Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | Burger King Worldwide, Inc. |
Entity Central Index Key | 1547282 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 351,245,099 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $764.30 | $546.70 |
Trade and notes receivable, net | 164.6 | 179 |
Prepaids and other current assets, net | 99.6 | 91.3 |
Deferred income taxes, net | 38 | 73.5 |
Total current assets | 1,066.50 | 890.5 |
Property and equipment, net of accumulated depreciation of $173.6 million and $200.8 million, respectively | 804.6 | 885.2 |
Intangible assets, net | 2,799.30 | 2,811.20 |
Goodwill | 626.5 | 619.2 |
Net investment in property leased to franchisees | 167.4 | 180.4 |
Other assets, net | 306.9 | 177.5 |
Total assets | 5,771.20 | 5,564 |
Current liabilities: | ||
Accounts and drafts payable | 25.8 | 68.7 |
Accrued advertising | 101.2 | 66.5 |
Other accrued liabilities | 182 | 206.8 |
Current portion of long term debt and capital leases | 75 | 55.8 |
Total current liabilities | 384 | 397.8 |
Term debt, net of current portion | 2,890.80 | 2,905.10 |
Capital leases, net of current portion | 78.5 | 88.4 |
Other liabilities, net | 354.8 | 382.4 |
Deferred income taxes, net | 664.5 | 615.3 |
Total liabilities | 4,372.60 | 4,389 |
Commitments and Contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 200,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $0.01 par value; 2,000,000,000 shares authorized; 351,245,099 shares issued and outstanding at September 30, 2013; 350,238,771 shares issued and outstanding at December 31, 2012; | 3.5 | 3.5 |
Additional paid-in capital | 1,223 | 1,205.70 |
Retained earnings | 183.3 | 76.1 |
Accumulated other comprehensive loss | -11.2 | -110.3 |
Total stockholders' equity | 1,398.60 | 1,175 |
Total liabilities and stockholders' equity | $5,771.20 | $5,564 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $173.60 | $200.80 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 351,245,099 | 350,238,771 |
Common stock, shares outstanding | 351,245,099 | 350,238,771 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Company restaurant revenues | $27 | $244.60 | $200.80 | $986.70 |
Franchise and property revenues | 248.1 | 211.1 | 680.3 | 579.7 |
Total revenues | 275.1 | 455.7 | 881.1 | 1,566.40 |
Company restaurant expenses: | ||||
Food, paper and product costs | 8.5 | 79.7 | 63.8 | 324.7 |
Payroll and employee benefits | 7.4 | 71.9 | 61.6 | 291.6 |
Occupancy and other operating costs | 7 | 64.7 | 52.2 | 259.7 |
Total Company restaurant expenses | 22.9 | 216.3 | 177.6 | 876 |
Franchise and property expenses | 40.5 | 37.7 | 113.5 | 90 |
Selling, general and administrative expenses | 59.6 | 77.6 | 187.8 | 268.4 |
Other operating expenses (income), net | 6.6 | 30.3 | 21.1 | 26.2 |
Total operating costs and expenses | 129.6 | 361.9 | 500 | 1,260.60 |
Income from operations | 145.5 | 93.8 | 381.1 | 305.8 |
Interest expense, net | 50.2 | 57.3 | 149.3 | 173.6 |
Loss on early extinguishment of debt | 23 | 34.2 | ||
Income before income taxes | 95.3 | 13.5 | 231.8 | 98 |
Income tax expense | 27.1 | 6.9 | 64.9 | 28.9 |
Net income | $68.20 | $6.60 | $166.90 | $69.10 |
Earnings per share: | ||||
Basic | $0.19 | $0.02 | $0.48 | $0.20 |
Diluted | $0.19 | $0.02 | $0.47 | $0.20 |
Weighted average shares outstanding | ||||
Basic | 351.2 | 350 | 350.9 | 349.4 |
Diluted | 358.1 | 355 | 357.7 | 353.3 |
Dividends per common share | $0.06 | $0.17 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $68.20 | $6.60 | $166.90 | $69.10 |
Foreign currency translation adjustment | 44.6 | 21.6 | 31.6 | -5.4 |
Reclassification of foreign currency translation adjustment into net income | -3 | |||
Net change in fair value of net investment hedges (net of tax of $6.5, $2.7, $3.6 and $0.0) | -10.1 | -0.1 | -5.6 | -0.1 |
Net change in fair value of interest rate caps/swaps (net of tax of $1.4, $7.3, $47.9 and $11.5) | -2.2 | -9 | 74.2 | -18 |
Amounts reclassified to earnings of cash flow hedges (net of tax of $0.7, $3.7, $1.7 and $4.1) | 1 | 5.5 | 2.6 | 6.4 |
Pension and post-retirement benefit plans (net of tax of $0.4, $0.3, $0.7 and $3.9) | -0.4 | -0.3 | -0.1 | 6.2 |
Amortization of prior service costs (net of tax of $0.3, $0.5, $0.9 and $0.7) | -0.4 | -0.3 | -1.1 | -1.2 |
Amortization of actuarial losses (net of tax of $0.1, $0.0, $0.4 and $0.0) | 0.2 | 0.5 | ||
Other comprehensive income (loss), net of tax | 32.7 | 17.4 | 99.1 | -12.1 |
Total comprehensive income | $100.90 | $24 | $266 | $57 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax effect on change in fair value of investment hedges | $6.50 | $2.70 | $3.60 | $0 |
Tax effect on change in fair value of interest rate caps/swaps | 1.4 | 7.3 | 47.9 | 11.5 |
Tax effect on amounts reclassified to earnings of cash flow hedges | 0.7 | 3.7 | 1.7 | 4.1 |
Tax effect on pension and post-retirement benefit plans | 0.4 | 0.3 | 0.7 | 3.9 |
Tax effect on amortization prior service costs | 0.3 | 0.5 | 0.9 | 0.7 |
Tax effect on amortization actuarial losses | $0.10 | $0 | $0.40 | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $166.90 | $69.10 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 48.4 | 96 |
Loss on early extinguishment of debt | 34.2 | |
Amortization of deferred financing costs and debt issuance discount | 41.7 | 43.6 |
Equity in net loss from unconsolidated affiliates | 9.7 | 1.4 |
Loss (gain) on remeasurement of foreign denominated transactions | 1 | -5.4 |
Amortization of defined benefit pension and postretirement items | -1.6 | -1.8 |
Realized loss on terminated caps/swaps | 4.3 | 10.7 |
Net (gains) losses on refranchisings and dispositions of assets | -2.5 | 10.4 |
Bad debt expense, net of recoveries | 2.2 | 2.9 |
Share-based compensation | 7.1 | 9.3 |
Deferred income taxes | 33.3 | 8 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Trade and notes receivables | 6.3 | -4.1 |
Prepaids and other current assets | -0.2 | -8.9 |
Accounts and drafts payable | -35.7 | -34.7 |
Accrued advertising | 9.7 | -31 |
Other accrued liabilities | -4.9 | -47.7 |
Other long-term assets and liabilities | -18 | -7.4 |
Net cash provided by operating activities | 267.7 | 144.6 |
Cash flows from investing activities: | ||
Payments for property and equipment | -10.8 | -37.7 |
Proceeds from refranchisings, disposition of assets and restaurant closures | 48.7 | 70 |
Payments for acquired franchisee operations, net of cash acquired | -11.9 | -15.3 |
Return of investment on direct financing leases | 11.9 | 10.4 |
Other investing activities | 0.2 | |
Net cash provided by investing activities | 38.1 | 27.4 |
Cash flows from financing activities: | ||
Proceeds from term debt | 1,733.50 | |
Repayments of term debt and capital leases | -38.1 | -1,754.70 |
Extinguishment of debt | -112.8 | |
Payment of financing costs | -16 | |
Proceeds from stock option exercises | 2.7 | 1.3 |
Excess tax benefits from share-based compensation | 4.2 | |
Dividends paid on common stock | -59.7 | |
Net cash used for financing activities | -90.9 | -148.7 |
Effect of exchange rates on cash and cash equivalents | 2.7 | 0.5 |
Increase in cash and cash equivalents | 217.6 | 23.8 |
Cash and cash equivalents at beginning of period | 546.7 | 459 |
Cash and cash equivalents at end of period | 764.3 | 482.8 |
Supplemental cash flow disclosures: | ||
Interest paid | 85.2 | 114.3 |
Income taxes paid | 24.7 | 31.8 |
Non-cash investing and financing activities: | ||
Investment in unconsolidated affiliates | 17.8 | 98.6 |
Acquisition of property with capital lease obligations | $1 | $36.10 |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Note 1. Basis of Presentation and Consolidation |
We have prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in our Annual Report on Form 10-K filed with the SEC on February 22, 2013. | |
The Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries. Investments in affiliates owned 50% or less and variable interest entities (“VIEs”) in which we are not deemed to be the primary beneficiary are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation. | |
We have investments in certain franchisee entities that are VIEs. We are required to consolidate VIEs where we have determined that we are the primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest are accounted for under the equity method, as we have determined we are not the primary beneficiary. | |
In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our Financial Statements and Notes to the Financial Statements. Management adjusts such estimates and assumptions when facts and circumstances dictate. Such estimates and assumptions may be affected by volatile credit, equity, foreign currency, energy markets and declines in consumer spending. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. | |
Certain prior year amounts in the accompanying Financial Statements and Notes to the Financial Statements have been reclassified in order to be comparable with the current year classifications. These reclassifications had no effect on previously reported net income. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 2. New Accounting Pronouncements |
During the nine months ended September 30, 2013, we adopted a Financial Accounting Standards Board (“FASB”) accounting standards update that amends accounting guidance to require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amounts reclassified are required by GAAP to be reclassified to net income in their entirety in the same reporting period. The disclosures required by this accounting standards update are included in this report. | |
During the nine months ended September 30, 2013, we adopted an accounting standards update that amends accounting guidance for the release of the cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this accounting standard update did not have a significant impact on our consolidated financial position, results of operations or cash flows. |
Prepaids_and_Other_Current_Ass
Prepaids and Other Current Assets, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||||||||
Prepaids and Other Current Assets, Net | Note 3. Prepaids and Other Current Assets, net | ||||||||
Prepaids and other current assets, net consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid expenses | $ | 51.6 | $ | 23.3 | |||||
Refundable and prepaid income taxes | 28 | 28.5 | |||||||
Inventories | 1.7 | 6.7 | |||||||
Deferred financing costs - current portion | 9 | 8.9 | |||||||
Assets held for sale (1) | 9.3 | 23.9 | |||||||
Total Prepaids and other current assets | $ | 99.6 | $ | 91.3 | |||||
-1 | Assets held for sale primarily consists of machinery and equipment and goodwill. |
Intangible_Assets_Net_and_Good
Intangible Assets, Net and Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets, Net and Goodwill | Note 4. Intangible Assets, net and Goodwill | ||||||||||||||||||||||||
Intangible assets, net and goodwill consist of the following: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 488.5 | $ | (60.6 | ) | $ | 427.9 | $ | 485.6 | $ | (46.2 | ) | $ | 439.4 | |||||||||||
Favorable leases | 170.9 | (47.3 | ) | 123.6 | 183.1 | (40.2 | ) | 142.9 | |||||||||||||||||
Subtotal | 659.4 | (107.9 | ) | 551.5 | 668.7 | (86.4 | ) | 582.3 | |||||||||||||||||
Indefinite lived intangible assets - Brand | $ | 2,247.80 | $ | — | $ | 2,247.80 | $ | 2,228.90 | $ | — | $ | 2,228.90 | |||||||||||||
Intangible assets, net | $ | 2,799.30 | $ | 2,811.20 | |||||||||||||||||||||
Goodwill | $ | 626.5 | $ | 619.2 | |||||||||||||||||||||
We recorded amortization expense on intangible assets of $9.0 million for the three months ended September 30, 2013 and $9.5 million for the same period in the prior year. We recorded amortization expense on intangible assets of $27.4 million for the nine months ended September 30, 2013 and $28.6 million for the same period in the prior year. |
Other_Accrued_Liabilities_and_
Other Accrued Liabilities and Other Liabilities, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Accrued Liabilities and Other Liabilities, Net | Note 5. Other Accrued Liabilities and Other Liabilities, net | ||||||||
Other accrued liabilities and other liabilities consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Accrued payroll and employee-related costs | $ | 26.8 | $ | 44.9 | |||||
Restructuring and other provisions | 10.5 | 14.6 | |||||||
Withholding taxes | 3.2 | 4.1 | |||||||
Interest payable | 36.5 | 16.9 | |||||||
Casualty insurance | 5.9 | 7.3 | |||||||
Gift card liabilities | 11 | 18.2 | |||||||
Income tax payable | 0.2 | 2.8 | |||||||
Deferred income | 23.1 | 18.1 | |||||||
Lease liability | 7.1 | 8 | |||||||
Other | 57.7 | 71.9 | |||||||
Other accrued liabilities | $ | 182 | $ | 206.8 | |||||
Non-current: | |||||||||
Accrued pension | $ | 71.3 | $ | 77.7 | |||||
Unfavorable leases | 130.4 | 169.1 | |||||||
Casualty insurance reserves | 15.1 | 18.6 | |||||||
Retiree health benefits | 8 | 8 | |||||||
Deferred compensation | 5.4 | 7.8 | |||||||
Income tax payable | 30.4 | 26.3 | |||||||
Derivatives liability | 19.7 | 11 | |||||||
Lease liability | 44 | 32.2 | |||||||
Other | 30.5 | 31.7 | |||||||
Other liabilities, net | $ | 354.8 | $ | 382.4 | |||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||
Long-Term Debt | Note 6. Long-Term Debt | ||||||||||||||||||||||||||
Long-term debt consists of the following: | |||||||||||||||||||||||||||
Interest rates (a) | |||||||||||||||||||||||||||
As of | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Maturity | September 30, | December 31, | September 30, | September 30, | |||||||||||||||||||||||
dates | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Tranche A Term Loans | 2017 | $ | 1,004.30 | $ | 1,023.60 | 3.3 | % | N/A | 3.3 | % | N/A | ||||||||||||||||
Tranche B Term Loans (b) | 2019 | 690.8 | 695.1 | 4.7 | % | N/A | 4.7 | % | N/A | ||||||||||||||||||
9 7/8 % Senior Notes | 2018 | 794.5 | 794.5 | 10.1 | % | 10.1 | % | 10.1 | % | 10.1 | % | ||||||||||||||||
11.0% Discount Notes (c) | 2019 | 441.1 | 407.1 | 11.5 | % | 11.5 | % | 11.5 | % | 11.5 | % | ||||||||||||||||
Deferred Premiums on interest rate caps | 2016 | 23.7 | 29 | 2.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||
Other | N/A | 0.8 | 0.9 | ||||||||||||||||||||||||
Total debt | 2,955.20 | 2,950.20 | |||||||||||||||||||||||||
Less: current maturities of debt | (64.4 | ) | (45.1 | ) | |||||||||||||||||||||||
Total long-term debt | $ | 2,890.80 | $ | 2,905.10 | |||||||||||||||||||||||
(a) | Represents the effective interest rate for the instrument computed on a quarterly basis, including the amortization of deferred debt issuance costs and original issue discount, as applicable, and in the case of our term loans, the effect of interest rate caps | ||||||||||||||||||||||||||
(b) | Principal face amount herein is presented net of a discount of $7.1 million at September 30, 2013 and $8.1 million at December 31, 2012. | ||||||||||||||||||||||||||
(c) | Principal face amount herein is presented net of a discount of $138.0 million at September 30, 2013 and $172.0 million at December 31, 2012. | ||||||||||||||||||||||||||
2012 Revolving Credit Facility | |||||||||||||||||||||||||||
As of September 30, 2013, we had no amounts outstanding under the 2012 Revolving Credit Facility. Funds available under the 2012 Revolving Credit Facility for future borrowings may be used to repay other debt, finance debt or share repurchases, acquisitions, capital expenditures and other general corporate purposes. We have a $75.0 million letter of credit sublimit as part of the 2012 Revolving Credit Facility, which reduces our borrowing capacity under this facility by the cumulative amount of outstanding letters of credit. As of September 30, 2013, we had no letters of credit issued against the 2012 Revolving Credit Facility and our borrowing capacity was $130.0 million. | |||||||||||||||||||||||||||
Loss on Early Extinguishment of Debt | |||||||||||||||||||||||||||
We recorded a $23.0 million loss on early extinguishment of debt during the three months ended September 30, 2012 in connection with the refinancing of term loans outstanding under the 2011 Amended Credit Agreement with the 2012 Credit Agreement. We recorded a $34.2 million loss on early extinguishment of debt during the nine months ended September 30, 2012 in connection with the refinancing, as well as prepayments of term loans prior to the refinancing and repurchases of our Discount Notes and Senior Notes. | |||||||||||||||||||||||||||
Interest Expense, net | |||||||||||||||||||||||||||
Interest expense, net consists of the following: | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Tranche A Term Loans | $ | 6.6 | $ | — | $ | 19.8 | $ | — | |||||||||||||||||||
Tranche B Term Loans | 6.7 | — | 19.9 | — | |||||||||||||||||||||||
Secured Term Loan - USD tranche | — | 16.8 | — | 51.2 | |||||||||||||||||||||||
Secured Term Loan - Euro tranche | — | 2.9 | — | 8.8 | |||||||||||||||||||||||
Interest Rate Caps | 1.8 | 1 | 4.8 | 2.9 | |||||||||||||||||||||||
9 7/8 % Senior Notes | 19.7 | 19.6 | 58.9 | 59 | |||||||||||||||||||||||
11.0% Discount Notes | 11.6 | 10.4 | 34 | 33 | |||||||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 2.6 | 3.7 | 7.7 | 10.6 | |||||||||||||||||||||||
Capital lease obligations | 1.6 | 1.9 | 4.9 | 6.2 | |||||||||||||||||||||||
Other | 0.3 | 1.2 | 1.1 | 2.6 | |||||||||||||||||||||||
Interest income | (0.7 | ) | (0.2 | ) | (1.8 | ) | (0.7 | ) | |||||||||||||||||||
Total | $ | 50.2 | $ | 57.3 | $ | 149.3 | $ | 173.6 | |||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | Note 7. Income Taxes | ||||||||||||||||
The U.S. Federal tax statutory rate reconciles to the effective tax rate as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 2 | 1.5 | 1.9 | 1.7 | |||||||||||||
Costs and taxes related to foreign operations | 4.7 | 32.6 | 4.5 | 4.6 | |||||||||||||
Foreign tax rate differential | (14.1 | ) | (10.0 | ) | (14.0 | ) | (14.6 | ) | |||||||||
Foreign exchange differential on tax benefits | — | (1.0 | ) | — | (0.1 | ) | |||||||||||
Change in valuation allowance | (0.4 | ) | — | (0.9 | ) | — | |||||||||||
Change in accrual for tax uncertainties | 0.7 | (2.0 | ) | 1.5 | 0.5 | ||||||||||||
Other | 0.5 | (5.0 | ) | — | 2.4 | ||||||||||||
Effective income tax rate | 28.4 | % | 51.1 | % | 28 | % | 29.5 | % | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 8. Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
The following table displays the change in the components of accumulated other comprehensive income (loss): | |||||||||||||||||||
Foreign | Accumulated | ||||||||||||||||||
Gains (Losses) | Currency | Other | |||||||||||||||||
on Cash Flow | Defined Benefit | Translation | Comprehensive | ||||||||||||||||
Hedges | Pension | Adjustments | Income (Loss) | ||||||||||||||||
Balances at December 31, 2012 | $ | (29.2 | ) | $ | (3.8 | ) | $ | (77.3 | ) | $ | (110.3 | ) | |||||||
Foreign currency translation adjustment | — | — | 31.6 | 31.6 | |||||||||||||||
Reclassification of foreign currency translation adjustment into net income | — | — | (3.0 | ) | (3.0 | ) | |||||||||||||
Net change in fair value of net investment hedges, net of tax | (5.6 | ) | — | — | (5.6 | ) | |||||||||||||
Net change in fair value of interest rate caps/swaps, net of tax | 74.2 | — | — | 74.2 | |||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 2.6 | — | — | 2.6 | |||||||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||
Amortization of prior service costs, net of tax | — | (1.1 | ) | — | (1.1 | ) | |||||||||||||
Amortization of actuarial losses, net of tax | — | 0.5 | — | 0.5 | |||||||||||||||
Balances at September 30, 2013 | $ | 42 | $ | (4.5 | ) | $ | (48.7 | ) | $ | (11.2 | ) | ||||||||
