||||||||||
Ratio of net indebtedness to EBITDA, debt covenant | 3.80 | 4.02 | 4.05 | 4.12 | 4.21 | 4.08 | 4.40 | 4.80 | 4.40 | 4.56 | 4.61 | 4.62 | ||
Revolving Credit Facility [Member] | Bank Of America, N.A. [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing amount | $ 25,000,000 | |||||||||||||
Revolving Credit Facility [Member] | JPMorgan Chase Bank N.A. [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing amount | $ 25,000,000 | |||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | Bank Of America, N.A. [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.50% | |||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | JPMorgan Chase Bank N.A. [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.25% | |||||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||
Ratio of net indebtedness to EBITDA, debt covenant | 0.75 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2016 | Sep. 27, 2013 |
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 4,539 | $ 4,704 | ||
Other long-term borrowings | 22,900 | 25,553 | ||
Subtotal | 640,508 | 591,286 | ||
Fair value adjustment related to Secured loan agreement | 0 | (2,877) | ||
Deferred financing costs | (4,641) | (5,611) | ||
Total | 633,501 | 579,679 | ||
Current portion of long-term debt | 4,359 | 28,099 | ||
Long-term debt, excluding current portion | 629,142 | 551,580 | ||
2027 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 265,000 | 0 | ||
Deferred financing costs | $ (3,001) | |||
2023 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 348,069 | 393,767 | ||
Discount on Notes | (3,804) | (5,029) | ||
Premium on Notes | 1,438 | 1,910 | ||
Deferred financing costs | $ (3,313) | |||
Secured Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 167,262 |
Long-Term Debt (Principal Outst
Long-Term Debt (Principal Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Principal outstanding | $ 640,508 | |
2027 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate (as a percentage) | 5.875% | |
Principal outstanding | $ 265,000 | $ 0 |
2023 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate (as a percentage) | 6.625% | |
Principal outstanding | $ 348,069 | $ 393,767 |
Long-Term Debt (Annual Interest
Long-Term Debt (Annual Interest Rate) (Details) - Subsidiaries [Member] - Secured Loan Agreement [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Citibank N.A. [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2.439% |
Itau BBA International plc [Member] | |
Debt Instrument [Line Items] | |
Annual interest rate (as a percent) | 5.26% |
Banco Santander (Brasil) S.A., Cayman Islands Branch [Member] | |
Debt Instrument [Line Items] | |
Annual interest rate (as a percent) | 4.7863% |
Bank of America N.A. [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 4.00% |
JPMorgan Chase Bank N.A. [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 3.92% |
Long-Term Debt (Additional Requ
Long-Term Debt (Additional Required Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
2027 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Expense | $ 11,547 | $ 0 | $ 0 |
Amortization of financing costs | 224 | 0 | 0 |
Amortization of Premium and Amortization of (Discount) | 0 | 0 | 0 |
2023 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Expense | 23,885 | 28,516 | 31,387 |
Amortization of financing costs | 610 | 943 | 439 |
Amortization of Premium and Amortization of (Discount) | (752) | (1,157) | (515) |
2016 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest Expense | 0 | 6,668 | 20,991 |
Amortization of financing costs | 0 | 391 | 805 |
Amortization of Premium and Amortization of (Discount) | 0 | (266) | (496) |
Subsidiaries [Member] | Secured Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Interest Expense | 2,570 | 6,519 | 0 |
Amortization of financing costs | 3,251 | 814 | 0 |
Amortization of Premium and Amortization of (Discount) | $ (2,249) | $ 0 | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) R$ in Thousands | Apr. 11, 2017USD ($) | Mar. 29, 2017USD ($) | Mar. 16, 2017USD ($) | Jul. 13, 2016 | Jun. 14, 2016USD ($) | Jun. 01, 2016USD ($) | May 05, 2016 | Apr. 21, 2016 | Mar. 29, 2016BRL (R$)instrumentlender | Jan. 29, 2016 | Nov. 30, 2015 | Nov. 25, 2015 | Apr. 24, 2012BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 31, 2017instrument | Apr. 30, 2017USD ($) | Mar. 29, 2016USD ($)instrumentlender | Sep. 27, 2013USD ($) | Jul. 13, 2011USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt issuance costs | $ 4,641,000 | $ 5,611,000 | |||||||||||||||||||
2016 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Proceeds from issuance of long-term debt | R$ | R$ 675000 | ||||||||||||||||||||
Debt issuance costs | $ 3,699,000 | ||||||||||||||||||||
Redemption price (as a percent) | 100.00% | 97.00% | 100.00% | 97.75% | 93.75% | 93.75% | |||||||||||||||
Interest expense | 0 | 6,668,000 | $ 20,991,000 | ||||||||||||||||||
2023 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt issuance costs | $ 3,313,000 | ||||||||||||||||||||
Aggregate principal amount issued | $ 473,800,000 | ||||||||||||||||||||
Redemption price, principal amount redeemed | $ 80,000,000 | $ 80,000,000 | |||||||||||||||||||
Redemption price (as a percent) | 104.00% | 101.00% | 98.00% | 107.00% | |||||||||||||||||
Redemption price, percentage of principal amount redeemed | 11.60% | 16.90% | |||||||||||||||||||
Redemption price, amount | $ 48,885,000 | $ 80,800,000 | |||||||||||||||||||
Early tender payment | $ 3,187,000 | $ 800,000 | |||||||||||||||||||
2023 Senior Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest expense | 23,885,000 | 28,516,000 | 31,387,000 | ||||||||||||||||||
2027 Notes [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt issuance costs | $ 3,001,000 | ||||||||||||||||||||
Aggregate principal amount issued | $ 265,000,000 | ||||||||||||||||||||
Interest expense | 11,547,000 | 0 | 0 | ||||||||||||||||||
Secured Loan Agreement [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Repayment of secured loan agreement | $ 169,700,000 | ||||||||||||||||||||
Secured Loan Agreement [Member] | Subsidiaries [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt issuance costs | $ 3,243,000 | ||||||||||||||||||||
Long-term debt | R$ 613850 | $ 167,262,000 | |||||||||||||||||||
Number of lenders | lender | 5 | 5 | |||||||||||||||||||
Loss on derivative | 2,570,000 | 6,519,000 | |||||||||||||||||||
Interest expense | 2,570,000 | 6,519,000 | $ 0 | ||||||||||||||||||
Cross-Currency Interest Rate Swaps [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of instruments held | instrument | 3 | ||||||||||||||||||||
Cross-Currency Interest Rate Swaps [Member] | Secured Loan Agreement [Member] | Subsidiaries [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Number of instruments held | instrument | 5 | 5 | |||||||||||||||||||
Loss on derivative | 6,921,000 | 18,177,000 | |||||||||||||||||||
Interest expense | $ 9,491,000 | $ 24,696,000 | |||||||||||||||||||
CDI [Member] | Cross-Currency Interest Rate Swaps [Member] | Secured Loan Agreement [Member] | Subsidiaries [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis point spread on variable rate (as a percent) | 4.50% | 4.50% |
Long-Term Debt (Debt Repurchase
Long-Term Debt (Debt Repurchases) (Details) - 2016 Notes [Member] R$ in Thousands, $ in Thousands | Jul. 13, 2016BRL (R$) | Jul. 13, 2016USD ($) | May 05, 2016BRL (R$) | May 05, 2016USD ($) | Apr. 21, 2016BRL (R$) | Apr. 21, 2016USD ($) | Jan. 29, 2016BRL (R$) | Jan. 29, 2016USD ($) | Nov. 30, 2015BRL (R$) | Nov. 30, 2015USD ($) | Nov. 25, 2015BRL (R$) | Nov. 25, 2015USD ($) | Jul. 13, 2016BRL (R$) | Jul. 13, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Redemption price (as a percent) | 100.00% | 100.00% | 97.00% | 97.00% | 100.00% | 100.00% | 97.75% | 97.75% | 93.75% | 93.75% | 93.75% | 93.75% | ||
Redemption amount | R$ 200991 | $ 60,965 | R$ 4025 | $ 1,106 | R$ 421765 | $ 118,797 | R$ 1180 | $ 288 | R$ 7039 | $ 1,715 | R$ 40000 | $ 9,995 | R$ 675000 | $ 192,866 |
Long-Term Debt (Schedule of Fut
