The Company evaluates the performance of its reportable segments using “segment net income (loss)”. A reconciliation of reportable segments is as follows:
| Brazil | International | Corporate and others | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2015 | 2016 | 2017 | 2017 | 2015 | 2016 | 2017 | 2017 | 2015 | 2016 | 2017 | 2017 | 2015 | 2016 | 2017 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
| BRL | BRL | BRL | USD | BRL | BRL | BRL | USD | BRL | BRL | BRL | USD | BRL | BRL | BRL | USD | |||||||||||||||||||||||||||||||||||||||||||||||||
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Net Sales |
R$ | 1,304,853 | R$ | 1,554,405 | R$ | 1,693,467 | US$ | 511,931 | R$ | 200,833 | R$ | 185,135 | R$ | 195,539 | US$ | 59,111 | R$ | — | R$ | — | R$ | — | US$ | — | R$ | 1,505,686 | R$ | 1,739,540 | R$ | 1,889,006 | US$ | 571,042 | ||||||||||||||||||||||||||||||||
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Cost of sales |
(858,062 | ) | (1,043,700 | ) | (1,132,900 | ) | (342,473 | ) | (152,439 | ) | (145,044 | ) | (158,527 | ) | (47,922 | ) | — | — | — | — | (1,010,501 | ) | (1,188,744 | ) | (1,291,427 | ) | (390,395 | ) | ||||||||||||||||||||||||||||||||||||
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Segment gross profit |
446,791 | 510,705 | 560,567 | 169,458 | 48,394 | 40,091 | 37,012 | 11,189 | — | — | — | — | 495,185 | 550,796 | 597,579 | 180,647 | ||||||||||||||||||||||||||||||||||||||||||||||||
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Salaries and employees’ benefits |
(169,572 | ) | (191,140 | ) | (167,655 | ) | (50,683 | ) | (27,154 | ) | (26,775 | ) | (27,309 | ) | (8,255 | ) | (1,265 | ) | (1,320 | ) | (1,449 | ) | (438 | ) | (197,991 | ) | (219,235 | ) | (196,413 | ) | (59,376 | ) | ||||||||||||||||||||||||||||||||
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Marketing expenses |
(136,616 | ) | (152,759 | ) | (184,836 | ) | (55,876 | ) | (40,080 | ) | (28,038 | ) | (27,688 | ) | (8,370 | ) | (47 | ) | (233 | ) | (781 | ) | (236 | ) | (176,743 | ) | (181,030 | ) | (213,305 | ) | (64,482 | ) | ||||||||||||||||||||||||||||||||
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Operating lease |
(15,395 | ) | (24,683 | ) | (25,369 | ) | (7,669 | ) | (6,147 | ) | (4,295 | ) | (4,209 | ) | (1,272 | ) | — | — | — | — | (21,542 | ) | (28,978 | ) | (29,578 | ) | (8,941 | ) | ||||||||||||||||||||||||||||||||||||
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Credit card fees |
(26,391 | ) | (25,572 | ) | (30,213 | ) | (9,133 | ) | (6,460 | ) | (6,380 | ) | (6,166 | ) | (1,864 | ) | — | — | — | — | (32,851 | ) | (31,952 | ) | (36,379 | ) | (10,997 | ) | ||||||||||||||||||||||||||||||||||||
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Information technology services |
(26,581 | ) | (29,473 | ) | (30,064 | ) | (9,088 | ) | (1,770 | ) | (1,560 | ) | (1,152 | ) | (348 | ) | (7,190 | ) | (6,244 | ) | (6,054 | ) | (1,830 | ) | (35,541 | ) | (37,277 | ) | (37,270 | ) | (11,266 | ) | ||||||||||||||||||||||||||||||||
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Amortization and depreciation |
(18,470 | ) | (27,777 | ) | (27,503 | ) | (8,314 | ) | (1,520 | ) | (1,262 | ) | (967 | ) | (292 | ) | (425 | ) | (2,163 | ) | (3,350 | ) | (1,013 | ) | (20,415 | ) | (31,202 | ) | (31,820 | ) | (9,619 | ) | ||||||||||||||||||||||||||||||||
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Consulting |