The following table displays the reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||||
Amounts Reclassified from AOCI | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Affected Line Item in the Statements | September 30, | September 30, | |||||||||||||||||
Details about AOCI Components | of Operations | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Gains (Losses) on cash flow hedges: | |||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (1.7 | ) | $ | (0.8 | ) | $ | (4.3 | ) | $ | (2.1 | ) | ||||||
Other operating expenses (income), net | — | (8.4 | ) | — | (8.4 | ) | |||||||||||||
Total before tax | (1.7 | ) | (9.2 | ) | (4.3 | ) | (10.5 | ) | |||||||||||
Income tax (expense) benefit | 0.7 | 3.7 | 1.7 | 4.1 | |||||||||||||||
Net of tax | (1.0 | ) | (5.5 | ) | (2.6 | ) | (6.4 | ) | |||||||||||
Defined benefit pension plan items: | |||||||||||||||||||
Amortization of prior service costs | SG&A (1) | 0.8 | 0.8 | 2 | 1.9 | ||||||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | (0.3 | ) | — | (0.9 | ) | — | ||||||||||||
Total before tax | 0.5 | 0.8 | 1.1 | 1.9 | |||||||||||||||
Income tax (expense) benefit | (0.3 | ) | (0.5 | ) | (0.5 | ) | (0.7 | ) | |||||||||||
Net of tax | 0.2 | 0.3 | 0.6 | 1.2 | |||||||||||||||
Foreign currency translation adjustment: | |||||||||||||||||||
Sale of foreign entity | Other operating expenses (income), net | — | — | 3 | — | ||||||||||||||
Total reclassifications | Net of tax | $ | (0.8 | ) | $ | (5.2 | ) | $ | 1 | $ | (5.2 | ) | |||||||
-1 | Refers to selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||
Fair Value Measurements | Note 9. Fair Value Measurements | ||||||||||||||||||||||||||
The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments, derivatives designated as net investment hedges, investments held in a rabbi trust which consist of money market accounts and mutual funds established to fund a portion of our current and future obligations under our Executive Retirement Plan (“ERP”), and ERP liabilities as well as their location on our condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||
at September 30, 2013 | at December 31, 2012 | ||||||||||||||||||||||||||
Balance Sheet Location | (Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||
Interest rate caps | Other assets, net | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 4.3 | $ | 4.3 | ||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | 122 | 122 | — | 0.8 | 0.8 | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 2 | — | 2 | 6.3 | — | 6.3 | ||||||||||||||||||||
Total assets at fair value | $ | 2 | $ | 127.2 | $ | 129.2 | $ | 6.3 | $ | 5.1 | $ | 11.4 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other liabilities, net | $ | — | $ | 19.7 | $ | 19.7 | $ | — | $ | 11 | $ | 11 | ||||||||||||||
Other: | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 2.7 | 2.7 | — | 4.4 | 4.4 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 5.4 | 5.4 | — | 7.8 | 7.8 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 27.8 | $ | 27.8 | $ | — | $ | 23.2 | $ | 23.2 | |||||||||||||||
Our derivatives are valued using a discounted cash flow analysis that incorporates observable market parameters, such as interest rate yield curves and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by us or the counterparty. | |||||||||||||||||||||||||||
Investment held in a rabbi trust consist of money market funds and mutual funds and the fair value measurements are derived using quoted prices in active markets for the specific funds which are based on Level 1 inputs of the fair value hierarchy. The fair value measurements of the ERP liabilities are derived principally from observable market data which are based on Level 2 inputs of the fair value hierarchy. | |||||||||||||||||||||||||||
At September 30, 2013, the fair value of our variable rate term debt and bonds was estimated at $3.1 billion, compared to a carrying amount of $2.9 billion, net of original issue discount. At December 31, 2012, the fair value of our variable rate term debt and bonds was estimated at $3.1 billion, compared to a carrying amount of $2.9 billion, net of original issue discount. Fair value of variable rate term debt was estimated using inputs based on bid and offer prices and are Level 2 inputs within the fair value hierarchy. Fair value of the Senior Notes and Discount Notes was estimated using quoted market prices and are Level 1 inputs within the fair value hierarchy. | |||||||||||||||||||||||||||
Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to periodic impairment tests. These items primarily include long-lived assets, the Brand and other intangible assets. | |||||||||||||||||||||||||||
With respect to our assets held for sale recorded at fair value, the fair value measurements are typically based on binding purchase prices from acquirers of Company restaurants that we plan to refranchise. In certain cases, our corporate development team may develop fair value estimates for assets held for sale for which there is no binding purchase price. These fair value measurements, which are based on Level 3 inputs, and changes in fair value measurements are reviewed and assessed each quarter for assets classified as held for sale by our corporate development team. Our corporate development team utilizes its knowledge of the FFHR industry and historical experience in refranchising transactions in establishing the valuation process, which is generally based on a market approach. Under the market approach, our corporate development team uses transaction prices for refranchisings that were recently completed, adjusting where necessary for factors specific to the assets held for sale. | |||||||||||||||||||||||||||
Assets held for sale totaled $9.3 million at September 30, 2013 and $23.9 million at December 31, 2012 and consisted primarily of goodwill and machinery and equipment to be sold in connection with refranchisings. | |||||||||||||||||||||||||||
We assess the fair value less costs to sell of assets held for sale each reporting period they remain classified as held for sale. We report subsequent changes in the fair value less costs to sell of assets held for sale as an adjustment to the carrying amount of the assets held for sale. However, the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset at the time it was initially classified as held for sale. We did not record any impairment charges associated with assets held for sale during the three and nine months ended September 30, 2013 as well as during the three months ended September 30, 2012. During the nine months ended September 30, 2012, we recorded impairment losses of $13.2 million associated with long-lived assets for restaurants we classified as held for sale. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Derivative Instruments | Note 10. Derivative Instruments | ||||||||||||||||
We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges, derivatives designated as net investment hedges and those utilized as economic hedges. We use derivatives to manage exposure to fluctuations in interest rates and currency exchange rates. See Note 9 for fair value measurements of our derivative instruments. | |||||||||||||||||
Interest Rate Caps | |||||||||||||||||
We have entered into interest rate cap agreements to manage interest rate risk. Such agreements cap the borrowing rate on variable debt to provide a hedge against the risk of rising rates. At September 30, 2013 and December 31, 2012, we had interest rate cap agreements (notional amount of $1.3 billion and $1.4 billion, respectively) (the “Cap Agreements”) to mitigate the impact of fluctuations in the three-month LIBOR and effectively cap the LIBOR applicable to our variable rate debt at a weighted-average rate of 1.75%. The six year Cap Agreements are a series of individual caplets that reset and settle quarterly through October 19, 2016 consistent with the payment dates of our LIBOR-based term debt. | |||||||||||||||||
Under the terms of the Cap Agreements, if LIBOR resets above a strike price, we will receive the net difference between LIBOR and the strike price. We have elected our applicable rate per annum as Eurocurrency rate determined by reference to LIBOR. In addition, on the quarterly settlement dates, we will remit the deferred premium payment (plus interest) to the counterparty, whether LIBOR resets above or below the strike price. | |||||||||||||||||
The Cap Agreements are designated as cash flow hedges and to the extent they are effective in offsetting the variability of the variable rate interest payments, changes in the derivatives’ fair values are not included in current earnings but are included in accumulated other comprehensive income (AOCI) in the accompanying condensed consolidated balance sheets. At each cap maturity date, the portion of the fair value attributable to the matured cap will be reclassified from AOCI into earnings as a component of interest expense. | |||||||||||||||||
From time to time as we prepay portions of the 2012 Term Loan Facility, we may modify our Cap Agreements to reduce the notional amount. The terms of the Cap Agreements will not otherwise be revised by these modifications. On the modification date, the portion of the fair value attributable to the modified cap will be reclassified from AOCI into earnings as a component of interest expense. | |||||||||||||||||
Cross-currency Rate Swaps | |||||||||||||||||
To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we may, from time to time, hedge a portion of our net investment in one or more of our foreign subsidiaries. At September 30, 2013, we had outstanding cross-currency rate swaps with an aggregate notional value of $430.0 million to hedge a portion of the net investment in our Switzerland subsidiary, Burger King Europe GmbH. A total notional value of $230.0 million of these swaps are contracts to exchange quarterly fixed-rate interest payments we make in Euros for quarterly fixed-rate interest payments we receive in U.S. dollars and mature on October 19, 2016. A total notional value of $200.0 million of these swaps are contracts to exchange quarterly floating-rate interest payments we make in Euros based on EURIBOR for quarterly floating-rate interest payments we receive in U.S. dollars based on LIBOR and mature on September 28, 2017. These cross-currency rate swaps also require the exchange of Euros and U.S. dollar principal payments upon maturity. Changes in the fair value of these instruments are recognized in AOCI to offset the change in the carrying amount of the net investment being hedged. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. | |||||||||||||||||
Forward-Starting Interest Rate Swaps | |||||||||||||||||
At September 30, 2013, we had outstanding three forward-starting interest rate swaps with a total notional value of $2.3 billion to hedge the variability of forecasted interest payments attributable to changes in LIBOR. The forward-starting interest rate swaps effectively fix LIBOR on $1.0 billion of floating-rate debt beginning 2015 and an additional $1.3 billion of floating-rate debt starting 2016. The hedges have a seven year maturity. We account for these hedges as cash flow hedges, and as such, the effective portion of unrealized changes in market value has been recorded in AOCI and is reclassified to income during the period in which the hedge transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings. | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
From time to time, we enter into foreign currency forward contracts to economically hedge the remeasurement of certain foreign currency-denominated intercompany loans receivable and other foreign-currency denominated assets recorded in our consolidated balance sheets. The forward currency forward contracts are not designated as hedging instruments. Gains and losses on foreign currency forward contracts are recognized in other (income) expense, net and are offset by the gains or losses resulting from the settlement of the underlying foreign currency denominated assets and liabilities. At September 30, 2013, we had foreign currency forward contracts with a total notional amount of $51.5 million maturing within the next 3 months. | |||||||||||||||||
Credit Risk | |||||||||||||||||
By entering into derivative instrument contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty. | |||||||||||||||||
Credit-Risk Related Contingent Features | |||||||||||||||||
Our derivative instruments do not contain any credit-risk related contingent features. | |||||||||||||||||
The following tables present the required quantitative disclosures for our derivative instruments: | |||||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
(effective portion) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | (2.4 | ) | $ | (4.0 | ) | $ | 0.9 | $ | (17.2 | ) | ||||||
Forward-starting interest rate swaps | $ | (1.3 | ) | $ | (12.3 | ) | $ | 121.2 | $ | (12.3 | ) | ||||||
Derivatives designated as net investment hedges: | |||||||||||||||||
Cross-currency rate swaps | $ | (16.7 | ) | $ | (2.8 | ) | $ | (9.2 | ) | $ | (0.1 | ) | |||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Earnings | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps - gain (loss) reclassified into interest expense, net | $ | (1.7 | ) | $ | (0.8 | ) | $ | (4.3 | ) | $ | (2.1 | ) | |||||
Interest rate caps - gain (loss) reclassified into other operating expenses (income), net | $ | — | $ | (8.4 | ) | $ | — | $ | (8.4 | ) | |||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other Operating Expenses (Income), Net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | — | $ | (0.9 | ) | $ | — | ||||||||
The net amount of pre-tax gains and losses included in AOCI as of September 30, 2013 that we expect to be reclassified into earnings within the next 12 months is $8.5 million of losses. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 11. Share-Based Compensation |
Share-based incentive awards are provided to employees, directors and other persons who provide services to the Company and its subsidiaries under the terms of various share-based compensation plans. | |
We are currently issuing stock awards under the Burger King Worldwide, Inc. Amended and Restated 2012 Omnibus Incentive Plan (the “Plan”), which increased the shares available for issuance under the Plan from 8,500,000 to 14,500,000. The Plan was approved by our stockholders at our annual meeting on May 15, 2013. | |
During the nine months ended September 30, 2013, approximately 3,015,000 stock options were granted. These awards generally cliff vest five years from the original grant date and expire ten years following the grant date. | |
We recorded $2.4 million of share-based compensation expense in selling, general and administrative expenses for the three months ended September 30, 2013 compared to $1.7 million for the three months ended September 30, 2012. We recorded $7.1 million of share-based compensation expense in selling, general and administrative expenses for the nine months ended September 30, 2013 compared to $9.3 million for the nine months ended September 30, 2012. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | Note 12. Earnings Per Share | ||||||||||||||||
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period adjusted for the dilutive effect of stock options. We exclude stock options from the calculation of diluted earnings per share if the effect of including such stock options is anti-dilutive. | |||||||||||||||||
Basic and diluted earnings per share are as follows (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 68.2 | $ | 6.6 | $ | 166.9 | $ | 69.1 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 351.2 | 350 | 350.9 | 349.4 | |||||||||||||
Effect of dilutive securities | 6.9 | 5 | 6.8 | 3.9 | |||||||||||||
Weighted average shares - diluted | 358.1 | 355 | 357.7 | 353.3 | |||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.02 | $ | 0.48 | $ | 0.2 | |||||||||
Diluted earnings per share | $ | 0.19 | $ | 0.02 | $ | 0.47 | $ | 0.2 | |||||||||
Anti-dilutive stock options outstanding | 2.9 | 0.3 | 2.9 | 3.6 |
Franchise_and_Property_Revenue
Franchise and Property Revenues | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||
Franchise and Property Revenues | Note 13. Franchise and Property Revenues | ||||||||||||||||||||
Franchise and property revenues consist of the following: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Franchise royalties | $ | 171.8 | $ | 158.6 | $ | 486 | $ | 448.1 | |||||||||||||
Property revenues | 54.8 | 42.9 | 159.7 | 106.9 | |||||||||||||||||
Franchise fees and other revenue | 21.5 | 9.6 | 34.6 | 24.7 | |||||||||||||||||
Total | $ | 248.1 | $ | 211.1 | $ | 680.3 | $ | 579.7 | |||||||||||||
The following table presents information relating to the analysis of our restaurant count for the geographic areas and periods indicated. | |||||||||||||||||||||
U.S. & Canada | EMEA | LAC | APAC | Total | |||||||||||||||||
Number of Company restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 183 | 132 | 100 | 3 | 418 | ||||||||||||||||
Openings | — | — | — | — | — | ||||||||||||||||
Closures | (4 | ) | — | (2 | ) | — | (6 | ) | |||||||||||||
Refranchisings | (127 | ) | (113 | ) | (98 | ) | — | (338 | ) | ||||||||||||
Restaurant count at September 30, 2013 | 52 | 19 | — | 3 | 74 | ||||||||||||||||
Number of franchise restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 7,293 | 2,989 | 1,290 | 1,007 | 12,579 | ||||||||||||||||
Openings | 26 | 214 | 66 | 130 | 436 | ||||||||||||||||
Closures | (94 | ) | (45 | ) | (3 | ) | (26 | ) | (168 | ) | |||||||||||
Refranchisings | 127 | 113 | 98 | — | 338 | ||||||||||||||||
Restaurant count at September 30, 2013 | 7,352 | 3,271 | 1,451 | 1,111 | 13,185 | ||||||||||||||||
Number of system-wide restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 7,476 | 3,121 | 1,390 | 1,010 | 12,997 | ||||||||||||||||
Openings | 26 | 214 | 66 | 130 | 436 | ||||||||||||||||
Closures | (98 | ) | (45 | ) | (5 | ) | (26 | ) | (174 | ) | |||||||||||
Refranchisings | — | — | — | — | — | ||||||||||||||||
Restaurant count at September 30, 2013 | 7,404 | 3,290 | 1,451 | 1,114 | 13,259 | ||||||||||||||||
Other_Operating_Expenses_Incom
Other Operating Expenses (Income), Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||||||
Other Operating Expenses (Income), Net | Note 14. Other Operating Expenses (Income), Net | ||||||||||||||||
Other operating expenses (income), net consists of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net (gains) losses on disposal of assets, restaurant closures and refranchisings | $ | 0.3 | $ | 14.1 | $ | 0.6 | $ | 15.2 | |||||||||
Litigation settlements and reserves, net | 0.1 | 0.8 | 0.6 | 1.3 | |||||||||||||
Foreign exchange net losses (gains) | 0.5 | 1.5 | 6.1 | (5.3 | ) | ||||||||||||
Loss on termination of interest rate cap | — | 8.7 | — | 8.7 | |||||||||||||
Equity in net loss (income) from unconsolidated affiliates | 2.9 | (0.4 | ) | 9.7 | 1.4 | ||||||||||||
Other, net | 2.8 | 5.6 | 4.1 | 4.9 | |||||||||||||
Other operating expenses (income), net | $ | 6.6 | $ | 30.3 | $ | 21.1 | $ | 26.2 | |||||||||
Closures and Dispositions | |||||||||||||||||
Gains and losses on closures and dispositions represent sales of Company properties and other costs related to restaurant closures and refranchisings, and are recorded in other operating (income) expenses, net in the accompanying condensed consolidated statements of operations. Gains and losses recognized in the current period may reflect closures and refranchisings that occurred in previous periods. | |||||||||||||||||