Long-Term Debt (Schedule of Future Payments Related to Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2018, Principal | $ 4,359 | |
2018, Interest | 40,920 | |
2018, Principal and Interest Total | 45,279 | |
2019, Principal | 4,404 | |
2019, Interest | 40,557 | |
2019, Principal and Interest Total | 44,961 | |
2020, Principal | 3,895 | |
2020, Interest | 40,217 | |
2020, Principal and Interest Total | 44,112 | |
2021, Principal | 3,831 | |
2021, Interest | 39,862 | |
2021, Principal and Interest Total | 43,693 | |
2022, Principal | 4,040 | |
2022, Interest | 39,468 | |
2022, Principal and Interest Total | 43,508 | |
Thereafter, Principal | 619,979 | |
Thereafter, Interest | 94,148 | |
Thereafter, Principal and Interest Total | 714,127 | |
Total payments, Principal | 640,508 | |
Total payments, Interest | 295,172 | |
Total payments, Principal and future interest expense | 935,680 | |
Interest | (295,172) | |
Deferred financing costs | (4,641) | $ (5,611) |
Long-term debt | 633,501 | $ 579,679 |
2023 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Discount on Notes | (3,804) | |
Premium on Notes | $ 1,438 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Thousands, R$ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2017BRL (R$)instrument | Apr. 30, 2017USD ($)instrument | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 31, 2017instrument | Mar. 29, 2016BRL (R$)instrument | Mar. 29, 2016USD ($)instrument | |
Derivative [Line Items] | |||||||||
Interest | $ 53,206 | $ 76,605 | $ 64,229 | ||||||
Forward Contracts [Member] | |||||||||
Derivative [Line Items] | |||||||||
Net collections (payments) to derivative instrument hedges | (1,236) | (1,307) | 2,306 | ||||||
Cross-Currency Interest Rate Swaps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Number of instruments held | instrument | 3 | ||||||||
Percentage of principal and interest collections hedged (as a percent) | 73.00% | ||||||||
Interest | 6,163 | 2,795 | |||||||
Call Spread [Member] | |||||||||
Derivative [Line Items] | |||||||||
Number of instruments held | instrument | 2 | 2 | |||||||
Coupon-only Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Interest | 1,390 | ||||||||
Total Equity Return Swap [Member] | Class A Shares Of Common Stock [Member] | |||||||||
Derivative [Line Items] | |||||||||
Settlement payment for share reductions | $ 9,681 | ||||||||
JP Morgan Chase Bank, N.A. [Member] | Cross-Currency Interest Rate Swaps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Payments for derivative instrument | 2,689 | ||||||||
Deferred amount in accumulated other comprehensive income | 677 | ||||||||
Derivatives Designated As Hedging Instruments [Member] | Forward Contracts [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount outstanding | 24,397 | ||||||||
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||||||||
Derivative [Line Items] | |||||||||
Payments for derivative instrument | 1,156 | ||||||||
Subsidiaries [Member] | Cross-Currency Interest Rate Swaps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Percentage of principal and interest collections hedged (as a percent) | 50.00% | 50.00% | |||||||
Subsidiaries [Member] | Call Spread [Member] | |||||||||
Derivative [Line Items] | |||||||||
Percentage of principal and interest collections hedged (as a percent) | 50.00% | 50.00% | |||||||
Subsidiaries [Member] | Coupon-only Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Percentage of principal and interest collections hedged (as a percent) | 50.00% | 50.00% | |||||||
Subsidiaries [Member] | Secured Loan Agreement [Member] | |||||||||
Derivative [Line Items] | |||||||||
Loss on derivative | 2,570 | 6,519 | |||||||
Interest expense | 2,570 | 6,519 | $ 0 | ||||||
Subsidiaries [Member] | Secured Loan Agreement [Member] | Cross-Currency Interest Rate Swaps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Number of instruments held | instrument | 5 | 5 | |||||||
Interest | $ 900 | ||||||||
Notional amount of derivative | R$ 613.9 | $ 167,300 | |||||||
Payments for derivative instrument | R$ 122.7 | $ 39,100 | |||||||
Accrued interest | 6,921 | 18,177 | |||||||
Loss on derivative | 6,921 | 18,177 | |||||||
Interest expense | $ 9,491 | $ 24,696 | |||||||
Subsidiaries [Member] | CDI [Member] | Secured Loan Agreement [Member] | Cross-Currency Interest Rate Swaps [Member] | |||||||||
Derivative [Line Items] | |||||||||
Basis point spread on variable rate (as a percent) | 4.50% | 4.50% |
Derivative Instruments (Schedul
Derivative Instruments (Schedule of Derivative Instruments, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | |||
Derivative instruments | $ 35,069 | $ 0 | |
Derivatives Designated As Hedging Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | 11,833 | (30,591) | |
Derivatives Designated As Hedging Instruments [Member] | Cross-Currency Interest Rate Swaps [Member] | Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative fair value of non-current asset | 7,506 | 10,615 | |
Derivative fair value of current liability | 15,522 | 19,876 | |
Cash Flow Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Forward Contracts [Member] | Other Receivables [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | 309 | $ 0 | |
Cash Flow Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Forward Contracts [Member] | Accrued Payroll and Other Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | (517) | (100) | |
Cash Flow Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Cross-Currency Interest Rate Swaps [Member] | Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | 7,835 | (3,274) | |
Cash Flow Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Call Spread [Member] | Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | (10,908) | 0 | |
Cash Flow Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Coupon-only Swap [Member] | Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | 15,114 | 0 | |
Fair Value Hedging [Member] | Derivatives Designated As Hedging Instruments [Member] | Cross-Currency Interest Rate Swaps [Member] | Derivative Instruments [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets (Liabilities) Derivative, Fair Value | $ 0 | $ (27,217) |
Derivative Instruments (Cross-c
Derivative Instruments (Cross-currency Interest Rate Swap) (Details) - Cross-Currency Interest Rate Swaps [Member] R$ in Thousands, $ in Thousands | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) |
Cross-Currency Interest Rate Swap Originated November 2013 [Member] | JPMorgan Chase Bank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 108000 | |
Cross-Currency Interest Rate Swap Originated November 2013 [Member] | JPMorgan Chase Bank N.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 35,400 | |
Interest rate (as a percent) | 4.38% | 4.38% |
Cross-Currency Interest Rate Swap Originated November 2013 [Member] | Brazil Real [Member] | JPMorgan Chase Bank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 13.00% | 13.00% |
Cross-Currency Interest Rate Swap Originated June 2017 [Member] | JPMorgan Chase Bank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 98670 | |
Cross-Currency Interest Rate Swap Originated June 2017 [Member] | JPMorgan Chase Bank N.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 30,000 | |
Interest rate (as a percent) | 6.02% | 6.02% |
Cross-Currency Interest Rate Swap Originated June 2017 [Member] | Brazil Real [Member] | JPMorgan Chase Bank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 13.00% | 13.00% |
Cross-Currency Interest Rate Swap Originated July 2017 [Member] | Citibank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 94200 | |
Cross-Currency Interest Rate Swap Originated July 2017 [Member] | Citibank N.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 30,000 | |
Interest rate (as a percent) | 6.29% | 6.29% |
Cross-Currency Interest Rate Swap Originated July 2017 [Member] | Brazil Real [Member] | Citibank N.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 13.00% | 13.00% |
