Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Entity Registrant Name | 'Burger King Worldwide, Inc. |
Entity Central Index Key | '0001547282 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 351,963,073 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,013.70 | $786.90 |
Trade and notes receivable, net | 167.6 | 179.7 |
Prepaids and other current assets, net | 101.5 | 69.8 |
Deferred income taxes, net | 79.8 | 38 |
Total current assets | 1,362.60 | 1,074.40 |
Property and equipment, net of accumulated depreciation of $216.9 million and $187.9 million, respectively | 774.3 | 801.5 |
Intangible assets, net | 2,693.10 | 2,796 |
Goodwill | 612.9 | 630 |
Net investment in property leased to franchisees | 145.1 | 163.1 |
Other assets, net | 215.1 | 363.5 |
Total assets | 5,803.10 | 5,828.50 |
Current liabilities: | ' | ' |
Accounts and drafts payable | 34 | 31.1 |
Accrued advertising | 59.5 | 56.5 |
Other accrued liabilities | 411.4 | 177 |
Current portion of long term debt and capital leases | 100.2 | 81.4 |
Total current liabilities | 605.1 | 346 |
Term debt, net of current portion | 2,850.30 | 2,880.20 |
Capital leases, net of current portion | 66.5 | 75.4 |
Other liabilities, net | 269.4 | 317.9 |
Deferred income taxes, net | 630.7 | 692.8 |
Total liabilities | 4,422 | 4,312.30 |
Guarantees, Commitments and Contingencies (Note 19) | ' | ' |
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; 352,308,359 shares issued at September 30, 2014; 352,161,950 shares issued at December 31, 2013; | 3.5 | 3.5 |
Additional paid-in capital | 1,252.80 | 1,239.90 |
Retained earnings | 260.1 | 225.5 |
Accumulated other comprehensive income (loss) | -128 | 54.6 |
Treasury stock, at cost; 345,286 shares at September 30, 2014 and 345,286 shares at December 31, 2013 | -7.3 | -7.3 |
Total stockholders' equity | 1,381.10 | 1,516.20 |
Total liabilities and stockholders' equity | $5,803.10 | $5,828.50 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Property and equipment, accumulated depreciation | $216.90 | $187.90 |
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 | 352,308,359 | 352,161,950 |
Treasury stock, at cost, shares | 345,286 | 345,286 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Franchise and property revenues | $260 | $248.10 | $725.30 | $680.30 |
Company restaurant revenues | 18.9 | 27 | 55.7 | 200.8 |
Total revenues | 278.9 | 275.1 | 781 | 881.1 |
Franchise and property expenses | 41.4 | 40.5 | 114.5 | 113.5 |
Company restaurant expenses | 16.5 | 22.9 | 47.7 | 177.6 |
Selling, general and administrative expenses | 78.3 | 59.6 | 173.5 | 187.8 |
Other operating expenses (income), net | 141.8 | 6.6 | 161.6 | 21.1 |
Total operating costs and expenses | 278 | 129.6 | 497.3 | 500 |
Income from operations | 0.9 | 145.5 | 283.7 | 381.1 |
Interest expense, net | 51.3 | 50.2 | 151.9 | 149.3 |
(Loss) income before income taxes | -50.4 | 95.3 | 131.8 | 231.8 |
Income tax (benefit) expense | -26.9 | 27.1 | 19.8 | 64.9 |
Net income (loss) | ($23.50) | $68.20 | $112 | $166.90 |
Earnings (loss) per share: | ' | ' | ' | ' |
Basic | ($0.07) | $0.19 | $0.32 | $0.48 |
Diluted | ($0.07) | $0.19 | $0.31 | $0.47 |
Weighted average shares outstanding | ' | ' | ' | ' |
Basic | 352 | 351.2 | 351.9 | 350.9 |
Diluted | 352 | 358.1 | 359.2 | 357.7 |
Dividends per common share | $0.08 | $0.06 | $0.22 | $0.17 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($23.50) | $68.20 | $112 | $166.90 |
Foreign currency translation adjustment | -109 | 44.6 | -118.7 | 31.6 |
Reclassification of foreign currency translation adjustment into net income | ' | ' | ' | -3 |
Net change in fair value of net investment hedges (net of tax of $13.6, $6.5, $14.2 and $3.6) | 21.4 | -10.1 | 22.4 | -5.6 |
Net change in fair value of interest rate derivatives (net of tax of $8.7, $1.4, $51.1 and $47.9) | -13.8 | -2.2 | -80.7 | 74.2 |
Amounts reclassified to earnings of cash flow hedges (net of tax of $4.3, $0.7, $2.7 and $1.7) | -6.7 | 1 | -4.1 | 2.6 |
Pension and post-retirement benefit plans (net of tax of $0, $0.4, $0 and $0.7) | ' | -0.4 | ' | -0.1 |
Amortization of prior service (credits) costs (net of tax of $0.3, $0.3, $0.8 and $0.9) | -0.4 | -0.4 | -1.3 | -1.1 |
Amortization of actuarial (gains) loss (net of tax of $0, $0.1, $0 and $0.4) | -0.1 | 0.2 | -0.2 | 0.5 |
Other comprehensive income (loss) | -108.6 | 32.7 | -182.6 | 99.1 |
Total comprehensive income (loss) | ($132.10) | $100.90 | ($70.60) | $266 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Tax effect on change in fair value of investment hedges | $13.60 | $6.50 | $14.20 | $3.60 |
Tax effect on change in fair value of interest rate caps/swaps | 8.7 | 1.4 | 51.1 | 47.9 |
Tax effect on amounts reclassified to earnings of cash flow hedges | 4.3 | 0.7 | 2.7 | 1.7 |
Tax effect on pension and post-retirement benefit plans | 0 | 0.4 | 0 | 0.7 |
Tax effect on amortization prior service costs | 0.3 | 0.3 | 0.8 | 0.9 |
Tax effect on amortization of actuarial losses | $0 | $0.10 | $0 | $0.40 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $112 | $166.90 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48.7 | 48.4 |
Amortization of deferred financing costs and debt issuance discount | 45.7 | 41.7 |
Equity in net loss from unconsolidated affiliates | 5.8 | 9.7 |
(Gain) loss on remeasurement of foreign denominated transactions | -22 | 1 |
Amortization of defined benefit pension and postretirement items | -2.4 | -1.6 |
