Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended | |||
Dec. 29, 2013 | Feb. 21, 2014 | Jun. 28, 2013 | Jun. 28, 2013 | |
USD ($) | CAD | |||
Document And Entity Information [Abstract] | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 29-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Trading Symbol | 'THI | ' | ' | ' |
Entity Registrant Name | 'Tim Hortons Inc. | ' | ' | ' |
Entity Central Index Key | '0001345111 | ' | ' | ' |
Current Fiscal Year End Date | '--12-29 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 138,165,308 | ' | ' |
Entity Public Float | ' | ' | $8,172,497,059 | 8,587,689,502 |
Consolidated_Statement_Of_Oper
Consolidated Statement Of Operations (CAD) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Revenues | ' | ' | ' |
Sales | 2,265,884 | 2,225,659 | 2,012,170 |
Franchise revenues | ' | ' | ' |
Rents and royalties | 821,221 | 780,992 | 733,217 |
Franchise fees | 168,428 | 113,853 | 107,579 |
Franchise Revenue, Total | 989,649 | 894,845 | 840,796 |
Total revenues | 3,255,533 | 3,120,504 | 2,852,966 |
Costs and expenses | ' | ' | ' |
Cost of sales | 1,972,903 | 1,957,338 | 1,772,375 |
Operating expenses | 321,836 | 284,321 | 256,676 |
Franchise fee costs | 162,605 | 116,644 | 104,884 |
General and administrative expenses | 159,523 | 163,885 | 165,598 |
Equity (income) | -15,170 | -14,693 | -14,354 |
Corporate reorganization expenses | 11,761 | 18,874 | 0 |
De-branding costs | 19,016 | 0 | 0 |
Asset impairment | 2,889 | -372 | 372 |
Other (income), net | -925 | -18 | -2,060 |
Total costs and expenses, net | 2,634,438 | 2,525,979 | 2,283,491 |
Operating income | 621,095 | 594,525 | 569,475 |
Interest (expense) | -39,078 | -33,709 | -30,000 |
Interest income | 3,612 | 3,296 | 4,127 |
Income before income taxes | 585,629 | 564,112 | 543,602 |
Income taxes | 156,980 | 156,346 | 157,854 |
Net income | 428,649 | 407,766 | 385,748 |
Net income attributable to non controlling interests | 4,280 | 4,881 | 2,936 |
Net income attributable to Tim Hortons Inc. | 424,369 | 402,885 | 382,812 |
Basic earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 2.83 | 2.6 | 2.36 |
Diluted earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 2.82 | 2.59 | 2.35 |
Weighted average number of common shares outstanding (in thousands) b Basic (note 4) (in shares) | 150,155 | 155,160 | 162,145 |
Weighted average number of common shares outstanding (in thousands) b Diluted (note 4) (in shares) | 150,622 | 155,676 | 162,597 |
Dividends per common share (in Canadian dollars per share) | 1.04 | 0.84 | 0.68 |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | 428,649 | 407,766 | 385,748 |
Other comprehensive income (loss) | ' | ' | ' |
Translation adjustments gain (loss) | 31,333 | -7,268 | 9,634 |
Unrealized gains (losses) from cash flow hedges | ' | ' | ' |
Gain (loss) from change in fair value of derivatives | 174 | -5,009 | 3,243 |
Amount of net (gain) loss reclassified to earnings during the year | -3,002 | 24 | 4,840 |
Tax (expense) recovery | -1,579 | 1,442 | -2,345 |
Other comprehensive income (loss) | 26,926 | -10,811 | 15,372 |
Comprehensive income | 455,575 | 396,955 | 401,120 |
Comprehensive income attributable to non controlling interests | 4,280 | 4,881 | 2,936 |
Comprehensive income attributable to Tim Hortons Inc. | 451,295 | 392,074 | 398,184 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | 50,414 | 120,139 |
Restricted cash and cash equivalents | 155,006 | 150,574 |
Accounts receivable, net | 210,664 | 171,605 |
Notes receivable, net | 4,631 | 7,531 |
Deferred income taxes | 10,165 | 7,142 |
Inventories and other, net | 104,326 | 107,000 |
Advertising fund restricted assets | 39,783 | 45,337 |
Total current assets | 574,989 | 609,328 |
Property and equipment, net | 1,685,043 | 1,553,308 |
Notes receivable, net | 4,483 | 1,246 |
Deferred income taxes | 11,018 | 10,559 |
Equity investments | 40,738 | 41,268 |
Other assets | 117,552 | 68,470 |
Total assets | 2,433,823 | 2,284,179 |
Current liabilities | ' | ' |
Accounts payable | 204,514 | 169,762 |
Accrued liabilities | 274,008 | 227,739 |
Deferred income taxes | 0 | 197 |
Advertising fund liabilities | 59,912 | 44,893 |
Short-term borrowings | 30,000 | 0 |
Current portion of long-term obligations | 17,782 | 20,781 |
Total current liabilities | 586,216 | 463,372 |
Long-term obligations | ' | ' |
Long-term debt | 843,020 | 406,320 |
Capital leases | 121,049 | 104,383 |
Deferred income taxes | 9,929 | 10,399 |
Other long-term liabilities | 112,090 | 109,614 |
Total long-term obligations | 1,086,088 | 630,716 |
Commitments and contingencies | ' | ' |
Equity of Tim Hortons Inc. | ' | ' |
Common shares ($2.84 stated value per share), Authorized: unlimited shares. Issued: 141,329,010 and 153,404,839 shares, respectively | 400,738 | 435,033 |
Common shares held in Trust, at cost: 293,816 and 316,923 shares, respectively | -12,924 | -13,356 |
Contributed surplus | 11,033 | 10,970 |
Retained earnings | 474,409 | 893,619 |
Accumulated other comprehensive loss | -112,102 | -139,028 |
Total equity of Tim Hortons Inc. | 761,154 | 1,187,238 |
Non controlling interests | 365 | 2,853 |
Total equity | 761,519 | 1,190,091 |
Total liabilities and equity | 2,433,823 | 2,284,179 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (CAD) | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Statement of Financial Position [Abstract] | ' | ' |
Common shares, stated value per share (in Canadian dollars per share) | 2.84 | 2.84 |
Common Stock Shares Authorized Unlimited | 'unlimited | 'unlimited |
Common shares, issued | 141,329,010 | 153,404,839 |
Common shares held in Trust, shares | 293,816 | 316,923 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Cash flows provided from (used in) operating activities | ' | ' | ' |
Net income | 428,649 | 407,766 | 385,748 |
Adjustments to reconcile net income to net cash provided from operating activities | ' | ' | ' |
Depreciation and amortization | 161,809 | 132,167 | 115,869 |
Stock-based compensation expense | 21,989 | 11,862 | 17,323 |
Deferred income taxes | -4,885 | 5,065 | -5,433 |
Changes in operating assets and liabilities | ' | ' | ' |
Restricted cash and cash equivalents | -3,391 | -20,182 | -63,264 |
Accounts receivable | -24,650 | -1,346 | 2,099 |
Inventories and other | 2,836 | 33,415 | -32,057 |
Accounts payable and accrued liabilities | 46,766 | 6,692 | 349 |
Taxes | 6,092 | -18,065 | -39,197 |
Settlement of interest rate forwards | -9,841 | 0 | 0 |
Deposit with tax authorities | -36,532 | 0 | 0 |
Other | 9,893 | 1,913 | 10,030 |
Net cash provided from operating activities | 598,735 | 559,287 | 391,467 |
Cash flows (used in) provided from investing activities | ' | ' | ' |
Capital expenditures | -221,000 | -186,777 | -176,890 |
Capital expenditures b Advertising fund | -21,970 | -49,031 | -4,377 |
Proceeds from sale of restricted investments | 0 | 0 | 38,000 |
Other investing activities | 5,708 | -6,400 | -9,460 |
Net cash (used in) investing activities | -237,262 | -242,208 | -152,727 |
Cash flows (used in) provided from financing activities | ' | ' | ' |
Repurchase of common shares | -720,549 | -225,200 | -572,452 |
Dividend payments to common shareholders | -156,141 | -130,509 | -110,187 |
Distributions, net to non controlling interests | -2,858 | -3,913 | -6,692 |
Net proceeds from issue of debt | 448,092 | 0 | 0 |
Net proceeds from issue of debt b Advertising fund | 0 | 51,850 | 3,699 |
Short-term borrowing | 30,000 | 0 | 0 |
Principal payments on long-term debt obligations | -36,175 | -7,710 | -8,586 |
Other financing activities | 3,550 | -6,885 | 6,398 |
Net cash (used in) financing activities | -434,081 | -322,367 | -687,820 |
Effect of exchange rate changes on cash | 2,883 | -1,070 | 1,223 |
(Decrease) in cash and cash equivalents | -69,725 | -6,358 | -447,857 |
Cash and cash equivalents at beginning of year | 120,139 | 126,497 | 574,354 |
Cash and cash equivalents at end of year | 50,414 | 120,139 | 126,497 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Interest paid | 36,268 | 31,447 | 29,807 |
Income taxes paid | 191,503 | 175,877 | 207,140 |
Non-cash investing and financing activities: | ' | ' | ' |
Capital lease obligations incurred | 34,712 | 26,095 | 27,789 |
Consolidated_Statement_Of_Equi
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. 02, 2011 | ' | 484,050 | -9,542 | 0 | 1,105,882 | -137,804 | -5,785 | 1,436,801 | 5,641 | 1,442,442 |
Balance as (in shares) at Jan. 02, 2011 | ' | 170,664 | 278 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares (in shares) | ' | -12,849 | -61 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | -36,492 | -2,797 | ' | -535,960 | ' | ' | -575,249 | ' | -575,249 |
Disbursed or sold from the Trust, shares | ' | ' | 62 | ' | ' | ' | ' | ' | ' | ' |
Disbursed or sold from the Trust | ' | ' | 2,203 | ' | ' | ' | ' | 2,203 | ' | 2,203 |
Stock based compensation | ' | ' | ' | 6,375 | -5,579 | ' | ' | 796 | ' | 796 |
Other comprehensive income (loss) | 15,372 | ' | ' | ' | ' | 9,634 | 5,738 | 15,372 | ' | 15,372 |
Net income attributable to NCI | 2,936 | ' | ' | ' | ' | ' | ' | ' | 2,936 | ' |
Net income | 385,748 | ' | ' | ' | ' | ' | ' | ' | ' | 385,748 |
Net income attributable to THI | 382,812 | ' | ' | ' | 382,812 | ' | ' | 382,812 | ' | ' |
Dividends and distributions, net | ' | ' | ' | ' | -110,187 | ' | ' | -110,187 | -6,692 | -116,879 |
Balance as at Jan. 01, 2012 | ' | 447,558 | -10,136 | 6,375 | 836,968 | -128,170 | -47 | 1,152,548 | 1,885 | 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) | ' | -4,410 | -112 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | -12,525 | -6,154 | ' | -212,675 | ' | ' | -231,354 | ' | -231,354 |
Disbursed or sold from the Trust, shares | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' |
Disbursed or sold from the Trust | ' | ' | 2,934 | ' | ' | ' | ' | 2,934 | ' | 2,934 |
Stock based compensation | ' | ' | ' | 4,595 | -2,143 | ' | ' | 2,452 | ' | 2,452 |
Other comprehensive income (loss) | -10,811 | ' | ' | ' | ' | -7,268 | -3,543 | -10,811 | ' | -10,811 |
NCI transactions | ' | ' | ' | ' | -907 | ' | ' | -907 | 907 | 0 |
Net income attributable to NCI | 4,881 | ' | ' | ' | ' | ' | ' | ' | 4,881 | ' |
Net income | 407,766 | ' | ' | ' | ' | ' | ' | ' | ' | 407,766 |
Net income attributable to THI | 402,885 | ' | ' | ' | 402,885 | ' | ' | 402,885 | ' | ' |
Dividends and distributions, net | ' | ' | ' | ' | -130,509 | ' | ' | -130,509 | -4,820 | -135,329 |
Balance as at Dec. 30, 2012 | 1,190,091 | 435,033 | -13,356 | 10,970 | 893,619 | -135,438 | -3,590 | 1,187,238 | 2,853 | 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) | ' | -12,076 | -43 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | -34,295 | -2,453 | ' | -686,243 | ' | ' | -722,991 | ' | -722,991 |
Disbursed or sold from the Trust, shares | ' | ' | 66 | ' | ' | ' | ' | ' | ' | ' |
Disbursed or sold from the Trust | ' | ' | 2,885 | ' | ' | ' | ' | 2,885 | ' | 2,885 |
Stock based compensation | ' | ' | ' | 63 | -712 | ' | ' | -649 | ' | -649 |
Other comprehensive income (loss) | 26,926 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income, before reclassifications | ' | ' | ' | ' | ' | 31,333 | -2,407 | 28,926 | ' | 28,926 |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | -2,000 | -2,000 | ' | -2,000 |
NCI transactions | ' | ' | ' | ' | -483 | ' | ' | -483 | 483 | 0 |
Net income attributable to NCI | 4,280 | ' | ' | ' | ' | ' | ' | ' | 4,280 | ' |
Net income | 428,649 | ' | ' | ' | ' | ' | ' | ' | ' | 428,649 |
Net income attributable to THI | 424,369 | ' | ' | ' | 424,369 | ' | ' | 424,369 | ' | ' |
Dividends and distributions, net | ' | ' | ' | ' | -156,141 | ' | ' | -156,141 | -7,251 | -163,392 |
Balance as at Dec. 29, 2013 | 761,519 | 400,738 | -12,924 | 11,033 | 474,409 | -104,105 | -7,997 | 761,154 | 365 | 761,519 |
Balance as (in shares) at Dec. 29, 2013 | ' | 141,329 | 294 | ' | ' | ' | ' | ' | ' | ' |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||
Dec. 29, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
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 blend coffee, espresso-based hot and cold specialty drinks (including lattes, cappuccinos and espresso shots), iced cappuccinos, specialty and steeped teas, cold beverages, fruit smoothies, home-style soups, chili, grilled Panini and classic sandwiches, wraps, yogurt and berries, oatmeal, breakfast sandwiches and wraps, and fresh baked goods, including donuts, Timbits®, bagels, muffins, cookies, croissants, Danishes, pastries and more. 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: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Systemwide Restaurant Count | ||||||||||
Franchised restaurants in operation – beginning of period | 4,242 | 3,996 | 3,730 | |||||||
Restaurants opened | 258 | 271 | 294 | |||||||
Restaurants closed | (39 | ) | (26 | ) | (29 | ) | ||||
Net transfers within the franchised system | 8 | 1 | 1 | |||||||
Franchised restaurants in operation – end of period | 4,469 | 4,242 | 3,996 | |||||||
Company-operated restaurants – end of period | 16 | 22 | 18 | |||||||
Total systemwide restaurants – end of period(1) | 4,485 | 4,264 | 4,014 | |||||||
% of restaurants franchised – end of period | 99.6 | % | 99.5 | % | 99.6 | % | ||||
________________ | ||||||||||
(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 255 primarily licensed locations in the Republic of Ireland and the United Kingdom as at December 29, 2013 (2012: 245 restaurants; 2011: 261 restaurants). | ||||||||||
Fiscal year | ||||||||||
Each of the fiscal years presented consists of 52 weeks and ends on the Sunday nearest to December 31. | ||||||||||
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”). | ||||||||||
The functional currency of Tim Hortons Inc. is the Canadian dollar, as the majority of the Company’s cash flows are in Canadian dollars. The functional currency of each of the Company’s subsidiaries is typically the primary currency in which each subsidiary operates, which is primarily the Canadian dollar or U.S. dollar. The majority of the Company’s operations, restaurants and cash flows are based in Canada, and the Company is primarily managed in Canadian dollars. As a result, the Company’s reporting currency is the Canadian dollar. | ||||||||||
The 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”). 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. | ||||||||||
Use of estimates | ||||||||||
The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make assumptions and estimates. These assumptions and estimates affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Estimates and judgments are inherent in, but not limited to, the following: income taxes; valuations used when assessing potential impairment of long-lived assets and/or restaurant closure costs; the estimation of the useful lives of long-lived assets; whether an entity is a VIE and whether the Company is the primary beneficiary of that VIE and other related estimates; the fair value of stock-based compensation and the related stock-based compensation expense; the probability of forecast transactions occurring for purposes of applying hedge accounting; and reserve contingencies for litigation and various other commitments, contingencies and accruals. While management applies its judgment based on assumptions believed to be reasonable under the circumstances and at the time, actual results could vary from these assumptions, and estimates may vary depending on the assumptions used. The Company evaluates and updates its assumptions and estimates based on new events occurring, additional information being obtained or more experience being acquired. | ||||||||||
Earnings per share | ||||||||||
Basic earnings per common share attributable to Tim Hortons Inc. are computed by dividing Net income attributable to Tim Hortons Inc. in the Consolidated Statement of Operations by the weighted average number of common shares outstanding. Diluted computations are based on the treasury stock method and include assumed issuances of outstanding restricted stock units (“RSUs”) and stock options with tandem stock appreciation rights (“SARs”), that take into account: (i) the amount, if any, the employee must pay upon exercise; (ii) the amount of compensation cost attributed to future services and not yet recognized; and (iii) the amount of tax benefits (both current and deferred), if any, that would be credited to contributed surplus assuming exercise of the options, net of shares assumed to be repurchased from the assumed proceeds, when dilutive. | ||||||||||
Revenue recognition | ||||||||||
The timing of revenue recognition for Sales (distribution, Company-operated restaurants and consolidated Non-owned restaurants) and Franchise revenues (i.e., rents, royalties and franchise fees) does not involve significant estimates and assumptions. | ||||||||||
Sales | ||||||||||
The Company operates warehouses in Canada to distribute coffee, shelf-stable and other dry goods, and refrigerated and frozen products to its extensive restaurant system. Revenues from distribution sales are recognized upon delivery. Revenues from Company-operated restaurants and consolidated Non-owned restaurants consolidated pursuant to applicable accounting rules (“consolidated Non-owned restaurants”) are recognized upon tender of payment at the time of sale. | ||||||||||
Franchise revenues | ||||||||||
Rental revenue, excluding contingent property and equipment rent, is recognized on a straight-line basis. Contingent rent, and royalties based on a percentage of monthly sales, are recognized as revenue on an accrual basis in the month earned. Restaurant owners may receive assistance through lower rents and royalties and reductions in, or assistance with, certain other operating costs (“relief”). Relief is recognized as a reduction to the Company’s rents and royalties revenues. Franchise fees are collected at the time of sale or extension of franchise rights. Franchise fees and equipment sales are generally recognized as revenue when each restaurant commences operations or re-opens subsequent to a renovation and collectability is reasonably assured. | ||||||||||
The advertising levies paid by restaurant owners to the Company’s advertising funds, other than those from Company-operated restaurants and Non-owned consolidated restaurants, are generally netted in the Consolidated Statement of Operations because the contributions to these advertising funds are designated for specific purposes, and the Company acts, in substance, as an agent with regard to these contributions. Advertising levies intended to pay for specific long-lived assets acquired by the advertising funds are accrued in the month earned on a gross basis (see Variable Interest Entities below). | ||||||||||
Tim Cards | ||||||||||
Proceeds from the initial sale or reloading of the Company’s Tim Card® quick-pay cash card program (“Tim Card”) balances are recognized as Restricted cash and cash equivalents in the Consolidated Balance Sheet along with a corresponding obligation. A Tim Card entitles the holder to use the value for purchasing products and the amounts generally are not redeemable for cash. When a guest uses a Tim Card to purchase products at a Company-operated restaurant or consolidated Non-owned restaurant, the Company recognizes the revenue from the sale of the product and relieves the obligation. When a customer uses a Tim Card at a franchised restaurant, the Company remits the cash to the restaurant owner from Restricted cash and cash equivalents and relieves the obligation. | ||||||||||
While the Company will honour all valid Tim Cards presented for payment, the Company may, based on a historical review after the program has been in place for some time, determine the likelihood of redemption to be remote for certain card balances (“breakage”) due to, among other factors, long periods of inactivity or historical redemption patterns. In these circumstances, to the extent management determines that there is no requirement for remitting funds to government agencies under unclaimed property laws, any such funds may be remitted to the Company’s advertising and promotion funds. No such amounts for breakage have been recognized for Tim Cards since inception, as we continue to assess historical redemption patterns. | ||||||||||
Advertising costs | ||||||||||
Advertising costs are expensed as incurred, with the exception of media development costs which are expensed in the month that the advertisement is first communicated. | ||||||||||
Advertising costs, related to Company-operated restaurants and consolidated Non-owned restaurants, consisting of contributions made to the Company’s advertising funds, are recognized in Cost of sales in the Consolidated Statement of Operations. Contributions made to the advertising funds by the Company to fund additional advertising programs are included in General and administrative expenses in the Consolidated Statement of Operations. Contributions to the advertising funds are expensed when incurred. | ||||||||||
Stock-based compensation | ||||||||||
The Company’s 2006 Stock Incentive Plan (“2006 Plan”) and the 2012 Stock Incentive Plan (“2012 Plan”) are omnibus plans, designed to allow for a broad range of equity-based compensation awards in the form of RSUs, stock options, SARs, dividend equivalent rights (“DERs”), performance awards and share awards. The 2012 Plan was approved by shareholders at the annual and special meeting of shareholders held on May 10, 2012. The 2012 Plan was adopted as a result of the substantial completion of the 2006 Plan, under which no new awards will be granted. Outstanding awards granted under the 2006 Plan will continue to be settled using shares registered under the 2006 Plan. | ||||||||||
The Company has provided compensation to certain employees under the 2006 Plan and, subsequent to May 10, 2012, the 2012 Plan, in the form of RSUs and stock options with tandem SARs. In addition, the Company has issued deferred stock units (“DSUs”) to non-employee directors under the Company’s Non-Employee Director Deferred Stock Unit Plan. | ||||||||||
Restricted stock units | ||||||||||
RSUs are measured at fair value based on the closing price of the Company’s common shares on the Toronto Stock Exchange (“TSX”) on the first business day preceding the grant date. RSUs are expensed on a straight-line basis over the vesting period, which is a maximum 30-month period, except for grants to retirement-eligible employees, which, unless the grant of the RSU is subject to a performance condition, are expensed immediately. These expenses are primarily recognized in General and administrative expenses in the Consolidated Statement of Operations, consistent with the classification of the related employee compensation expense. | ||||||||||
In addition, the Company grants performance-conditioned RSUs to certain of its employees. The performance component is based on prior-year performance and is used to determine the amount of units granted. Performance-conditioned RSUs are expensed on a straight-line basis beginning when the performance measures are set and extends over the performance period (prior to grant) and the vesting period (after the grant), based on management’s determination that the achievement of the performance condition associated with the grant is probable. Both RSUs and performance-conditioned RSUs have accompanying DERs, that accumulate only subsequent to the grant (i.e., not during the performance period). | ||||||||||
RSUs are settled by the Company with the participant, after provision (on the account of the participant) for the payment of the participant’s minimum statutory withholding tax requirements, primarily by way of disbursement of common shares from the TDL RSU Employee Benefit Plan Trust (the “Trust”) or by an open market purchase by an agent of the Company on behalf of the eligible employee. The method of settlement is primarily dependent on the jurisdiction where the employee resides, but securities law, regulatory requirements and other factors are also considered. Since RSUs are settled with common shares, they are accounted for as equity-settled awards. | ||||||||||
Deferred stock units | ||||||||||
DSUs are granted in relation to the equity portion of the Board retainers paid as compensation for services provided by non-employee members of the Company’s Board of Directors, who may also elect to receive the remainder of their Board and Committee compensation in the form of DSUs. DSUs are expensed on the date of grant since they vest immediately, although they are not payable until a director’s separation from service. DSUs are notional units which track the value of the Company’s common shares. These units are settled in cash based on the value of the Company’s common shares on the TSX on the date of the director’s separation of service from the Company. As a cash-settled award, the related liability is revalued to fair value at the end of each reporting period, and recognized in General and administrative expenses in the Consolidated Statement of Operations. DSUs have accompanying DERs, which are also expensed as earned and recognized in General and administrative expenses in the Consolidated Statement of Operations. | ||||||||||
Stock options | ||||||||||
The Company uses the Black-Scholes-Merton option pricing model to value outstanding options, which requires the use of subjective assumptions. These assumptions include the estimated length of time employees will retain their stock options before exercising them (the “expected term”), the expected volatility of the Company’s common share price over the expected term, the risk-free interest rate, the dividend yield, and the forfeiture rate. The awards are issued with tandem SARs (see below) and are therefore accounted for as cash-settled awards. This results in a revaluation of the liability to fair value at the end of each reporting period, which is generally recognized in General and administrative expenses in the Consolidated Statement of Operations. The fair value of the options is expensed over the vesting period, except for grants to retirement-eligible employees which are expensed immediately. | ||||||||||
Stock appreciation rights | ||||||||||
SARs may be granted alone or in conjunction with a stock option. A SAR related to an option terminates upon the expiration, forfeiture or exercise of the related option, and is exercisable only to the extent that the related option is exercisable. Conversely, an option related to a SAR terminates upon the expiration, forfeiture or exercise of the related SAR, and is exercisable only to the extent that the related SAR is exercisable. Stock options with tandem SARs enable the employee to exercise the stock option to receive common shares or to exercise the SAR and receive a cash payment, in each case, of an amount equal to the difference between the market price of the common share on the exercise date and the exercise price of the stock option. | ||||||||||
Income taxes | ||||||||||
The Company uses the asset and liability method whereby income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for accounting purposes as compared to tax purposes. A deferred income tax asset or liability is determined for each temporary difference based on the currently enacted tax rates that are expected to be in effect when the underlying items of income and expense are expected to be realized, except for a portion of earnings related to foreign operations where repatriation is not contemplated in the foreseeable future. Income taxes reported in the Consolidated Statement of Operations include the current and deferred portions of the expense. Income taxes applicable to items charged or credited to equity are netted with such items. Changes in deferred income taxes related to a change in tax rates are recognized in the period when the tax rate change is enacted. In addition, the Consolidated Statement of Operations contains items that are non-taxable or non-deductible for income tax purposes and, accordingly, may cause the income tax provision to be different from what it would be if based on statutory rates. | ||||||||||
When considered necessary, the Company records a valuation allowance to reduce deferred tax assets to the balance that is more likely than not to be realized. To determine the valuation allowance, the Company must make estimates and judgments on future taxable income, considering feasible tax planning strategies and taking into account existing facts and circumstances. When the Company determines that the net amount of deferred tax assets could be realized in greater or lesser amounts than recognized, the asset balance and income tax expense reflect the change in the period such determination is made. Due to changes in facts and circumstances and the estimates and judgments that are involved in determining the valuation allowance, future events could result in adjustments to this valuation allowance. | ||||||||||
A tax benefit from an uncertain tax position may be recognized in the Consolidated Financial Statements only if it is more likely than not that the position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Changes in judgment that result in subsequent recognition, de-recognition or a change in measurement of a tax position taken in a prior period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. The Company records interest and potential penalties related to unrecognized tax benefits in Income taxes in the Consolidated Statement of Operations. The Company classifies a liability associated with an unrecognized tax benefit as a long-term liability, except for liabilities that are expected to be settled within the next 12 months. | ||||||||||
The determination of income tax expense takes into consideration amounts that may be needed to cover exposure for open tax years. The number of tax years that remain open and subject to tax audits varies depending on the tax jurisdiction. A number of years may elapse before an uncertain tax position, for which the Company has unrecognized tax benefits, is audited and resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its unrecognized tax benefits reflect management’s current estimate of the expected outcomes. Unrecognized tax benefits are adjusted, as well as the related interest and penalties, in light of subsequent changes in facts and circumstances. Settlement of any particular uncertain tax position may require the use of cash. In addition, the resolution of a matter may result in an adjustment to the provision for income taxes which may impact the effective tax rate in the period of resolution. | ||||||||||
Foreign currency translation | ||||||||||
The functional currency of the Company’s U.S. operating subsidiaries is the U.S. dollar. For such entities, the assets and liabilities are translated at the year-end Canadian dollar exchange rates, and the revenues and expenses are translated at average Canadian dollar exchange rates for the period. Translation adjustments resulting from rate differences between the average rate and year-end rate are recognized as a component of Equity in Other comprehensive income (loss) in the Consolidated Statement of Comprehensive Income. | ||||||||||
Assets and liabilities denominated in a currency other than the functional currency of a subsidiary are translated at the period-end exchange rate and any currency adjustment is recognized in Other income, net in the Consolidated Statement of Operations. | ||||||||||
Cash and cash equivalents | ||||||||||
The Company considers short-term investments, which are highly liquid and have original maturities of three months or less, as cash equivalents. The Company limits the counterparty risk associated with its cash and cash equivalents by utilizing a number of different financial institutions and limiting the total amount of cash and cash equivalents held at any individual financial institution. The Company continually monitors the credit ratings of its counterparties and adjusts its positions, if appropriate. The majority of the cash and cash equivalents held by the Company as at December 29, 2013 and December 30, 2012 are held at Canadian financial institutions. | ||||||||||
Restricted cash and cash equivalents and Restricted investments | ||||||||||
Amounts presented as Restricted cash and cash equivalents in the Company’s Consolidated Balance Sheet represent the net amount of cash loaded onto Tim Cards by guests, less redemptions and loans to the Tim Hortons Advertising and Promotion Fund (Canada) Inc. (“Ad Fund”). The balances are restricted, as per agreement with restaurant owners, and can only be used for the settlement of obligations under the Tim Card program and for other limited purposes, such as loans to the Ad Fund. Since the inception of the Tim Card program, interest earned on Restricted cash and cash equivalents has been contributed to the Company’s advertising funds to help offset costs associated with this program. Obligations under the Tim Card program are included in Accrued liabilities in the Consolidated Balance Sheet. | ||||||||||
Changes in Restricted cash and cash equivalents and obligations under the Tim Card program are reflected in operating activities in the Consolidated Statement of Cash Flows. Purchases of, and proceeds upon, the maturity of Restricted investments are included in investment activities in the Consolidated Statement of Cash Flows. | ||||||||||
Notes receivable, net | ||||||||||
The Company has outstanding Franchise Incentive Program (“FIP”) arrangements with certain U.S. restaurant owners which generally provided interest-free financing (“FIP Note”) for the purchase of certain restaurant equipment, furniture, trade fixtures and signage. | ||||||||||
Notes receivable arise primarily from the FIP Notes and, to a lesser extent, from notes receivable on various equipment and other financing programs. In many cases, the Company will choose to hold a FIP Note beyond the initial term to help a restaurant owner achieve certain profitability targets or to accommodate a restaurant owner seeking to obtain third-party financing. If the restaurant owner does not repay the FIP Note, the Company is able to take back ownership of the restaurant and equipment based on the underlying franchise agreement, which collateralizes the FIP Note and, therefore, minimizes the credit risk to the Company. | ||||||||||
The need for an allowance for uncollectible amounts is reviewed on a specific restaurant owner basis using information available to the Company, including past-due balances, whether the Company has extended the FIP Note beyond the initial term, restaurant sales and profitability targets, collateral available as security, and the financial strength of the restaurant owner. An allowance is recognized for FIP Notes receivable, both principal and imputed interest, when amounts are identified as either uncollectible or impaired. For impaired FIP Notes, the Company has established an allowance for the difference between the net investment in the FIP Note and the current value of the underlying collateral of the FIP Note, which is based primarily on the estimated depreciated replacement cost of the underlying equipment. | ||||||||||
Inventories, net | ||||||||||
Inventories are carried at the lower of cost (moving average) and market value and consist primarily of raw materials such as green coffee beans and finished goods such as restaurant food items, new equipment and parts, and paper supplies. | ||||||||||
Property and equipment, net | ||||||||||
The Company carries its Property and equipment, net in the Consolidated Balance Sheet at cost and depreciates and amortizes these assets using the straight-line method over the following estimated useful lives: | ||||||||||
Depreciation Periods | ||||||||||
Building and leasehold improvements | 10 to 40 years or lease term | |||||||||