During the three months ended September 30, 2013, net (gains) losses on disposal of assets, restaurant closures and refranchisings consisted of net losses associated with refranchisings of $0.4 million and net gains associated with asset disposals and restaurant closures of $0.1 million. | |||||||||||||||||
During the three months ended September 30, 2012, net (gains) losses on disposal of assets, restaurant closures and refranchisings consisted of net losses associated with refranchisings of $12.4 million and net losses associated with asset disposals and restaurant closures of $1.7 million. | |||||||||||||||||
During the nine months ended September 30, 2013, net (gains) losses on disposal of assets, restaurant closures and refranchisings consisted of net gains associated with refranchisings of $2.3 million, net losses from sale of subsidiaries of $1.0 million and net losses associated with asset disposals and restaurant closures of $1.9 million. | |||||||||||||||||
During the nine months ended September 30, 2012, net (gains) losses on disposal of assets, restaurant closures and refranchisings consisted of net gains associated with refranchisings of $4.8 million, impairment losses associated with long-lived assets for Company restaurants of $13.2 million and net losses associated with asset disposals and restaurant closures of $6.8 million. |
Guarantees_Commitments_and_Con
Guarantees, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | Note 15. Guarantees, Commitments and Contingencies |
In some of the matters described below, loss contingencies are not both probable and estimable in the view of management and, accordingly, reserves have not been established for those matters. However, information is provided below or included in Note 19, “Commitments and Contingencies” to the Consolidated Financial Statements of our Annual Report on Form 10-K filed with the SEC on February 22, 2013 regarding the nature of the contingency and, where specified, the amount of the claim associated with the loss contingency. | |
Litigation | |
On March 1, 2013, a putative class action lawsuit was filed against Burger King Corporation in the U.S. District Court of Maryland. The complaint alleges that BKC and/or its agents sent unsolicited advertisements by fax to thousands of consumers in Maryland and elsewhere in the United States to promote its home delivery program in violation of the Telephone Consumers Protection Act. It is not possible at this time to determine the likelihood of class certification in this case or reasonably estimate the probability or amount of liability for monetary damages on a class wide basis. | |
From time to time, we are involved in other legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property. | |
Guarantees | |
From time to time, we enter into agreements under which we guarantee loans made by third parties to qualified franchisees. As of September 30, 2013, there were $107.0 million of loans outstanding to franchisees that we had guaranteed under five such programs, with additional franchisee borrowing capacity of approximately $219.8 million remaining. Our maximum guarantee liability under these five programs is limited to an aggregate of $31.9 million, assuming full utilization of all borrowing capacity. As of September 30, 2013, the liability reflecting the fair value of these guarantee obligations was $4.3 million. No events of default have occurred and no significant payments have been made by us in connection with these guarantees through September 30, 2013. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | Note 16. Segment Reporting | ||||||||||||||||
We operate in the fast food hamburger restaurant category of the quick service restaurant segment of the restaurant industry. Revenues include retail sales at Company restaurants and franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees as well as property income we derive from properties we lease or sublease to our franchisees. Our business is managed in four distinct geographic segments: (1) United States (“U.S.”) and Canada; (2) Europe, the Middle East and Africa (“EMEA”); (3) Latin America and the Caribbean (“LAC”); and (4) Asia Pacific (“APAC”). | |||||||||||||||||
Revenues by geographic segment consist of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
U.S. and Canada | $ | 172.1 | $ | 288 | $ | 509.6 | $ | 1,032.30 | |||||||||
EMEA | 71.3 | 111.7 | 265.7 | 354.2 | |||||||||||||
LAC | 18.1 | 33.5 | 65.2 | 96.3 | |||||||||||||
APAC | 13.6 | 22.5 | 40.6 | 83.6 | |||||||||||||
Total revenues | $ | 275.1 | $ | 455.7 | $ | 881.1 | $ | 1,566.40 | |||||||||
Only the U.S. represented more than 10% of our total revenues during the three months ended September 30, 2013 and only the U.S. and Germany represented more than 10% of our total revenues during the three months ended September 30, 2012, the nine months ended September 30, 2013 and the nine months ended September 30, 2012. Revenues in the U.S. totaled $164.5 million for the three months ended September 30, 2013, compared to $246.0 million for the three months ended September 30, 2012. Revenues in the U.S. totaled $455.6 million for the nine months ended September 30, 2013, compared to $916.6 million for the nine months ended September 30, 2012. Revenues in Germany totaled $98.1 million for the nine months ended September 30, 2013, $53.7 million for the three months ended September 30, 2012 and $161.2 million for the nine months ended September 30, 2012. | |||||||||||||||||
The unallocated amounts reflected in the table below include corporate support costs in areas such as facilities, finance, human resources, information technology, legal, marketing and supply chain management, which benefit all of our geographic segments and system wide restaurants and are not allocated specifically to any of the geographic segments. | |||||||||||||||||
Our measure of segment income is adjusted EBITDA. Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted to exclude specifically identified items that management believes do not directly reflect our core operations and assists management in comparing segment performance by removing the impact of certain items that management believes do not reflect our core operations. A reconciliation of segment income to net income consists of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment Income: | |||||||||||||||||
U.S. and Canada | $ | 120.9 | $ | 112.1 | $ | 326.6 | $ | 341.1 | |||||||||
EMEA | 49.2 | 42.8 | 136.5 | 118.4 | |||||||||||||
LAC | 16 | 17.2 | 46.6 | 50.2 | |||||||||||||
APAC | 11.4 | 9.9 | 33.2 | 28.7 | |||||||||||||
Unallocated Management G&A | (21.5 | ) | (19.1 | ) | (59.4 | ) | (58.5 | ) | |||||||||
Adjusted EBITDA | 176 | 162.9 | 483.5 | 479.9 | |||||||||||||
Share-based compensation and non-cash incentive compensation expense | 3.5 | 2.6 | 9.4 | 6.1 | |||||||||||||
Global portfolio realignment project costs | 4.7 | 7 | 23.6 | 20.1 | |||||||||||||
Business combination agreement expenses | — | 0.6 | — | 25.7 | |||||||||||||
Other operating expenses (income), net | 6.6 | 30.3 | 21.1 | 26.2 | |||||||||||||
EBITDA | 161.2 | 122.4 | 429.4 | 401.8 | |||||||||||||
Depreciation and amortization | 15.7 | 28.6 | 48.3 | 96 | |||||||||||||
Income from operations | 145.5 | 93.8 | 381.1 | 305.8 | |||||||||||||
Interest expense, net | 50.2 | 57.3 | 149.3 | 173.6 | |||||||||||||
Loss on early extinguishment of debt | — | 23 | — | 34.2 | |||||||||||||
Income tax expense | 27.1 | 6.9 | 64.9 | 28.9 | |||||||||||||
Net income | $ | 68.2 | $ | 6.6 | $ | 166.9 | $ | 69.1 | |||||||||
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||
Supplemental Financial Information | Note 17. Supplemental Financial Information | ||||||||||||||||||||||||||||
On October 19, 2010, Burger King Corporation (“BKC”) issued the Senior Notes. The Senior Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by Burger King Holdings, Inc. (“Holdings”) and the U.S. subsidiaries of BKC (the “Guarantors”). On April 19, 2011, Burger King Capital Holdings, LLC (“BKCH”) and Burger King Capital Finance, Inc. (“BKCF” and together with BKCH, the “Issuers”) issued the Discount Notes. In August 2012, the Company entered into a Supplemental Indenture with respect to the Senior Notes and a Supplemental Indenture with respect to the Discount Notes (the “Supplemental Indentures”) to guarantee BKC’s obligations under the Senior Notes and the Issuers’ obligations under the Discount Notes. The Supplemental Indentures allow the financial reporting obligation under the Indentures to be satisfied through the reporting of the Company’s consolidated financial information. The 2012 Credit Agreement allows the financial reporting obligation of BKC to be satisfied through the reporting of the Company’s consolidated financial information, provided that the financial information of BKC and its subsidiaries is presented on a standalone basis. The non-U.S. subsidiaries are identified below as Non-Guarantors. | |||||||||||||||||||||||||||||
The following represents the condensed consolidating financial information for BKC (Issuer), the Guarantors and the non-U.S. subsidiaries of BKC (the “Non-Guarantors”), together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of BKW is combined with the financial information of BKCF and presented in a single column under the heading “BKW.” Selling, general and administrative expenses in the condensed consolidating statements of operations only pertain to professional fees and other transaction costs incurred by BKW associated with the Business Combination Agreement. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had BKC, Guarantors and Non-Guarantors operated as independent entities. | |||||||||||||||||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3.3 | $ | — | $ | 600.6 | $ | — | $ | 160.4 | $ | — | $ | 764.3 | |||||||||||||||
Trade and notes receivable, net | — | — | 118.2 | — | 46.4 | — | 164.6 | ||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.7 | 76.5 | — | 22.4 | — | 99.6 | ||||||||||||||||||||||
Deferred income taxes, net | 0.1 | 1.7 | 32.3 | — | 3.9 | — | 38 | ||||||||||||||||||||||
Total current assets | 3.4 | 2.4 | 827.6 | — | 233.1 | — | 1,066.50 | ||||||||||||||||||||||
Property and equipment, net | — | — | 732.2 | — | 72.4 | — | 804.6 | ||||||||||||||||||||||
Intangible assets, net | — | — | 1,536.50 | — | 1,262.80 | — | 2,799.30 | ||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 266.9 | — | 626.5 | ||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 155.4 | — | 12 | — | 167.4 | ||||||||||||||||||||||
Intercompany receivable | 10.2 | — | 58 | — | — | (68.2 | ) | — | |||||||||||||||||||||
Investment in subsidiaries | 1,380.80 | 1,792.50 | 1,576.20 | 1,792.50 | — | (6,542.0 | ) | — | |||||||||||||||||||||
Other assets, net | — | 5.9 | 239.1 | — | 61.9 | — | 306.9 | ||||||||||||||||||||||
Total assets | $ | 1,394.40 | $ | 1,800.80 | $ | 5,484.60 | $ | 1,792.50 | $ | 1,909.10 | $ | (6,610.2 | ) | $ | 5,771.20 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 20.6 | $ | — | $ | 5.2 | $ | — | $ | 25.8 | |||||||||||||||
Accrued advertising | — | — | 69.5 | — | 31.7 | — | 101.2 | ||||||||||||||||||||||
Other accrued liabilities | (0.4 | ) | (11.8 | ) | 157 | — | 37.2 | — | 182 | ||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 71.8 | — | 3.2 | — | 75 | ||||||||||||||||||||||
Total current liabilities | (0.4 | ) | (11.8 | ) | 318.9 | — | 77.3 | — | 384 | ||||||||||||||||||||
Term debt, net of current portion | — | 441.1 | 2,449.70 | — | — | — | 2,890.80 | ||||||||||||||||||||||
Capital leases, net of current portion | — | — | 59.5 | — | 19 | — | 78.5 | ||||||||||||||||||||||
Other liabilities, net | 0.4 | — | 308.8 | — | 45.6 | — | 354.8 | ||||||||||||||||||||||
Payables to affiliates | — | 0.5 | — | — | 67.7 | (68.2 | ) | — | |||||||||||||||||||||
Deferred income taxes, net | (4.2 | ) | (0.3 | ) | 575.9 | — | 93.1 | — | 664.5 | ||||||||||||||||||||
Total liabilities | (4.2 | ) | 429.5 | 3,712.80 | — | 302.7 | (68.2 | ) | 4,372.60 | ||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | ||||||||||||||||||||||
Additional paid-in capital | 1,223.00 | 1,110.20 | 1,442.20 | 1,443.20 | 1,313.30 | (5,308.9 | ) | 1,223.00 | |||||||||||||||||||||
Retained earnings | 183.3 | 281.8 | 361.5 | 360.5 | 307.7 | (1,311.5 | ) | 183.3 | |||||||||||||||||||||
Accumulated other comprehensive loss | (11.2 | ) | (11.2 | ) | (11.2 | ) | (11.2 | ) | (44.8 | ) | 78.4 | (11.2 | ) | ||||||||||||||||
Total stockholders’ equity | 1,398.60 | 1,380.80 | 1,792.50 | 1,792.50 | 1,576.20 | (6,542.0 | ) | 1,398.60 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,394.40 | $ | 1,810.30 | $ | 5,505.30 | $ | 1,792.50 | $ | 1,878.90 | $ | (6,610.2 | ) | $ | 5,771.20 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.1 | $ | — | $ | 355.3 | $ | — | $ | 191.3 | $ | — | $ | 546.7 | |||||||||||||||
Trade and notes receivable, net | — | — | 128.8 | — | 50.2 | — | 179 | ||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.6 | 70.9 | — | 19.8 | — | 91.3 | ||||||||||||||||||||||
Deferred income taxes, net | 0.7 | 20.3 | 36.3 | — | 16.2 | — | 73.5 | ||||||||||||||||||||||
Total current assets | 0.8 | 20.9 | 591.3 | — | 277.5 | — | 890.5 | ||||||||||||||||||||||
Property and equipment, net | — | — | 754.7 | — | 130.5 | — | 885.2 | ||||||||||||||||||||||
Intangible assets, net | — | — | 1,554.70 | — | 1,256.50 | — | 2,811.20 | ||||||||||||||||||||||
Goodwill | — | — | 355 | — | 264.2 | — | 619.2 | ||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 167 | — | 13.4 | — | 180.4 | ||||||||||||||||||||||
Intercompany receivable | 3.8 | — | 190.9 | — | — | (194.7 | ) | — | |||||||||||||||||||||
Investment in subsidiaries | 1,169.50 | 1,537.60 | 1,517.20 | 1,537.60 | — | (5,761.9 | ) | — | |||||||||||||||||||||
Other assets, net | — | 6.5 | 106.6 | — | 64.4 | — | 177.5 | ||||||||||||||||||||||
Total assets | $ | 1,174.10 | $ | 1,565.00 | $ | 5,237.40 | $ | 1,537.60 | $ | 2,006.50 | $ | (5,956.6 | ) | $ | 5,564.00 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 45 | $ | — | $ | 23.7 | $ | — | $ | 68.7 | |||||||||||||||
Accrued advertising | — | — | 30.7 | — | 35.8 | — | 66.5 | ||||||||||||||||||||||
Other accrued liabilities | (0.3 | ) | (11.8 | ) | 157.1 | — | 61.8 | — | 206.8 | ||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 52.6 | — | 3.2 | — | 55.8 | ||||||||||||||||||||||
Total current liabilities | (0.3 | ) | (11.8 | ) | 285.4 | — | 124.5 | — | 397.8 | ||||||||||||||||||||
Term debt, net of current portion | — | 407.1 | 2,498.00 | — | — | — | 2,905.10 | ||||||||||||||||||||||
Capital leases, net of current portion | — | — | 66.2 | — | 22.2 | — | 88.4 | ||||||||||||||||||||||
Other liabilities, net | 0.2 | — | 322.6 | — | 59.6 | — | 382.4 | ||||||||||||||||||||||
Payables to affiliates | 3.6 | 0.5 | — | — | 190.6 | (194.7 | ) | — | |||||||||||||||||||||
Deferred income taxes, net | (4.4 | ) | (0.3 | ) | 527.6 | — | 92.4 | — | 615.3 | ||||||||||||||||||||
Total liabilities | (0.9 | ) | 395.5 | 3,699.80 | — | 489.3 | (194.7 | ) | 4,389.00 | ||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | ||||||||||||||||||||||
Additional paid-in capital | 1,205.70 | 1,164.90 | 1,478.30 | 1,479.30 | 1,386.90 | (5,509.4 | ) | 1,205.70 | |||||||||||||||||||||
Retained earnings | 76.1 | 114.9 | 169.6 | 168.6 | 206.7 | (659.8 | ) | 76.1 | |||||||||||||||||||||
Accumulated other comprehensive loss | (110.3 | ) | (110.3 | ) | (110.3 | ) | (110.3 | ) | (76.4 | ) | 407.3 | (110.3 | ) | ||||||||||||||||
Total stockholders’ equity | 1,175.00 | 1,169.50 | 1,537.60 | 1,537.60 | 1,517.20 | (5,761.9 | ) | 1,175.00 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,174.10 | $ | 1,565.00 | $ | 5,237.40 | $ | 1,537.60 | $ | 2,006.50 | $ | (5,956.6 | ) | $ | 5,564.00 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 18.7 | $ | — | $ | 8.3 | $ | — | $ | 27 | |||||||||||||||
Franchise and property revenues | — | — | 167.1 | — | 81 | — | 248.1 | ||||||||||||||||||||||
Intercompany revenues | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total revenues | — | — | 185.8 | — | 89.3 | — | 275.1 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 5.9 | — | 2.6 | — | 8.5 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 5.1 | — | 2.3 | — | 7.4 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 4.6 | — | 2.4 | — | 7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 15.6 | — | 7.3 | — | 22.9 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 29 | — | 11.5 | — | 40.5 | ||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 43.8 | — | 15.8 | — | 59.6 | ||||||||||||||||||||||
Intercompany expenses | — | — | (0.6 | ) | — | 0.6 | — | — | |||||||||||||||||||||
Other operating expenses (income), net | — | — | 0.6 | — | 6 | — | 6.6 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 88.4 | — | 41.2 | — | 129.6 | ||||||||||||||||||||||
Income from operations | — | — | 97.4 | — | 48.1 | — | 145.5 | ||||||||||||||||||||||
Interest expense, net | — | 11.8 | 37.6 | — | 0.8 | — | 50.2 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | — | — | — | ||||||||||||||||||||||
Income (loss) before income taxes | — | (11.8 | ) | 59.8 | — | 47.3 | — | 95.3 | |||||||||||||||||||||
Income tax expense (benefit) | — | (3.2 | ) | 17.2 | — | 13.1 | — | 27.1 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (8.6 | ) | 42.6 | — | 34.2 | — | 68.2 | |||||||||||||||||||||
Equity in earnings of subsidiaries | 68.2 | 76.8 | 34.2 | 76.8 | — | (256.0 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 68.2 | $ | 68.2 | $ | 76.8 | $ | 76.8 | $ | 34.2 | $ | (256.0 | ) | $ | 68.2 | ||||||||||||||
Total comprehensive income (loss) | $ | 100.9 | $ | 100.9 | $ | 109.5 | $ | 109.5 | $ | 78.8 | $ | (398.7 | ) | $ | 100.9 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 57.2 | $ | — | $ | 143.6 | $ | — | $ | 200.8 | |||||||||||||||
Franchise and property revenues | — | — | 455.6 | — | 224.7 | — | 680.3 | ||||||||||||||||||||||
Intercompany revenues | — | — | 1.6 | — | (1.6 | ) | — | — | |||||||||||||||||||||
Total revenues | — | — | 514.4 | — | 366.7 | — | 881.1 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 18.2 | — | 45.6 | — | 63.8 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 16 | — | 45.6 | — | 61.6 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 15.7 | — | 36.5 | — | 52.2 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 49.9 | — | 127.7 | — | 177.6 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 81.2 | — | 32.3 | — | 113.5 | ||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 131 | — | 56.8 | — | 187.8 | ||||||||||||||||||||||
Intercompany expenses | — | — | (0.9 | ) | — | 0.9 | — | — | |||||||||||||||||||||
Other operating expenses, net | — | — | 14.8 | — | 6.3 | — | 21.1 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 276 | — | 224 | — | 500 | ||||||||||||||||||||||
Income from operations | — | — | 238.4 | — | 142.7 | — | 381.1 | ||||||||||||||||||||||
Interest expense, net | — | 34.5 | 111.8 | — | 3 | — | 149.3 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | — | — | — | ||||||||||||||||||||||
Income (loss) before income taxes | — | (34.5 | ) | 126.6 | — | 139.7 | — | 231.8 | |||||||||||||||||||||
Income tax expense (benefit) | — | (9.5 | ) | 35.7 | — | 38.7 | — | 64.9 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (25.0 | ) | 90.9 | — | 101 | — | 166.9 | |||||||||||||||||||||
Equity in earnings of subsidiaries | 166.9 | 191.9 | 101 | 191.9 | — | (651.7 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 166.9 | $ | 166.9 | $ | 191.9 | $ | 191.9 | $ | 101 | $ | (651.7 | ) | $ | 166.9 | ||||||||||||||