Subsidiaries [Member] | Banco Santander S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 155500 | |
Subsidiaries [Member] | Banco Santander S.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 50,000 | |
Interest rate (as a percent) | 6.91% | 6.91% |
Subsidiaries [Member] | Brazil Real [Member] | Banco Santander S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 13.77% | 13.77% |
Subsidiaries [Member] | Cross-Currency Interest Rate Swap Originated November 2013 [Member] | Bank of America Merrill Lynch Banco Multiplo S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 156250 | |
Subsidiaries [Member] | Cross-Currency Interest Rate Swap Originated November 2013 [Member] | Bank of America Merrill Lynch Banco Multiplo S.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 50,000 | |
Interest rate (as a percent) | 6.91% | 6.91% |
Subsidiaries [Member] | Cross-Currency Interest Rate Swap Originated November 2013 [Member] | Brazil Real [Member] | Bank of America Merrill Lynch Banco Multiplo S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 13.64% | 13.64% |
Derivative Instruments (Call Sp
Derivative Instruments (Call Spread) (Details) - Subsidiaries [Member] - Call Spread [Member] $ in Millions | Dec. 31, 2017USD ($)$ / option |
Citibank S.A. [Member] | |
Derivative [Line Items] | |
Notional Amount | $ | $ 50 |
Citibank S.A. [Member] | Written [Member] | |
Derivative [Line Items] | |
Strike price (in usd per option) | 4.49 |
Citibank S.A. [Member] | Bought [Member] | |
Derivative [Line Items] | |
Strike price (in usd per option) | 3.11 |
JP Morgan S.A. [Member] | |
Derivative [Line Items] | |
Notional Amount | $ | $ 50 |
JP Morgan S.A. [Member] | Written [Member] | |
Derivative [Line Items] | |
Strike price (in usd per option) | 5.20 |
JP Morgan S.A. [Member] | Bought [Member] | |
Derivative [Line Items] | |
Strike price (in usd per option) | 3.13 |
Derivative Instruments (Coupon-
Derivative Instruments (Coupon-only Swap) (Details) - Subsidiaries [Member] - Coupon-only Swap [Member] R$ in Thousands, $ in Thousands | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) |
Citibank S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 155500 | |
Citibank S.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 50,000 | |
Interest rate (as a percent) | 6.91% | 6.91% |
JP Morgan S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | R$ | R$ 156250 | |
JP Morgan S.A. [Member] | Receivable [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ | $ 50,000 | |
Interest rate (as a percent) | 6.91% | 6.91% |
Brazil Real [Member] | Citibank S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 11.08% | 11.08% |
Brazil Real [Member] | JP Morgan S.A. [Member] | Payable [Member] | ||
Derivative [Line Items] | ||
Interest rate (as a percent) | 11.18% | 11.18% |
Derivative Instruments (Sched85
Derivative Instruments (Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives in Cash Flow Hedging, (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) | $ 11,933 | $ (18,813) | $ 20,487 |
Derivatives in Cash Flow Hedging, Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) | 59 | 11,242 | (14,209) |
Derivatives in Cash Flow Hedging, Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | (101) | 0 | (2,650) |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Income (loss) adjustment to foreign exchange | 7,532 | (6,997) | 13,595 |
Gain (loss) adjustment to net interest expense | (9,497) | (2,938) | (1,692) |
Forward Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives in Cash Flow Hedging, (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) | (1,344) | (1,861) | 1,903 |
Derivatives in Cash Flow Hedging, Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) | 1,236 | 1,307 | (2,306) |
Derivatives in Cash Flow Hedging, Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | 0 | 0 |
Cross-Currency Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives in Cash Flow Hedging, (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) | 5,828 | (16,952) | 18,584 |
Derivatives in Cash Flow Hedging, Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) | 1,965 | 9,935 | (11,903) |
Derivatives in Cash Flow Hedging, Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | 0 | (2,650) |
Call Spread [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives in Cash Flow Hedging, (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) | 21,047 | 0 | 0 |
Derivatives in Cash Flow Hedging, Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) | 2,791 | 0 | 0 |
Derivatives in Cash Flow Hedging, Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | 0 | 0 |
Coupon-only Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives in Cash Flow Hedging, (Loss) Gain Recognized in Accumulated OCI on Derivative (Effective Portion) | (13,598) | 0 | 0 |
Derivatives in Cash Flow Hedging, Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion) | (5,933) | 0 | 0 |
Derivatives in Cash Flow Hedging, Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | $ (101) | $ 0 | $ 0 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value Hedges) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in Income on hedging derivatives | $ (7,065) | $ (3,065) | $ (2,894) |
Cross-Currency Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in Income on hedging derivatives | (9,599) | (5,814) | |
Gain recognized in Income on hedging items | 4,118 | 2,877 | |
Loss on fair value hedge ineffectiveness | $ 5,481 | $ 2,937 |
Derivative Instruments (Sched87
Derivative Instruments (Schedule of Derivative Instruments, Effect on Income and Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative Not Designated as Hedging Instruments, (Loss) Gain Recognized in Income on Derivative instruments | $ 0 | $ (127) | $ (2,440) |
Others [Member] | |||
Derivative [Line Items] | |||
Derivative Not Designated as Hedging Instruments, (Loss) Gain Recognized in Income on Derivative instruments | 0 | (127) | (244) |
General and Administrative Expense [Member] | Total Equity Return Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Not Designated as Hedging Instruments, (Loss) Gain Recognized in Income on Derivative instruments | 0 | 0 | (1,743) |
Loss excluded from Adjusted EBITDA | 1,252 | ||
Net Interest Expense [Member] | Total Equity Return Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Not Designated as Hedging Instruments, (Loss) Gain Recognized in Income on Derivative instruments | $ 0 | $ 0 | $ (453) |
Operating Lease Agreements (Nar
Operating Lease Agreements (Narrative) (Details) $ in Thousands | Dec. 22, 2017USD ($) | Mar. 31, 2010USD ($) | Dec. 31, 2017USD ($)location | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | ||||
Number of locations the Company as lessee | location | 2,743 | |||
Lease term of aircraft operating lease agreement | 8 years | |||
Periodic payments for aircraft operating lease agreement | $ 690 | |||
Fixed amount of early purchase option | 26,685 | |||
Cash deposit as collateral for obligations assumed under the agreement | $ 5,325 | $ 2,500 | $ 5,325 | |
Aircraft operating lease renewal term | 10 years | |||
Periodic payments for aircraft renewal operating lease agreement | $ 442 | |||
Collateral deposit for aircraft operating lease | $ 2,500 | |||
Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Lease term for most restaurants | 10 years | |||
Maximum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Lease term for most restaurants | 20 years |
Operating Lease Agreements (Sch
Operating Lease Agreements (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Line Items] | |
2,018 | $ 148,485 |
2,019 | 128,881 |
2,020 | 113,767 |
2,021 | 97,413 |
2,022 | 79,068 |
Thereafter | 364,983 |
Total minimum payment | 932,597 |
Restaurants [Member] | |
Property, Plant and Equipment [Line Items] | |
2,018 | 141,641 |
2,019 | 124,242 |
2,020 | 109,389 |
2,021 | 94,080 |
2,022 | 76,339 |
Thereafter | 350,413 |
Total minimum payment | 896,104 |
Others [Member] | |
Property, Plant and Equipment [Line Items] | |
2,018 | 6,844 |
2,019 | 4,639 |
2,020 | 4,378 |
2,021 | 3,333 |