Restaurant and other equipment | 7 to 16 years | |||||||||
Capital leases | 8 to 40 years or lease term | |||||||||
Computer hardware and software | 3 to 10 years | |||||||||
Advertising fund property and equipment | 3 to 10 years | |||||||||
Manufacturing and other equipment | 4 to 30 years | |||||||||
Construction in progress | Reclassified to above categories when put in use | |||||||||
The Company is considered to be the owner of certain restaurants leased from an unrelated lessor because the Company constructed some of the structural elements of those restaurants. Accordingly, the Company has included the restaurant construction costs for these restaurants in Property and equipment, net on the Consolidated Balance Sheet and recognized the lessor’s contributions to the construction costs for these certain restaurants as other debt. | ||||||||||
Major improvements are capitalized, while maintenance and repairs are expensed when incurred. | ||||||||||
Impairment of long-lived assets | ||||||||||
Long-lived assets are grouped at the lowest level of independent cash flows and tested for impairment whenever an event or circumstance occurs that indicates impairment may exist (“triggering event”). | ||||||||||
Restaurant-related long-lived assets are grouped into operating markets as this is the lowest identifiable level of independent cash flows. Events such as prolonged negative same-store sales growth in the market, which is a key operating metric, prolonged negative cash flows in the operating market, a higher-than-average number of restaurant closures in any one market, or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of prior to its estimated useful life, are indicators that the Company uses in evaluating whether a triggering event may exist. The Company also considers whether the affected market is developed or developing. In developed markets, the primary indicator for the overall health of an operating market is same-store sales growth. In developing markets, the Company assesses a number of additional factors, including systemwide sales growth, which encompasses new restaurants and same-store sales growth, the stage of growth of the operating market, the average unit sales volume trends, changes in the restaurant composition in the market and overall long-term performance expectations. | ||||||||||
Non-restaurant-related assets are grouped at the lowest level of independent cash flows. Corporate assets, which relate primarily to land, buildings and computer hardware and software systems, are grouped on a consolidated level with all long-lived assets as they support the entire business and do not generate independent cash flows. | ||||||||||
If it is determined that a triggering event has occurred, an undiscounted cash flow analysis is completed on the affected asset group to determine if the future expected undiscounted cash flows of an asset group are sufficient to recover the carrying value of the assets. If it is determined that the undiscounted cash flows are insufficient, then the asset group is deemed to be impaired. The fair value of the long-lived assets is estimated primarily using third-party appraisals or discounted cash flows, as appropriate. If the fair value of the asset group is less than the carrying amount, an impairment loss is recognized for the difference between the carrying amount and the fair value of the asset group. | ||||||||||
Leases | ||||||||||
For operating leases, minimum lease payments, including minimum scheduled rent escalations, are recognized as rent expense on a straight-line basis over the lease term. This term includes certain option periods considered in the lease term and any periods during which the Company has use of the property but is not charged rent by a landlord (“rent holiday”). Contingent rentals are generally based on either a percentage of restaurant sales or as a percentage of restaurant sales in excess of stipulated amounts, and thus are not included in minimum lease payments but are included in rent expense when incurred. Rent incurred during the construction period is expensed. Leasehold improvement incentives paid to the Company by a landlord are recognized as a liability and amortized as a reduction of rent expense over the lease term. | ||||||||||
When determining the lease term for purposes of recording depreciation and rent or for evaluating whether a lease is capital or operating, the Company includes option periods, to the extent it is reasonably assured at the inception of the lease that failure to renew would have a negative economic impact on the Company. | ||||||||||
In the case of property that is leased or subleased by the Company to restaurant owners, minimum lease receipts, including minimum scheduled rent increases, are recognized as rent revenue on a straight-line basis. Contingent rent revenue is generally based on a percentage of franchised restaurant sales or a percentage of franchised restaurant sales in excess of stipulated amounts, and is recognized when these sales levels are met or exceeded. | ||||||||||
Variable interest entities | ||||||||||
The Company identifies its variable interests within equity investments and license or operator arrangements, determines whether the legal entity in which these interests reside constitutes a VIE, and whether the Company is the primary beneficiary and therefore consolidates those VIEs. | ||||||||||
The VIE is consolidated if the Company has the power to direct and either has the obligation to absorb losses or right to receive benefits that potentially could be significant to that VIE. The consolidation of VIEs has no impact on consolidated net income attributable to Tim Hortons Inc. or earnings per share (“EPS”). | ||||||||||
VIEs for which the Company is the primary beneficiary: | ||||||||||
Non-owned restaurants—The Company enters into certain arrangements in which an operator acquires the right to operate a restaurant, but the Company owns the restaurant’s assets. In these arrangements, the Company has the ability to determine which operators manage restaurants and for what duration. The Company previously also entered into FIP arrangements, whereby restaurant owners finance the initial franchise fee and the purchase of restaurant assets. | ||||||||||
In both operator and FIP arrangements, the Company performs an analysis to determine whether the legal entity in which operations are conducted lacks sufficient equity to finance its activities and is therefore a VIE. For the entities determined to be VIEs, if the Company receives potentially significant benefits from these VIEs and is considered to direct the activities that most significantly impact economic performance, then the VIE is consolidated. | ||||||||||
Advertising funds—The Company participates in separate advertising funds for Canada and the U.S. which, on behalf of the Company and restaurant owners, collect contributions and administer funds for advertising and promotional programs to increase sales and enhance the reputation of the Company and its restaurant owners. The Company is the sole shareholder (Canada) and sole member (U.S.) of these funds. As the Company acts as an agent for these specifically designated contributions, the revenues, expenses and cash flows of the funds are generally netted in the Consolidated Statements of Operations and Cash Flows. | ||||||||||
The Trust—In connection with RSUs granted to Company employees, the Company established the Trust, which purchases and retains common shares of the Company to satisfy the Company’s contractual obligation to deliver its common shares to settle the awards for most Canadian employees. The Company funds the Trust and directs the activities of the Trust. | ||||||||||
VIEs for which the Company is not the primary beneficiary: | ||||||||||
The Company also has investments in certain real estate ventures determined to be VIEs of which the Company is not the primary beneficiary. The most significant of these is TIMWEN Partnership, owned on a 50/50 basis by the Company and The Wendy’s Company (“Wendy’s”) to jointly develop the real estate underlying combination restaurants in Canada that offer Tim Hortons and Wendy’s products at one location. Control is considered to be shared since all significant decisions must be made jointly. These real estate ventures are accounted for using the equity method, based on the Company’s ownership percentages, and are included in Equity investments in the Consolidated Balance Sheet. | ||||||||||
Fair value measurements | ||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used by the Company to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The measurement of fair value is based on three levels of inputs, as follows: | ||||||||||
• | Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||
• | Level 2—Inputs, other than Level 1 inputs, that are observable for the assets or liabilities, either directly or indirectly. Level 2 inputs include: quoted market prices for similar assets or liabilities; quoted prices in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||
Derivative instruments | ||||||||||
The Company recognizes and measures all derivatives as either assets or liabilities at fair value in the Consolidated Balance Sheet. Derivatives that qualify as hedging instruments are generally cash flow hedges. | ||||||||||
The Company has a policy prohibiting speculative trading in derivatives. The Company may enter into derivatives that are not initially designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. | ||||||||||
The Company limits its counterparty risk associated with derivative instruments by utilizing a number of different financial institutions, and by generally entering into International Swaps and Derivatives Association agreements with those financial institutions. The Company continually monitors its positions, and the credit ratings of its counterparties, and adjusts positions if appropriate. The Company did not have significant exposure to any individual counterparty as at December 29, 2013 or December 30, 2012. | ||||||||||
Cash flow hedges | ||||||||||
The Company’s exposure to foreign exchange risk is mainly related to fluctuations between the Canadian dollar and the U.S. dollar. The Company is also exposed to changes in interest rates in the periods prior to the issuance of longer-term financing. The Company seeks to manage its cash flow and income exposures and may use derivative products to reduce the risk of a significant impact on its cash flows or income. The Company does not hedge foreign currency or interest rate risk in a manner that would entirely eliminate the effect of changes in foreign currency exchange rates or interest rates on net income and cash flows. | ||||||||||
For cash flow hedges, the effective portion of the gains or losses on derivatives is recognized in the cash flow hedges component of Accumulated other comprehensive loss in Total equity of Tim Hortons Inc. in the Consolidated Balance Sheet and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings. For interest rate forwards, gains or losses recognized in Accumulated other comprehensive income are amortized to interest expense over the life of the related debt, as the underlying interest expense is recognized in the Consolidated Statement of Operations. The ineffective portion of gains or losses on derivatives is reported in the Consolidated Statement of Operations. We classify the cash flows from hedging transactions in the same categories as the cash flows from the respective hedged items. The Company discontinues hedge accounting when: (i) it determines that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is probable that the forecasted transaction will not occur; or (iv) management determines that designation of the derivative as a hedge instrument is no longer appropriate. For discontinued or de-designated cash flow hedges, the related accumulated derivative gains or losses are recognized in earnings in the Consolidated Statement of Operations. | ||||||||||
Other derivatives | ||||||||||
The Company has a number of total return swaps (“TRS”) outstanding that are intended to reduce the variability of cash flows and, to a lesser extent, earnings associated with stock-based compensation awards that will settle in cash, namely, the SARs that are associated with stock options and DSUs. The TRS do not qualify as accounting hedges and, therefore, the fair value adjustment at the end of each reporting period is recognized in General and administrative expenses in the Consolidated Statement of Operations. Each TRS has a seven-year term, but each contract allows for partial settlements, at the option of the Company, over the term and without penalty. | ||||||||||
Accounting changes - new accounting standards | ||||||||||
In 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. |
Corporate_Reorganization_Expen
Corporate Reorganization Expenses | 12 Months Ended | |||||||||||||||
Dec. 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, which includes a Corporate Centre and Business Unit, at the end of the first quarter of fiscal 2013, and incurred the following expenses, as set forth in the table below: | ||||||||||||||||
Year-ended | ||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||
Termination costs | $ | 6,342 | $ | 9,016 | $ | — | ||||||||||
Professional fees and other | 2,349 | 7,602 | — | |||||||||||||
CEO transition costs | 3,070 | 2,256 | — | |||||||||||||
Total Corporate reorganization expenses | $ | 11,761 | $ | 18,874 | $ | — | ||||||||||
CEO transition costs include expenses related to an employment agreement with an executive officer and retention agreements with certain senior executives, which are being recognized over the estimated service period of these agreements. The Company has accrued $2.8 million as at December 29, 2013 (2012: $0.5 million) relating to the retention agreements. | ||||||||||||||||
Termination | Professional | CEO transition | Total | |||||||||||||
costs | fees and other | costs | ||||||||||||||
Costs 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 | ||||||||||||
Costs incurred during fiscal 2013 | 6,342 | 2,349 | 3,070 | 11,761 | ||||||||||||
Paid during fiscal 2013 | (12,932 | ) | (5,947 | ) | (466 | ) | (19,345 | ) | ||||||||
Accrued as at December 29, 2013(1) | $ | 968 | $ | 229 | $ | 4,449 | $ | 5,646 | ||||||||
_____________ | ||||||||||||||||
(1) | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million), which is expected to be substantially settled in the first half of fiscal 2014 (see note 12). |
Debranding_costs_Notes
De-branding costs (Notes) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
De-branding costs | ' | |||||||||||
DE-BRANDING COSTS | ||||||||||||
After evaluation of strategic considerations and the overall performance of the Cold Stone Creamery business in Tim Hortons locations, in the fourth quarter of 2013, we have decided to remove the Cold Stone Creamery brand from Tim Hortons restaurants in Canada. The de-branding costs recognized in the fourth quarter of fiscal 2013 as a result of this initiative, all of which were reflected in the Canadian segment, are set forth in the following table: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Payments to restaurant owners(1)(3) | $ | 7,373 | $ | — | $ | — | ||||||
Accelerated depreciation and amortization of long-lived assets(2) | 6,827 | — | — | |||||||||
Inventory write-downs | 2,400 | — | — | |||||||||
Other related costs(3) | 2,416 | — | — | |||||||||
Total De-branding costs | $ | 19,016 | $ | — | $ | — | ||||||
________________ | ||||||||||||
(1) | Includes payments to affected restaurant owners to de-brand and to restore their restaurants. | |||||||||||
(2) | The Company’s master license agreement with Kahala Franchise Corp. to use Cold Stone Creamery licenses in Canada remains in effect, although the remaining balance of $2.4 million was amortized in the fourth quarter of 2013 as the Company has no further plans to develop the Cold Stone Creamery brand in Tim Hortons locations in Canada. | |||||||||||
(3) | Primarily recorded in Accrued liabilities, Other (see note 12) on the Consolidated Balance Sheet. The Company expects to settle these obligations in the first half of fiscal 2014. |
Earnings_Per_Common_Share_Attr
Earnings Per Common Share Attributable to Tim Hortons Inc. (Notes) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Common Share Attributable to Tim Hortons Inc. | ' | |||||||||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO TIM HORTONS INC. | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Net income attributable to Tim Hortons Inc. | $ | 424,369 | $ | 402,885 | $ | 382,812 | ||||||
Weighted average number of shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,155 | 155,160 | 162,145 | |||||||||
Dilutive impact of restricted stock units (in thousands) | 212 | 217 | 197 | |||||||||
Dilutive impact of stock options with tandem SARs (in thousands) | 255 | 299 | 255 | |||||||||
Weighted average number of shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,622 | 155,676 | 162,597 | |||||||||
Basic earnings per common share attributable to Tim Hortons Inc. | $ | 2.83 | $ | 2.6 | $ | 2.36 | ||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 2.82 | $ | 2.59 | $ | 2.35 | ||||||
Accounts_Receivable_Net
Accounts Receivable, Net | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable, Net | ' | |||||||
ACCOUNTS RECEIVABLE, NET | ||||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Accounts receivable | $ | 128,530 | $ | 112,522 | ||||
Franchise sales receivable | 27,197 | 2,386 | ||||||
Other receivables(1) | 56,602 | 57,942 | ||||||
212,329 | 172,850 | |||||||
Allowance | (1,665 | ) | (1,245 | ) | ||||
Accounts receivable, net | $ | 210,664 | $ | 171,605 | ||||
________________ | ||||||||
(1) | Includes accrued rent, Tim Card receivable, accrued income tax and other accruals. |
Notes_Receivable_Net
Notes Receivable, Net | 12 Months Ended | |||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Notes Receivable, Net | ' | |||||||||||||||||||||||
NOTES RECEIVABLE, NET | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Gross | VIEs(1) | Total | Gross | VIEs(1) | Total | |||||||||||||||||||
FIPs | $ | 16,677 | $ | (13,668 | ) | $ | 3,009 | $ | 20,235 | $ | (13,499 | ) | $ | 6,736 | ||||||||||
Other notes receivable(2) | 8,256 | (649 | ) | 7,607 | 4,773 | (942 | ) | 3,831 | ||||||||||||||||
Notes receivable | $ | 24,933 | $ | (14,317 | ) | 10,616 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance(3) | (1,502 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 9,114 | $ | 8,777 | ||||||||||||||||||||
Current portion, net | $ | 4,631 | $ | 7,531 | ||||||||||||||||||||
Long-term portion, net | $ | 4,483 | $ | 1,246 | ||||||||||||||||||||
As at | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Class and Aging | Gross | VIEs(1) | Total | Gross | VIEs(1) | Total | ||||||||||||||||||
Current status (FIP notes and other) | $ | 9,688 | $ | (2,081 | ) | $ | 7,607 | $ | 6,969 | $ | (1,269 | ) | $ | 5,700 | ||||||||||
Past-due status < 90 days (FIP notes) | 328 | — | 328 | 407 | (407 | ) | — | |||||||||||||||||
Past-due status > 90 days (FIP notes) | 14,917 | (12,236 | ) | 2,681 | 17,632 | (12,765 | ) | 4,867 | ||||||||||||||||
Notes receivable | $ | 24,933 | $ | (14,317 | ) | 10,616 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance(3) | (1,502 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 9,114 | $ | 8,777 | ||||||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Consolidated Balance Sheet (see note 20). | |||||||||||||||||||||||
(2) | Relates primarily to notes issued to vendors in conjunction with the financing of a property sale, and on various equipment and other financing programs. | |||||||||||||||||||||||
(3) | The Company has recognized an allowance to reflect the current value, based primarily on the estimated depreciated replacement cost of the underlying equipment held as collateral. Substantially all of the allowance relates to past-due FIP Notes. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
INCOME TAXES | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Current | ||||||||||||
Canadian(1) | $ | 159,369 | $ | 148,168 | $ | 157,685 | ||||||
Foreign(2) | 2,453 | 3,323 | 5,240 | |||||||||
161,822 | 151,491 | 162,925 | ||||||||||
Deferred | ||||||||||||
Canadian(1) | (5,848 | ) | 2,836 | (2,506 | ) | |||||||
Foreign(2) | 1,006 | 2,019 | (2,565 | ) | ||||||||
(4,842 | ) | 4,855 | (5,071 | ) | ||||||||
Income tax expense | $ | 156,980 | $ | 156,346 | $ | 157,854 | ||||||
________________ | ||||||||||||
(1) | Income before income taxes representing Canadian earnings in fiscal 2013 was $578.3 million (2012: $554.9 million; 2011: $536.1 million). | |||||||||||
(2) | Represents taxes related to U.S. and international operations. | |||||||||||
A reconciliation of statutory Canadian and provincial income tax rates is shown below: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Income before income taxes | $ | 585,629 | $ | 564,112 | $ | 543,602 | ||||||
Statutory rate | 26.5 | % | 26.5 | % | 28.3 | % | ||||||
Income taxes at statutory rate | 155,348 | 149,551 | 153,567 | |||||||||
Taxation difference on foreign earnings | 5,011 | 4,310 | (1,846 | ) | ||||||||
Provincial, state and local tax rate differentials | 630 | 634 | 152 | |||||||||
Change in reserves for uncertain tax positions | (8,412 | ) | (1,620 | ) | 3,271 | |||||||
Change in valuation allowance | 3,022 | 6,431 | 2,226 | |||||||||
Other | 1,381 | (2,960 | ) | 484 | ||||||||
Income taxes at effective rate | $ | 156,980 | $ | 156,346 | $ | 157,854 | ||||||
Effective tax rate | 26.8 | % | 27.7 | % | 29 | % | ||||||
The tax-effected temporary differences which gave rise to deferred tax assets and liabilities consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Deferred tax assets | ||||||||||||
U.S. foreign tax credit carryforwards | $ | 18,649 | $ | 23,209 | ||||||||
Lease transactions | 64,796 | 56,645 | ||||||||||
Property and equipment basis differences | 11,757 | 11,008 | ||||||||||
Intangible assets basis differences | 1,479 | 1,643 | ||||||||||
Stock-based compensation plans | 6,062 | 5,776 | ||||||||||
Reserves and expenses not currently deductible | 8,631 | 4,065 | ||||||||||
Deferred income | 16,659 | 13,205 | ||||||||||
Loss carryforwards | 10,960 | 5,037 | ||||||||||
All other | 539 | 696 | ||||||||||
139,532 | 121,284 | |||||||||||
Valuation allowance | (46,760 | ) | (39,190 | ) | ||||||||
$ | 92,772 | $ | 82,094 | |||||||||
Deferred tax liabilities | ||||||||||||
Lease transactions | $ | 43,409 | $ | 38,244 | ||||||||
Property and equipment basis differences | 26,581 | 30,711 | ||||||||||
Unremitted earnings – foreign operations(1) | 3,621 | 2,314 | ||||||||||
Stock-based compensation plans | 6,486 | 2,975 | ||||||||||
All other | 1,421 | 745 | ||||||||||
$ | 81,518 | $ | 74,989 | |||||||||
Net deferred tax assets | $ | 11,254 | $ | 7,105 | ||||||||
Reported in Consolidated Balance Sheet as: | ||||||||||||
Deferred income taxes – current asset | $ | 10,165 | $ | 7,142 | ||||||||
Deferred income taxes – long-term asset | 11,018 | 10,559 | ||||||||||
Deferred income taxes – current liability | — | (197 | ) | |||||||||
Deferred income taxes – long-term liability | (9,929 | ) | (10,399 | ) | ||||||||
$ | 11,254 | $ | 7,105 | |||||||||
________________ | ||||||||||||
(1) | The Company has provided for deferred taxes as at December 29, 2013 on approximately $120.7 million (2012: $88.2 million) of undistributed earnings that are not indefinitely reinvested. | |||||||||||
The Company continues to provide a full valuation allowance on net federal deferred tax assets in the U.S, as well as certain state net operating loss carryforwards. In addition, the Company has provided for a full valuation allowance on losses resulting from public company costs, including costs of its new long-term debt. The Company periodically assesses the realization of its net deferred tax assets based on current and historical operating results, as well as expectations of future operating results. A valuation allowance is recorded if the Company believes its net deferred tax assets will not be realized in the foreseeable future. The Company has weighed both positive and negative evidence in determining whether to continue to maintain or provide a valuation allowance on its deferred tax assets. The Company’s determination to maintain or provide a valuation allowance is based on what it believes may be the more likely than not result. The Company will continue to assess the realization of the deferred tax assets and may consider the release of all or a portion of the valuation allowance in the future based on the weight of evidence at that time. | ||||||||||||
Deferred taxes are not provided for temporary differences that represent the excess of the carrying amount for financial reporting purposes over the tax basis of investments in foreign subsidiaries, where the differences are considered indefinitely reinvested. These temporary differences may become taxable upon actual or deemed repatriation of earnings from the subsidiaries, or as a result of a sale or liquidation of subsidiaries which is not typical or planned. Determination of the deferred income taxes for these temporary differences is not practicable as the liability, if any, depends on circumstances existing if and when realization occurs. The amount of these temporary differences represented by undistributed earnings considered indefinitely reinvested in the foreign subsidiaries was approximately $213.0 million as at December 29, 2013 (2012: $213.0 million). The Company did not have significant cash on hand as at December 29, 2013 in the foreign subsidiaries to distribute these earnings. | ||||||||||||
The Company has Canadian pre-tax non-capital loss carryforwards of $33.4 million, which will expire between fiscal 2029 and fiscal 2033 for federal and provincial purposes. The tax benefit on $18.6 million of these Canadian losses is offset by a valuation allowance. U.S. state loss carryforwards of approximately $92.5 million, the tax benefit of which is primarily offset by a valuation allowance, will expire between fiscal 2014 and fiscal 2033. | ||||||||||||
The Company’s U.S. foreign tax credits of $18.6 million will expire between fiscal 2020 and fiscal 2023. | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (excluding related interest and penalties), is as follows: | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Balance at beginning of year | $ | 25,041 | $ | 29,755 | ||||||||
Additions based on tax positions related to the current year | 510 | 1,034 | ||||||||||
Additions for tax positions of prior years | 3,983 | 1,978 | ||||||||||
Reductions for tax positions of prior years | (1,280 | ) | (3,533 | ) | ||||||||
Reductions related to settlements with taxing authorities | (821 | ) | (895 | ) | ||||||||
Reductions as a result of a lapse of applicable statute of limitations | (10,114 | ) | (3,298 | ) | ||||||||
Balance at end of year | $ | 17,319 | $ | 25,041 | ||||||||
Reported in the Consolidated Balance Sheet as: | ||||||||||||
Accrued liabilities, Taxes | $ | — | $ | 3,835 | ||||||||
Other long-term liabilities (note 12) | 17,319 | 21,206 | ||||||||||
$ | 17,319 | $ | 25,041 | |||||||||
As at December 29, 2013, there are no uncertain tax positions for which ultimate deductibility or recoverability is highly certain but for which there is uncertainty about the timing of such deductibility or recoverability (2012: $0.8 million). The $17.3 million unrecognized tax benefits as at December 29, 2013 (2012: $24.2 million) would impact the effective tax rate, over time, if recognized. | ||||||||||||
The Company accrues interest and potential penalties related to unrecognized tax benefits in income tax expense. As of December 29, 2013, the Company had accrued, cumulatively, approximately $7.6 million (2012: $8.8 million) for the potential payment of interest and penalties. During 2013, the Company recognized a recovery in its tax expense of approximately $1.2 million related to interest and penalties (2012: expense of $0.5 million; 2011: expense of $1.2 million). | ||||||||||||
The Canada Revenue Agency (“CRA”) issued notices of reassessment for the 2005 through 2009 taxation years for transfer pricing adjustments related to the Company’s former investment in the Maidstone Bakeries joint venture. The proposed adjustments, including tax, penalty and interest, total approximately $60.0 million. The Company filed a Notice of Objection with the CRA in October 2013. The Company will 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 during fiscal 2013. | ||||||||||||
The cash deposit did not have a material adverse impact on our liquidity. Although the outcome of this matter cannot be predicted with certainty, the Company intends to contest this matter vigorously, and it 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 appeals and, if necessary, the litigation process. 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. | ||||||||||||
A Notice of Appeal to the Tax Court of Canada was filed in July 2012 in respect of a dispute with the CRA related to the deductibility of approximately $10.0 million of interest expense for the 2002 taxation year. The court date is set for the second half of 2014. The Company believes that it will ultimately prevail in sustaining the tax benefit of the interest deduction and, as such, has not made a provision for this matter. | ||||||||||||
For Canadian federal tax purposes, except as noted above, the 2007 and subsequent taxation years remain open to examination and potential adjustment by the CRA. The CRA is conducting examinations of the 2008 through 2011 taxation years. For U.S. federal income tax purposes, the Company remains open to examination commencing with the 2010 taxation year. Income tax returns filed with various provincial and state jurisdictions are generally open to examination for periods of three to five years subsequent to the filing of the respective return. Except as described above, the Company does not currently expect any material impact on earnings to result from the resolution of matters related to open taxation years; however, it is possible that actual settlements may differ from amounts accrued. | ||||||||||||
It is reasonably possible that the total amount of unrecognized tax benefits will increase over the next 12 months by up to $4.1 million, plus interest and penalties, as a result of possible tax authority audit and appeal settlements primarily relating to the deductibility of interest and other business expenses. In addition, it is also reasonably possible that unrecognized tax benefits, primarily related to certain business expenses, will decrease over the next 12 months by up to $3.7 million plus interest and penalties, as a result of possible tax authority audit settlements and expiry of statute of limitations. There could be fluctuations in the amount of unrecognized tax benefits over the next 12 months as a result of the timing of the settlement of these tax audits and appeals and, currently, the Company cannot definitively determine the timing or the amount of individual settlements. The Company has made its estimates based on current facts and circumstances and cannot predict with sufficient certainty subsequent or changed facts and circumstances that may affect its estimates. |
Inventories_and_Other_Net
Inventories and Other, Net | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories and Other, Net | ' | |||||||
INVENTORIES AND OTHER, NET | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Raw materials | $ | 22,789 | $ | 19,941 | ||||
Finished goods | 69,348 | 75,660 | ||||||
92,137 | 95,601 | |||||||
Inventory obsolescence provision | (1,754 | ) | (1,015 | ) | ||||
Inventories, net | 90,383 | 94,586 | ||||||
Prepaids and other | 13,943 | 12,414 | ||||||
Total Inventories and other, net | $ | 104,326 | $ | 107,000 | ||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ||||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Land | $ | 259,386 | $ | 248,097 | ||||
Buildings and leasehold improvements | 1,638,755 | 1,481,454 | ||||||
Restaurant and other equipment | 208,986 | 188,216 | ||||||
Capital leases(1) | 233,090 | 205,543 | ||||||
Computer hardware and software(2) | 124,114 | 117,266 | ||||||
Advertising fund property and equipment(3) | 138,858 | 116,044 | ||||||
Manufacturing and other equipment | 97,083 | 112,991 | ||||||
Construction in progress | 35,827 | 18,957 | ||||||
Property and equipment, net of impairment | 2,736,099 | 2,488,568 | ||||||
Accumulated depreciation and amortization | (1,051,056 | ) | (935,260 | ) | ||||
Total Property and equipment, net | $ | 1,685,043 | $ | 1,553,308 | ||||
________________ | ||||||||
-1 | Capital leases relate primarily to leased buildings. The Company added $34.5 million of capital leased assets in fiscal 2013 (2012: $26.1 million). | |||||||
(2) | Includes internally and externally developed software of $75.5 million, at cost, as at December 29, 2013 (2012: $71.9 million) with a net book value of $24.9 million as at December 29, 2013 (2012: $26.8 million). | |||||||
(3) | Consists primarily of menu board equipment. |
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Assets | ' | |||||||
OTHER ASSETS | ||||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Bearer deposit notes(1) | $ | 41,403 | $ | 41,403 | ||||
Tax deposits(2) | 36,532 | — | ||||||
TRS contracts(1) | 21,393 | 7,504 | ||||||
Rent leveling | 5,419 | 5,240 | ||||||
Intangible assets(3) | 494 | 3,674 | ||||||
Other long-term assets | 12,311 | 10,649 | ||||||
Total Other assets | $ | 117,552 | $ | 68,470 | ||||
________________ | ||||||||
-1 | The Company holds these deposit notes as collateral to reduce the carrying cost of the TRS. As a portion of the TRS is unwound, a proportionate share of these notes is also unwound (see note 15). See note 14 for the fair values of these assets. | |||||||
(2) | The Company has made deposits with the CRA and other taxation authorities relating to transfer pricing adjustments related to the Company’s former investment in the Maidstone Bakeries joint venture (see note 7). | |||||||
(3) | Intangible assets consist of certain non-exclusive rights with Kahala Franchising, L.L.C. to use Cold Stone Creamery licenses in the U.S., which are being amortized over their related term. The Company has a master license agreement with Kahala Franchise Corp. to use Cold Stone Creamery licenses in Canada, the remaining balance of which was amortized in December 2013 (see note 3). Previously, the Company had an intangible asset for the use of the name and likeness of Ronald V. Joyce, a former owner of the Company, which was fully amortized in fiscal 2013. Total intangible amortization, which includes the amortization of the master license agreement, was $3.3 million in fiscal 2013 (2012: $1.0 million; 2011: $1.0 million). |
Equity_Investments
Equity Investments | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity Investments | ' | |||||||||||
EQUITY INVESTMENTS | ||||||||||||
Combined summarized financial information for the Company’s investments accounted for using the equity method is shown below. These amounts are, in aggregate, at 100% levels. The net income amounts shown below generally exclude income tax expense as the majority of these investments pertain to a partnership or joint venture, in which case ownership percentage of earnings is attributed to the partner or joint venturer and the associated income tax is included in Income taxes in the Consolidated Statement of Operations. | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | January 1, 2012 | ||||||||||
Income Statement Information | ||||||||||||
Revenues | $ | 42,997 | $ | 42,863 | $ | 42,105 | ||||||
Expenses attributable to revenues | $ | (12,074 | ) | $ | (12,902 | ) | $ | (12,712 | ) | |||