Total comprehensive income (loss) | $ | 266 | $ | 266 | $ | 291 | $ | 291 | $ | 132.6 | $ | (980.6 | ) | $ | 266 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 126.8 | $ | — | $ | 117.8 | $ | — | $ | 244.6 | |||||||||||||||
Franchise and property revenues | — | — | 141.9 | — | 69.2 | — | 211.1 | ||||||||||||||||||||||
Intercompany revenues | — | — | 1.7 | — | (5.0 | ) | 3.3 | — | |||||||||||||||||||||
Total revenues | — | — | 270.4 | — | 182 | 3.3 | 455.7 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 41.6 | — | 38.1 | — | 79.7 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 37.4 | — | 34.5 | — | 71.9 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 32.6 | — | 32.1 | — | 64.7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 111.6 | — | 104.7 | — | 216.3 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 27.7 | — | 10 | — | 37.7 | ||||||||||||||||||||||
Selling, general and administrative expenses | (1.7 | ) | — | 52.1 | — | 27.2 | — | 77.6 | |||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | (2.0 | ) | 3.3 | — | ||||||||||||||||||||
Other operating expenses, net | — | — | 12.7 | — | 17.6 | — | 30.3 | ||||||||||||||||||||||
Total operating costs and expenses | (1.7 | ) | — | 202.8 | — | 157.5 | 3.3 | 361.9 | |||||||||||||||||||||
Income (loss) from operations | 1.7 | — | 67.6 | — | 24.5 | — | 93.8 | ||||||||||||||||||||||
Interest expense, net | — | 10.7 | 44.1 | — | 2.5 | — | 57.3 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 23 | — | — | — | 23 | ||||||||||||||||||||||
Income (loss) before income taxes | 1.7 | (10.7 | ) | 0.5 | — | 22 | — | 13.5 | |||||||||||||||||||||
Income tax expense (benefit) | 3.6 | (3.6 | ) | 5.1 | — | 1.8 | — | 6.9 | |||||||||||||||||||||
Income (loss) from continuing operations | (1.9 | ) | (7.1 | ) | (4.6 | ) | — | 20.2 | — | 6.6 | |||||||||||||||||||
Equity in earnings of subsidiaries | 8.5 | 15.6 | 20.2 | 15.6 | — | (59.9 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 6.6 | $ | 8.5 | $ | 15.6 | $ | 15.6 | $ | 20.2 | $ | (59.9 | ) | $ | 6.6 | ||||||||||||||
Total comprehensive income (loss) | $ | 24 | $ | 25.9 | $ | 33 | $ | 33 | $ | 41.8 | $ | (133.7 | ) | $ | 24 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 590.9 | $ | — | $ | 395.8 | $ | — | $ | 986.7 | |||||||||||||||
Franchise and property revenues | — | — | 381.6 | — | 198.1 | — | 579.7 | ||||||||||||||||||||||
Intercompany revenues | — | — | 5 | — | (5.0 | ) | — | — | |||||||||||||||||||||
Total revenues | — | — | 977.5 | — | 588.9 | — | 1,566.40 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 196 | — | 128.7 | — | 324.7 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 177.5 | — | 114.1 | — | 291.6 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 145.2 | — | 114.5 | — | 259.7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 518.7 | — | 357.3 | — | 876 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 62.7 | — | 27.3 | — | 90 | ||||||||||||||||||||||
Selling, general and administrative expenses | 14 | — | 168.1 | — | 86.3 | — | 268.4 | ||||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | 1.3 | — | — | |||||||||||||||||||||
Other operating expenses, net | — | — | 35.1 | — | (8.9 | ) | — | 26.2 | |||||||||||||||||||||
Total operating costs and expenses | 14 | — | 783.3 | — | 463.3 | — | 1,260.60 | ||||||||||||||||||||||
Income (loss) from operations | (14.0 | ) | — | 194.2 | — | 125.6 | — | 305.8 | |||||||||||||||||||||
Interest expense, net | — | 33.1 | 133.3 | — | 7.2 | — | 173.6 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 9.7 | 24.5 | — | — | — | 34.2 | ||||||||||||||||||||||
Income (loss) before income taxes | (14.0 | ) | (42.8 | ) | 36.4 | — | 118.4 | — | 98 | ||||||||||||||||||||
Income tax expense (benefit) | (0.4 | ) | (11.9 | ) | 24.2 | — | 17 | — | 28.9 | ||||||||||||||||||||
Income (loss) from continuing operations | (13.6 | ) | (30.9 | ) | 12.2 | — | 101.4 | — | 69.1 | ||||||||||||||||||||
Equity in earnings of subsidiaries | 82.7 | 113.6 | 101.4 | 113.6 | — | (411.3 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 69.1 | $ | 82.7 | $ | 113.6 | $ | 113.6 | $ | 101.4 | $ | (411.3 | ) | $ | 69.1 | ||||||||||||||
Total comprehensive income (loss) | $ | 57 | $ | 70.6 | $ | 101.5 | $ | 101.5 | $ | 96 | $ | (369.6 | ) | $ | 57 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||
Net income | $ | 166.9 | $ | 166.9 | $ | 191.9 | $ | 191.9 | $ | 101 | $ | (651.7 | ) | $ | 166.9 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (166.9 | ) | (191.9 | ) | (101.0 | ) | (191.9 | ) | — | 651.7 | — | ||||||||||||||||||
Depreciation and amortization | — | — | 32.6 | — | 15.8 | — | 48.4 | ||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 34.5 | 7.2 | — | — | — | 41.7 | ||||||||||||||||||||||
Equity in net loss from unconsolidated affiliates | — | — | 4.5 | — | 5.2 | — | 9.7 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | (0.5 | ) | — | 1.5 | — | 1 | |||||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (1.1 | ) | — | (0.5 | ) | — | (1.6 | ) | |||||||||||||||||||
Realized loss on terminated caps/swaps | — | — | 4.3 | — | — | — | 4.3 | ||||||||||||||||||||||
Net loss (gain) on refranchisings and dispositions of assets | — | — | 5.4 | — | (7.9 | ) | — | (2.5 | ) | ||||||||||||||||||||
Bad debt expense, net of recoveries | — | — | 2.2 | — | — | — | 2.2 | ||||||||||||||||||||||
Share-based compensation | — | — | 5.4 | — | 1.7 | — | 7.1 | ||||||||||||||||||||||
Deferred income taxes | — | 16.5 | 7.6 | — | 9.2 | — | 33.3 | ||||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | |||||||||||||||||||||||||||||
Trade and notes receivables | — | — | 7.7 | — | (1.4 | ) | — | 6.3 | |||||||||||||||||||||
Prepaids and other current assets | — | — | (1.0 | ) | — | 0.8 | — | (0.2 | ) | ||||||||||||||||||||
Accounts and drafts payable | — | — | (24.6 | ) | — | (11.1 | ) | — | (35.7 | ) | |||||||||||||||||||
Accrued advertising | — | — | 14 | — | (4.3 | ) | — | 9.7 | |||||||||||||||||||||
Other accrued liabilities | — | 9.5 | — | (14.4 | ) | — | (4.9 | ) | |||||||||||||||||||||
Other long-term assets and liabilities | — | (19.2 | ) | — | 1.2 | — | (18.0 | ) | |||||||||||||||||||||
Net cash provided by operating activities | — | 26 | 144.9 | — | 96.8 | — | 267.7 | ||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (8.5 | ) | — | (2.3 | ) | — | (10.8 | ) | |||||||||||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 45.1 | — | 3.6 | — | 48.7 | ||||||||||||||||||||||
Payments for acquired franchisee operations, net of cash acquired | (11.9 | ) | — | (11.9 | ) | ||||||||||||||||||||||||
Return of investment on direct financing leases | — | — | 10.9 | — | 1 | — | 11.9 | ||||||||||||||||||||||
Other investing activities | 0.2 | 0.2 | |||||||||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | 35.8 | — | 2.3 | — | 38.1 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (35.5 | ) | — | (2.6 | ) | — | (38.1 | ) | |||||||||||||||||||
Proceeds from stock option exercises | 2.7 | — | — | — | — | — | 2.7 | ||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 4.2 | — | — | — | 4.2 | ||||||||||||||||||||||
Dividends paid on common stock | (59.7 | ) | — | — | — | — | — | (59.7 | ) | ||||||||||||||||||||
Intercompany financing | 60.2 | (26.0 | ) | 95.9 | — | (130.1 | ) | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 3.2 | (26.0 | ) | 64.6 | — | (132.7 | ) | — | (90.9 | ) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | 2.7 | — | 2.7 | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 3.2 | — | 245.3 | — | (30.9 | ) | — | 217.6 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 0.1 | — | 355.3 | — | 191.3 | — | 546.7 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 3.3 | $ | — | $ | 600.6 | $ | — | $ | 160.4 | $ | — | $ | 764.3 | |||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||
Net income | $ | 69.1 | $ | 82.7 | $ | 113.6 | $ | 113.6 | $ | 101.4 | $ | (411.3 | ) | 69.1 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (82.7 | ) | (113.6 | ) | (101.4 | ) | (113.6 | ) | — | 411.3 | — | ||||||||||||||||||
Depreciation and amortization | — | — | 65.6 | — | 30.4 | — | 96 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 9.7 | 24.5 | — | — | — | 34.2 | ||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 33.2 | 10.4 | — | — | — | 43.6 | ||||||||||||||||||||||
Equity in net loss from unconsolidated affiliates | — | — | 0.1 | — | 1.3 | — | 1.4 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | (3.7 | ) | — | (1.7 | ) | — | (5.4 | ) | |||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (1.8 | ) | — | — | — | (1.8 | ) | ||||||||||||||||||||
Realized loss on terminated caps/swaps | — | — | 10.7 | — | — | — | 10.7 | ||||||||||||||||||||||
Net loss (gain) on refranchisings and dispositions of assets | — | — | 20.3 | — | (9.9 | ) | — | 10.4 | |||||||||||||||||||||
Bad debt expense, net of recoveries | — | — | 3 | — | (0.1 | ) | — | 2.9 | |||||||||||||||||||||
Share-based compensation | — | — | 8.4 | — | 0.9 | — | 9.3 | ||||||||||||||||||||||
Deferred income taxes | — | 0.1 | 7.9 | — | — | — | 8 | ||||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | |||||||||||||||||||||||||||||
Trade and notes receivables | — | — | (6.7 | ) | — | 2.6 | — | (4.1 | ) | ||||||||||||||||||||
Prepaids and other current assets | — | — | (4.5 | ) | — | (4.4 | ) | — | (8.9 | ) | |||||||||||||||||||
Accounts and drafts payable | — | — | (18.5 | ) | — | (16.2 | ) | — | (34.7 | ) | |||||||||||||||||||
Accrued advertising | — | — | (41.0 | ) | — | 10 | — | (31.0 | ) | ||||||||||||||||||||
Other accrued liabilities | 4.8 | (18.4 | ) | (7.1 | ) | — | (27.0 | ) | — | (47.7 | ) | ||||||||||||||||||
Other long-term assets and liabilities | — | — | (11.3 | ) | — | 3.9 | — | (7.4 | ) | ||||||||||||||||||||
Net cash provided by (used for) operating activities | (8.8 | ) | (6.3 | ) | 68.5 | — | 91.2 | — | 144.6 | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (29.5 | ) | — | (8.2 | ) | — | (37.7 | ) | |||||||||||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 54.3 | — | 15.7 | — | 70 | ||||||||||||||||||||||
Payments for acquired franchisee operations, net of cash acquired | — | — | — | — | (15.3 | ) | — | (15.3 | ) | ||||||||||||||||||||
Return of investment on direct financing leases | — | — | 9.4 | — | 1 | — | 10.4 | ||||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | 34.2 | — | (6.8 | ) | — | 27.4 | |||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||
Proceeds from term debt | — | — | 1,733.50 | — | — | — | 1,733.50 | ||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (1,752.6 | ) | — | (2.1 | ) | — | (1,754.7 | ) | |||||||||||||||||||
Extinguishment of debt | — | (62.6 | ) | (50.2 | ) | — | — | — | (112.8 | ) | |||||||||||||||||||
Payment of financing costs | — | — | (16.0 | ) | — | — | — | (16.0 | ) | ||||||||||||||||||||
Proceeds from stock option exercises | 1.3 | — | — | — | — | — | 1.3 | ||||||||||||||||||||||
Intercompany financing | 7.9 | 68.9 | (77.0 | ) | — | 0.2 | — | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 9.2 | 6.3 | (162.3 | ) | — | (1.9 | ) | — | (148.7 | ) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | 0.5 | — | 0.5 | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.4 | 0 | (59.6 | ) | — | 83 | — | 23.8 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 0.2 | — | 287.1 | — | 171.7 | — | 459 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 0.6 | $ | 0 | $ | 227.5 | $ | — | $ | 254.7 | $ | — | $ | 482.8 | |||||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events |
Dividend | |
On October 27, 2013, our Board of Directors approved a cash dividend to shareholders of $0.07 per share that will be paid on November 26, 2013 to shareholders of record at the close of business on November 12, 2013. Future dividends will be determined at the discretion of the Board of Directors. |
Prepaids_and_Other_Current_Ass1
Prepaids and Other Current Assets, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||||||||
Schedule of Prepaids and Other Current Assets, Net | Prepaids and other current assets, net consist of the following: | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid expenses | $ | 51.6 | $ | 23.3 | |||||
Refundable and prepaid income taxes | 28 | 28.5 | |||||||
Inventories | 1.7 | 6.7 | |||||||
Deferred financing costs - current portion | 9 | 8.9 | |||||||
Assets held for sale (1) | 9.3 | 23.9 | |||||||
Total Prepaids and other current assets | $ | 99.6 | $ | 91.3 | |||||
-1 | Assets held for sale primarily consists of machinery and equipment and goodwill. |
Intangible_Assets_Net_and_Good1
Intangible Assets, Net and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Intangible Assets, Net and Goodwill | Intangible assets, net and goodwill consist of the following: | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 488.5 | $ | (60.6 | ) | $ | 427.9 | $ | 485.6 | $ | (46.2 | ) | $ | 439.4 | |||||||||||
Favorable leases | 170.9 | (47.3 | ) | 123.6 | 183.1 | (40.2 | ) | 142.9 | |||||||||||||||||
Subtotal | 659.4 | (107.9 | ) | 551.5 | 668.7 | (86.4 | ) | 582.3 | |||||||||||||||||
Indefinite lived intangible assets - Brand | $ | 2,247.80 | $ | — | $ | 2,247.80 | $ | 2,228.90 | $ | — | $ | 2,228.90 | |||||||||||||
Intangible assets, net | $ | 2,799.30 | $ | 2,811.20 | |||||||||||||||||||||
Goodwill | $ | 626.5 | $ | 619.2 |
Other_Accrued_Liabilities_and_1
Other Accrued Liabilities and Other Liabilities, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non- Current) | Other accrued liabilities and other liabilities consist of the following: | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Accrued payroll and employee-related costs | $ | 26.8 | $ | 44.9 | |||||
Restructuring and other provisions | 10.5 | 14.6 | |||||||
Withholding taxes | 3.2 | 4.1 | |||||||
Interest payable | 36.5 | 16.9 | |||||||
Casualty insurance | 5.9 | 7.3 | |||||||
Gift card liabilities | 11 | 18.2 | |||||||
Income tax payable | 0.2 | 2.8 | |||||||
Deferred income | 23.1 | 18.1 | |||||||
Lease liability | 7.1 | 8 | |||||||
Other | 57.7 | 71.9 | |||||||
Other accrued liabilities | $ | 182 | $ | 206.8 | |||||
Non-current: | |||||||||
Accrued pension | $ | 71.3 | $ | 77.7 | |||||
Unfavorable leases | 130.4 | 169.1 | |||||||
Casualty insurance reserves | 15.1 | 18.6 | |||||||
Retiree health benefits | 8 | 8 | |||||||
Deferred compensation | 5.4 | 7.8 | |||||||
Income tax payable | 30.4 | 26.3 | |||||||
Derivatives liability | 19.7 | 11 | |||||||
Lease liability | 44 | 32.2 | |||||||
Other | 30.5 | 31.7 | |||||||
Other liabilities, net | $ | 354.8 | $ | 382.4 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||
Summary of Long-Term Debt | Long-term debt consists of the following: | ||||||||||||||||||||||||||
Interest rates (a) | |||||||||||||||||||||||||||
As of | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Maturity | September 30, | December 31, | September 30, | September 30, | |||||||||||||||||||||||
dates | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Tranche A Term Loans | 2017 | $ | 1,004.30 | $ | 1,023.60 | 3.3 | % | N/A | 3.3 | % | N/A | ||||||||||||||||
Tranche B Term Loans (b) | 2019 | 690.8 | 695.1 | 4.7 | % | N/A | 4.7 | % | N/A | ||||||||||||||||||
9 7/8 % Senior Notes | 2018 | 794.5 | 794.5 | 10.1 | % | 10.1 | % | 10.1 | % | 10.1 | % | ||||||||||||||||
11.0% Discount Notes (c) | 2019 | 441.1 | 407.1 | 11.5 | % | 11.5 | % | 11.5 | % | 11.5 | % | ||||||||||||||||
Deferred Premiums on interest rate caps | 2016 | 23.7 | 29 | 2.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||
Other | N/A | 0.8 | 0.9 | ||||||||||||||||||||||||
Total debt | 2,955.20 | 2,950.20 | |||||||||||||||||||||||||
Less: current maturities of debt | (64.4 | ) | (45.1 | ) | |||||||||||||||||||||||
Total long-term debt | $ | 2,890.80 | $ | 2,905.10 | |||||||||||||||||||||||
(a) | Represents the effective interest rate for the instrument computed on a quarterly basis, including the amortization of deferred debt issuance costs and original issue discount, as applicable, and in the case of our term loans, the effect of interest rate caps | ||||||||||||||||||||||||||
(b) | Principal face amount herein is presented net of a discount of $7.1 million at September 30, 2013 and $8.1 million at December 31, 2012. | ||||||||||||||||||||||||||
(c) | Principal face amount herein is presented net of a discount of $138.0 million at September 30, 2013 and $172.0 million at December 31, 2012. | ||||||||||||||||||||||||||
Schedule of Interest Expense, Net | Interest expense, net consists of the following: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Tranche A Term Loans | $ | 6.6 | $ | — | $ | 19.8 | $ | — | |||||||||||||||||||
Tranche B Term Loans | 6.7 | — | 19.9 | — | |||||||||||||||||||||||
Secured Term Loan - USD tranche | — | 16.8 | — | 51.2 | |||||||||||||||||||||||
Secured Term Loan - Euro tranche | — | 2.9 | — | 8.8 | |||||||||||||||||||||||
Interest Rate Caps | 1.8 | 1 | 4.8 | 2.9 | |||||||||||||||||||||||
9 7/8 % Senior Notes | 19.7 | 19.6 | 58.9 | 59 | |||||||||||||||||||||||
11.0% Discount Notes | 11.6 | 10.4 | 34 | 33 | |||||||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 2.6 | 3.7 | 7.7 | 10.6 | |||||||||||||||||||||||
Capital lease obligations | 1.6 | 1.9 | 4.9 | 6.2 | |||||||||||||||||||||||
Other | 0.3 | 1.2 | 1.1 | 2.6 | |||||||||||||||||||||||
Interest income | (0.7 | ) | (0.2 | ) | (1.8 | ) | (0.7 | ) | |||||||||||||||||||
Total | $ | 50.2 | $ | 57.3 | $ | 149.3 | $ | 173.6 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of US Federal Tax Statutory Rate Reconciles to Effective Tax Rate | The U.S. Federal tax statutory rate reconciles to the effective tax rate as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 2 | 1.5 | 1.9 | 1.7 | |||||||||||||
Costs and taxes related to foreign operations | 4.7 | 32.6 | 4.5 | 4.6 | |||||||||||||
Foreign tax rate differential | (14.1 | ) | (10.0 | ) | (14.0 | ) | (14.6 | ) | |||||||||
Foreign exchange differential on tax benefits | — | (1.0 | ) | — | (0.1 | ) | |||||||||||
Change in valuation allowance | (0.4 | ) | — | (0.9 | ) | — | |||||||||||
Change in accrual for tax uncertainties | 0.7 | (2.0 | ) | 1.5 | 0.5 | ||||||||||||
Other | 0.5 | (5.0 | ) | — | 2.4 | ||||||||||||
Effective income tax rate | 28.4 | % | 51.1 | % | 28 | % | 29.5 | % | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||
Summary of Accumulated Other Comprehensive Income (Loss) | The following table displays the change in the components of accumulated other comprehensive income (loss): | ||||||||||||||||||
Foreign | Accumulated | ||||||||||||||||||
Gains (Losses) | Currency | Other | |||||||||||||||||
on Cash Flow | Defined Benefit | Translation | Comprehensive | ||||||||||||||||
Hedges | Pension | Adjustments | Income (Loss) | ||||||||||||||||
Balances at December 31, 2012 | $ | (29.2 | ) | $ | (3.8 | ) | $ | (77.3 | ) | $ | (110.3 | ) | |||||||
Foreign currency translation adjustment | — | — | 31.6 | 31.6 | |||||||||||||||
Reclassification of foreign currency translation adjustment into net income | — | — | (3.0 | ) | (3.0 | ) | |||||||||||||
Net change in fair value of net investment hedges, net of tax | (5.6 | ) | — | — | (5.6 | ) | |||||||||||||
Net change in fair value of interest rate caps/swaps, net of tax | 74.2 | — | — | 74.2 | |||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 2.6 | — | — | 2.6 | |||||||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||
Amortization of prior service costs, net of tax | — | (1.1 | ) | — | (1.1 | ) | |||||||||||||
Amortization of actuarial losses, net of tax | — | 0.5 | — | 0.5 | |||||||||||||||
Balances at September 30, 2013 | $ | 42 | $ | (4.5 | ) | $ | (48.7 | ) | $ | (11.2 | ) | ||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table displays the reclassifications out of accumulated other comprehensive income (loss): | ||||||||||||||||||