Net losses (gains) on derivatives | 154.5 | 4.3 |
Net losses (gains) on refranchisings and dispositions of assets | 11.8 | -2.5 |
Bad debt expense, net | 0.9 | 2.2 |
Share-based compensation expense | 9.5 | 7.1 |
Deferred income tax (benefit) expense | -59.1 | 33.3 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ' | ' |
Trade and notes receivable | 10 | 6.3 |
Prepaids and other current assets | 10.8 | -0.2 |
Accounts and drafts payable | 1.8 | -35.7 |
Accrued advertising | -22.2 | 9.7 |
Other accrued liabilities | 88 | -4.9 |
Other long-term assets and liabilities | -18.2 | -18 |
Net cash provided by (used for) operating activities | 375.6 | 267.7 |
Cash flows from investing activities: | ' | ' |
Payments for property and equipment | -10.7 | -10.8 |
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | -6.6 | 48.7 |
Net payments for acquired and disposed franchisee operations, net of cash acquired | -3.9 | -11.9 |
Return of investment on direct financing leases | 11.6 | 11.9 |
Other investing activities | -0.2 | 0.2 |
Net cash (used for) provided by investing activities | -9.8 | 38.1 |
Cash flows from financing activities: | ' | ' |
Repayments of term debt and capital leases | -57.3 | -38.1 |
Dividends paid on common stock | -77.4 | -59.7 |
Proceeds from stock option exercises | 0.1 | 2.7 |
Excess tax benefits from share-based compensation | 0.2 | 4.2 |
Net cash provided by (used for) financing activities | -134.4 | -90.9 |
Effect of exchange rates on cash and cash equivalents | -4.6 | 2.7 |
Increase in cash and cash equivalents | 226.8 | 217.6 |
Cash and cash equivalents at beginning of period | 786.9 | 546.7 |
Cash and cash equivalents at end of period | 1,013.70 | 764.3 |
Supplemental cashflow disclosures: | ' | ' |
Interest paid | 82.4 | 85.2 |
Income taxes paid | 28.5 | 24.7 |
Non-cash investing and financing activities: | ' | ' |
Investment in unconsolidated affiliates | ' | 17.8 |
Acquisition of property with capital lease obligations | ' | $1 |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2014 | |
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 accounting principles generally accepted in the United States (“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 21, 2014. | |
The Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries. We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. All material intercompany balances and transactions have been eliminated in consolidation. Investments in affiliates owned 50% or less are accounted for by the equity method. | |
We also consider for consolidation an entity in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its 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. Our most significant variable interests are in entities that operate restaurants under our franchise arrangements and certain equity method investees that operate as master franchisees. We do not have any ownership interests in our franchisees’ businesses, except for our investments in various entities that are accounted for under the equity method. Additionally, we generally do not provide financial support to our franchisees in a typical franchise relationship. As our franchise and master franchise arrangements provide our franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchisee entities. Our maximum exposure to loss resulting from involvement with potential VIEs is attributable to trade and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable. | |
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. | |
All references to USD or $ are to United States dollars, and all references to C$ are to Canadian dollars. |
Tim_Hortons_Transaction
Tim Hortons Transaction | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Tim Hortons Transaction | ' | |||
Note 2. Tim Hortons Transaction | ||||
Burger King Worldwide, Inc. (“BKW”, the “Company” or “we”) and Tim Hortons Inc. (“Tim Hortons”) announced on August 26, 2014, that they had agreed to a transaction (the “Tim Hortons Transaction”) under the terms of the Arrangement Agreement and Plan of Merger (the “arrangement agreement”) by and among Tim Hortons, the Company, 9060669 Canada Inc., a corporation continued under the laws of Canada (f/k/a 1011773 B.C. Unlimited Liability Company) (“Holdings”), New Red Canada Limited Partnership, a limited partnership organized under the laws of Ontario and wholly owned subsidiary of Holdings (f/k/a New Red Canada Partnership) (“Partnership”), Blue Merger Sub, Inc., a corporation incorporated under the laws of Delaware and a wholly owned subsidiary of Partnership (“Merger Sub”), and 8997900 Canada Inc., a corporation organized under the laws of Canada and a wholly owned subsidiary of Partnership (“Amalgamation Sub”). Holdings and Partnership are newly formed entities without significant pre-combination activities. | ||||
To effect the Tim Hortons Transaction, Amalgamation Sub will acquire all of the outstanding shares of Tim Hortons pursuant to a plan of arrangement under Canadian law, which will result in Tim Hortons becoming an indirect subsidiary of both Holdings and Partnership (the “arrangement”). Merger Sub will then merge with and into the Company, with the Company surviving the merger as an indirect subsidiary of both Holdings and Partnership (the “merger” and, together with the arrangement, the “transactions”). Holdings, which will be renamed as mutually agreed between the Company and Tim Hortons and will become a corporation organized under the laws of Canada, will be the general partner of Partnership and own a majority interest in Partnership. The balance of the partnership units of Partnership will initially be held by former holders of Company common stock in the form of newly issued Partnership exchangeable units (as defined below). The Company will be the acquirer in the transactions for accounting purposes. | ||||