Net income | $ | 30,341 | $ | 29,382 | $ | 29,067 | ||||||
Equity income—THI | $ | 15,170 | $ | 14,693 | $ | 14,354 | ||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Balance Sheet Information | ||||||||||||
Current assets | $ | 7,832 | $ | 8,408 | ||||||||
Non-current assets | $ | 82,274 | $ | 86,352 | ||||||||
Current liabilities | $ | 1,432 | $ | 4,010 | ||||||||
Non-current liabilities | $ | 8,206 | $ | 9,138 | ||||||||
Partners’ equity | $ | 80,468 | $ | 81,612 | ||||||||
Equity investment by THI | $ | 40,738 | $ | 41,268 | ||||||||
The Company’s most significant equity investment is its 50% joint-venture interest with Wendy’s, which jointly holds real estate underlying Canadian combination restaurants (see note 20). In fiscal 2013, the Company received distributions of $14.8 million (2012: $15.3 million; 2011: $15.0 million) from this joint venture. |
Accounts_Payable_Accrued_Liabi
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities | ' | |||||||
ACCOUNTS PAYABLE, ACCRUED LIABILITIES, AND OTHER LONG–TERM LIABILITIES | ||||||||
Accounts payable | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Accounts payable | $ | 142,131 | $ | 126,312 | ||||
Construction holdbacks and accruals | 57,527 | 31,008 | ||||||
Corporate reorganization accrual (note 2) | 4,856 | 12,442 | ||||||
Total Accounts payable | $ | 204,514 | $ | 169,762 | ||||
Accrued liabilities | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Tim Card obligations | $ | 184,443 | $ | 159,745 | ||||
Salaries and wages | 22,553 | 21,477 | ||||||
Taxes | 14,542 | 8,391 | ||||||
De-branding accruals(1) | 9,538 | — | ||||||
Other accrued liabilities(2) | 42,932 | 38,126 | ||||||
Total Accrued liabilities | $ | 274,008 | $ | 227,739 | ||||
________________ | ||||||||
(1) | Includes accruals related to Cold Stone Creamery de-branding activity in Tim Hortons locations in Canada (see note 3). | |||||||
(2) | Includes accruals for contingent rent, current portion of the Maidstone Bakeries supply contract, deferred revenues, deposits, and various equipment and other accruals. | |||||||
Other long-term liabilities | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Accrued rent leveling liability | $ | 32,070 | $ | 29,244 | ||||
Stock-based compensation liabilities (note 19) | 25,532 | 17,479 | ||||||
Uncertain tax position liability (note 7) | 24,926 | 28,610 | ||||||
Maidstone Bakeries supply contract deferred liability | 7,799 | 15,352 | ||||||
Other accrued long-term liabilities(1) | 21,763 | 18,929 | ||||||
Total Other long-term liabilities | $ | 112,090 | $ | 109,614 | ||||
________________ | ||||||||
(1) | Includes deferred revenues and various other accruals. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Senior Unsecured Notes, Series 1, due June 1, 2017 | $ | 301,196 | $ | 301,544 | ||||
Senior Unsecured Notes, Series 2, due December 1, 2023 | 449,892 | — | ||||||
Advertising fund debt | 30,189 | 56,500 | ||||||
Other debt | 69,794 | 60,223 | ||||||
$ | 851,071 | $ | 418,267 | |||||
Less: current portion(1) | (8,051 | ) | (11,947 | ) | ||||
Total Long-term debt | $ | 843,020 | $ | 406,320 | ||||
________________ | ||||||||
(1) | Excludes current portion due under capital leases of $9.7 million as at December 29, 2013 (2012: $8.8 million). | |||||||
The Company’s weighted average effective interest rate on total debt (excluding consolidated Non-owned restaurants) as at December 29, 2013 is 5.4% (2012: 5.8%). See note 14 for the fair value of the Company’s total debt. | ||||||||
Future maturities for the Company’s long-term debt, as at December 29, 2013 are shown below: | ||||||||
Long-term debt | ||||||||
2014 | $ | 8,051 | ||||||
2015 | 8,500 | |||||||
2016 | 8,518 | |||||||
2017 | 308,696 | |||||||
2018 | 8,905 | |||||||
Subsequent years | 507,313 | |||||||
Total principal repayments | 849,983 | |||||||
Senior Unsecured Notes - Premium (Discount), net | 1,088 | |||||||
Total | $ | 851,071 | ||||||
Current portion | $ | 8,051 | ||||||
Long-term portion | $ | 843,020 | ||||||
Senior Unsecured Notes, Series 1, due June 1, 2017 | ||||||||
In fiscal 2010, the Company issued $300.0 million of Senior Unsecured Notes, Series 1, due June 1, 2017 (“Series 1 Notes”) in two tranches for net proceeds of $302.3 million, which included a premium of $2.3 million. The Company also entered into interest rate forwards, with a notional value of $195.0 million, which acted as a cash flow hedge to limit the interest rate volatility in the period prior to the initial issuance of the Series 1 Notes, and resulted in a loss of $4.9 million on settlement. The premium, the loss on the interest rate forwards, and financing fees of approximately $1.8 million were deferred and are being amortized to Interest expense in the Consolidated Statement of Operations over the term of the Series 1 Notes. The effective yield, including all fees, premium and the interest rate forwards loss, is 4.45%. | ||||||||
The Series 1 Notes bear a fixed interest rate of 4.20% with interest payable in semi-annual installments, in arrears, which commenced December 1, 2010. The Series 1 Notes rank equally and pari passu with each other and with the notes of every other series (regardless of their actual time of issue), including the Series 2 Notes, issued under the Trust Indenture, and, with all other senior unsecured and unsubordinated indebtedness of Tim Hortons Inc. (the “Borrower”), including amounts owing under the 2010 Revolving Bank Facility and the 2013 Revolving Bank Facility (see below), except as to any sinking fund which pertains exclusively to any particular indebtedness of the Borrower, and statutorily preferred exceptions. | ||||||||
The Series 1 Notes are initially guaranteed by The TDL Group Corp. (“TDL”), the Borrower’s largest Canadian subsidiary. For so long as the Borrower’s and TDL’s third-party revenues represent at least 75% of the consolidated revenues of the Company, as tested quarterly on a rolling 12-month basis, TDL will remain the sole subsidiary guarantor. To the extent that combined third-party revenues of these two entities is less than 75% of consolidated revenues, additional guarantors must be added until 75% of consolidated revenues are reached or exceeded. In each case, the Borrower’s subsidiary with the highest gross revenue must be one of the guarantors. Alternatively, if the Borrower’s third-party revenues reach or exceed 75% of consolidated revenues, the guarantors will be released. There are certain covenants limiting liens to secure borrowed money (subject to permitted exceptions), and limiting the Company’s ability to undertake certain acquisitions and dispositions (subject to compliance with certain requirements), but there are no financial covenants. | ||||||||
The Series 1 Notes are redeemable, at the Borrower’s option, at any time, upon not less than 30 days’ notice, but no more than 60 days’ notice, at a redemption price equal to the greater of: (i) a price calculated to provide a yield to maturity (from the redemption date) equal to the yield on a non-callable Government of Canada bond with a maturity equal to, or as close as possible to, the remaining term to maturity of the Senior Notes, plus 0.30%; and (ii) par, together, in each case, with accrued and unpaid interest, if any, to the date fixed for redemption. In the event of a change of control and a resulting rating downgrade to below investment grade, the Borrower will be required to make an offer to repurchase the Series 1 Notes at a redemption price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption. | ||||||||
Senior Unsecured Notes, Series 2, due December 1, 2023 | ||||||||
The Company offered the Senior Unsecured Notes, Series 2, due December 1, 2023 (“Series 2 Notes”) on a private placement basis in the fourth quarter of 2013 for total net proceeds of $449.9 million, which included a discount of $0.1 million. The Company also entered into interest rate forwards, with a notional value of $498.0 million, which acted as a cash flow hedge to limit the interest rate volatility in the period prior to the initial issuance of the Series 2 Notes, which resulted in a loss of $9.8 million on settlement. The discount, the loss on the interest rate forwards, and financing fees of approximately $2.4 million were deferred and are being amortized to Interest expense in the Consolidated Statement of Operations over 10 years. The effective yield, including all fees and the interest rate forwards loss, is 4.87%. | ||||||||
The Series 2 Notes bear a fixed interest coupon rate of 4.52% with interest payable in semi-annual installments, in arrears, which will commence on June 1, 2014. The Series 2 Notes rank equally and pari passu with each other and with the notes of every other series (regardless of their actual time of issue), including the Series 1 Notes, issued under the Trust Indenture, and with all other senior unsecured and unsubordinated indebtedness of the Borrower, including amounts owing under the 2010 Revolving Bank Facility and the 2013 Revolving Bank Facility (see below), except as to any sinking fund which pertains exclusively to any particular indebtedness of the Borrower, and statutorily preferred exceptions. | ||||||||
The Series 2 Notes are initially guaranteed by TDL, on the same terms and conditions as prescribed for the Series 1 Notes (see Senior Unsecured Notes, Series 1, due June 1, 2017 above). Similar to the Series 1 Notes, the Series 2 Notes are also subject to certain covenants limiting liens to secure borrowed money (subject to permitted exceptions) and limiting our ability to undertake certain acquisitions and dispositions (subject to compliance with certain requirements), but there are no financial covenants. | ||||||||
The Series 2 Notes are redeemable, at the Borrower’s option, at any time, upon not less than 30 days’ and not more than 60 days’ notice, at a redemption price equal to the greater of: (i) a price calculated to provide a yield to maturity (from the redemption date) equal to the yield on a non-callable Government of Canada bond with a maturity equal to, or as close as possible to, the remaining term to maturity of the Series 2 Notes, plus 0.49%; and (ii) par, together, in each case, with accrued and unpaid interest, if any, to the date fixed for redemption. Notwithstanding the foregoing, on or after September 1, 2023, the Company may, at its option, redeem the Series 2 Notes in whole but not in part, upon not less than 30 days’ and not more than 60 days’ notice, at par, together with accrued and unpaid interest, if any, to the date fixed for redemption. In the event of a change of control (which, for the Series 2 Notes, includes a change in the majority of the Board of Directors) and a resulting rating downgrade to below investment grade, the Borrower will be required to make an offer to repurchase the Series 2 Notes at a redemption price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption. | ||||||||
Revolving bank facilities | ||||||||
In December 2010, and subsequently amended in January 2012, we entered into a 5-year unsecured senior revolving facility credit agreement (the “2010 Revolving Bank Facility”), which will mature on January 26, 2017. The 2010 Revolving Bank Facility has a similar guarantee structure as the Series 1 and Series 2 Notes and may be drawn by the Borrower or TDL and, as such, has a Tim Hortons Inc. guarantee that cannot be released. The 2010 Revolving Bank Facility consists of $250.0 million (which includes $25.0 million overdraft availability and a $25.0 million letter of credit facility). The 2010 Revolving Bank Facility is undrawn, except for approximately $5.2 million as at December 29, 2013 (2012: $5.6 million) to support standby letters of credit, and is available for general corporate purposes. The 2010 Revolving Bank Facility bears commitment fees according to our credit rating; our current annual facility fee payable is 0.30% (2012: 0.20%). | ||||||||
In October 2013, we entered into a 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 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 bears commitment fees according to our credit rating; our current annual facility fee payable is 0.29%. As at December 29, 2013, the Company had drawn $30.0 million on the 2013 Revolving Bank Facility (2012: nil) bearing an interest rate of 2.68%. | ||||||||
Each of the 2010 and 2013 Revolving Bank Facilities (collectively, “the Revolving Bank Facilities”) provide variable rate funding options including bankers’ acceptances, LIBOR, or prime rate plus an applicable margin. If certain market conditions caused LIBOR to be unascertainable or not reflective of the cost of funding, the administration agent under each of the Revolving Bank Facilities can cause the borrowing to be the base rate which has a floor of one month LIBOR plus 1.0%. These facilities do not carry market disruption clauses. The Revolving Bank Facilities contain certain covenants that limit the Company’s ability to, among other things: incur additional indebtedness; create liens; merge with other entities; sell assets; make restricted payments; make certain investments, loans, advances, guarantees or acquisitions; change the nature of its business; enter into transactions with affiliates; enter into certain restrictive agreements; or pay dividends or make share repurchases if the Company is not in compliance with the financial covenants, or if such transactions would cause the Company to not be in compliance with the financial covenants. The Revolving Bank Facilities require the maintenance of two financial ratios, which we were in compliance with as at December 29, 2013: | ||||||||
•Consolidated maximum total debt coverage ratio. This ratio is computed as consolidated total debt divided by net income (excluding net income of VIEs) before interest expense, taxes, depreciation and amortization, and net of discrete non-cash losses and gains or extraordinary losses and gains incurred outside the ordinary course of business (the denominator). Consolidated total debt (the numerator) primarily includes (without duplication) all liabilities for borrowed money, capital lease obligations, letters of credit (whether or not related to borrowed money), the net marked-to-market under swap agreements and guarantee liabilities (excluding those scheduled in the applicable Revolving Bank Facility). | ||||||||
•Minimum fixed charge coverage ratio. This ratio is computed as net income (excluding net income of VIEs) before interest expense, taxes, depreciation and amortization, rent expense, and net of discrete non-cash losses and gains or extraordinary losses and gains incurred outside the ordinary course of business, collectively as the numerator, divided by consolidated fixed charges. Consolidated fixed charges includes interest and rent expense. | ||||||||
Events of default under the Revolving Bank Facilities include: a default in the payment of the obligations under the applicable Revolving Bank Facility or a change in control of Tim Hortons Inc. Additionally, events of default for the Borrower, TDL or any future Guarantor include: a breach of any representation, warranty or covenant under the applicable Revolving Bank Facility; certain events of bankruptcy, insolvency or liquidation; and, any payment default or acceleration of indebtedness if the total amount of indebtedness unpaid or accelerated exceeds $25.0 million. | ||||||||
Advertising fund debt | ||||||||
The Ad Fund had a revolving credit facility bearing interest at a Banker’s Acceptance Fee plus applicable margin related to the Expanded Menu Board Program. This Credit Facility was canceled in fiscal 2013 because the Ad Fund entered into an agreement with a Company subsidiary for a revolving credit facility funded by the Restricted cash and cash equivalents related to our Tim Card Program (“Tim Card Revolving Credit Facility”) (see note 20). The Tim Card Revolving Credit Facility is non-interest bearing, as all interest earned on the Restricted cash and cash equivalents is contributed back to the Ad Fund per internal agreement, and there are no financial covenants associated with the Tim Card Revolving Credit Facility. | ||||||||
The Ad Fund has a 7-year term loan (“Term Loan”) with a Canadian financial institution, a portion of which was prepaid in fiscal 2013 because the Ad Fund entered into an agreement with a Company subsidiary for a term loan for the same amount, which is also funded by the Restricted cash and cash equivalents related to our Tim Card program (“Tim Card Loan”). The Tim Card Loan has similar repayment terms as the Term Loan, but is non-interest bearing as all interest earned on the Restricted cash and cash equivalents is contributed back to the Ad Fund per internal agreement (see note 20). | ||||||||
The Term Loan is secured by the Ad Fund’s assets and are not guaranteed by Tim Hortons Inc. or any of its subsidiaries. There are no financial covenants associated with the Term Loan or the Tim Card Loan. Events of default under the Term Loan include: a default in the payment of the obligations under the Term Loan; certain events of bankruptcy, insolvency or liquidation; and any material adverse effect in the financial or environmental conditions of the Ad Fund. | ||||||||
The Term Loan matures in November 2019 and will be repaid in equal quarterly installments. It bears interest at a Banker’s Acceptance Fee plus an applicable margin, with interest payable quarterly in arrears, commencing January 2013. Prepayment of the loan is permitted without penalty at any time in whole or in part. | ||||||||
Of the Term Loan outstanding as at December 29, 2013, $5.0 million is recorded in Current portion of long-term obligations (2012: $9.7 million) and $25.2 million is recorded in Long-term debt (2012: $46.8 million) in the Consolidated Balance Sheet. | ||||||||
Other debt | ||||||||
Included in other debt as at December 29, 2013 is debt of $60.3 million (2012: $54.7 million) recognized in accordance with applicable lease accounting rules. The Company is considered to be the owner of certain restaurants leased by the Company from an unrelated lessor because the Company constructed some of the structural elements of those restaurants, and records the lessor’s contributions to the construction costs for these restaurants as other debt. The average imputed interest rate for the debt recorded is approximately 15.5% (2012: 15.7%). In addition, the Company had other debt from the consolidation of Non-owned restaurants of $9.5 million as at December 29, 2013 (2012: $5.5 million). |
Fair_Values
Fair Values | 12 Months Ended | |||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Values | ' | |||||||||||||||||||
FAIR VALUES | ||||||||||||||||||||
Financial assets and liabilities measured at fair value | ||||||||||||||||||||
As at | ||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | |||||||||||||||||
hierarchy | asset (liability)(1) | hierarchy | asset (liability)(1) | |||||||||||||||||
Derivatives | ||||||||||||||||||||
Forward currency contracts(2) | Level 2 | $ | 4,181 | Level 2 | $ | (2,014 | ) | |||||||||||||
Interest rate swap(3) | Level 2 | (49 | ) | n/a | — | |||||||||||||||
Interest rate forwards(4) | Level 2 | 285 | n/a | — | ||||||||||||||||
Total return swaps (“TRS”)(5) | Level 2 | 21,393 | Level 2 | 7,504 | ||||||||||||||||
Total Derivatives | $ | 25,810 | $ | 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 of interest rate swaps is estimated using discounted cash flows and market-based observable inputs, including interest rate yield curves and discount rates. | |||||||||||||||||||
(4) | The fair value of interest rate forwards is determined 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 TSX. | |||||||||||||||||||
Other financial assets and liabilities not measured at fair value | ||||||||||||||||||||
As at December 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 Consolidated Balance Sheet: | ||||||||||||||||||||
As at | ||||||||||||||||||||
December 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 | $ | 9,114 | $ | 9,114 | Level 3 | $ | 8,777 | $ | 8,777 | ||||||||||
Series 1 Notes(3) | Level 2 | $ | (315,519 | ) | $ | (301,196 | ) | Level 2 | $ | (325,857 | ) | $ | (301,544 | ) | ||||||
Series 2 Notes(3) | Level 2 | $ | (445,419 | ) | $ | (449,892 | ) | n/a | $ | — | $ | — | ||||||||
Advertising fund term debt(4) | Level 3 | $ | (30,189 | ) | $ | (30,189 | ) | Level 3 | $ | (56,500 | ) | $ | (56,500 | ) | ||||||
Other debt(5) | Level 3 | $ | (126,548 | ) | $ | (69,794 | ) | 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, net, 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 | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Derivatives | ' | |||||||||||||||||||||||||||
DERIVATIVES | ||||||||||||||||||||||||||||
As at | ||||||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||||||
Asset | Liability | Net | Classification on | Asset | Liability | Net | Classification on | |||||||||||||||||||||
asset | Consolidated | asset | Consolidated | |||||||||||||||||||||||||
(liability) | Balance Sheet | (liability) | Balance Sheet | |||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | ||||||||||||||||||||||||||||
Forward currency contracts(1) | $ | 4,181 | $ | — | $ | 4,181 | Accounts receivable, net | $ | 494 | $ | (2,315 | ) | $ | (1,821 | ) | Accounts payable, net | ||||||||||||
Interest rate swap(2) | $ | — | $ | (49 | ) | $ | (49 | ) | Other long term liabilities | $ | — | $ | — | $ | — | n/a | ||||||||||||
Interest rate forwards(3) | $ | 285 | $ | — | $ | 285 | Accounts receivable, net | $ | — | $ | — | $ | — | n/a | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||
TRS(4) | $ | 21,393 | $ | — | $ | 21,393 | Other assets | $ | 8,614 | $ | (1,110 | ) | $ | 7,504 | Other assets | |||||||||||||
Forward currency contracts(1) | $ | — | $ | — | $ | — | n/a | $ | 5 | $ | (198 | ) | $ | (193 | ) | Accounts payable, net | ||||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Notional value as at December 29, 2013 of $154.0 million (December 30, 2012: $195.1 million), with maturities ranging between January 2014 and December 2014; no associated cash collateral. | |||||||||||||||||||||||||||
(2) | Notional value as at December 29, 2013 of $30.0 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. | |||||||||||||||||||||||||||
(3) | Notional value as at December 29, 2013 of $90.0 million (December 30, 2012: nil), maturing in April 2014; no associated cash collateral. Subsequent to fiscal 2013 year-end, the Company entered into additional interest rate forwards with a notional value of $360.0 million, maturing in April 2014. | |||||||||||||||||||||||||||
(4) | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 10), was $41.4 million as at December 29, 2013 (December 30, 2012: $41.4 million). The TRS have maturities annually, in May, between fiscal 2015 and fiscal 2019. | |||||||||||||||||||||||||||
Year-ended December 29, 2013 | Year-ended December 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments(1) | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
Consolidated | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | ||||||||||||||||||||||
Statement of | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Operations | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | 9,971 | $ | (3,969 | ) | $ | 6,002 | $ | (5,009 | ) | $ | (667 | ) | $ | (5,676 | ) | |||||||||||
Interest rate swap(3) | Interest (expense) | (242 | ) | 193 | (49 | ) | — | — | — | |||||||||||||||||||
Interest rate forwards(4) | Interest (expense) | (9,555 | ) | 774 | (8,781 | ) | — | 691 | 691 | |||||||||||||||||||
Total | 174 | (3,002 | ) | (2,828 | ) | (5,009 | ) | 24 | (4,985 | ) | ||||||||||||||||||
Income tax effect | Income taxes | (2,581 | ) | 1,002 | (1,579 | ) | 1,455 | (13 | ) | 1,442 | ||||||||||||||||||
Net of income taxes | $ | (2,407 | ) | $ | (2,000 | ) | $ | (4,407 | ) | $ | (3,554 | ) | $ | 11 | $ | (3,543 | ) | |||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Excludes amounts related to ineffectiveness, as they were not significant. | |||||||||||||||||||||||||||
(2) | Other comprehensive income (“OCI”). | |||||||||||||||||||||||||||
(3) | The Ad Fund entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt (see note 13). | |||||||||||||||||||||||||||
(4) | The Company entered into and settled interest rate forwards relating to the Series 1 and Series 2 Notes (see note 13). The Company also entered into interest rate forwards during fiscal 2013 in anticipation of the Company obtaining longer-term financing for the remaining portion of the approved increase in the first half of 2014, barring unforeseen market conditions and subject to the negotiation and execution of agreements. | |||||||||||||||||||||||||||
Derivatives not designated as cash flow hedging instruments | Classification on Consolidated | Year-ended | ||||||||||||||||||||||||||
Statement of Operations | December 29, 2013 | December 30, 2012 | January 1, 2012 | |||||||||||||||||||||||||
TRS | General and administrative expenses | $ | (13,889 | ) | $ | 1,782 | $ | (5,033 | ) | |||||||||||||||||||
Forward currency contracts | Cost of sales | (193 | ) | 1,097 | (904 | ) | ||||||||||||||||||||||
Total (gain) loss, net | $ | (14,082 | ) | $ | 2,879 | $ | (5,937 | ) | ||||||||||||||||||||
Leases
Leases | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Leases | ' | |||||||||||
LEASES | ||||||||||||
The Company occupies land and buildings and uses equipment under terms of numerous lease agreements expiring on various dates through fiscal 2052. Land and building leases generally have an initial term of 10 to 30 years, while land-only lease terms can extend longer. Many of these leases provide for future rent escalations and renewal options. Certain leases require contingent rent, determined as a percentage of sales. Most leases also obligate the Company to pay the cost of maintenance, insurance and property taxes. | ||||||||||||
Assets leased under capital leases and included in property and equipment, but excluding leasehold improvements, consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Buildings | $ | 220,933 | $ | 197,438 | ||||||||
Other(1) | 13,039 | 9,083 | ||||||||||
Accumulated depreciation | (75,437 | ) | (67,721 | ) | ||||||||
Total | $ | 158,535 | $ | 138,800 | ||||||||
________________ | ||||||||||||
(1)Includes capital leases of the Ad Fund (see note 20). | ||||||||||||
No individual lease is material to the Company. Future minimum lease payments for all leases, and the present value of the net minimum lease payments for all capital leases as at December 29, 2013, were as follows: | ||||||||||||
Capital Leases | Operating Leases | |||||||||||
2014 | $ | 21,690 | $ | 102,643 | ||||||||
2015 | 25,723 | 103,784 | ||||||||||
2016 | 18,879 | 90,370 | ||||||||||
2017 | 15,906 | 77,996 | ||||||||||
2018 | 16,270 | 77,764 | ||||||||||
Subsequent years | 142,299 | 599,185 | ||||||||||
Total minimum lease payments(1) | $ | 240,767 | $ | 1,051,742 | ||||||||
Amount representing interest | (109,987 | ) | ||||||||||
Present value of net minimum lease payments | 130,780 | |||||||||||
Current portion | (9,731 | ) | ||||||||||
$ | 121,049 | |||||||||||
________________ | ||||||||||||
-1 | Of the total future minimum lease obligations noted above, the Company has minimum lease receipts under non-cancelable subleases with lessees of $148.0 million for capital leases and $534.0 million for operating leases. | |||||||||||
Rent expense consists of rentals for premises and equipment leases, and was as follows: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Minimum rents | $ | 106,303 | $ | 96,482 | $ | 89,329 | ||||||
Contingent rents | 77,892 | 77,842 | 74,549 | |||||||||
Total rent expense(1) | $ | 184,195 | $ | 174,324 | $ | 163,878 | ||||||
________________ | ||||||||||||
(1) | Included in Operating expenses in the Consolidated Statement of Operations. | |||||||||||
In connection with the franchising of certain restaurants, the Company has leased or subleased land, buildings and equipment to certain restaurant owners. Lease terms are generally 10 years with one or more five year renewal options. The restaurant owners bear the cost of maintenance, insurance and property taxes. | ||||||||||||
Company assets under lease or sublease, included in Property and equipment, net in the Consolidated Balance Sheet, consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Land | $ | 189,301 | $ | 180,073 | ||||||||
Buildings and leasehold improvements | 1,474,802 | 1,318,194 | ||||||||||
Restaurant equipment | 82,406 | 70,645 | ||||||||||
1,746,509 | 1,568,912 | |||||||||||
Accumulated depreciation | (690,246 | ) | (604,703 | ) | ||||||||
$ | 1,056,263 | $ | 964,209 | |||||||||
At December 29, 2013, future minimum lease receipts, excluding any contingent rent, were as follows: | ||||||||||||
Operating Leases | ||||||||||||
2014 | $ | 231,307 | ||||||||||
2015 | 202,577 | |||||||||||
2016 | 165,973 | |||||||||||
2017 | 136,856 | |||||||||||
2018 | 107,201 | |||||||||||
Subsequent years | 237,211 | |||||||||||
Total | $ | 1,081,125 | ||||||||||
Rental income for each year amounted to the following: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Minimum rents | $ | 314,865 | $ | 300,021 | $ | 291,557 | ||||||
Contingent rents | 264,820 | 257,594 | 242,101 | |||||||||
Total rental income(1) | $ | 579,685 | $ | 557,615 | $ | 533,658 | ||||||
________________ | ||||||||||||
(1) | Included in Rents and royalties revenues in the Consolidated Statement of Operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 expanded lunch offerings led to lower franchisee profitability. The claim, which sought class action certification on behalf of Canadian restaurant owners, as amended, asserted damages of approximately $1.95 billion. The action was dismissed in its entirety by summary judgment in February, 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. Reserves related to the potential resolution of any outstanding legal proceedings are based on the amounts that are determined by the Company to be probable and reasonably estimable. These reserves are not significant and are included in Accounts payable in the Consolidated Balance Sheet. As of the date hereof, the Company believes that the ultimate resolution of such matters will not materially affect the Company’s consolidated financial statements. | |
The Company has entered into purchase arrangements with some of its suppliers for terms which generally do not exceed one fiscal year. The range of prices and volume of purchases under the agreements may vary according to the Company’s demand for the products and fluctuations in market rates. These agreements help the Company secure pricing and product availability. The Company does not believe these agreements expose the Company to significant risk. |
Common_Shares
Common Shares | 12 Months Ended |
Dec. 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, but subject to a cap of $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 could 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 could 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 were at a discount to the prevailing market price as provided in the exemption order. The 2013 Program commenced on February 26, 2013 and was terminated in February 2014 as the 10% public float maximum was reached. Common shares purchased pursuant to the 2013 Program were cancelled. | |
Share repurchase activity for fiscal 2013 and 2012 is reflected in the Consolidated Statement of Equity. All shares repurchased were cancelled. | |
In addition to completing the $1 billion expanded share repurchase program approved by the Board of Directors in fiscal 2013, the Board has determined that it would be appropriate to renew the Corporation’s normal course share repurchase program to permit the Corporation to repurchase up to an additional $210.0 million of our shares, either concurrently with, or following the completion of, the expanded share repurchase program. Accordingly, on February 19, 2014, our Board of Directors approved a new share repurchase program (“2014 Program”) authorizing the repurchase of an additional $440.0 million in common shares, not to exceed the regulatory maximum of 13,726,219 shares, representing 10% of our public float as defined under the Toronto Stock Exchange (“TSX”) rules as of February 14, 2014. The 2014 Program has received regulatory approval from the TSX. Our common shares may be purchased under the 2014 Program 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 2014 Program is planned to begin on February 28, 2014 and will expire on February 27, 2015, or earlier if the $440.0 million or 10% share maximum is reached. Common shares purchased pursuant to the 2014 Program will be canceled. The 2014 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 2014 Program. | |
Shares held in the Trust | |
The Company has a Trust, the TDL RSU Employee Benefit Plan Trust, which purchases shares on the open market to satisfy the Company’s obligation to deliver shares to settle the awards for most Canadian employees (see note 19). The cost of the purchase of common shares held by the Trust has been accounted for as a reduction in outstanding common shares. These shares will be held by the Trust until the RSUs vest, at which time they will be disbursed to certain Canadian employees. Occasionally, the Trust may sell shares to the Company to facilitate the remittance of the associated employee withholding obligations. | |
Share purchase rights | |
Pursuant to our shareholder rights plan (the “Rights Plan”), one right to purchase a common share (a “Right”) has been issued in respect of each of the outstanding common shares and an additional Right will be issued in respect of each additional common share issued prior to the Separation Time (as defined below). The purpose of the Rights Plan is to provide holders of our common shares, and our Board of Directors, with the time necessary so that, in the event of a take-over bid (the Canadian term for a tender offer) of the Company, alternatives to the bid which may be in the best interests of our Company are identified and fully explored. | |
The Rights will become exercisable and begin to trade separately from the associated common shares at the “Separation Time,” which is generally the close of business on the tenth trading day after the earliest to occur of: (a) a public announcement that a person or a group of affiliated or associated persons (an “Acquiring Person”) has acquired beneficial ownership of 20% or more of the outstanding common shares other than as a result of: (i) a reduction in the number of common shares outstanding, (ii) a Permitted Bid or Competing Permitted Bid (both as defined in the Rights Plan), (iii) acquisitions of common shares in respect of which the Company’s Board of Directors has waived the application of the Rights Plan, or (iv) other specified exempt acquisitions in which shareholders participate on a pro rata basis; (b) the date of commencement of, or the first public announcement of an intention of any person to commence, a take-over bid where the common shares subject to the bid, together with common shares owned by that person (including affiliates, associates and others acting jointly or in concert therewith) would constitute 20% or more of the outstanding common shares; and (c) the date upon which a Permitted Bid or Competing Permitted Bid ceases to be such. | |