Amounts Reclassified from AOCI | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Affected Line Item in the Statements | September 30, | September 30, | |||||||||||||||||
Details about AOCI Components | of Operations | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Gains (Losses) on cash flow hedges: | |||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (1.7 | ) | $ | (0.8 | ) | $ | (4.3 | ) | $ | (2.1 | ) | ||||||
Other operating expenses (income), net | — | (8.4 | ) | — | (8.4 | ) | |||||||||||||
Total before tax | (1.7 | ) | (9.2 | ) | (4.3 | ) | (10.5 | ) | |||||||||||
Income tax (expense) benefit | 0.7 | 3.7 | 1.7 | 4.1 | |||||||||||||||
Net of tax | (1.0 | ) | (5.5 | ) | (2.6 | ) | (6.4 | ) | |||||||||||
Defined benefit pension plan items: | |||||||||||||||||||
Amortization of prior service costs | SG&A (1) | 0.8 | 0.8 | 2 | 1.9 | ||||||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | (0.3 | ) | — | (0.9 | ) | — | ||||||||||||
Total before tax | 0.5 | 0.8 | 1.1 | 1.9 | |||||||||||||||
Income tax (expense) benefit | (0.3 | ) | (0.5 | ) | (0.5 | ) | (0.7 | ) | |||||||||||
Net of tax | 0.2 | 0.3 | 0.6 | 1.2 | |||||||||||||||
Foreign currency translation adjustment: | |||||||||||||||||||
Sale of foreign entity | Other operating expenses (income), net | — | — | 3 | — | ||||||||||||||
Total reclassifications | Net of tax | $ | (0.8 | ) | $ | (5.2 | ) | $ | 1 | $ | (5.2 | ) | |||||||
-1 | Refers to selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments, derivatives designated as net investment hedges, investments held in a rabbi trust which consist of money market accounts and mutual funds established to fund a portion of our current and future obligations under our Executive Retirement Plan (“ERP”), and ERP liabilities as well as their location on our condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||
at September 30, 2013 | at December 31, 2012 | ||||||||||||||||||||||||||
Balance Sheet Location | (Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||
Interest rate caps | Other assets, net | $ | — | $ | 5.2 | $ | 5.2 | $ | — | $ | 4.3 | $ | 4.3 | ||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | 122 | 122 | — | 0.8 | 0.8 | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 2 | — | 2 | 6.3 | — | 6.3 | ||||||||||||||||||||
Total assets at fair value | $ | 2 | $ | 127.2 | $ | 129.2 | $ | 6.3 | $ | 5.1 | $ | 11.4 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other liabilities, net | $ | — | $ | 19.7 | $ | 19.7 | $ | — | $ | 11 | $ | 11 | ||||||||||||||
Other: | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 2.7 | 2.7 | — | 4.4 | 4.4 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 5.4 | 5.4 | — | 7.8 | 7.8 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 27.8 | $ | 27.8 | $ | — | $ | 23.2 | $ | 23.2 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Quantitative Disclosures of Derivative Instruments | The following tables present the required quantitative disclosures for our derivative instruments: | ||||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
(effective portion) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | (2.4 | ) | $ | (4.0 | ) | $ | 0.9 | $ | (17.2 | ) | ||||||
Forward-starting interest rate swaps | $ | (1.3 | ) | $ | (12.3 | ) | $ | 121.2 | $ | (12.3 | ) | ||||||
Derivatives designated as net investment hedges: | |||||||||||||||||
Cross-currency rate swaps | $ | (16.7 | ) | $ | (2.8 | ) | $ | (9.2 | ) | $ | (0.1 | ) | |||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Earnings | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps - gain (loss) reclassified into interest expense, net | $ | (1.7 | ) | $ | (0.8 | ) | $ | (4.3 | ) | $ | (2.1 | ) | |||||
Interest rate caps - gain (loss) reclassified into other operating expenses (income), net | $ | — | $ | (8.4 | ) | $ | — | $ | (8.4 | ) | |||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other Operating Expenses (Income), Net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency forward contracts | $ | — | $ | — | $ | (0.9 | ) | $ | — |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are as follows (in millions, except per share information): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 68.2 | $ | 6.6 | $ | 166.9 | $ | 69.1 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 351.2 | 350 | 350.9 | 349.4 | |||||||||||||
Effect of dilutive securities | 6.9 | 5 | 6.8 | 3.9 | |||||||||||||
Weighted average shares - diluted | 358.1 | 355 | 357.7 | 353.3 | |||||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.02 | $ | 0.48 | $ | 0.2 | |||||||||
Diluted earnings per share | $ | 0.19 | $ | 0.02 | $ | 0.47 | $ | 0.2 | |||||||||
Anti-dilutive stock options outstanding | 2.9 | 0.3 | 2.9 | 3.6 |
Franchise_and_Property_Revenue1
Franchise and Property Revenues (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||
Summary of Franchise and Property Revenues | Franchise and property revenues consist of the following: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Franchise royalties | $ | 171.8 | $ | 158.6 | $ | 486 | $ | 448.1 | |||||||||||||
Property revenues | 54.8 | 42.9 | 159.7 | 106.9 | |||||||||||||||||
Franchise fees and other revenue | 21.5 | 9.6 | 34.6 | 24.7 | |||||||||||||||||
Total | $ | 248.1 | $ | 211.1 | $ | 680.3 | $ | 579.7 | |||||||||||||
Restaurant Count for Geographic Areas | The following table presents information relating to the analysis of our restaurant count for the geographic areas and periods indicated. | ||||||||||||||||||||
U.S. & Canada | EMEA | LAC | APAC | Total | |||||||||||||||||
Number of Company restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 183 | 132 | 100 | 3 | 418 | ||||||||||||||||
Openings | — | — | — | — | — | ||||||||||||||||
Closures | (4 | ) | — | (2 | ) | — | (6 | ) | |||||||||||||
Refranchisings | (127 | ) | (113 | ) | (98 | ) | — | (338 | ) | ||||||||||||
Restaurant count at September 30, 2013 | 52 | 19 | — | 3 | 74 | ||||||||||||||||
Number of franchise restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 7,293 | 2,989 | 1,290 | 1,007 | 12,579 | ||||||||||||||||
Openings | 26 | 214 | 66 | 130 | 436 | ||||||||||||||||
Closures | (94 | ) | (45 | ) | (3 | ) | (26 | ) | (168 | ) | |||||||||||
Refranchisings | 127 | 113 | 98 | — | 338 | ||||||||||||||||
Restaurant count at September 30, 2013 | 7,352 | 3,271 | 1,451 | 1,111 | 13,185 | ||||||||||||||||
Number of system-wide restaurants: | |||||||||||||||||||||
Restaurant count at December 31, 2012 | 7,476 | 3,121 | 1,390 | 1,010 | 12,997 | ||||||||||||||||
Openings | 26 | 214 | 66 | 130 | 436 | ||||||||||||||||
Closures | (98 | ) | (45 | ) | (5 | ) | (26 | ) | (174 | ) | |||||||||||
Refranchisings | — | — | — | — | — | ||||||||||||||||
Restaurant count at September 30, 2013 | 7,404 | 3,290 | 1,451 | 1,114 | 13,259 | ||||||||||||||||
Other_Operating_Expenses_Incom1
Other Operating Expenses (Income), Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||||||
Other Operating Expenses (Income), Net | Other operating expenses (income), net consists of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net (gains) losses on disposal of assets, restaurant closures and refranchisings | $ | 0.3 | $ | 14.1 | $ | 0.6 | $ | 15.2 | |||||||||
Litigation settlements and reserves, net | 0.1 | 0.8 | 0.6 | 1.3 | |||||||||||||
Foreign exchange net losses (gains) | 0.5 | 1.5 | 6.1 | (5.3 | ) | ||||||||||||
Loss on termination of interest rate cap | — | 8.7 | — | 8.7 | |||||||||||||
Equity in net loss (income) from unconsolidated affiliates | 2.9 | (0.4 | ) | 9.7 | 1.4 | ||||||||||||
Other, net | 2.8 | 5.6 | 4.1 | 4.9 | |||||||||||||
Other operating expenses (income), net | $ | 6.6 | $ | 30.3 | $ | 21.1 | $ | 26.2 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Revenues by Geographic Segment | Revenues by geographic segment consist of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
U.S. and Canada | $ | 172.1 | $ | 288 | $ | 509.6 | $ | 1,032.30 | |||||||||
EMEA | 71.3 | 111.7 | 265.7 | 354.2 | |||||||||||||
LAC | 18.1 | 33.5 | 65.2 | 96.3 | |||||||||||||
APAC | 13.6 | 22.5 | 40.6 | 83.6 | |||||||||||||
Total revenues | $ | 275.1 | $ | 455.7 | $ | 881.1 | $ | 1,566.40 | |||||||||
Reconciliation of Segment Income to Net Income | A reconciliation of segment income to net income consists of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment Income: | |||||||||||||||||
U.S. and Canada | $ | 120.9 | $ | 112.1 | $ | 326.6 | $ | 341.1 | |||||||||
EMEA | 49.2 | 42.8 | 136.5 | 118.4 | |||||||||||||
LAC | 16 | 17.2 | 46.6 | 50.2 | |||||||||||||
APAC | 11.4 | 9.9 | 33.2 | 28.7 | |||||||||||||
Unallocated Management G&A | (21.5 | ) | (19.1 | ) | (59.4 | ) | (58.5 | ) | |||||||||
Adjusted EBITDA | 176 | 162.9 | 483.5 | 479.9 | |||||||||||||
Share-based compensation and non-cash incentive compensation expense | 3.5 | 2.6 | 9.4 | 6.1 | |||||||||||||
Global portfolio realignment project costs | 4.7 | 7 | 23.6 | 20.1 | |||||||||||||
Business combination agreement expenses | — | 0.6 | — | 25.7 | |||||||||||||
Other operating expenses (income), net | 6.6 | 30.3 | 21.1 | 26.2 | |||||||||||||
EBITDA | 161.2 | 122.4 | 429.4 | 401.8 | |||||||||||||
Depreciation and amortization | 15.7 | 28.6 | 48.3 | 96 | |||||||||||||
Income from operations | 145.5 | 93.8 | 381.1 | 305.8 | |||||||||||||
Interest expense, net | 50.2 | 57.3 | 149.3 | 173.6 | |||||||||||||
Loss on early extinguishment of debt | — | 23 | — | 34.2 | |||||||||||||
Income tax expense | 27.1 | 6.9 | 64.9 | 28.9 | |||||||||||||
Net income | $ | 68.2 | $ | 6.6 | $ | 166.9 | $ | 69.1 | |||||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3.3 | $ | — | $ | 600.6 | $ | — | $ | 160.4 | $ | — | $ | 764.3 | |||||||||||||||
Trade and notes receivable, net | — | — | 118.2 | — | 46.4 | — | 164.6 | ||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.7 | 76.5 | — | 22.4 | — | 99.6 | ||||||||||||||||||||||
Deferred income taxes, net | 0.1 | 1.7 | 32.3 | — | 3.9 | — | 38 | ||||||||||||||||||||||
Total current assets | 3.4 | 2.4 | 827.6 | — | 233.1 | — | 1,066.50 | ||||||||||||||||||||||
Property and equipment, net | — | — | 732.2 | — | 72.4 | — | 804.6 | ||||||||||||||||||||||
Intangible assets, net | — | — | 1,536.50 | — | 1,262.80 | — | 2,799.30 | ||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 266.9 | — | 626.5 | ||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 155.4 | — | 12 | — | 167.4 | ||||||||||||||||||||||
Intercompany receivable | 10.2 | — | 58 | — | — | (68.2 | ) | — | |||||||||||||||||||||
Investment in subsidiaries | 1,380.80 | 1,792.50 | 1,576.20 | 1,792.50 | — | (6,542.0 | ) | — | |||||||||||||||||||||
Other assets, net | — | 5.9 | 239.1 | — | 61.9 | — | 306.9 | ||||||||||||||||||||||
Total assets | $ | 1,394.40 | $ | 1,800.80 | $ | 5,484.60 | $ | 1,792.50 | $ | 1,909.10 | $ | (6,610.2 | ) | $ | 5,771.20 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 20.6 | $ | — | $ | 5.2 | $ | — | $ | 25.8 | |||||||||||||||
Accrued advertising | — | — | 69.5 | — | 31.7 | — | 101.2 | ||||||||||||||||||||||
Other accrued liabilities | (0.4 | ) | (11.8 | ) | 157 | — | 37.2 | — | 182 | ||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 71.8 | — | 3.2 | — | 75 | ||||||||||||||||||||||
Total current liabilities | (0.4 | ) | (11.8 | ) | 318.9 | — | 77.3 | — | 384 | ||||||||||||||||||||
Term debt, net of current portion | — | 441.1 | 2,449.70 | — | — | — | 2,890.80 | ||||||||||||||||||||||
Capital leases, net of current portion | — | — | 59.5 | — | 19 | — | 78.5 | ||||||||||||||||||||||
Other liabilities, net | 0.4 | — | 308.8 | — | 45.6 | — | 354.8 | ||||||||||||||||||||||
Payables to affiliates | — | 0.5 | — | — | 67.7 | (68.2 | ) | — | |||||||||||||||||||||
Deferred income taxes, net | (4.2 | ) | (0.3 | ) | 575.9 | — | 93.1 | — | 664.5 | ||||||||||||||||||||
Total liabilities | (4.2 | ) | 429.5 | 3,712.80 | — | 302.7 | (68.2 | ) | 4,372.60 | ||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | ||||||||||||||||||||||
Additional paid-in capital | 1,223.00 | 1,110.20 | 1,442.20 | 1,443.20 | 1,313.30 | (5,308.9 | ) | 1,223.00 | |||||||||||||||||||||
Retained earnings | 183.3 | 281.8 | 361.5 | 360.5 | 307.7 | (1,311.5 | ) | 183.3 | |||||||||||||||||||||
Accumulated other comprehensive loss | (11.2 | ) | (11.2 | ) | (11.2 | ) | (11.2 | ) | (44.8 | ) | 78.4 | (11.2 | ) | ||||||||||||||||
Total stockholders’ equity | 1,398.60 | 1,380.80 | 1,792.50 | 1,792.50 | 1,576.20 | (6,542.0 | ) | 1,398.60 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,394.40 | $ | 1,810.30 | $ | 5,505.30 | $ | 1,792.50 | $ | 1,878.90 | $ | (6,610.2 | ) | $ | 5,771.20 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.1 | $ | — | $ | 355.3 | $ | — | $ | 191.3 | $ | — | $ | 546.7 | |||||||||||||||
Trade and notes receivable, net | — | — | 128.8 | — | 50.2 | — | 179 | ||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.6 | 70.9 | — | 19.8 | — | 91.3 | ||||||||||||||||||||||
Deferred income taxes, net | 0.7 | 20.3 | 36.3 | — | 16.2 | — | 73.5 | ||||||||||||||||||||||
Total current assets | 0.8 | 20.9 | 591.3 | — | 277.5 | — | 890.5 | ||||||||||||||||||||||
Property and equipment, net | — | — | 754.7 | — | 130.5 | — | 885.2 | ||||||||||||||||||||||
Intangible assets, net | — | — | 1,554.70 | — | 1,256.50 | — | 2,811.20 | ||||||||||||||||||||||
Goodwill | — | — | 355 | — | 264.2 | — | 619.2 | ||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 167 | — | 13.4 | — | 180.4 | ||||||||||||||||||||||
Intercompany receivable | 3.8 | — | 190.9 | — | — | (194.7 | ) | — | |||||||||||||||||||||
Investment in subsidiaries | 1,169.50 | 1,537.60 | 1,517.20 | 1,537.60 | — | (5,761.9 | ) | — | |||||||||||||||||||||
Other assets, net | — | 6.5 | 106.6 | — | 64.4 | — | 177.5 | ||||||||||||||||||||||
Total assets | $ | 1,174.10 | $ | 1,565.00 | $ | 5,237.40 | $ | 1,537.60 | $ | 2,006.50 | $ | (5,956.6 | ) | $ | 5,564.00 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 45 | $ | — | $ | 23.7 | $ | — | $ | 68.7 | |||||||||||||||
Accrued advertising | — | — | 30.7 | — | 35.8 | — | 66.5 | ||||||||||||||||||||||
Other accrued liabilities | (0.3 | ) | (11.8 | ) | 157.1 | — | 61.8 | — | 206.8 | ||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 52.6 | — | 3.2 | — | 55.8 | ||||||||||||||||||||||
Total current liabilities | (0.3 | ) | (11.8 | ) | 285.4 | — | 124.5 | — | 397.8 | ||||||||||||||||||||
Term debt, net of current portion | — | 407.1 | 2,498.00 | — | — | — | 2,905.10 | ||||||||||||||||||||||
Capital leases, net of current portion | — | — | 66.2 | — | 22.2 | — | 88.4 | ||||||||||||||||||||||
Other liabilities, net | 0.2 | — | 322.6 | — | 59.6 | — | 382.4 | ||||||||||||||||||||||
Payables to affiliates | 3.6 | 0.5 | — | — | 190.6 | (194.7 | ) | — | |||||||||||||||||||||
Deferred income taxes, net | (4.4 | ) | (0.3 | ) | 527.6 | — | 92.4 | — | 615.3 | ||||||||||||||||||||
Total liabilities | (0.9 | ) | 395.5 | 3,699.80 | — | 489.3 | (194.7 | ) | 4,389.00 | ||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | ||||||||||||||||||||||
Additional paid-in capital | 1,205.70 | 1,164.90 | 1,478.30 | 1,479.30 | 1,386.90 | (5,509.4 | ) | 1,205.70 | |||||||||||||||||||||
Retained earnings | 76.1 | 114.9 | 169.6 | 168.6 | 206.7 | (659.8 | ) | 76.1 | |||||||||||||||||||||
Accumulated other comprehensive loss | (110.3 | ) | (110.3 | ) | (110.3 | ) | (110.3 | ) | (76.4 | ) | 407.3 | (110.3 | ) | ||||||||||||||||
Total stockholders’ equity | 1,175.00 | 1,169.50 | 1,537.60 | 1,537.60 | 1,517.20 | (5,761.9 | ) | 1,175.00 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,174.10 | $ | 1,565.00 | $ | 5,237.40 | $ | 1,537.60 | $ | 2,006.50 | $ | (5,956.6 | ) | $ | 5,564.00 | ||||||||||||||
Condensed Consolidating Statements of Operations | BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 18.7 | $ | — | $ | 8.3 | $ | — | $ | 27 | |||||||||||||||
Franchise and property revenues | — | — | 167.1 | — | 81 | — | 248.1 | ||||||||||||||||||||||
Intercompany revenues | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total revenues | — | — | 185.8 | — | 89.3 | — | 275.1 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 5.9 | — | 2.6 | — | 8.5 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 5.1 | — | 2.3 | — | 7.4 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 4.6 | — | 2.4 | — | 7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 15.6 | — | 7.3 | — | 22.9 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 29 | — | 11.5 | — | 40.5 | ||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 43.8 | — | 15.8 | — | 59.6 | ||||||||||||||||||||||
Intercompany expenses | — | — | (0.6 | ) | — | 0.6 | — | — | |||||||||||||||||||||
Other operating expenses (income), net | — | — | 0.6 | — | 6 | — | 6.6 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 88.4 | — | 41.2 | — | 129.6 | ||||||||||||||||||||||
Income from operations | — | — | 97.4 | — | 48.1 | — | 145.5 | ||||||||||||||||||||||
Interest expense, net | — | 11.8 | 37.6 | — | 0.8 | — | 50.2 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | — | — | — | ||||||||||||||||||||||
Income (loss) before income taxes | — | (11.8 | ) | 59.8 | — | 47.3 | — | 95.3 | |||||||||||||||||||||
Income tax expense (benefit) | — | (3.2 | ) | 17.2 | — | 13.1 | — | 27.1 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (8.6 | ) | 42.6 | — | 34.2 | — | 68.2 | |||||||||||||||||||||
Equity in earnings of subsidiaries | 68.2 | 76.8 | 34.2 | 76.8 | — | (256.0 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 68.2 | $ | 68.2 | $ | 76.8 | $ | 76.8 | $ | 34.2 | $ | (256.0 | ) | $ | 68.2 | ||||||||||||||
Total comprehensive income (loss) | $ | 100.9 | $ | 100.9 | $ | 109.5 | $ | 109.5 | $ | 78.8 | $ | (398.7 | ) | $ | 100.9 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 57.2 | $ | — | $ | 143.6 | $ | — | $ | 200.8 | |||||||||||||||
Franchise and property revenues | — | — | 455.6 | — | 224.7 | — | 680.3 | ||||||||||||||||||||||
Intercompany revenues | — | — | 1.6 | — | (1.6 | ) | — | — | |||||||||||||||||||||
Total revenues | — | — | 514.4 | — | 366.7 | — | 881.1 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 18.2 | — | 45.6 | — | 63.8 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 16 | — | 45.6 | — | 61.6 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 15.7 | — | 36.5 | — | 52.2 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 49.9 | — | 127.7 | — | 177.6 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 81.2 | — | 32.3 | — | 113.5 | ||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 131 | — | 56.8 | — | 187.8 | ||||||||||||||||||||||
Intercompany expenses | — | — | (0.9 | ) | — | 0.9 | — | — | |||||||||||||||||||||
Other operating expenses, net | — | — | 14.8 | — | 6.3 | — | 21.1 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 276 | — | 224 | — | 500 | ||||||||||||||||||||||
Income from operations | — | — | 238.4 | — | 142.7 | — | 381.1 | ||||||||||||||||||||||
Interest expense, net | — | 34.5 | 111.8 | — | 3 | — | 149.3 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | — | — | — | — | ||||||||||||||||||||||
Income (loss) before income taxes | — | (34.5 | ) | 126.6 | — | 139.7 | — | 231.8 | |||||||||||||||||||||
Income tax expense (benefit) | — | (9.5 | ) | 35.7 | — | 38.7 | — | 64.9 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (25.0 | ) | 90.9 | — | 101 | — | 166.9 | |||||||||||||||||||||
Equity in earnings of subsidiaries | 166.9 | 191.9 | 101 | 191.9 | — | (651.7 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 166.9 | $ | 166.9 | $ | 191.9 | $ | 191.9 | $ | 101 | $ | (651.7 | ) | $ | 166.9 | ||||||||||||||
