Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Nov. 04, 2013 | |
Document Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'THI | ' |
Entity Registrant Name | 'Tim Hortons Inc. | ' |
Entity Central Index Key | '0001345111 | ' |
Current Fiscal Year End Date | '--12-29 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 147,091,058 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement Of Operations (CAD) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Sales (note 14) | 575,780 | 568,541 | 1,668,229 | 1,655,615 |
Franchise revenues | ' | ' | ' | ' |
Rents and royalties | 212,114 | 201,556 | 608,857 | 580,715 |
Franchise fees | 37,459 | 31,943 | 79,943 | 72,575 |
Franchise Revenue, Total | 249,573 | 233,499 | 688,800 | 653,290 |
Total revenues | 825,353 | 802,040 | 2,357,029 | 2,308,905 |
Costs and expenses | ' | ' | ' | ' |
Cost of sales (note 14) | 501,856 | 497,617 | 1,452,302 | 1,455,437 |
Operating expenses | 78,307 | 73,205 | 231,026 | 211,444 |
Franchise fee costs | 37,865 | 32,083 | 83,743 | 77,159 |
General and administrative expenses | 38,787 | 40,913 | 115,493 | 122,608 |
Equity (income) | -4,075 | -3,951 | -11,340 | -11,056 |
Corporate reorganization expenses (note 2) | 953 | 8,565 | 11,032 | 9,842 |
Asset impairment (note 14) | 2,889 | 0 | 2,889 | -372 |
Other (income) expense, net | 57 | 51 | 1,440 | 278 |
Total costs and expenses, net | 656,525 | 648,381 | 1,883,705 | 1,864,784 |
Operating income | 168,828 | 153,659 | 473,324 | 444,121 |
Interest (expense) | -9,406 | -8,509 | -26,991 | -25,057 |
Interest income | 919 | 760 | 2,638 | 2,194 |
Income before income taxes | 160,341 | 145,910 | 448,971 | 421,258 |
Income taxes (note 3) | 45,386 | 38,956 | 122,531 | 115,088 |
Net income | 114,955 | 106,954 | 326,440 | 306,170 |
Net income attributable to non-controlling interests (note 13) | 1,092 | 1,256 | 2,670 | 3,626 |
Net income attributable to Tim Hortons Inc. | 113,863 | 105,698 | 323,770 | 302,544 |
Basic earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.76 | 0.68 | 2.12 | 1.94 |
Diluted earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.75 | 0.68 | 2.12 | 1.94 |
Weighted average number of common shares outstanding (in thousands) – Basic (note 4) | 150,342 | 154,478 | 152,379 | 155,607 |
Weighted average number of common shares outstanding (in thousands) – Diluted (note 4) | 150,864 | 155,067 | 152,919 | 156,247 |
Dividends per common share (in Canadian dollars per share) | 0.26 | 0.21 | 0.78 | 0.63 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement Of Comprehensive Income (CAD) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | 114,955 | 106,954 | 326,440 | 306,170 |
Other comprehensive (loss) income | ' | ' | ' | ' |
Translation adjustments (loss) gain | -9,133 | -13,292 | 14,250 | -12,786 |
Unrealized (losses) gains from cash flow hedges (note 9) | ' | ' | ' | ' |
(Loss) from change in fair value of derivatives | -10,686 | -5,717 | -2,607 | -7,106 |
Amount of net loss (gain) reclassified to earnings during the period | -2,068 | 474 | -1,027 | -1,474 |
Tax recovery (expense) (note 9) | 1,509 | 1,444 | -816 | 2,395 |
Other comprehensive (loss) income | -20,378 | -17,091 | 9,800 | -18,971 |
Comprehensive income | 94,577 | 89,863 | 336,240 | 287,199 |
Comprehensive income atributable to non-controlling interests | 1,092 | 1,256 | 2,670 | 3,626 |
Comprehensive income attributable to Tim Hortons Inc. | 93,485 | 88,607 | 333,570 | 283,573 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (CAD) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | 44,877 | 120,139 |
Restricted cash and cash equivalents | 100,964 | 150,574 |
Accounts receivable, net | 185,819 | 171,605 |
Notes receivable, net (note 5) | 6,565 | 7,531 |
Deferred income taxes | 8,015 | 7,142 |
Inventories and other, net (note 6) | 111,930 | 107,000 |
Advertising fund restricted assets (note 13) | 48,722 | 45,337 |
Total current assets | 506,892 | 609,328 |
Property and equipment, net | 1,615,880 | 1,553,308 |
Intangible assets, net | 2,943 | 3,674 |
Notes receivable, net (note 5) | 5,177 | 1,246 |
Deferred income taxes | 11,686 | 10,559 |
Equity investments | 41,304 | 41,268 |
Other assets | 81,870 | 64,796 |
Total assets | 2,265,752 | 2,284,179 |
Current liabilities | ' | ' |
Accounts payable (note 7) | 180,102 | 169,762 |
Accrued liabilities | ' | ' |
Salaries and wages | 22,489 | 21,477 |
Taxes | 15,599 | 8,391 |
Tim Card obligation and other (note 7) | 150,997 | 197,871 |
Deferred income taxes | 342 | 197 |
Advertising fund liabilities (note 13) | 63,672 | 44,893 |
Current portion of long-term obligations | 20,549 | 20,781 |
Total current liabilities | 453,750 | 463,372 |
Long-term obligations | ' | ' |
Long-term debt | 367,231 | 359,471 |
Long-term debt – Advertising fund | 42,375 | 46,849 |
Capital leases | 115,370 | 104,383 |
Deferred income taxes | 8,466 | 10,399 |
Other long-term liabilities (note 7) | 115,752 | 109,614 |
Total long-term obligations | 649,194 | 630,716 |
Commitments and contingencies (note 10) | ' | ' |
Equity of Tim Hortons Inc. | ' | ' |
Common shares ($2.84 stated value per share), Authorized: unlimited shares. Issued: 149,122,408 and 153,404,839 shares, respectively (note 11) | 422,871 | 435,033 |
Common shares held in Trust, at cost: 340,314 and 316,923 shares, respectively (note 13) | -14,969 | -13,356 |
Contributed surplus | 14,580 | 10,970 |
Retained earnings | 868,526 | 893,619 |
Accumulated other comprehensive loss | -129,228 | -139,028 |
Total equity of Tim Hortons Inc. | 1,161,780 | 1,187,238 |
Non-controlling interests (note 13) | 1,028 | 2,853 |
Total equity | 1,162,808 | 1,190,091 |
Total liabilities and equity | 2,265,752 | 2,284,179 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet (Parenthetical) (CAD) | 9 Months Ended | 12 Months Ended |
Sep. 29, 2013 | Dec. 30, 2012 | |
Statement of Financial Position [Abstract] | ' | ' |
Common shares, stated value per share | 2.84 | 2.84 |
Common shares, shares authorized | 'unlimited | 'unlimited |
Common shares, issued | 149,122,408 | 153,404,839 |
Common shares held in Trust, shares | 340,314 | 316,923 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement Of Cash Flows (CAD) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | ||
Cash flows provided from (used in) operating activities | ' | ' | ||
Net income | 326,440 | 306,170 | ||
Adjustments to reconcile net income to net cash provided from operating activities | ' | ' | ||
Depreciation and amortization | 110,447 | 96,842 | ||
Stock-based compensation expense (note 12) | 17,132 | [1] | 12,722 | [1] |
Deferred income taxes | -2,458 | -2,387 | ||
Changes in operating assets and liabilities | ' | ' | ||
Restricted cash and cash equivalents | 50,020 | 45,728 | ||
Accounts receivable | -11,010 | -2,913 | ||
Inventories and other | -7,913 | 26,186 | ||
Accounts payable and accrued liabilities | -58,213 | -63,430 | ||
Taxes | 7,183 | -10,220 | ||
Other | 6,524 | 7,433 | ||
Net cash provided from operating activities | 438,152 | 416,131 | ||
Cash flows (used in) provided from investing activities | ' | ' | ||
Capital expenditures | -132,726 | -112,812 | ||
Capital expenditures – Advertising fund (note 13) | -9,554 | -46,190 | ||
Other investing activities | 6,709 | -7,812 | ||
Net cash (used in) investing activities | -135,571 | -166,814 | ||
Cash flows (used in) provided from financing activities | ' | ' | ||
Repurchase of common shares (note 11) | -242,222 | -172,656 | ||
Dividend payments to common shareholders | -118,579 | -98,172 | ||
Net proceeds from issue of debt – Advertising fund (note 13) | 0 | 42,500 | ||
Principal payments on long-term debt obligations | -12,901 | -5,502 | ||
Other financing activities | -5,601 | -5,336 | ||
Net cash (used in) financing activities | -379,303 | -239,166 | ||
Effect of exchange rate changes on cash | 1,460 | -1,586 | ||
(Decrease) Increase in cash and cash equivalents | -75,262 | 8,565 | ||
Cash and cash equivalents at beginning of period | 120,139 | 126,497 | ||
Cash and cash equivalents at end of period | 44,877 | 135,062 | ||
Supplemental disclosures of cash flow information: | ' | ' | ||
Interest paid | 23,259 | 19,869 | ||
Income taxes paid | 117,418 | 134,815 | ||
Non-cash investing and financing activities: | ' | ' | ||
Capital lease obligations incurred | 25,217 | 10,864 | ||
[1] | Generally included in General and administrative expenses. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement Of Equity (CAD) | Total | Common Shares | Common Shares Held In Trust | Contributed Surplus | Retained Earnings | AOCI, Translation Adjustment | AOCI, Cash Flow Hedges | Total Equity Of Tim Hortons Inc. | Noncontrolling Interest | Total Equity | ||||
In Thousands, unless otherwise specified | ||||||||||||||
Balance as at Jan. 01, 2012 | ' | 447,558 | -10,136 | 6,375 | 836,968 | -128,170 | [1] | -47 | [1] | 1,152,548 | 1,885 | [2] | 1,154,433 | |
Balance as (in shares) at Jan. 01, 2012 | ' | -157,815 | -277 | ' | ' | ' | ' | ' | ' | ' | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Repurchase of common shares (in shares) | [3] | ' | -4,410 | -112 | ' | ' | ' | ' | ' | ' | ' | |||
Repurchase of common shares | [3] | ' | -12,525 | -6,154 | ' | -212,675 | ' | ' | -231,354 | ' | -231,354 | |||
Disbursed or sold from the Trust, shares | [4] | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' | |||
Disbursed or sold from the Trust | [4] | ' | ' | 2,934 | ' | ' | ' | ' | 2,934 | ' | 2,934 | |||
Stock based compensation | ' | ' | ' | 4,595 | -2,143 | ' | ' | 2,452 | ' | 2,452 | ||||
Other comprehensive loss | ' | ' | ' | ' | ' | -7,268 | [1] | -3,543 | [1] | -10,811 | ' | -10,811 | ||
NCI transactions | ' | ' | ' | ' | -907 | ' | ' | -907 | 907 | [2] | 0 | |||
Net income attributable to NCI | ' | ' | ' | ' | ' | ' | ' | ' | 4,881 | [2] | 4,881 | |||
Net income attributable to THI | ' | ' | ' | ' | 402,885 | ' | ' | 402,885 | ' | 402,885 | ||||
Dividends and distributions, net | ' | ' | ' | ' | -130,509 | ' | ' | -130,509 | -4,820 | [2] | -135,329 | |||
Balance as at Dec. 30, 2012 | 1,190,091 | 435,033 | -13,356 | 10,970 | 893,619 | -135,438 | [1] | -3,590 | [1] | 1,187,238 | 2,853 | [2] | 1,190,091 | |
Balance as (in shares) at Dec. 30, 2012 | ' | -153,405 | -317 | ' | ' | ' | ' | ' | ' | ' | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Repurchase of common shares (in shares) | [3] | ' | -4,283 | -43 | ' | ' | ' | ' | ' | ' | ' | |||
Repurchase of common shares | [3] | ' | -12,162 | -2,453 | ' | -230,060 | ' | ' | -244,675 | ' | -244,675 | |||
Disbursed or sold from the Trust, shares | [4] | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | |||
Disbursed or sold from the Trust | [4] | ' | ' | 840 | ' | ' | ' | ' | 840 | ' | 840 | |||
Stock based compensation | ' | ' | ' | 3,610 | 259 | ' | ' | 3,869 | ' | 3,869 | ||||
Other comprehensive loss | 9,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Other comprehensive income, before reclassifications | [5] | ' | ' | ' | ' | ' | 14,250 | [1] | -3,833 | [1] | 10,417 | ' | 10,417 | |
Amounts reclassified from AOCI | [5] | ' | ' | ' | ' | ' | ' | -617 | [1] | -617 | ' | -617 | ||
NCI transactions | ' | ' | ' | ' | -483 | ' | ' | -483 | 483 | [2] | 0 | |||
Net income attributable to NCI | 2,670 | ' | ' | ' | ' | ' | ' | ' | 2,670 | [2] | 2,670 | |||
Net income attributable to THI | 323,770 | ' | ' | ' | 323,770 | ' | ' | 323,770 | ' | 323,770 | ||||
Dividends and distributions, net | ' | ' | ' | ' | -118,579 | ' | ' | -118,579 | -4,978 | [2] | -123,557 | |||
Balance as at Sep. 29, 2013 | 1,162,808 | 422,871 | -14,969 | 14,580 | 868,526 | -121,188 | [1] | -8,040 | [1] | 1,161,780 | 1,028 | [2] | 1,162,808 | |
Balance as (in shares) at Sep. 29, 2013 | ' | -149,122 | -340 | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Accumulated other comprehensive income. | |||||||||||||
[2] | Non-controlling interests. | |||||||||||||
[3] | Amounts reflected in Retained earnings represent consideration in excess of the stated value. | |||||||||||||
[4] | Amounts are net of tax (see note 12). | |||||||||||||
[5] | Amounts are net of tax (see note 9). |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary Of Significant Accounting Policies | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Description of business | ||||||||||||
Tim Hortons Inc. is a corporation governed by the Canada Business Corporations Act. References herein to “Tim Hortons” or the “Company” refer to Tim Hortons Inc. and its subsidiaries. The Company’s principal business is the development and franchising of quick service restaurants primarily in Canada and the U.S., that serve premium coffee, hot and cold specialty drinks (including lattes, cappuccinos and espresso shots), specialty teas and fruit smoothies, fresh baked goods, grilled Panini and classic sandwiches, wraps, soups, prepared foods and other food products. As the franchisor, we collect royalty revenue from franchised restaurant sales. The Company also controls the real estate underlying a substantial majority of the system restaurants, which generates another source of revenue. In addition, the Company has vertically integrated manufacturing, warehouse and distribution operations which supply a significant portion of our system restaurants with coffee and other beverages, non-perishable food, supplies, packaging and equipment. | ||||||||||||
The following table outlines the Company’s systemwide restaurant count and activity: | ||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||
Systemwide Restaurant Count | ||||||||||||
Franchised restaurants in operation – beginning of period | 4,284 | 4,050 | 4,242 | 3,996 | ||||||||
Restaurants opened | 51 | 72 | 111 | 140 | ||||||||
Restaurants closed | (5 | ) | (6 | ) | (27 | ) | (18 | ) | ||||
Net transfers within the franchised system | 2 | (1 | ) | 6 | (3 | ) | ||||||
Franchised restaurants in operation – end of period | 4,332 | 4,115 | 4,332 | 4,115 | ||||||||
Company-operated restaurants – end of period | 18 | 23 | 18 | 23 | ||||||||
Total systemwide restaurants – end of period(1) | 4,350 | 4,138 | 4,350 | 4,138 | ||||||||
% of restaurants franchised – end of period | 99.6 | % | 99.4 | % | 99.6 | % | 99.4 | % | ||||
________________ | ||||||||||||
(1) | Includes various types of standard and non-standard restaurant formats in Canada, the U.S. and the Gulf Cooperation Council (“GCC”) with differing restaurant sizes and menu offerings as well as self-serve kiosks, which serve primarily coffee products and a limited product selection. Collectively, the Company refers to all of these restaurants and kiosks as “systemwide restaurants.” | |||||||||||
Excluded from the above table are 256 primarily licensed locations in the Republic of Ireland and the United Kingdom as at September 29, 2013 (September 30, 2012: 241 restaurants). | ||||||||||||
Basis of presentation and principles of consolidation | ||||||||||||
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments (all of which are normal and recurring in nature) necessary to state fairly the Company’s financial position as at September 29, 2013, and the results of operations, comprehensive income and cash flows for the third quarters ended September 29, 2013 and September 30, 2012. These Condensed Consolidated Financial Statements should be read in conjunction with the audited 2012 Consolidated Financial Statements which are contained in the Company’s Annual Report on Form 10-K for the year ended December 30, 2012 filed with the SEC and the CSA on February 21, 2013. The December 30, 2012 Condensed Consolidated Balance Sheet included herein was derived from the audited 2012 Consolidated Financial Statements, but does not include all of the year-end disclosures required by U.S. GAAP. | ||||||||||||
The Condensed Consolidated Financial Statements include the results and balances of Tim Hortons Inc., its wholly-owned subsidiaries and certain entities which the Company consolidates as variable interest entities (“VIEs”) (see note 13). Intercompany accounts and transactions among consolidated entities have been eliminated upon consolidation. Investments in non-consolidated affiliates over which the Company exercises significant influence, but for which the Company is not the primary beneficiary and does not have control, are accounted for using the equity method. The Company’s share of the earnings or losses of these non-consolidated affiliates is included in Equity income, which is included as part of operating income because these investments are operating ventures closely integrated into the Company’s business operations. | ||||||||||||
Accounting changes – new accounting standards | ||||||||||||
In the first quarter of fiscal 2013, we prospectively adopted Accounting Standards Update No. 2013-02 – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires additional disclosure of significant reclassifications out of comprehensive income into net income, if the amount is required to be reclassified in its entirety (see Condensed Consolidated Statement of Equity and note 9). |
Corporate_Reorganization_Expen
Corporate Reorganization Expenses | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Corporate Reorganization Expenses | ' | |||||||||||||||
CORPORATE REORGANIZATION EXPENSES | ||||||||||||||||
The Company completed the realignment of roles and responsibilities under its new organizational structure at the end of the first quarter of fiscal 2013, and incurred the following expenses, as set forth in the table below: | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Termination costs | $ | — | $ | 4,255 | $ | 6,632 | $ | 4,255 | ||||||||
Professional fees and other | — | 2,079 | 2,543 | 3,356 | ||||||||||||
CEO transition costs | 953 | 2,231 | 1,857 | 2,231 | ||||||||||||