After the Separation Time, each Right entitles the holder thereof to purchase one common share at the “Exercise Price,” which is initially $150 per share. Following a transaction which results in a person becoming an Acquiring Person (a “Flip-in Event”), the Rights will entitle the holder thereof (other than a holder who is an Acquiring Person) to receive, upon exercise, common shares with a market value equal to twice the then exercise price of the Rights. For example, if, at the time of the Flip-in Event, the Exercise Price is $150 per share and the common shares have a market price of $25 per share, the holder of each Right would be entitled to receive $300 per share in market value of the common shares (12 common shares) after paying $150 per share for such shares (i.e., the shares may be purchased at a 50% discount). In such event, however, any Rights directly or beneficially owned by an Acquiring Person (including affiliates, associates and others acting jointly or in concert therewith), or a transferee of any such person, will be void. A Flip-in Event does not include acquisitions pursuant to a Permitted Bid or Competing Permitted Bid. | |
The Rights Plan will remain in effect until September 28, 2018, subject to being reconfirmed by the Company’s shareholders every three years, next to occur in fiscal 2015. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 29, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||
Year-ended | ||||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||||
Restricted stock units | $ | 6,522 | $ | 9,537 | $ | 6,247 | ||||||||
Stock options and tandem SARs | 12,745 | 1,599 | 9,055 | |||||||||||
Deferred stock units | 2,722 | 726 | 2,021 | |||||||||||
Total stock-based compensation expense(1)(2) | $ | 21,989 | $ | 11,862 | $ | 17,323 | ||||||||
________________ | ||||||||||||||
(1) | Generally included in General and administrative expenses in the Consolidated Statement of Operations. | |||||||||||||
(2) | The Company does not receive a significant income tax benefit associated with stock-based compensation expense, primarily because the Company has made an election to forego its corporate tax deduction in Canada to enable Canadian employees to receive favourable tax treatment on an exercise of the SAR feature. | |||||||||||||
Total share-based awards of 1.1 million have been made under the 2006 Plan during years 2010 through May 10, 2012, and 0.9 million have been made under the 2012 Plan since May 10, 2012, to officers and certain employees, of which 0.7 million were granted as RSUs and 1.3 million as stock options with tandem SARs. Dividend equivalent rights have accrued on the RSUs. | ||||||||||||||
The 2012 Plan authorizes up to 2.9 million common shares of the Company for grants of awards. Awards that remained available to be granted under the 2006 Plan as of May 10, 2012 (the “Effective Date”), as well as awards granted under the 2006 Plan that are forfeited, or otherwise cease to be subject to such awards following the Effective Date (other than to the extent they are exercised for or settled in vested and non-forfeitable common shares) shall be transferred to and may be made available as awards under the 2012 Plan, provided that the aggregate number of common shares authorized for grants of awards under the 2012 Plan shall not exceed 2.9 million common shares. The terms of the 2006 Plan shall continue to govern awards granted under the 2006 Plan prior to the Effective Date. Following the Effective Date, no further awards have been, or will be, made under the 2006 Plan. As at December 29, 2013, there were outstanding equity awards covering 1.5 million common shares under the 2012 Plan. | ||||||||||||||
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. In fiscal 2013, the Company recognized a gain of $13.9 million (2012: loss of $1.8 million, 2011: gain of $5.0 million) in General and administrative expenses (see note 15) related to the revaluation of the TRS contracts. | ||||||||||||||
Restricted stock units | ||||||||||||||
Restricted Stock | Weighted Average | Total Intrinsic Value | Weighted Average Remaining Contractual Life | |||||||||||
Units | Grant Date Fair Value per Unit | |||||||||||||
(in thousands) | (in dollars) | (in thousands) | ||||||||||||
Balance as at December 30, 2012 | 312 | $ | 50.91 | $ | 15,147 | 1.5 | ||||||||
Granted(1) | 160 | 56.73 | ||||||||||||
Dividend equivalent rights | 7 | 56.4 | ||||||||||||
Vested and settled(2) | (150 | ) | 47.56 | |||||||||||
Forfeited | (22 | ) | 52.29 | |||||||||||
Balance as at December 29, 2013(3) | 307 | $ | 55.6 | $ | 19,119 | 1.4 | ||||||||
________________ | ||||||||||||||
(1) | The weighted average grant date fair value per RSU granted in fiscal 2012 was $54.49 (2011: $45.76). | |||||||||||||
(2) | Total total fair value of RSUs that vested and were settled in fiscal 2013 was $9.1 million (2012: $7.7 million, 2011: $6.8 million). RSUs are generally settled with common shares from the Trust. | |||||||||||||
(3) | Total unrecognized compensation cost related to non-vested RSUs outstanding was $6.0 million (2012: $4.6 million) and is expected to be recognized over a weighted-average period of 1.4 years (2012: 1.5 years). The Company expects substantially all of the outstanding RSUs to vest. | |||||||||||||
Deferred stock units | ||||||||||||||
Deferred Stock | Weighted Average | |||||||||||||
Units | Grant Date Fair Value per Unit | |||||||||||||
(in thousands) | (in dollars) | |||||||||||||
Balance as at December 30, 2012 | 138 | $ | 37.56 | |||||||||||
Granted(1) | 11 | 57.59 | ||||||||||||
Dividend equivalent rights | 3 | 57.02 | ||||||||||||
Settled(2) | (11 | ) | 37.41 | |||||||||||
Balance as at December 29, 2013(3) | 141 | $ | 39.57 | |||||||||||
________________ | ||||||||||||||
(1) | The weighted average grant date fair value per DSU granted in fiscal 2012 was $51.07 (2011: $46.13). | |||||||||||||
(2) | Total cash settlement of $0.4 million of DSUs was made in fiscal 2013 (2012: $0.4 million; 2011: nil). | |||||||||||||
(3) | Total fair value liability for DSUs was $8.8 million (2012: $6.7 million) and is included in Other long-term liabilities in the Consolidated Balance Sheet. | |||||||||||||
Stock options and tandem stock appreciation rights | ||||||||||||||
Stock Options with | Weighted Average | Total Intrinsic Value | Weighted Average Remaining Contractual Life | |||||||||||
SARs | Exercise Price | |||||||||||||
(in thousands) | (in dollars) | (in dollars) | (in years) | |||||||||||
Balance as at December 30, 2012 | 1,172 | $ | 40.73 | $ | 10,681 | 4.7 | ||||||||
Granted | 367 | 57.91 | ||||||||||||
Exercised(1)(2) | (329 | ) | 36.14 | |||||||||||
Forfeited | (14 | ) | 53.47 | |||||||||||
Balance as at December 30, 2013(3)(4)(5) | 1,196 | $ | 47.11 | $ | 18,150 | 4.6 | ||||||||
Total stock options/SARs exercisable as at December 29, 2013 | 574 | $ | 38.39 | $ | 13,713 | 3.4 | ||||||||
________________ | ||||||||||||||
(1) | Total cash settlement of $6.9 million of SARs was made in fiscal 2013 (2012: $4.2 million; 2011: $3.7 million). The associated options were cancelled. | |||||||||||||
(2) | The total intrinsic value of stock options exercised in fiscal 2013 was $6.9 million (2012: $3.7 million; 2011: $4.2 million). | |||||||||||||
(3) | Total fair value liability for stock options/SARs outstanding was $16.7 million (2012: $10.8 million) and is included in Other long-term liabilities in the Consolidated Balance Sheet. | |||||||||||||
(4) | A total of 0.3 million stock options/SARs vested in fiscal 2013 (2012: 0.4 million, 2011: 0.4 million), with an intrinsic value of $5.6 million (2012: $5.3 million, 2011: $6.5 million). | |||||||||||||
(5) | Total unrecognized compensation cost related to non-vested stock options outstanding was $3.3 million (2012: $1.4 million) and is expected to be recognized over a weighted-average period of 1.6 years (2012: 1.5 years). The Company expects substantially all of the outstanding stock options with tandem SARs to vest. | |||||||||||||
The fair value of these awards was determined at the grant date and each subsequent re-measurement date by applying the Black-Scholes-Merton option-pricing model, using the following assumptions: | ||||||||||||||
Year-ended | ||||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||||
Expected share price volatility(1) | 13% - 17% | 9% – 20% | 16% – 22% | |||||||||||
Risk-free interest rate(2) | 1.1% - 1.6% | 1.1% – 1.3% | 1.0% – 1.1% | |||||||||||
Expected life(3) | 0.5 – 4.0 years | 1.0 – 4.0 years | 1.7 – 3.9 years | |||||||||||
Expected dividend yield(4) | 1.70% | 1.80% | 1.40% | |||||||||||
Closing share price (in dollars)(5) | $62.29 | $48.51 | $49.36 | |||||||||||
Weighted average grant price | $57.91 | $54.86 | $45.76 | |||||||||||
________________ | ||||||||||||||
(1) | Estimated by using the Company’s historical share price volatility for a period similar to the expected life of the option as determined below. | |||||||||||||
(2) | Referenced from Government of Canada bonds with a maturity period similar to the expected life of the options. If an exact match in maturity was not found, the closest two maturities, one before and one after the expected life of the options, were used to extrapolate an estimated risk-free rate. | |||||||||||||
(3) | Based on historical experience. | |||||||||||||
(4) | Based on current, approved dividends expressed as a percentage of either the exercise price or the closing price at the end of the period, depending on the date of the assumption. | |||||||||||||
(5) | The closing share price is quoted from the TSX as of the last trading day preceding the date specified. | |||||||||||||
For purposes of the pricing model, grants are segregated by grant date and based on retirement eligibility, and the assumptions are adjusted accordingly. All stock options with tandem SARs granted to-date vest over three years and expire seven years from the date of issuance, provided that if an employee retires, the term decreases to the earlier of four years after retirement or expiration of the original term. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||||||||||||||
Dec. 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 | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||||||||||||||
Restaurants | % of Systemwide Restaurants | Restaurants | % of Systemwide Restaurants | |||||||||||||||||||||
Consolidated Non-owned restaurants | 331 | 7.4 | % | 365 | 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 Consolidated Statement of Operations and Cash Flows. The Ad Fund has purchased $75.4 million of equipment cumulatively since the inception of the Expanded Menu Board Program in fiscal 2011. | ||||||||||||||||||||||||
Actual contribution rates, based on a percentage of restaurant sales, to the advertising funds for franchised and Company-operated restaurants for Canada were 3.5% (2012: 3.5%, 2011: 3.5%) and for the U.S. were 4.0% (2012: 4.0%, 2011: 4.0%). Franchise and license agreements require contributions of up to 4.0% of restaurant sales. Contribution rates for Canadian restaurant owners have been voluntarily reduced to 3.5% of restaurant sales, but the Company retains the right to remove this voluntary rate reduction at any time. Substantially all of the advertising receipts are spent in the year received by the Canadian and U.S. advertising funds. The advertising funds’ expenditures are set forth in the table below: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||
Advertising expenses | $ | 255,056 | $ | 230,317 | $ | 214,989 | ||||||||||||||||||
Company contributions to the Canadian and U.S. advertising funds were as follows: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||
Company contributions | $ | 10,800 | $ | 10,813 | $ | 10,487 | ||||||||||||||||||
Contributions from consolidated non-owned restaurants | 13,801 | 12,545 | 10,466 | |||||||||||||||||||||
Total Company contributions | $ | 24,601 | $ | 23,358 | $ | 20,953 | ||||||||||||||||||
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: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
29-Dec-13 | ||||||||||||||||||||||||
Restaurant | Advertising | Total | ||||||||||||||||||||||
VIEs(1) | fund VIEs(2) | VIEs | ||||||||||||||||||||||
Sales | $ | 369,850 | $ | — | $ | 369,850 | ||||||||||||||||||
Advertising levies | — | 10,711 | 10,711 | |||||||||||||||||||||
Total revenues | 369,850 | 10,711 | 380,561 | |||||||||||||||||||||
Cost of sales | 364,260 | — | 364,260 | |||||||||||||||||||||
Operating expenses | — | 9,269 | 9,269 | |||||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | |||||||||||||||||||||
Operating income | 5,149 | 1,442 | 6,591 | |||||||||||||||||||||
Interest expense | — | 1,442 | 1,442 | |||||||||||||||||||||
Income before taxes | 5,149 | — | 5,149 | |||||||||||||||||||||
Income taxes | 869 | — | 869 | |||||||||||||||||||||
Net income attributable to non controlling interests | $ | 4,280 | $ | — | $ | 4,280 | ||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
30-Dec-12 | 1-Jan-12 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs(1) | fund VIEs(2) | VIEs | VIEs(1) | fund VIEs(2) | VIEs | |||||||||||||||||||
Sales | $ | 338,005 | $ | — | $ | 338,005 | $ | 282,384 | $ | — | $ | 282,384 | ||||||||||||
Advertising levies | — | 5,624 | 5,624 | — | 634 | 634 | ||||||||||||||||||
Total revenues | 338,005 | 5,624 | 343,629 | 282,384 | 634 | 283,018 | ||||||||||||||||||
Cost of sales | 332,151 | — | 332,151 | 277,953 | — | 277,953 | ||||||||||||||||||
Operating expenses | — | 4,602 | 4,602 | — | 634 | 634 | ||||||||||||||||||
Asset impairment | — | — | — | 900 | — | 900 | ||||||||||||||||||
Operating income | 5,854 | 1,022 | 6,876 | 3,531 | — | 3,531 | ||||||||||||||||||
Interest expense | — | 1,022 | 1,022 | 138 | — | 138 | ||||||||||||||||||
Income before taxes | 5,854 | — | 5,854 | 3,393 | — | 3,393 | ||||||||||||||||||
Income taxes | 973 | — | 973 | 457 | — | 457 | ||||||||||||||||||
Net income attributable to non controlling interests | $ | 4,881 | $ | — | $ | 4,881 | $ | 2,936 | $ | — | $ | 2,936 | ||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Includes rents, royalties, advertising expenses and product purchases from the Company which are eliminated upon the consolidation of these VIEs. | |||||||||||||||||||||||
(2) | 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. | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | |||||||||||||||||||||
VIEs | fund VIEs | VIEs | fund VIEs | |||||||||||||||||||||
Cash and cash equivalents | $ | 7,773 | $ | — | $ | 10,851 | $ | — | ||||||||||||||||
Advertising fund restricted assets – current | — | 39,783 | — | 45,337 | ||||||||||||||||||||
Other current assets | 7,155 | — | 6,770 | — | ||||||||||||||||||||
Property and equipment, net | 20,471 | 70,485 | 19,536 | 57,925 | ||||||||||||||||||||
Other long-term assets | 370 | 1,271 | 572 | 2,095 | ||||||||||||||||||||
Total assets | $ | 35,769 | $ | 111,539 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
Notes payable to Tim Hortons Inc. – current(1)(2) | $ | 13,689 | $ | 3,040 | $ | 13,637 | $ | — | ||||||||||||||||
Advertising fund liabilities – current | — | 59,913 | — | 44,893 | ||||||||||||||||||||
Other current liabilities(3) | 11,706 | 5,253 | 14,548 | 9,919 | ||||||||||||||||||||
Notes payable to Tim Hortons Inc. – long-term(1)(2) | 628 | 15,200 | 804 | — | ||||||||||||||||||||
Long-term debt(3) | — | 25,157 | — | 46,849 | ||||||||||||||||||||
Other long-term liabilities | 9,381 | 2,976 | 5,887 | 3,696 | ||||||||||||||||||||
Total liabilities | 35,404 | 111,539 | 34,876 | 105,357 | ||||||||||||||||||||
Equity of VIEs | 365 | — | 2,853 | — | ||||||||||||||||||||
Total liabilities and equity | $ | 35,769 | $ | 111,539 | $ | 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 Consolidated Balance Sheet (see note 6). | |||||||||||||||||||||||
(2) | In fiscal 2013, the Ad Fund entered into an agreement with a Company subsidiary for the Tim Card Revolving Credit Facility and the Tim Card Loan, which are funded by the Restricted cash and cash equivalents related to our Tim Card program. These balances are eliminated upon consolidation of the Ad Fund. | |||||||||||||||||||||||
(3) | Includes $30.2 million of debt with a Canadian financial institution relating to the Expanded Menu Board Program (December 30, 2012: $56.5 million), of which $5.0 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 TDL RSU Employee Benefit Plan 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 December 29, 2013 of $12.9 million (2012: $13.4 million), is presented as a reduction in outstanding common shares on the 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 (see note 11). 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 | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
SEGMENT REPORTING | ||||||||||||
The Company operates exclusively in the quick service restaurant industry. Effective 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 driven primarily by the business units’ respective systemwide sales; (iii) franchise fees; (iv) corporate restaurants; (v) equity income related to restaurant operating ventures; and (vi) 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 unit’s 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 prior years to conform to the current year’s presentation. | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Revenues(1) | ||||||||||||
Canada | $ | 2,660,358 | $ | 2,595,921 | $ | 2,403,002 | ||||||
U.S. | 197,226 | 165,723 | 156,291 | |||||||||
Corporate services | 17,388 | 15,231 | 10,655 | |||||||||
Total reportable segments | 2,874,972 | 2,776,875 | 2,569,948 | |||||||||
VIEs | 380,561 | 343,629 | 283,018 | |||||||||
Total | $ | 3,255,533 | $ | 3,120,504 | $ | 2,852,966 | ||||||
Operating Income (Loss) | ||||||||||||
Canada | $ | 665,675 | $ | 653,916 | $ | 625,139 | ||||||
U.S.(2) | 5,107 | 9,620 | 8,897 | |||||||||
Corporate services | (44,517 | ) | (57,013 | ) | (68,281 | ) | ||||||
Total reportable segments | 626,265 | 606,523 | 565,755 | |||||||||
VIEs(2) | 6,591 | 6,876 | 3,720 | |||||||||
Corporate reorganization expenses | (11,761 | ) | (18,874 | ) | — | |||||||
Consolidated Operating Income | 621,095 | 594,525 | 569,475 | |||||||||
Interest, net | (35,466 | ) | (30,413 | ) | (25,873 | ) | ||||||
Income before income taxes | $ | 585,629 | $ | 564,112 | $ | 543,602 | ||||||
________________ | ||||||||||||
(1) | There are no inter-segment revenues included in the above table. | |||||||||||
(2) | In fiscal 2013, the Company recognized an asset impairment charge in the U.S. related to certain non-core and non-priority markets, of which $2.5 million was recognized in the U.S. segment and $0.4 million related to consolidated VIEs. In fiscal 2012, the Company recognized a recovery of $0.4 million representing the final reversal of accruals upon the completion of closure activities in certain markets in New England in the U.S. segment. In fiscal 2011, the Company recognized an asset impairment charge related to under-performing restaurants in the Company’s Portland market, of which a recovery of $0.5 million was recognized in the U.S. segment and $0.9 million related to consolidated VIEs. Impairment charges reflect real estate and equipment fair values less costs to sell. | |||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Capital expenditures | ||||||||||||
Canada(1) | $ | 153,877 | $ | 113,546 | $ | 95,343 | ||||||
U.S. | 49,757 | 59,998 | 38,554 | |||||||||
Corporate services | 17,366 | 13,233 | 42,993 | |||||||||
Total reportable segments | $ | 221,000 | $ | 186,777 | $ | 176,890 | ||||||
______________ | ||||||||||||
(1) Excludes capital expenditures of the Ad Fund. | ||||||||||||
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 | ||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||
Total Property and equipment, net | ||||||||||||
Canada(1) | $ | 1,008,141 | $ | 915,733 | ||||||||
U.S.(1) | 413,928 | 378,457 | ||||||||||
Corporate services(2) | 175,804 | 184,938 | ||||||||||
Total reportable segments | 1,597,873 | 1,479,128 | ||||||||||
VIEs | 87,170 | 74,180 | ||||||||||
Consolidated Property and equipment, net | $ | 1,685,043 | $ | 1,553,308 | ||||||||
Total Assets | ||||||||||||
Canada | $ | 1,300,220 | $ | 1,175,552 | ||||||||
U.S. | 450,377 | 400,231 | ||||||||||
Corporate services | 272,330 | 281,043 | ||||||||||
Total reportable segments | 2,022,927 | 1,856,826 | ||||||||||
VIEs | 143,301 | 139,462 | ||||||||||
Unallocated assets(3) | 267,595 | 287,891 | ||||||||||
Consolidated Total assets | $ | 2,433,823 | $ | 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, substantially all of which is located in Canada. | |||||||||||
(3) | Includes Cash and cash equivalents, Restricted cash and cash equivalents, Deferred income taxes, Tax deposits and Prepaids, except as related to VIEs. | |||||||||||
Significant non-cash items included in reportable segment operating income and reconciled to total consolidated amounts are as follows: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Depreciation and amortization | ||||||||||||
Canada | $ | 100,567 | $ | 84,724 | $ | 74,962 | ||||||
U.S. | 33,853 | 23,837 | 20,488 | |||||||||
Corporate services | 15,655 | 17,254 | 17,602 | |||||||||
Total reportable segments | $ | 150,075 | $ | 125,815 | $ | 113,052 | ||||||
VIEs | $ | 11,734 | $ | 6,352 | $ | 2,817 | ||||||
Consolidated depreciation and amortization | $ | 161,809 | $ | 132,167 | $ | 115,869 | ||||||
Consolidated Sales and Cost of sales were as follows: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Sales | ||||||||||||
Distribution sales | $ | 1,872,296 | $ | 1,860,683 | $ | 1,705,692 | ||||||
Company-operated restaurant sales | 23,738 | 26,970 | 24,094 | |||||||||
Sales from VIEs | 369,850 | 338,006 | 282,384 | |||||||||
Total Sales | $ | 2,265,884 | $ | 2,225,659 | $ | 2,012,170 | ||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Cost of sales | ||||||||||||
Distribution cost of sales | $ | 1,619,858 | $ | 1,631,091 | $ | 1,501,503 | ||||||
Company-operated restaurant cost of sales | 25,446 | 28,857 | 24,720 | |||||||||
Cost of sales from VIEs | 327,599 | 297,390 | 246,152 | |||||||||
Total Cost of sales | $ | 1,972,903 | $ | 1,957,338 | $ | 1,772,375 | ||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Related Party Transactions | ' | |||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
The Company had the following expenses and outstanding balances associated with its 50/50 joint venture with Wendy’s: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Contingent rent expense(1) | $ | 25,329 | $ | 25,102 | $ | 24,677 | ||||||
________________ | ||||||||||||
-1 | Included in consolidated contingent rent expense (see note 16). | |||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Accounts receivable | $ | 254 | $ | 311 | ||||||||
Accounts payable | $ | 1,972 | $ | 2,048 | ||||||||
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
2013 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 523,887 | $ | 568,562 | $ | 575,780 | $ | 597,655 | ||||||||
Franchise revenues | ||||||||||||||||
Rents and royalties | 187,454 | 209,289 | 212,114 | 212,364 | ||||||||||||
Franchise fees | 20,196 | 22,288 | 37,459 | 88,485 | ||||||||||||
207,650 | 231,577 | 249,573 | 300,849 | |||||||||||||
Total revenues | 731,537 | 800,139 | 825,353 | 898,504 | ||||||||||||
Corporate reorganization expense (note 2) | (9,475 | ) | (604 | ) | (953 | ) | (729 | ) | ||||||||
De-branding costs (note 3) | — | — | — | (19,016 | ) | |||||||||||
Other costs and expenses, net | (594,145 | ) | (622,956 | ) | (655,572 | ) | (730,988 | ) | ||||||||
Operating income | $ | 127,917 | $ | 176,579 | $ | 168,828 | $ | 147,771 | ||||||||
Net income attributable to Tim Hortons Inc. | $ | 86,171 | $ | 123,736 | $ | 113,863 | $ | 100,599 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.56 | $ | 0.81 | $ | 0.75 | $ | 0.69 | ||||||||
2012 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 523,302 | $ | 563,772 | $ | 568,541 | $ | 570,044 | ||||||||
Franchise revenues | ||||||||||||||||
Rents and royalties | 180,186 | 198,973 | 201,556 | 200,277 | ||||||||||||
Franchise fees | 17,796 | 22,836 | 31,943 | 41,278 | ||||||||||||
197,982 | 221,809 | 233,499 | 241,555 | |||||||||||||
Total revenues | 721,284 | 785,581 | 802,040 | 811,599 | ||||||||||||
Corporate reorganization expense (note 2) | — | (1,277 | ) | (8,565 | ) | (9,032 | ) | |||||||||
Other costs and expenses, net | (589,661 | ) | (625,465 | ) | (639,816 | ) | (652,163 | ) | ||||||||
Operating income | $ | 131,623 | $ | 158,839 | $ | 153,659 | $ | 150,404 | ||||||||
Net income attributable to Tim Hortons Inc. | $ | 88,779 | $ | 108,067 | $ | 105,698 | $ | 100,341 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.56 | $ | 0.69 | $ | 0.68 | $ | 0.65 | ||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||
SCHEDULE II | ||||||||||||||||
TO CONSOLIDATED FINANCIAL STATEMENTS—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(in thousands) | ||||||||||||||||
Classification | Balance at Beginning of Year | Charged (Credited) to Costs & Expenses | Additions | Balance at End of Year | ||||||||||||
(Deductions) | ||||||||||||||||
Fiscal year ended December 29, 2013: | ||||||||||||||||
Deferred tax asset valuation allowance | $ | 39,190 | $ | 3,022 | $ | 4,548 | $ | 46,760 | ||||||||
Allowance for doubtful accounts and notes | 3,035 | 1,606 | (1,474 | ) | 3,167 | |||||||||||
Inventory reserve | 1,015 | 2,181 | (1,442 | ) | 1,754 | |||||||||||
$ | 43,240 | $ | 6,809 | $ | 1,632 | $ | 51,681 | |||||||||
Fiscal year ended December 30, 2012: | ||||||||||||||||
Deferred tax asset valuation allowance | $ | 40,494 | $ | 6,431 | $ | (7,735 | ) | $ | 39,190 | |||||||
Allowance for doubtful accounts and notes | 3,239 | 890 | (1,094 | ) | 3,035 | |||||||||||
Inventory reserve | 844 | 1,238 | (1,067 | ) | 1,015 | |||||||||||
$ | 44,577 | $ | 8,559 | $ | (9,896 | ) | $ | 43,240 | ||||||||
Fiscal year ended January 1, 2012: | ||||||||||||||||
Deferred tax asset valuation allowance | $ | 37,471 | $ | 2,226 | $ | 797 | $ | 40,494 | ||||||||
Allowance for doubtful accounts and notes | 1,484 | 4,651 | (2,896 | ) | 3,239 | |||||||||||
Inventory reserve | 1,052 | 689 | (897 | ) | 844 | |||||||||||
$ | 40,007 | $ | 7,566 | $ | (2,996 | ) | $ | 44,577 | ||||||||
Year-end balances are reflected in the Consolidated Balance Sheets as follows: | ||||||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||||||
Valuation allowance, deferred income taxes | $ | 46,760 | $ | 39,190 | ||||||||||||
Deducted from accounts receivable and notes receivable, net | 3,167 | 3,035 | ||||||||||||||
Deducted from inventories and other, net | 1,754 | 1,015 | ||||||||||||||
$ | 51,681 | $ | 43,240 | |||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||
Dec. 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 blend coffee, espresso-based hot and cold specialty drinks (including lattes, cappuccinos and espresso shots), iced cappuccinos, specialty and steeped teas, cold beverages, fruit smoothies, home-style soups, chili, grilled Panini and classic sandwiches, wraps, yogurt and berries, oatmeal, breakfast sandwiches and wraps, and fresh baked goods, including donuts, Timbits®, bagels, muffins, cookies, croissants, Danishes, pastries and more. 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: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Systemwide Restaurant Count | ||||||||||
Franchised restaurants in operation – beginning of period | 4,242 | 3,996 | 3,730 | |||||||
Restaurants opened | 258 | 271 | 294 | |||||||
Restaurants closed | (39 | ) | (26 | ) | (29 | ) | ||||
Net transfers within the franchised system | 8 | 1 | 1 | |||||||
Franchised restaurants in operation – end of period | 4,469 | 4,242 | 3,996 | |||||||
Company-operated restaurants – end of period | 16 | 22 | 18 | |||||||
Total systemwide restaurants – end of period(1) | 4,485 | 4,264 | 4,014 | |||||||
% of restaurants franchised – end of period | 99.6 | % | 99.5 | % | 99.6 | % | ||||
________________ | ||||||||||
(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 255 primarily licensed locations in the Republic of Ireland and the United Kingdom as at December 29, 2013 (2012: 245 restaurants; 2011: 261 restaurants). | ||||||||||
Fiscal Year | ' | |||||||||
Fiscal year | ||||||||||
Each of the fiscal years presented consists of 52 weeks and ends on the Sunday nearest to December 31. | ||||||||||
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”). | ||||||||||
The functional currency of Tim Hortons Inc. is the Canadian dollar, as the majority of the Company’s cash flows are in Canadian dollars. The functional currency of each of the Company’s subsidiaries is typically the primary currency in which each subsidiary operates, which is primarily the Canadian dollar or U.S. dollar. The majority of the Company’s operations, restaurants and cash flows are based in Canada, and the Company is primarily managed in Canadian dollars. As a result, the Company’s reporting currency is the Canadian dollar. | ||||||||||
The 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”). 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. | ||||||||||
Use of Estimates | ' | |||||||||
Use of estimates | ||||||||||
The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make assumptions and estimates. These assumptions and estimates affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods. Estimates and judgments are inherent in, but not limited to, the following: income taxes; valuations used when assessing potential impairment of long-lived assets and/or restaurant closure costs; the estimation of the useful lives of long-lived assets; whether an entity is a VIE and whether the Company is the primary beneficiary of that VIE and other related estimates; the fair value of stock-based compensation and the related stock-based compensation expense; the probability of forecast transactions occurring for purposes of applying hedge accounting; and reserve contingencies for litigation and various other commitments, contingencies and accruals. While management applies its judgment based on assumptions believed to be reasonable under the circumstances and at the time, actual results could vary from these assumptions, and estimates may vary depending on the assumptions used. The Company evaluates and updates its assumptions and estimates based on new events occurring, additional information being obtained or more experience being acquired. | ||||||||||
Earnings Per Share | ' | |||||||||
Earnings per share | ||||||||||
Basic earnings per common share attributable to Tim Hortons Inc. are computed by dividing Net income attributable to Tim Hortons Inc. in the Consolidated Statement of Operations by the weighted average number of common shares outstanding. Diluted computations are based on the treasury stock method and include assumed issuances of outstanding restricted stock units (“RSUs”) and stock options with tandem stock appreciation rights (“SARs”), that take into account: (i) the amount, if any, the employee must pay upon exercise; (ii) the amount of compensation cost attributed to future services and not yet recognized; and (iii) the amount of tax benefits (both current and deferred), if any, that would be credited to contributed surplus assuming exercise of the options, net of shares assumed to be repurchased from the assumed proceeds, when dilutive. | ||||||||||
Revenue Recognition | ' | |||||||||
Revenue recognition | ||||||||||
The timing of revenue recognition for Sales (distribution, Company-operated restaurants and consolidated Non-owned restaurants) and Franchise revenues (i.e., rents, royalties and franchise fees) does not involve significant estimates and assumptions. | ||||||||||
Sales | ||||||||||
The Company operates warehouses in Canada to distribute coffee, shelf-stable and other dry goods, and refrigerated and frozen products to its extensive restaurant system. Revenues from distribution sales are recognized upon delivery. Revenues from Company-operated restaurants and consolidated Non-owned restaurants consolidated pursuant to applicable accounting rules (“consolidated Non-owned restaurants”) are recognized upon tender of payment at the time of sale. | ||||||||||
Franchise revenues | ||||||||||
Rental revenue, excluding contingent property and equipment rent, is recognized on a straight-line basis. Contingent rent, and royalties based on a percentage of monthly sales, are recognized as revenue on an accrual basis in the month earned. Restaurant owners may receive assistance through lower rents and royalties and reductions in, or assistance with, certain other operating costs (“relief”). Relief is recognized as a reduction to the Company’s rents and royalties revenues. Franchise fees are collected at the time of sale or extension of franchise rights. Franchise fees and equipment sales are generally recognized as revenue when each restaurant commences operations or re-opens subsequent to a renovation and collectability is reasonably assured. | ||||||||||
The advertising levies paid by restaurant owners to the Company’s advertising funds, other than those from Company-operated restaurants and Non-owned consolidated restaurants, are generally netted in the Consolidated Statement of Operations because the contributions to these advertising funds are designated for specific purposes, and the Company acts, in substance, as an agent with regard to these contributions. Advertising levies intended to pay for specific long-lived assets acquired by the advertising funds are accrued in the month earned on a gross basis (see Variable Interest Entities below). | ||||||||||
Tim Cards | ||||||||||
Proceeds from the initial sale or reloading of the Company’s Tim Card® quick-pay cash card program (“Tim Card”) balances are recognized as Restricted cash and cash equivalents in the Consolidated Balance Sheet along with a corresponding obligation. A Tim Card entitles the holder to use the value for purchasing products and the amounts generally are not redeemable for cash. When a guest uses a Tim Card to purchase products at a Company-operated restaurant or consolidated Non-owned restaurant, the Company recognizes the revenue from the sale of the product and relieves the obligation. When a customer uses a Tim Card at a franchised restaurant, the Company remits the cash to the restaurant owner from Restricted cash and cash equivalents and relieves the obligation. | ||||||||||
While the Company will honour all valid Tim Cards presented for payment, the Company may, based on a historical review after the program has been in place for some time, determine the likelihood of redemption to be remote for certain card balances (“breakage”) due to, among other factors, long periods of inactivity or historical redemption patterns. In these circumstances, to the extent management determines that there is no requirement for remitting funds to government agencies under unclaimed property laws, any such funds may be remitted to the Company’s advertising and promotion funds. No such amounts for breakage have been recognized for Tim Cards since inception, as we continue to assess historical redemption patterns. | ||||||||||
Advertising Costs | ' | |||||||||
Advertising costs | ||||||||||
Advertising costs are expensed as incurred, with the exception of media development costs which are expensed in the month that the advertisement is first communicated. | ||||||||||
Advertising costs, related to Company-operated restaurants and consolidated Non-owned restaurants, consisting of contributions made to the Company’s advertising funds, are recognized in Cost of sales in the Consolidated Statement of Operations. Contributions made to the advertising funds by the Company to fund additional advertising programs are included in General and administrative expenses in the Consolidated Statement of Operations. Contributions to the advertising funds are expensed when incurred. | ||||||||||
Share-based Compensation | ' | |||||||||
Stock-based compensation | ||||||||||
The Company’s 2006 Stock Incentive Plan (“2006 Plan”) and the 2012 Stock Incentive Plan (“2012 Plan”) are omnibus plans, designed to allow for a broad range of equity-based compensation awards in the form of RSUs, stock options, SARs, dividend equivalent rights (“DERs”), performance awards and share awards. The 2012 Plan was approved by shareholders at the annual and special meeting of shareholders held on May 10, 2012. The 2012 Plan was adopted as a result of the substantial completion of the 2006 Plan, under which no new awards will be granted. Outstanding awards granted under the 2006 Plan will continue to be settled using shares registered under the 2006 Plan. | ||||||||||