2,022 | 2,729 |
Thereafter | 14,570 |
Total minimum payment | $ 36,493 |
Operating Lease Agreements (S90
Operating Lease Agreements (Schedule of Details of Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Total rent expense | $ 203,216 | $ 174,453 | $ 171,613 |
Company Operated Restaurants [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Total rent expense | 148,505 | 131,142 | 135,232 |
Franchised Restaurants [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Total rent expense | $ 54,711 | $ 43,311 | $ 36,381 |
Operating Lease Agreements (S91
Operating Lease Agreements (Schedule of Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases, Operating [Abstract] | |||
Minimum rentals | $ 138,496 | $ 122,726 | $ 122,110 |
Contingent rentals based on sales | 64,720 | 51,727 | 49,503 |
Total rent expense | $ 203,216 | $ 174,453 | $ 171,613 |
Franchise Arrangements (Narrati
Franchise Arrangements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Franchise Arrangements [Line Items] | ||
Property and equipment, net | $ 890,736 | $ 847,966 |
Property And Equipment Under Franchise Arrangements [Member] | ||
Franchise Arrangements [Line Items] | ||
Property and equipment, net | 138,587 | 140,000 |
Land | $ 41,057 | $ 39,273 |
Initial Franchise Fee [Member] | ||
Franchise Arrangements [Line Items] | ||
Finite-lived intangible asset, useful life | 20 years |
Franchise Arrangements (Schedul
Franchise Arrangements (Schedule of Revenues from Franchised Restaurants) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Franchise Arrangements [Abstract] | |||
Rent | $ 155,405 | $ 123,311 | $ 121,122 |
Initial fees | 1,205 | 1,386 | 611 |
Royalty fees | 659 | 599 | 628 |
Total | 157,269 | 125,296 | 122,361 |
Initial fees paid to McDonald's Corporation | 1,417 | 1,588 | 747 |
Royalty fees paid to McDonald's Corporation | $ 64,806 | $ 50,839 | $ 49,742 |
Franchise Arrangements (Sched94
Franchise Arrangements (Schedule of Future Minimum Rent Payments Under Franchised Agreements) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Franchise Arrangements [Line Items] | |
2,018 | $ 65,318 |
2,019 | 62,054 |
2,020 | 58,397 |
2,021 | 52,809 |
2,022 | 44,838 |
Thereafter | 179,421 |
Total | 462,837 |
Owned Sites [Member] | |
Franchise Arrangements [Line Items] | |
2,018 | 5,651 |
2,019 | 5,185 |
2,020 | 4,782 |
2,021 | 4,462 |
2,022 | 3,795 |
Thereafter | 18,561 |
Total | 42,436 |
Leased Sites [Member] | |
Franchise Arrangements [Line Items] | |
2,018 | 59,667 |
2,019 | 56,869 |
2,020 | 53,615 |
2,021 | 48,347 |
2,022 | 41,043 |
Thereafter | 160,860 |
Total | $ 420,401 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Income taxes withholdings on intercompany transactions | $ 6,804 | $ 22,379 | $ 1,557 |
Net deferred tax asset | 63,722 | 68,580 | |
Non-current deferred tax assets | 74,299 | 70,446 | |
Non-current deferred tax liabilities | 10,577 | 1,866 | |
Temporary differences related to investments in foreign subsidiaries | 116,042 | ||
Gross unrecognized tax benefits | 0 | 19 | |
Non-current Assets [Member] | |||
Income Taxes [Line Items] | |||
Non-current deferred tax assets | 74,299 | 70,446 | |
Non-current Liabilities [Member] | |||
Income Taxes [Line Items] | |||
Non-current deferred tax liabilities | 10,577 | 1,866 | |
Tax Year 2009 to 2013 [Member] | |||
Income Taxes [Line Items] | |||
Estimate of possible loss | 150,000 | ||
Puerto Rico [Member] | |||
Income Taxes [Line Items] | |||
Foreign currency translation adjustment | 3,782 | 3,832 | |
Brazil, Mexico, and Colombia [Member] | |||
Income Taxes [Line Items] | |||
Income tax provision | 9,824 | ||
Venezuela [Member] | |||
Income Taxes [Line Items] | |||
Foreign currency translation adjustment | $ 698 | 5,055 | |
Brazil and Colombia [Member] | |||
Income Taxes [Line Items] | |||
Income tax provision | 14,063 | ||
2016 Notes [Member] | |||
Income Taxes [Line Items] | |||
Income taxes withholdings on intercompany transactions | $ 18,200 |
Income Taxes (Schedule of Statu
Income Taxes (Schedule of Statutory Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 35.50% | 35.40% | 32.80% |
Puerto Rico [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 20.00% | 20.00% | 20.00% |
Argentina, Martinique, French Guyana, Guadeloupe, St Croix, St Thomas, Aruba And Curacao [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Brazil And Venezuela [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 34.00% | 34.00% | 34.00% |
Colombia [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 40.00% | 40.00% | 39.00% |
Peru [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 30.00% | 28.00% | 28.00% |
Costa Rica and Mexico [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 30.00% | 30.00% | 30.00% |
Panama, Uruguay, Trinidad And Tobago And Netherlands [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Chile [Member] | |||
Income Taxes [Line Items] | |||
Statutory tax rate (as a percent) | 26.00% | 24.00% | 22.50% |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ 51,215 | $ 54,142 | $ 31,873 |
Deferred income tax expense (benefit) | 2,099 | 5,499 | (9,057) |
Income tax expense | $ 53,314 | $ 59,641 | $ 22,816 |
Income Taxes (Schedule of Com98
Income Taxes (Schedule of Components of Income Tax Expense by Applying Weighted-Average Statutory Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Pre-tax income (loss) | $ 182,813 | $ 138,629 | $ (28,553) |
Weighted-average statutory income tax rate (as a percent) | 35.50% | 35.40% | 32.80% |
Income tax expense at weighted-average statutory tax rate on pre-tax income (loss) | $ 64,901 | $ 49,030 | $ (9,353) |
Change in valuation allowance | (19,133) | (17,037) | 63,880 |
Expiration and changes in tax loss carryforwards | 14,007 | 18,291 | 0 |
Non-deductible expenses | 9,888 | 15,047 | 10,243 |
Tax benefits, including Brazil and other | (10,744) | (14,437) | (17,377) |
Income taxes withholdings on intercompany transactions | 6,804 | 22,379 | 1,557 |
Differences including exchange rate, inflation adjustment and filing differences | (11,769) | (13,001) | (29,222) |
Alternative Taxes | (363) | (114) | 2,386 |
Others | (277) | (517) | 702 |
Income tax expense | $ 53,314 | $ 59,641 | $ 22,816 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Tax loss carryforwards | $ 238,082 | $ 268,389 |
Purchase price allocation adjustment | 24,437 | 30,855 |
Property and equipment, tax inflation | 37,577 | 37,471 |
Other accrued payroll and other liabilities | 30,730 | 15,437 |
Share-based compensation | 3,850 | 4,151 |
Provision for contingencies | 2,478 | 3,449 |
Other deferred tax assets | 21,528 | 27,292 |
Other deferred tax liabilities | (10,670) | (13,649) |
Property and equipment - difference in depreciation rates | (12,639) | (14,195) |
Valuation allowance | (271,651) | (290,620) |
Net deferred tax asset | 63,722 | 68,580 |
Operating Loss Carryforwards [Line Items] | ||
Operating tax loss carryforwards | 849,911 | |
Expire Between 2015 and 2019 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 274,106 | |
Expire After 2019 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 348,370 | |
No Expiration Period [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 227,435 | |
Venezuela [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Foreign currency translation adjustment related to Venezuela's foreign currency exchange differences | 698 | 5,055 |
Puerto Rico [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Foreign currency translation adjustment related to Venezuela's foreign currency exchange differences | $ 3,782 | $ 3,832 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balances at beginning balance | $ 19 | $ 63 |
Decrease for positions taken in prior years | (19) | (44) |
Balances at ending balance | $ 0 | $ 19 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) $ in Thousands | Jun. 28, 2016employeeshares | Mar. 30, 2011 | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incremental compensation cost from modification | $ 1,409 | $ 281 | $ 741 | ||