Total Corporate reorganization expenses | $ | 953 | $ | 8,565 | $ | 11,032 | $ | 9,842 | ||||||||
The CEO transition costs incurred in the third quarter of fiscal 2013 consist primarily of compensation expense. CEO transition costs also include expenses related to an employment agreement with an executive officer and retention agreements with certain senior executives. The retention agreements provide bonuses to certain senior executives if they remain employed for a specified time period subsequent to the CEO transition. The expense is being recognized over the estimated service period of these agreements. The Company has accrued $1.7 million as at September 29, 2013 relating to the retention agreements, for which the total expense may be up to $2.8 million. The Company does not anticipate incurring further significant corporate reorganization expenses in conjunction with this reorganization. | ||||||||||||||||
Termination | Professional | CEO transition | Total | |||||||||||||
costs | fees and other | costs | ||||||||||||||
Cost incurred during fiscal 2012 | $ | 9,016 | $ | 7,602 | $ | 2,256 | $ | 18,874 | ||||||||
Paid during fiscal 2012 | (1,458 | ) | (3,775 | ) | (411 | ) | (5,644 | ) | ||||||||
Accrued as at December 30, 2012 | 7,558 | 3,827 | 1,845 | 13,230 | ||||||||||||
Cost incurred during fiscal 2013 to-date | 6,632 | 2,543 | 1,857 | 11,032 | ||||||||||||
Paid during fiscal 2013 to-date | (12,354 | ) | (6,141 | ) | (210 | ) | (18,705 | ) | ||||||||
Accrued as at September 29, 2013(1) | $ | 1,836 | $ | 229 | $ | 3,492 | $ | 5,557 | ||||||||
_____________ | ||||||||||||||||
(1) | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million). |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
The effective income tax rate was 28.3% for the third quarter ended September 29, 2013 (third quarter fiscal 2012: 26.7%) and 27.3% for the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: 27.3%). The change in the effective tax rate in the third quarter of 2013 compared to the third quarter of 2012 is primarily due to a reduction in liabilities for unrecognized tax benefits in the third quarter of 2012, which did not recur. In addition, an asset impairment charge was recorded during the current quarter on long-lived assets (see note 14) with no corresponding tax benefit recognized. | |
For Canadian federal tax purposes, the 2005 and subsequent taxation years remain open to examination and potential adjustment by the Canada Revenue Agency (“CRA”). The CRA issued notices of reassessment for the 2005 through 2009 taxation years for transfer pricing adjustments related to our former investment in the Maidstone Bakery joint venture. The proposed adjustments, including tax, penalty and interest, total approximately $60.0 million. The Company is required to maintain approximately $38.0 million of the proposed adjustment on deposit with the CRA and other taxation authorities while this matter is under dispute, most of which was deposited in October 2013. Although the outcome of this matter cannot be predicted with certainty, the Company intends to contest this matter vigorously, and believes that it will ultimately prevail based on the merits of its position. At this time, the Company believes that it has adequately reserved for this matter; however, it will continue to evaluate its reserves as it progresses through the appeals, and litigation process, if necessary, with the CRA. If the CRA’s position is ultimately sustained as proposed, it may have a material adverse impact on earnings in the period that the matter is ultimately resolved. |
Earnings_Per_Common_Share_Attr
Earnings Per Common Share Attributable to Tim Hortons Inc. | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share Attributable to Tim Hortons Inc. | ' | |||||||||||||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO TIM HORTONS INC. | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, | September 30, 2012 | September 29, | September 30, 2012 | |||||||||||||
2013 | 2013 | |||||||||||||||
Net income attributable to Tim Hortons Inc. | $ | 113,863 | $ | 105,698 | $ | 323,770 | $ | 302,544 | ||||||||
Weighted average shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,342 | 154,478 | 152,379 | 155,607 | ||||||||||||
Dilutive impact of RSUs(1) | 264 | 304 | 285 | 329 | ||||||||||||
Dilutive impact of stock options with tandem SARs(2) | 258 | 285 | 255 | 311 | ||||||||||||
Weighted average shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,864 | 155,067 | 152,919 | 156,247 | ||||||||||||
Basic earnings per common share attributable to Tim Hortons Inc. | $ | 0.76 | $ | 0.68 | $ | 2.12 | $ | 1.94 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.75 | $ | 0.68 | $ | 2.12 | $ | 1.94 | ||||||||
________________ | ||||||||||||||||
(1) | Restricted stock units (“RSUs”). | |||||||||||||||
(2) | Stock appreciation rights (“SARs”). |
Notes_Receivable_Net
Notes Receivable, Net | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Notes Receivable, Net | ' | |||||||||||||||||||||||
NOTES RECEIVABLE, NET | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Gross | VIEs(2) | Total | Gross | VIEs(2) | Total | |||||||||||||||||||
Franchise Incentive Program (“FIP”) notes(1) | $ | 18,806 | $ | (13,466 | ) | $ | 5,340 | $ | 20,235 | $ | (14,441 | ) | $ | 5,794 | ||||||||||
Other notes receivable(3) | 8,567 | — | 8,567 | 4,773 | — | 4,773 | ||||||||||||||||||
Notes receivable | $ | 27,373 | $ | (13,466 | ) | 13,907 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance | (2,165 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 11,742 | $ | 8,777 | ||||||||||||||||||||
Current portion, net | $ | 6,565 | $ | 7,531 | ||||||||||||||||||||
Long-term portion, net | $ | 5,177 | $ | 1,246 | ||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Class and Aging | Gross | VIEs(2) | Total | Gross | VIEs(2) | Total | ||||||||||||||||||
Current status (FIP notes and other) | $ | 10,283 | $ | (1,917 | ) | $ | 8,366 | $ | 6,969 | $ | (1,269 | ) | $ | 5,700 | ||||||||||
Past-due status < 90 days (FIP notes) | — | — | — | 407 | (407 | ) | — | |||||||||||||||||
Past-due status > 90 days (FIP notes) | 17,090 | (11,549 | ) | 5,541 | 17,632 | (12,765 | ) | 4,867 | ||||||||||||||||
Notes receivable | $ | 27,373 | $ | (13,466 | ) | $ | 13,907 | $ | 25,008 | $ | (14,441 | ) | $ | 10,567 | ||||||||||
Allowance | (2,165 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 11,742 | $ | 8,777 | ||||||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | The Company has outstanding FIP arrangements with certain U.S. restaurant owners, which generally provided interest-free financing for the purchase of certain restaurant equipment, furniture, trade fixtures and signage. | |||||||||||||||||||||||
(2) | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Condensed Consolidated Balance Sheet (see note 13). | |||||||||||||||||||||||
(3) | Relates primarily to notes issued to vendors in conjunction with the financing of a property sale, and on various equipment and other financing programs. |
Inventories_and_Other_Net
Inventories and Other, Net | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories and Other, Net | ' | |||||||
INVENTORIES AND OTHER, NET | ||||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 27,745 | $ | 19,941 | ||||
Finished goods | 76,180 | 75,660 | ||||||
103,925 | 95,601 | |||||||
Inventory obsolescence provision | (920 | ) | (1,015 | ) | ||||
Inventories, net | 103,005 | 94,586 | ||||||
Prepaids and other | 8,925 | 12,414 | ||||||
Total Inventories and other, net | $ | 111,930 | $ | 107,000 | ||||
Accounts_Payable_Tim_Card_Obli
Accounts Payable, Tim Card Obligation and Other, and Other Long-Term Liabilities | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable, Tim Card Obligation and Other, and Other Long-Term Liabilities | ' | |||||||
ACCOUNTS PAYABLE, TIM CARD OBLIGATION AND OTHER, AND OTHER LONG–TERM LIABILITIES | ||||||||
Accounts payable | ||||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Accounts payable | $ | 128,334 | $ | 126,312 | ||||
Construction holdbacks and accruals | 46,906 | 31,008 | ||||||
Corporate reorganization accrual (note 2) | 4,862 | 12,442 | ||||||
Total Accounts payable | $ | 180,102 | $ | 169,762 | ||||
Tim Card obligation and other | ||||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Tim Card obligation | $ | 104,682 | $ | 159,745 | ||||
Contingent rent expense accrual | 9,645 | 9,962 | ||||||
Maidstone Bakeries supply contract deferred liability | 7,553 | 7,929 | ||||||
Other accrued liabilities(1) | 29,117 | 20,235 | ||||||
Total Accrued liabilities, Other | $ | 150,997 | $ | 197,871 | ||||
________________ | ||||||||
(1) | Includes deferred revenues, deposits, and various equipment and other accruals. | |||||||
Other long-term liabilities | ||||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Accrued rent leveling liability | $ | 30,875 | $ | 29,244 | ||||
Uncertain tax position liability(1) | 32,862 | 28,610 | ||||||
Stock-based compensation liabilities (note 12) | 23,867 | 17,479 | ||||||
Maidstone Bakeries supply contract deferred liability | 9,781 | 15,352 | ||||||
Other accrued long-term liabilities(2) | 18,367 | 18,929 | ||||||
Total Other long-term liabilities | $ | 115,752 | $ | 109,614 | ||||
________________ | ||||||||
(1) | Includes accrued interest. | |||||||
(2) | Includes deferred revenues and various other accruals. |
Fair_Values
Fair Values | 9 Months Ended | |||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Values | ' | |||||||||||||||||||
FAIR VALUES | ||||||||||||||||||||
Financial assets and liabilities measured at fair value | ||||||||||||||||||||
As at | ||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | |||||||||||||||||
hierarchy | asset | hierarchy | asset | |||||||||||||||||
(liability)(1) | (liability)(1) | |||||||||||||||||||
Derivatives | ||||||||||||||||||||
Forward currency contracts(2) | Level 2 | $ | 1,320 | Level 2 | $ | (2,014 | ) | |||||||||||||
Interest rate swap(3) | Level 2 | 11 | n/a | — | ||||||||||||||||
2013 Interest rate forwards(4) | Level 2 | (7,235 | ) | n/a | — | |||||||||||||||
Total return swaps (“TRS”)(5) | Level 2 | 18,541 | Level 2 | 7,504 | ||||||||||||||||
Total Derivatives | $ | 12,637 | $ | 5,490 | ||||||||||||||||
________________ | ||||||||||||||||||||
(1) | The Company values its derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs to the valuation model. | |||||||||||||||||||
(2) | The fair value of forward currency contracts is determined using prevailing exchange rates. | |||||||||||||||||||
(3) | The fair value is estimated using discounted cash flows and market-based observable inputs, including interest rate yield curves and discount rates. | |||||||||||||||||||
(4) | Interest rate forwards are valued using a regression analysis that considers the respective Government of Canada bond yield and over-the-counter interest rates representing the yield for lending securities against cash, also known as repo rates. The regression analysis includes using a hypothetical derivative approach for both prospective and retrospective effectiveness assessments. | |||||||||||||||||||
(5) | The fair value of the TRS is determined using the Company’s common share closing price on the last business day of the fiscal period, as quoted on the Toronto Stock Exchange (“TSX”). | |||||||||||||||||||
Other financial assets and liabilities not measured at fair value | ||||||||||||||||||||
As at September 29, 2013 and December 30, 2012, the carrying values of Cash and cash equivalents and Restricted cash and cash equivalents approximated their fair values due to the short term nature of these investments. | ||||||||||||||||||||
The following table summarizes the fair value and carrying value of other financial assets and liabilities that are not recognized at fair value on a recurring basis on the Condensed Consolidated Balance Sheet: | ||||||||||||||||||||
As at | ||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Carrying | Fair value | Fair value | Carrying | |||||||||||||||
hierarchy | asset | value | hierarchy | asset | value | |||||||||||||||
(liability) | (liability) | |||||||||||||||||||
Bearer deposit notes(1) | Level 2 | $ | 41,403 | $ | 41,403 | Level 2 | $ | 41,403 | $ | 41,403 | ||||||||||
Notes receivable, net(2) | Level 3 | $ | 11,742 | $ | 11,742 | Level 3 | $ | 8,777 | $ | 8,777 | ||||||||||
Senior unsecured notes, series 1(3) | Level 2 | $ | (313,653 | ) | $ | (301,283 | ) | Level 2 | $ | (325,857 | ) | $ | (301,544 | ) | ||||||
Advertising fund term debt(4) | Level 3 | $ | (50,446 | ) | $ | (50,446 | ) | Level 3 | $ | (56,500 | ) | $ | (56,500 | ) | ||||||
Other debt(5) | Level 3 | $ | (124,687 | ) | $ | (68,825 | ) | Level 3 | $ | (125,000 | ) | $ | (60,223 | ) | ||||||
________________ | ||||||||||||||||||||
(1) | The Company holds these notes as collateral to reduce the carrying costs of the TRS. The interest rate on these notes resets every 90 days; therefore, the fair value of these notes, using a market approach, approximates the carrying value. | |||||||||||||||||||
(2) | Management generally estimates the current value of notes receivable, using a cost approach, based primarily on the estimated depreciated replacement cost of the underlying equipment held as collateral. | |||||||||||||||||||
(3) | The fair value of the senior unsecured notes, using a market approach, is based on publicly disclosed trades between arm’s length institutions as documented on Bloomberg LP. | |||||||||||||||||||
(4) | Management estimates the fair value of this variable rate debt using a market approach, based on prevailing interest rates plus an applicable margin. | |||||||||||||||||||
(5) | Management estimates the fair value of its Other debt, primarily consisting of contributions received related to the construction costs of certain restaurants, using an income approach, by discounting future cash flows using a Company risk-adjusted rate over the remaining term of the debt. |
Derivatives
Derivatives | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Derivatives | ' | |||||||||||||||||||||||||||
DERIVATIVES | ||||||||||||||||||||||||||||
As at | ||||||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||||||
Asset | Liability | Net | Classification on | Asset | Liability | Net | Classification on | |||||||||||||||||||||
asset | Condensed | asset | Condensed | |||||||||||||||||||||||||
(liability) | Consolidated | (liability) | Consolidated | |||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | ||||||||||||||||||||||||||||
Forward currency contracts(1) | $ | 2,317 | $ | (1,068 | ) | $ | 1,249 | Accounts receivable, net | $ | 494 | $ | (2,315 | ) | $ | (1,821 | ) | Accounts payable, net | |||||||||||
Interest rate swap(2) | $ | 11 | $ | — | $ | 11 | Other assets | $ | — | $ | — | $ | — | n/a | ||||||||||||||
2013 Interest rate forwards(3) | $ | — | $ | (7,235 | ) | $ | (7,235 | ) | Accounts payable, net | $ | — | $ | — | $ | — | n/a | ||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||
TRS(4) | $ | 18,541 | $ | — | $ | 18,541 | Other assets | $ | 8,614 | $ | (1,110 | ) | $ | 7,504 | Other assets | |||||||||||||
Forward currency contracts(1) | $ | 71 | $ | — | $ | 71 | Accounts receivable, net | $ | 5 | $ | (198 | ) | $ | (193 | ) | Accounts payable, net | ||||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Notional value as at September 29, 2013 of $151.9 million (December 30, 2012: $195.1 million), with maturities ranging between October 2013 and December 2014; no associated cash collateral. | |||||||||||||||||||||||||||
(2) | Notional value as at September 29, 2013 of $31.3 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. | |||||||||||||||||||||||||||
(3) | Notional value as at September 29, 2013 of $498.0 million (December 30, 2012: nil), with maturities in December 2013; no associated cash collateral. | |||||||||||||||||||||||||||
(4) | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 8), was $41.4 million as at September 29, 2013 (December 30, 2012: $41.4 million). The TRS have maturities annually, in May, between fiscal 2015 and fiscal 2019. | |||||||||||||||||||||||||||
Third quarter ended September 29, 2013 | Third quarter ended September 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
hedging instruments(1) | Condensed | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | |||||||||||||||||||||
Consolidated | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Statement of | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | (3,368 | ) | $ | (2,300 | ) | $ | (5,668 | ) | $ | (5,717 | ) | $ | 302 | $ | (5,415 | ) | ||||||||||
Interest rate swap(3) | Interest (expense) | (83 | ) | 59 | (24 | ) | — | — | — | |||||||||||||||||||
2010 Interest rate forwards(4) | Interest (expense) | — | 173 | 173 | — | 172 | 172 | |||||||||||||||||||||
2013 Interest rate forwards(5) | n/a | (7,235 | ) | — | (7,235 | ) | — | — | — | |||||||||||||||||||
Total | (10,686 | ) | (2,068 | ) | (12,754 | ) | (5,717 | ) | 474 | (5,243 | ) | |||||||||||||||||
Income tax effect | Income taxes | 915 | 594 | 1,509 | 1,569 | (125 | ) | 1,444 | ||||||||||||||||||||
Net of income taxes | $ | (9,771 | ) | $ | (1,474 | ) | $ | (11,245 | ) | $ | (4,148 | ) | $ | 349 | $ | (3,799 | ) | |||||||||||
Year-to-date period ended September 29, 2013 | Year-to-date period ended September 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
hedging instruments(1) | Condensed | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | |||||||||||||||||||||
Consolidated | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Statement of | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | 4,756 | $ | (1,685 | ) | $ | 3,071 | $ | (7,106 | ) | $ | (1,992 | ) | $ | (9,098 | ) | |||||||||||