If the arrangement is completed, each common shareholder of Tim Hortons will be entitled to receive C$65.50 in cash and 0.8025 newly issued Holdings common shares in exchange for each Tim Hortons common share held by such shareholder. However, Tim Hortons shareholders may make an election to receive cash, which will entitle such shareholder to receive C$88.50 in cash in exchange for each Tim Hortons common share held by such shareholder, or make an election to receive Holdings common shares, which will entitle such shareholder to receive 3.0879 newly issued Holdings common shares in exchange for each Tim Hortons common share held by such shareholder, in each case, subject to proration in accordance with the plan of arrangement. | ||||
If the merger is completed, each share of Company common stock outstanding immediately prior to the effective time of the merger will be converted into the right to receive, if no exchangeable election (as described below) has been made with respect to such common stock, 0.99 newly issued Holdings common shares and 0.01 newly issued exchangeable units of Partnership (“Partnership exchangeable units”), subject to proration as set forth in the arrangement agreement. A stockholder of the Company may make an election to receive consideration solely in the form of Partnership exchangeable units which will entitle such stockholder to receive one Partnership exchangeable unit in exchange for each share of Company common stock, subject to proration as set forth in the arrangement agreement. | ||||
At the effective time of the merger, each outstanding stock option to acquire common stock of the Company (“Company option”) will be converted into the right to receive, on the same terms and conditions as were applicable under the award agreement issued in connection with such Company option (including with respect to vesting and exercise price), an option to acquire common shares from Holdings in respect of the same number of Holdings common shares as were subject to the underlying Company option. At the effective time of the merger, each outstanding restricted stock unit of the Company (each a “Company restricted stock unit”) will be converted into the right to receive, on the same terms and conditions as were applicable under the award agreement issued in connection with such Company restricted stock unit (including with respect to vesting), a restricted stock unit with respect to the same number of Holdings common shares as were subject to the underlying Company restricted stock unit. | ||||
The Company anticipates that the total funds needed to complete the transactions, including the funds needed to: | ||||
• | pay Tim Hortons shareholders (and holders of its other equity-based interests) the amounts due to them under the arrangement agreement and pay related expenses, which would be approximately $8,628.6 million based on the number of common shares of Tim Hortons (and its other equity-based interests) outstanding as of June 30, 2014; and | |||
• | refinance certain indebtedness of the Company and Tim Hortons at the closing of the transactions, which, as of June 30, 2014, was approximately $4,086.9 million; | |||
will be funded through a combination of: | ||||
• | $3,000.0 million in preferred equity contributed by Berkshire Hathaway Inc.; | |||
• | $6,750.0 million of term loans under the senior secured credit facilities (along with a $500.0 million revolving credit facility that will not be drawn to fund the transactions) (the “New Credit Facilities”); | |||
• | the issuance of $2,250.0 million aggregate principal amount of 6.00% senior secured second lien notes due 2022 (the “New Senior Notes”); and | |||
• | the balance will be funded using the Company’s existing cash balance. | |||
On October 8, 2014, 1011778 B.C. Unlimited Liability Company (“Newco”) and New Red Finance, Inc., which are entities created by the Company in connection with the Tim Hortons Transaction (the “New Issuers”), consummated the offering of the New Senior Notes. The gross proceeds from the sale of the New Senior Notes, together with an additional $10.9 million of prepaid interest, were deposited into an escrow account with Wilmington Trust, National Association, as trustee and escrow agent. We intend to make additional deposits in amounts equal to prepaid interest of approximately $11.3 million per month on behalf of the New Issuers until the release of the escrowed funds upon the closing of the Tim Hortons Transaction. Prior to the closing of the Tim Hortons Transaction, the New Senior Notes will not be guaranteed by the Company or any of its subsidiaries or by Tim Hortons or any of its subsidiaries. If the Tim Hortons Transaction is not consummated on or prior to May 26, 2015 and the New Issuers notify the trustee and the escrow agent that the arrangement agreement has been terminated, the New Senior Notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price of the New Senior Notes, plus accrued and unpaid interest from October 8, 2014, to, but not including, the date of such special mandatory redemption. | ||||