Total comprehensive income (loss) | $ | 266 | $ | 266 | $ | 291 | $ | 291 | $ | 132.6 | $ | (980.6 | ) | $ | 266 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 126.8 | $ | — | $ | 117.8 | $ | — | $ | 244.6 | |||||||||||||||
Franchise and property revenues | — | — | 141.9 | — | 69.2 | — | 211.1 | ||||||||||||||||||||||
Intercompany revenues | — | — | 1.7 | — | (5.0 | ) | 3.3 | — | |||||||||||||||||||||
Total revenues | — | — | 270.4 | — | 182 | 3.3 | 455.7 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 41.6 | — | 38.1 | — | 79.7 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 37.4 | — | 34.5 | — | 71.9 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 32.6 | — | 32.1 | — | 64.7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 111.6 | — | 104.7 | — | 216.3 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 27.7 | — | 10 | — | 37.7 | ||||||||||||||||||||||
Selling, general and administrative expenses | (1.7 | ) | — | 52.1 | — | 27.2 | — | 77.6 | |||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | (2.0 | ) | 3.3 | — | ||||||||||||||||||||
Other operating expenses, net | — | — | 12.7 | — | 17.6 | — | 30.3 | ||||||||||||||||||||||
Total operating costs and expenses | (1.7 | ) | — | 202.8 | — | 157.5 | 3.3 | 361.9 | |||||||||||||||||||||
Income (loss) from operations | 1.7 | — | 67.6 | — | 24.5 | — | 93.8 | ||||||||||||||||||||||
Interest expense, net | — | 10.7 | 44.1 | — | 2.5 | — | 57.3 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | — | 23 | — | — | — | 23 | ||||||||||||||||||||||
Income (loss) before income taxes | 1.7 | (10.7 | ) | 0.5 | — | 22 | — | 13.5 | |||||||||||||||||||||
Income tax expense (benefit) | 3.6 | (3.6 | ) | 5.1 | — | 1.8 | — | 6.9 | |||||||||||||||||||||
Income (loss) from continuing operations | (1.9 | ) | (7.1 | ) | (4.6 | ) | — | 20.2 | — | 6.6 | |||||||||||||||||||
Equity in earnings of subsidiaries | 8.5 | 15.6 | 20.2 | 15.6 | — | (59.9 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 6.6 | $ | 8.5 | $ | 15.6 | $ | 15.6 | $ | 20.2 | $ | (59.9 | ) | $ | 6.6 | ||||||||||||||
Total comprehensive income (loss) | $ | 24 | $ | 25.9 | $ | 33 | $ | 33 | $ | 41.8 | $ | (133.7 | ) | $ | 24 | ||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Company restaurant revenues | $ | — | $ | — | $ | 590.9 | $ | — | $ | 395.8 | $ | — | $ | 986.7 | |||||||||||||||
Franchise and property revenues | — | — | 381.6 | — | 198.1 | — | 579.7 | ||||||||||||||||||||||
Intercompany revenues | — | — | 5 | — | (5.0 | ) | — | — | |||||||||||||||||||||
Total revenues | — | — | 977.5 | — | 588.9 | — | 1,566.40 | ||||||||||||||||||||||
Company restaurant expenses: | |||||||||||||||||||||||||||||
Food, paper and product costs | — | — | 196 | — | 128.7 | — | 324.7 | ||||||||||||||||||||||
Payroll and employee benefits | — | — | 177.5 | — | 114.1 | — | 291.6 | ||||||||||||||||||||||
Occupancy and other operating costs | — | — | 145.2 | — | 114.5 | — | 259.7 | ||||||||||||||||||||||
Total Company restaurant expenses | — | — | 518.7 | — | 357.3 | — | 876 | ||||||||||||||||||||||
Franchise and property expenses | — | — | 62.7 | — | 27.3 | — | 90 | ||||||||||||||||||||||
Selling, general and administrative expenses | 14 | — | 168.1 | — | 86.3 | — | 268.4 | ||||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | 1.3 | — | — | |||||||||||||||||||||
Other operating expenses, net | — | — | 35.1 | — | (8.9 | ) | — | 26.2 | |||||||||||||||||||||
Total operating costs and expenses | 14 | — | 783.3 | — | 463.3 | — | 1,260.60 | ||||||||||||||||||||||
Income (loss) from operations | (14.0 | ) | — | 194.2 | — | 125.6 | — | 305.8 | |||||||||||||||||||||
Interest expense, net | — | 33.1 | 133.3 | — | 7.2 | — | 173.6 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 9.7 | 24.5 | — | — | — | 34.2 | ||||||||||||||||||||||
Income (loss) before income taxes | (14.0 | ) | (42.8 | ) | 36.4 | — | 118.4 | — | 98 | ||||||||||||||||||||
Income tax expense (benefit) | (0.4 | ) | (11.9 | ) | 24.2 | — | 17 | — | 28.9 | ||||||||||||||||||||
Income (loss) from continuing operations | (13.6 | ) | (30.9 | ) | 12.2 | — | 101.4 | — | 69.1 | ||||||||||||||||||||
Equity in earnings of subsidiaries | 82.7 | 113.6 | 101.4 | 113.6 | — | (411.3 | ) | — | |||||||||||||||||||||
Net income (loss) | $ | 69.1 | $ | 82.7 | $ | 113.6 | $ | 113.6 | $ | 101.4 | $ | (411.3 | ) | $ | 69.1 | ||||||||||||||
Total comprehensive income (loss) | $ | 57 | $ | 70.6 | $ | 101.5 | $ | 101.5 | $ | 96 | $ | (369.6 | ) | $ | 57 | ||||||||||||||
Condensed Consolidating Statements of Cash Flows | BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||
Net income | $ | 166.9 | $ | 166.9 | $ | 191.9 | $ | 191.9 | $ | 101 | $ | (651.7 | ) | $ | 166.9 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (166.9 | ) | (191.9 | ) | (101.0 | ) | (191.9 | ) | — | 651.7 | — | ||||||||||||||||||
Depreciation and amortization | — | — | 32.6 | — | 15.8 | — | 48.4 | ||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 34.5 | 7.2 | — | — | — | 41.7 | ||||||||||||||||||||||
Equity in net loss from unconsolidated affiliates | — | — | 4.5 | — | 5.2 | — | 9.7 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | (0.5 | ) | — | 1.5 | — | 1 | |||||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (1.1 | ) | — | (0.5 | ) | — | (1.6 | ) | |||||||||||||||||||
Realized loss on terminated caps/swaps | — | — | 4.3 | — | — | — | 4.3 | ||||||||||||||||||||||
Net loss (gain) on refranchisings and dispositions of assets | — | — | 5.4 | — | (7.9 | ) | — | (2.5 | ) | ||||||||||||||||||||
Bad debt expense, net of recoveries | — | — | 2.2 | — | — | — | 2.2 | ||||||||||||||||||||||
Share-based compensation | — | — | 5.4 | — | 1.7 | — | 7.1 | ||||||||||||||||||||||
Deferred income taxes | — | 16.5 | 7.6 | — | 9.2 | — | 33.3 | ||||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | |||||||||||||||||||||||||||||
Trade and notes receivables | — | — | 7.7 | — | (1.4 | ) | — | 6.3 | |||||||||||||||||||||
Prepaids and other current assets | — | — | (1.0 | ) | — | 0.8 | — | (0.2 | ) | ||||||||||||||||||||
Accounts and drafts payable | — | — | (24.6 | ) | — | (11.1 | ) | — | (35.7 | ) | |||||||||||||||||||
Accrued advertising | — | — | 14 | — | (4.3 | ) | — | 9.7 | |||||||||||||||||||||
Other accrued liabilities | — | 9.5 | — | (14.4 | ) | — | (4.9 | ) | |||||||||||||||||||||
Other long-term assets and liabilities | — | (19.2 | ) | — | 1.2 | — | (18.0 | ) | |||||||||||||||||||||
Net cash provided by operating activities | — | 26 | 144.9 | — | 96.8 | — | 267.7 | ||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (8.5 | ) | — | (2.3 | ) | — | (10.8 | ) | |||||||||||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 45.1 | — | 3.6 | — | 48.7 | ||||||||||||||||||||||
Payments for acquired franchisee operations, net of cash acquired | (11.9 | ) | — | (11.9 | ) | ||||||||||||||||||||||||
Return of investment on direct financing leases | — | — | 10.9 | — | 1 | — | 11.9 | ||||||||||||||||||||||
Other investing activities | 0.2 | 0.2 | |||||||||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | 35.8 | — | 2.3 | — | 38.1 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (35.5 | ) | — | (2.6 | ) | — | (38.1 | ) | |||||||||||||||||||
Proceeds from stock option exercises | 2.7 | — | — | — | — | — | 2.7 | ||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 4.2 | — | — | — | 4.2 | ||||||||||||||||||||||
Dividends paid on common stock | (59.7 | ) | — | — | — | — | — | (59.7 | ) | ||||||||||||||||||||
Intercompany financing | 60.2 | (26.0 | ) | 95.9 | — | (130.1 | ) | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 3.2 | (26.0 | ) | 64.6 | — | (132.7 | ) | — | (90.9 | ) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | 2.7 | — | 2.7 | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 3.2 | — | 245.3 | — | (30.9 | ) | — | 217.6 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 0.1 | — | 355.3 | — | 191.3 | — | 546.7 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 3.3 | $ | — | $ | 600.6 | $ | — | $ | 160.4 | $ | — | $ | 764.3 | |||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Guarantor | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||
Net income | $ | 69.1 | $ | 82.7 | $ | 113.6 | $ | 113.6 | $ | 101.4 | $ | (411.3 | ) | 69.1 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (82.7 | ) | (113.6 | ) | (101.4 | ) | (113.6 | ) | — | 411.3 | — | ||||||||||||||||||
Depreciation and amortization | — | — | 65.6 | — | 30.4 | — | 96 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 9.7 | 24.5 | — | — | — | 34.2 | ||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 33.2 | 10.4 | — | — | — | 43.6 | ||||||||||||||||||||||
Equity in net loss from unconsolidated affiliates | — | — | 0.1 | — | 1.3 | — | 1.4 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | (3.7 | ) | — | (1.7 | ) | — | (5.4 | ) | |||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (1.8 | ) | — | — | — | (1.8 | ) | ||||||||||||||||||||
Realized loss on terminated caps/swaps | — | — | 10.7 | — | — | — | 10.7 | ||||||||||||||||||||||
Net loss (gain) on refranchisings and dispositions of assets | — | — | 20.3 | — | (9.9 | ) | — | 10.4 | |||||||||||||||||||||
Bad debt expense, net of recoveries | — | — | 3 | — | (0.1 | ) | — | 2.9 | |||||||||||||||||||||
Share-based compensation | — | — | 8.4 | — | 0.9 | — | 9.3 | ||||||||||||||||||||||
Deferred income taxes | — | 0.1 | 7.9 | — | — | — | 8 | ||||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | |||||||||||||||||||||||||||||
Trade and notes receivables | — | — | (6.7 | ) | — | 2.6 | — | (4.1 | ) | ||||||||||||||||||||
Prepaids and other current assets | — | — | (4.5 | ) | — | (4.4 | ) | — | (8.9 | ) | |||||||||||||||||||
Accounts and drafts payable | — | — | (18.5 | ) | — | (16.2 | ) | — | (34.7 | ) | |||||||||||||||||||
Accrued advertising | — | — | (41.0 | ) | — | 10 | — | (31.0 | ) | ||||||||||||||||||||
Other accrued liabilities | 4.8 | (18.4 | ) | (7.1 | ) | — | (27.0 | ) | — | (47.7 | ) | ||||||||||||||||||
Other long-term assets and liabilities | — | — | (11.3 | ) | — | 3.9 | — | (7.4 | ) | ||||||||||||||||||||
Net cash provided by (used for) operating activities | (8.8 | ) | (6.3 | ) | 68.5 | — | 91.2 | — | 144.6 | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (29.5 | ) | — | (8.2 | ) | — | (37.7 | ) | |||||||||||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 54.3 | — | 15.7 | — | 70 | ||||||||||||||||||||||
Payments for acquired franchisee operations, net of cash acquired | — | — | — | — | (15.3 | ) | — | (15.3 | ) | ||||||||||||||||||||
Return of investment on direct financing leases | — | — | 9.4 | — | 1 | — | 10.4 | ||||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | 34.2 | — | (6.8 | ) | — | 27.4 | |||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||
Proceeds from term debt | — | — | 1,733.50 | — | — | — | 1,733.50 | ||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (1,752.6 | ) | — | (2.1 | ) | — | (1,754.7 | ) | |||||||||||||||||||
Extinguishment of debt | — | (62.6 | ) | (50.2 | ) | — | — | — | (112.8 | ) | |||||||||||||||||||
Payment of financing costs | — | — | (16.0 | ) | — | — | — | (16.0 | ) | ||||||||||||||||||||
Proceeds from stock option exercises | 1.3 | — | — | — | — | — | 1.3 | ||||||||||||||||||||||
Intercompany financing | 7.9 | 68.9 | (77.0 | ) | — | 0.2 | — | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 9.2 | 6.3 | (162.3 | ) | — | (1.9 | ) | — | (148.7 | ) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | 0.5 | — | 0.5 | ||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.4 | 0 | (59.6 | ) | — | 83 | — | 23.8 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 0.2 | — | 287.1 | — | 171.7 | — | 459 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 0.6 | $ | 0 | $ | 227.5 | $ | — | $ | 254.7 | $ | — | $ | 482.8 |
Basis_of_Presentation_and_Cons1
Basis of Presentation and Consolidation - Additional Information (Detail) (Maximum [Member]) | Sep. 30, 2013 |
Maximum [Member] | |
Basis Of Presentation [Line Items] | |
Investments in affiliates percentage | 50.00% |
Prepaids_and_Other_Current_Ass2
Prepaids and Other Current Assets, Net - Schedule of Prepaids and Other Current Assets, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $51.60 | $23.30 |
Refundable and prepaid income taxes | 28 | 28.5 |
Inventories | 1.7 | 6.7 |
Deferred financing costs - current portion | 9 | 8.9 |
Assets held for sale | 9.3 | 23.9 |
Total Prepaids and other current assets | $99.60 | $91.30 |
Intangible_Assets_Net_and_Good2
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | $659.40 | $668.70 |
Goodwill | 626.5 | 619.2 |
Identifiable assets, accumulated amortization | -107.9 | -86.4 |
Identifiable assets, Net | 551.5 | 582.3 |
Intangible assets, net | 2,799.30 | 2,811.20 |
Franchise Agreements [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | 488.5 | 485.6 |
Identifiable assets, accumulated amortization | -60.6 | -46.2 |
Identifiable assets, Net | 427.9 | 439.4 |
Favorable Leases [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | 170.9 | 183.1 |
Identifiable assets, accumulated amortization | -47.3 | -40.2 |
Identifiable assets, Net | 123.6 | 142.9 |
Brand [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets - Brand | $2,247.80 | $2,228.90 |
Intangible_Assets_Net_and_Good3
Intangible Assets, Net and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $9 | $9.50 | $27.40 | $28.60 |
Other_Accrued_Liabilities_and_2
Other Accrued Liabilities and Other Liabilities, Net - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non- Current) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current: | ||
Accrued payroll and employee-related costs | $26.80 | $44.90 |
Restructuring and other provisions | 10.5 | 14.6 |
Withholding taxes | 3.2 | 4.1 |
Interest payable | 36.5 | 16.9 |
Casualty insurance | 5.9 | 7.3 |
Gift card liabilities | 11 | 18.2 |
Income tax payable | 0.2 | 2.8 |
Deferred income | 23.1 | 18.1 |
Lease liability | 7.1 | 8 |
Other | 57.7 | 71.9 |
Other accrued liabilities | 182 | 206.8 |
Non-current: | ||
Accrued pension | 71.3 | 77.7 |
Unfavorable leases | 130.4 | 169.1 |
Casualty insurance reserves | 15.1 | 18.6 |
Retiree health benefits | 8 | 8 |
Deferred compensation | 5.4 | 7.8 |
Income tax payable | 30.4 | 26.3 |
Derivatives liability | 19.7 | 11 |
Lease liability | 44 | 32.2 |
Other | 30.5 | 31.7 |
Other liabilities, net | $354.80 | $382.40 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||
Total debt | $2,955.20 | $2,955.20 | $2,950.20 | ||
Less: current maturities of debt | -64.4 | -64.4 | -45.1 | ||
Total long-term debt | 2,890.80 | 2,890.80 | 2,905.10 | ||
Tranche A Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity dates | 2017 | ||||
Total debt | 1,004.30 | 1,004.30 | 1,023.60 | ||
Interest rates | 3.30% | 3.30% | |||
Tranche B Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity dates | 2019 | ||||
Total debt | 690.8 | 690.8 | 695.1 | ||
Interest rates | 4.70% | 4.70% | |||
9 7/8% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity dates | 2018 | ||||
Total debt | 794.5 | 794.5 | 794.5 | ||
Interest rates | 10.10% | 10.10% | 10.10% | 10.10% | |
11.0% Discount Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity dates | 2019 | ||||
Total debt | 441.1 | 441.1 | 407.1 | ||
Interest rates | 11.50% | 11.50% | 11.50% | 11.50% | |
Deferred Premiums on Interest Rate Caps - USD [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity dates | 2016 | ||||
Total debt | 23.7 | 23.7 | 29 | ||
Interest rates | 2.50% | 2.50% | 2.50% | 2.50% | |
Other [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt | $0.80 | $0.80 | $0.90 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Tranche B Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt instrument, discount | $7.10 | $8.10 |
9 7/8% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rates | 9.88% | |
11.0% Discount Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt instrument, discount | $138 | $172 |
Interest rates | 11.00% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Line of Credit Facility [Line Items] | ||||
Remaining borrowing capacity | $130 | $130 | ||
Extinguishment of debt | 23 | 34.2 | ||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding at the credit facility | 0 | 0 | ||
Letter of credit sublimit as part of revolving credit facility | 75 | 75 | ||
Amount withdrawn from revolving credit facility | $0 | $0 |
LongTerm_Debt_Schedule_of_Inte
Long-Term Debt - Schedule of Interest Expense, Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Debt Instrument [Line Items] | ||||
Amortization of deferred financing costs and debt issuance discount | $2.60 | $3.70 | $7.70 | $10.60 |
Capital lease obligations | 1.6 | 1.9 | 4.9 | 6.2 |
Other | 0.3 | 1.2 | 1.1 | 2.6 |
Interest income | -0.7 | -0.2 | -1.8 | -0.7 |
Total | 50.2 | 57.3 | 149.3 | 173.6 |
Tranche A Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 6.6 | 19.8 | ||
Tranche B Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 6.7 | 19.9 | ||
Secured Term Loan - USD Tranche [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 16.8 | 51.2 | ||
Secured Term Loan - Euro Tranche [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 2.9 | 8.8 | ||
Interest Rate Caps [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 1.8 | 1 | 4.8 | 2.9 |
9 7/8% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 19.7 | 19.6 | 58.9 | 59 |
11.0% Discount Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $11.60 | $10.40 | $34 | $33 |
Income_Taxes_Schedule_of_US_Fe
Income Taxes - Schedule of US Federal Tax Statutory Rate Reconciles to Effective Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 2.00% | 1.50% | 1.90% | 1.70% |
Costs and taxes related to foreign operations | 4.70% | 32.60% | 4.50% | 4.60% |
Foreign tax rate differential | -14.10% | -10.00% | -14.00% | -14.60% |
Foreign exchange differential on tax benefits | -1.00% | -0.10% | ||
Change in valuation allowance | -0.40% | -1.90% | ||
Change in accrual for tax uncertainties | 0.70% | -2.00% | 1.50% | 0.50% |
Other | 0.50% | -5.00% | 2.40% | |
Effective income tax rate | 28.40% | 51.10% | 28.00% | 29.50% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ($110.30) | |||
Foreign currency translation adjustment | 44.6 | 21.6 | 31.6 | -5.4 |
Reclassification of foreign currency translation adjustment into net income | -3 | |||
Net change in fair value of net investment hedges, net of tax | -10.1 | -0.1 | -5.6 | -0.1 |
Net change in fair value of interest rate caps/swaps, net of tax | -2.2 | -9 | 74.2 | -18 |
Amounts reclassified to earnings of cash flow hedges, net of tax | 1 | 5.5 | 2.6 | 6.4 |
Pension and post-retirement benefit plans, net of tax | -0.4 | -0.3 | -0.1 | 6.2 |
Amortization of prior service costs, net of tax | -0.4 | -0.3 | -1.1 | -1.2 |
Amortization of actuarial losses, net of tax | 0.2 | 0.5 | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | -11.2 | -11.2 | ||
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -29.2 | |||
Net change in fair value of net investment hedges, net of tax | -5.6 | |||
Net change in fair value of interest rate caps/swaps, net of tax | 74.2 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 1 | 5.5 | 2.6 | 6.4 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 42 | 42 | ||
Defined Benefit Pension [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -3.8 | |||
Pension and post-retirement benefit plans, net of tax | -0.1 | |||
Amortization of prior service costs, net of tax | -1.1 | |||
Amortization of actuarial losses, net of tax | 0.5 | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | -4.5 | -4.5 | ||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -77.3 | |||
Foreign currency translation adjustment | 31.6 | |||