Interest rate swap(3) | Interest (expense) | (128 | ) | 139 | 11 | — | — | — | ||||||||||||||||||||
2010 Interest rate forwards(4) | Interest (expense) | — | 519 | 519 | — | 518 | 518 | |||||||||||||||||||||
2013 Interest rate forwards(5) | n/a | (7,235 | ) | — | (7,235 | ) | — | — | — | |||||||||||||||||||
Total | (2,607 | ) | (1,027 | ) | (3,634 | ) | (7,106 | ) | (1,474 | ) | (8,580 | ) | ||||||||||||||||
Income tax effect | Income taxes | (1,226 | ) | 410 | (816 | ) | 2,011 | 384 | 2,395 | |||||||||||||||||||
Net of income taxes | $ | (3,833 | ) | $ | (617 | ) | $ | (4,450 | ) | $ | (5,095 | ) | $ | (1,090 | ) | $ | (6,185 | ) | ||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Excludes amounts related to ineffectiveness, as they were not significant. | |||||||||||||||||||||||||||
(2) | Other comprehensive income (“OCI”). | |||||||||||||||||||||||||||
(3) | In February 2013, the Tim Hortons Advertising and Promotion Fund (Canada) Inc. (“Ad Fund”) entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt. | |||||||||||||||||||||||||||
(4) | The Company entered into and settled interest rate forwards in fiscal 2010 relating to the Company’s outstanding term debt. | |||||||||||||||||||||||||||
(5) | The Company entered into interest rate forwards during the third quarter of fiscal 2013 in anticipation of the Company obtaining longer-term financing in the fourth quarter of 2013, barring unforeseen market conditions and subject to the negotiation and execution of agreements. | |||||||||||||||||||||||||||
The following table summarizes the (gain) loss on derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Classification on | Third quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
Condensed Consolidated | ||||||||||||||||||||||||||||
Statement of Operations | September 29, | September 30, 2012 | September 29, | September 30, 2012 | ||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||
TRS | General and administrative expenses | $ | (2,802 | ) | $ | 2,523 | $ | (11,037 | ) | $ | (889 | ) | ||||||||||||||||
Forward currency contracts | Cost of sales | 85 | 315 | (264 | ) | 1,274 | ||||||||||||||||||||||
Total (gain) loss, net | $ | (2,717 | ) | $ | 2,838 | $ | (11,301 | ) | $ | 385 | ||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
On June 12, 2008, a proposed class action was issued against the Company and certain of its affiliates in the Ontario Superior Court by two of its franchisees, alleging, among other things, that the Company’s Always Fresh baking system and lunch offerings led to lower franchisee profitability. The claim, as amended, asserted damages of approximately $1.95 billion on behalf of certain Canadian restaurant owners. The action was dismissed in its entirety by summary judgment on February 24, 2012 and all avenues of appeal were exhausted during the second quarter of 2013. | |
In addition, the Company and its subsidiaries are parties to various legal actions and complaints arising in the ordinary course of business. As of the date hereof, the Company believes that the ultimate resolution of such matters will not materially affect the Company’s financial condition and earnings. |
Common_Shares
Common Shares | 9 Months Ended |
Sep. 29, 2013 | |
Equity [Abstract] | ' |
Common Shares | ' |
COMMON SHARES | |
Share repurchase programs | |
On February 20, 2013, our Board of Directors approved a new share repurchase program (“2013 Program”) authorizing the repurchase of common shares, not to exceed the regulatory maximum of 15,239,531 shares, representing 10% of our public float, as defined under the TSX rules as of February 14, 2013, or $250.0 million in the aggregate. The 2013 Program received regulatory approval from the TSX. On August 8, 2013, the 2013 Program was amended to remove the former maximum dollar cap. Under the 2013 Program, the Company’s common shares may be purchased through a combination of 10b5-1 automatic trading plan purchases, as well as purchases at management’s discretion in compliance with regulatory requirements, and given market, cost and other considerations. Repurchases may be made on the TSX, the New York Stock Exchange (“NYSE”), and/or other Canadian marketplaces, subject to compliance with applicable regulatory requirements, or by such other means as may be permitted by the TSX and/or NYSE, and under applicable laws, including private agreements under an issuer bid exemption order issued by a securities regulatory authority in Canada. Purchases made by way of private agreements under an issuer bid exemption order by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order. The 2013 Program commenced on February 26, 2013 and is due to expire on February 25, 2014, or earlier if the 10% share maximum is reached. Common shares purchased pursuant to the 2013 Program will be cancelled. The 2013 Program may be terminated by us at any time, subject to compliance with regulatory requirements. As such, there can be no assurance regarding the total number of shares or the equivalent dollar value of shares that may be repurchased under the 2013 Program. | |
Share repurchase activity for fiscal 2013 and 2012 is reflected in the Condensed Consolidated Statement of Equity; all shares repurchased were cancelled. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
RSUs | $ | 1,510 | $ | 2,362 | $ | 5,090 | $ | 8,152 | ||||||||
Stock options and tandem SARs | 2,573 | (1,416 | ) | 9,912 | 3,634 | |||||||||||
DSUs(1) | 514 | (93 | ) | 2,130 | 936 | |||||||||||
Total stock-based compensation expense(2) | $ | 4,597 | $ | 853 | $ | 17,132 | $ | 12,722 | ||||||||
________________ | ||||||||||||||||
(1) | Deferred share units (“DSUs”). | |||||||||||||||
(2) | Generally included in General and administrative expenses. | |||||||||||||||
The Company has entered into TRS contracts as economic hedges, covering 1.0 million of the Company’s underlying common shares, which represents a portion of its outstanding stock options with tandem SARs, and substantially all of its DSUs. The Company recognized a gain of $2.8 million in the third quarter ended September 29, 2013 (third quarter fiscal 2012: loss of $2.5 million) and a gain of $11.0 million in the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: gain of $0.9 million) in General and administrative expenses (see note 9) related to the revaluation of the TRS contracts. | ||||||||||||||||
The Company’s Human Resource and Compensation Committee (“HRCC”) approves all stock-based compensation awards. All awards granted in May 2013 were granted under the Company’s 2012 Stock Incentive Plan (the “2012 Plan”). Details of stock-based compensation grants and settlements are set forth below. | ||||||||||||||||
Restricted stock units | ||||||||||||||||
The following table is a summary of activity for RSUs granted to employees under the Company’s 2006 and 2012 Stock Incentive Plans, for the periods set forth below: | ||||||||||||||||
Restricted Stock | Weighted | |||||||||||||||
Units | Average Grant | |||||||||||||||
Value per Unit | ||||||||||||||||
(in thousands) | (in dollars) | |||||||||||||||
Balance as at January 1, 2012 | 306 | $ | 40.91 | |||||||||||||
Granted | 192 | 54.49 | ||||||||||||||
Dividend equivalent rights | 6 | 50.3 | ||||||||||||||
Vested and settled(1) | (160 | ) | 36.72 | |||||||||||||
Forfeited | (32 | ) | 46.35 | |||||||||||||
Balance as at December 30, 2012 | 312 | $ | 50.91 | |||||||||||||
Granted | 159 | 56.69 | ||||||||||||||
Dividend equivalent rights | 5 | 55 | ||||||||||||||
Vested and settled(1) | (44 | ) | 51.39 | |||||||||||||
Forfeited | (19 | ) | 52.03 | |||||||||||||
Balance as at September 29, 2013 | 413 | $ | 53.08 | |||||||||||||
________________ | ||||||||||||||||
(1) | Generally settled with common shares from the TDL RSU Employee Benefit Plan Trust (“Trust”). | |||||||||||||||
In the year-to-date period ended September 29, 2013, the Company funded the Trust, which in turn, purchased approximately 43,000 common shares for $2.5 million (year-to-date period fiscal 2012: 112,000 common shares for $6.2 million). | ||||||||||||||||
Stock options and tandem SARs | ||||||||||||||||
Stock Options with SARs | Weighted Average | |||||||||||||||
Exercise Price | ||||||||||||||||
(in thousands) | (in dollars) | |||||||||||||||
Balance as at January 1, 2012 | 1,182 | $ | 36.05 | |||||||||||||
Granted | 254 | 54.86 | ||||||||||||||
Exercised(1) | (218 | ) | 31.64 | |||||||||||||
Forfeited | (46 | ) | 41.66 | |||||||||||||
Balance as at December 30, 2012 | 1,172 | $ | 40.73 | |||||||||||||
Granted | 360 | 57.84 | ||||||||||||||
Exercised(1) | (256 | ) | 35.85 | |||||||||||||
Forfeited | (10 | ) | 52.38 | |||||||||||||
Balance as at September 29, 2013 | 1,266 | $ | 46.49 | |||||||||||||
________________ | ||||||||||||||||
(1) | Total cash settlement, net of applicable withholding taxes, of $3.8 million of SARs in the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: 130,000 units for $2.1 million). The associated options were cancelled. | |||||||||||||||
Deferred share units | ||||||||||||||||
Approximately 10,600 DSUs were granted during the year-to-date period of fiscal 2013 (year-to-date period fiscal 2012: 12,200) at a fair market value of $55.91 (year-to-date period fiscal 2012: $52.57). A settlement of 10,600 DSUs occurred during the third quarter and year-to-date period of fiscal 2013 (year-to-date period fiscal 2012: 9,400 DSUs). |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ||||||||||||||||||||||||
VIEs for which the Company is the primary beneficiary | ||||||||||||||||||||||||
Non-owned restaurants | ||||||||||||||||||||||||
The Company has consolidated 345 Non-owned restaurants as at September 29, 2013 (December 30, 2012: 365 restaurants), or approximately 7.9% of the Company’s total systemwide restaurants (December 30, 2012: 8.6%). | ||||||||||||||||||||||||
Advertising Funds | ||||||||||||||||||||||||
The Ad Fund has rolled out a program to acquire and install LCD screens, media engines, drive-thru menu boards and ancillary equipment for our restaurants (“Expanded Menu Board Program”). The advertising levies, depreciation, interest costs, capital expenditures and financing associated with the Expanded Menu Board Program are presented on a gross basis on the Condensed Consolidated Statement of Operations and Cash Flows. The Ad Fund has purchased $63.0 million of equipment cumulatively since the inception of the Expanded Menu Board Program in fiscal 2011. In February 2013, the Ad Fund entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt related to the Expanded Menu Board Program. | ||||||||||||||||||||||||
The Canadian and U.S. advertising funds spent approximately $53.4 million in the third quarter of fiscal 2013 (third quarter fiscal 2012: $49.3 million) and $182.6 million in the year-to-date period of fiscal 2013 (year-to-date period fiscal 2012: $171.1 million). Company contributions to the Canadian and U.S. advertising funds consisted of the following: | ||||||||||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
Company contributions | $ | 2,651 | $ | 2,651 | $ | 8,163 | $ | 7,972 | ||||||||||||||||
Contributions from consolidated non-owned restaurants | 3,576 | 3,169 | 10,301 | 9,232 | ||||||||||||||||||||
Total Company contributions | $ | 6,227 | $ | 5,820 | $ | 18,464 | $ | 17,204 | ||||||||||||||||
The revenues and expenses associated with the Company’s consolidated Non-owned restaurants and advertising funds presented on a gross basis, prior to consolidation adjustments, are as follows: | ||||||||||||||||||||||||
Third quarter ended | ||||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs | fund VIEs | VIEs | VIEs | fund VIEs | VIEs | |||||||||||||||||||
Sales | $ | 96,049 | $ | — | $ | 96,049 | $ | 85,442 | $ | — | $ | 85,442 | ||||||||||||
Advertising levies(1) | — | 2,865 | 2,865 | — | 1,727 | 1,727 | ||||||||||||||||||
Total revenues | 96,049 | 2,865 | 98,914 | 85,442 | 1,727 | 87,169 | ||||||||||||||||||
Cost of sales(2) | 94,302 | — | 94,302 | 83,926 | — | 83,926 | ||||||||||||||||||
Operating expenses(1) | — | 2,379 | 2,379 | — | 1,467 | 1,467 | ||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | — | — | — | ||||||||||||||||||
Operating income | 1,306 | 486 | 1,792 | 1,516 | 260 | 1,776 | ||||||||||||||||||
Interest expense | — | 486 | 486 | — | 260 | 260 | ||||||||||||||||||
Income before taxes | 1,306 | — | 1,306 | 1,516 | — | 1,516 | ||||||||||||||||||
Income taxes | 214 | — | 214 | 260 | — | 260 | ||||||||||||||||||
Net income attributable to non-controlling interests | $ | 1,092 | $ | — | $ | 1,092 | $ | 1,256 | $ | — | $ | 1,256 | ||||||||||||
Year-to-date period ended | ||||||||||||||||||||||||
29-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs | fund VIEs | VIEs | VIEs | fund VIEs | VIEs | |||||||||||||||||||
Sales | $ | 276,273 | $ | — | $ | 276,273 | $ | 248,915 | $ | — | $ | 248,915 | ||||||||||||
Advertising levies(1) | — | 7,965 | 7,965 | — | 3,270 | 3,270 | ||||||||||||||||||
Total revenues | 276,273 | 7,965 | 284,238 | 248,915 | 3,270 | 252,185 | ||||||||||||||||||
Cost of sales(2) | 272,648 | — | 272,648 | 244,580 | — | 244,580 | ||||||||||||||||||
Operating expenses(1) | — | 6,771 | 6,771 | — | 2,529 | 2,529 | ||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | — | — | — | ||||||||||||||||||
Operating income | 3,184 | 1,194 | 4,378 | 4,335 | 741 | 5,076 | ||||||||||||||||||
Interest expense | — | 1,194 | 1,194 | — | 741 | 741 | ||||||||||||||||||
Income before taxes | 3,184 | — | 3,184 | 4,335 | — | 4,335 | ||||||||||||||||||
Income taxes | 514 | — | 514 | 709 | — | 709 | ||||||||||||||||||
Net income attributable to non-controlling interests | $ | 2,670 | $ | — | $ | 2,670 | $ | 3,626 | $ | — | $ | 3,626 | ||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Generally, the advertising levies that are not related to the Expanded Menu Board Program are netted with advertising and marketing expenses incurred by the advertising funds in operating expenses, as these contributions are designated for specific purposes. The Company acts as an agent with regard to these contributions. | |||||||||||||||||||||||
(2) | Includes rents, royalties, advertising expenses and product purchases from the Company which are eliminated upon the consolidation of these VIEs. | |||||||||||||||||||||||
(3) | The Company recognized an impairment charge in the third quarter of 2013 related to certain underperforming markets in the U.S. (see note 14). | |||||||||||||||||||||||
The assets and liabilities associated with the Company’s consolidated Non-owned restaurants and advertising funds presented on a gross basis, prior to consolidation adjustments, are as follows: | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | |||||||||||||||||||||
VIEs | fund VIEs | VIEs | fund VIEs | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,299 | $ | — | $ | 10,851 | $ | — | ||||||||||||||||
Advertising fund restricted assets – current | — | 48,722 | — | 45,337 | ||||||||||||||||||||
Other current assets | 7,355 | — | 6,770 | — | ||||||||||||||||||||
Property and equipment, net | 19,957 | 65,515 | 19,536 | 57,925 | ||||||||||||||||||||
Other long-term assets | 57 | 1,816 | 572 | 2,095 | ||||||||||||||||||||
Total assets | $ | 35,668 | $ | 116,053 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
Notes payable to Tim Hortons Inc. – current(1) | $ | 12,321 | $ | — | $ | 13,637 | $ | — | ||||||||||||||||
Advertising fund liabilities – current | — | 63,672 | — | 44,893 | ||||||||||||||||||||
Other current liabilities (2) | 11,934 | 8,345 | 14,548 | 9,919 | ||||||||||||||||||||
Notes payable to Tim Hortons Inc. – long-term(1) | 1,145 | — | 804 | — | ||||||||||||||||||||
Long-term debt(2) | — | 42,375 | — | 46,849 | ||||||||||||||||||||
Other long-term liabilities | 9,240 | 1,661 | 5,887 | 3,696 | ||||||||||||||||||||
Total liabilities | 34,640 | 116,053 | 34,876 | 105,357 | ||||||||||||||||||||
Equity of VIEs | 1,028 | — | 2,853 | — | ||||||||||||||||||||
Total liabilities and equity | $ | 35,668 | $ | 116,053 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Various assets and liabilities are eliminated upon the consolidation of these VIEs, the most significant of which are the FIP Notes payable to the Company, which reduces the Notes receivable, net reported on the Condensed Consolidated Balance Sheet (see note 5). | |||||||||||||||||||||||
(2) | Includes $50.4 million of debt relating to the Expanded Menu Board Program (December 30, 2012: $56.5 million), of which $8.1 million is recognized in Other current liabilities (December 30, 2012: $9.7 million) with the remainder recognized as Long-term debt. | |||||||||||||||||||||||
The liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by the Company’s creditors as they are not legally included within the Company’s general assets. | ||||||||||||||||||||||||
Trust | ||||||||||||||||||||||||
In connection with RSUs granted to certain employees, the Company established the Trust, which purchases and retains common shares of the Company to satisfy the Company’s contractual obligation to deliver shares to settle RSU awards for most participating Canadian employees. The cost of the shares held by the Trust as at September 29, 2013 of $15.0 million (December 30, 2012: $13.4 million), is presented as a reduction in outstanding common shares on the Condensed Consolidated Balance Sheet. | ||||||||||||||||||||||||
VIEs for which the Company is not the primary beneficiary | ||||||||||||||||||||||||
These VIEs are primarily real estate ventures, the most significant being the TIMWEN Partnership. The Company does not consolidate these entities as control is considered to be shared by both the Company and the other joint owner(s). |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Reporting | ' | |||||||||||||||