The Company has provided compensation to certain employees under the 2006 Plan and, subsequent to May 10, 2012, the 2012 Plan, in the form of RSUs and stock options with tandem SARs. In addition, the Company has issued deferred stock units (“DSUs”) to non-employee directors under the Company’s Non-Employee Director Deferred Stock Unit Plan. | ||||||||||
Restricted stock units | ||||||||||
RSUs are measured at fair value based on the closing price of the Company’s common shares on the Toronto Stock Exchange (“TSX”) on the first business day preceding the grant date. RSUs are expensed on a straight-line basis over the vesting period, which is a maximum 30-month period, except for grants to retirement-eligible employees, which, unless the grant of the RSU is subject to a performance condition, are expensed immediately. These expenses are primarily recognized in General and administrative expenses in the Consolidated Statement of Operations, consistent with the classification of the related employee compensation expense. | ||||||||||
In addition, the Company grants performance-conditioned RSUs to certain of its employees. The performance component is based on prior-year performance and is used to determine the amount of units granted. Performance-conditioned RSUs are expensed on a straight-line basis beginning when the performance measures are set and extends over the performance period (prior to grant) and the vesting period (after the grant), based on management’s determination that the achievement of the performance condition associated with the grant is probable. Both RSUs and performance-conditioned RSUs have accompanying DERs, that accumulate only subsequent to the grant (i.e., not during the performance period). | ||||||||||
RSUs are settled by the Company with the participant, after provision (on the account of the participant) for the payment of the participant’s minimum statutory withholding tax requirements, primarily by way of disbursement of common shares from the TDL RSU Employee Benefit Plan Trust (the “Trust”) or by an open market purchase by an agent of the Company on behalf of the eligible employee. The method of settlement is primarily dependent on the jurisdiction where the employee resides, but securities law, regulatory requirements and other factors are also considered. Since RSUs are settled with common shares, they are accounted for as equity-settled awards. | ||||||||||
Deferred stock units | ||||||||||
DSUs are granted in relation to the equity portion of the Board retainers paid as compensation for services provided by non-employee members of the Company’s Board of Directors, who may also elect to receive the remainder of their Board and Committee compensation in the form of DSUs. DSUs are expensed on the date of grant since they vest immediately, although they are not payable until a director’s separation from service. DSUs are notional units which track the value of the Company’s common shares. These units are settled in cash based on the value of the Company’s common shares on the TSX on the date of the director’s separation of service from the Company. As a cash-settled award, the related liability is revalued to fair value at the end of each reporting period, and recognized in General and administrative expenses in the Consolidated Statement of Operations. DSUs have accompanying DERs, which are also expensed as earned and recognized in General and administrative expenses in the Consolidated Statement of Operations. | ||||||||||
Stock options | ||||||||||
The Company uses the Black-Scholes-Merton option pricing model to value outstanding options, which requires the use of subjective assumptions. These assumptions include the estimated length of time employees will retain their stock options before exercising them (the “expected term”), the expected volatility of the Company’s common share price over the expected term, the risk-free interest rate, the dividend yield, and the forfeiture rate. The awards are issued with tandem SARs (see below) and are therefore accounted for as cash-settled awards. This results in a revaluation of the liability to fair value at the end of each reporting period, which is generally recognized in General and administrative expenses in the Consolidated Statement of Operations. The fair value of the options is expensed over the vesting period, except for grants to retirement-eligible employees which are expensed immediately. | ||||||||||
Stock appreciation rights | ||||||||||
SARs may be granted alone or in conjunction with a stock option. A SAR related to an option terminates upon the expiration, forfeiture or exercise of the related option, and is exercisable only to the extent that the related option is exercisable. Conversely, an option related to a SAR terminates upon the expiration, forfeiture or exercise of the related SAR, and is exercisable only to the extent that the related SAR is exercisable. Stock options with tandem SARs enable the employee to exercise the stock option to receive common shares or to exercise the SAR and receive a cash payment, in each case, of an amount equal to the difference between the market price of the common share on the exercise date and the exercise price of the stock option. | ||||||||||
Income Taxes | ' | |||||||||
Income taxes | ||||||||||
The Company uses the asset and liability method whereby income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for accounting purposes as compared to tax purposes. A deferred income tax asset or liability is determined for each temporary difference based on the currently enacted tax rates that are expected to be in effect when the underlying items of income and expense are expected to be realized, except for a portion of earnings related to foreign operations where repatriation is not contemplated in the foreseeable future. Income taxes reported in the Consolidated Statement of Operations include the current and deferred portions of the expense. Income taxes applicable to items charged or credited to equity are netted with such items. Changes in deferred income taxes related to a change in tax rates are recognized in the period when the tax rate change is enacted. In addition, the Consolidated Statement of Operations contains items that are non-taxable or non-deductible for income tax purposes and, accordingly, may cause the income tax provision to be different from what it would be if based on statutory rates. | ||||||||||
When considered necessary, the Company records a valuation allowance to reduce deferred tax assets to the balance that is more likely than not to be realized. To determine the valuation allowance, the Company must make estimates and judgments on future taxable income, considering feasible tax planning strategies and taking into account existing facts and circumstances. When the Company determines that the net amount of deferred tax assets could be realized in greater or lesser amounts than recognized, the asset balance and income tax expense reflect the change in the period such determination is made. Due to changes in facts and circumstances and the estimates and judgments that are involved in determining the valuation allowance, future events could result in adjustments to this valuation allowance. | ||||||||||
A tax benefit from an uncertain tax position may be recognized in the Consolidated Financial Statements only if it is more likely than not that the position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Changes in judgment that result in subsequent recognition, de-recognition or a change in measurement of a tax position taken in a prior period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. The Company records interest and potential penalties related to unrecognized tax benefits in Income taxes in the Consolidated Statement of Operations. The Company classifies a liability associated with an unrecognized tax benefit as a long-term liability, except for liabilities that are expected to be settled within the next 12 months. | ||||||||||
The determination of income tax expense takes into consideration amounts that may be needed to cover exposure for open tax years. The number of tax years that remain open and subject to tax audits varies depending on the tax jurisdiction. A number of years may elapse before an uncertain tax position, for which the Company has unrecognized tax benefits, is audited and resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its unrecognized tax benefits reflect management’s current estimate of the expected outcomes. Unrecognized tax benefits are adjusted, as well as the related interest and penalties, in light of subsequent changes in facts and circumstances. Settlement of any particular uncertain tax position may require the use of cash. In addition, the resolution of a matter may result in an adjustment to the provision for income taxes which may impact the effective tax rate in the period of resolution. | ||||||||||
Foreign Currency Transaction | ' | |||||||||
Foreign currency translation | ||||||||||
The functional currency of the Company’s U.S. operating subsidiaries is the U.S. dollar. For such entities, the assets and liabilities are translated at the year-end Canadian dollar exchange rates, and the revenues and expenses are translated at average Canadian dollar exchange rates for the period. Translation adjustments resulting from rate differences between the average rate and year-end rate are recognized as a component of Equity in Other comprehensive income (loss) in the Consolidated Statement of Comprehensive Income. | ||||||||||
Assets and liabilities denominated in a currency other than the functional currency of a subsidiary are translated at the period-end exchange rate and any currency adjustment is recognized in Other income, net in the Consolidated Statement of Operations. | ||||||||||
Cash and Cash Equivalents | ' | |||||||||
Cash and cash equivalents | ||||||||||
The Company considers short-term investments, which are highly liquid and have original maturities of three months or less, as cash equivalents. The Company limits the counterparty risk associated with its cash and cash equivalents by utilizing a number of different financial institutions and limiting the total amount of cash and cash equivalents held at any individual financial institution. The Company continually monitors the credit ratings of its counterparties and adjusts its positions, if appropriate. The majority of the cash and cash equivalents held by the Company as at December 29, 2013 and December 30, 2012 are held at Canadian financial institutions. | ||||||||||
Restricted Cash And Cash Equivalents And Restricted Investments | ' | |||||||||
Restricted cash and cash equivalents and Restricted investments | ||||||||||
Amounts presented as Restricted cash and cash equivalents in the Company’s Consolidated Balance Sheet represent the net amount of cash loaded onto Tim Cards by guests, less redemptions and loans to the Tim Hortons Advertising and Promotion Fund (Canada) Inc. (“Ad Fund”). The balances are restricted, as per agreement with restaurant owners, and can only be used for the settlement of obligations under the Tim Card program and for other limited purposes, such as loans to the Ad Fund. Since the inception of the Tim Card program, interest earned on Restricted cash and cash equivalents has been contributed to the Company’s advertising funds to help offset costs associated with this program. Obligations under the Tim Card program are included in Accrued liabilities in the Consolidated Balance Sheet. | ||||||||||
Changes in Restricted cash and cash equivalents and obligations under the Tim Card program are reflected in operating activities in the Consolidated Statement of Cash Flows. Purchases of, and proceeds upon, the maturity of Restricted investments are included in investment activities in the Consolidated Statement of Cash Flows. | ||||||||||
Notes Receivables, Net | ' | |||||||||
Notes receivable, net | ||||||||||
The Company has outstanding Franchise Incentive Program (“FIP”) arrangements with certain U.S. restaurant owners which generally provided interest-free financing (“FIP Note”) for the purchase of certain restaurant equipment, furniture, trade fixtures and signage. | ||||||||||
Notes receivable arise primarily from the FIP Notes and, to a lesser extent, from notes receivable on various equipment and other financing programs. In many cases, the Company will choose to hold a FIP Note beyond the initial term to help a restaurant owner achieve certain profitability targets or to accommodate a restaurant owner seeking to obtain third-party financing. If the restaurant owner does not repay the FIP Note, the Company is able to take back ownership of the restaurant and equipment based on the underlying franchise agreement, which collateralizes the FIP Note and, therefore, minimizes the credit risk to the Company. | ||||||||||
The need for an allowance for uncollectible amounts is reviewed on a specific restaurant owner basis using information available to the Company, including past-due balances, whether the Company has extended the FIP Note beyond the initial term, restaurant sales and profitability targets, collateral available as security, and the financial strength of the restaurant owner. An allowance is recognized for FIP Notes receivable, both principal and imputed interest, when amounts are identified as either uncollectible or impaired. For impaired FIP Notes, the Company has established an allowance for the difference between the net investment in the FIP Note and the current value of the underlying collateral of the FIP Note, which is based primarily on the estimated depreciated replacement cost of the underlying equipment. | ||||||||||
Inventories, Net | ' | |||||||||
Inventories, net | ||||||||||
Inventories are carried at the lower of cost (moving average) and market value and consist primarily of raw materials such as green coffee beans and finished goods such as restaurant food items, new equipment and parts, and paper supplies. | ||||||||||
Property and Equipment, Net | ' | |||||||||
Property and equipment, net | ||||||||||
The Company carries its Property and equipment, net in the Consolidated Balance Sheet at cost and depreciates and amortizes these assets using the straight-line method over the following estimated useful lives: | ||||||||||
Depreciation Periods | ||||||||||
Building and leasehold improvements | 10 to 40 years or lease term | |||||||||
Restaurant and other equipment | 7 to 16 years | |||||||||
Capital leases | 8 to 40 years or lease term | |||||||||
Computer hardware and software | 3 to 10 years | |||||||||
Advertising fund property and equipment | 3 to 10 years | |||||||||
Manufacturing and other equipment | 4 to 30 years | |||||||||
Construction in progress | Reclassified to above categories when put in use | |||||||||
The Company is considered to be the owner of certain restaurants leased from an unrelated lessor because the Company constructed some of the structural elements of those restaurants. Accordingly, the Company has included the restaurant construction costs for these restaurants in Property and equipment, net on the Consolidated Balance Sheet and recognized the lessor’s contributions to the construction costs for these certain restaurants as other debt. | ||||||||||
Major improvements are capitalized, while maintenance and repairs are expensed when incurred. | ||||||||||
Impairment of Long-Lived Assets | ' | |||||||||
Impairment of long-lived assets | ||||||||||
Long-lived assets are grouped at the lowest level of independent cash flows and tested for impairment whenever an event or circumstance occurs that indicates impairment may exist (“triggering event”). | ||||||||||
Restaurant-related long-lived assets are grouped into operating markets as this is the lowest identifiable level of independent cash flows. Events such as prolonged negative same-store sales growth in the market, which is a key operating metric, prolonged negative cash flows in the operating market, a higher-than-average number of restaurant closures in any one market, or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of prior to its estimated useful life, are indicators that the Company uses in evaluating whether a triggering event may exist. The Company also considers whether the affected market is developed or developing. In developed markets, the primary indicator for the overall health of an operating market is same-store sales growth. In developing markets, the Company assesses a number of additional factors, including systemwide sales growth, which encompasses new restaurants and same-store sales growth, the stage of growth of the operating market, the average unit sales volume trends, changes in the restaurant composition in the market and overall long-term performance expectations. | ||||||||||
Non-restaurant-related assets are grouped at the lowest level of independent cash flows. Corporate assets, which relate primarily to land, buildings and computer hardware and software systems, are grouped on a consolidated level with all long-lived assets as they support the entire business and do not generate independent cash flows. | ||||||||||
If it is determined that a triggering event has occurred, an undiscounted cash flow analysis is completed on the affected asset group to determine if the future expected undiscounted cash flows of an asset group are sufficient to recover the carrying value of the assets. If it is determined that the undiscounted cash flows are insufficient, then the asset group is deemed to be impaired. The fair value of the long-lived assets is estimated primarily using third-party appraisals or discounted cash flows, as appropriate. If the fair value of the asset group is less than the carrying amount, an impairment loss is recognized for the difference between the carrying amount and the fair value of the asset group. | ||||||||||
Lease | ' | |||||||||
Leases | ||||||||||
For operating leases, minimum lease payments, including minimum scheduled rent escalations, are recognized as rent expense on a straight-line basis over the lease term. This term includes certain option periods considered in the lease term and any periods during which the Company has use of the property but is not charged rent by a landlord (“rent holiday”). Contingent rentals are generally based on either a percentage of restaurant sales or as a percentage of restaurant sales in excess of stipulated amounts, and thus are not included in minimum lease payments but are included in rent expense when incurred. Rent incurred during the construction period is expensed. Leasehold improvement incentives paid to the Company by a landlord are recognized as a liability and amortized as a reduction of rent expense over the lease term. | ||||||||||
When determining the lease term for purposes of recording depreciation and rent or for evaluating whether a lease is capital or operating, the Company includes option periods, to the extent it is reasonably assured at the inception of the lease that failure to renew would have a negative economic impact on the Company. | ||||||||||
In the case of property that is leased or subleased by the Company to restaurant owners, minimum lease receipts, including minimum scheduled rent increases, are recognized as rent revenue on a straight-line basis. Contingent rent revenue is generally based on a percentage of franchised restaurant sales or a percentage of franchised restaurant sales in excess of stipulated amounts, and is recognized when these sales levels are met or exceeded. | ||||||||||
Variable Interest Entities | ' | |||||||||
Variable interest entities | ||||||||||
The Company identifies its variable interests within equity investments and license or operator arrangements, determines whether the legal entity in which these interests reside constitutes a VIE, and whether the Company is the primary beneficiary and therefore consolidates those VIEs. | ||||||||||
The VIE is consolidated if the Company has the power to direct and either has the obligation to absorb losses or right to receive benefits that potentially could be significant to that VIE. The consolidation of VIEs has no impact on consolidated net income attributable to Tim Hortons Inc. or earnings per share (“EPS”). | ||||||||||
VIEs for which the Company is the primary beneficiary: | ||||||||||
Non-owned restaurants—The Company enters into certain arrangements in which an operator acquires the right to operate a restaurant, but the Company owns the restaurant’s assets. In these arrangements, the Company has the ability to determine which operators manage restaurants and for what duration. The Company previously also entered into FIP arrangements, whereby restaurant owners finance the initial franchise fee and the purchase of restaurant assets. | ||||||||||
In both operator and FIP arrangements, the Company performs an analysis to determine whether the legal entity in which operations are conducted lacks sufficient equity to finance its activities and is therefore a VIE. For the entities determined to be VIEs, if the Company receives potentially significant benefits from these VIEs and is considered to direct the activities that most significantly impact economic performance, then the VIE is consolidated. | ||||||||||
Advertising funds—The Company participates in separate advertising funds for Canada and the U.S. which, on behalf of the Company and restaurant owners, collect contributions and administer funds for advertising and promotional programs to increase sales and enhance the reputation of the Company and its restaurant owners. The Company is the sole shareholder (Canada) and sole member (U.S.) of these funds. As the Company acts as an agent for these specifically designated contributions, the revenues, expenses and cash flows of the funds are generally netted in the Consolidated Statements of Operations and Cash Flows. | ||||||||||
The Trust—In connection with RSUs granted to Company employees, the Company established the Trust, which purchases and retains common shares of the Company to satisfy the Company’s contractual obligation to deliver its common shares to settle the awards for most Canadian employees. The Company funds the Trust and directs the activities of the Trust. | ||||||||||
VIEs for which the Company is not the primary beneficiary: | ||||||||||
The Company also has investments in certain real estate ventures determined to be VIEs of which the Company is not the primary beneficiary. The most significant of these is TIMWEN Partnership, owned on a 50/50 basis by the Company and The Wendy’s Company (“Wendy’s”) to jointly develop the real estate underlying combination restaurants in Canada that offer Tim Hortons and Wendy’s products at one location. Control is considered to be shared since all significant decisions must be made jointly. These real estate ventures are accounted for using the equity method, based on the Company’s ownership percentages, and are included in Equity investments in the Consolidated Balance Sheet. | ||||||||||
Fair Value Measurements | ' | |||||||||
Fair value measurements | ||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used by the Company to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The measurement of fair value is based on three levels of inputs, as follows: | ||||||||||
• | Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||
• | Level 2—Inputs, other than Level 1 inputs, that are observable for the assets or liabilities, either directly or indirectly. Level 2 inputs include: quoted market prices for similar assets or liabilities; quoted prices in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
• | Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||
Derivative Instruments | ' | |||||||||
Derivative instruments | ||||||||||
The Company recognizes and measures all derivatives as either assets or liabilities at fair value in the Consolidated Balance Sheet. Derivatives that qualify as hedging instruments are generally cash flow hedges. | ||||||||||
The Company has a policy prohibiting speculative trading in derivatives. The Company may enter into derivatives that are not initially designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. | ||||||||||
The Company limits its counterparty risk associated with derivative instruments by utilizing a number of different financial institutions, and by generally entering into International Swaps and Derivatives Association agreements with those financial institutions. The Company continually monitors its positions, and the credit ratings of its counterparties, and adjusts positions if appropriate. The Company did not have significant exposure to any individual counterparty as at December 29, 2013 or December 30, 2012. | ||||||||||
Cash flow hedges | ||||||||||
The Company’s exposure to foreign exchange risk is mainly related to fluctuations between the Canadian dollar and the U.S. dollar. The Company is also exposed to changes in interest rates in the periods prior to the issuance of longer-term financing. The Company seeks to manage its cash flow and income exposures and may use derivative products to reduce the risk of a significant impact on its cash flows or income. The Company does not hedge foreign currency or interest rate risk in a manner that would entirely eliminate the effect of changes in foreign currency exchange rates or interest rates on net income and cash flows. | ||||||||||
For cash flow hedges, the effective portion of the gains or losses on derivatives is recognized in the cash flow hedges component of Accumulated other comprehensive loss in Total equity of Tim Hortons Inc. in the Consolidated Balance Sheet and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings. For interest rate forwards, gains or losses recognized in Accumulated other comprehensive income are amortized to interest expense over the life of the related debt, as the underlying interest expense is recognized in the Consolidated Statement of Operations. The ineffective portion of gains or losses on derivatives is reported in the Consolidated Statement of Operations. We classify the cash flows from hedging transactions in the same categories as the cash flows from the respective hedged items. The Company discontinues hedge accounting when: (i) it determines that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is probable that the forecasted transaction will not occur; or (iv) management determines that designation of the derivative as a hedge instrument is no longer appropriate. For discontinued or de-designated cash flow hedges, the related accumulated derivative gains or losses are recognized in earnings in the Consolidated Statement of Operations. | ||||||||||
Other derivatives | ||||||||||
The Company has a number of total return swaps (“TRS”) outstanding that are intended to reduce the variability of cash flows and, to a lesser extent, earnings associated with stock-based compensation awards that will settle in cash, namely, the SARs that are associated with stock options and DSUs. The TRS do not qualify as accounting hedges and, therefore, the fair value adjustment at the end of each reporting period is recognized in General and administrative expenses in the Consolidated Statement of Operations. Each TRS has a seven-year term, but each contract allows for partial settlements, at the option of the Company, over the term and without penalty. | ||||||||||
Accounting Changes - New Accounting Standards | ' | |||||||||
Accounting changes - new accounting standards | ||||||||||
In 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. |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Dec. 29, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Franchised Locations and System Activity | ' | |||||||||
The following table outlines the Company’s systemwide restaurant count and activity: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Systemwide Restaurant Count | ||||||||||
Franchised restaurants in operation – beginning of period | 4,242 | 3,996 | 3,730 | |||||||
Restaurants opened | 258 | 271 | 294 | |||||||
Restaurants closed | (39 | ) | (26 | ) | (29 | ) | ||||
Net transfers within the franchised system | 8 | 1 | 1 | |||||||
Franchised restaurants in operation – end of period | 4,469 | 4,242 | 3,996 | |||||||
Company-operated restaurants – end of period | 16 | 22 | 18 | |||||||
Total systemwide restaurants – end of period(1) | 4,485 | 4,264 | 4,014 | |||||||
% of restaurants franchised – end of period | 99.6 | % | 99.5 | % | 99.6 | % | ||||
________________ | ||||||||||
(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.” | |||||||||
Schedule Of Estimated Useful Lives Of Property And Equipment [Text Block] | ' | |||||||||
The Company carries its Property and equipment, net in the Consolidated Balance Sheet at cost and depreciates and amortizes these assets using the straight-line method over the following estimated useful lives: | ||||||||||
Depreciation Periods | ||||||||||
Building and leasehold improvements | 10 to 40 years or lease term | |||||||||
Restaurant and other equipment | 7 to 16 years | |||||||||
Capital leases | 8 to 40 years or lease term | |||||||||
Computer hardware and software | 3 to 10 years | |||||||||
Advertising fund property and equipment | 3 to 10 years | |||||||||
Manufacturing and other equipment | 4 to 30 years | |||||||||
Construction in progress | Reclassified to above categories when put in use |
Corporate_Reorganization_Expen1
Corporate Reorganization Expenses (Tables) | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Corporate Reorganization Expenses | ' | |||||||||||||||
The Company completed the realignment of roles and responsibilities under its new organizational structure, which includes a Corporate Centre and Business Unit, at the end of the first quarter of fiscal 2013, and incurred the following expenses, as set forth in the table below: | ||||||||||||||||
Year-ended | ||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||
Termination costs | $ | 6,342 | $ | 9,016 | $ | — | ||||||||||
Professional fees and other | 2,349 | 7,602 | — | |||||||||||||
CEO transition costs | 3,070 | 2,256 | — | |||||||||||||
Total Corporate reorganization expenses | $ | 11,761 | $ | 18,874 | $ | — | ||||||||||
Accrued Reorganization Expenses | ' | |||||||||||||||
Termination | Professional | CEO transition | Total | |||||||||||||
costs | fees and other | costs | ||||||||||||||
Costs 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 | ||||||||||||
Costs incurred during fiscal 2013 | 6,342 | 2,349 | 3,070 | 11,761 | ||||||||||||
Paid during fiscal 2013 | (12,932 | ) | (5,947 | ) | (466 | ) | (19,345 | ) | ||||||||
Accrued as at December 29, 2013(1) | $ | 968 | $ | 229 | $ | 4,449 | $ | 5,646 | ||||||||
_____________ | ||||||||||||||||
(1) | Of the total accrual, $4.9 million is recognized in Accounts Payable (December 30, 2012: $12.4 million), which is expected to be substantially settled in the first half of fiscal 2014 (see note 12). |
Debranding_costs_Tables
De-branding costs (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Schedule of De-branding Costs [Abstract] | ' | |||||||||||
Schedule of De-branding Costs | ' | |||||||||||
The de-branding costs recognized in the fourth quarter of fiscal 2013 as a result of this initiative, all of which were reflected in the Canadian segment, are set forth in the following table: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Payments to restaurant owners(1)(3) | $ | 7,373 | $ | — | $ | — | ||||||
Accelerated depreciation and amortization of long-lived assets(2) | 6,827 | — | — | |||||||||
Inventory write-downs | 2,400 | — | — | |||||||||
Other related costs(3) | 2,416 | — | — | |||||||||
Total De-branding costs | $ | 19,016 | $ | — | $ | — | ||||||
________________ | ||||||||||||
(1) | Includes payments to affected restaurant owners to de-brand and to restore their restaurants. | |||||||||||
(2) | The Company’s master license agreement with Kahala Franchise Corp. to use Cold Stone Creamery licenses in Canada remains in effect, although the remaining balance of $2.4 million was amortized in the fourth quarter of 2013 as the Company has no further plans to develop the Cold Stone Creamery brand in Tim Hortons locations in Canada. | |||||||||||
(3) | Primarily recorded in Accrued liabilities, Other (see note 12) on the Consolidated Balance Sheet. The Company expects to settle these obligations in the first half of fiscal 2014. |
Earnings_Per_Common_Share_Attr1
Earnings Per Common Share Attributable to Tim Hortons Inc. (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computations of Basic and Diluted Earnings Per Common Share | ' | |||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Net income attributable to Tim Hortons Inc. | $ | 424,369 | $ | 402,885 | $ | 382,812 | ||||||
Weighted average number of shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,155 | 155,160 | 162,145 | |||||||||
Dilutive impact of restricted stock units (in thousands) | 212 | 217 | 197 | |||||||||
Dilutive impact of stock options with tandem SARs (in thousands) | 255 | 299 | 255 | |||||||||
Weighted average number of shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | 150,622 | 155,676 | 162,597 | |||||||||
Basic earnings per common share attributable to Tim Hortons Inc. | $ | 2.83 | $ | 2.6 | $ | 2.36 | ||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 2.82 | $ | 2.59 | $ | 2.35 | ||||||
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts Receivable, Net | ' | |||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Accounts receivable | $ | 128,530 | $ | 112,522 | ||||
Franchise sales receivable | 27,197 | 2,386 | ||||||
Other receivables(1) | 56,602 | 57,942 | ||||||
212,329 | 172,850 | |||||||
Allowance | (1,665 | ) | (1,245 | ) | ||||
Accounts receivable, net | $ | 210,664 | $ | 171,605 | ||||
________________ | ||||||||
(1) | Includes accrued rent, Tim Card receivable, accrued income tax and other accruals. |
Notes_Receivable_Net_Tables
Notes Receivable, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Notes Receivable by Segment | ' | |||||||||||||||||||||||
As at | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Gross | VIEs(1) | Total | Gross | VIEs(1) | Total | |||||||||||||||||||
FIPs | $ | 16,677 | $ | (13,668 | ) | $ | 3,009 | $ | 20,235 | $ | (13,499 | ) | $ | 6,736 | ||||||||||
Other notes receivable(2) | 8,256 | (649 | ) | 7,607 | 4,773 | (942 | ) | 3,831 | ||||||||||||||||
Notes receivable | $ | 24,933 | $ | (14,317 | ) | 10,616 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance(3) | (1,502 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 9,114 | $ | 8,777 | ||||||||||||||||||||
Current portion, net | $ | 4,631 | $ | 7,531 | ||||||||||||||||||||
Long-term portion, net | $ | 4,483 | $ | 1,246 | ||||||||||||||||||||
Notes Receivable by Class and Aging | ' | |||||||||||||||||||||||
As at | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Class and Aging | Gross | VIEs(1) | Total | Gross | VIEs(1) | Total | ||||||||||||||||||
Current status (FIP notes and other) | $ | 9,688 | $ | (2,081 | ) | $ | 7,607 | $ | 6,969 | $ | (1,269 | ) | $ | 5,700 | ||||||||||
Past-due status < 90 days (FIP notes) | 328 | — | 328 | 407 | (407 | ) | — | |||||||||||||||||
Past-due status > 90 days (FIP notes) | 14,917 | (12,236 | ) | 2,681 | 17,632 | (12,765 | ) | 4,867 | ||||||||||||||||
Notes receivable | $ | 24,933 | $ | (14,317 | ) | 10,616 | $ | 25,008 | $ | (14,441 | ) | 10,567 | ||||||||||||
Allowance(3) | (1,502 | ) | (1,790 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 9,114 | $ | 8,777 | ||||||||||||||||||||