Reclassification of foreign currency translation adjustment into net income | -3 | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($48.70) | ($48.70) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate derivative contracts, Income tax (expense) benefit | ($0.70) | ($3.70) | ($1.70) | ($4.10) |
Total reclassifications, Net of tax | -1 | -5.5 | -2.6 | -6.4 |
Sale of foreign entity | 3 | |||
Total reclassifications, Net of tax | -0.8 | -5.2 | 1 | -5.2 |
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate derivative contracts, Interest expense, net | -1.7 | -9.2 | -4.3 | -10.5 |
Interest rate derivative contracts, Income tax (expense) benefit | 0.7 | 3.7 | 1.7 | 4.1 |
Total reclassifications, Net of tax | -1 | -5.5 | -2.6 | -6.4 |
Gains (Losses) on Cash Flow Hedges [Member] | Interest Expense [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate derivative contracts, Interest expense, net | -1.7 | -0.8 | -4.3 | -2.1 |
Gains (Losses) on Cash Flow Hedges [Member] | Other Expense [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest rate derivative contracts, Interest expense, net | -8.4 | -8.4 | ||
Defined Benefit Pension [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service costs, SG&A | 0.8 | 0.8 | 2 | 1.9 |
Amortization of actuarial gains (losses), SG&A | -0.3 | -0.9 | ||
Defined benefit pension plan expense before tax | 0.5 | 0.8 | 1.1 | 1.9 |
Defined benefit, Income tax (expense) benefit | -0.3 | -0.5 | -0.5 | -0.7 |
Total reclassifications, Net of tax | $0.20 | $0.30 | $0.60 | $1.20 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value Measurements [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $129.20 | $11.40 |
Total liabilities at fair value | 27.8 | 23.2 |
Cross- Currency Rate Swaps [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swaps | 19.7 | 11 |
Investments Held in a Rabbi Trust [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments held in a rabbi trust | 2 | 6.3 |
Other Investments [Member] | Executive Retirement Plan [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | 5.4 | 7.8 |
Other Investments [Member] | Executive Retirement Plan [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | 2.7 | 4.4 |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5.2 | 4.3 |
Derivatives Designated as Cash Flow Hedges [Member] | Forward-Starting Interest Rate Swaps [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 122 | 0.8 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2 | 6.3 |
Total liabilities at fair value | ||
Level 1 [Member] | Cross- Currency Rate Swaps [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swaps | ||
Level 1 [Member] | Investments Held in a Rabbi Trust [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments held in a rabbi trust | 2 | 6.3 |
Level 1 [Member] | Other Investments [Member] | Executive Retirement Plan [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | ||
Level 1 [Member] | Other Investments [Member] | Executive Retirement Plan [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 127.2 | 5.1 |
Total liabilities at fair value | 27.8 | 23.2 |
Level 2 [Member] | Cross- Currency Rate Swaps [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross-currency rate swaps | 19.7 | 11 |
Level 2 [Member] | Other Investments [Member] | Executive Retirement Plan [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | 5.4 | 7.8 |
Level 2 [Member] | Other Investments [Member] | Executive Retirement Plan [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
ERP liabilities | 2.7 | 4.4 |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5.2 | 4.3 |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Forward-Starting Interest Rate Swaps [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $122 | $0.80 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Fair Value Disclosures [Abstract] | |||||
Fair value of variable rate term debt and bonds | $3,100,000,000 | $3,100,000,000 | $3,100,000,000 | ||
Carrying amount, net of original issue discount | 2,955,200,000 | 2,955,200,000 | 2,950,200,000 | ||
Assets held for sale | 9,300,000 | 9,300,000 | 23,900,000 | ||
Impairment loss | $0 | $0 | $0 | $13,200,000 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Forward interest swaps maturity period | 7 years | |
Remaining maturity period | 3 months | |
Pre-tax gains and losses | $8.50 | |
Fixed Income Interest Rate [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 230 | |
Variable Income Interest Rate [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 200 | |
Forward-Starting Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 2,300 | |
Forward-Starting Interest Rate Swaps [Member] | Floating Rate Debt Beginning 2015 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 1,000 | |
Forward-Starting Interest Rate Swaps [Member] | Floating Rate Debt Starting 2016 [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 1,300 | |
Foreign Currency Forward Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 51.5 | |
Interest Rate Caps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | 1,300 | 1,400 |
Variable rate borrowings at a weighted-average rate | 1.75% | |
Forward interest swaps maturity period | 6 years | |
Cross Currency Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract- total notional amount | $430 | |
Cross-currency rate swaps, maturity date | 28-Sep-17 |
Derivative_Instruments_Quantit
Derivative Instruments - Quantitative Disclosures of Derivative Instruments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified into interest and operating expense (income), net | ($4.30) | ($10.70) | ||
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss) | -2.4 | -4 | 0.9 | -17.2 |
Derivatives Designated as Cash Flow Hedges [Member] | Forward-Starting Interest Rate Swaps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss) | -1.3 | -12.3 | 121.2 | -12.3 |
Derivatives Designated as Cash Flow Hedges [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | Interest Rate Caps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified into interest and operating expense (income), net | -1.7 | -0.8 | -4.3 | -2.1 |
Derivatives Designated as Cash Flow Hedges [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | Interest Rate Caps [Member] | Operating Expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified into interest and operating expense (income), net | -8.4 | -8.4 | ||
Derivatives Designated as Net Investment Hedges [Member] | Cross- Currency Rate Swaps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss) | -16.7 | -2.8 | -9.2 | -0.1 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Forward Contracts [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in other operating expenses (income), net | ($0.90) |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | 15-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Two Thousand Twelve Omnibus Equity Incentive Plan Pre May Fifteen Two Thousand Thirteen Amendment [Member] | Two Thousand Twelve Omnibus Equity Incentive Plan Post May Fifteen Two Thousand Thirteen Amendment [Member] | Two Thousand Twelve Omnibus Equity Incentive Plan [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Employees, Directors and Other Persons Who Provide Services to the Company and its Subsidiaries [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares available for issuance under the Plan | 8,500,000 | 14,500,000 | ||||||||
Approval date of 2012 Omnibus Incentive Plan | 15-May-13 | |||||||||
Number of stock option grants | 3,015,000 | |||||||||
Vesting period | 5 years | |||||||||
Stock options, expiration period | 10 years | |||||||||
Share-based compensation expense | $7.10 | $9.30 | $2.40 | $1.70 | $7.10 | $9.30 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ||||
Net income | $68.20 | $6.60 | $166.90 | $69.10 |
Denominator: | ||||
Weighted average shares - basic | 351.2 | 350 | 350.9 | 349.4 |
Effect of dilutive securities | 6.9 | 5 | 6.8 | 3.9 |
Weighted average shares - diluted | 358.1 | 355 | 357.7 | 353.3 |
Basic earnings per share | $0.19 | $0.02 | $0.48 | $0.20 |
Diluted earnings per share | $0.19 | $0.02 | $0.47 | $0.20 |
Anti-dilutive stock options outstanding | 2.9 | 0.3 | 2.9 | 3.6 |
Franchise_and_Property_Revenue2
Franchise and Property Revenues - Summary of Franchise and Property Revenues (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Franchisor Revenue [Abstract] | ||||
Franchise royalties | $171.80 | $158.60 | $486 | $448.10 |
Property revenues | 54.8 | 42.9 | 159.7 | 106.9 |
Franchise fees and other revenue | 21.5 | 9.6 | 34.6 | 24.7 |
Total | $248.10 | $211.10 | $680.30 | $579.70 |
Franchise_and_Property_Revenue3
Franchise and Property Revenues - Restaurant Count for Geographic Areas (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Restaurants | |
Number of Company Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 418 |
Openings | |
Closures | -6 |
Refranchisings | -338 |
Restaurant count at ending | 74 |
Number of Franchise Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 12,579 |
Openings | 436 |
Closures | -168 |
Refranchisings | 338 |
Restaurant count at ending | 13,185 |
Number of System-Wide Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 12,997 |
Openings | 436 |
Closures | -174 |
Refranchisings | |
Restaurant count at ending | 13,259 |
U.S. and Canada [Member] | Number of Company Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 183 |
Openings | |
Closures | -4 |
Refranchisings | -127 |
Restaurant count at ending | 52 |
U.S. and Canada [Member] | Number of Franchise Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 7,293 |
Openings | 26 |
Closures | -94 |
Refranchisings | 127 |
Restaurant count at ending | 7,352 |
U.S. and Canada [Member] | Number of System-Wide Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 7,476 |
Openings | 26 |
Closures | -98 |
Refranchisings | |
Restaurant count at ending | 7,404 |
EMEA [Member] | Number of Company Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 132 |
Openings | |
Closures | |
Refranchisings | -113 |
Restaurant count at ending | 19 |
EMEA [Member] | Number of Franchise Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 2,989 |
Openings | 214 |
Closures | -45 |
Refranchisings | 113 |
Restaurant count at ending | 3,271 |
EMEA [Member] | Number of System-Wide Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 3,121 |
Openings | 214 |
Closures | -45 |
Refranchisings | |
Restaurant count at ending | 3,290 |
LAC [Member] | Number of Company Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 100 |
Openings | |
Closures | -2 |
Refranchisings | -98 |
Restaurant count at ending | |
LAC [Member] | Number of Franchise Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 1,290 |
Openings | 66 |
Closures | -3 |
Refranchisings | 98 |
Restaurant count at ending | 1,451 |
LAC [Member] | Number of System-Wide Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 1,390 |
Openings | 66 |
Closures | -5 |
Refranchisings | |
Restaurant count at ending | 1,451 |
APAC [Member] | Number of Company Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 3 |
Openings | |
Closures | |
Refranchisings | |
Restaurant count at ending | 3 |
APAC [Member] | Number of Franchise Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 1,007 |
Openings | 130 |
Closures | -26 |
Refranchisings | |
Restaurant count at ending | 1,111 |
APAC [Member] | Number of System-Wide Restaurants [Member] | |
Operation By Geographical [Line Items] | |
Restaurant count at beginning | 1,010 |
Openings | 130 |
Closures | -26 |
Refranchisings | |
Restaurant count at ending | 1,114 |
Other_Operating_Expenses_Incom2
Other Operating Expenses (Income), Net - Other Operating Expenses (Income), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Income And Expenses [Abstract] | ||||
Net (gains) losses on disposal of assets, restaurant closures and refranchisings | $0.30 | $14.10 | $0.60 | $15.20 |
Litigation settlements and reserves, net | 0.1 | 0.8 | 0.6 | 1.3 |
Foreign exchange net losses (gains) | 0.5 | 1.5 | 6.1 | -5.3 |
Loss on termination of interest rate cap | 8.7 | 8.7 | ||
Equity in net loss (income) from unconsolidated affiliates | 2.9 | -0.4 | 9.7 | 1.4 |
Other, net | 2.8 | 5.6 | 4.1 | 4.9 |
Other operating expenses (income), net | $6.60 | $30.30 | $21.10 | $26.20 |
Other_Operating_Expenses_Incom3
Other Operating Expenses (Income), Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Component Of Other Income And Expense [Line Items] | ||||
Net (gains) losses on disposal of assets, restaurant closures and refranchisings | $0.30 | $14.10 | $0.60 | $15.20 |
Net (gain) losses associated with asset disposals and restaurant closures | -0.1 | 1.7 | 1.9 | 6.8 |
Net losses associated with sale of subsidiaries | 1 | |||
Losses associated with long-lived for restaurants classified as held for sale | 13.2 | |||
Restaurant Closures and Refranchisings [Member] | ||||
Component Of Other Income And Expense [Line Items] | ||||
Net (gains) losses on disposal of assets, restaurant closures and refranchisings | $0.40 | $12.40 | $2.30 | $4.80 |
Guarantees_Commitments_and_Con1
Guarantees, Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Program | |
Commitments And Contingencies Disclosure [Abstract] | |
Loans amount outstanding to franchise | $107 |
Additional borrowing capacity | 219.8 |
Number of programs | 5 |
Maximum guarantee liability | 31.9 |
Fair value of guarantee obligation | 4.3 |
Payments made for guarantee | $0 |
Segment_Reporting_Revenues_by_
Segment Reporting - Revenues by Geographic Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $275.10 | $455.70 | $881.10 | $1,566.40 |
U.S. and Canada [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 172.1 | 288 | 509.6 | 1,032.30 |
EMEA [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 71.3 | 111.7 | 265.7 | 354.2 |
LAC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 18.1 | 33.5 | 65.2 | 96.3 |
APAC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $13.60 | $22.50 | $40.60 | $83.60 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $275.10 | $455.70 | $881.10 | $1,566.40 |
United States [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Revenues | 164.5 | 246 | 455.6 | 916.6 |
Germany [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue percentage | 10.00% | 10.00% | 10.00% | |
Revenues | $53.70 | $98.10 | $161.20 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Income to Net Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Depreciation and amortization | $15,700,000 | $28,600,000 | $48,400,000 | $96,000,000 |
Segment Income: | ||||
Adjusted EBITDA | 176,000,000 | 162,900,000 | 483,500,000 | 479,900,000 |
Share-based compensation and non-cash incentive compensation expense | 3,500,000 | 2,600,000 | 9,400,000 | 6,100,000 |
Global portfolio realignment project costs | 4,700,000 | 7,000,000 | 23,600,000 | 20,100,000 |
Business combination agreement expenses | 600,000 | 25,700,000 | ||
Other operating expenses (income), net | 6,600,000 | 30,300,000 | 21,100,000 | 26,200,000 |
EBITDA | 161,200,000 | 122,400,000 | 429,400,000 | 401,800,000 |
Depreciation and amortization | 15,700,000 | 28,600,000 | 48,400,000 | 96,000,000 |
Income from operations | 145,500,000 | 93,800,000 | 381,100,000 | 305,800,000 |
Interest expense, net | 50,200,000 | 57,300,000 | 149,300,000 | 173,600,000 |
Loss on early extinguishment of debt | 23,000,000 | 34,200,000 | ||
Income tax expense | 27,100,000 | 6,900,000 | 64,900,000 | 28,900,000 |
Net income | 68,200,000 | 6,600,000 | 166,900,000 | 69,100,000 |
Ebitda [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Depreciation and amortization | 48.3 | |||
Segment Income: | ||||
Depreciation and amortization | 48.3 | |||
Unallocated Management G&A [Member] | ||||
Segment Income: | ||||
Income from operations | -21,500,000 | -19,100,000 | -59,400,000 | -58,500,000 |
U.S. and Canada [Member] | ||||
Segment Income: | ||||
Income from operations | 120,900,000 | 112,100,000 | 326,600,000 | 341,100,000 |
EMEA [Member] | ||||
Segment Income: | ||||
Income from operations | 49,200,000 | 42,800,000 | 136,500,000 | 118,400,000 |
LAC [Member] | ||||
Segment Income: | ||||
Income from operations | 16,000,000 | 17,200,000 | 46,600,000 | 50,200,000 |
APAC [Member] | ||||
Segment Income: | ||||
Income from operations | $11,400,000 | $9,900,000 | $33,200,000 | $28,700,000 |
Supplemental_Financial_Informa2
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $764.30 | $546.70 | $482.80 | $459 |
Trade and notes receivable, net | 164.6 | 179 | ||
Prepaids and other current assets, net | 99.6 | 91.3 | ||
Deferred income taxes, net | 38 | 73.5 | ||
Total current assets | 1,066.50 | 890.5 | ||
Property and equipment, net | 804.6 | 885.2 | ||
Intangible assets, net | 2,799.30 | 2,811.20 | ||
Goodwill | 626.5 | 619.2 | ||
Net investment in property leased to franchisees | 167.4 | 180.4 | ||
Other assets, net | 306.9 | 177.5 | ||
Total assets | 5,771.20 | 5,564 | ||
Current liabilities: | ||||
Accounts and drafts payable | 25.8 | 68.7 | ||
Accrued advertising | 101.2 | 66.5 | ||
Other accrued liabilities | 182 | 206.8 | ||
Current portion of long term debt and capital leases | 75 | 55.8 | ||
Total current liabilities | 384 | 397.8 | ||
Term debt, net of current portion | 2,890.80 | 2,905.10 | ||
Capital leases, net of current portion | 78.5 | 88.4 | ||
Other liabilities, net | 354.8 | 382.4 | ||
Deferred income taxes, net | 664.5 | 615.3 | ||
Total liabilities | 4,372.60 | 4,389 | ||
Stockholders' equity: | ||||
Common stock | 3.5 | 3.5 | ||
Additional paid-in capital | 1,223 | 1,205.70 | ||
Retained earnings | 183.3 | 76.1 | ||
Accumulated other comprehensive loss | -11.2 | -110.3 | ||
Total stockholders' equity | 1,398.60 | 1,175 | ||
Total liabilities and stockholders' equity | 5,771.20 | 5,564 | ||
Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 600.6 | 355.3 | 227.5 | 287.1 |
Trade and notes receivable, net | 118.2 | 128.8 | ||
Prepaids and other current assets, net | 76.5 | 70.9 | ||
Deferred income taxes, net | 32.3 | 36.3 | ||
Total current assets | 827.6 | 591.3 | ||
Property and equipment, net | 732.2 | 754.7 | ||
Intangible assets, net | 1,536.50 | 1,554.70 | ||
Goodwill | 359.6 | 355 | ||
Net investment in property leased to franchisees | 155.4 | 167 | ||
Intercompany receivable | 58 | 190.9 | ||
Investment in subsidiaries | 1,576.20 | 1,517.20 | ||
Other assets, net | 239.1 | 106.6 | ||
Total assets | 5,484.60 | 5,237.40 | ||
Current liabilities: | ||||
Accounts and drafts payable | 20.6 | 45 | ||
Accrued advertising | 69.5 | 30.7 | ||
Other accrued liabilities | 157 | 157.1 | ||
Current portion of long term debt and capital leases | 71.8 | 52.6 | ||
Total current liabilities | 318.9 | 285.4 | ||
Term debt, net of current portion | 2,449.70 | 2,498 | ||
Capital leases, net of current portion | 59.5 | 66.2 | ||
Other liabilities, net | 308.8 | 322.6 | ||
Deferred income taxes, net | 575.9 | 527.6 | ||
Total liabilities | 3,712.80 | 3,699.80 | ||
Stockholders' equity: | ||||
Additional paid-in capital | 1,442.20 | 1,478.30 | ||
Retained earnings | 361.5 | 169.6 | ||
Accumulated other comprehensive loss | -11.2 | -110.3 | ||
Total stockholders' equity | 1,792.50 | 1,537.60 | ||
Total liabilities and stockholders' equity | 5,505.30 | 5,237.40 | ||
Guarantors [Member] | ||||
Current assets: | ||||
Investment in subsidiaries | 1,792.50 | 1,537.60 | ||
Total assets | 1,792.50 | 1,537.60 | ||
Stockholders' equity: | ||||
Additional paid-in capital | 1,443.20 | 1,479.30 | ||
Retained earnings | 360.5 | 168.6 | ||
Accumulated other comprehensive loss | -11.2 | -110.3 | ||
Total stockholders' equity | 1,792.50 | 1,537.60 | ||
Total liabilities and stockholders' equity | 1,792.50 | 1,537.60 | ||