SEGMENT REPORTING | ||||||||||||||||
The Company operates exclusively in the quick service restaurant industry. Effective for the first quarter of fiscal 2013, the chief decision maker views and evaluates the Company’s reportable segments as follows: | ||||||||||||||||
Canadian and U.S. business units.The results of each of the Canadian and U.S. business units includes substantially all restaurant-facing activities, such as: (i) rents and royalties; (ii) product sales through our supply chain as well as an allocation of supply chain income based on the business units’ respective systemwide sales; (iii) franchise fees; (iv) corporate restaurants; and (v) business-unit-related general and administrative expenses. The business units exclude the effect of consolidating VIEs, consistent with how the chief decision maker views and evaluates the respective business units’ results. | ||||||||||||||||
Corporate services. Corporate services comprises services to support the Canadian and U.S. business units, including: (i) general and administrative expenses; (ii) manufacturing income, and to a much lesser extent, manufacturing sales to third parties; and (iii) income related to our distribution services, including the timing of variances arising primarily from commodity costs and the related effect on pricing, which generally reverse within a year, associated with our supply chain management. Our supply chain management involves securing a stable source of supply, which is intended to provide our restaurant owners with consistent, predictable pricing. Many of these products are typically priced based on a fixed-dollar mark-up and can relate to a pricing period which may extend beyond a quarter. Corporate services also includes the results of our International operations, which are currently not significant. | ||||||||||||||||
Previously, the results of manufacturing activities and distribution services were included within the respective geographic segment where the facility was located. Additionally, we have revised the allocation of shared restaurant services, such as restaurant technologies and operations standards, between the Canadian and U.S. business units. | ||||||||||||||||
The Company has reclassified the segment data for the prior period to conform to the current period’s presentation. | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Revenues(1) | ||||||||||||||||
Canada | $ | 676,006 | $ | 672,684 | $ | 1,927,361 | $ | 1,923,928 | ||||||||
U.S. | 47,019 | 39,254 | 132,687 | 120,837 | ||||||||||||
Corporate services | 3,414 | 2,933 | 12,743 | 11,955 | ||||||||||||
Total reportable segments | 726,439 | 714,871 | 2,072,791 | 2,056,720 | ||||||||||||
VIEs | 98,914 | 87,169 | 284,238 | 252,185 | ||||||||||||
Total | $ | 825,353 | $ | 802,040 | $ | 2,357,029 | $ | 2,308,905 | ||||||||
Operating Income (Loss) | ||||||||||||||||
Canada | $ | 179,597 | $ | 171,990 | $ | 500,178 | $ | 484,576 | ||||||||
U.S.(2) | 2,717 | 1,458 | 6,214 | 7,213 | ||||||||||||
Corporate services | (14,325 | ) | (13,000 | ) | (26,414 | ) | (42,902 | ) | ||||||||
Total reportable segments | 167,989 | 160,448 | 479,978 | 448,887 | ||||||||||||
VIEs(2) | 1,792 | 1,776 | 4,378 | 5,076 | ||||||||||||
Corporate reorganization expenses | (953 | ) | (8,565 | ) | (11,032 | ) | (9,842 | ) | ||||||||
Consolidated Operating Income | 168,828 | 153,659 | 473,324 | 444,121 | ||||||||||||
Interest, Net | (8,487 | ) | (7,749 | ) | (24,353 | ) | (22,863 | ) | ||||||||
Income before income taxes | $ | 160,341 | $ | 145,910 | $ | 448,971 | $ | 421,258 | ||||||||
________________ | ||||||||||||||||
(1) | There are no inter-segment revenues included in the above table. | |||||||||||||||
(2) | The Company recognized an impairment charge of $2.9 million in the third quarter and year-to-date period of 2013 (third quarter of fiscal 2012: nil; year-to-date period of 2012 $(0.4) million) related to certain underperforming markets in the U.S., $2.5 million of which is recognized in our U.S. segment (third quarter of 2012: nil; year-to-date period of 2012: $(0.4) million), remainder recognized in VIEs. | |||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Capital expenditures | ||||||||||||||||
Canada | $ | 30,275 | $ | 27,462 | $ | 90,696 | $ | 70,608 | ||||||||
U.S. | 8,913 | 15,827 | 32,059 | 34,516 | ||||||||||||
Corporate services | 5,266 | 2,895 | 9,971 | 7,688 | ||||||||||||
Total reportable segments | $ | 44,454 | $ | 46,184 | $ | 132,726 | $ | 112,812 | ||||||||
The following table provides a reconciliation of reportable segment Property and equipment, net and Total assets to consolidated Property and equipment, net and consolidated Total assets, respectively: | ||||||||||||||||
As at | ||||||||||||||||
September 29, | December 30, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total Property and equipment, net | ||||||||||||||||
Canada(1) | $ | 962,600 | $ | 915,733 | ||||||||||||
U.S.(1) | 398,123 | 378,457 | ||||||||||||||
Corporate services(2) | 173,259 | 184,938 | ||||||||||||||
Total reportable segments | 1,533,982 | 1,479,128 | ||||||||||||||
VIEs | 81,898 | 74,180 | ||||||||||||||
Consolidated Property and equipment, net | $ | 1,615,880 | $ | 1,553,308 | ||||||||||||
Total Assets | ||||||||||||||||
Canada | $ | 1,246,847 | $ | 1,175,552 | ||||||||||||
U.S. | 428,247 | 400,231 | ||||||||||||||
Corporate services | 278,880 | 281,043 | ||||||||||||||
Total reportable segments | 1,953,974 | 1,856,826 | ||||||||||||||
VIEs | 148,153 | 139,462 | ||||||||||||||
Unallocated assets(3) | 163,625 | 287,891 | ||||||||||||||
Consolidated Total assets | $ | 2,265,752 | $ | 2,284,179 | ||||||||||||
_______________ | ||||||||||||||||
(1) | Includes primarily restaurant-related assets such as land, building and leasehold improvements. | |||||||||||||||
(2) | Includes property and equipment related to distribution services, manufacturing activities, and other corporate assets. | |||||||||||||||
(3) | Includes Cash and cash equivalents, Restricted cash and cash equivalents, Deferred income taxes and Prepaids, except as related to VIEs. | |||||||||||||||
Consolidated Sales and Cost of sales comprise the following: | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Sales | ||||||||||||||||
Distribution sales | $ | 473,641 | $ | 475,243 | $ | 1,373,389 | $ | 1,386,245 | ||||||||
Company-operated restaurant sales | 6,090 | 7,856 | 18,567 | 20,455 | ||||||||||||
Sales from VIEs | 96,049 | 85,442 | 276,273 | 248,915 | ||||||||||||
Total Sales | $ | 575,780 | $ | 568,541 | $ | 1,668,229 | $ | 1,655,615 | ||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Cost of sales | ||||||||||||||||
Distribution cost of sales | $ | 411,290 | $ | 414,439 | $ | 1,185,862 | $ | 1,214,611 | ||||||||
Company-operated restaurant cost of sales | 6,207 | 8,042 | 19,830 | 21,819 | ||||||||||||
Cost of sales from VIEs | 84,359 | 75,136 | 246,610 | 219,007 | ||||||||||||
Total Cost of sales | $ | 501,856 | $ | 497,617 | $ | 1,452,302 | $ | 1,455,437 | ||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 29, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
On October 4, 2013, we entered into an additional, 364-day Revolving Bank Facility (the “2013 Revolving Bank Facility”), which will mature on October 3, 2014. The 2013 Revolving Bank Facility provides for up to $400.0 million in revolving credit available at the request of the Company. The Company has the right to request an increase in the commitments by an aggregate of up to $400.0 million, provided that no default has occurred and is continuing, and further provided that such amount shall be permanently reduced by an amount equal to 100% of the net cash proceeds raised from any debt issuance by the Company, up to a maximum of $400.0 million. No lender shall be required to increase any of its own lending commitment under the increased commitment facility without consenting to such increase. The 2013 Revolving Bank Facility is available for general corporate purposes, including the purchase by the Company of its common shares under any normal course or substantial issuer bid, by private agreement, or otherwise, or other cash distribution to shareholders, in each case made in compliance with applicable securities laws and the requirements of the TSX. The 2013 Revolving Bank Facility contains various representations, warranties and covenants, which are substantially similar to those set forth in our existing revolving bank facility. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2013 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
Description of business | |
Tim Hortons Inc. is a corporation governed by the Canada Business Corporations Act. References herein to “Tim Hortons” or the “Company” refer to Tim Hortons Inc. and its subsidiaries. The Company’s principal business is the development and franchising of quick service restaurants primarily in Canada and the U.S., that serve premium coffee, hot and cold specialty drinks (including lattes, cappuccinos and espresso shots), specialty teas and fruit smoothies, fresh baked goods, grilled Panini and classic sandwiches, wraps, soups, prepared foods and other food products. As the franchisor, we collect royalty revenue from franchised restaurant sales. The Company also controls the real estate underlying a substantial majority of the system restaurants, which generates another source of revenue. In addition, the Company has vertically integrated manufacturing, warehouse and distribution operations which supply a significant portion of our system restaurants with coffee and other beverages, non-perishable food, supplies, packaging and equipment. | |
Basis of Presentation and Principles of Consolidation | ' |
Basis of presentation and principles of consolidation | |
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments (all of which are normal and recurring in nature) necessary to state fairly the Company’s financial position as at September 29, 2013, and the results of operations, comprehensive income and cash flows for the third quarters ended September 29, 2013 and September 30, 2012. These Condensed Consolidated Financial Statements should be read in conjunction with the audited 2012 Consolidated Financial Statements which are contained in the Company’s Annual Report on Form 10-K for the year ended December 30, 2012 filed with the SEC and the CSA on February 21, 2013. The December 30, 2012 Condensed Consolidated Balance Sheet included herein was derived from the audited 2012 Consolidated Financial Statements, but does not include all of the year-end disclosures required by U.S. GAAP. | |
The Condensed Consolidated Financial Statements include the results and balances of Tim Hortons Inc., its wholly-owned subsidiaries and certain entities which the Company consolidates as variable interest entities (“VIEs”) (see note 13). Intercompany accounts and transactions among consolidated entities have been eliminated upon consolidation. Investments in non-consolidated affiliates over which the Company exercises significant influence, but for which the Company is not the primary beneficiary and does not have control, are accounted for using the equity method. The Company’s share of the earnings or losses of these non-consolidated affiliates is included in Equity income, which is included as part of operating income because these investments are operating ventures closely integrated into the Company’s business operations. | |
Accounting Changes - New Accounting Standards | ' |
Accounting changes – new accounting standards | |
In the first quarter of fiscal 2013, we prospectively adopted Accounting Standards Update No. 2013-02 – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires additional disclosure of significant reclassifications out of comprehensive income into net income, if the amount is required to be reclassified in its entirety (see Condensed Consolidated Statement of Equity and note 9). |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||
Sep. 29, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Franchised Locations and System Activity | ' | |||||||||||
The following table outlines the Company’s systemwide restaurant count and activity: | ||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||
Systemwide Restaurant Count | ||||||||||||
Franchised restaurants in operation – beginning of period | 4,284 | 4,050 | 4,242 | 3,996 | ||||||||
Restaurants opened | 51 | 72 | 111 | 140 | ||||||||
Restaurants closed | (5 | ) | (6 | ) | (27 | ) | (18 | ) | ||||
Net transfers within the franchised system | 2 | (1 | ) | 6 | (3 | ) | ||||||
Franchised restaurants in operation – end of period | 4,332 | 4,115 | 4,332 | 4,115 | ||||||||
Company-operated restaurants – end of period | 18 | 23 | 18 | 23 | ||||||||
Total systemwide restaurants – end of period(1) | 4,350 | 4,138 | 4,350 | 4,138 | ||||||||
% of restaurants franchised – end of period | 99.6 | % | 99.4 | % | 99.6 | % | 99.4 | % | ||||
________________ | ||||||||||||
(1) | Includes various types of standard and non-standard restaurant formats in Canada, the U.S. and the Gulf Cooperation Council (“GCC”) with differing restaurant sizes and menu offerings as well as self-serve kiosks, which serve primarily coffee products and a limited product selection. Collectively, the Company refers to all of these restaurants and kiosks as “systemwide restaurants.” |
Corporate_Reorganization_Expen1
Corporate Reorganization Expenses (Tables) | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Corporate Reorganization Expenses | ' | |||||||||||||||
The Company completed the realignment of roles and responsibilities under its new organizational structure at the end of the first quarter of fiscal 2013, and incurred the following expenses, as set forth in the table below: | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Termination costs | $ | — | $ | 4,255 | $ | 6,632 | $ | 4,255 | ||||||||
Professional fees and other | — | 2,079 | 2,543 | 3,356 | ||||||||||||
CEO transition costs | 953 | 2,231 | 1,857 | 2,231 | ||||||||||||
Total Corporate reorganization expenses | $ | 953 | $ | 8,565 | $ | 11,032 | $ | 9,842 | ||||||||
Accrued Reorganization Expenses | ' | |||||||||||||||
Termination | Professional | CEO transition | Total | |||||||||||||
costs | fees and other | costs | ||||||||||||||
Cost incurred during fiscal 2012 | $ | 9,016 | $ | 7,602 | $ | 2,256 | $ | 18,874 | ||||||||
Paid during fiscal 2012 | (1,458 | ) | (3,775 | ) | (411 | ) | (5,644 | ) | ||||||||
Accrued as at December 30, 2012 | 7,558 | 3,827 | 1,845 | 13,230 | ||||||||||||
Cost incurred during fiscal 2013 to-date | 6,632 | 2,543 | 1,857 | 11,032 | ||||||||||||
Paid during fiscal 2013 to-date | (12,354 | ) | (6,141 | ) | (210 | ) | (18,705 | ) | ||||||||
Accrued as at September 29, 2013(1) | $ | 1,836 | $ | 229 | $ | 3,492 | $ | 5,557 | ||||||||
_____________ | ||||||||||||||||
(1) | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million). |
Earnings_Per_Common_Share_Attr1
Earnings Per Common Share Attributable to Tim Hortons Inc. (Tables) | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computations of Basic and Diluted Earnings Per Common Share | ' | |||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, | September 30, 2012 | September 29, | September 30, 2012 | |||||||||||||
2013 | 2013 | |||||||||||||||
Net income attributable to Tim Hortons Inc. | $ | 113,863 | $ | 105,698 | $ | 323,770 | $ | 302,544 | ||||||||
Weighted average shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,342 | 154,478 | 152,379 | 155,607 | ||||||||||||
Dilutive impact of RSUs(1) | 264 | 304 | 285 | 329 | ||||||||||||
Dilutive impact of stock options with tandem SARs(2) | 258 | 285 | 255 | 311 | ||||||||||||
Weighted average shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,864 | 155,067 | 152,919 | 156,247 | ||||||||||||
Basic earnings per common share attributable to Tim Hortons Inc. | $ | 0.76 | $ | 0.68 | $ | 2.12 | $ | 1.94 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.75 | $ | 0.68 | $ | 2.12 | $ | 1.94 | ||||||||
________________ | ||||||||||||||||
(1) | Restricted stock units (“RSUs”). | |||||||||||||||
(2) | Stock appreciation rights (“SARs”). |
Notes_Receivable_Net_Tables
Notes Receivable, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Notes Receivable by Segment | ' | |||||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Gross | VIEs(2) | Total | Gross | VIEs(2) | Total | |||||||||||||||||||
Franchise Incentive Program (“FIP”) notes(1) | $ | 18,806 | $ | (13,466 | ) | $ | 5,340 | $ | 20,235 | $ | (14,441 | ) | $ | 5,794 | ||||||||||
Other notes receivable(3) | 8,567 | — | 8,567 | 4,773 | — | 4,773 | ||||||||||||||||||
Notes receivable | $ | 27,373 | $ | (13,466 | ) | 13,907 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance | (2,165 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 11,742 | $ | 8,777 | ||||||||||||||||||||
Current portion, net | $ | 6,565 | $ | 7,531 | ||||||||||||||||||||
Long-term portion, net | $ | 5,177 | $ | 1,246 | ||||||||||||||||||||
Notes Receivable by Class and Aging | ' | |||||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Class and Aging | Gross | VIEs(2) | Total | Gross | VIEs(2) | Total | ||||||||||||||||||
Current status (FIP notes and other) | $ | 10,283 | $ | (1,917 | ) | $ | 8,366 | $ | 6,969 | $ | (1,269 | ) | $ | 5,700 | ||||||||||
Past-due status < 90 days (FIP notes) | — | — | — | 407 | (407 | ) | — | |||||||||||||||||
Past-due status > 90 days (FIP notes) | 17,090 | (11,549 | ) | 5,541 | 17,632 | (12,765 | ) | 4,867 | ||||||||||||||||