On October 27, 2014, the New Issuers entered into a credit agreement with JPMorgan Chase, N.A., as administrative agent, and the other lenders party thereto in connection with the New Credit Facilities, and the proceeds from the $6,750.0 million of term loans under the senior secured credit facilities, together with an additional $27.0 million of prepaid interest, were deposited into an escrow account with JPMorgan Chase, N.A., as escrow agent and administrative agent. We intend to make additional deposits in amounts equal to prepaid interest of approximately $26.2 million per month on behalf of the New Issuers until the release of the escrowed funds upon the closing of the Tim Hortons Transaction. Prior to the closing of the Tim Hortons Transaction, the New Credit Facilities will not be guaranteed by the Company or any of its subsidiaries or by Tim Hortons or any of its subsidiaries. If the Tim Hortons Transaction is not consummated on or prior to May 26, 2015, the escrow agent will promptly release the funds held in the escrow account to the administrative agent. | ||||
During October 2014, Newco entered into derivative instruments as part of an enterprise risk management strategy, developed in connection with the Tim Hortons Transaction, consisting of USD/CAD foreign exchange forwards and interest rate swaps with an aggregate notional amount of approximately $11.0 billion. If the Tim Hortons Transaction is not consummated, Newco will terminate these derivative instruments and we will realize a gain or loss based on the market value of the derivative instruments at the date of the termination. We have entered into guarantees in favor of Newco’s counterparties pursuant to which we agreed to guarantee all amounts payable by Newco under these derivative instruments. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
Note 3. New Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that amends accounting guidance on reporting discontinued operations and disclosures of disposals of components of an entity. Under this guidance, only disposals of a component of an entity that represent a major strategic shift on an entity’s operations and financial results shall be reported in discontinued operations. The guidance also requires the presentation as discontinued operation for an entity that, on acquisition, meets the criteria to be classified as held for sale. In addition, the update expands disclosures for discontinued operations, requires new disclosures regarding disposals of an individually significant component of an entity that does not qualify for discontinued operations presentation and expands disclosures about an entity’s significant continuing involvement with a discontinued operation. The accounting standards update is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. We early adopted the provisions of this accounting standards update and it did not have a significant impact on our condensed consolidated financial statements. | |
In May 2014, the FASB issued an accounting standards update that amends accounting guidance on revenue recognition. Under this guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should disclose sufficient information to enable users of financial statements to understand the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The accounting standards update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the impact of this accounting standards update on our condensed consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the accounting standards update on our ongoing financial reporting. | |
In August 2014, the FASB issued an accounting standards update that amends accounting guidance on going concern. Under this guidance, an entity’s management is responsible for evaluating whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The adoption of this accounting standards update is not expected to have an impact on our condensed consolidated financial statements and related disclosures. |
Prepaids_and_Other_Current_Ass
Prepaids and Other Current Assets, Net | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Prepaids and Other Current Assets, Net | ' | ||||||||
Note 4. Prepaids and Other Current Assets, net | |||||||||
Prepaids and other current assets, net consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 49.5 | $ | 34.2 | |||||
Derivative assets—current | 35.3 | — | |||||||
Refundable and prepaid income taxes | — | 25.3 | |||||||
Inventories | 0.8 | 1.2 | |||||||
Deferred financing costs—current | 9.1 | 9.1 | |||||||
Other current assets | 6.8 | — | |||||||
Prepaids and other current assets | $ | 101.5 | $ | 69.8 | |||||
Intangible_Assets_Net_and_Good
Intangible Assets, Net and Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets, Net and Goodwill | ' | ||||||||||||||||||||||||
Note 5. Intangible Assets, net and Goodwill | |||||||||||||||||||||||||
Intangible assets, net and goodwill consist of the following: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 476.2 | $ | (79.0 | ) | $ | 397.2 | $ | 491.3 | $ | (66.0 | ) | $ | 425.3 | |||||||||||
Favorable leases | 157.1 | (58.1 | ) | 99 | 158.4 | (48.5 | ) | 109.9 | |||||||||||||||||
Subtotal | 633.3 | (137.1 | ) | 496.2 | 649.7 | (114.5 | ) | 535.2 | |||||||||||||||||
Indefinite lived intangible assets—Brand | $ | 2,196.90 | $ | — | $ | 2,196.90 | $ | 2,260.80 | $ | — | $ | 2,260.80 | |||||||||||||
Intangible assets, net | $ | 2,693.10 | $ | 2,796.00 | |||||||||||||||||||||