Non-Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 160.4 | 191.3 | 254.7 | 171.7 |
Trade and notes receivable, net | 46.4 | 50.2 | ||
Prepaids and other current assets, net | 22.4 | 19.8 | ||
Deferred income taxes, net | 3.9 | 16.2 | ||
Total current assets | 233.1 | 277.5 | ||
Property and equipment, net | 72.4 | 130.5 | ||
Intangible assets, net | 1,262.80 | 1,256.50 | ||
Goodwill | 266.9 | 264.2 | ||
Net investment in property leased to franchisees | 12 | 13.4 | ||
Other assets, net | 61.9 | 64.4 | ||
Total assets | 1,909.10 | 2,006.50 | ||
Current liabilities: | ||||
Accounts and drafts payable | 5.2 | 23.7 | ||
Accrued advertising | 31.7 | 35.8 | ||
Other accrued liabilities | 37.2 | 61.8 | ||
Current portion of long term debt and capital leases | 3.2 | 3.2 | ||
Total current liabilities | 77.3 | 124.5 | ||
Capital leases, net of current portion | 19 | 22.2 | ||
Other liabilities, net | 45.6 | 59.6 | ||
Payables to affiliates | 67.7 | 190.6 | ||
Deferred income taxes, net | 93.1 | 92.4 | ||
Total liabilities | 302.7 | 489.3 | ||
Stockholders' equity: | ||||
Additional paid-in capital | 1,313.30 | 1,386.90 | ||
Retained earnings | 307.7 | 206.7 | ||
Accumulated other comprehensive loss | -44.8 | -76.4 | ||
Total stockholders' equity | 1,576.20 | 1,517.20 | ||
Total liabilities and stockholders' equity | 1,878.90 | 2,006.50 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany receivable | -68.2 | -194.7 | ||
Investment in subsidiaries | -6,542 | -5,761.90 | ||
Total assets | -6,610.20 | -5,956.60 | ||
Current liabilities: | ||||
Payables to affiliates | -68.2 | -194.7 | ||
Total liabilities | -68.2 | -194.7 | ||
Stockholders' equity: | ||||
Additional paid-in capital | -5,308.90 | -5,509.40 | ||
Retained earnings | -1,311.50 | -659.8 | ||
Accumulated other comprehensive loss | 78.4 | 407.3 | ||
Total stockholders' equity | -6,542 | -5,761.90 | ||
Total liabilities and stockholders' equity | -6,610.20 | -5,956.60 | ||
BKW [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 3.3 | 0.1 | 0.6 | 0.2 |
Deferred income taxes, net | 0.1 | 0.7 | ||
Total current assets | 3.4 | 0.8 | ||
Intercompany receivable | 10.2 | 3.8 | ||
Investment in subsidiaries | 1,380.80 | 1,169.50 | ||
Total assets | 1,394.40 | 1,174.10 | ||
Current liabilities: | ||||
Other accrued liabilities | -0.4 | -0.3 | ||
Total current liabilities | -0.4 | -0.3 | ||
Other liabilities, net | 0.4 | 0.2 | ||
Payables to affiliates | 3.6 | |||
Deferred income taxes, net | -4.2 | -4.4 | ||
Total liabilities | -4.2 | -0.9 | ||
Stockholders' equity: | ||||
Common stock | 3.5 | 3.5 | ||
Additional paid-in capital | 1,223 | 1,205.70 | ||
Retained earnings | 183.3 | 76.1 | ||
Accumulated other comprehensive loss | -11.2 | -110.3 | ||
Total stockholders' equity | 1,398.60 | 1,175 | ||
Total liabilities and stockholders' equity | 1,394.40 | 1,174.10 | ||
BKCH [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | |||
Prepaids and other current assets, net | 0.7 | 0.6 | ||
Deferred income taxes, net | 1.7 | 20.3 | ||
Total current assets | 2.4 | 20.9 | ||
Investment in subsidiaries | 1,792.50 | 1,537.60 | ||
Other assets, net | 5.9 | 6.5 | ||
Total assets | 1,800.80 | 1,565 | ||
Current liabilities: | ||||
Other accrued liabilities | -11.8 | -11.8 | ||
Total current liabilities | -11.8 | -11.8 | ||
Term debt, net of current portion | 441.1 | 407.1 | ||
Payables to affiliates | 0.5 | 0.5 | ||
Deferred income taxes, net | -0.3 | -0.3 | ||
Total liabilities | 429.5 | 395.5 | ||
Stockholders' equity: | ||||
Additional paid-in capital | 1,110.20 | 1,164.90 | ||
Retained earnings | 281.8 | 114.9 | ||
Accumulated other comprehensive loss | -11.2 | -110.3 | ||
Total stockholders' equity | 1,380.80 | 1,169.50 | ||
Total liabilities and stockholders' equity | $1,810.30 | $1,565 |
Supplemental_Financial_Informa3
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Company restaurant revenues | $27 | $244.60 | $200.80 | $986.70 |
Franchise and property revenues | 248.1 | 211.1 | 680.3 | 579.7 |
Total revenues | 275.1 | 455.7 | 881.1 | 1,566.40 |
Company restaurant expenses: | ||||
Food, paper and product costs | 8.5 | 79.7 | 63.8 | 324.7 |
Payroll and employee benefits | 7.4 | 71.9 | 61.6 | 291.6 |
Occupancy and other operating costs | 7 | 64.7 | 52.2 | 259.7 |
Total Company restaurant expenses | 22.9 | 216.3 | 177.6 | 876 |
Franchise and property expenses | 40.5 | 37.7 | 113.5 | 90 |
Selling, general and administrative expenses | 59.6 | 77.6 | 187.8 | 268.4 |
Other operating expenses (income), net | 6.6 | 30.3 | 21.1 | 26.2 |
Total operating costs and expenses | 129.6 | 361.9 | 500 | 1,260.60 |
Income (loss) from operations | 145.5 | 93.8 | 381.1 | 305.8 |
Interest expense, net | 50.2 | 57.3 | 149.3 | 173.6 |
Loss on early extinguishment of debt | 23 | 34.2 | ||
Income (loss) before income taxes | 95.3 | 13.5 | 231.8 | 98 |
Income tax expense (benefit) | 27.1 | 6.9 | 64.9 | 28.9 |
Income (loss) from continuing operations | 68.2 | 6.6 | 166.9 | 69.1 |
Net income | 68.2 | 6.6 | 166.9 | 69.1 |
Total comprehensive income (loss) | 100.9 | 24 | 266 | 57 |
Issuer [Member] | ||||
Revenues: | ||||
Company restaurant revenues | 18.7 | 126.8 | 57.2 | 590.9 |
Franchise and property revenues | 167.1 | 141.9 | 455.6 | 381.6 |
Intercompany revenues | 1.7 | 1.6 | 5 | |
Total revenues | 185.8 | 270.4 | 514.4 | 977.5 |
Company restaurant expenses: | ||||
Food, paper and product costs | 5.9 | 41.6 | 18.2 | 196 |
Payroll and employee benefits | 5.1 | 37.4 | 16 | 177.5 |
Occupancy and other operating costs | 4.6 | 32.6 | 15.7 | 145.2 |
Total Company restaurant expenses | 15.6 | 111.6 | 49.9 | 518.7 |
Franchise and property expenses | 29 | 27.7 | 81.2 | 62.7 |
Selling, general and administrative expenses | 43.8 | 52.1 | 131 | 168.1 |
Intercompany expenses | -0.6 | -1.3 | -0.9 | -1.3 |
Other operating expenses (income), net | 0.6 | 12.7 | 14.8 | 35.1 |
Total operating costs and expenses | 88.4 | 202.8 | 276 | 783.3 |
Income (loss) from operations | 97.4 | 67.6 | 238.4 | 194.2 |
Interest expense, net | 37.6 | 44.1 | 111.8 | 133.3 |
Loss on early extinguishment of debt | 23 | 24.5 | ||
Income (loss) before income taxes | 59.8 | 0.5 | 126.6 | 36.4 |
Income tax expense (benefit) | 17.2 | 5.1 | 35.7 | 24.2 |
Income (loss) from continuing operations | 42.6 | -4.6 | 90.9 | 12.2 |
Equity in earnings of subsidiaries | 34.2 | 20.2 | 101 | 101.4 |
Net income | 76.8 | 15.6 | 191.9 | 113.6 |
Total comprehensive income (loss) | 109.5 | 33 | 291 | 101.5 |
Guarantors [Member] | ||||
Company restaurant expenses: | ||||
Loss on early extinguishment of debt | ||||
Equity in earnings of subsidiaries | 76.8 | 15.6 | 191.9 | 113.6 |
Net income | 76.8 | 15.6 | 191.9 | 113.6 |
Total comprehensive income (loss) | 109.5 | 33 | 291 | 101.5 |
Non-Guarantors [Member] | ||||
Revenues: | ||||
Company restaurant revenues | 8.3 | 117.8 | 143.6 | 395.8 |
Franchise and property revenues | 81 | 69.2 | 224.7 | 198.1 |
Intercompany revenues | -5 | -1.6 | -5 | |
Total revenues | 89.3 | 182 | 366.7 | 588.9 |
Company restaurant expenses: | ||||
Food, paper and product costs | 2.6 | 38.1 | 45.6 | 128.7 |
Payroll and employee benefits | 2.3 | 34.5 | 45.6 | 114.1 |
Occupancy and other operating costs | 2.4 | 32.1 | 36.5 | 114.5 |
Total Company restaurant expenses | 7.3 | 104.7 | 127.7 | 357.3 |
Franchise and property expenses | 11.5 | 10 | 32.3 | 27.3 |
Selling, general and administrative expenses | 15.8 | 27.2 | 56.8 | 86.3 |
Intercompany expenses | 0.6 | -2 | 0.9 | 1.3 |
Other operating expenses (income), net | 6 | 17.6 | 6.3 | -8.9 |
Total operating costs and expenses | 41.2 | 157.5 | 224 | 463.3 |
Income (loss) from operations | 48.1 | 24.5 | 142.7 | 125.6 |
Interest expense, net | 0.8 | 2.5 | 3 | 7.2 |
Loss on early extinguishment of debt | ||||
Income (loss) before income taxes | 47.3 | 22 | 139.7 | 118.4 |
Income tax expense (benefit) | -13.1 | 1.8 | 38.7 | 17 |
Income (loss) from continuing operations | 34.2 | 20.2 | 101 | 101.4 |
Net income | 34.2 | 20.2 | 101 | 101.4 |
Total comprehensive income (loss) | 78.8 | 41.8 | 132.6 | 96 |
Eliminations [Member] | ||||
Revenues: | ||||
Intercompany revenues | 3.3 | |||
Total revenues | 3.3 | |||
Company restaurant expenses: | ||||
Intercompany expenses | 3.3 | |||
Total operating costs and expenses | 3.3 | |||
Loss on early extinguishment of debt | ||||
Equity in earnings of subsidiaries | -256 | -59.9 | -651.7 | -411.3 |
Net income | -256 | -59.9 | -651.7 | -411.3 |
Total comprehensive income (loss) | -398.7 | -133.7 | -980.6 | -369.6 |
BKW [Member] | ||||
Company restaurant expenses: | ||||
Selling, general and administrative expenses | -1.7 | 14 | ||
Total operating costs and expenses | -1.7 | 14 | ||
Income (loss) from operations | 1.7 | -14 | ||
Loss on early extinguishment of debt | ||||
Income (loss) before income taxes | 1.7 | -14 | ||
Income tax expense (benefit) | 3.6 | -0.4 | ||
Income (loss) from continuing operations | -1.9 | -13.6 | ||
Equity in earnings of subsidiaries | 68.2 | 8.5 | 166.9 | 82.7 |
Net income | 68.2 | 6.6 | 166.9 | 69.1 |
Total comprehensive income (loss) | 100.9 | 24 | 266 | 57 |
BKCH [Member] | ||||
Company restaurant expenses: | ||||
Interest expense, net | 11.8 | 10.7 | 34.5 | 33.1 |
Loss on early extinguishment of debt | 9.7 | |||
Income (loss) before income taxes | -11.8 | -10.7 | -34.5 | -42.8 |
Income tax expense (benefit) | -3.2 | -3.6 | -9.5 | -11.9 |
Income (loss) from continuing operations | -8.6 | -7.1 | -25 | -30.9 |
Equity in earnings of subsidiaries | 76.8 | 15.6 | 191.9 | 113.6 |
Net income | 68.2 | 8.5 | 166.9 | 82.7 |
Total comprehensive income (loss) | $100.90 | $25.90 | $266 | $70.60 |
Supplemental_Financial_Informa4
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ||
Net income | $166,900,000 | $69,100,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 48,400,000 | 96,000,000 |
Loss on early extinguishment of debt | 34,200,000 | |
Amortization of deferred financing cost and debt issuance discount | 41,700,000 | 43,600,000 |
Equity in net loss from unconsolidated affiliates | 9,700,000 | 1,400,000 |
Loss (gain) on remeasurement of foreign denominated transactions | 1,000,000 | -5,400,000 |
Amortization of defined benefit pension and postretirement items | -1,600,000 | -1,800,000 |
Realized loss on terminated caps/swaps | 4,300,000 | 10,700,000 |
Net loss (gain) on refranchisings and dispositions of assets | -2,500,000 | 10,400,000 |
Bad debt expense, net of recoveries | 2,200,000 | 2,900,000 |
Share-based compensation | 7,100,000 | 9,300,000 |
Deferred income taxes | 33,300,000 | 8,000,000 |
Changes in current assets and liabilities, excluding dispositions: | ||
Trade and notes receivables | 6,300,000 | -4,100,000 |
Prepaids and other current assets | -200,000 | -8,900,000 |
Accounts and drafts payable | -35,700,000 | -34,700,000 |
Accrued advertising | 9,700,000 | -31,000,000 |
Other accrued liabilities | -4,900,000 | -47,700,000 |
Other long-term assets and liabilities | -18,000,000 | -7,400,000 |
Net cash provided by operating activities | 267,700,000 | 144,600,000 |
Cash flows from investing activities: | ||
Payments for property and equipment | -10,800,000 | -37,700,000 |
Proceeds from refranchisings, disposition of assets and restaurant closures | 48,700,000 | 70,000,000 |
Payments for acquired franchisee operations, net of cash acquired | -11,900,000 | -15,300,000 |
Return of investment on direct financing leases | 11,900,000 | 10,400,000 |
Other investing activities | 200,000 | |
Net cash provided by investing activities | 38,100,000 | 27,400,000 |
Cash flows from financing activities: | ||
Proceeds from term debt | 1,733,500,000 | |
Repayments of term debt and capital leases | -38,100,000 | -1,754,700,000 |
Extinguishment of debt | -112,800,000 | |
Payment of financing costs | -16,000,000 | |
Proceeds from stock option exercises | 2,700,000 | 1,300,000 |
Excess tax benefits from share-based compensation | 4,200,000 | |
Dividends paid on common stock | -59,700,000 | |
Net cash used for financing activities | -90,900,000 | -148,700,000 |
Effect of exchange rates on cash and cash equivalents | 2,700,000 | 500,000 |
Increase (decrease) in cash and cash equivalents | 217,600,000 | 23,800,000 |
Cash and cash equivalents at beginning of period | 546,700,000 | 459,000,000 |
Cash and cash equivalents at end of period | 764,300,000 | 482,800,000 |
Issuer [Member] | ||
Cash flows from operating activities: | ||
Net income | 191,900,000 | 113,600,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in earnings of subsidiary | -101,000,000 | -101,400,000 |
Depreciation and amortization | 32,600,000 | 65,600,000 |
Loss on early extinguishment of debt | 24,500,000 | |
Amortization of deferred financing cost and debt issuance discount | 7,200,000 | 10,400,000 |
Equity in net loss from unconsolidated affiliates | 4,500,000 | 100,000 |
Loss (gain) on remeasurement of foreign denominated transactions | -500,000 | -3,700,000 |
Amortization of defined benefit pension and postretirement items | -1,100,000 | -1,800,000 |
Realized loss on terminated caps/swaps | 4,300,000 | 10,700,000 |
Net loss (gain) on refranchisings and dispositions of assets | 5,400,000 | 20,300,000 |
Bad debt expense, net of recoveries | 2,200,000 | 3,000,000 |
Share-based compensation | 5,400,000 | 8,400,000 |
Deferred income taxes | 7,600,000 | 7,900,000 |
Changes in current assets and liabilities, excluding dispositions: | ||
Trade and notes receivables | 7,700,000 | -6,700,000 |
Prepaids and other current assets | -1,000,000 | -4,500,000 |
Accounts and drafts payable | -24,600,000 | -18,500,000 |
Accrued advertising | 14,000,000 | -41,000,000 |
Other accrued liabilities | 9,500,000 | -7,100,000 |
Other long-term assets and liabilities | -19,200,000 | -11,300,000 |
Net cash provided by operating activities | 144,900,000 | 68,500,000 |
Cash flows from investing activities: | ||
Payments for property and equipment | -8,500,000 | -29,500,000 |
Proceeds from refranchisings, disposition of assets and restaurant closures | 45,100,000 | 54,300,000 |
Payments for acquired franchisee operations, net of cash acquired | -11,900,000 | |
Return of investment on direct financing leases | 10,900,000 | 9,400,000 |
Other investing activities | 200,000 | |
Net cash provided by investing activities | 35,800,000 | 34,200,000 |
Cash flows from financing activities: | ||
Proceeds from term debt | 1,733,500,000 | |
Repayments of term debt and capital leases | -35,500,000 | -1,752,600,000 |
Extinguishment of debt | -50,200,000 | |
Payment of financing costs | -16,000,000 | |
Excess tax benefits from share-based compensation | 4,200,000 | |
Intercompany financing | 95,900,000 | -77,000,000 |
Net cash used for financing activities | 64,600,000 | -162,300,000 |
Increase (decrease) in cash and cash equivalents | 245,300,000 | -59,600,000 |
Cash and cash equivalents at beginning of period | 355,300,000 | 287,100,000 |
Cash and cash equivalents at end of period | 600,600,000 | 227,500,000 |
Guarantors [Member] | ||
Cash flows from operating activities: | ||
Net income | 191,900,000 | 113,600,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in earnings of subsidiary | -191,900,000 | -113,600,000 |
Loss on early extinguishment of debt | ||
Non-Guarantors [Member] | ||
Cash flows from operating activities: | ||
Net income | 101,000,000 | 101,400,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,800,000 | 30,400,000 |
Loss on early extinguishment of debt | ||
Equity in net loss from unconsolidated affiliates | 5,200,000 | 1,300,000 |
Loss (gain) on remeasurement of foreign denominated transactions | 1,500,000 | -1,700,000 |
Amortization of defined benefit pension and postretirement items | -500,000 | |
Net loss (gain) on refranchisings and dispositions of assets | -7,900,000 | -9,900,000 |
Bad debt expense, net of recoveries | -100,000 | |
Share-based compensation | 1,700,000 | 900,000 |
Deferred income taxes | 9,200,000 | |
Changes in current assets and liabilities, excluding dispositions: | ||
Trade and notes receivables | -1,400,000 | 2,600,000 |
Prepaids and other current assets | 800,000 | -4,400,000 |
Accounts and drafts payable | -11,100,000 | -16,200,000 |
Accrued advertising | -4,300,000 | 10,000,000 |
Other accrued liabilities | -14,400,000 | -27,000,000 |
Other long-term assets and liabilities | 1,200,000 | 3,900,000 |
Net cash provided by operating activities | 96,800,000 | 91,200,000 |
Cash flows from investing activities: | ||
Payments for property and equipment | -2,300,000 | -8,200,000 |
Proceeds from refranchisings, disposition of assets and restaurant closures | 3,600,000 | 15,700,000 |
Payments for acquired franchisee operations, net of cash acquired | -15,300,000 | |
Return of investment on direct financing leases | 1,000,000 | 1,000,000 |
Net cash provided by investing activities | 2,300,000 | -6,800,000 |
Cash flows from financing activities: | ||
Repayments of term debt and capital leases | -2,600,000 | -2,100,000 |
Intercompany financing | -130,100,000 | 200,000 |
Net cash used for financing activities | -132,700,000 | -1,900,000 |
Effect of exchange rates on cash and cash equivalents | 2,700,000 | 500,000 |
Increase (decrease) in cash and cash equivalents | -30,900,000 | 83,000,000 |
Cash and cash equivalents at beginning of period | 191,300,000 | 171,700,000 |
Cash and cash equivalents at end of period | 160,400,000 | 254,700,000 |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net income | -651,700,000 | -411,300,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in earnings of subsidiary | 651,700,000 | 411,300,000 |
Loss on early extinguishment of debt | ||
BKW [Member] | ||
Cash flows from operating activities: | ||
Net income | 166,900,000 | 69,100,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in earnings of subsidiary | -166,900,000 | -82,700,000 |
Loss on early extinguishment of debt | ||
Changes in current assets and liabilities, excluding dispositions: | ||
Other accrued liabilities | 4,800,000 | |
Net cash provided by operating activities | -8,800,000 | |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 2,700,000 | 1,300,000 |
Dividends paid on common stock | -59,700,000 | |
Intercompany financing | 60,200,000 | 7,900,000 |
Net cash used for financing activities | 3,200,000 | 9,200,000 |
Increase (decrease) in cash and cash equivalents | 3,200,000 | 400,000 |
Cash and cash equivalents at beginning of period | 100,000 | 200,000 |
Cash and cash equivalents at end of period | 3,300,000 | 600,000 |
BKCH [Member] | ||
Cash flows from operating activities: | ||
Net income | 166,900,000 | 82,700,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in earnings of subsidiary | -191,900,000 | -113,600,000 |
Loss on early extinguishment of debt | 9,700,000 | |
Amortization of deferred financing cost and debt issuance discount | 34,500,000 | 33,200,000 |
Deferred income taxes | 16,500,000 | 100,000 |
Changes in current assets and liabilities, excluding dispositions: | ||
Other accrued liabilities | -18,400,000 | |
Net cash provided by operating activities | 26,000,000 | -6,300,000 |
Cash flows from financing activities: | ||
Extinguishment of debt | -62,600,000 | |
Intercompany financing | -26,000,000 | 68,900,000 |
Net cash used for financing activities | -26,000,000 | 6,300,000 |
Increase (decrease) in cash and cash equivalents | 0 | |
Cash and cash equivalents at end of period | $0 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $) | 9 Months Ended | |
Sep. 30, 2013 | Oct. 27, 2013 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividend to be paid date | 26-Nov-13 | |
Dividend payable record date | 12-Nov-13 | |
Cash dividend declared by board | $0.07 |