Notes receivable | $ | 27,373 | $ | (13,466 | ) | $ | 13,907 | $ | 25,008 | $ | (14,441 | ) | $ | 10,567 | ||||||||||
Allowance | (2,165 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 11,742 | $ | 8,777 | ||||||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | The Company has outstanding FIP arrangements with certain U.S. restaurant owners, which generally provided interest-free financing for the purchase of certain restaurant equipment, furniture, trade fixtures and signage. | |||||||||||||||||||||||
(2) | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Condensed Consolidated Balance Sheet (see note 13). | |||||||||||||||||||||||
(3) | Relates primarily to notes issued to vendors in conjunction with the financing of a property sale, and on various equipment and other financing programs. |
Inventories_and_Other_Net_Tabl
Inventories and Other, Net (Tables) | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories and Other, Net | ' | |||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 27,745 | $ | 19,941 | ||||
Finished goods | 76,180 | 75,660 | ||||||
103,925 | 95,601 | |||||||
Inventory obsolescence provision | (920 | ) | (1,015 | ) | ||||
Inventories, net | 103,005 | 94,586 | ||||||
Prepaids and other | 8,925 | 12,414 | ||||||
Total Inventories and other, net | $ | 111,930 | $ | 107,000 | ||||
Accounts_Payable_Tim_Card_Obli1
Accounts Payable, Tim Card Obligation and Other, and Other Long-Term Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable | ' | |||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Accounts payable | $ | 128,334 | $ | 126,312 | ||||
Construction holdbacks and accruals | 46,906 | 31,008 | ||||||
Corporate reorganization accrual (note 2) | 4,862 | 12,442 | ||||||
Total Accounts payable | $ | 180,102 | $ | 169,762 | ||||
Tim Card Obligation and Other | ' | |||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Tim Card obligation | $ | 104,682 | $ | 159,745 | ||||
Contingent rent expense accrual | 9,645 | 9,962 | ||||||
Maidstone Bakeries supply contract deferred liability | 7,553 | 7,929 | ||||||
Other accrued liabilities(1) | 29,117 | 20,235 | ||||||
Total Accrued liabilities, Other | $ | 150,997 | $ | 197,871 | ||||
________________ | ||||||||
(1) | Includes deferred revenues, deposits, and various equipment and other accruals. | |||||||
Other Long-Term Liabilities | ' | |||||||
As at | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Accrued rent leveling liability | $ | 30,875 | $ | 29,244 | ||||
Uncertain tax position liability(1) | 32,862 | 28,610 | ||||||
Stock-based compensation liabilities (note 12) | 23,867 | 17,479 | ||||||
Maidstone Bakeries supply contract deferred liability | 9,781 | 15,352 | ||||||
Other accrued long-term liabilities(2) | 18,367 | 18,929 | ||||||
Total Other long-term liabilities | $ | 115,752 | $ | 109,614 | ||||
________________ | ||||||||
(1) | Includes accrued interest. | |||||||
(2) | Includes deferred revenues and various other accruals. |
Fair_Values_Tables
Fair Values (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheet | ' | |||||||||||||||||||
Financial assets and liabilities measured at fair value | ||||||||||||||||||||
As at | ||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | |||||||||||||||||
hierarchy | asset | hierarchy | asset | |||||||||||||||||
(liability)(1) | (liability)(1) | |||||||||||||||||||
Derivatives | ||||||||||||||||||||
Forward currency contracts(2) | Level 2 | $ | 1,320 | Level 2 | $ | (2,014 | ) | |||||||||||||
Interest rate swap(3) | Level 2 | 11 | n/a | — | ||||||||||||||||
2013 Interest rate forwards(4) | Level 2 | (7,235 | ) | n/a | — | |||||||||||||||
Total return swaps (“TRS”)(5) | Level 2 | 18,541 | Level 2 | 7,504 | ||||||||||||||||
Total Derivatives | $ | 12,637 | $ | 5,490 | ||||||||||||||||
________________ | ||||||||||||||||||||
(1) | The Company values its derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs to the valuation model. | |||||||||||||||||||
(2) | The fair value of forward currency contracts is determined using prevailing exchange rates. | |||||||||||||||||||
(3) | The fair value is estimated using discounted cash flows and market-based observable inputs, including interest rate yield curves and discount rates. | |||||||||||||||||||
(4) | Interest rate forwards are valued using a regression analysis that considers the respective Government of Canada bond yield and over-the-counter interest rates representing the yield for lending securities against cash, also known as repo rates. The regression analysis includes using a hypothetical derivative approach for both prospective and retrospective effectiveness assessments. | |||||||||||||||||||
(5) | The fair value of the TRS is determined using the Company’s common share closing price on the last business day of the fiscal period, as quoted on the Toronto Stock Exchange (“TSX”). | |||||||||||||||||||
Fair Value and Carrying Value of Other Financial Assets and Liabilities | ' | |||||||||||||||||||
The following table summarizes the fair value and carrying value of other financial assets and liabilities that are not recognized at fair value on a recurring basis on the Condensed Consolidated Balance Sheet: | ||||||||||||||||||||
As at | ||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Carrying | Fair value | Fair value | Carrying | |||||||||||||||
hierarchy | asset | value | hierarchy | asset | value | |||||||||||||||
(liability) | (liability) | |||||||||||||||||||
Bearer deposit notes(1) | Level 2 | $ | 41,403 | $ | 41,403 | Level 2 | $ | 41,403 | $ | 41,403 | ||||||||||
Notes receivable, net(2) | Level 3 | $ | 11,742 | $ | 11,742 | Level 3 | $ | 8,777 | $ | 8,777 | ||||||||||
Senior unsecured notes, series 1(3) | Level 2 | $ | (313,653 | ) | $ | (301,283 | ) | Level 2 | $ | (325,857 | ) | $ | (301,544 | ) | ||||||
Advertising fund term debt(4) | Level 3 | $ | (50,446 | ) | $ | (50,446 | ) | Level 3 | $ | (56,500 | ) | $ | (56,500 | ) | ||||||
Other debt(5) | Level 3 | $ | (124,687 | ) | $ | (68,825 | ) | Level 3 | $ | (125,000 | ) | $ | (60,223 | ) | ||||||
________________ | ||||||||||||||||||||
(1) | The Company holds these notes as collateral to reduce the carrying costs of the TRS. The interest rate on these notes resets every 90 days; therefore, the fair value of these notes, using a market approach, approximates the carrying value. | |||||||||||||||||||
(2) | Management generally estimates the current value of notes receivable, using a cost approach, based primarily on the estimated depreciated replacement cost of the underlying equipment held as collateral. | |||||||||||||||||||
(3) | The fair value of the senior unsecured notes, using a market approach, is based on publicly disclosed trades between arm’s length institutions as documented on Bloomberg LP. | |||||||||||||||||||
(4) | Management estimates the fair value of this variable rate debt using a market approach, based on prevailing interest rates plus an applicable margin. | |||||||||||||||||||
(5) | Management estimates the fair value of its Other debt, primarily consisting of contributions received related to the construction costs of certain restaurants, using an income approach, by discounting future cash flows using a Company risk-adjusted rate over the remaining term of the debt. |
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet | ' | |||||||||||||||||||||||||||
As at | ||||||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||||||
Asset | Liability | Net | Classification on | Asset | Liability | Net | Classification on | |||||||||||||||||||||
asset | Condensed | asset | Condensed | |||||||||||||||||||||||||
(liability) | Consolidated | (liability) | Consolidated | |||||||||||||||||||||||||
Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | ||||||||||||||||||||||||||||
Forward currency contracts(1) | $ | 2,317 | $ | (1,068 | ) | $ | 1,249 | Accounts receivable, net | $ | 494 | $ | (2,315 | ) | $ | (1,821 | ) | Accounts payable, net | |||||||||||
Interest rate swap(2) | $ | 11 | $ | — | $ | 11 | Other assets | $ | — | $ | — | $ | — | n/a | ||||||||||||||
2013 Interest rate forwards(3) | $ | — | $ | (7,235 | ) | $ | (7,235 | ) | Accounts payable, net | $ | — | $ | — | $ | — | n/a | ||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||
TRS(4) | $ | 18,541 | $ | — | $ | 18,541 | Other assets | $ | 8,614 | $ | (1,110 | ) | $ | 7,504 | Other assets | |||||||||||||
Forward currency contracts(1) | $ | 71 | $ | — | $ | 71 | Accounts receivable, net | $ | 5 | $ | (198 | ) | $ | (193 | ) | Accounts payable, net | ||||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Notional value as at September 29, 2013 of $151.9 million (December 30, 2012: $195.1 million), with maturities ranging between October 2013 and December 2014; no associated cash collateral. | |||||||||||||||||||||||||||
(2) | Notional value as at September 29, 2013 of $31.3 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. | |||||||||||||||||||||||||||
(3) | Notional value as at September 29, 2013 of $498.0 million (December 30, 2012: nil), with maturities in December 2013; no associated cash collateral. | |||||||||||||||||||||||||||
(4) | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 8), was $41.4 million as at September 29, 2013 (December 30, 2012: $41.4 million). The TRS have maturities annually, in May, between fiscal 2015 and fiscal 2019. | |||||||||||||||||||||||||||
Summary of Effect of Derivative Instruments on Consolidated Statement of Comprehensive Income | ' | |||||||||||||||||||||||||||
Third quarter ended September 29, 2013 | Third quarter ended September 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
hedging instruments(1) | Condensed | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | |||||||||||||||||||||
Consolidated | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Statement of | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | (3,368 | ) | $ | (2,300 | ) | $ | (5,668 | ) | $ | (5,717 | ) | $ | 302 | $ | (5,415 | ) | ||||||||||
Interest rate swap(3) | Interest (expense) | (83 | ) | 59 | (24 | ) | — | — | — | |||||||||||||||||||
2010 Interest rate forwards(4) | Interest (expense) | — | 173 | 173 | — | 172 | 172 | |||||||||||||||||||||
2013 Interest rate forwards(5) | n/a | (7,235 | ) | — | (7,235 | ) | — | — | — | |||||||||||||||||||
Total | (10,686 | ) | (2,068 | ) | (12,754 | ) | (5,717 | ) | 474 | (5,243 | ) | |||||||||||||||||
Income tax effect | Income taxes | 915 | 594 | 1,509 | 1,569 | (125 | ) | 1,444 | ||||||||||||||||||||
Net of income taxes | $ | (9,771 | ) | $ | (1,474 | ) | $ | (11,245 | ) | $ | (4,148 | ) | $ | 349 | $ | (3,799 | ) | |||||||||||
Year-to-date period ended September 29, 2013 | Year-to-date period ended September 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
hedging instruments(1) | Condensed | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | |||||||||||||||||||||
Consolidated | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Statement of | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | 4,756 | $ | (1,685 | ) | $ | 3,071 | $ | (7,106 | ) | $ | (1,992 | ) | $ | (9,098 | ) | |||||||||||
Interest rate swap(3) | Interest (expense) | (128 | ) | 139 | 11 | — | — | — | ||||||||||||||||||||
2010 Interest rate forwards(4) | Interest (expense) | — | 519 | 519 | — | 518 | 518 | |||||||||||||||||||||
2013 Interest rate forwards(5) | n/a | (7,235 | ) | — | (7,235 | ) | — | — | — | |||||||||||||||||||
Total | (2,607 | ) | (1,027 | ) | (3,634 | ) | (7,106 | ) | (1,474 | ) | (8,580 | ) | ||||||||||||||||
Income tax effect | Income taxes | (1,226 | ) | 410 | (816 | ) | 2,011 | 384 | 2,395 | |||||||||||||||||||
Net of income taxes | $ | (3,833 | ) | $ | (617 | ) | $ | (4,450 | ) | $ | (5,095 | ) | $ | (1,090 | ) | $ | (6,185 | ) | ||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Excludes amounts related to ineffectiveness, as they were not significant. | |||||||||||||||||||||||||||
(2) | Other comprehensive income (“OCI”). | |||||||||||||||||||||||||||
(3) | In February 2013, the Tim Hortons Advertising and Promotion Fund (Canada) Inc. (“Ad Fund”) entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt. | |||||||||||||||||||||||||||
(4) | The Company entered into and settled interest rate forwards in fiscal 2010 relating to the Company’s outstanding term debt. | |||||||||||||||||||||||||||
(5) | The Company entered into interest rate forwards during the third quarter of fiscal 2013 in anticipation of the Company obtaining longer-term financing in the fourth quarter of 2013, barring unforeseen market conditions and subject to the negotiation and execution of agreements. | |||||||||||||||||||||||||||
Summary of (Gain) Loss on Derivatives Not Designated as Hedging Instruments | ' | |||||||||||||||||||||||||||
The following table summarizes the (gain) loss on derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Classification on | Third quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
Condensed Consolidated | ||||||||||||||||||||||||||||
Statement of Operations | September 29, | September 30, 2012 | September 29, | September 30, 2012 | ||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||
TRS | General and administrative expenses | $ | (2,802 | ) | $ | 2,523 | $ | (11,037 | ) | $ | (889 | ) | ||||||||||||||||
Forward currency contracts | Cost of sales | 85 | 315 | (264 | ) | 1,274 | ||||||||||||||||||||||
Total (gain) loss, net | $ | (2,717 | ) | $ | 2,838 | $ | (11,301 | ) | $ | 385 | ||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Based Compensation Expenses Included in General and Administrative Expenses | ' | |||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
RSUs | $ | 1,510 | $ | 2,362 | $ | 5,090 | $ | 8,152 | ||||||||
Stock options and tandem SARs | 2,573 | (1,416 | ) | 9,912 | 3,634 | |||||||||||
DSUs(1) | 514 | (93 | ) | 2,130 | 936 | |||||||||||
Total stock-based compensation expense(2) | $ | 4,597 | $ | 853 | $ | 17,132 | $ | 12,722 | ||||||||
________________ | ||||||||||||||||
(1) | Deferred share units (“DSUs”). | |||||||||||||||
(2) | Generally included in General and administrative expenses. | |||||||||||||||
Summary of Restricted Stock Units Activity | ' | |||||||||||||||
The following table is a summary of activity for RSUs granted to employees under the Company’s 2006 and 2012 Stock Incentive Plans, for the periods set forth below: | ||||||||||||||||
Restricted Stock | Weighted | |||||||||||||||
Units | Average Grant | |||||||||||||||
Value per Unit | ||||||||||||||||
(in thousands) | (in dollars) | |||||||||||||||
Balance as at January 1, 2012 | 306 | $ | 40.91 | |||||||||||||
Granted | 192 | 54.49 | ||||||||||||||
Dividend equivalent rights | 6 | 50.3 | ||||||||||||||
Vested and settled(1) | (160 | ) | 36.72 | |||||||||||||
Forfeited | (32 | ) | 46.35 | |||||||||||||
Balance as at December 30, 2012 | 312 | $ | 50.91 | |||||||||||||
Granted | 159 | 56.69 | ||||||||||||||
Dividend equivalent rights | 5 | 55 | ||||||||||||||
Vested and settled(1) | (44 | ) | 51.39 | |||||||||||||
Forfeited | (19 | ) | 52.03 | |||||||||||||
Balance as at September 29, 2013 | 413 | $ | 53.08 | |||||||||||||
________________ | ||||||||||||||||
(1) | Generally settled with common shares from the TDL RSU Employee Benefit Plan Trust (“Trust”). | |||||||||||||||
Stock Option with Tandem SAR Awards Granted to Officers | ' | |||||||||||||||
Stock Options with SARs | Weighted Average | |||||||||||||||
Exercise Price | ||||||||||||||||
(in thousands) | (in dollars) | |||||||||||||||
Balance as at January 1, 2012 | 1,182 | $ | 36.05 | |||||||||||||
Granted | 254 | 54.86 | ||||||||||||||
Exercised(1) | (218 | ) | 31.64 | |||||||||||||
Forfeited | (46 | ) | 41.66 | |||||||||||||
Balance as at December 30, 2012 | 1,172 | $ | 40.73 | |||||||||||||
Granted | 360 | 57.84 | ||||||||||||||
Exercised(1) | (256 | ) | 35.85 | |||||||||||||
Forfeited | (10 | ) | 52.38 | |||||||||||||
Balance as at September 29, 2013 | 1,266 | $ | 46.49 | |||||||||||||
________________ | ||||||||||||||||
(1) | Total cash settlement, net of applicable withholding taxes, of $3.8 million of SARs in the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: 130,000 units for $2.1 million). The associated options were cancelled. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Summary of Contributions to the Canadian and U.S. Advertising Funds | ' | |||||||||||||||||||||||
Company contributions to the Canadian and U.S. advertising funds consisted of the following: | ||||||||||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
Company contributions | $ | 2,651 | $ | 2,651 | $ | 8,163 | $ | 7,972 | ||||||||||||||||
Contributions from consolidated non-owned restaurants | 3,576 | 3,169 | 10,301 | 9,232 | ||||||||||||||||||||
Total Company contributions | $ | 6,227 | $ | 5,820 | $ | 18,464 | $ | 17,204 | ||||||||||||||||
Schedule of Revenues and Expenses of Variable Interest Entities | ' | |||||||||||||||||||||||
The revenues and expenses associated with the Company’s consolidated Non-owned restaurants and advertising funds presented on a gross basis, prior to consolidation adjustments, are as follows: | ||||||||||||||||||||||||
Third quarter ended | ||||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs | fund VIEs | VIEs | VIEs | fund VIEs | VIEs | |||||||||||||||||||
Sales | $ | 96,049 | $ | — | $ | 96,049 | $ | 85,442 | $ | — | $ | 85,442 | ||||||||||||
Advertising levies(1) | — | 2,865 | 2,865 | — | 1,727 | 1,727 | ||||||||||||||||||
Total revenues | 96,049 | 2,865 | 98,914 | 85,442 | 1,727 | 87,169 | ||||||||||||||||||
Cost of sales(2) | 94,302 | — | 94,302 | 83,926 | — | 83,926 | ||||||||||||||||||
Operating expenses(1) | — | 2,379 | 2,379 | — | 1,467 | 1,467 | ||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | — | — | — | ||||||||||||||||||