2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of total outstanding shares of the entity immediately follow the IPO that is authorized under equity incentive plan | 2.50% | ||||
Options converted into liability award (in shares) | shares | 1,117,380 | ||||
Share-based compensation expense | 3,267 | 3,303 | 2,788 | ||
Share-based compensation related income tax benefits (expense) | 151 | 688 | (1,581) | ||
Initial Public Offering, Special Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 210 | ||||
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation related to expired stock options in Additional paid-in capital | $ 750 | 206 | $ 2,077 | ||
Stock Option [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period of stock options recognized | 3 months | ||||
Stock Option [Member] | 2011 Equity Incentive Plan Award Modification [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of employees affected by plan modification | employee | 104 | ||||
Incremental compensation cost from modification | $ 0 | $ 0 | |||
Outstanding units related to liability award (in shares) | shares | 605,821 | 933,399 | |||
Accumulated additional paid-in capital related to award modification | $ 5,865 | $ 5,820 | |||
Restricted Share Units [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period of stock options recognized | 2 years | ||||
Accrued Payroll and Other Liabilities [Member] | Stock Option [Member] | 2011 Equity Incentive Plan Award Modification [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred compensation related to award modification | $ 85 | $ 9 | |||
Second Anniversary Of Grant Date [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 40.00% | ||||
Three Years Following The Grant Date [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 20.00% | ||||
Requisite service period | 3 years | ||||
Third Anniversary of Grant Date [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 20.00% | ||||
Fourth Anniversary of Grant Date [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 20.00% | ||||
Fifth Anniversary of Grant Date [Member] | 2011 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 20.00% |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Vested and Nonvested Awards) (Details) - 2011 Equity Incentive Plan [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Stock Option [Member] | |
Vested | |
Number of units outstanding, Vested (in shares) | shares | 540,331 |
Weighted-average fair value per unit, Vested (in dollars per share) | $ / shares | $ 4.58 |
Total grant-date fair value of the plan, Vested | $ 2,476 |
Weighted-average accumulated percentage of service, Vested (as a percent) | 100.00% |
Stock-based compensation recognized in Additional paid-in capital, vested | $ 2,476 |
Non-Vested | |
Number of units outstanding, Non-vested (in shares) | shares | 94,158 |
Weighted-average fair market value per unit, Non-vested (in dollars per share) | $ / shares | $ 2.53 |
Total grant-date fair value of the plan, Non-vested | $ 238 |
Weighted-average accumulated percentage of service, Non-vested (as a percent) | 86.60% |
Stock-based compensation recognized in Additional paid-in capital, Non-vested | $ 206 |
Compensation expense not yet recognized, Non-vested | $ 32 |
Total | |
Number of units outstanding, Total (in shares) | shares | 634,489 |
Weighted-average fair market value per unit, Total (in dollars per share) | $ / shares | $ 4.28 |
Total grant-date fair value of the plan, Total | $ 2,714 |
Weighted-average accumulated percentage of service, Total (as a percent) | 98.80% |
Stock-based compensation recognized in Additional paid-in capital | $ 2,682 |
Compensation expense not yet recognized, Total | $ 32 |
Restricted Share Units [Member] | |
Total | |
Number of units outstanding, Total (in shares) | shares | 1,736,845 |
Weighted-average fair market value per unit, Total (in dollars per share) | $ / shares | $ 6.65 |
Total grant-date fair value of the plan, Total | $ 11,542 |
Weighted-average accumulated percentage of service, Total (as a percent) | 49.80% |
Stock-based compensation recognized in Additional paid-in capital | $ 5,744 |
Compensation expense not yet recognized, Total | $ 5,798 |
Share-Based Compensation (Su103
Share-Based Compensation (Summary of Plan Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Option [Member] | 2011 Equity Incentive Plan [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Number of units outstanding, beginning balance (in shares) | 776,475 | 2,025,894 | 2,550,835 |
Forfeited, (in shares) | (80,734) | (141,130) | |
Expired (in shares) | (141,986) | (51,305) | (383,811) |
Modification (in shares) | (1,117,380) | ||
Number of units outstanding, ending balance (in shares) | 634,489 | 776,475 | 2,025,894 |
Number of units exercisable, ending balance (in shares) | 540,331 | ||
Weighted-average strike price | |||
Outstanding, Weighted-average grant-date fair value, beginning balance (in dollars per share) | $ 15.55 | $ 21.03 | $ 17.62 |
Forfeitures, Weighted-average grant-date fair value, (in dollars per share) | 10.30 | 16.54 | |
Expired, Weighted-average grant-date fair value (in dollars per share) | 21.20 | 14.05 | 20.01 |
Modification, Weighted-average grant-date fair value (in dollars per share) | 19.07 | ||
Outstanding, Weighted-average grant-date fair value, ending balance (in dollars per share) | 14.28 | 15.55 | 21.03 |
Exercisable, Weighted-average grant-date fair value (in dollars per share) | 15.03 | ||
Weighted-average grant-date fair value | |||
Outstanding at beginning of period, Weighted-average grant date fair value, (in dollars per share) | 4.46 | 5.87 | 4.94 |
Forfeitures, Weighted-average fair value (in dollars per share) | 2.68 | 5.02 | |
Expired, Weighted-average grant date fair value, (in dollars per share) | 5.28 | 4.02 | 5.41 |
Modification, Weighted-average grant date fair value (in dollars per share) | 5.30 | ||
Outstanding at end of period, Weighted-average grant date fair value, (in dollars per share) | 4.28 | $ 4.46 | $ 5.87 |
Exercisable, Weighted-average grant date fair value, (in dollars per share) | $ 4.58 | ||
Restricted Share Units [Member] | 2011 Equity Incentive Plan [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Number of units outstanding, beginning balance (in shares) | 1,780,997 | 1,230,210 | 862,855 |
Annual grant (in shares) | 497,960 | 865,291 | 923,213 |
Vested, (in shares) | (27,075) | (222,781) | |
Forfeited, (in shares) | (180,828) | (142,176) | (233,005) |
Number of units outstanding, ending balance (in shares) | 1,736,845 | 1,780,997 | 1,230,210 |
Number of units exercisable, ending balance (in shares) | 0 | ||
Weighted-average strike price | |||
Outstanding, Weighted-average grant-date fair value, beginning balance (in dollars per share) | $ 6.07 | $ 7.96 | $ 14.38 |
Annual grant, Weighted-average grant-date fair value (in dollars per share) | 9.20 | 4.70 | 6.33 |
Vested, Weighted-average grant-date fair value (in dollars per share) | 21.20 | 21.20 | |
Forfeitures, Weighted-average grant-date fair value, (in dollars per share) | 5.99 | 6.64 | 9.88 |
Outstanding, Weighted-average grant-date fair value, ending balance (in dollars per share) | 6.65 | $ 6.07 | $ 7.96 |
Exercisable, Weighted-average grant-date fair value (in dollars per share) | $ 0 | ||
Restricted Share Units [Member] | 2012 Equity Incentive Plan [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Vested, (in shares) | (23,003) | (24,653) | (31,772) |
Weighted-average strike price | |||
Vested, Weighted-average grant-date fair value (in dollars per share) | $ 14.35 | $ 14.35 | $ 14.35 |
Restricted Share Units [Member] | 2013 Equity Incentive Plan [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Vested, (in shares) | (24,073) | (26,054) | (68,300) |
Weighted-average strike price | |||
Vested, Weighted-average grant-date fair value (in dollars per share) | $ 14.31 | $ 14.31 | $ 14.31 |
Restricted Share Units [Member] | 2014 Equity Incentive Plan [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Vested, (in shares) | (44,312) | (94,546) | |