Goodwill | $ | 612.9 | $ | 630 | |||||||||||||||||||||
We recorded amortization expense on intangible assets of $8.3 million for the three months ended September 30, 2014 and $9.0 million for the same period in the prior year. We recorded amortization expense on intangible assets of $25.9 million for the nine months ended September 30, 2014 and $27.4 million for the same period in the prior year. The change in the Burger King brand (the “Brand”) and goodwill balance for the nine months ended September 30, 2014 was due to foreign currency translation effect. |
Other_assets_net
Other assets, net | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||
Other assets, net | ' | ||||||||
Note 6. Other assets, net | |||||||||
Other assets, net consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Derivative assets—noncurrent | $ | 42.6 | $ | 174.1 | |||||
Equity method investments | 94.8 | 102 | |||||||
Deferred financing costs—noncurrent | 28.7 | 35.5 | |||||||
Other | 49 | 51.9 | |||||||
Other assets, net | $ | 215.1 | $ | 363.5 | |||||
Equity_Method_Investments
Equity Method Investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Equity Method Investments | ' | ||||||||||||||||
Note 7. Equity Method Investments | |||||||||||||||||
The carrying amount of all our equity method investments was $94.8 million as of September 30, 2014 and $102.0 million as of December 31, 2013 and is included as a component of other assets, net in our condensed consolidated balance sheets. The entities in which we have an equity interest own or franchise Burger King restaurants or lease Burger King restaurants to franchisees. Franchise and property revenue we recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues from affiliates: | |||||||||||||||||
Franchise royalties | $ | 21.8 | $ | 18.4 | $ | 61.6 | $ | 49.4 | |||||||||
Property revenues | 7 | 6.9 | 19.7 | 19.7 | |||||||||||||
Franchise fees and other revenue | 2.2 | 1.8 | 5.5 | 4 | |||||||||||||
Total | $ | 31 | $ | 27.1 | $ | 86.8 | $ | 73.1 | |||||||||
At September 30, 2014 and December 31, 2013, we had $15.6 million and $18.1 million, respectively, of accounts receivable from our equity method investments which were recorded in trade and notes receivable, net in our condensed consolidated balance sheets. |
Other_Accrued_Liabilities_and_
Other Accrued Liabilities and Other Liabilities, net | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Accrued Liabilities and Other Liabilities, net | ' | ||||||||
Note 8. Other Accrued Liabilities and Other Liabilities, net | |||||||||
Other accrued liabilities and other liabilities, net consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Derivative liabilities—current | $ | 186 | $ | — | |||||
Income tax payable—current | 28.1 | 5.2 | |||||||
Accrued compensation and benefits | 26.2 | 30.9 | |||||||
Accrued professional fees | 23.8 | 4.6 | |||||||
Gift card liabilities | 14.6 | 22 | |||||||
Deferred income—current | 13.9 | 15.7 | |||||||
Restructuring and other provisions | 14.4 | 15.3 | |||||||
Interest payable | 36.5 | 16.9 | |||||||
Closed property reserve | 12.4 | 11.5 | |||||||
Lease liability—current | 5.8 | 9.8 | |||||||
Other | 49.7 | 45.1 | |||||||
Other accrued liabilities | $ | 411.4 | $ | 177 | |||||
Non-current: | |||||||||
Unfavorable leases | $ | 104 | $ | 116.6 | |||||
Lease liability—noncurrent | 36.8 | 38.6 | |||||||
Accrued pension | 32.5 | 37.4 | |||||||
Income tax payable—noncurrent | 33.1 | 31.6 | |||||||
Derivative liabilities—noncurrent | — | 25.9 | |||||||
Deferred income—noncurrent | 15.8 | 13.2 | |||||||
Casualty insurance—noncurrent | 9.8 | 13.1 | |||||||
Other | 37.4 | 41.5 | |||||||
Other liabilities, net | $ | 269.4 | $ | 317.9 | |||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||||||||||||||
Note 9. 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 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Tranche A Term Loans | 2017 | $ | 952.8 | $ | 991.4 | 3.5 | % | 3.3 | % | 3.4 | % | 3.3 | % | ||||||||||||||||
Tranche B Term Loans (b) | 2019 | 685.2 | 689.4 | 4.9 | % | 4.7 | % | 4.8 | % | 4.6 | % | ||||||||||||||||||
9 7/8 % Senior Notes | 2018 | 794.5 | 794.5 | 10.2 | % | 10.2 | % | 10.2 | % | 10.2 | % | ||||||||||||||||||
11.0% Discount Notes (c) | 2019 | 490.9 | 453.1 | 11.5 | % | 11.5 | % | 11.5 | % | 11.5 | % | ||||||||||||||||||
Deferred Premiums on interest rate caps | 2016 | 16.6 | 22 | 2.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||||
Other | N/A | 0.6 | 0.7 | ||||||||||||||||||||||||||
Total debt | 2,940.60 | 2,951.10 | |||||||||||||||||||||||||||
Less: current maturities of debt | (90.3 | ) | (70.9 | ) | |||||||||||||||||||||||||
Total long-term debt | $ | 2,850.30 | $ | 2,880.20 | |||||||||||||||||||||||||
(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 $5.7 million at September 30, 2014 and $6.7 million at December 31, 2013. | ||||||||||||||||||||||||||||
(c) | Principal face amount herein is presented net of a discount of $88.1 million at September 30, 2014 and $126.0 million at December 31, 2013. | ||||||||||||||||||||||||||||
2012 Revolving Credit Facility | |||||||||||||||||||||||||||||
As of September 30, 2014, 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, 2014, we had no letters of credit issued against the 2012 Revolving Credit Facility and our borrowing capacity was $130.0 million. | |||||||||||||||||||||||||||||
Tim Hortons Transaction | |||||||||||||||||||||||||||||