Operating income | 1,306 | 486 | 1,792 | 1,516 | 260 | 1,776 | ||||||||||||||||||
Interest expense | — | 486 | 486 | — | 260 | 260 | ||||||||||||||||||
Income before taxes | 1,306 | — | 1,306 | 1,516 | — | 1,516 | ||||||||||||||||||
Income taxes | 214 | — | 214 | 260 | — | 260 | ||||||||||||||||||
Net income attributable to non-controlling interests | $ | 1,092 | $ | — | $ | 1,092 | $ | 1,256 | $ | — | $ | 1,256 | ||||||||||||
Year-to-date period ended | ||||||||||||||||||||||||
29-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs | fund VIEs | VIEs | VIEs | fund VIEs | VIEs | |||||||||||||||||||
Sales | $ | 276,273 | $ | — | $ | 276,273 | $ | 248,915 | $ | — | $ | 248,915 | ||||||||||||
Advertising levies(1) | — | 7,965 | 7,965 | — | 3,270 | 3,270 | ||||||||||||||||||
Total revenues | 276,273 | 7,965 | 284,238 | 248,915 | 3,270 | 252,185 | ||||||||||||||||||
Cost of sales(2) | 272,648 | — | 272,648 | 244,580 | — | 244,580 | ||||||||||||||||||
Operating expenses(1) | — | 6,771 | 6,771 | — | 2,529 | 2,529 | ||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | — | — | — | ||||||||||||||||||
Operating income | 3,184 | 1,194 | 4,378 | 4,335 | 741 | 5,076 | ||||||||||||||||||
Interest expense | — | 1,194 | 1,194 | — | 741 | 741 | ||||||||||||||||||
Income before taxes | 3,184 | — | 3,184 | 4,335 | — | 4,335 | ||||||||||||||||||
Income taxes | 514 | — | 514 | 709 | — | 709 | ||||||||||||||||||
Net income attributable to non-controlling interests | $ | 2,670 | $ | — | $ | 2,670 | $ | 3,626 | $ | — | $ | 3,626 | ||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Generally, the advertising levies that are not related to the Expanded Menu Board Program are netted with advertising and marketing expenses incurred by the advertising funds in operating expenses, as these contributions are designated for specific purposes. The Company acts as an agent with regard to these contributions. | |||||||||||||||||||||||
(2) | Includes rents, royalties, advertising expenses and product purchases from the Company which are eliminated upon the consolidation of these VIEs. | |||||||||||||||||||||||
(3) | The Company recognized an impairment charge in the third quarter of 2013 related to certain underperforming markets in the U.S. (see note 14). | |||||||||||||||||||||||
Schedule of Assets and Liabilities of Variable Interest Entities | ' | |||||||||||||||||||||||
The assets and liabilities associated with the Company’s consolidated Non-owned restaurants and advertising funds presented on a gross basis, prior to consolidation adjustments, are as follows: | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
September 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | |||||||||||||||||||||
VIEs | fund VIEs | VIEs | fund VIEs | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,299 | $ | — | $ | 10,851 | $ | — | ||||||||||||||||
Advertising fund restricted assets – current | — | 48,722 | — | 45,337 | ||||||||||||||||||||
Other current assets | 7,355 | — | 6,770 | — | ||||||||||||||||||||
Property and equipment, net | 19,957 | 65,515 | 19,536 | 57,925 | ||||||||||||||||||||
Other long-term assets | 57 | 1,816 | 572 | 2,095 | ||||||||||||||||||||
Total assets | $ | 35,668 | $ | 116,053 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
Notes payable to Tim Hortons Inc. – current(1) | $ | 12,321 | $ | — | $ | 13,637 | $ | — | ||||||||||||||||
Advertising fund liabilities – current | — | 63,672 | — | 44,893 | ||||||||||||||||||||
Other current liabilities (2) | 11,934 | 8,345 | 14,548 | 9,919 | ||||||||||||||||||||
Notes payable to Tim Hortons Inc. – long-term(1) | 1,145 | — | 804 | — | ||||||||||||||||||||
Long-term debt(2) | — | 42,375 | — | 46,849 | ||||||||||||||||||||
Other long-term liabilities | 9,240 | 1,661 | 5,887 | 3,696 | ||||||||||||||||||||
Total liabilities | 34,640 | 116,053 | 34,876 | 105,357 | ||||||||||||||||||||
Equity of VIEs | 1,028 | — | 2,853 | — | ||||||||||||||||||||
Total liabilities and equity | $ | 35,668 | $ | 116,053 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Various assets and liabilities are eliminated upon the consolidation of these VIEs, the most significant of which are the FIP Notes payable to the Company, which reduces the Notes receivable, net reported on the Condensed Consolidated Balance Sheet (see note 5). | |||||||||||||||||||||||
(2) | Includes $50.4 million of debt relating to the Expanded Menu Board Program (December 30, 2012: $56.5 million), of which $8.1 million is recognized in Other current liabilities (December 30, 2012: $9.7 million) with the remainder recognized as Long-term debt. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||
Sep. 29, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Information on Reportable Segments | ' | |||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Revenues(1) | ||||||||||||||||
Canada | $ | 676,006 | $ | 672,684 | $ | 1,927,361 | $ | 1,923,928 | ||||||||
U.S. | 47,019 | 39,254 | 132,687 | 120,837 | ||||||||||||
Corporate services | 3,414 | 2,933 | 12,743 | 11,955 | ||||||||||||
Total reportable segments | 726,439 | 714,871 | 2,072,791 | 2,056,720 | ||||||||||||
VIEs | 98,914 | 87,169 | 284,238 | 252,185 | ||||||||||||
Total | $ | 825,353 | $ | 802,040 | $ | 2,357,029 | $ | 2,308,905 | ||||||||
Operating Income (Loss) | ||||||||||||||||
Canada | $ | 179,597 | $ | 171,990 | $ | 500,178 | $ | 484,576 | ||||||||
U.S.(2) | 2,717 | 1,458 | 6,214 | 7,213 | ||||||||||||
Corporate services | (14,325 | ) | (13,000 | ) | (26,414 | ) | (42,902 | ) | ||||||||
Total reportable segments | 167,989 | 160,448 | 479,978 | 448,887 | ||||||||||||
VIEs(2) | 1,792 | 1,776 | 4,378 | 5,076 | ||||||||||||
Corporate reorganization expenses | (953 | ) | (8,565 | ) | (11,032 | ) | (9,842 | ) | ||||||||
Consolidated Operating Income | 168,828 | 153,659 | 473,324 | 444,121 | ||||||||||||
Interest, Net | (8,487 | ) | (7,749 | ) | (24,353 | ) | (22,863 | ) | ||||||||
Income before income taxes | $ | 160,341 | $ | 145,910 | $ | 448,971 | $ | 421,258 | ||||||||
________________ | ||||||||||||||||
(1) | There are no inter-segment revenues included in the above table. | |||||||||||||||
(2) | The Company recognized an impairment charge of $2.9 million in the third quarter and year-to-date period of 2013 (third quarter of fiscal 2012: nil; year-to-date period of 2012 $(0.4) million) related to certain underperforming markets in the U.S., $2.5 million of which is recognized in our U.S. segment (third quarter of 2012: nil; year-to-date period of 2012: $(0.4) million), remainder recognized in VIEs. | |||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Capital expenditures | ||||||||||||||||
Canada | $ | 30,275 | $ | 27,462 | $ | 90,696 | $ | 70,608 | ||||||||
U.S. | 8,913 | 15,827 | 32,059 | 34,516 | ||||||||||||
Corporate services | 5,266 | 2,895 | 9,971 | 7,688 | ||||||||||||
Total reportable segments | $ | 44,454 | $ | 46,184 | $ | 132,726 | $ | 112,812 | ||||||||
Reconciliation of Total Reportable Segment Property and Equipment and Total Assets | ' | |||||||||||||||
The following table provides a reconciliation of reportable segment Property and equipment, net and Total assets to consolidated Property and equipment, net and consolidated Total assets, respectively: | ||||||||||||||||
As at | ||||||||||||||||
September 29, | December 30, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total Property and equipment, net | ||||||||||||||||
Canada(1) | $ | 962,600 | $ | 915,733 | ||||||||||||
U.S.(1) | 398,123 | 378,457 | ||||||||||||||
Corporate services(2) | 173,259 | 184,938 | ||||||||||||||
Total reportable segments | 1,533,982 | 1,479,128 | ||||||||||||||
VIEs | 81,898 | 74,180 | ||||||||||||||
Consolidated Property and equipment, net | $ | 1,615,880 | $ | 1,553,308 | ||||||||||||
Total Assets | ||||||||||||||||
Canada | $ | 1,246,847 | $ | 1,175,552 | ||||||||||||
U.S. | 428,247 | 400,231 | ||||||||||||||
Corporate services | 278,880 | 281,043 | ||||||||||||||
Total reportable segments | 1,953,974 | 1,856,826 | ||||||||||||||
VIEs | 148,153 | 139,462 | ||||||||||||||
Unallocated assets(3) | 163,625 | 287,891 | ||||||||||||||
Consolidated Total assets | $ | 2,265,752 | $ | 2,284,179 | ||||||||||||
_______________ | ||||||||||||||||
(1) | Includes primarily restaurant-related assets such as land, building and leasehold improvements. | |||||||||||||||
(2) | Includes property and equipment related to distribution services, manufacturing activities, and other corporate assets. | |||||||||||||||
(3) | Includes Cash and cash equivalents, Restricted cash and cash equivalents, Deferred income taxes and Prepaids, except as related to VIEs. | |||||||||||||||
Consolidated Sales and Cost of Sales Information | ' | |||||||||||||||
. | ||||||||||||||||
Consolidated Sales and Cost of sales comprise the following: | ||||||||||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Sales | ||||||||||||||||
Distribution sales | $ | 473,641 | $ | 475,243 | $ | 1,373,389 | $ | 1,386,245 | ||||||||
Company-operated restaurant sales | 6,090 | 7,856 | 18,567 | 20,455 | ||||||||||||
Sales from VIEs | 96,049 | 85,442 | 276,273 | 248,915 | ||||||||||||
Total Sales | $ | 575,780 | $ | 568,541 | $ | 1,668,229 | $ | 1,655,615 | ||||||||
Third quarter ended | Year-to-date period ended | |||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||
Cost of sales | ||||||||||||||||
Distribution cost of sales | $ | 411,290 | $ | 414,439 | $ | 1,185,862 | $ | 1,214,611 | ||||||||
Company-operated restaurant cost of sales | 6,207 | 8,042 | 19,830 | 21,819 | ||||||||||||
Cost of sales from VIEs | 84,359 | 75,136 | 246,610 | 219,007 | ||||||||||||
Total Cost of sales | $ | 501,856 | $ | 497,617 | $ | 1,452,302 | $ | 1,455,437 | ||||||||
Franchised_Locations_and_Syste
Franchised Locations and System Activity (Detail) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |||||
Store | Store | Store | Store | |||||
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' | ' | ||||
Franchised restaurants in operation - end of period | 4,350 | [1] | 4,138 | [1] | 4,350 | [1] | 4,138 | [1] |
% of restaurants franchised – end of period | 99.60% | 99.40% | 99.60% | 99.40% | ||||
Franchised | ' | ' | ' | ' | ||||
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' | ' | ||||
Franchised restaurants in operation – beginning of period | 4,284 | 4,050 | 4,242 | 3,996 | ||||
Restaurants opened | 51 | 72 | 111 | 140 | ||||
Restaurants closed | -5 | -6 | -27 | -18 | ||||
Net transfers within the franchised system | 2 | -1 | 6 | -3 | ||||
Franchised restaurants in operation - end of period | 4,332 | 4,115 | 4,332 | 4,115 | ||||
Company Operated | ' | ' | ' | ' | ||||
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' | ' | ||||
Franchised restaurants in operation - end of period | 18 | 23 | 18 | 23 | ||||
[1] | Includes various types of standard and non-standard restaurant formats in Canada, the U.S. and the Gulf Cooperation Council (“GCCâ€) with differing restaurant sizes and menu offerings as well as self-serve kiosks, which serve primarily coffee products and a limited product selection. Collectively, the Company refers to all of these restaurants and kiosks as “systemwide restaurants.†|
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (Republic Of Ireland And United Kingdom) | Sep. 29, 2013 | Sep. 30, 2012 |
Store | Store | |
Republic Of Ireland And United Kingdom | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Excluded licensed locations from systemwide restaurant progression | 256 | 241 |
Corporate_Reorganization_Expen2
Corporate Reorganization Expenses (Detail) (CAD) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' |
Corporate reorganization expenses | 953 | 8,565 | 11,032 | 9,842 | 18,874 |
Termination Costs | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' |
Corporate reorganization expenses | 0 | 4,255 | 6,632 | 4,255 | 9,016 |
Professional Fees And Other | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' |
Corporate reorganization expenses | 0 | 2,079 | 2,543 | 3,356 | 7,602 |
CEO Transition Cost | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' |
Corporate reorganization expenses | 953 | 2,231 | 1,857 | 2,231 | 2,256 |
Corporate_Reorganization_Expen3
Corporate Reorganization Expenses - Additional Information (Detail) (CAD) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | ||
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Restructuring accruals | 5,557 | [1] | ' | 5,557 | [1] | ' | 13,230 |
Corporate reorganization expenses | 953 | 8,565 | 11,032 | 9,842 | 18,874 | ||
Retention Agreement | ' | ' | ' | ' | ' | ||
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Restructuring accruals | 1,700 | ' | 1,700 | ' | ' | ||
Retention Agreement | Maximum | ' | ' | ' | ' | ' | ||
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Corporate reorganization expenses | ' | ' | 2,800 | ' | ' | ||
[1] | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million). |
Accrued_Reorganization_Expense
Accrued Reorganization Expenses (Detail) (CAD) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Cost incurred during the period | 953 | 8,565 | 11,032 | 9,842 | 18,874 | ||
Paid during the period | ' | ' | -18,705 | ' | -5,644 | ||
Accrued as at end of period | 5,557 | [1] | ' | 5,557 | [1] | ' | 13,230 |
Termination Costs | ' | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Cost incurred during the period | 0 | 4,255 | 6,632 | 4,255 | 9,016 | ||
Paid during the period | ' | ' | -12,354 | ' | -1,458 | ||
Accrued as at end of period | 1,836 | [1] | ' | 1,836 | [1] | ' | 7,558 |
Professional Fees And Other | ' | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Cost incurred during the period | 0 | 2,079 | 2,543 | 3,356 | 7,602 | ||
Paid during the period | ' | ' | -6,141 | ' | -3,775 | ||
Accrued as at end of period | 229 | [1] | ' | 229 | [1] | ' | 3,827 |
CEO Transition Cost | ' | ' | ' | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||
Cost incurred during the period | 953 | 2,231 | 1,857 | 2,231 | 2,256 | ||
Paid during the period | ' | ' | -210 | ' | -411 | ||
Accrued as at end of period | 3,492 | [1] | ' | 3,492 | [1] | ' | 1,845 |
[1] | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million). |
Accrued_Reorganization_Expense1
Accrued Reorganization Expenses (Parenthetical) (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | |
In Thousands, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring accruals | 5,557 | [1] | 13,230 |
Accounts Payable | ' | ' | |
Restructuring Cost and Reserve [Line Items] | ' | ' | |
Restructuring accruals | 4,900 | 12,400 | |
[1] | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million). |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 28.30% | 26.70% | 27.30% | 27.30% |
Proposed adjustments by Canada Revenue Agency, including tax, penalty and interest | ' | ' | 60 | ' |
Deposit required for the Proposed adjustments by Canada Revenue Agency | ' | ' | 38 | ' |
Computations_of_Basic_and_Dilu
Computations of Basic and Diluted Earnings Per Common Share (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Net income attributable to Tim Hortons Inc. | 113,863 | 105,698 | 323,770 | 302,544 | ||||
Weighted average shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,342 | 154,478 | 152,379 | 155,607 | ||||
Dilutive impact of RSUs | 264 | [1] | 304 | [1] | 285 | [1] | 329 | [1] |
Dilutive impact of stock options with tandem SARs | 258 | [2] | 285 | [2] | 255 | [2] | 311 | [2] |
Weighted average shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,864 | 155,067 | 152,919 | 156,247 | ||||
Basic earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.76 | 0.68 | 2.12 | 1.94 | ||||
Diluted earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.75 | 0.68 | 2.12 | 1.94 | ||||
[1] | Restricted stock units (“RSUsâ€). | |||||||
[2] | Stock appreciation rights (“SARsâ€). |
Notes_Receivable_By_Segment_De
Notes Receivable By Segment (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 13,907 | 10,567 | ||
Allowance | -2,165 | -1,790 | ||
Notes receivable, net | 11,742 | 8,777 | ||
Current portion, net | 6,565 | 7,531 | ||
Long-term portion, net | 5,177 | 1,246 | ||
Gross | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 27,373 | 25,008 | ||
VIEs | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | -13,466 | [1] | -14,441 | [1] |
Franchise Incentive Program ("FIP") notes | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 5,340 | [2] | 5,794 | [2] |
Franchise Incentive Program ("FIP") notes | Gross | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 18,806 | [2] | 20,235 | [2] |
Franchise Incentive Program ("FIP") notes | VIEs | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | -13,466 | [1],[2] | -14,441 | [1],[2] |
Other | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 8,567 | [3] | 4,773 | [3] |
Other | Gross | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 8,567 | [3] | 4,773 | [3] |
Other | VIEs | ' | ' | ||
Notes Receivable By Segment [Line Items] | ' | ' | ||
Notes receivable | 0 | [1],[3] | 0 | [1],[3] |
[1] | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Condensed Consolidated Balance Sheet (see note 13). | |||
[2] | The Company has outstanding FIP arrangements with certain U.S. restaurant owners, which generally provided interest-free financing for the purchase of certain restaurant equipment, furniture, trade fixtures and signage. | |||
[3] | Relates primarily to notes issued to vendors in conjunction with the financing of a property sale, and on various equipment and other financing programs. |
Notes_Receivable_By_Class_and_
Notes Receivable By Class and Aging (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 13,907 | 10,567 | ||
Allowance | -2,165 | -1,790 | ||