Weighted-average strike price | |||
Vested, Weighted-average grant-date fair value (in dollars per share) | $ 8.58 | $ 8.58 | |
Restricted Share Units [Member] | 2011 Equity Incentive Plan - 2015 Grants [Member] | |||
Restricted Stock Unit Activity [Roll Forward] | |||
Vested, (in shares) | (269,896) | ||
Weighted-average strike price | |||
Vested, Weighted-average grant-date fair value (in dollars per share) | $ 6.33 |
Commitments and Contingencie104
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Jan. 26, 2017USD ($)restaurant | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017USD ($)period | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||||
Percentage of gross sales of restaurants | 5.00% | |||||
Initial royalty period | 10 years | |||||
Number of subsequent payment periods | period | 2 | |||||
Reinvestment plan term | 3 years | |||||
Required minimum fixed charge coverage ratio | 1.50 | |||||
Maximum leverage ratio | 4.25 | |||||
Franchise reinvestment plan period | 3 years | |||||
Number of restaurants to be opened under reinvestment plan | restaurant | 180 | |||||
Franchise reinvestment plan, amount | $ 292,000 | |||||
Provision for contingencies | $ 27,956 | $ 18,112 | ||||
Provision for contingencies, current | 2,529 | 764 | ||||
Provision for contingencies, noncurrent | 25,427 | 17,348 | ||||
Damage sought | $ 30,000 | |||||
McDonald’s Corporation’s indemnification for contingencies | 2,489 | $ 5,170 | ||||
Standby Letters of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Standby letters of credit with an aggregate drawing amount | 80,000 | |||||
Amounts have been drawn | 0 | |||||
Puerto Rican Franchisees Lawsuit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Damage sought | 66,700 | |||||
Puerto Rico Owner Operator's Association [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Damage sought | $ 31,000 | |||||
Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Tax law, estimate of possible loss | 89,000 | |||||
Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Tax law, estimate of possible loss | $ 122,000 | |||||
Next Five Years [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Royalty fee, percentage | 6.00% | |||||
Subsequent period of the agreement | 5 years | |||||
Last Five Years [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Royalty fee, percentage | 7.00% | |||||
Subsequent period of the agreement | 5 years | |||||
Forecast [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Franchise royalty, effective percentage | 5.90% | 5.70% |
Commitments and Contingencie105
Commitments and Contingencies (Debt Covenant Ratios) (Details) | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Leverage Ratio | 3.80 | 4.02 | 4.05 | 4.12 | 4.21 | 4.08 | 4.40 | 4.80 | 4.40 | 4.56 | 4.61 | 4.62 |
Fixed Charge Coverage Ratio | 1.77 | 1.69 | 1.65 | 1.65 | 1.64 | 1.67 | 1.64 | 1.67 | 1.56 | 1.48 | 1.45 | 1.40 |
Commitments and Contingencie106
Commitments and Contingencies (Schedule of Provision for Contingencies) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | $ 36,684 | $ 26,078 | $ 20,139 |
Accruals, net | 35,999 | 28,577 | 37,729 |
Settlements | (25,427) | (20,554) | (24,099) |
Reclassifications and increase of judicial deposits | (650) | (37) | (580) |
Translation | (575) | 2,620 | (7,111) |
Balance at end of period | 46,031 | 36,684 | 26,078 |
Judicial Deposits [Roll Forward] | |||
Judicial deposits, beginning of period | (18,572) | (5,500) | (7,935) |
Judicial deposits, accruals | 161 | 0 | 0 |
Judicial deposits, settlements | 0 | 0 | 684 |
Judicial deposits, reclassifications | (60) | (11,458) | (863) |
Judicial deposits, translation | 396 | (1,614) | 2,614 |
Judicial deposits, end of period | (18,075) | (18,572) | (5,500) |
Loss Contingency Accrual, Net of Deposits [Roll Forward] | |||
Balance at beginning of period | 18,112 | 20,578 | 12,204 |
Accruals, net | 36,160 | 28,577 | 37,729 |
Settlements | (25,427) | (20,554) | (23,415) |
Reclassifications and increase of judicial deposits | (710) | (11,495) | (1,443) |
Translation | (179) | 1,006 | (4,497) |
Balance at end of period | 27,956 | 18,112 | 20,578 |
Tax Contingencies in Brazil [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | 13,312 | 5,118 | 1,999 |
Accruals, net | (2,599) | 7,196 | 4,616 |
Settlements | (337) | 0 | (9) |
Reclassifications and increase of judicial deposits | (667) | 0 | (532) |
Translation | (385) | 998 | (956) |
Balance at end of period | 9,324 | 13,312 | 5,118 |
Labor Contingencies in Brazil [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | 11,150 | 7,013 | 10,360 |
Accruals, net | 31,448 | 19,903 | 19,692 |
Settlements | (21,130) | (17,523) | (19,877) |
Reclassifications and increase of judicial deposits | 0 | 0 | (26) |
Translation | (407) | 1,757 | (3,136) |
Balance at end of period | 21,061 | 11,150 | 7,013 |
Other [Member] | |||
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of period | 12,222 | 13,947 | 7,780 |
Accruals, net | 7,150 | 1,478 | 13,421 |
Settlements | (3,960) | (3,031) | (4,213) |
Reclassifications and increase of judicial deposits | 17 | (37) | (22) |
Translation | 217 | (135) | (3,019) |
Balance at end of period | $ 15,646 | $ 12,222 | $ 13,947 |
Disclosures About Fair Value107
Disclosures About Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of debt | $ 692,299 |
Carrying Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of debt | $ 643,487 |
Disclosures About Fair Value108
Disclosures About Fair Value of Financial Instruments (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash equivalents | $ 93,541 | $ 132,040 |
Short-term Investments | 19,588 | |
Derivatives | 35,378 | |
Total Assets | 148,507 | 132,040 |
Liabilities | ||
Derivatives | 23,545 | 30,591 |
Share-based compensation | 1,483 | 512 |
Secured loan agreement | 164,385 | |
Total Liabilities | 25,028 | 195,488 |
Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash equivalents | 93,541 | 132,040 |
Short-term Investments | 0 | |
Derivatives | 0 | |
Total Assets | 93,541 | 132,040 |
Liabilities | ||
Derivatives | 0 | 0 |
Share-based compensation | 0 | 0 |
Secured loan agreement | 0 | |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Cash equivalents | 0 | 0 |
Short-term Investments | 19,588 | |
Derivatives | 35,378 | |
Total Assets | 54,966 | 0 |
Liabilities | ||
Derivatives | 23,545 | 30,591 |
Share-based compensation | 1,483 | 512 |
Secured loan agreement | 164,385 | |
Total Liabilities | 25,028 | 195,488 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Cash equivalents | 0 | 0 |
Short-term Investments | 0 | |
Derivatives | 0 | |
Total Assets | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Share-based compensation | 0 | 0 |
Secured loan agreement | 0 | |
Total Liabilities | $ 0 | $ 0 |
Segment and Geographic Infor109
Segment and Geographic Information (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)sourcesegment | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of geographical divisions (in segments) | segment | 4 | |
Number of revenue sources | source | 2 | |
Property and equipment | $ | $ 890,736 | $ 847,966 |
Segment and Geographic Infor110
Segment and Geographic Information (Profit or Loss and Assets for Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 3,319,525 | $ 2,928,630 | $ 3,052,740 |
Total Adjusted EBITDA | 304,937 | 238,445 | 230,171 |
Depreciation and amortization | (99,382) | (92,969) | (110,715) |
Gains from sale or insurance recovery of property and equipment | 95,081 | 57,244 | 12,308 |
Write-offs and related contingencies of property and equipment | (8,528) | (5,776) | (6,038) |
Impairment of long-lived assets | (17,564) | (7,697) | (12,343) |
Impairment of goodwill | (200) | (5,045) | (679) |
Stock-based compensation related to the special awards in connection with the initial public offering under the 2011 Plan | 0 | 0 | (210) |
Reorganization and optimization plan expenses | 0 | (5,341) | (18,346) |
ADBV Long-Term Incentive Plan incremental compensation from modification | (1,409) | (281) | (741) |