The repayment of our Tranche A Term Loans and Tranche B Term Loans (the “2012 Term Loans”), the Senior Notes and the Discount Notes will be consummated concurrently with the Tim Hortons Transaction. The 2012 Term Loans, the Senior Notes and the Discount Notes will be replaced by capital from third-party sources to finance the Tim Hortons Transaction. This financing is expected to take several forms, as described in Note 2. | |||||||||||||||||||||||||||||
Interest Expense, net | |||||||||||||||||||||||||||||
Interest expense, net consists of the following: | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Tranche A Term Loans | $ | 6.2 | $ | 6.6 | $ | 18.6 | $ | 19.8 | |||||||||||||||||||||
Tranche B Term Loans | 6.6 | 6.7 | 19.7 | 19.9 | |||||||||||||||||||||||||
Interest Rate Caps | 2.5 | 1.8 | 7 | 4.8 | |||||||||||||||||||||||||
9 7/8 % Senior Notes | 19.6 | 19.7 | 58.8 | 58.9 | |||||||||||||||||||||||||
11.0% Discount Notes | 13 | 11.6 | 37.9 | 34 | |||||||||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 2.6 | 2.6 | 7.8 | 7.7 | |||||||||||||||||||||||||
Capital lease obligations | 1.3 | 1.6 | 4 | 4.9 | |||||||||||||||||||||||||
Other | 0.3 | 0.3 | 0.9 | 1.1 | |||||||||||||||||||||||||
Interest income | (0.8 | ) | (0.7 | ) | (2.8 | ) | (1.8 | ) | |||||||||||||||||||||
Total | $ | 51.3 | $ | 50.2 | $ | 151.9 | $ | 149.3 | |||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Note 10. 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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 8.8 | 2 | (1.3 | ) | 1.9 | ||||||||||||
Costs and taxes related to foreign operations | (9.3 | ) | 4.7 | 8 | 4.5 | ||||||||||||
Foreign tax rate differential | 44.2 | (14.1 | ) | (41.6 | ) | (14.0 | ) | ||||||||||
Change in valuation allowance | (6.6 | ) | (0.4 | ) | 6.5 | (0.9 | ) | ||||||||||
Change in accrual for tax uncertainties | (1.4 | ) | 0.7 | 1.1 | 1.5 | ||||||||||||
Non-deductible transaction costs | (17.0 | ) | — | 6.5 | — | ||||||||||||
Other | (0.3 | ) | 0.5 | 0.8 | — | ||||||||||||
Effective income tax rate | 53.4 | % | 28.4 | % | 15 | % | 28 | % | |||||||||
Our effective tax rate was a benefit of 53.4% for the three months ended September 30, 2014, as a result of the mix of income from multiple tax jurisdictions and losses on derivatives, partially offset by non-deductible transaction and strategic realignment costs. Our effective tax rate was an expense of 28.4% for the three months ended September 30, 2013, as a result of the mix of income during the period from multiple tax jurisdictions. | |||||||||||||||||
Our effective tax rate was an expense of 15.0% for the nine months ended September 30, 2014, as a result of the mix of income from multiple tax jurisdictions and losses on derivatives, partially offset by non-deductible transaction and strategic realignment costs. Our effective tax rate was an expense of 28.0% for the nine months ended September 30, 2013, as a result of the mix of income during the period from multiple tax jurisdictions. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
Note 11. Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
The following table displays the change in the components of accumulated other comprehensive income (loss): | |||||||||||||||||||
Gains (Losses) | Defined Benefit | Foreign | Accumulated | ||||||||||||||||
on Derivatives | Pension | Currency | Other | ||||||||||||||||
Translation | Comprehensive | ||||||||||||||||||
Adjustments | Income (Loss) | ||||||||||||||||||
Balances at December 31, 2013 | $ | 68.8 | $ | 16 | $ | (30.2 | ) | $ | 54.6 | ||||||||||
Foreign currency translation adjustment | — | — | (118.7 | ) | (118.7 | ) | |||||||||||||
Net change in fair value of net investment hedges, net of tax | 22.4 | — | — | 22.4 | |||||||||||||||
Net change in fair value of interest rate derivatives, net of tax | (80.7 | ) | — | — | (80.7 | ) | |||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | (4.1 | ) | — | — | (4.1 | ) | |||||||||||||
Amortization of prior service (credits) costs, net of tax | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||
Amortization of actuarial (gains) losses, net of tax | — | (0.2 | ) | — | (0.2 | ) | |||||||||||||
Balances at September 30, 2014 | $ | 6.4 | $ | 14.5 | $ | (148.9 | ) | $ | (128.0 | ) | |||||||||
The following table displays the reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||||
Details about AOCI Components | Affected Line Item in the | Gain (Loss) reclassified from AOCI | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Statements of Operations | September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Gains (Losses) on cash flow hedges: | |||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (2.4 | ) | $ | (1.7 | ) | $ | (6.6 | ) | $ | (4.3 | ) | ||||||
Interest rate derivative contracts | Other operating expenses (income), net | 13.4 | — | 13.4 | — | ||||||||||||||
Total before tax | 11 | (1.7 | ) | 6.8 | (4.3 | ) | |||||||||||||
Income tax (expense) benefit | (4.3 | ) | 0.7 | (2.7 | ) | 1.7 | |||||||||||||
Net of tax | $ | 6.7 | $ | (1.0 | ) | $ | 4.1 | $ | (2.6 | ) | |||||||||
Defined benefit pension plan items: | |||||||||||||||||||
Amortization of prior service credits (costs) | SG&A (1) | $ | 0.7 | $ | 0.8 | $ | 2.2 | $ | 2 | ||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | 0.1 | (0.3 | ) | 0.2 | (0.9 | ) | ||||||||||||
Total before tax | 0.8 | 0.5 | 2.4 | 1.1 | |||||||||||||||
Income tax (expense) benefit | (0.3 | ) | (0.3 | ) | (0.9 | ) | (0.5 | ) | |||||||||||