Notes receivable, net | 11,742 | 8,777 | ||
Current Status (FIPs And Other) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 8,366 | 5,700 | ||
Past Due Status Less Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 0 | 0 | ||
Past Due Status Greater Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 5,541 | 4,867 | ||
Gross | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 27,373 | 25,008 | ||
Gross | Current Status (FIPs And Other) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 10,283 | 6,969 | ||
Gross | Past Due Status Less Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 0 | 407 | ||
Gross | Past Due Status Greater Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 17,090 | 17,632 | ||
VIEs | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | -13,466 | [1] | -14,441 | [1] |
VIEs | Current Status (FIPs And Other) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | -1,917 | [1] | -1,269 | [1] |
VIEs | Past Due Status Less Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | 0 | [1] | -407 | [1] |
VIEs | Past Due Status Greater Than 90 Days (FIPs) | ' | ' | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' | ||
Notes receivable | -11,549 | [1] | -12,765 | [1] |
[1] | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Condensed Consolidated Balance Sheet (see note 13). |
Inventories_and_Other_Net_Deta
Inventories and Other Net (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | 27,745 | 19,941 |
Finished goods | 76,180 | 75,660 |
Inventories, gross | 103,925 | 95,601 |
Inventory obsolescence provision | -920 | -1,015 |
Inventories, net | 103,005 | 94,586 |
Prepaids and other | 8,925 | 12,414 |
Total Inventories and other, net | 111,930 | 107,000 |
Accounts_Payable_Detail
Accounts Payable (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accounts payable | 128,334 | 126,312 |
Construction holdbacks and accruals | 46,906 | 31,008 |
Corporate reorganization accrual (note 2) | 4,862 | 12,442 |
Total Accounts payable | 180,102 | 169,762 |
Tim_Card_Obligation_and_Other_
Tim Card Obligation and Other (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ' | ' | ||
Tim Card obligation | 104,682 | 159,745 | ||
Contingent rent expense accrual | 9,645 | 9,962 | ||
Maidstone Bakeries supply contract deferred liability | 7,553 | 7,929 | ||
Other accrued liabilities | 29,117 | [1] | 20,235 | [1] |
Total Accrued liabilities, Other | 150,997 | 197,871 | ||
[1] | Includes deferred revenues, deposits, and various equipment and other accruals. |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ' | ' | ||
Accrued rent leveling liability | 30,875 | 29,244 | ||
Uncertain tax position liability | 32,862 | [1] | 28,610 | [1] |
Stock-based compensation liabilities (note 12) | 23,867 | 17,479 | ||
Maidstone Bakeries supply contract deferred liability | 9,781 | 15,352 | ||
Other accrued long-term liabilities | 18,367 | [2] | 18,929 | [2] |
Total Other long-term liabilities | 115,752 | 109,614 | ||
[1] | Includes accrued interest. | |||
[2] | Includes deferred revenues and various other accruals. |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheet (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value asset (liability) | 12,637 | [1] | 5,490 | [1] |
Accounts Receivable | Level 2 | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value asset (liability) | 1,320 | [1],[2] | ' | |
Accounts Receivable | Designated as Hedging Instrument | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 1,249 | [3] | ' | |
Accounts Receivable | Not Designated as Hedging Instrument | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net | 71 | [3] | ' | |
Other Assets [Member] | Not Designated as Hedging Instrument | Level 2 | TRS | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net | 18,541 | [4] | 7,504 | [4] |
Other Assets [Member] | Advertising Fund | Designated as Hedging Instrument | Level 2 | Interest Rate Swap | Canadian Ad Fund | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | 11 | [5] | 0 | [5] |
Accounts Payable | Level 2 | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value asset (liability) | ' | -2,014 | [1],[2] | |
Accounts Payable | Designated as Hedging Instrument | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | ' | -1,821 | [3] | |
Accounts Payable | Designated as Hedging Instrument | Level 2 | Interest Rate Forwards | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net | -7,235 | [5] | 0 | [5] |
Accounts Payable | Not Designated as Hedging Instrument | Forward Currency Contracts | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net | ' | -193 | [3] | |
[1] | The Company values its derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs to the valuation model. | |||
[2] | The fair value of forward currency contracts is determined using prevailing exchange rates. | |||
[3] | Notional value as at September 29, 2013 of $151.9 million (December 30, 2012: $195.1 million), with maturities ranging between October 2013 and December 2014; no associated cash collateral. | |||
[4] | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 8), was $41.4 million as at September 29, 2013 (December 30, 2012: $41.4 million). The TRS have maturities annually, in May, between fiscal 2015 and fiscal 2019. | |||
[5] | Notional value as at September 29, 2013 of $31.3 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Other Financial Assets and Liabilities (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Bearer deposit notes, Carrying value | 81,870 | 64,796 | ||
Notes receivable, net, Carrying value | 13,907 | 10,567 | ||
Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Bearer deposit notes, Fair value asset (liability) | 41,403 | [1] | 41,403 | [1] |
Senior Notes, Fair value asset (liability) | -313,653 | [2] | -325,857 | [2] |
Bearer deposit notes, Carrying value | 41,403 | [1] | 41,403 | [1] |
Senior Notes, Carrying value | -301,283 | [2] | -301,544 | [2] |
Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Notes receivable, net, Fair value asset (liability) | 11,742 | [3] | 8,777 | [3] |
Advertising fund term debt | -50,446 | [4] | -56,500 | [4] |
Other debt, Fair value asset (liability) | -124,687 | [5] | -125,000 | [5] |
Notes receivable, net, Carrying value | 11,742 | [3] | 8,777 | [3] |
Other debt, Carrying value | -68,825 | [5] | -60,223 | [5] |
[1] | The Company holds these notes as collateral to reduce the carrying costs of the TRS. The interest rate on these notes resets every 90 days; therefore, the fair value of these notes, using a market approach, approximates the carrying value. | |||
[2] | The fair value of the senior unsecured notes, using a market approach, is based on publicly disclosed trades between arm’s length institutions as documented on Bloomberg LP. | |||
[3] | Management generally estimates the current value of notes receivable, using a cost approach, based primarily on the estimated depreciated replacement cost of the underlying equipment held as collateral. | |||
[4] | Management estimates the fair value of this variable rate debt using a market approach, based on prevailing interest rates plus an applicable margin. | |||
[5] | Management estimates the fair value of its Other debt, primarily consisting of contributions received related to the construction costs of certain restaurants, using an income approach, by discounting future cash flows using a Company risk-adjusted rate over the remaining term of the debt. |
Fair_Value_and_Carrying_Value_1
Fair Value and Carrying Value of Other Financial Assets and Liabilities (Parenthetical) (Detail) | 9 Months Ended |
Sep. 29, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Interest rate reset period, in days | '90 days |
Summary_Of_Fair_Value_Of_Deriv
Summary Of Fair Value Of Derivative Instruments On Consolidated Balance Sheet (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Asset Designated as Hedging Instruments | 2,317 | [1] | 494 | [1] |
Fair Value Liability Designated as Hedging Instruments | -1,068 | [1] | -2,315 | [1] |
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | Accounts Receivable | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Designated as Hedging Instruments | 1,249 | [1] | ' | |
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | Accounts Payable | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Designated as Hedging Instruments | ' | -1,821 | [1] | |
Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Swap | Ad Fund | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Asset Designated as Hedging Instruments | 11 | [2] | 0 | [2] |
Fair Value Liability Designated as Hedging Instruments | 0 | [2] | 0 | [2] |
Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Forwards | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Asset Designated as Hedging Instruments | 0 | [2] | 0 | [2] |
Fair Value Liability Designated as Hedging Instruments | -7,235 | [2] | 0 | [2] |
Derivatives Not Designated As Hedging Instruments | Forward Currency Contracts | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Assets Not Designated as Hedging Instruments | 71 | [1] | 5 | [1] |
Fair Value Liability Not Designated as Hedging Instruments | 0 | [1] | -198 | [1] |
Derivatives Not Designated As Hedging Instruments | Forward Currency Contracts | Accounts Receivable | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Not Designated as Hedging Instruments | 71 | [1] | ' | |
Derivatives Not Designated As Hedging Instruments | Forward Currency Contracts | Accounts Payable | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Not Designated as Hedging Instruments | ' | -193 | [1] | |
Derivatives Not Designated As Hedging Instruments | TRS | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Assets Not Designated as Hedging Instruments | 18,541 | [3] | 8,614 | [3] |
Fair Value Liability Not Designated as Hedging Instruments | 0 | [3] | -1,110 | [3] |
Fair Value, Inputs, Level 2 | Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Forwards | Accounts Payable | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Designated as Hedging Instruments | -7,235 | [2] | 0 | [2] |
Fair Value, Inputs, Level 2 | Derivatives Not Designated As Hedging Instruments | TRS | Other Assets [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Not Designated as Hedging Instruments | 18,541 | [3] | 7,504 | [3] |
Canadian Ad Fund | Fair Value, Inputs, Level 2 | Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Swap | Other Assets [Member] | Ad Fund | ' | ' | ||
Cash Flow Hedges Derivative Instruments at Fair Value, Net [Abstract] | ' | ' | ||
Fair Value Net Asset (Liability) Designated as Hedging Instruments | 11 | [2] | 0 | [2] |
[1] | Notional value as at September 29, 2013 of $151.9 million (December 30, 2012: $195.1 million), with maturities ranging between October 2013 and December 2014; no associated cash collateral. | |||
[2] | Notional value as at September 29, 2013 of $31.3 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. | |||
[3] | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 8), was $41.4 million as at September 29, 2013 (December 30, 2012: $41.4 million). The TRS have maturities annually, in May, between fiscal 2015 and fiscal 2019. |
Summary_Of_Fair_Value_Of_Deriv1
Summary Of Fair Value Of Derivative Instruments On Consolidated Balance Sheet (Parenthetical) (Detail) (Level 2, CAD) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Forward Currency Contracts | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional value | 151,868 | 195,081 |
Interest Rate Forwards | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional value | 498,000 | 0 |
TRS | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional value | 41,403 | 41,403 |
Ad Fund | Interest Rate Swap | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional value | 31,250 | 0 |
Summary_Of_Effect_Of_Derivativ
Summary Of Effect Of Derivative Instruments On Consolidated Statement Of Comprehensive Income (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of net (gain) loss reclassified to earnings | 2,068 | -474 | 1,027 | 1,474 | ||
Cash Flow Hedging | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of gain (loss) recognized in OCI | -10,686 | -5,717 | -2,607 | [1],[2] | -7,106 | [1],[2] |
Amount of gain (loss) recognized in OCI, Income tax effect | 915 | 1,569 | -1,226 | [1],[2] | 2,011 | [1],[2] |
Amount of gain (loss) recognized in OCI, Net of income taxes | -9,771 | -4,148 | -3,833 | [1],[2] | -5,095 | [1],[2] |
Amount of net (gain) loss reclassified to earnings | -2,068 | 474 | -1,027 | [1] | -1,474 | [1] |
Amount of net (gain) loss reclassified to earnings, Income tax effect | 594 | -125 | 410 | [1] | 384 | [1] |
Amount of net (gain) loss reclassified to earnings, Net of income taxes | -1,474 | 349 | -617 | [1] | -1,090 | [1] |
Total effect on OCI | -12,754 | -5,243 | -3,634 | [1],[2] | -8,580 | [1],[2] |
Total effect on OCI, Net of income taxes | -11,245 | -3,799 | -4,450 | [1],[2] | -6,185 | [1],[2] |
Cash Flow Hedging | Income Taxes | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Total effect on OCI, Income tax effect | 1,509 | 1,444 | -816 | [1],[2] | 2,395 | [1],[2] |
Cash Flow Hedging | Forward Currency Contracts | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of gain (loss) recognized in OCI | -3,368 | -5,717 | 4,756 | [1],[2] | -7,106 | [1],[2] |
Amount of net (gain) loss reclassified to earnings | -2,300 | 302 | -1,685 | [1] | -1,992 | [1] |
Cash Flow Hedging | Forward Currency Contracts | Cost Of Sales | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Total effect on OCI | -5,668 | -5,415 | 3,071 | [1],[2] | -9,098 | [1],[2] |
Cash Flow Hedging | Interest Rate Swap | Ad Fund | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of gain (loss) recognized in OCI | -83 | 0 | -128 | [1],[2],[3] | 0 | [1],[2],[3] |
Amount of net (gain) loss reclassified to earnings | 59 | 0 | 139 | [1],[3] | 0 | [1],[3] |
Cash Flow Hedging | Interest Rate Swap | Interest (Expense) | Ad Fund | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Total effect on OCI | -24 | 0 | 11 | [1],[2],[3] | 0 | [1],[2],[3] |
Cash Flow Hedging | Interest Rate Forwards | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of gain (loss) recognized in OCI | -7,235 | 0 | -7,235 | [1],[2],[4] | 0 | [1],[2],[4] |
Amount of net (gain) loss reclassified to earnings | 0 | 0 | 0 | [1],[4] | 0 | [1],[4] |
Total effect on OCI | -7,235 | 0 | -7,235 | [1],[2],[4] | 0 | [1],[2],[4] |
Cash Flow Hedging | Interest Rate Forwards | Interest (Expense) | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Amount of gain (loss) recognized in OCI | 0 | 0 | 0 | [1],[2],[4] | 0 | [1],[2],[4] |
Amount of net (gain) loss reclassified to earnings | 173 | 172 | 519 | [1],[4] | 518 | [1],[4] |
Total effect on OCI | 173 | 172 | 519 | [1],[2],[4] | 518 | [1],[2],[4] |
[1] | Excludes amounts related to ineffectiveness, as they were not significant. | |||||
[2] | Other comprehensive income (“OCIâ€). | |||||
[3] | In February 2013, the Tim Hortons Advertising and Promotion Fund (Canada) Inc. (“Ad Fundâ€) entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt. | |||||
[4] | The Company entered into and settled interest rate forwards in fiscal 2010 relating to the Company’s outstanding term debt. |
Summary_of_Gain_Loss_on_Deriva
Summary of (Gain) Loss on Derivatives Not Designated as Hedging Instruments (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Effect of derivatives on statements of operations [Line Items] | ' | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -2,717 | 2,838 | -11,301 | 385 |
TRS | General and Administrative Expense | ' | ' | ' | ' |
Effect of derivatives on statements of operations [Line Items] | ' | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -2,802 | 2,523 | -11,037 | -889 |
Forward Currency Contracts | Cost Of Sales | ' | ' | ' | ' |
Effect of derivatives on statements of operations [Line Items] | ' | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | 85 | 315 | -264 | 1,274 |
Commitments_And_Contingencies_
Commitments And Contingencies - Additional Information (Detail) (CAD) | 0 Months Ended |
In Billions, unless otherwise specified | Jun. 12, 2008 |
franchise | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Loss Contingency, Number of Plaintiffs | 2 |
Asserted damages | 1.95 |
Common_Shares_Additional_Infor
Common Shares - Additional Information (Detail) (CAD) | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 29, 2013 | Feb. 20, 2013 | Feb. 20, 2013 |
2013 Program Amendment | 2013 Program | ||
Common Shares [Line Items] | ' | ' | ' |
Maximum shares of common shares to be repurchased | ' | ' | 15,239,531 |
Percentage of outstanding shares, regulatory maximum for repurchase | ' | ' | 10.00% |
Amended maximum value of common shares to be repurchased | ' | 250 | ' |
Share repurchase program expiration date | 25-Feb-14 | ' | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense Included In General And Administrative Expenses (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' | ||||
RSUs | 1,510 | 2,362 | 5,090 | 8,152 | ||||
Stock options and tandem SARs | 2,573 | -1,416 | 9,912 | 3,634 | ||||
DSUs | 514 | [1] | -93 | [1] | 2,130 | [1] | 936 | [1] |
Total stock-based compensation expense | 4,597 | [2] | 853 | [2] | 17,132 | [2] | 12,722 | [2] |
[1] | Deferred share units (“DSUsâ€). | |||||||
[2] | Generally included in General and administrative expenses. |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (CAD) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | |
TDL RSU Employee Benefit Plan Trust | TDL RSU Employee Benefit Plan Trust | TRS | TRS | TRS | TRS | Deferred Share Units | Deferred Share Units | Deferred Share Units | |||||