Operating income | 272,935 | 178,580 | 93,407 |
Net interest expense | (68,357) | (66,880) | (64,407) |
Loss from derivative instruments | (7,065) | (3,065) | (2,894) |
Foreign currency exchange results | (14,265) | 32,354 | (54,032) |
Other non-operating expenses, net | (435) | (2,360) | (627) |
Income tax expense | (53,314) | (59,641) | (22,816) |
Less: Net income attributable to non-controlling interests | (333) | (178) | (264) |
Net income (loss) attributable to Arcos Dorados Holdings Inc. | 129,166 | 78,810 | (51,633) |
Reportable Geographical Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,319,525 | 2,928,630 | 3,052,740 |
Total Adjusted EBITDA | 379,816 | 298,740 | 308,303 |
Depreciation and amortization | (113,579) | (107,561) | (124,920) |
Reportable Geographical Segments [Member] | Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,496,573 | 1,333,237 | 1,361,989 |
Total Adjusted EBITDA | 218,172 | 168,076 | 174,102 |
Depreciation and amortization | (52,442) | (43,733) | (48,849) |
Reportable Geographical Segments [Member] | Caribbean Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 474,822 | 409,671 | 398,144 |
Total Adjusted EBITDA | 40,844 | 18,049 | 2,059 |
Depreciation and amortization | (25,210) | (27,376) | (30,998) |
Reportable Geographical Segments [Member] | NOLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 386,874 | 363,965 | 367,364 |
Total Adjusted EBITDA | 33,717 | 36,288 | 31,424 |
Depreciation and amortization | (20,635) | (21,975) | (25,733) |
Reportable Geographical Segments [Member] | SLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 961,256 | 821,757 | 925,243 |
Total Adjusted EBITDA | 87,083 | 76,327 | 100,718 |
Depreciation and amortization | (15,292) | (14,477) | (19,340) |
Corporate and Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Adjusted EBITDA | (74,879) | (60,295) | (78,132) |
Depreciation and amortization | $ (5,978) | $ (5,478) | $ (8,068) |
Segment and Geographic Infor111
Segment and Geographic Information (Depreciation and Capital Expenditures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 99,382 | $ 92,969 | $ 110,715 |
Property and equipment expenditures | 174,766 | 92,282 | 90,964 |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment expenditures | 91,769 | 42,657 | 40,482 |
Caribbean Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment expenditures | 16,759 | 14,387 | 11,756 |
NOLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment expenditures | 17,565 | 10,117 | 14,623 |
SLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment expenditures | 48,621 | 24,967 | 23,623 |
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Property and equipment expenditures | 52 | 154 | 480 |
Reportable Geographical Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 113,579 | 107,561 | 124,920 |
Reportable Geographical Segments [Member] | Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 52,442 | 43,733 | 48,849 |
Reportable Geographical Segments [Member] | Caribbean Division [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 25,210 | 27,376 | 30,998 |
Reportable Geographical Segments [Member] | NOLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 20,635 | 21,975 | 25,733 |
Reportable Geographical Segments [Member] | SLAD [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 15,292 | 14,477 | 19,340 |
Corporate and Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5,978 | 5,478 | 8,068 |
Purchase Price Allocation [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 20,175 | $ 20,070 | $ 22,273 |
Segment and Geographic Infor112
Segment and Geographic Information (Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,803,743 | $ 1,505,053 |
Reportable Geographical Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,772,577 | 1,575,708 |
Reportable Geographical Segments [Member] | Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 786,897 | 726,250 |
Reportable Geographical Segments [Member] | Caribbean Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 416,541 | 355,568 |
Reportable Geographical Segments [Member] | NOLAD [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 271,558 | 247,546 |
Reportable Geographical Segments [Member] | SLAD [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 297,581 | 246,344 |
Corporate and Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 172,400 | 82,822 |
Purchase Price Allocation [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (141,234) | $ (153,477) |
Venezuelan Operations (Details)
Venezuelan Operations (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) / $ | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2017 / $ | |
Foreign Operations Disclosure [Line Items] | ||||
Revenue from Venezuelan operations | $ 101,477 | $ 51,615 | $ 40,898 | |
Operating income (loss) from Venezuelan operations | 6,804 | $ (8,608) | (28,329) | |
Impairment of long-lived assets | $ 8,563 | $ 7,804 | ||
DICOM II [Member] | Venezuela [Member] | ||||
Foreign Operations Disclosure [Line Items] | ||||
Foreign currency exchange rate (in VEF per USD) | / $ | 3,345 | 2,010 |
Venezuelan Operations (Affect o
Venezuelan Operations (Affect of Foreign Currency Translation) (Details) - Venezuela [Member] $ in Thousands | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | 14 Months Ended |
May 31, 2014USD ($) / $ | Dec. 31, 2017USD ($) / $ | Feb. 28, 2015USD ($) / $ | Mar. 09, 2016USD ($) / $ | Feb. 28, 2014USD ($) / $ | May 18, 2017USD ($) / $ | |
Official Exchange Rate [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 6.30 | |||||
Foreign currency exchange loss | $ 15,379 | |||||
Official Exchange Rate [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 0 | |||||
Official Exchange Rate [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 0 | |||||
SICAD [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 11.80 | |||||
Foreign currency exchange loss | $ 19,697 | |||||
SICAD [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 7,611 | |||||
SICAD [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 0 | |||||
SICAD II [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 49.98 | |||||
Foreign currency exchange loss | $ 38,963 | |||||
SICAD II [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 9,937 | |||||
SICAD II [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 45,186 | |||||
SIMADI [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 177 | |||||
Foreign currency exchange loss | $ 8,046 | |||||
SIMADI [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 3,250 | |||||
SIMADI [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 7,804 | |||||
DICOM [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 215.34 | |||||
Foreign currency exchange loss | $ 117 | |||||
DICOM [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 401 | |||||
DICOM [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 0 | |||||
DICOM II [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Exchange rate at System date change (VEF per US dollar) | / $ | 2,010 | |||||
Foreign currency exchange loss | $ 2,554 | |||||
DICOM II [Member] | Other Operating Income (Expense) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Write down of inventories | 1,375 | |||||
DICOM II [Member] | Foreign Currency Gain (Loss) [Member] | ||||||
Foreign Operations Disclosure [Line Items] | ||||||
Impairment of long-lived assets | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)vote$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)$ / sharesshares | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 500,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | |||
Common stock, shares issued | 211,072,508 | 210,711,224 | 210,538,896 | 210,216,043 |
Common stock, shares outstanding | 211,072,508 | 210,711,224 | 210,538,896 | 210,216,043 |
Common stock dividends declared | $ | $ 0 | $ 0 | $ 0 | $ 50,036 |
Dividends payable | $ | $ 12,509 | $ 12,509 | ||
Salary period paid upon employee leaving | 30 days | |||