________________ | ||||||||||||||||||||||||
(1) | The notes payable to the Company by VIEs are eliminated on consolidation, which reduces the Notes receivable, net recognized on the Consolidated Balance Sheet (see note 20). | |||||||||||||||||||||||
(2) | Relates primarily to notes issued to vendors in conjunction with the financing of a property sale, and on various equipment and other financing programs. | |||||||||||||||||||||||
(3) | The Company has recognized an allowance to reflect the current value, based primarily on the estimated depreciated replacement cost of the underlying equipment held as collateral. Substantially all of the allowance relates to past-due FIP Notes. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Provision for Income Taxes, Foreign Indicates U.S. | ' | |||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Current | ||||||||||||
Canadian(1) | $ | 159,369 | $ | 148,168 | $ | 157,685 | ||||||
Foreign(2) | 2,453 | 3,323 | 5,240 | |||||||||
161,822 | 151,491 | 162,925 | ||||||||||
Deferred | ||||||||||||
Canadian(1) | (5,848 | ) | 2,836 | (2,506 | ) | |||||||
Foreign(2) | 1,006 | 2,019 | (2,565 | ) | ||||||||
(4,842 | ) | 4,855 | (5,071 | ) | ||||||||
Income tax expense | $ | 156,980 | $ | 156,346 | $ | 157,854 | ||||||
________________ | ||||||||||||
(1) | Income before income taxes representing Canadian earnings in fiscal 2013 was $578.3 million (2012: $554.9 million; 2011: $536.1 million). | |||||||||||
(2) | Represents taxes related to U.S. and international operations. | |||||||||||
Reconciliation of Statutory Rate to Effective Tax Rate | ' | |||||||||||
A reconciliation of statutory Canadian and provincial income tax rates is shown below: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Income before income taxes | $ | 585,629 | $ | 564,112 | $ | 543,602 | ||||||
Statutory rate | 26.5 | % | 26.5 | % | 28.3 | % | ||||||
Income taxes at statutory rate | 155,348 | 149,551 | 153,567 | |||||||||
Taxation difference on foreign earnings | 5,011 | 4,310 | (1,846 | ) | ||||||||
Provincial, state and local tax rate differentials | 630 | 634 | 152 | |||||||||
Change in reserves for uncertain tax positions | (8,412 | ) | (1,620 | ) | 3,271 | |||||||
Change in valuation allowance | 3,022 | 6,431 | 2,226 | |||||||||
Other | 1,381 | (2,960 | ) | 484 | ||||||||
Income taxes at effective rate | $ | 156,980 | $ | 156,346 | $ | 157,854 | ||||||
Effective tax rate | 26.8 | % | 27.7 | % | 29 | % | ||||||
Tax-Effected Temporary Differences which gave Rise to Deferred Tax Assets and Liabilities | ' | |||||||||||
The tax-effected temporary differences which gave rise to deferred tax assets and liabilities consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Deferred tax assets | ||||||||||||
U.S. foreign tax credit carryforwards | $ | 18,649 | $ | 23,209 | ||||||||
Lease transactions | 64,796 | 56,645 | ||||||||||
Property and equipment basis differences | 11,757 | 11,008 | ||||||||||
Intangible assets basis differences | 1,479 | 1,643 | ||||||||||
Stock-based compensation plans | 6,062 | 5,776 | ||||||||||
Reserves and expenses not currently deductible | 8,631 | 4,065 | ||||||||||
Deferred income | 16,659 | 13,205 | ||||||||||
Loss carryforwards | 10,960 | 5,037 | ||||||||||
All other | 539 | 696 | ||||||||||
139,532 | 121,284 | |||||||||||
Valuation allowance | (46,760 | ) | (39,190 | ) | ||||||||
$ | 92,772 | $ | 82,094 | |||||||||
Deferred tax liabilities | ||||||||||||
Lease transactions | $ | 43,409 | $ | 38,244 | ||||||||
Property and equipment basis differences | 26,581 | 30,711 | ||||||||||
Unremitted earnings – foreign operations(1) | 3,621 | 2,314 | ||||||||||
Stock-based compensation plans | 6,486 | 2,975 | ||||||||||
All other | 1,421 | 745 | ||||||||||
$ | 81,518 | $ | 74,989 | |||||||||
Net deferred tax assets | $ | 11,254 | $ | 7,105 | ||||||||
Reported in Consolidated Balance Sheet as: | ||||||||||||
Deferred income taxes – current asset | $ | 10,165 | $ | 7,142 | ||||||||
Deferred income taxes – long-term asset | 11,018 | 10,559 | ||||||||||
Deferred income taxes – current liability | — | (197 | ) | |||||||||
Deferred income taxes – long-term liability | (9,929 | ) | (10,399 | ) | ||||||||
$ | 11,254 | $ | 7,105 | |||||||||
________________ | ||||||||||||
(1) | The Company has provided for deferred taxes as at December 29, 2013 on approximately $120.7 million (2012: $88.2 million) of undistributed earnings that are not indefinitely reinvested. | |||||||||||
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (excluding related interest and penalties), is as follows: | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Balance at beginning of year | $ | 25,041 | $ | 29,755 | ||||||||
Additions based on tax positions related to the current year | 510 | 1,034 | ||||||||||
Additions for tax positions of prior years | 3,983 | 1,978 | ||||||||||
Reductions for tax positions of prior years | (1,280 | ) | (3,533 | ) | ||||||||
Reductions related to settlements with taxing authorities | (821 | ) | (895 | ) | ||||||||
Reductions as a result of a lapse of applicable statute of limitations | (10,114 | ) | (3,298 | ) | ||||||||
Balance at end of year | $ | 17,319 | $ | 25,041 | ||||||||
Reported in the Consolidated Balance Sheet as: | ||||||||||||
Accrued liabilities, Taxes | $ | — | $ | 3,835 | ||||||||
Other long-term liabilities (note 12) | 17,319 | 21,206 | ||||||||||
$ | 17,319 | $ | 25,041 | |||||||||
Inventories_and_Other_Net_Tabl
Inventories and Other, Net (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories and Other, Net | ' | |||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Raw materials | $ | 22,789 | $ | 19,941 | ||||
Finished goods | 69,348 | 75,660 | ||||||
92,137 | 95,601 | |||||||
Inventory obsolescence provision | (1,754 | ) | (1,015 | ) | ||||
Inventories, net | 90,383 | 94,586 | ||||||
Prepaids and other | 13,943 | 12,414 | ||||||
Total Inventories and other, net | $ | 104,326 | $ | 107,000 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of Property and Equipment, Net | ' | |||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Land | $ | 259,386 | $ | 248,097 | ||||
Buildings and leasehold improvements | 1,638,755 | 1,481,454 | ||||||
Restaurant and other equipment | 208,986 | 188,216 | ||||||
Capital leases(1) | 233,090 | 205,543 | ||||||
Computer hardware and software(2) | 124,114 | 117,266 | ||||||
Advertising fund property and equipment(3) | 138,858 | 116,044 | ||||||
Manufacturing and other equipment | 97,083 | 112,991 | ||||||
Construction in progress | 35,827 | 18,957 | ||||||
Property and equipment, net of impairment | 2,736,099 | 2,488,568 | ||||||
Accumulated depreciation and amortization | (1,051,056 | ) | (935,260 | ) | ||||
Total Property and equipment, net | $ | 1,685,043 | $ | 1,553,308 | ||||
________________ | ||||||||
-1 | Capital leases relate primarily to leased buildings. The Company added $34.5 million of capital leased assets in fiscal 2013 (2012: $26.1 million). | |||||||
(2) | Includes internally and externally developed software of $75.5 million, at cost, as at December 29, 2013 (2012: $71.9 million) with a net book value of $24.9 million as at December 29, 2013 (2012: $26.8 million). | |||||||
(3) | Consists primarily of menu board equipment. |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Schedule of Other Assets | ' | |||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Bearer deposit notes(1) | $ | 41,403 | $ | 41,403 | ||||
Tax deposits(2) | 36,532 | — | ||||||
TRS contracts(1) | 21,393 | 7,504 | ||||||
Rent leveling | 5,419 | 5,240 | ||||||
Intangible assets(3) | 494 | 3,674 | ||||||
Other long-term assets | 12,311 | 10,649 | ||||||
Total Other assets | $ | 117,552 | $ | 68,470 | ||||
________________ | ||||||||
-1 | The Company holds these deposit notes as collateral to reduce the carrying cost of the TRS. As a portion of the TRS is unwound, a proportionate share of these notes is also unwound (see note 15). See note 14 for the fair values of these assets. | |||||||
(2) | The Company has made deposits with the CRA and other taxation authorities relating to transfer pricing adjustments related to the Company’s former investment in the Maidstone Bakeries joint venture (see note 7). | |||||||
(3) | Intangible assets consist of certain non-exclusive rights with Kahala Franchising, L.L.C. to use Cold Stone Creamery licenses in the U.S., which are being amortized over their related term. The Company has a master license agreement with Kahala Franchise Corp. to use Cold Stone Creamery licenses in Canada, the remaining balance of which was amortized in December 2013 (see note 3). Previously, the Company had an intangible asset for the use of the name and likeness of Ronald V. Joyce, a former owner of the Company, which was fully amortized in fiscal 2013. Total intangible amortization, which includes the amortization of the master license agreement, was $3.3 million in fiscal 2013 (2012: $1.0 million; 2011: $1.0 million). |
Equity_Investments_Tables
Equity Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Income Statement Information | ' | |||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | January 1, 2012 | ||||||||||
Income Statement Information | ||||||||||||
Revenues | $ | 42,997 | $ | 42,863 | $ | 42,105 | ||||||
Expenses attributable to revenues | $ | (12,074 | ) | $ | (12,902 | ) | $ | (12,712 | ) | |||
Net income | $ | 30,341 | $ | 29,382 | $ | 29,067 | ||||||
Equity income—THI | $ | 15,170 | $ | 14,693 | $ | 14,354 | ||||||
Balance Sheet Information | ' | |||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Balance Sheet Information | ||||||||||||
Current assets | $ | 7,832 | $ | 8,408 | ||||||||
Non-current assets | $ | 82,274 | $ | 86,352 | ||||||||
Current liabilities | $ | 1,432 | $ | 4,010 | ||||||||
Non-current liabilities | $ | 8,206 | $ | 9,138 | ||||||||
Partners’ equity | $ | 80,468 | $ | 81,612 | ||||||||
Equity investment by THI | $ | 40,738 | $ | 41,268 | ||||||||
Accounts_Payable_Accrued_Liabi1
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable | ' | |||||||
Accounts payable | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Accounts payable | $ | 142,131 | $ | 126,312 | ||||
Construction holdbacks and accruals | 57,527 | 31,008 | ||||||
Corporate reorganization accrual (note 2) | 4,856 | 12,442 | ||||||
Total Accounts payable | $ | 204,514 | $ | 169,762 | ||||
Tim Card Obligation and Other | ' | |||||||
Accrued liabilities | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Tim Card obligations | $ | 184,443 | $ | 159,745 | ||||
Salaries and wages | 22,553 | 21,477 | ||||||
Taxes | 14,542 | 8,391 | ||||||
De-branding accruals(1) | 9,538 | — | ||||||
Other accrued liabilities(2) | 42,932 | 38,126 | ||||||
Total Accrued liabilities | $ | 274,008 | $ | 227,739 | ||||
________________ | ||||||||
(1) | Includes accruals related to Cold Stone Creamery de-branding activity in Tim Hortons locations in Canada (see note 3). | |||||||
(2) | Includes accruals for contingent rent, current portion of the Maidstone Bakeries supply contract, deferred revenues, deposits, and various equipment and other accruals. | |||||||
Other Long-Term Liabilities | ' | |||||||
Other long-term liabilities | ||||||||
As at | ||||||||
December 29, 2013 | December 30, 2012 | |||||||
Accrued rent leveling liability | $ | 32,070 | $ | 29,244 | ||||
Stock-based compensation liabilities (note 19) | 25,532 | 17,479 | ||||||
Uncertain tax position liability (note 7) | 24,926 | 28,610 | ||||||
Maidstone Bakeries supply contract deferred liability | 7,799 | 15,352 | ||||||
Other accrued long-term liabilities(1) | 21,763 | 18,929 | ||||||
Total Other long-term liabilities | $ | 112,090 | $ | 109,614 | ||||
________________ | ||||||||
(1) | Includes deferred revenues and various other accruals. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
As at | ||||||||
29-Dec-13 | 30-Dec-12 | |||||||
Senior Unsecured Notes, Series 1, due June 1, 2017 | $ | 301,196 | $ | 301,544 | ||||
Senior Unsecured Notes, Series 2, due December 1, 2023 | 449,892 | — | ||||||
Advertising fund debt | 30,189 | 56,500 | ||||||
Other debt | 69,794 | 60,223 | ||||||
$ | 851,071 | $ | 418,267 | |||||
Less: current portion(1) | (8,051 | ) | (11,947 | ) | ||||
Total Long-term debt | $ | 843,020 | $ | 406,320 | ||||
________________ | ||||||||
(1) | Excludes current portion due under capital leases of $9.7 million as at December 29, 2013 (2012: $8.8 million). | |||||||
Future Maturities for Company's Recorded Debt | ' | |||||||
Future maturities for the Company’s long-term debt, as at December 29, 2013 are shown below: | ||||||||
Long-term debt | ||||||||
2014 | $ | 8,051 | ||||||
2015 | 8,500 | |||||||
2016 | 8,518 | |||||||
2017 | 308,696 | |||||||
2018 | 8,905 | |||||||
Subsequent years | 507,313 | |||||||
Total principal repayments | 849,983 | |||||||
Senior Unsecured Notes - Premium (Discount), net | 1,088 | |||||||
Total | $ | 851,071 | ||||||
Current portion | $ | 8,051 | ||||||
Long-term portion | $ | 843,020 | ||||||
Fair_Values_Tables
Fair Values (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 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 | ||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||
Fair value | Fair value | Fair value | Fair value | |||||||||||||||||
hierarchy | asset (liability)(1) | hierarchy | asset (liability)(1) | |||||||||||||||||
Derivatives | ||||||||||||||||||||
Forward currency contracts(2) | Level 2 | $ | 4,181 | Level 2 | $ | (2,014 | ) | |||||||||||||
Interest rate swap(3) | Level 2 | (49 | ) | n/a | — | |||||||||||||||
Interest rate forwards(4) | Level 2 | 285 | n/a | — | ||||||||||||||||
Total return swaps (“TRS”)(5) | Level 2 | 21,393 | Level 2 | 7,504 | ||||||||||||||||
Total Derivatives | $ | 25,810 | $ | 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 of interest rate swaps is estimated using discounted cash flows and market-based observable inputs, including interest rate yield curves and discount rates. | |||||||||||||||||||
(4) | The fair value of interest rate forwards is determined 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 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 Consolidated Balance Sheet: | ||||||||||||||||||||
As at | ||||||||||||||||||||
December 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 | $ | 9,114 | $ | 9,114 | Level 3 | $ | 8,777 | $ | 8,777 | ||||||||||
Series 1 Notes(3) | Level 2 | $ | (315,519 | ) | $ | (301,196 | ) | Level 2 | $ | (325,857 | ) | $ | (301,544 | ) | ||||||
Series 2 Notes(3) | Level 2 | $ | (445,419 | ) | $ | (449,892 | ) | n/a | $ | — | $ | — | ||||||||
Advertising fund term debt(4) | Level 3 | $ | (30,189 | ) | $ | (30,189 | ) | Level 3 | $ | (56,500 | ) | $ | (56,500 | ) | ||||||
Other debt(5) | Level 3 | $ | (126,548 | ) | $ | (69,794 | ) | 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, net, 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) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Summary of Fair Value of Derivative Instruments on Consolidated Balance Sheet | ' | |||||||||||||||||||||||||||
As at | ||||||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||||||
Asset | Liability | Net | Classification on | Asset | Liability | Net | Classification on | |||||||||||||||||||||
asset | Consolidated | asset | Consolidated | |||||||||||||||||||||||||
(liability) | Balance Sheet | (liability) | Balance Sheet | |||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments | ||||||||||||||||||||||||||||
Forward currency contracts(1) | $ | 4,181 | $ | — | $ | 4,181 | Accounts receivable, net | $ | 494 | $ | (2,315 | ) | $ | (1,821 | ) | Accounts payable, net | ||||||||||||
Interest rate swap(2) | $ | — | $ | (49 | ) | $ | (49 | ) | Other long term liabilities | $ | — | $ | — | $ | — | n/a | ||||||||||||
Interest rate forwards(3) | $ | 285 | $ | — | $ | 285 | Accounts receivable, net | $ | — | $ | — | $ | — | n/a | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||
TRS(4) | $ | 21,393 | $ | — | $ | 21,393 | Other assets | $ | 8,614 | $ | (1,110 | ) | $ | 7,504 | Other assets | |||||||||||||
Forward currency contracts(1) | $ | — | $ | — | $ | — | n/a | $ | 5 | $ | (198 | ) | $ | (193 | ) | Accounts payable, net | ||||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Notional value as at December 29, 2013 of $154.0 million (December 30, 2012: $195.1 million), with maturities ranging between January 2014 and December 2014; no associated cash collateral. | |||||||||||||||||||||||||||
(2) | Notional value as at December 29, 2013 of $30.0 million (December 30, 2012: nil), with maturities through fiscal 2019; no associated cash collateral. | |||||||||||||||||||||||||||
(3) | Notional value as at December 29, 2013 of $90.0 million (December 30, 2012: nil), maturing in April 2014; no associated cash collateral. Subsequent to fiscal 2013 year-end, the Company entered into additional interest rate forwards with a notional value of $360.0 million, maturing in April 2014. | |||||||||||||||||||||||||||
(4) | The notional value and associated cash collateral, in the form of bearer deposit notes (see note 10), was $41.4 million as at December 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 | ' | |||||||||||||||||||||||||||
Year-ended December 29, 2013 | Year-ended December 30, 2012 | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments(1) | Classification on | Amount of | Amount of net | Total effect | Amount of | Amount of net | Total effect | |||||||||||||||||||||
Consolidated | gain (loss) | (gain) loss | on OCI(2) | gain (loss) | (gain) loss | on OCI(2) | ||||||||||||||||||||||
Statement of | recognized | reclassified | recognized | reclassified | ||||||||||||||||||||||||
Operations | in OCI(2) | to earnings | in OCI(2) | to earnings | ||||||||||||||||||||||||
Forward currency contracts | Cost of sales | $ | 9,971 | $ | (3,969 | ) | $ | 6,002 | $ | (5,009 | ) | $ | (667 | ) | $ | (5,676 | ) | |||||||||||
Interest rate swap(3) | Interest (expense) | (242 | ) | 193 | (49 | ) | — | — | — | |||||||||||||||||||
Interest rate forwards(4) | Interest (expense) | (9,555 | ) | 774 | (8,781 | ) | — | 691 | 691 | |||||||||||||||||||
Total | 174 | (3,002 | ) | (2,828 | ) | (5,009 | ) | 24 | (4,985 | ) | ||||||||||||||||||
Income tax effect | Income taxes | (2,581 | ) | 1,002 | (1,579 | ) | 1,455 | (13 | ) | 1,442 | ||||||||||||||||||
Net of income taxes | $ | (2,407 | ) | $ | (2,000 | ) | $ | (4,407 | ) | $ | (3,554 | ) | $ | 11 | $ | (3,543 | ) | |||||||||||
________________ | ||||||||||||||||||||||||||||
(1) | Excludes amounts related to ineffectiveness, as they were not significant. | |||||||||||||||||||||||||||
(2) | Other comprehensive income (“OCI”). | |||||||||||||||||||||||||||
(3) | The Ad Fund entered into an amortizing interest rate swap to fix a portion of the interest expense on its term debt (see note 13). | |||||||||||||||||||||||||||
(4) | The Company entered into and settled interest rate forwards relating to the Series 1 and Series 2 Notes (see note 13). The Company also entered into interest rate forwards during fiscal 2013 in anticipation of the Company obtaining longer-term financing for the remaining portion of the approved increase in the first half of 2014, barring unforeseen market conditions and subject to the negotiation and execution of agreements. | |||||||||||||||||||||||||||
Summary of (Gain) Loss on Derivatives Not Designated as Hedging Instruments | ' | |||||||||||||||||||||||||||
Derivatives not designated as cash flow hedging instruments | Classification on Consolidated | Year-ended | ||||||||||||||||||||||||||
Statement of Operations | December 29, 2013 | December 30, 2012 | January 1, 2012 | |||||||||||||||||||||||||
TRS | General and administrative expenses | $ | (13,889 | ) | $ | 1,782 | $ | (5,033 | ) | |||||||||||||||||||
Forward currency contracts | Cost of sales | (193 | ) | 1,097 | (904 | ) | ||||||||||||||||||||||
Total (gain) loss, net | $ | (14,082 | ) | $ | 2,879 | $ | (5,937 | ) | ||||||||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Assets Leased Under Capital Leases | ' | |||||||||||
Assets leased under capital leases and included in property and equipment, but excluding leasehold improvements, consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Buildings | $ | 220,933 | $ | 197,438 | ||||||||
Other(1) | 13,039 | 9,083 | ||||||||||
Accumulated depreciation | (75,437 | ) | (67,721 | ) | ||||||||
Total | $ | 158,535 | $ | 138,800 | ||||||||
________________ | ||||||||||||
(1)Includes capital leases of the Ad Fund (see note 20). | ||||||||||||
Future Minimum Lease Payments and Present Value of Net Minimum Lease Payments | ' | |||||||||||
No individual lease is material to the Company. Future minimum lease payments for all leases, and the present value of the net minimum lease payments for all capital leases as at December 29, 2013, were as follows: | ||||||||||||
Capital Leases | Operating Leases | |||||||||||
2014 | $ | 21,690 | $ | 102,643 | ||||||||
2015 | 25,723 | 103,784 | ||||||||||
2016 | 18,879 | 90,370 | ||||||||||
2017 | 15,906 | 77,996 | ||||||||||
2018 | 16,270 | 77,764 | ||||||||||
Subsequent years | 142,299 | 599,185 | ||||||||||
Total minimum lease payments(1) | $ | 240,767 | $ | 1,051,742 | ||||||||
Amount representing interest | (109,987 | ) | ||||||||||
Present value of net minimum lease payments | 130,780 | |||||||||||
Current portion | (9,731 | ) | ||||||||||
$ | 121,049 | |||||||||||
________________ | ||||||||||||
-1 | Of the total future minimum lease obligations noted above, the Company has minimum lease receipts under non-cancelable subleases with lessees of $148.0 million for capital leases and $534.0 million for operating leases. | |||||||||||
Rent Expense Included in Operating Expenses | ' | |||||||||||
Rent expense consists of rentals for premises and equipment leases, and was as follows: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Minimum rents | $ | 106,303 | $ | 96,482 | $ | 89,329 | ||||||
Contingent rents | 77,892 | 77,842 | 74,549 | |||||||||
Total rent expense(1) | $ | 184,195 | $ | 174,324 | $ | 163,878 | ||||||
________________ | ||||||||||||
(1) | Included in Operating expenses in the Consolidated Statement of Operations. | |||||||||||
Company Assets under Lease or Sublease Included in Property and Equipment | ' | |||||||||||
Company assets under lease or sublease, included in Property and equipment, net in the Consolidated Balance Sheet, consisted of the following: | ||||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Land | $ | 189,301 | $ | 180,073 | ||||||||
Buildings and leasehold improvements | 1,474,802 | 1,318,194 | ||||||||||
Restaurant equipment | 82,406 | 70,645 | ||||||||||
1,746,509 | 1,568,912 | |||||||||||
Accumulated depreciation | (690,246 | ) | (604,703 | ) | ||||||||
$ | 1,056,263 | $ | 964,209 | |||||||||
Future Minimum Lease Receipts | ' | |||||||||||
At December 29, 2013, future minimum lease receipts, excluding any contingent rent, were as follows: | ||||||||||||
Operating Leases | ||||||||||||
2014 | $ | 231,307 | ||||||||||
2015 | 202,577 | |||||||||||
2016 | 165,973 | |||||||||||
2017 | 136,856 | |||||||||||
2018 | 107,201 | |||||||||||
Subsequent years | 237,211 | |||||||||||
Total | $ | 1,081,125 | ||||||||||
Rental Income Included Rents and Royalties | ' | |||||||||||
Rental income for each year amounted to the following: | ||||||||||||
Year-ended | ||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||
Minimum rents | $ | 314,865 | $ | 300,021 | $ | 291,557 | ||||||
Contingent rents | 264,820 | 257,594 | 242,101 | |||||||||
Total rental income(1) | $ | 579,685 | $ | 557,615 | $ | 533,658 | ||||||
________________ | ||||||||||||
(1) | Included in Rents and royalties revenues in the Consolidated Statement of Operations. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 29, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock Based Compensation Expenses Included in General and Administrative Expenses | ' | |||||||||||||
Year-ended | ||||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||||
Restricted stock units | $ | 6,522 | $ | 9,537 | $ | 6,247 | ||||||||
Stock options and tandem SARs | 12,745 | 1,599 | 9,055 | |||||||||||
Deferred stock units | 2,722 | 726 | 2,021 | |||||||||||
Total stock-based compensation expense(1)(2) | $ | 21,989 | $ | 11,862 | $ | 17,323 | ||||||||
________________ | ||||||||||||||
(1) | Generally included in General and administrative expenses in the Consolidated Statement of Operations. | |||||||||||||
(2) | The Company does not receive a significant income tax benefit associated with stock-based compensation expense, primarily because the Company has made an election to forego its corporate tax deduction in Canada to enable Canadian employees to receive favourable tax treatment on an exercise of the SAR feature. | |||||||||||||
Summary of Restricted Stock Units Activity | ' | |||||||||||||
Restricted stock units | ||||||||||||||
Restricted Stock | Weighted Average | Total Intrinsic Value | Weighted Average Remaining Contractual Life | |||||||||||
Units | Grant Date Fair Value per Unit | |||||||||||||
(in thousands) | (in dollars) | (in thousands) | ||||||||||||
Balance as at December 30, 2012 | 312 | $ | 50.91 | $ | 15,147 | 1.5 | ||||||||
Granted(1) | 160 | 56.73 | ||||||||||||
Dividend equivalent rights | 7 | 56.4 | ||||||||||||
Vested and settled(2) | (150 | ) | 47.56 | |||||||||||
Forfeited | (22 | ) | 52.29 | |||||||||||
Balance as at December 29, 2013(3) | 307 | $ | 55.6 | $ | 19,119 | 1.4 | ||||||||
________________ | ||||||||||||||
(1) | The weighted average grant date fair value per RSU granted in fiscal 2012 was $54.49 (2011: $45.76). | |||||||||||||
(2) | Total total fair value of RSUs that vested and were settled in fiscal 2013 was $9.1 million (2012: $7.7 million, 2011: $6.8 million). RSUs are generally settled with common shares from the Trust. | |||||||||||||
(3) | Total unrecognized compensation cost related to non-vested RSUs outstanding was $6.0 million (2012: $4.6 million) and is expected to be recognized over a weighted-average period of 1.4 years (2012: 1.5 years). The Company expects substantially all of the outstanding RSUs to vest. | |||||||||||||
Summary Of DSU Activity | ' | |||||||||||||
Deferred stock units | ||||||||||||||
Deferred Stock | Weighted Average | |||||||||||||
Units | Grant Date Fair Value per Unit | |||||||||||||
(in thousands) | (in dollars) | |||||||||||||
Balance as at December 30, 2012 | 138 | $ | 37.56 | |||||||||||
Granted(1) | 11 | 57.59 | ||||||||||||
Dividend equivalent rights | 3 | 57.02 | ||||||||||||
Settled(2) | (11 | ) | 37.41 | |||||||||||
Balance as at December 29, 2013(3) | 141 | $ | 39.57 | |||||||||||
________________ | ||||||||||||||
(1) | The weighted average grant date fair value per DSU granted in fiscal 2012 was $51.07 (2011: $46.13). | |||||||||||||
(2) | Total cash settlement of $0.4 million of DSUs was made in fiscal 2013 (2012: $0.4 million; 2011: nil). | |||||||||||||
(3) | Total fair value liability for DSUs was $8.8 million (2012: $6.7 million) and is included in Other long-term liabilities in the Consolidated Balance Sheet. | |||||||||||||
Stock Option with Tandem SAR Awards Granted to Officers | ' | |||||||||||||
Stock options and tandem stock appreciation rights | ||||||||||||||
Stock Options with | Weighted Average | Total Intrinsic Value | Weighted Average Remaining Contractual Life | |||||||||||
SARs | Exercise Price | |||||||||||||
(in thousands) | (in dollars) | (in dollars) | (in years) | |||||||||||
Balance as at December 30, 2012 | 1,172 | $ | 40.73 | $ | 10,681 | 4.7 | ||||||||
Granted | 367 | 57.91 | ||||||||||||
Exercised(1)(2) | (329 | ) | 36.14 | |||||||||||
Forfeited | (14 | ) | 53.47 | |||||||||||
Balance as at December 30, 2013(3)(4)(5) | 1,196 | $ | 47.11 | $ | 18,150 | 4.6 | ||||||||
Total stock options/SARs exercisable as at December 29, 2013 | 574 | $ | 38.39 | $ | 13,713 | 3.4 | ||||||||
________________ | ||||||||||||||
(1) | Total cash settlement of $6.9 million of SARs was made in fiscal 2013 (2012: $4.2 million; 2011: $3.7 million). The associated options were cancelled. | |||||||||||||
(2) | The total intrinsic value of stock options exercised in fiscal 2013 was $6.9 million (2012: $3.7 million; 2011: $4.2 million). | |||||||||||||
(3) | Total fair value liability for stock options/SARs outstanding was $16.7 million (2012: $10.8 million) and is included in Other long-term liabilities in the Consolidated Balance Sheet. | |||||||||||||
(4) | A total of 0.3 million stock options/SARs vested in fiscal 2013 (2012: 0.4 million, 2011: 0.4 million), with an intrinsic value of $5.6 million (2012: $5.3 million, 2011: $6.5 million). | |||||||||||||
(5) | Total unrecognized compensation cost related to non-vested stock options outstanding was $3.3 million (2012: $1.4 million) and is expected to be recognized over a weighted-average period of 1.6 years (2012: 1.5 years). The Company expects substantially all of the outstanding stock options with tandem SARs to vest. | |||||||||||||
Schedule Of Assumptions Used To Calculate Fair Value Of Outstanding Stock Options And Stock Appreciation Rights Table [Text Block] | ' | |||||||||||||
The fair value of these awards was determined at the grant date and each subsequent re-measurement date by applying the Black-Scholes-Merton option-pricing model, using the following assumptions: | ||||||||||||||
Year-ended | ||||||||||||||
29-Dec-13 | 30-Dec-12 | 1-Jan-12 | ||||||||||||
Expected share price volatility(1) | 13% - 17% | 9% – 20% | 16% – 22% | |||||||||||
Risk-free interest rate(2) | 1.1% - 1.6% | 1.1% – 1.3% | 1.0% – 1.1% | |||||||||||
Expected life(3) | 0.5 – 4.0 years | 1.0 – 4.0 years | 1.7 – 3.9 years | |||||||||||
Expected dividend yield(4) | 1.70% | 1.80% | 1.40% | |||||||||||
Closing share price (in dollars)(5) | $62.29 | $48.51 | $49.36 | |||||||||||
Weighted average grant price | $57.91 | $54.86 | $45.76 | |||||||||||
________________ | ||||||||||||||
(1) | Estimated by using the Company’s historical share price volatility for a period similar to the expected life of the option as determined below. | |||||||||||||
(2) | Referenced from Government of Canada bonds with a maturity period similar to the expected life of the options. If an exact match in maturity was not found, the closest two maturities, one before and one after the expected life of the options, were used to extrapolate an estimated risk-free rate. | |||||||||||||
(3) | Based on historical experience. | |||||||||||||
(4) | Based on current, approved dividends expressed as a percentage of either the exercise price or the closing price at the end of the period, depending on the date of the assumption. | |||||||||||||
(5) | The closing share price is quoted from the TSX as of the last trading day preceding the date specified. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Consolidated Non-owned Restaurants [Table Text Block] | ' | |||||||||||||||||||||||
Non-owned restaurants | ||||||||||||||||||||||||
As at | ||||||||||||||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||||||||||||||
Restaurants | % of Systemwide Restaurants | Restaurants | % of Systemwide Restaurants | |||||||||||||||||||||
Consolidated Non-owned restaurants | 331 | 7.4 | % | 365 | 8.6 | % | ||||||||||||||||||
Schedule of Advertising Expenses | ' | |||||||||||||||||||||||
The advertising funds’ expenditures are set forth in the table below: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||
Advertising expenses | $ | 255,056 | $ | 230,317 | $ | 214,989 | ||||||||||||||||||
Summary of Contributions to the Canadian and U.S. Advertising Funds | ' | |||||||||||||||||||||||
Company contributions to the Canadian and U.S. advertising funds were as follows: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||||||||||||||
Company contributions | $ | 10,800 | $ | 10,813 | $ | 10,487 | ||||||||||||||||||
Contributions from consolidated non-owned restaurants | 13,801 | 12,545 | 10,466 | |||||||||||||||||||||
Total Company contributions | $ | 24,601 | $ | 23,358 | $ | 20,953 | ||||||||||||||||||
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: | ||||||||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
29-Dec-13 | ||||||||||||||||||||||||
Restaurant | Advertising | Total | ||||||||||||||||||||||
VIEs(1) | fund VIEs(2) | VIEs | ||||||||||||||||||||||
Sales | $ | 369,850 | $ | — | $ | 369,850 | ||||||||||||||||||
Advertising levies | — | 10,711 | 10,711 | |||||||||||||||||||||
Total revenues | 369,850 | 10,711 | 380,561 | |||||||||||||||||||||
Cost of sales | 364,260 | — | 364,260 | |||||||||||||||||||||
Operating expenses | — | 9,269 | 9,269 | |||||||||||||||||||||
Asset impairment(3) | 441 | — | 441 | |||||||||||||||||||||
Operating income | 5,149 | 1,442 | 6,591 | |||||||||||||||||||||
Interest expense | — | 1,442 | 1,442 | |||||||||||||||||||||
Income before taxes | 5,149 | — | 5,149 | |||||||||||||||||||||
Income taxes | 869 | — | 869 | |||||||||||||||||||||
Net income attributable to non controlling interests | $ | 4,280 | $ | — | $ | 4,280 | ||||||||||||||||||
Year-ended | ||||||||||||||||||||||||
30-Dec-12 | 1-Jan-12 | |||||||||||||||||||||||
Restaurant | Advertising | Total | Restaurant | Advertising | Total | |||||||||||||||||||
VIEs(1) | fund VIEs(2) | VIEs | VIEs(1) | fund VIEs(2) | VIEs | |||||||||||||||||||
Sales | $ | 338,005 | $ | — | $ | 338,005 | $ | 282,384 | $ | — | $ | 282,384 | ||||||||||||
Advertising levies | — | 5,624 | 5,624 | — | 634 | 634 | ||||||||||||||||||
Total revenues | 338,005 | 5,624 | 343,629 | 282,384 | 634 | 283,018 | ||||||||||||||||||
Cost of sales | 332,151 | — | 332,151 | 277,953 | — | 277,953 | ||||||||||||||||||
Operating expenses | — | 4,602 | 4,602 | — | 634 | 634 | ||||||||||||||||||
Asset impairment | — | — | — | 900 | — | 900 | ||||||||||||||||||
Operating income | 5,854 | 1,022 | 6,876 | 3,531 | — | 3,531 | ||||||||||||||||||
Interest expense | — | 1,022 | 1,022 | 138 | — | 138 | ||||||||||||||||||
Income before taxes | 5,854 | — | 5,854 | 3,393 | — | 3,393 | ||||||||||||||||||
Income taxes | 973 | — | 973 | 457 | — | 457 | ||||||||||||||||||
Net income attributable to non controlling interests | $ | 4,881 | $ | — | $ | 4,881 | $ | 2,936 | $ | — | $ | 2,936 | ||||||||||||
________________ | ||||||||||||||||||||||||
(1) | Includes rents, royalties, advertising expenses and product purchases from the Company which are eliminated upon the consolidation of these VIEs. | |||||||||||||||||||||||
(2) | 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. | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | |||||||||||||||||||||
VIEs | fund VIEs | VIEs | fund VIEs | |||||||||||||||||||||
Cash and cash equivalents | $ | 7,773 | $ | — | $ | 10,851 | $ | — | ||||||||||||||||
Advertising fund restricted assets – current | — | 39,783 | — | 45,337 | ||||||||||||||||||||
Other current assets | 7,155 | — | 6,770 | — | ||||||||||||||||||||
Property and equipment, net | 20,471 | 70,485 | 19,536 | 57,925 | ||||||||||||||||||||
Other long-term assets | 370 | 1,271 | 572 | 2,095 | ||||||||||||||||||||
Total assets | $ | 35,769 | $ | 111,539 | $ | 37,729 | $ | 105,357 | ||||||||||||||||
Notes payable to Tim Hortons Inc. – current(1)(2) | $ | 13,689 | $ | 3,040 | $ | 13,637 | $ | — | ||||||||||||||||
Advertising fund liabilities – current | — | 59,913 | — | 44,893 | ||||||||||||||||||||
Other current liabilities(3) | 11,706 | 5,253 | 14,548 | 9,919 | ||||||||||||||||||||
Notes payable to Tim Hortons Inc. – long-term(1)(2) | 628 | 15,200 | 804 | — | ||||||||||||||||||||
Long-term debt(3) | — | 25,157 | — | 46,849 | ||||||||||||||||||||
Other long-term liabilities | 9,381 | 2,976 | 5,887 | 3,696 | ||||||||||||||||||||
Total liabilities | 35,404 | 111,539 | 34,876 | 105,357 | ||||||||||||||||||||
Equity of VIEs | 365 | — | 2,853 | — | ||||||||||||||||||||
Total liabilities and equity | $ | 35,769 | $ | 111,539 | $ | 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 Consolidated Balance Sheet (see note 6). | |||||||||||||||||||||||