General and Administrative Expense | General and Administrative Expense | General and Administrative Expense | General and Administrative Expense | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of underlying common stock covered under contracts | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -2,717,000 | 2,838,000 | -11,301,000 | 385,000 | ' | ' | -2,802,000 | 2,523,000 | -11,037,000 | -889,000 | ' | ' | ' |
Purchase of common shares, shares | ' | ' | ' | ' | 43,000 | 112,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase of common shares, value | ' | ' | ' | ' | 2,500,000 | 6,200,000 | ' | ' | ' | ' | ' | ' | ' |
Granted, share units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,600 | 12,200 |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.91 | 52.57 |
Vested and settled, share units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,600 | ' | 9,400 |
Summary_Of_Restricted_Stock_Un
Summary Of Restricted Stock Units Activity (Detail) (Restricted Stock Units (RSUs), CAD) | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2013 | Dec. 30, 2012 | |||
Restricted Stock Units (RSUs) | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ||
Beginning balance, share units | 312,000 | 306,000 | ||
Granted, share units | 159,000 | 192,000 | ||
Dividend equivalent rights, share units | 5,000 | 6,000 | ||
Vested and settled, share units | -44,000 | [1] | -160,000 | [1] |
Forfeited, share units | -19,000 | -32,000 | ||
Ending balance, share units | 413,000 | 312,000 | ||
Beginning balance, value | 50.91 | 40.91 | ||
Granted | 56.69 | 54.49 | ||
Dividend equivalent rights | 55 | 50.3 | ||
Vested and settled | 51.39 | [1] | 36.72 | [1] |
Forfeited | 52.03 | 46.35 | ||
Ending balance, value | 53.08 | 50.91 | ||
[1] | Generally settled with common shares from the TDL RSU Employee Benefit Plan Trust (“Trustâ€). |
Stock_Option_With_Tandem_SAR_A
Stock Option With Tandem SAR Awards Granted To Officers (Detail) (Stock Options And Tandem Stock Appreciation Rights, CAD) | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | ||
Stock Options And Tandem Stock Appreciation Rights | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ||
Stock options with SARs outstanding at beginning of year | 1,172 | 1,182 | 1,182 | ||
Granted, Stock Options with SARs | 360 | ' | 254 | ||
Exercised, Stock Options with SARs | -256 | [1] | -130 | -218 | [1] |
Forfeited, Stock Options with SARs | -10 | ' | -46 | ||
Stock options with SARs outstanding at end of year | 1,266 | ' | 1,172 | ||
Stock options with SARs outstanding at beginning of year, Weighted Average Exercise Price | 40.73 | 36.05 | 36.05 | ||
Granted, Weighted Average Grant Price | 57.84 | ' | 54.86 | ||
Exercised, Weighted Average Grant Price | 35.85 | [1] | ' | 31.64 | [1] |
Forfeited, Weighted Average Grant Price | 52.38 | ' | 41.66 | ||
Stock options with SARs outstanding at end of year, Weighted Average Grant Price | 46.49 | ' | 40.73 | ||
[1] | Total cash settlement, net of applicable withholding taxes, of $3.8 million of SARs in the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: 130,000 units for $2.1 million). The associated options were cancelled. |
Stock_Option_With_Tandem_SAR_A1
Stock Option With Tandem SAR Awards Granted To Officers (Parenthetical) (Detail) (Stock Options And Tandem Stock Appreciation Rights, CAD) | 9 Months Ended | 12 Months Ended | |||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | ||
Stock Options And Tandem Stock Appreciation Rights | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ||
Cash settlement exercised | 3.8 | 2.1 | ' | ||
Vested SARs exercised and cash-settled,shares | 256 | [1] | 130 | 218 | [1] |
[1] | Total cash settlement, net of applicable withholding taxes, of $3.8 million of SARs in the year-to-date period ended September 29, 2013 (year-to-date period fiscal 2012: 130,000 units for $2.1 million). The associated options were cancelled. |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (CAD) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Store | Store | Expanded Menu Board Program | Variable Interest Entity Primary Beneficiary Advertising Fund [Member] | Variable Interest Entity Primary Beneficiary Advertising Fund [Member] | Variable Interest Entity Primary Beneficiary Advertising Fund [Member] | Variable Interest Entity Primary Beneficiary Advertising Fund [Member] | ||
Ad Fund | ||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Consolidated Non-owned restaurants | 345 | ' | 365 | ' | ' | ' | ' | ' |
Number of Consolidated Non-owned restaurants, percentage | 7.90% | ' | 8.60% | ' | ' | ' | ' | ' |
Capital expenditures | 132,726,000 | 112,812,000 | ' | 63,000,000 | ' | ' | ' | ' |
Advertising funds spent | ' | ' | ' | ' | 53,400,000 | 49,300,000 | 182,600,000 | 171,100,000 |
Cost of the shares held by the Trust | 14,969,000 | ' | 13,356,000 | ' | ' | ' | ' | ' |
Company_Contributions_to_Canad
Company Contributions to Canadian and U.S. Advertising Funds (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Company contributions | 6,227 | 5,820 | 18,464 | 17,204 |
Company Contribution | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Company contributions | 2,651 | 2,651 | 8,163 | 7,972 |
Non-owned Restaurants | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Company contributions | 3,576 | 3,169 | 10,301 | 9,232 |
Revenues_and_Expenses_of_Varia
Revenues and Expenses of Variable Interest Entities (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Sales | 575,780 | 568,541 | 1,668,229 | 1,655,615 | ||||
Total revenues | 825,353 | 802,040 | 2,357,029 | 2,308,905 | ||||
Cost of sales | 501,856 | 497,617 | 1,452,302 | 1,455,437 | ||||
Operating expenses | 78,307 | 73,205 | 231,026 | 211,444 | ||||
Asset impairment (note 14) | 2,889 | 0 | 2,889 | -372 | ||||
Operating income | 168,828 | 153,659 | 473,324 | 444,121 | ||||
Interest expense | 9,406 | 8,509 | 26,991 | 25,057 | ||||
Income before income taxes | 160,341 | 145,910 | 448,971 | 421,258 | ||||
Income taxes | 45,386 | 38,956 | 122,531 | 115,088 | ||||
Net income attributable to non-controlling interests | -1,092 | -1,256 | -2,670 | -3,626 | ||||
Restaurant VIEs | ' | ' | ' | ' | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Sales | 96,049 | 85,442 | 276,273 | 248,915 | ||||
Advertising levies | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Total revenues | 96,049 | 85,442 | 276,273 | 248,915 | ||||
Cost of sales | 94,302 | [2] | 83,926 | [2] | 272,648 | [2] | 244,580 | [2] |
Operating expenses | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Asset impairment (note 14) | 441 | [3] | 0 | [3] | 441 | [3] | 0 | [3] |
Operating income | 1,306 | 1,516 | 3,184 | 4,335 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Income before income taxes | 1,306 | 1,516 | 3,184 | 4,335 | ||||
Income taxes | 214 | 260 | 514 | 709 | ||||
Net income attributable to non-controlling interests | 1,092 | 1,256 | 2,670 | 3,626 | ||||
Ad Fund VIEs | ' | ' | ' | ' | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Advertising levies | 2,865 | [1] | 1,727 | [1] | 7,965 | [1] | 3,270 | [1] |
Total revenues | 2,865 | 1,727 | 7,965 | 3,270 | ||||
Cost of sales | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Operating expenses | 2,379 | [1] | 1,467 | [1] | 6,771 | [1] | 2,529 | [1] |
Asset impairment (note 14) | 0 | [3] | 0 | [3] | 0 | 0 | [3] | |
Operating income | 486 | 260 | 1,194 | 741 | ||||
Interest expense | 486 | 260 | 1,194 | 741 | ||||
Income before income taxes | 0 | 0 | 0 | 0 | ||||
Income taxes | 0 | 0 | 0 | 0 | ||||
Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 | ||||
VIEs | ' | ' | ' | ' | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Sales | 96,049 | 85,442 | 276,273 | 248,915 | ||||
Advertising levies | 2,865 | [1] | 1,727 | [1] | 7,965 | [1] | 3,270 | [1] |
Total revenues | 98,914 | 87,169 | 284,238 | 252,185 | ||||
Cost of sales | 94,302 | [2] | 83,926 | [2] | 272,648 | [2] | 244,580 | [2] |
Operating expenses | 2,379 | [1] | 1,467 | [1] | 6,771 | [1] | 2,529 | [1] |
Asset impairment (note 14) | 441 | [3] | 0 | 441 | [3] | 0 | [3] | |
Operating income | 1,792 | 1,776 | 4,378 | 5,076 | ||||
Interest expense | 486 | 260 | 1,194 | 741 | ||||
Income before income taxes | 1,306 | 1,516 | 3,184 | 4,335 | ||||
Income taxes | 214 | 260 | 514 | 709 | ||||
Net income attributable to non-controlling interests | 1,092 | 1,256 | 2,670 | 3,626 | ||||
[1] | Generally, the advertising levies that are not related to the Expanded Menu Board Program are netted with advertising and marketing expenses incurred by the advertising funds in operating expenses, as these contributions are designated for specific purposes. The Company acts as an agent with regard to these contributions. | |||||||
[2] | Includes rents, royalties, advertising expenses and product purchases from the Company which are eliminated upon the consolidation of these VIEs. | |||||||
[3] | The Company recognized an impairment charge in the third quarter of 2013 related to certain underperforming markets in the U.S. (see note 14). |
Assets_and_Liabilities_of_Vari
Assets and Liabilities of Variable Interest Entities (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jan. 01, 2012 | ||
In Thousands, unless otherwise specified | ||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 44,877 | 120,139 | 135,062 | 126,497 | ||
Advertising fund restricted assets – current | 48,722 | 45,337 | ' | ' | ||
Property and equipment, net | 1,615,880 | 1,553,308 | ' | ' | ||
Other long-term assets | 81,870 | 64,796 | ' | ' | ||
Total assets | 2,265,752 | 2,284,179 | ' | ' | ||
Other current liabilities | 150,997 | 197,871 | ' | ' | ||
Other long-term liabilities | 115,752 | 109,614 | ' | ' | ||
Equity of VIEs | 1,028 | 2,853 | ' | ' | ||
Total liabilities and equity | 2,265,752 | 2,284,179 | ' | ' | ||
Restaurant VIEs | ' | ' | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 8,299 | 10,851 | ' | ' | ||
Advertising fund restricted assets – current | 0 | 0 | ' | ' | ||
Other current assets | 7,355 | 6,770 | ' | ' | ||
Property and equipment, net | 19,957 | 19,536 | ' | ' | ||
Other long-term assets | 57 | 572 | ' | ' | ||
Total assets | 35,668 | 37,729 | ' | ' | ||
Notes payable to Tim Hortons Inc. – current | 12,321 | [1] | 13,637 | [1] | ' | ' |
Advertising fund liabilities – current | 0 | 0 | ' | ' | ||
Other current liabilities | 11,934 | [2] | 14,548 | [2] | ' | ' |
Notes payable to Tim Hortons Inc. - long-term | 1,145 | [1] | 804 | [1] | ' | ' |
Long-term debt | 0 | [2] | 0 | [2] | ' | ' |
Other long-term liabilities | 9,240 | 5,887 | ' | ' | ||
Total liabilities | 34,640 | 34,876 | ' | ' | ||
Equity of VIEs | 1,028 | 2,853 | ' | ' | ||
Total liabilities and equity | 35,668 | 37,729 | ' | ' | ||
Ad Fund VIEs | ' | ' | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ' | ' | ||
Advertising fund restricted assets – current | 48,722 | 45,337 | ' | ' | ||
Other current assets | 0 | 0 | ' | ' | ||
Property and equipment, net | 65,515 | 57,925 | ' | ' | ||
Other long-term assets | 1,816 | 2,095 | ' | ' | ||
Total assets | 116,053 | 105,357 | ' | ' | ||
Notes payable to Tim Hortons Inc. – current | 0 | [1] | 0 | [1] | ' | ' |
Advertising fund liabilities – current | 63,672 | 44,893 | ' | ' | ||
Other current liabilities | 8,345 | [2] | 9,919 | [2] | ' | ' |
Notes payable to Tim Hortons Inc. - long-term | 0 | [1] | 0 | [1] | ' | ' |
Long-term debt | 42,375 | [2] | 46,849 | [2] | ' | ' |
Other long-term liabilities | 1,661 | 3,696 | ' | ' | ||
Total liabilities | 116,053 | 105,357 | ' | ' | ||
Equity of VIEs | 0 | 0 | ' | ' | ||
Total liabilities and equity | 116,053 | 105,357 | ' | ' | ||
[1] | Various assets and liabilities are eliminated upon the consolidation of these VIEs, the most significant of which are the FIP Notes payable to the Company, which reduces the Notes receivable, net reported on the Condensed Consolidated Balance Sheet (see note 5). | |||||
[2] | Includes $50.4 million of debt relating to the Expanded Menu Board Program (December 30, 2012: $56.5 million), of which $8.1 million is recognized in Other current liabilities (December 30, 2012: $9.7 million) with the remainder recognized as Long-term debt. |
Assets_and_Liabilities_of_Vari1
Assets and Liabilities of Variable Interest Entities (Parenthetical) (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Other liabilities | 20,549 | 20,781 |
Ad Fund | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Advertising fund debt | 50,446 | 56,500 |
Other liabilities | 8,100 | 9,700 |
Information_on_Reportable_Segm
Information on Reportable Segments (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Asset Impairment Charges | 2,889 | 0 | 2,889 | -372 | ||||
Revenues | 825,353 | 802,040 | 2,357,029 | 2,308,905 | ||||
Operating income | 168,828 | 153,659 | 473,324 | 444,121 | ||||
Interest, Net | -8,487 | -7,749 | -24,353 | -22,863 | ||||
Income before income taxes | 160,341 | 145,910 | 448,971 | 421,258 | ||||
Capital expenditures | ' | ' | 132,726 | 112,812 | ||||
U.S. | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Asset Impairment Charges | 2,500 | 0 | ' | -400 | ||||
Operating Segments | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 726,439 | [1] | 714,871 | [1] | 2,072,791 | [1] | 2,056,720 | [1] |
Operating income | 167,989 | 160,448 | 479,978 | 448,887 | ||||
Capital expenditures | 44,454 | 46,184 | 132,726 | 112,812 | ||||
Operating Segments | Canada | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 676,006 | [1] | 672,684 | [1] | 1,927,361 | [1] | 1,923,928 | [1] |
Operating income | 179,597 | 171,990 | 500,178 | 484,576 | ||||
Capital expenditures | 30,275 | 27,462 | 90,696 | 70,608 | ||||
Operating Segments | U.S. | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 47,019 | [1] | 39,254 | [1] | 132,687 | [1] | 120,837 | [1] |
Operating income | 2,717 | [2] | 1,458 | [2] | 6,214 | [2] | 7,213 | [2] |
Capital expenditures | 8,913 | 15,827 | 32,059 | 34,516 | ||||
Operating Segments | Corporate Services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 3,414 | [1] | 2,933 | [1] | 12,743 | [1] | 11,955 | [1] |
Operating income | -14,325 | -13,000 | -26,414 | -42,902 | ||||
Capital expenditures | 5,266 | 2,895 | 9,971 | 7,688 | ||||
VIEs | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 98,914 | 87,169 | 284,238 | 252,185 | ||||
Operating income | 1,792 | [2] | 1,776 | [2] | 4,378 | [2] | 5,076 | [2] |
Corporate Reorganization Expenses | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | -953 | -8,565 | -11,032 | -9,842 | ||||
[1] | There are no inter-segment revenues included in the above table. | |||||||
[2] | The Company recognized an impairment charge of $2.9 million in the third quarter and year-to-date period of 2013 (third quarter of fiscal 2012: nil; year-to-date period of 2012 $(0.4) million) related to certain underperforming markets in the U.S., $2.5 million of which is recognized in our U.S. segment (third quarter of 2012: nil; year-to-date period of 2012: $(0.4) million), remainder recognized in VIEs. |
Reconciliation_of_Total_Report
Reconciliation of Total Reportable Segment Property and Equipment and Total Assets (Detail) (CAD) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 1,615,880 | 1,553,308 | ||
Consolidated total assets | 2,265,752 | 2,284,179 | ||
Operating Segments | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 1,533,982 | 1,479,128 | ||
Consolidated total assets | 1,953,974 | 1,856,826 | ||
Operating Segments | Canada | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 962,600 | [1] | 915,733 | [1] |
Consolidated total assets | 1,246,847 | 1,175,552 | ||
Operating Segments | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 398,123 | [1] | 378,457 | [1] |
Consolidated total assets | 428,247 | 400,231 | ||
Operating Segments | Corporate Services | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 173,259 | [2] | 184,938 | [2] |
Consolidated total assets | 278,880 | 281,043 | ||
VIEs | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Property and equipment, net | 81,898 | 74,180 | ||
Consolidated total assets | 148,153 | 139,462 | ||
Unallocated | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Consolidated total assets | 163,625 | [3] | 287,891 | [3] |
[1] | Includes primarily restaurant-related assets such as land, building and leasehold improvements. | |||
[2] | Includes property and equipment related to distribution services, manufacturing activities, and other corporate assets. | |||
[3] | Includes Cash and cash equivalents, Restricted cash and cash equivalents, Deferred income taxes and Prepaids, except as related to VIEs. |
Consolidated_Sales_and_Cost_of
Consolidated Sales and Cost of Sales Information (Detail) (CAD) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Distribution sales | 473,641 | 475,243 | 1,373,389 | 1,386,245 |
Company-operated restaurant sales | 6,090 | 7,856 | 18,567 | 20,455 |
Sales from VIEs | 96,049 | 85,442 | 276,273 | 248,915 |
Total Sales | 575,780 | 568,541 | 1,668,229 | 1,655,615 |
Distribution cost of sales | 411,290 | 414,439 | 1,185,862 | 1,214,611 |
Company-operated restaurant cost of sales | 6,207 | 8,042 | 19,830 | 21,819 |
Cost of sales from VIEs | 84,359 | 75,136 | 246,610 | 219,007 |
Total Cost of sales | 501,856 | 497,617 | 1,452,302 | 1,455,437 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], CAD) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Subsequent Event [Line Items] | ' |
Line of Credit Facility, Expiration Period | '364 days |
Line of Credit Facility, Current Borrowing Capacity | 400 |
Line of Credit Facility, Maximum Borrowing Capacity | 400 |
Rate Of Reduction Of Increased Credit Facility With Proceeds From Debt Issuance | 100.00% |
Maximum | ' |
Subsequent Event [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 400 |