Class A Shares Of Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 420,000,000 | 420,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | |
Common stock, shares issued | 131,072,508 | 130,711,224 | 130,538,896 | 130,216,043 |
Common stock, shares outstanding | 131,072,508 | 130,711,224 | 130,538,896 | 130,216,043 |
Shares issued during the period | 361,284 | 172,328 | 322,853 | |
Number of votes per share (in votes) | vote | 1 | |||
Class B Shares Of Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 80,000,000 | 80,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0 | ||
Common stock, shares issued | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares outstanding | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 |
Number of votes per share (in votes) | vote | 5 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | $ 351,576 | $ 286,890 | $ 457,587 |
Balance | 496,142 | 351,576 | 286,890 |
Accumulated Other Comprehensive Income (Losses) [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (441,649) | (424,263) | (302,467) |
Other comprehensive loss before reclassifications | 10,324 | (29,014) | (108,027) |
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income | 1,978 | 11,628 | (13,769) |
Net current-period other comprehensive (loss) income | 12,302 | (17,386) | (121,796) |
Balance | (429,347) | (441,649) | (424,263) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (441,081) | (431,190) | (302,889) |
Other comprehensive loss before reclassifications | 4,800 | (9,891) | (128,301) |
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | 4,800 | (9,891) | (128,301) |
Balance | (436,281) | (441,081) | (431,190) |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | 305 | 7,876 | 1,598 |
Other comprehensive loss before reclassifications | 6,462 | (18,813) | 20,487 |
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income | 1,592 | 11,242 | (14,209) |
Net current-period other comprehensive (loss) income | 8,054 | (7,571) | 6,278 |
Balance | 8,359 | 305 | 7,876 |
Post-Employment Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (873) | (949) | (1,176) |
Other comprehensive loss before reclassifications | (938) | (310) | (213) |
Net loss reclassified from accumulated other comprehensive loss to consolidated statement of income | 386 | 386 | 440 |
Net current-period other comprehensive (loss) income | (552) | 76 | 227 |
Balance | $ (1,425) | $ (873) | $ (949) |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Arcos Dorados Holdings Inc. available to common shareholders | $ 129,166 | $ 78,810 | $ (51,633) |
Weighted-average number of common shares outstanding - Basic | 210,935,685 | 210,646,955 | 210,436,232 |
Incremental shares from assumed exercise of stock options | 0 | 0 | 0 |
Incremental shares from vesting of restricted share units | 1,060,726 | 377,653 | 160,122 |
Weighted-average number of common shares outstanding - Diluted | 211,996,411 | 211,024,608 | 210,596,354 |
Basic net income (loss) per common share attributable to Arcos Dorados Holdings Inc. (in dollars per share) | $ 0.61 | $ 0.37 | $ (0.25) |
Diluted net income (loss) per common share attributable to Arcos Dorados Holdings Inc. (in dollars per share) | $ 0.61 | $ 0.37 | $ (0.25) |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | May 27, 2016 | Nov. 09, 2011 | Dec. 31, 2017 | Dec. 31, 2016 |
Axionlog Distribution B.V. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving loan, related parties, borrowing capacity | $ 12,000 | |||
Revolving loan maturity date | Nov. 7, 2016 | |||
Proceeds from related party debt | $ 1,800 | |||
Accounts payable, related party | $ 11,727 | $ 10,355 | ||
Lacoop, A.C. And Lacoop II, S. C. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other receivables, related party | 2,112 | 1,315 | ||
Accounts payable, related party | $ 1,113 | $ 1,299 | ||
LIBOR [Member] | Axionlog Distribution B.V. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, basis spread on variable rate (as a percent) | 6.00% |
Related Party Transactions (Sum
Related Party Transactions (Summary of Related Party Outstanding Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Miscellaneous | $ 98,291 | $ 89,661 |
Axionlog Distribution B.V. [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts and notes receivable | 1,097 | 0 |
Other receivables | 979 | 1,050 |
Miscellaneous | 3,126 | 3,612 |
Accounts payable | $ (11,727) | $ (10,355) |
Related Party Transactions (120
Related Party Transactions (Summary of Related Party Transactions) (Details) - Axionlog Distribution B.V. [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Food and paper | $ (173,387) | $ (163,536) | $ (164,882) |
Occupancy and other operating expenses | (4,281) | (3,882) | (2,499) |
Net interest income | 0 | 47 | 461 |
Logistics service fees from related party | 48,773 | 40,714 | 44,170 |
Suppliers purchase expense related party | $ 124,614 | $ 122,822 | $ 120,712 |
Valuation and Qualifying Acc121
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 325,099 | $ 331,237 | $ 322,589 |
Additions | 50,928 | 70,722 | 94,264 |
Deductions | (54,896) | (58,663) | (27,874) |
Translation | (57) | (18,197) | (57,742) |
Balance at end of period | 321,074 | 325,099 | 331,237 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 16,367 | 12,768 | 9,373 |
Additions | 6,386 | 5,367 | 6,656 |
Deductions | (1,244) | (1,647) | (2,615) |
Translation | (42) | (121) | (646) |
Balance at end of period | 21,467 | 16,367 | 12,768 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 290,620 | 297,891 | 301,012 |
Additions | 8,382 | 36,778 | 49,879 |
Deductions | (27,515) | (24,967) | (401) |
Translation | 164 | (19,082) | (52,599) |
Balance at end of period | 271,651 | 290,620 | 297,891 |
Provision For Contingencies [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 18,112 | 20,578 | 12,204 |
Additions | 36,160 | 28,577 | 37,729 |
Deductions | (26,137) | (32,049) | (24,858) |
Translation | (179) | 1,006 | (4,497) |
Balance at end of period | 27,956 | 18,112 | 20,578 |
Legal Reserve Accrual [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Additions | 36,160 | 28,577 | 37,729 |
Legal Reserve Settlements [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions | (25,427) | (20,554) | (23,415) |
Legal Reserve Reclassifications [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions | (710) | $ (11,495) | $ (1,443) |
Accounts Receivable [Member] | Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at end of period | 19,791 | ||
Other Receivables [Member] | Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at end of period | $ 1,676 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ / shares in Units, $ in Millions | Apr. 05, 2018$ / shares | Mar. 20, 2018installment$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Feb. 05, 2018 / $ |
Subsequent Event [Line Items] | ||||||
Dividends to Arcos Dorados Holdings Inc.'s shareholders, per share (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0.24 | |||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, dividends per share, declared (in dollars per share) | $ / shares | $ 0.10 | |||||
Common stock, dividends, number of payment installments | installment | 2 | |||||
Dividends to Arcos Dorados Holdings Inc.'s shareholders, per share (in dollars per share) | $ / shares | $ 0.05 | |||||
Venezuela [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net monetary position | $ (9.7) | |||||
Venezuela [Member] | DICOM [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Foreign currency exchange rate (in VEF per USD) | / $ | 25,000 | |||||
Cash and Cash Equivalents [Member] | Venezuela [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Assets, reporting currency denominated | 13 | |||||
Assets, Excluding Cash and Cash Equivalents [Member] | Venezuela [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Assets, reporting currency denominated | 75.2 | |||||
Property, Plant and Equipment, and Advances to Suppliers [Member] | Venezuela [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Assets, reporting currency denominated | $ 33.5 |