Segments

3 Months Ended

Mar. 31, 2020

As previously described in our Annual Report on Form 10-K for the year ended December 31, 2019, the Company has historically managed and reported our operating results through two reportable segments, defined by geographic region: North America and International. In the first quarter of 2020, we evaluated the identification of our operating and reportable segments based upon changes in business models, management reporting, and how the Chief Operating Decision Maker (CODM) is currently allocating resources, assessing performance and reviewing financial information. We determined that this change caused the composition of our reportable segments to change and that Brazil represented a third operating and reportable segment, which was previously reported in the International segment. We now manage and report our operating results through three operating and reportable segments defined by geographic region: North America, Brazil and International, which aligns with how the CODM allocates resources, assesses performance and reviews financial information. This change in reporting segments did not impact our determination of reporting units. We are furnishing supplemental historical segment information, which conforms to the new reportable segment structure.

The Company’s segment results are as follows for the three month periods ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
Revenues, net:
North America	$	434,692	$	396,899
Brazil	98,978		105,699
International	127,423		119,227
	$	661,093	$	621,825
Operating income:
North America	$	85,740	$	172,379
Brazil	39,442		42,154
International	75,801		69,643
	$	200,983	$	284,176
Depreciation and amortization:
North America	$	37,976	$	38,292
Brazil	14,589		16,794
International	11,911		12,359
	$	64,476	$	67,445
Capital expenditures:
North America	$	11,264	$	8,377
Brazil	3,331		4,154
International	3,662		1,975
	$	18,257	$	14,506


Fiscal Quarters Year Ended December 31, 2019 (in thousands)	First		Second		Third		Fourth
Revenues, net:
North America	$	396,899	$	417,941	$	442,704	$	451,002
Brazil	105,699		103,581		106,574		112,067
International	119,227		125,572		131,770		135,812
	$	621,825	$	647,094	$	681,048	$	698,881
Operating income:
North America	$	172,379	$	184,293	$	205,558	$	192,511
Brazil	42,154		42,261		42,469		48,545
International	69,643		70,763		81,114		79,740
	$	284,176	$	297,317	$	329,141	$	320,796
Depreciation and amortization:
North America	$	38,292	$	41,875	$	39,309	$	40,770
Brazil	16,794		16,296		16,224		15,622
International	12,359		12,737		11,814		12,118
	$	67,445	$	70,908	$	67,347	$	68,510
Capital expenditures:
North America	$	8,377	$	11,306	$	10,340	$	14,215
Brazil	4,154		3,823		4,296		6,057
International	1,975		2,341		2,070		6,218
	$	14,506	$	17,470	$	16,706	$	26,490


Fiscal Quarters Year Ended December 31, 2018 (in thousands)	First		Second		Third		Fourth
Revenues, net:
North America	$	364,270	$	370,949	$	412,816	$	423,432
Brazil	107,105		96,336		92,403		104,267
International	114,125		117,700		114,367		115,723
	$	585,500	$	584,985	$	619,586	$	643,422
Operating income:
North America	$	154,798	$	159,904	$	178,262	$	181,513
Brazil	43,436		36,896		36,976		41,414
International	61,853		67,983		65,852		61,811
	$	260,087	$	264,783	$	281,090	$	284,738
Depreciation and amortization:
North America	$	38,675	$	38,317	$	39,049	$	38,364
Brazil	18,833		16,643		15,147		16,544
International	13,994		13,650		13,071		12,322
	$	71,502	$	68,610	$	67,267	$	67,230
Capital expenditures:
North America	$	8,411	$	11,685	$	12,604	$	3,814
Brazil	4,372		3,897		5,357		8,430
International	2,431		3,818		3,737		12,831
	$	15,214	$	19,400	$	21,698	$	25,075


	Years Ended December 31,
	2019		2018
Long-lived assets (excluding goodwill and investments)¹
North America	$	1,860,708	$	1,799,149
Brazil	487,464		541,891
International	418,311		400,703
	$	2,766,483	$	2,741,743

1 The Company applied the modified retrospective transition method when adopting ASC 842, therefore the Company's 2018 results were not restated to reflect ASC 842.