Net of tax | $ | 0.5 | $ | 0.2 | $ | 1.5 | $ | 0.6 | |||||||||||
Foreign currency translation adjustment into net income: | |||||||||||||||||||
Sale of foreign entity | Other operating expenses (income), net | — | — | — | 3 | ||||||||||||||
Total reclassifications | Net of tax | $ | 7.2 | $ | (0.8 | ) | $ | 5.6 | $ | 1 | |||||||||
-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, 2014 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||
Note 12. 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, 2014 and December 31, 2013: | |||||||||||||||||||||||||||
Balance Sheet Location | Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||
at September 30, 2014 | at December 31, 2013 | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||
Interest rate caps | Other assets, net | $ | — | $ | — | $ | — | $ | — | $ | 4.2 | $ | 4.2 | ||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | — | — | — | 169.9 | 169.9 | ||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other assets, net | — | 10.9 | 10.9 | — | — | — | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Foreign currency exchange contracts | Prepaids and other current assets, net | — | 12.5 | 12.5 | — | — | — | ||||||||||||||||||||
Forward-starting interest rate swaps | Prepaids and other current assets, net | — | 22.8 | 22.8 | — | — | — | ||||||||||||||||||||
Interest rate caps | Other assets, net | — | 2.3 | 2.3 | — | — | — | ||||||||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | 29.4 | 29.4 | — | — | — | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 6.4 | — | 6.4 | 8.9 | — | 8.9 | ||||||||||||||||||||
Total assets at fair value | $ | 6.4 | $ | 77.9 | $ | 84.3 | $ | 8.9 | $ | 174.1 | $ | 183 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other liabilities, net | $ | — | $ | — | $ | — | $ | — | $ | 25.9 | $ | 25.9 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Foreign currency exchange contracts | Other accrued liabilities | — | 126.1 | 126.1 | — | — | — | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 1.1 | 1.1 | — | 2.8 | 2.8 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 5.3 | 5.3 | — | 6 | 6 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 132.5 | $ | 132.5 | $ | — | $ | 34.7 | $ | 34.7 | |||||||||||||||
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. | |||||||||||||||||||||||||||
Investments 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, 2014, the fair value of our variable rate term debt and bonds was estimated at $3.0 billion, compared to a carrying amount of $2.9 billion, net of original issue discount. At December 31, 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. 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, goodwill, the Brand and other intangible assets. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||
Note 13. 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 12 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, 2014 and December 31, 2013, we had interest rate cap agreements (notional amount of $1.1 billion and $1.2 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 the 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. | |||||||||||||||||
During the three months ended September 30, 2014, in connection with the Tim Hortons Transaction, we discontinued hedge accounting for our Cap Agreements. Repayment of the existing 2012 Term Loans, Senior Notes and Discount Notes is expected to occur concurrently with the consummation of the Tim Hortons Transaction. As such, the forecasted interest payments are not expected to occur, resulting in the discontinuance of hedge accounting. Refer to Note 2 for further information on the Tim Hortons Transaction. Whenever hedge accounting is discontinued and the derivative remains outstanding, we continue to carry the derivative at its fair value on the balance sheet and recognize any subsequent changes in fair value in earnings. When it is probable that a forecasted transaction will not occur, we discontinue hedge accounting and recognize immediately in earnings any gains and losses, attributable to those forecasted transactions that are probable not to occur, that were accumulated in AOCI related to the hedging relationship. Prior to the discontinuance of hedge accounting, the Cap Agreements were designated as cash flow hedges and to the extent they were effective in offsetting the variability of the variable rate interest payments, changes in the derivatives’ fair values were not included in current earnings but were 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 was reclassified from AOCI into earnings as a component of interest expense, net. | |||||||||||||||||
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, 2014, 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, 2014, we had outstanding three forward-starting interest rate swaps with a total notional value of $2,300.0 million to hedge the variability of forecasted interest payments on our forecasted debt issuance attributable to changes in LIBOR. The forward-starting interest rate swaps fix LIBOR on $1,000.0 million of floating-rate debt beginning 2015 and an additional $1,300.0 million of floating-rate debt starting 2016. The swaps have a seven year maturity. During the three months ended September 30, 2014, we discontinued hedge accounting on our forward-starting interest rate swaps as it is probable that the forecasted transactions will not occur since we intend to repay our outstanding 2012 Term Loans