(2) | In fiscal 2013, the Ad Fund entered into an agreement with a Company subsidiary for the Tim Card Revolving Credit Facility and the Tim Card Loan, which are funded by the Restricted cash and cash equivalents related to our Tim Card program. These balances are eliminated upon consolidation of the Ad Fund. | |||||||||||||||||||||||
(3) | Includes $30.2 million of debt with a Canadian financial institution relating to the Expanded Menu Board Program (December 30, 2012: $56.5 million), of which $5.0 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) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Information on Reportable Segments | ' | |||||||||||
The Company has reclassified the segment data for prior years to conform to the current year’s presentation. | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Revenues(1) | ||||||||||||
Canada | $ | 2,660,358 | $ | 2,595,921 | $ | 2,403,002 | ||||||
U.S. | 197,226 | 165,723 | 156,291 | |||||||||
Corporate services | 17,388 | 15,231 | 10,655 | |||||||||
Total reportable segments | 2,874,972 | 2,776,875 | 2,569,948 | |||||||||
VIEs | 380,561 | 343,629 | 283,018 | |||||||||
Total | $ | 3,255,533 | $ | 3,120,504 | $ | 2,852,966 | ||||||
Operating Income (Loss) | ||||||||||||
Canada | $ | 665,675 | $ | 653,916 | $ | 625,139 | ||||||
U.S.(2) | 5,107 | 9,620 | 8,897 | |||||||||
Corporate services | (44,517 | ) | (57,013 | ) | (68,281 | ) | ||||||
Total reportable segments | 626,265 | 606,523 | 565,755 | |||||||||
VIEs(2) | 6,591 | 6,876 | 3,720 | |||||||||
Corporate reorganization expenses | (11,761 | ) | (18,874 | ) | — | |||||||
Consolidated Operating Income | 621,095 | 594,525 | 569,475 | |||||||||
Interest, net | (35,466 | ) | (30,413 | ) | (25,873 | ) | ||||||
Income before income taxes | $ | 585,629 | $ | 564,112 | $ | 543,602 | ||||||
________________ | ||||||||||||
(1) | There are no inter-segment revenues included in the above table. | |||||||||||
(2) | In fiscal 2013, the Company recognized an asset impairment charge in the U.S. related to certain non-core and non-priority markets, of which $2.5 million was recognized in the U.S. segment and $0.4 million related to consolidated VIEs. In fiscal 2012, the Company recognized a recovery of $0.4 million representing the final reversal of accruals upon the completion of closure activities in certain markets in New England in the U.S. segment. In fiscal 2011, the Company recognized an asset impairment charge related to under-performing restaurants in the Company’s Portland market, of which a recovery of $0.5 million was recognized in the U.S. segment and $0.9 million related to consolidated VIEs. Impairment charges reflect real estate and equipment fair values less costs to sell. | |||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Capital expenditures | ||||||||||||
Canada(1) | $ | 153,877 | $ | 113,546 | $ | 95,343 | ||||||
U.S. | 49,757 | 59,998 | 38,554 | |||||||||
Corporate services | 17,366 | 13,233 | 42,993 | |||||||||
Total reportable segments | $ | 221,000 | $ | 186,777 | $ | 176,890 | ||||||
______________ | ||||||||||||
(1) Excludes capital expenditures of the Ad Fund. | ||||||||||||
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 | ||||||||||||
December 29, 2013 | December 30, 2012 | |||||||||||
Total Property and equipment, net | ||||||||||||
Canada(1) | $ | 1,008,141 | $ | 915,733 | ||||||||
U.S.(1) | 413,928 | 378,457 | ||||||||||
Corporate services(2) | 175,804 | 184,938 | ||||||||||
Total reportable segments | 1,597,873 | 1,479,128 | ||||||||||
VIEs | 87,170 | 74,180 | ||||||||||
Consolidated Property and equipment, net | $ | 1,685,043 | $ | 1,553,308 | ||||||||
Total Assets | ||||||||||||
Canada | $ | 1,300,220 | $ | 1,175,552 | ||||||||
U.S. | 450,377 | 400,231 | ||||||||||
Corporate services | 272,330 | 281,043 | ||||||||||
Total reportable segments | 2,022,927 | 1,856,826 | ||||||||||
VIEs | 143,301 | 139,462 | ||||||||||
Unallocated assets(3) | 267,595 | 287,891 | ||||||||||
Consolidated Total assets | $ | 2,433,823 | $ | 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, substantially all of which is located in Canada. | |||||||||||
(3) | Includes Cash and cash equivalents, Restricted cash and cash equivalents, Deferred income taxes, Tax deposits and Prepaids, except as related to VIEs. | |||||||||||
Consolidated Sales and Cost of Sales Information | ' | |||||||||||
Significant non-cash items included in reportable segment operating income and reconciled to total consolidated amounts are as follows: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Depreciation and amortization | ||||||||||||
Canada | $ | 100,567 | $ | 84,724 | $ | 74,962 | ||||||
U.S. | 33,853 | 23,837 | 20,488 | |||||||||
Corporate services | 15,655 | 17,254 | 17,602 | |||||||||
Total reportable segments | $ | 150,075 | $ | 125,815 | $ | 113,052 | ||||||
VIEs | $ | 11,734 | $ | 6,352 | $ | 2,817 | ||||||
Consolidated depreciation and amortization | $ | 161,809 | $ | 132,167 | $ | 115,869 | ||||||
Consolidated Sales and Cost of sales were as follows: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Sales | ||||||||||||
Distribution sales | $ | 1,872,296 | $ | 1,860,683 | $ | 1,705,692 | ||||||
Company-operated restaurant sales | 23,738 | 26,970 | 24,094 | |||||||||
Sales from VIEs | 369,850 | 338,006 | 282,384 | |||||||||
Total Sales | $ | 2,265,884 | $ | 2,225,659 | $ | 2,012,170 | ||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Cost of sales | ||||||||||||
Distribution cost of sales | $ | 1,619,858 | $ | 1,631,091 | $ | 1,501,503 | ||||||
Company-operated restaurant cost of sales | 25,446 | 28,857 | 24,720 | |||||||||
Cost of sales from VIEs | 327,599 | 297,390 | 246,152 | |||||||||
Total Cost of sales | $ | 1,972,903 | $ | 1,957,338 | $ | 1,772,375 | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Schedule of Related Party Transactions | ' | |||||||||||
The Company had the following expenses and outstanding balances associated with its 50/50 joint venture with Wendy’s: | ||||||||||||
Year-ended | ||||||||||||
December 29, 2013 | December 30, 2012 | January 1, 2012 | ||||||||||
Contingent rent expense(1) | $ | 25,329 | $ | 25,102 | $ | 24,677 | ||||||
________________ | ||||||||||||
-1 | Included in consolidated contingent rent expense (see note 16). | |||||||||||
As at | ||||||||||||
29-Dec-13 | 30-Dec-12 | |||||||||||
Accounts receivable | $ | 254 | $ | 311 | ||||||||
Accounts payable | $ | 1,972 | $ | 2,048 | ||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
2013 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 523,887 | $ | 568,562 | $ | 575,780 | $ | 597,655 | ||||||||
Franchise revenues | ||||||||||||||||
Rents and royalties | 187,454 | 209,289 | 212,114 | 212,364 | ||||||||||||
Franchise fees | 20,196 | 22,288 | 37,459 | 88,485 | ||||||||||||
207,650 | 231,577 | 249,573 | 300,849 | |||||||||||||
Total revenues | 731,537 | 800,139 | 825,353 | 898,504 | ||||||||||||
Corporate reorganization expense (note 2) | (9,475 | ) | (604 | ) | (953 | ) | (729 | ) | ||||||||
De-branding costs (note 3) | — | — | — | (19,016 | ) | |||||||||||
Other costs and expenses, net | (594,145 | ) | (622,956 | ) | (655,572 | ) | (730,988 | ) | ||||||||
Operating income | $ | 127,917 | $ | 176,579 | $ | 168,828 | $ | 147,771 | ||||||||
Net income attributable to Tim Hortons Inc. | $ | 86,171 | $ | 123,736 | $ | 113,863 | $ | 100,599 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.56 | $ | 0.81 | $ | 0.75 | $ | 0.69 | ||||||||
2012 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
Revenues | ||||||||||||||||
Sales | $ | 523,302 | $ | 563,772 | $ | 568,541 | $ | 570,044 | ||||||||
Franchise revenues | ||||||||||||||||
Rents and royalties | 180,186 | 198,973 | 201,556 | 200,277 | ||||||||||||
Franchise fees | 17,796 | 22,836 | 31,943 | 41,278 | ||||||||||||
197,982 | 221,809 | 233,499 | 241,555 | |||||||||||||
Total revenues | 721,284 | 785,581 | 802,040 | 811,599 | ||||||||||||
Corporate reorganization expense (note 2) | — | (1,277 | ) | (8,565 | ) | (9,032 | ) | |||||||||
Other costs and expenses, net | (589,661 | ) | (625,465 | ) | (639,816 | ) | (652,163 | ) | ||||||||
Operating income | $ | 131,623 | $ | 158,839 | $ | 153,659 | $ | 150,404 | ||||||||
Net income attributable to Tim Hortons Inc. | $ | 88,779 | $ | 108,067 | $ | 105,698 | $ | 100,341 | ||||||||
Diluted earnings per common share attributable to Tim Hortons Inc. | $ | 0.56 | $ | 0.69 | $ | 0.68 | $ | 0.65 | ||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Additional Information) (Detail) | 12 Months Ended | 12 Months Ended | |||||
Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | |
Republic Of Ireland And United Kingdom | Republic Of Ireland And United Kingdom | Republic Of Ireland And United Kingdom | Wendy's | TRS | Maximum | ||
Store | Store | Store | Restricted Stock Units (RSUs) | ||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 50.00% | ' | ' |
Excluded licensed locations from systemwide restaurant progression | ' | 255 | 245 | 261 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | '30 months |
Cash Equivalents Maturity Period, in months | '3 months | ' | ' | ' | ' | ' | ' |
Terms Of Investments, in years | ' | ' | ' | ' | ' | '7 years | ' |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Franchised Locations and System Activity) (Detail) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Store | Store | Store | |
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' |
Restaurants in operation - end of period | 4,485 | 4,264 | 4,014 |
% of restaurants franchised b end of period | 99.60% | 99.50% | 99.60% |
Franchised | ' | ' | ' |
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' |
Restaurants in operation b beginning of period | 4,242 | 3,996 | 3,730 |
Restaurants opened | 258 | 271 | 294 |
Restaurants closed | -39 | -26 | -29 |
Net transfers within the franchised system | 8 | 1 | 1 |
Restaurants in operation - end of period | 4,469 | 4,242 | 3,996 |
Company Operated | ' | ' | ' |
Systemwide Restaurant Count [Roll Forward] | ' | ' | ' |
Restaurants in operation - end of period | 16 | 22 | 18 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Estimated Useful Lives) (Detail) | 12 Months Ended |
Dec. 29, 2013 | |
Building and leasehold improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '10 years |
Building and leasehold improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '40 years |
Restaurant and other equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '7 years |
Restaurant and other equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '16 years |
Capital leases | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '8 years |
Capital leases | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '40 years |
Computer hardware and software | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '3 years |
Computer hardware and software | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '10 years |
Advertising fund property and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '3 years |
Advertising fund property and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '10 years |
Manufacturing and other equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '4 years |
Manufacturing and other equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful Life | '30 years |
Construction in progress | ' |
Property, Plant and Equipment [Line Items] | ' |
Property Plan And Equipment Useful Life Description | 'Reclassified to above categories when put in use |
Corporate_Reorganization_Expen2
Corporate Reorganization Expenses (Additional Information) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' |
Restructuring accruals | 5,646 | 13,230 |
Retention Agreement | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' |
Restructuring accruals | 2,800 | 500 |
Corporate_Reorganization_Expen3
Corporate Reorganization Expenses (Summary of Expenses Related to Reorganization) (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate reorganization expenses | 729 | 953 | 604 | 9,475 | 9,032 | 8,565 | 1,277 | 0 | 11,761 | 18,874 | 0 |
Termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate reorganization expenses | ' | ' | ' | ' | ' | ' | ' | ' | 6,342 | 9,016 | 0 |
Professional fees and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate reorganization expenses | ' | ' | ' | ' | ' | ' | ' | ' | 2,349 | 7,602 | 0 |
CEO transition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate Reorganization Costs And Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate reorganization expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,070 | 2,256 | 0 |
Summary_of_Accruals_Related_to
(Summary of Accruals Related to Retention Agreements) (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred during the period | 729 | 953 | 604 | 9,475 | 9,032 | 8,565 | 1,277 | 0 | 11,761 | 18,874 | 0 |
Paid during the period | ' | ' | ' | ' | ' | ' | ' | ' | -19,345 | -5,644 | ' |
Accrued as at end of period | 5,646 | ' | ' | ' | 13,230 | ' | ' | ' | 5,646 | 13,230 | ' |
Termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred during the period | ' | ' | ' | ' | ' | ' | ' | ' | 6,342 | 9,016 | 0 |
Paid during the period | ' | ' | ' | ' | ' | ' | ' | ' | -12,932 | -1,458 | ' |
Accrued as at end of period | 968 | ' | ' | ' | 7,558 | ' | ' | ' | 968 | 7,558 | ' |
Professional fees and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred during the period | ' | ' | ' | ' | ' | ' | ' | ' | 2,349 | 7,602 | 0 |
Paid during the period | ' | ' | ' | ' | ' | ' | ' | ' | -5,947 | -3,775 | ' |
Accrued as at end of period | 229 | ' | ' | ' | 3,827 | ' | ' | ' | 229 | 3,827 | ' |
CEO transition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred during the period | ' | ' | ' | ' | ' | ' | ' | ' | 3,070 | 2,256 | 0 |
Paid during the period | ' | ' | ' | ' | ' | ' | ' | ' | -466 | -411 | ' |
Accrued as at end of period | 4,449 | ' | ' | ' | 1,845 | ' | ' | ' | 4,449 | 1,845 | ' |
Corporate_Reorganization_Expen4
Corporate Reorganization Expenses (Summary of Accruals Related to Retention Agreements) (Parenthetical) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring accruals | 5,646 | 13,230 |
Accounts Payable | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring accruals | 4,900 | 12,400 |
Debranding_costs_Details
De-branding costs (Details) (CAD) | 3 Months Ended | 12 Months Ended | |||||
Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Schedule of De-branding Costs [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Payments to restaurant owners | ' | ' | ' | ' | 7,373,000 | 0 | 0 |
Accelerated depreciation and amortization of long-lived assets | ' | ' | ' | ' | 6,827,000 | 0 | 0 |
Inventory write-downs | ' | ' | ' | ' | 2,400,000 | 0 | 0 |
Other related costs | ' | ' | ' | ' | 2,416,000 | 0 | 0 |
De-branding Costs | 19,016,000 | 0 | 0 | 0 | 19,016,000 | 0 | 0 |
Accelerated Amortization of Intangible Assets | 2,400,000 | ' | ' | ' | 3,300,000 | 1,000,000 | 1,000,000 |
Earnings_Per_Common_Share_Attr2
Earnings Per Common Share Attributable to Tim Hortons Inc. (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Tim Hortons Inc. | 100,599 | 113,863 | 123,736 | 86,171 | 100,341 | 105,698 | 108,067 | 88,779 | 424,369 | 402,885 | 382,812 |
Weighted average number of shares outstanding for computation of basic earnings per common share attributable to Tim Hortons Inc. (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | 150,155 | 155,160 | 162,145 |
Dilutive impact of restricted stock units (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | 212 | 217 | 197 |
Dilutive impact of stock options with tandem SARs (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | 255 | 299 | 255 |
Weighted average number of shares outstanding for computation of diluted earnings per common share attributable to Tim Hortons Inc. (in thousands) | ' | ' | ' | ' | ' | ' | ' | ' | 150,622 | 155,676 | 162,597 |
Basic earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | 2.83 | 2.6 | 2.36 |
Diluted earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.69 | 0.75 | 0.81 | 0.56 | 0.65 | 0.68 | 0.69 | 0.56 | 2.82 | 2.59 | 2.35 |
Accounts_Receivable_Net_Schedu
Accounts Receivable, Net (Schedule of Accounts Receivable, Net) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Accounts receivable | 128,530 | 112,522 |
Franchise sales receivable | 27,197 | 2,386 |
Other receivables | 56,602 | 57,942 |
Accounts receivable, gross | 212,329 | 172,850 |
Allowance | -1,665 | -1,245 |
Accounts receivable, net | 210,664 | 171,605 |
Notes_Receivable_Net_Notes_Rec
Notes Receivable, Net (Notes Receivable By Segment) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 10,616 | 10,567 |
Allowance | -1,502 | -1,790 |
Notes receivable, net | 9,114 | 8,777 |
Current portion, net | 4,631 | 7,531 |
Long-term portion, net | 4,483 | 1,246 |
Gross | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 24,933 | 25,008 |
VIEs | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | -14,317 | -14,441 |
FIPs | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 3,009 | 6,736 |
FIPs | Gross | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 16,677 | 20,235 |
FIPs | VIEs | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | -13,668 | -13,499 |
Other notes receivable | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 7,607 | 3,831 |
Other notes receivable | Gross | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | 8,256 | 4,773 |
Other notes receivable | VIEs | ' | ' |
Notes Receivable By Segment [Line Items] | ' | ' |
Notes receivable | -649 | -942 |
Notes_Receivable_Net_Notes_Rec1
Notes Receivable, Net (Notes Receivable By Class and Aging) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 10,616 | 10,567 |
Allowance | -1,502 | -1,790 |
Notes receivable, net | 9,114 | 8,777 |
Current status (FIP notes and other) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 7,607 | 5,700 |
Past-due status less than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 328 | 0 |
Past-due status greater than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 2,681 | 4,867 |
Gross | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 24,933 | 25,008 |
Gross | Current status (FIP notes and other) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 9,688 | 6,969 |
Gross | Past-due status less than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 328 | 407 |
Gross | Past-due status greater than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 14,917 | 17,632 |
VIEs | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | -14,317 | -14,441 |
VIEs | Current status (FIP notes and other) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | -2,081 | -1,269 |
VIEs | Past-due status less than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | 0 | -407 |
VIEs | Past-due status greater than 90 days (FIP notes) | ' | ' |
Notes Receivable By Class And Aging [Line Items] | ' | ' |
Notes receivable | -12,236 | -12,765 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Detail) (CAD) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Undistributed earnings permanently invested in foreign subsidiaries | ' | 213,000,000 | 213,000,000 | ' |
U.S. foreign tax credits | ' | 18,649,000 | 23,209,000 | ' |
Unrecognized tax benefits, uncertain tax position | ' | ' | 800,000 | ' |
Amount that would impact the effective tax rate if recognized | ' | 17,300,000 | 24,200,000 | ' |
Potential payment of interest and penalties accrued | ' | 7,600,000 | 8,800,000 | ' |
Tax recoveries related to interest and penalties | ' | 1,200,000 | ' | ' |
Additional tax expense related to interest and penalties accrued | ' | ' | 500,000 | 1,200,000 |
Income Tax Examination, Estimate of Possible Loss | ' | 60,000,000 | ' | ' |
Deposit To Be Maintained With Tax Authority | ' | 38,000,000 | ' | ' |
Tax examination, interest expense under dispute | 10,000,000 | ' | ' | ' |
Tax Authority Audit And Appeal Settlements | Maximum | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in unrecognized tax benefits | ' | 4,100,000 | ' | ' |
Tax Authority Audit And Appeal Settlements | Minimum | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in unrecognized tax benefits | ' | 3,700,000 | ' | ' |
Canada | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Aggregate loss carryforwards | ' | 33,400,000 | ' | ' |
Operating loss carryforwards, valuation allowance | ' | 18,600,000 | ' | ' |
U.S. | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Aggregate loss carryforwards | ' | 92,500,000 | ' | ' |
U.S. foreign tax credits | ' | 18,600,000 | ' | ' |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Current | ' | ' | ' |
Canadian Current | 159,369 | 148,168 | 157,685 |
Foreign Current | 2,453 | 3,323 | 5,240 |
Total Current | 161,822 | 151,491 | 162,925 |
Deferred | ' | ' | ' |
Canadian(1) | -5,848 | 2,836 | -2,506 |
Foreign | 1,006 | 2,019 | -2,565 |
Total Deferred | -4,842 | 4,855 | -5,071 |
Income taxes at effective rate | 156,980 | 156,346 | 157,854 |
Income_Taxes_Provision_for_Inc1
Income Taxes (Provision for Income Taxes) (Parenthetical) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Income Taxes [Line Items] | ' | ' | ' |
Income before income taxes | 585,629 | 564,112 | 543,602 |
Canada | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Income before income taxes | 578,300 | 554,900 | 536,100 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Statutory Rate to Effective Tax Rate) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before income taxes | 585,629 | 564,112 | 543,602 |
Statutory rate | 26.50% | 26.50% | 28.30% |
Income taxes at statutory rate | 155,348 | 149,551 | 153,567 |
Taxation difference on foreign earnings | 5,011 | 4,310 | -1,846 |
Provincial, state and local tax rate differentials | 630 | 634 | 152 |
Change in reserves for uncertain tax positions | -8,412 | -1,620 | 3,271 |
Change in valuation allowance | 3,022 | 6,431 | 2,226 |
Other | 1,381 | -2,960 | 484 |
Income taxes at effective rate | 156,980 | 156,346 | 157,854 |
Effective tax rate | 26.80% | 27.70% | 29.00% |
Income_Taxes_TaxEffected_Tempo
Income Taxes (Tax-Effected Temporary Differences Which Gave Rise to Deferred Tax Assets and Liabilities) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
U.S. foreign tax credit carryforwards | 18,649 | 23,209 |
Lease transactions | 64,796 | 56,645 |
Property and equipment basis differences | 11,757 | 11,008 |
Intangible assets basis differences | 1,479 | 1,643 |
Stock-based compensation plans | 6,062 | 5,776 |
Reserves and expenses not currently deductible | 8,631 | 4,065 |
Deferred income | 16,659 | 13,205 |
Loss carryforwards | 10,960 | 5,037 |
All other | 539 | 696 |
Deferred tax assets gross | 139,532 | 121,284 |
Valuation allowance | -46,760 | -39,190 |
Deferred tax assets net | 92,772 | 82,094 |
Deferred tax liabilities | ' | ' |
Lease transactions | 43,409 | 38,244 |
Property and equipment basis differences | 26,581 | 30,711 |
Unremitted earnings b foreign operations | 3,621 | 2,314 |
Stock-based compensation plans | 6,486 | 2,975 |
All other | 1,421 | 745 |
Deferred tax liabilities | 81,518 | 74,989 |
Net deferred tax assets | 11,254 | 7,105 |
Reported in Consolidated Balance Sheet as: | ' | ' |
Deferred income taxes b current asset | 10,165 | 7,142 |
Deferred income taxes b long-term asset | 11,018 | 10,559 |
Deferred income taxes b current liability | 0 | -197 |
Deferred income taxes b long-term liability | -9,929 | -10,399 |
Net deferred tax assets | 11,254 | 7,105 |
Income_Taxes_TaxEffected_Tempo1
Income Taxes (Tax-Effected Temporary Differences Which Gave Rise to Deferred Tax Assets and Liabilities) (Parenthetical) (Detail) (CAD) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Undistributed earnings not indefinitely reinvested | 120.7 | 88.2 |
Income_Taxes_Reconciliation_of1
Income Taxes (Reconciliation of Beginning and Ending of Unrecognized Tax Benefits) (Detail) (CAD) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Contingency [Line Items] | ' | ' |
Balance at beginning of year | 25,041 | 29,755 |
Additions based on tax positions related to the current year | 510 | 1,034 |
Additions for tax positions of prior years | 3,983 | 1,978 |
Reductions for tax positions of prior years | -1,280 | -3,533 |
Reductions related to settlements with taxing authorities | -821 | -895 |
Reductions as a result of a lapse of applicable statute of limitations | -10,114 | -3,298 |
Balance at end of year | 17,319 | 25,041 |
Accrued Liabilities, Taxes | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Balance at end of year | 0 | 3,835 |
Other Long-Term Liabilities | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Balance at end of year | 17,319 | 21,206 |
Inventories_and_Other_Net_Deta
Inventories and Other, Net (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | 22,789 | 19,941 |
Finished goods | 69,348 | 75,660 |
Inventories, gross | 92,137 | 95,601 |
Inventory obsolescence provision | -1,754 | -1,015 |
Inventories, net | 90,383 | 94,586 |
Prepaids and other | 13,943 | 12,414 |
Total Inventories and other, net | 104,326 | 107,000 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net (Schedule of Property And Equipment, Net) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,736,099 | 2,488,568 |
Accumulated depreciation and amortization | -1,051,056 | -935,260 |
Total Property and equipment, net | 1,685,043 | 1,553,308 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 259,386 | 248,097 |
Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,638,755 | 1,481,454 |
Restaurant and other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 208,986 | 188,216 |
Capital leases | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 233,090 | 205,543 |
Computer hardware and software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 124,114 | 117,266 |
Advertising fund property and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 138,858 | 116,044 |
Manufacturing and other equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 97,083 | 112,991 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 35,827 | 18,957 |
Property_and_Equipment_Net_Sch1
Property and Equipment, Net (Schedule of Property And Equipment, Net) (Parenthetical) (Detail) (CAD) | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized software costs | 75,500,000 | 71,900,000 |
Property and equipment, net | 1,685,043,000 | 1,553,308,000 |
Capital leases | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Additions to property, plant and equipment | 34,500,000 | 26,100,000 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 24,900,000 | 26,800,000 |
Other_Assets_Schedule_of_Other
Other Assets (Schedule of Other Assets) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Line Items] | ' | ' |
Other long-term assets | 117,552 | 68,470 |
Bearer deposit notes | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 41,403 | 41,403 |
Tax deposits | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 36,532 | 0 |
TRS contracts | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 21,393 | 7,504 |
Rent leveling | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 5,419 | 5,240 |
Intangible assets | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 494 | 3,674 |
Other long-term assets | ' | ' |
Other Assets [Line Items] | ' | ' |
Other long-term assets | 12,311 | 10,649 |
Other_Assets_Schedule_of_Other1
Other Assets (Schedule of Other Assets) (Parenthetical) (Details) (CAD) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Other Assets [Abstract] | ' | ' | ' | ' |
Total intangibles amortization expense | 2.4 | 3.3 | 1 | 1 |
Equity_Investments_Additional_
Equity Investments (Additional Information) (Detail) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Total joint-venturers and/or partners ownership | 100.00% | ' | ' |
Equity method investment, dividends or distributions | 14.8 | 15.3 | 15 |
Wendy's | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 50.00% | ' | ' |
Equity_Investments_Income_Stat
Equity Investments (Income Statement Information) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Equity Method Investments and Joint Ventures [Abstract] | ' | ' | ' |
Revenues | 42,997 | 42,863 | 42,105 |
Expenses attributable to revenues | -12,074 | -12,902 | -12,712 |
Net income | 30,341 | 29,382 | 29,067 |
Equity incomebTHI | 15,170 | 14,693 | 14,354 |
Equity_Investments_Balance_She
Equity Investments (Balance Sheet Information) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Equity Method Investments and Joint Ventures [Abstract] | ' | ' |
Current assets | 7,832 | 8,408 |
Non-current assets | 82,274 | 86,352 |
Current liabilities | 1,432 | 4,010 |
Non-current liabilities | 8,206 | 9,138 |
Partnersb equity | 80,468 | 81,612 |
Equity investments by THI | 40,738 | 41,268 |
Accounts_Payable_Accrued_Liabi2
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities (Schedule of Accounts Payable) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accounts payable | 142,131 | 126,312 |
Construction holdbacks and accruals | 57,527 | 31,008 |
Corporate reorganization accrual | 4,856 | 12,442 |
Total Accounts payable | 204,514 | 169,762 |
Accounts_Payable_Accrued_Liabi3
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities (Schedule of Accrued Liabilities) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Tim Card obligations | 184,443 | 159,745 |
Salaries and wages | 22,553 | 21,477 |
Taxes | 14,542 | 8,391 |
De-branding Accrual Current | 9,538 | 0 |
Other accrued liabilities | 42,932 | 38,126 |
Total Accrued liabilities | 274,008 | 227,739 |
Accounts_Payable_Accrued_Liabi4
Accounts Payable, Accrued Liabilities, and Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued rent leveling liability | 32,070 | 29,244 |
Stock-based compensation liabilities | 25,532 | 17,479 |
Uncertain tax position liability | 24,926 | 28,610 |
Maidstone Bakeries supply contract deferred liability | 7,799 | 15,352 |
Other accrued long-term liabilities | 21,763 | 18,929 |
Total Other long-term liabilities | 112,090 | 109,614 |
LongTerm_Debt_Additional_Infor
Long-Term Debt (Additional Information) (Detail) (CAD) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 02, 2011 | Jan. 02, 2011 | Dec. 29, 2013 | Jan. 02, 2011 | Jan. 02, 2011 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 31, 2010 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 02, 2011 | Jan. 02, 2011 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 02, 2011 | Oct. 31, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | |
Ad Fund | Ad Fund | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Revolving Bank Facility | Revolving Bank Facility | Term Loan | Term Loan | London Interbank Offered Rate (LIBOR) | 2010 Facility | 2010 Facility | 2010 Facility | 2010 Facility | 2010 Facility | 2010 Facility | 2010 Facility | 2010 Facility | 2013 Facility | 2013 Facility | 2013 Facility | Redemption Option of Borrower | Redemption Option of Borrower | Redemption Option of Lender | Redemption Option of Lender | |||
entity | Series 1 Notes | Series 2 Notes | Minimum | Maximum | financial_ratio | Default Event | Ad Fund | Ad Fund | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Revolving Bank Facility | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | |||||
Series 1 Notes | Series 1 Notes | Overdraft | Standby Letters of Credit | Standby Letters of Credit | Standby Letters of Credit | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||
Series 2 Notes | Series 2 Notes | Series 2 Notes | Series 2 Notes | ||||||||||||||||||||||||||
Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average effective interest rate on total debt | 5.40% | 5.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes issued | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Tranches | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument premium | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | 195,000,000 | 498,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing fees | ' | ' | ' | ' | ' | 1,800,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on notional value | ' | ' | ' | ' | ' | 4,900,000 | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective yield | ' | ' | ' | ' | ' | 4.45% | 4.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 4.20% | 4.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of consolidated revenue | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities guaranteeing note | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption period | ' | ' | ' | ' | ' | ' | ' | '30 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '60 days | '30 days | '60 days |
Additional rate of interest on redemption | ' | ' | ' | ' | ' | 0.30% | 0.49% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of debt instrument to the percentage of principal amount | ' | ' | ' | ' | ' | 101.00% | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | ' | ' |
Credit facility availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 25,000,000 | ' | ' | 25,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | 0.20% | ' | ' | ' | ' | ' | ' | 0.29% | ' | ' | ' | ' | ' |
Debt instrument covenant maximum indebtedness unpaid or accelerated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising fund debt | 30,189,000 | 56,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan period | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term obligations | 17,782,000 | 20,781,000 | 5,000,000 | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Excluding Current Maturities | 843,020,000 | 406,320,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,200,000 | 46,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations | 60,300,000 | 54,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on debt | 15.50% | 15.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other debt | 9,500,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | 30,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | 0 | ' | ' | ' | ' |
Short-term Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.68% | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Financial Ratios Maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of senior notes | ' | ' | ' | ' | ' | 302,300,000 | 449,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Companys_LongTer
Long-Term Debt (Company's Long-Term Debt Obligations) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Advertising fund debt | 30,189 | 56,500 |
Other debt | 69,794 | 60,223 |
Total long-term debt | 851,071 | 418,267 |
Less: current portion | -8,051 | -11,947 |
Long-term debt | 843,020 | 406,320 |
Senior Unsecured Notes | Series 1 Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Unsecured Notes | 301,196 | 301,544 |
Senior Unsecured Notes | Series 2 Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Unsecured Notes | 449,892 | 0 |
LongTerm_Debt_Companys_LongTer1
Long-Term Debt (Company's Long-Term Debt Obligations) (Parenthetical) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Companys Long Term Debt Obligations [Abstract] | ' | ' |
Current portion due under capital leases | 9,731 | 8,834 |
LongTerm_Debt_Future_Maturitie
Long-Term Debt (Future Maturities for Company's Recorded Debt) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ' | ' |
2014 | 8,051 | ' |
2015 | 8,500 | ' |
2016 | 8,518 | ' |
2017 | 308,696 | ' |
2018 | 8,905 | ' |
Subsequent years | 507,313 | ' |
Total principal repayments | 849,983 | ' |
Debt Instrument, Unamortized Premium (Discount), Net | 1,088 | ' |
Total long-term debt | 851,071 | 418,267 |
Less: current portion | 8,051 | 11,947 |
Long-term debt | 843,020 | 406,320 |
Fair_Values_Financial_Assets_a
Fair Values (Financial Assets and Liabilities Measured at Fair Value) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value asset (liability) | 25,810 | 5,490 |
Level 2 | Forward Currency Contracts | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value asset (liability) | 4,181 | -2,014 |
Level 2 | Interest Rate Swap | Canadian Ad Fund | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value asset (liability) | -49 | 0 |