(6,783 | ) | (7,785 | ) | (10,081 | ) | (3,047 | ) | (1,824 | ) | (1,477 | ) | (1,404 | ) | (424 | ) | (1,136 | ) | (1,215 | ) | (2,215 | ) | (670 | ) | (9,743 | ) | (10,477 | ) | (13,700 | ) | (4,141 | ) | ||||||||||||||||||||||||||||||||
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Allowance for doubtful accounts |
(5,833 | ) | (6,227 | ) | (25,443 | ) | (7,691 | ) | — | — | — | — | — | — | — | — | (5,833 | ) | (6,227 | ) | (25,443 | ) | (7,691 | ) | ||||||||||||||||||||||||||||||||||||||||
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Sales commissions and royalties |
(13,164 | ) | (12,021 | ) | (16,069 | ) | (4,858 | ) | (75 | ) | (961 | ) | (910 | ) | (275 | ) | — | — | — | — | (13,239 | ) | (12,982 | ) | (16,979 | ) | (5,133 | ) | ||||||||||||||||||||||||||||||||||||
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Facilities expenses |
(13,383 | ) | (14,020 | ) | (14,185 | ) | (4,288 | ) | — | (1,410 | ) | (1,404 | ) | (424 | ) | — | — | — | — | (13,383 | ) | (15,430 | ) | (15,589 | ) | (4,712 | ) | |||||||||||||||||||||||||||||||||||||
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Other selling, general and administrative expenses |
(21,207 | ) | (35,803 | ) | (38,445 | ) | (11,623 | ) | (5,425 | ) | (7,599 | ) | (6,503 | ) | (1,966 | ) | (1,829 | ) | (64 | ) | (920 | ) | (278 | ) | (28,461 | ) | (43,466 | ) | (45,868 | ) | (13,867 | ) | ||||||||||||||||||||||||||||||||
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Other operating (expense) income, net |
(3,014 | ) | (5,146 | ) | (3,849 | ) | (1,164 | ) | (142 | ) | (104 | ) | (28 | ) | (8 | ) | (347 | ) | (2 | ) | (56 | ) | (17 | ) | (3,503 | ) | (5,252 | ) | (3,933 | ) | (1,189 | ) | ||||||||||||||||||||||||||||||||
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Total operating expenses |
(456,409 | ) | (532,406 | ) | (573,712 | ) | (173,434 | ) | (90,597 | ) | (79,861 | ) | (77,740 | ) | (23,498 | ) | (12,239 | ) | (11,241 | ) | (14,825 | ) | (4,482 | ) | (559,245 | ) | (623,508 | ) | (666,277 | ) | (201,414 | ) | ||||||||||||||||||||||||||||||||
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Financial income |
60,409 | 26,642 | 27,672 | 8,366 | 885 | 812 | 1,635 | 494 | — | 912 | 824 | 249 | 61,294 | 28,366 | 30,131 | 9,109 | ||||||||||||||||||||||||||||||||||||||||||||||||
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Financial expenses |
(81,284 | ) | (93,178 | ) | (116,947 | ) | (35,353 | ) | (15,383 | ) | (14,371 | ) | (12,738 | ) | (3,851 | ) | — | (1 | ) | (2,091 | ) | (632 | ) | (96,667 | ) | (107,550 | ) | (131,776 | ) | (39,836 | ) | |||||||||||||||||||||||||||||||||
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Loss before income tax |
(30,493 | ) | (88,237 | ) | (102,420 | ) | (30,963 | ) | (56,701 | ) | (53,329 | ) | (51,831 | ) | (15,666 | ) | (12,239 | ) | (10,330 | ) | (16,092 | ) | (4,865 | ) | (99,433 | ) | (151,896 | ) | (170,343 | ) | (51,494 | ) | ||||||||||||||||||||||||||||||||
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Income tax expense |
— | — | — | — | (80 | ) | — | (2 | ) | (1 | ) | — | — | — | — | (80 | ) | — | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||
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Segment net income (loss) |
R$ | (30,493 | ) | R$ | (88,237 | ) | R$ | (102,420 | ) | US$ | (30,963 | ) | R$ | (56,781 | ) | R$ | (53,329 | ) | R$ | (51,833 | ) | US$ | (15,667 | ) | R$ | (12,239 | ) | R$ | (10,330 | ) | R$ | (16,092 | ) | US$ | (4,865 | ) | R$ | (99,513 | ) | R$ | (151,896 | ) | R$ | (170,345 | ) | US$ | (51,495 | ) | ||||||||||||||||
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