Level 2 | Interest Rate Forwards | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value asset (liability) | 285 | 0 |
Level 2 | TRS | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value asset (liability) | 21,393 | 7,504 |
Fair_Values_Other_Financial_As
Fair Values (Other Financial Assets and Liabilities Measured at Fair Value) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Carrying value | ' | ' |
Bearer deposit notes | 117,552 | 68,470 |
Notes receivable, net | 10,616 | 10,567 |
Advertising fund term debt | -30,189 | -56,500 |
Other debt | -69,794 | -60,223 |
Level 2 | ' | ' |
Fair value asset (liability) | ' | ' |
Bearer deposit notes | 41,403 | 41,403 |
Carrying value | ' | ' |
Bearer deposit notes | 41,403 | 41,403 |
Level 2 | Series 1 Notes | ' | ' |
Fair value asset (liability) | ' | ' |
Senior Unsecured Notes | -315,519 | -325,857 |
Carrying value | ' | ' |
Senior Unsecured Notes | -301,196 | -301,544 |
Level 2 | Series 2 Notes | ' | ' |
Fair value asset (liability) | ' | ' |
Senior Unsecured Notes | -445,419 | 0 |
Carrying value | ' | ' |
Senior Unsecured Notes | -449,892 | 0 |
Level 3 | ' | ' |
Fair value asset (liability) | ' | ' |
Notes receivable, net | 9,114 | 8,777 |
Advertising fund term debt | -30,189 | -56,500 |
Other debt | -126,548 | -125,000 |
Carrying value | ' | ' |
Notes receivable, net | 9,114 | 8,777 |
Advertising fund term debt | -30,189 | -56,500 |
Other debt | -69,794 | -60,223 |
Fair_Values_Other_Financial_As1
Fair Values (Other Financial Assets and Liabilities Measured at Fair Value) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 29, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Interest rate reset period, in days | '90 days |
Derivatives_Summary_Of_Fair_Va
Derivatives (Summary Of Fair Value Of Derivative Instruments On Consolidated Balance Sheet) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Asset | 4,181 | 494 |
Liability | 0 | -2,315 |
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | Accounts Receivable | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Net asset (liability) | 4,181 | ' |
Derivatives Designated As Cash Flow Hedging Instruments | Forward Currency Contracts | Accounts Payable | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Net asset (liability) | ' | -1,821 |
Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Forwards | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Asset | 285 | 0 |
Liability | 0 | 0 |
Net asset (liability) | ' | 0 |
Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Forwards | Accounts Receivable | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Net asset (liability) | 285 | ' |
Derivatives Not Designated As Hedging Instruments | Forward Currency Contracts | ' | ' |
Derivatives not designated as hedging instruments | ' | ' |
Asset | 0 | 5 |
Liability | 0 | -198 |
Net asset (liability) | 0 | ' |
Derivatives Not Designated As Hedging Instruments | Forward Currency Contracts | Accounts Payable | ' | ' |
Derivatives not designated as hedging instruments | ' | ' |
Net asset (liability) | ' | -193 |
Derivatives Not Designated As Hedging Instruments | TRS | ' | ' |
Derivatives not designated as hedging instruments | ' | ' |
Asset | 21,393 | 8,614 |
Liability | 0 | -1,110 |
Derivatives Not Designated As Hedging Instruments | TRS | Other Assets | ' | ' |
Derivatives not designated as hedging instruments | ' | ' |
Net asset (liability) | 21,393 | 7,504 |
Canadian Ad Fund | Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Swap | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Asset | 0 | 0 |
Liability | -49 | 0 |
Net asset (liability) | ' | 0 |
Canadian Ad Fund | Derivatives Designated As Cash Flow Hedging Instruments | Interest Rate Swap | Other Long-Term Liabilities | ' | ' |
Derivatives designated as cash flow hedging instruments | ' | ' |
Net asset (liability) | -49 | ' |
Derivatives_Summary_Of_Fair_Va1
Derivatives (Summary Of Fair Value Of Derivative Instruments On Consolidated Balance Sheet) (Parenthetical) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Forward Currency Contracts | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 154,000 | 195,100 |
Interest Rate Forwards | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 90,000 | 0 |
TRS | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 41,400 | 41,400 |
Canadian Ad Fund | Interest Rate Swap | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 30,000 | 0 |
Subsequent Event | Interest Rate Forwards | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 360,000 | ' |
Derivatives_Summary_Of_Effect_
Derivatives (Summary Of Effect Of Derivative Instruments On Consolidated Statement Of Comprehensive Income) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of net (gain) loss reclassified to earnings | 3,002 | -24 | -4,840 |
Cash Flow Hedging | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI | 174 | -5,009 | ' |
Amount of gain (loss) recognized in OCI, Income tax effect | -2,581 | 1,455 | ' |
Amount of gain (loss) recognized in OCI, Net of income taxes | -2,407 | -3,554 | ' |
Amount of net (gain) loss reclassified to earnings | -3,002 | 24 | ' |
Amount of net (gain) loss reclassified to earnings, Net of income taxes | -2,000 | 11 | ' |
Total effect on OCI | -2,828 | -4,985 | ' |
Total effect on OCI, Income tax effect | -1,579 | 1,442 | ' |
Total effect on OCI, Net of income taxes | -4,407 | -3,543 | ' |
Cash Flow Hedging | Income Taxes | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of net (gain) loss reclassified to earnings, Income tax effect | 1,002 | -13 | ' |
Cash Flow Hedging | Forward Currency Contracts | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI | 9,971 | -5,009 | ' |
Total effect on OCI | 6,002 | -5,676 | ' |
Cash Flow Hedging | Forward Currency Contracts | Cost Of Sales | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of net (gain) loss reclassified to earnings | -3,969 | -667 | ' |
Cash Flow Hedging | Interest Rate Swap | Canadian Ad Fund | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI | -242 | 0 | ' |
Total effect on OCI | -49 | 0 | ' |
Cash Flow Hedging | Interest Rate Swap | Interest (Expense) | Canadian Ad Fund | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of net (gain) loss reclassified to earnings | 193 | 0 | ' |
Cash Flow Hedging | Interest Rate Forwards | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of gain (loss) recognized in OCI | -9,555 | 0 | ' |
Total effect on OCI | -8,781 | 691 | ' |
Cash Flow Hedging | Interest Rate Forwards | Interest (Expense) | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of net (gain) loss reclassified to earnings | 774 | 691 | ' |
Derivatives_Summary_of_Gain_Lo
Derivatives (Summary of (Gain) Loss on Derivatives Not Designated as Hedging Instruments) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Effect of derivatives on statements of operations [Line Items] | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -14,082 | 2,879 | -5,937 |
TRS | General and Administrative Expense | ' | ' | ' |
Effect of derivatives on statements of operations [Line Items] | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -13,889 | 1,782 | -5,033 |
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 | -193 | 1,097 | -904 |
Leases_Additional_Information_
Leases (Additional Information) (Detail) (CAD) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2013 |
Leases [Line Items] | ' |
Minimum payments due to the company under non-cancelable subleases for capital leases | 148 |
Minimum payments due to the company under non-cancelable subleases for operating leases | 534 |
Sublease Term | ' |
Leases [Line Items] | ' |
Lease term | '10 years |
Sublease Renewal Term | ' |
Leases [Line Items] | ' |
Lease term | '5 years |
Number of Lease Renewal Options | 1 |
Maximum | ' |
Leases [Line Items] | ' |
Lease term | '30 years |
Minimum | ' |
Leases [Line Items] | ' |
Lease term | '10 years |
Leases_Assets_Leased_under_Cap
Leases (Assets Leased under Capital Leases) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ' | ' |
Accumulated depreciation | -75,437 | -67,721 |
Total | 158,535 | 138,800 |
Building | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Capital leased assets, gross | 220,933 | 197,438 |
Other | ' | ' |
Capital Leased Assets [Line Items] | ' | ' |
Capital leased assets, gross | 13,039 | 9,083 |
Leases_Future_Minimum_Lease_Pa
Leases (Future Minimum Lease Payments And Present Value Of Net Minimum Lease Payments) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leases | ' | ' |
2014 | 21,690 | ' |
2015 | 25,723 | ' |
2016 | 18,879 | ' |
2017 | 15,906 | ' |
2018 | 16,270 | ' |
Subsequent years | 142,299 | ' |
Total minimum lease payments | 240,767 | ' |
Amount representing interest | -109,987 | ' |
Present value of net minimum lease payments | 130,780 | ' |
Current portion | -9,731 | -8,834 |
Total | 121,049 | 104,383 |
Operating Leases | ' | ' |
2014 | 102,643 | ' |
2015 | 103,784 | ' |
2016 | 90,370 | ' |
2017 | 77,996 | ' |
2018 | 77,764 | ' |
Subsequent years | 599,185 | ' |
Total minimum lease payments | 1,051,742 | ' |
Leases_Rental_Expenses_Include
Leases (Rental Expenses Included in Operating Expense) (Details) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Leases [Abstract] | ' | ' | ' |
Minimum rents | 106,303 | 96,482 | 89,329 |
Contingent rents | 77,892 | 77,842 | 74,549 |
Total rent expense | 184,195 | 174,324 | 163,878 |
Leases_Company_Assets_under_Le
Leases (Company Assets under Lease or Sublease Included In Property and Equipment) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property Subject to or Available for Operating Lease [Line Items] | ' | ' |
Gross | 1,746,509 | 1,568,912 |
Accumulated depreciation | -690,246 | -604,703 |
Net | 1,056,263 | 964,209 |
Land | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' |
Gross | 189,301 | 180,073 |
Buildings and leasehold improvements | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' |
Gross | 1,474,802 | 1,318,194 |
Restaurant equipment | ' | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' | ' |
Gross | 82,406 | 70,645 |
Leases_Future_Minimum_Lease_Re
Leases (Future Minimum Lease Receipts) (Detail) (CAD) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | 231,307 |
2015 | 202,577 |
2016 | 165,973 |
2017 | 136,856 |
2018 | 107,201 |
Subsequent years | 237,211 |
Total | 1,081,125 |
Leases_Rental_Income_included_
Leases (Rental Income included in Rents and Royalties Revenue) (Detail) (Rents And Royalties Revenues, CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Rents And Royalties Revenues | ' | ' | ' |
Rental Income [Line Items] | ' | ' | ' |
Minimum rents | 314,865 | 300,021 | 291,557 |
Contingent rents | 264,820 | 257,594 | 242,101 |
Total rental income | 579,685 | 557,615 | 533,658 |
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) | 12 Months Ended | |||||
Dec. 29, 2013 | Feb. 20, 2013 | Dec. 29, 2013 | Feb. 14, 2014 | Dec. 29, 2013 | Feb. 14, 2014 | |
right | Share Repurchase Program Two Thousand And Thirteen | Two Thousand Thirteen Program Amendment | Share Repurchase Program Two Thousand And Fourteen | Share Repurchase Program Two Thousand And Fourteen | Total Share Repurchase Program Two Thousand and Fourteen | |
Common Shares [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum shares of common shares to be repurchased | ' | 15,239,531 | ' | 13,726,219 | ' | ' |
Percentage of outstanding shares, regulatory maximum for repurchase | ' | 10.00% | ' | 10.00% | ' | ' |
Number of Rights to Purchase Common Shares | 1 | ' | ' | ' | ' | ' |
Maximum value of common shares to be repurchased | ' | 250,000,000 | 1,000,000,000 | ' | 210,000,000 | 440,000,000 |
Share Purchase Rights Beneficial Ownership Percentage | 20.00% | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 150 | ' | ' | ' | ' | ' |
Market Price Per Share | 25 | ' | ' | ' | ' | ' |
Cash Entitlement Per Right Holder | 300 | ' | ' | ' | ' | ' |
Share Entitlement Per Right Holder | 12 | ' | ' | ' | ' | ' |
Percentage Of Discount On Shares Purchased | 50.00% | ' | ' | ' | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information) (Detail) (CAD) | 12 Months Ended | 28 Months Ended | 20 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | 10-May-12 | Dec. 29, 2013 |
TRS | TRS | TRS | Restricted Stock Units (RSUs) | Stock Options With Tandem SARS | Stock Options With Tandem SARS | Employee Stock Plan Twenty Zero Six Plan | Employee Stock Plan Twenty Twelve | ||||
General and Administrative Expense | General and Administrative Expense | General and Administrative Expense | Retirement Eligible | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Share Based Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 900,000 |
Total RSUs Granted | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' |
Total Options Granted | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' |
Granted, share units | ' | ' | ' | ' | ' | ' | 160,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 |
Number of common shares covered by outstanding equity awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Underlying Common Stock Covered Under Total Return Swap Contracts | 1,007,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (gain) loss from derivatives not designated as hedging instruments | -14,082 | 2,879 | -5,937 | -13,889 | 1,782 | -5,033 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Award Expiration Period From Grant Date | ' | ' | ' | ' | ' | ' | ' | '7 years | '4 years | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense Included In General And Administrative Expenses) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Restricted stock units | 6,522 | 9,537 | 6,247 |
Stock options and tandem SARs | 12,745 | 1,599 | 9,055 |
Deferred stock units | 2,722 | 726 | 2,021 |
Total stock-based compensation expense | 21,989 | 11,862 | 17,323 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Restricted Stock Units Activity) (Detail) (Restricted Stock Units (RSUs), CAD) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 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 | ' | ' |
Granted, share units | 160 | ' | ' |
Dividend equivalent rights, share units | 7 | ' | ' |
Vested and settled, share units | -150 | ' | ' |
Forfeited, share units | -22 | ' | ' |
Ending balance, share units | 307 | 312 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' |
Beginning balance, value | 50.91 | ' | ' |
Granted | 56.73 | 54.49 | 45.76 |
Dividend equivalent rights | 56.4 | ' | ' |
Vested and settled | 47.56 | ' | ' |
Forfeited | 52.29 | ' | ' |
Ending balance, value | 55.6 | 50.91 | ' |
Total Intrinsic Value | 19,119 | 15,147 | ' |
Weighted Average Remaining Contractual Life | '1 year 4 months 24 days | '1 year 6 months | ' |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of Restricted Stock Units Activity) (Parenthetical) (Detail) (Restricted Stock Units (RSUs), CAD) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 56.73 | 54.49 | 45.76 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 9.1 | 7.7 | 6.8 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 6 | 4.6 | ' |
Weighted-average period to be recognized, years | '1 year 4 months 24 days | '1 year 6 months | ' |
StockBased_Compensation_Summar2
Stock-Based Compensation (Summary of Deferred Stock Units Activity) (Detail) (Deferred Share Units, CAD) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Deferred Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Beginning balance, share units | 138 | ' | ' |
Granted, share units | 11 | ' | ' |
Dividend equivalent rights, share units | 3 | ' | ' |
Vested and settled, share units | -11 | ' | ' |
Ending balance, share units | 141 | 138 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' |
Beginning balance, value | 37.56 | ' | ' |
Granted | 57.59 | 51.07 | 46.13 |
Dividend equivalent rights, value | 57.02 | ' | ' |
Vested and settled | 37.41 | ' | ' |
Ending balance, value | 39.57 | 37.56 | ' |
StockBased_Compensation_Summar3
Stock-Based Compensation (Summary of Deferred Stock Units Activity) (Parenthetical) (Detail) (Deferred Share Units, CAD) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 57.59 | 51.07 | 46.13 |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | 0.4 | 0.4 | 0 |
Other Long-Term Liabilities | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value liability outstanding | 8.8 | 6.7 | ' |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option With Tandem SAR Awards Granted To Officers) (Detail) (Stock Options And Tandem Stock Appreciation Rights, CAD) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Stock Options And Tandem Stock Appreciation Rights | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Balance as at December 30, 2012 | 1,172 | ' | ' |
Granted | 367 | ' | ' |
Exercised | -329 | ' | ' |
Forfeited | -14 | ' | ' |
Balance as at December 30, 2013 | 1,196 | 1,172 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Balance as at December 30, 2012 | 40.73 | ' | ' |
Granted | 57.91 | 54.86 | 45.76 |
Exercised | 36.14 | ' | ' |
Forfeited | 53.47 | ' | ' |
Balance as at December 30, 2012 | 47.11 | 40.73 | ' |
Stock Options with SARs, Exercisable, Number | 574 | ' | ' |
Weighted Average Exercise Price, Exercisable | 38.39 | ' | ' |
Total Intrinsic Value, Outstanding | 18,150 | 10,681 | ' |
Total Intrinsic Value, Exercisable | 13,713 | ' | ' |
Weighted Average Remaining Contractual Life, Outstanding | '4 years 7 months 21 days | '4 years 8 months 12 days | ' |
Weighted Average Remaining Contractual Life, Exercisable | '3 years 4 months 24 days | ' | ' |
StockBased_Compensation_Stock_1
Stock-Based Compensation (Stock Option With Tandem SAR Awards Granted To Officers) (Parenthetical) (Detail) (Stock Options And Tandem Stock Appreciation Rights, CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Issued During Period Shares Stock Options Vested | 0.3 | 0.4 | 0.4 |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested In Period Total Intrinsic Value | 5.6 | 5.3 | 6.5 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 3.3 | 1.4 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 7 months 24 days | '1 year 6 months | ' |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | 6.9 | 4.2 | 3.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 6.9 | 3.7 | 4.2 |
Other Long-Term Liabilities | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Recorded Liability | 16.7 | 10.8 | ' |
StockBased_Compensation_Assump
Stock-Based Compensation (Assumptions Used To Calculate Fair Value Of Outstanding Stock Options/SARs) (Detail) (CAD) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Share Based Compensation [Line Items] | ' | ' | ' |
Expected dividend yield | 1.70% | 1.80% | 1.40% |
Closing share price (in dollars) | 62.29 | 48.51 | 49.36 |
Minimum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Expected share price volatility | 13.00% | 9.00% | 16.00% |
Risk-free interest rate | 1.10% | 1.10% | 1.00% |
Expected life | '6 months | '1 year | '1 year 8 months 12 days |
Maximum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Expected share price volatility | 17.00% | 20.00% | 22.00% |
Risk-free interest rate | 1.60% | 1.30% | 1.10% |
Expected life | '4 years | '4 years | '3 years 10 months 23 days |
Stock Options And Tandem Stock Appreciation Rights | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Granted | 57.91 | 54.86 | 45.76 |
Variable_Interest_Entities_Add
Variable Interest Entities (Additional Information) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Variable Interest Entity [Line Items] | ' | ' | ' |
Capital expenditures | 221,000 | 186,777 | 176,890 |
Cost of the shares held by the Trust | 12,924 | 13,356 | ' |
Advertising Fund Contribution Rate | 4.00% | ' | ' |
Expanded Menu Board Program | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Capital expenditures | 75,400 | ' | ' |
Canada | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Advertising Fund Contribution Rate | 3.50% | 3.50% | 3.50% |
U.S. | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Advertising Fund Contribution Rate | 4.00% | 4.00% | 4.00% |
Variable_Interest_Entities_Non
Variable Interest Entities (Non-owned Restaurants) (Details) | Dec. 29, 2013 | Dec. 30, 2012 |
Store | Store | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Number of Consolidated Non Owned Restaurants | 331 | 365 |
Number of Consolidated Non Owned Restaurants Percentage | 7.40% | 8.60% |
Variable_Interest_Entities_Adv
Variable Interest Entities (Advertising Funds) (Details) (Ad Fund VIEs, CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Ad Fund VIEs | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Advertising expenses | 255,056 | 230,317 | 214,989 |
Variable_Interest_Entities_Com
Variable Interest Entities (Company Contributions to Canadian and U.S. Advertising Funds) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Variable Interest Entity [Line Items] | ' | ' | ' |
Company contributions | 24,601 | 23,358 | 20,953 |
Company contributions | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Company contributions | 10,800 | 10,813 | 10,487 |
Contributions from consolidated non-owned restaurants | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' |
Company contributions | 13,801 | 12,545 | 10,466 |
Variable_Interest_Entities_Rev
Variable Interest Entities (Revenues and Expenses of Variable Interest Entities) (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | 597,655 | 575,780 | 568,562 | 523,887 | 570,044 | 568,541 | 563,772 | 523,302 | 2,265,884 | 2,225,659 | 2,012,170 |
Total revenues | 898,504 | 825,353 | 800,139 | 731,537 | 811,599 | 802,040 | 785,581 | 721,284 | 3,255,533 | 3,120,504 | 2,852,966 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,972,903 | 1,957,338 | 1,772,375 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 321,836 | 284,321 | 256,676 |
Asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 2,889 | -372 | 372 |
Operating income | 147,771 | 168,828 | 176,579 | 127,917 | 150,404 | 153,659 | 158,839 | 131,623 | 621,095 | 594,525 | 569,475 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 39,078 | 33,709 | 30,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 585,629 | 564,112 | 543,602 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 156,980 | 156,346 | 157,854 |
Net income attributable to non controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | 4,280 | 4,881 | 2,936 |
Restaurant VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 369,850 | 338,005 | 282,384 |
Advertising levies | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 369,850 | 338,005 | 282,384 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 364,260 | 332,151 | 277,953 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 441 | 0 | 900 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 5,149 | 5,854 | 3,531 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 138 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 5,149 | 5,854 | 3,393 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 869 | 973 | 457 |
Net income attributable to non controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | 4,280 | 4,881 | 2,936 |
Ad Fund VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Advertising levies | ' | ' | ' | ' | ' | ' | ' | ' | 10,711 | 5,624 | 634 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,711 | 5,624 | 634 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9,269 | 4,602 | 634 |
Asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,442 | 1,022 | 0 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,442 | 1,022 | 0 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income attributable to non controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 369,850 | 338,005 | 282,384 |
Advertising levies | ' | ' | ' | ' | ' | ' | ' | ' | 10,711 | 5,624 | 634 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 380,561 | 343,629 | 283,018 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 364,260 | 332,151 | 277,953 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9,269 | 4,602 | 634 |
Asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 441 | 0 | 900 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 6,591 | 6,876 | 3,531 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,442 | 1,022 | 138 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 5,149 | 5,854 | 3,393 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 869 | 973 | 457 |
Net income attributable to non controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | 4,280 | 4,881 | 2,936 |
Variable_Interest_Entities_Ass
Variable Interest Entities (Assets and Liabilities of Variable Interest Entities) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Jan. 02, 2011 |
In Thousands, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 50,414 | 120,139 | 126,497 | 574,354 |
Advertising fund restricted assets b current | 39,783 | 45,337 | ' | ' |
Property and equipment, net | 1,685,043 | 1,553,308 | ' | ' |
Other long-term assets | 117,552 | 68,470 | ' | ' |
Total assets | 2,433,823 | 2,284,179 | ' | ' |
Other current liabilities | 274,008 | 227,739 | ' | ' |
Other long-term liabilities | 112,090 | 109,614 | ' | ' |
Equity of VIEs | 365 | 2,853 | ' | ' |
Total liabilities and equity | 2,433,823 | 2,284,179 | ' | ' |
Restaurant VIEs | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 7,773 | 10,851 | ' | ' |
Advertising fund restricted assets b current | 0 | 0 | ' | ' |
Other current assets | 7,155 | 6,770 | ' | ' |
Property and equipment, net | 20,471 | 19,536 | ' | ' |
Other long-term assets | 370 | 572 | ' | ' |
Total assets | 35,769 | 37,729 | ' | ' |
Notes payable to Tim Hortons Inc. b current | 13,689 | 13,637 | ' | ' |
Advertising fund liabilities b current(2) | 0 | 0 | ' | ' |
Other current liabilities | 11,706 | 14,548 | ' | ' |
Notes payable to Tim Hortons Inc. - long-term | 628 | 804 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Other long-term liabilities | 9,381 | 5,887 | ' | ' |
Total liabilities | 35,404 | 34,876 | ' | ' |
Equity of VIEs | 365 | 2,853 | ' | ' |
Total liabilities and equity | 35,769 | 37,729 | ' | ' |
Ad Fund VIEs | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' | ' |
Advertising fund restricted assets b current | 39,783 | 45,337 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Property and equipment, net | 70,485 | 57,925 | ' | ' |
Other long-term assets | 1,271 | 2,095 | ' | ' |
Total assets | 111,539 | 105,357 | ' | ' |
Notes payable to Tim Hortons Inc. b current | 3,040 | 0 | ' | ' |
Advertising fund liabilities b current(2) | 59,913 | 44,893 | ' | ' |
Other current liabilities | 5,253 | 9,919 | ' | ' |
Notes payable to Tim Hortons Inc. - long-term | 15,200 | 0 | ' | ' |
Long-term debt | 25,157 | 46,849 | ' | ' |
Other long-term liabilities | 2,976 | 3,696 | ' | ' |
Total liabilities | 111,539 | 105,357 | ' | ' |
Equity of VIEs | 0 | 0 | ' | ' |
Total liabilities and equity | 111,539 | 105,357 | ' | ' |
Variable_Interest_Entities_Ass1
Variable Interest Entities (Assets and Liabilities of Variable Interest Entities) (Parenthetical) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Advertising fund debt | 30,189 | 56,500 |
Other liabilities | 17,782 | 20,781 |
Ad Fund | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Other liabilities | 5,000 | 9,700 |
Segment_Reporting_Information_
Segment Reporting (Information on Reportable Segments) (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | 898,504 | 825,353 | 800,139 | 731,537 | 811,599 | 802,040 | 785,581 | 721,284 | 3,255,533 | 3,120,504 | 2,852,966 |
Operating income | 147,771 | 168,828 | 176,579 | 127,917 | 150,404 | 153,659 | 158,839 | 131,623 | 621,095 | 594,525 | 569,475 |
Interest, net | ' | ' | ' | ' | ' | ' | ' | ' | -35,466 | -30,413 | -25,873 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 585,629 | 564,112 | 543,602 |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | 2,889 | -372 | 372 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 221,000 | 186,777 | 176,890 |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | -400 | -500 |
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,874,972 | 2,776,875 | 2,569,948 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 626,265 | 606,523 | 565,755 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 221,000 | 186,777 | 176,890 |
Operating Segments | Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,660,358 | 2,595,921 | 2,403,002 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 665,675 | 653,916 | 625,139 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 153,877 | 113,546 | 95,343 |
Operating Segments | U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 197,226 | 165,723 | 156,291 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 5,107 | 9,620 | 8,897 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 49,757 | 59,998 | 38,554 |
Operating Segments | Corporate services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 17,388 | 15,231 | 10,655 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -44,517 | -57,013 | -68,281 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 17,366 | 13,233 | 42,993 |
VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 380,561 | 343,629 | 283,018 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 6,591 | 6,876 | 3,720 |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | 900 |
Corporate Reorganization Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -11,761 | -18,874 | 0 |
Segment_Reporting_Reconciliati
Segment Reporting (Reconciliation of Total Reportable Segment Property and Equipment and Total Assets) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 1,685,043 | 1,553,308 |
Consolidated total assets | 2,433,823 | 2,284,179 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 1,597,873 | 1,479,128 |
Consolidated total assets | 2,022,927 | 1,856,826 |
Operating Segments | Canada | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 1,008,141 | 915,733 |
Consolidated total assets | 1,300,220 | 1,175,552 |
Operating Segments | U.S. | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 413,928 | 378,457 |
Consolidated total assets | 450,377 | 400,231 |
Operating Segments | Corporate services | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 175,804 | 184,938 |
Consolidated total assets | 272,330 | 281,043 |
VIEs | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 87,170 | 74,180 |
Consolidated total assets | 143,301 | 139,462 |
Unallocated | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Consolidated total assets | 267,595 | 287,891 |
Segment_Reporting_Significant_
Segment Reporting (Significant Non-cash Items Included In Reportable Segment Operating Income) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 161,809 | 132,167 | 115,869 |
VIEs | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 11,734 | 6,352 | 2,817 |
Operating Segments | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 150,075 | 125,815 | 113,052 |
Operating Segments | Canada | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 100,567 | 84,724 | 74,962 |
Operating Segments | U.S. | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 33,853 | 23,837 | 20,488 |
Operating Segments | Corporate services | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 15,655 | 17,254 | 17,602 |
Segment_Reporting_Consolidated
Segment Reporting (Consolidated Sales and Cost of Sales Information) (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,872,296 | 1,860,683 | 1,705,692 |
Company-operated restaurant sales | ' | ' | ' | ' | ' | ' | ' | ' | 23,738 | 26,970 | 24,094 |
Sales from VIEs | ' | ' | ' | ' | ' | ' | ' | ' | 369,850 | 338,006 | 282,384 |
Total Sales | 597,655 | 575,780 | 568,562 | 523,887 | 570,044 | 568,541 | 563,772 | 523,302 | 2,265,884 | 2,225,659 | 2,012,170 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,619,858 | 1,631,091 | 1,501,503 |
Company-operated restaurant cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 25,446 | 28,857 | 24,720 |
Cost of sales from VIEs | ' | ' | ' | ' | ' | ' | ' | ' | 327,599 | 297,390 | 246,152 |
Total Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,972,903 | 1,957,338 | 1,772,375 |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' |
Contingent rents | 77,892 | 77,842 | 74,549 |
Accounts receivable | 254 | 311 | ' |
Accounts payable | 1,972 | 2,048 | ' |
Corporate Joint Venture | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Contingent rents | 25,329 | 25,102 | 24,677 |
Wendy's | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | ' | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (CAD) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | 597,655 | 575,780 | 568,562 | 523,887 | 570,044 | 568,541 | 563,772 | 523,302 | 2,265,884 | 2,225,659 | 2,012,170 |
Rents and royalties | 212,364 | 212,114 | 209,289 | 187,454 | 200,277 | 201,556 | 198,973 | 180,186 | 821,221 | 780,992 | 733,217 |
Franchise fees | 88,485 | 37,459 | 22,288 | 20,196 | 41,278 | 31,943 | 22,836 | 17,796 | 168,428 | 113,853 | 107,579 |
Franchise Revenue | 300,849 | 249,573 | 231,577 | 207,650 | 241,555 | 233,499 | 221,809 | 197,982 | 989,649 | 894,845 | 840,796 |
Total revenues | 898,504 | 825,353 | 800,139 | 731,537 | 811,599 | 802,040 | 785,581 | 721,284 | 3,255,533 | 3,120,504 | 2,852,966 |
Corporate reorganization expense | -729 | -953 | -604 | -9,475 | -9,032 | -8,565 | -1,277 | 0 | -11,761 | -18,874 | 0 |
De-branding Costs | -19,016 | 0 | 0 | 0 | ' | ' | ' | ' | -19,016 | 0 | 0 |
Other costs and expenses, net | -730,988 | -655,572 | -622,956 | -594,145 | -652,163 | -639,816 | -625,465 | -589,661 | ' | ' | ' |
Operating income | 147,771 | 168,828 | 176,579 | 127,917 | 150,404 | 153,659 | 158,839 | 131,623 | 621,095 | 594,525 | 569,475 |
Net income attributable to Tim Hortons Inc. | 100,599 | 113,863 | 123,736 | 86,171 | 100,341 | 105,698 | 108,067 | 88,779 | 424,369 | 402,885 | 382,812 |
Diluted earnings per common share attributable to Tim Hortons Inc. (in Canadian dollars per share) | 0.69 | 0.75 | 0.81 | 0.56 | 0.65 | 0.68 | 0.69 | 0.56 | 2.82 | 2.59 | 2.35 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Detail) (CAD) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 43,240 | 44,577 | 40,007 |
Charged (Credited) to Costs & Expenses | 6,809 | 8,559 | 7,566 |
Additions (Deductions) | 1,632 | -9,896 | -2,996 |
Balance at end of period | 51,681 | 43,240 | 44,577 |
Deferred Tax Asset Valuation Allowance | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 39,190 | 40,494 | 37,471 |
Charged (Credited) to Costs & Expenses | 3,022 | 6,431 | 2,226 |
Additions (Deductions) | 4,548 | -7,735 | 797 |
Balance at end of period | 46,760 | 39,190 | 40,494 |
Allowance For Doubtful Accounts And Notes | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 3,035 | 3,239 | 1,484 |
Charged (Credited) to Costs & Expenses | 1,606 | 890 | 4,651 |
Additions (Deductions) | -1,474 | -1,094 | -2,896 |
Balance at end of period | 3,167 | 3,035 | 3,239 |
Inventory Reserve | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of period | 1,015 | 844 | 1,052 |
Charged (Credited) to Costs & Expenses | 2,181 | 1,238 | 689 |
Additions (Deductions) | -1,442 | -1,067 | -897 |
Balance at end of period | 1,754 | 1,015 | 844 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Year-End Balances Reflected In Consolidated Balance Sheets) (Detail) (CAD) | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | Jan. 02, 2011 |
In Thousands, unless otherwise specified | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowances and reserves balance | 51,681 | 43,240 | 44,577 | 40,007 |
Deferred Tax Asset Valuation Allowance | ' | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowances and reserves balance | 46,760 | 39,190 | 40,494 | 37,471 |
Allowance For Doubtful Accounts And Notes | ' | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowances and reserves balance | 3,167 | 3,035 | 3,239 | 1,484 |
Inventory Reserve | ' | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowances and reserves balance | 1,754 | 1,015 | 844 | 1,052 |