concurrently with the Tim Hortons Transaction and do not anticipate issuing new debt in 2015 or 2016. Refer to Note 2 for further information on the Tim Hortons Transaction. Whenever hedge accounting is discontinued and the derivative remains outstanding, we continue to carry the derivative at its fair value on the balance sheet and recognize any subsequent changes in fair value in earnings. When it is probable that a forecasted transaction will not occur, we discontinue hedge accounting and recognize immediately in earnings any gains and losses, attributable to those forecasted transactions that are probable not to occur, that were accumulated in AOCI related to the hedging relationship. Prior to the discontinuance of hedge accounting, we accounted for these swaps as cash flow hedges, and as such, the effective portion of unrealized changes in market value was recorded in AOCI and was to be reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings. | |||||||||||||||||
Foreign Currency Exchange 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 and liabilities recorded in our consolidated balance sheets. The foreign currency forward contracts are not designated as hedging instruments. Gains and losses on foreign currency forward contracts are recognized in other operating expenses (income), 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, 2014, we had no outstanding foreign currency forward contracts to hedge the remeasurement of certain foreign currency-denominated intercompany loans. | |||||||||||||||||
We are exposed to foreign currency risk as the cash consideration payable to Tim Hortons shareholders in connection with the Tim Hortons Transaction will be denominated in Canadian dollars. During the three months ended September 30, 2014, we entered into a foreign currency swap and two foreign currency option contracts to hedge our exposure to the volatility of the Canadian dollar. These derivative instruments do not qualify for hedge accounting and changes in fair values are immediately recognized in other operating expenses (income), net in current earnings. At September 30, 2014, we had outstanding a foreign currency swap to exchange $4,000.0 million U.S. dollars for C$4,347.2 million Canadian dollars with a maturity date of December 31, 2014. We also had two foreign currency option contracts to exchange $5,230.0 million U.S. dollars for C$5,635.3 million Canadian dollars with a maturity date of December 30, 2014. The foreign currency option contracts have a total premium of $59.9 million that is due at settlement and has been recorded as a liability within other accrued liabilities at September 30, 2014. Refer to Note 2 for additional information about the Tim Hortons Transaction and the Company’s hedging activities. | |||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | 0.4 | $ | (2.4 | ) | $ | (1.9 | ) | $ | 0.9 | |||||||
Forward-starting interest rate swaps | $ | (22.9 | ) | $ | (1.3 | ) | $ | (129.9 | ) | $ | 121.2 | ||||||
Derivatives designated as net investment hedges: | |||||||||||||||||
Cross-currency rate swaps | $ | 34.9 | $ | (16.7 | ) | $ | 36.6 | $ | (9.2 | ) | |||||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Interest Expense, net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | (2.4 | ) | $ | (1.7 | ) | $ | (6.6 | ) | $ | (4.3 | ) | |||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Other operating expenses (income), net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives discontinued as hedging instruments: | |||||||||||||||||
Interest rate caps | $ | (26.6 | ) | $ | — | $ | (26.6 | ) | $ | — | |||||||
Forward-starting interest rate swaps | $ | 40 | $ | — | $ | 40 | $ | — | |||||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other operating expenses (income), net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward-starting interest rate swaps | $ | 12.1 | $ | — | $ | 12.1 | $ | — | |||||||||
Foreign currency exchange contracts | $ | (113.6 | ) | $ | — | $ | (113.6 | ) | $ | (0.9 | ) |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-Based Compensation | ' |
Note 14. 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. | |
During the nine months ended September 30, 2014, approximately 3,622,000 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 $3.5 million of share-based compensation expense in selling, general and administrative expenses for the three months ended September 30, 2014 compared to $2.4 million for the three months ended September 30, 2013. We recorded $9.5 million of share-based compensation expense in selling, general and administrative expenses for the nine months ended September 30, 2014 compared to $7.1 million for the nine months ended September 30, 2013. | |
See Note 2 for a description of the treatment of the Company’s equity awards upon completion of the Tim Hortons Transaction. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
Note 15. Earnings (Loss) Per Share | |||||||||||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) 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 (loss) per share are as follows (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | 68.2 | $ | 112 | $ | 166.9 | ||||||||
Denominator: | |||||||||||||||||
Weighted average shares—basic | 352 | 351.2 | 351.9 | 350.9 | |||||||||||||
Effect of dilutive securities | — | 6.9 | 7.3 | 6.8 | |||||||||||||
Weighted average shares—diluted (a) | 352 | 358.1 | 359.2 | 357.7 | |||||||||||||
Basic earnings (loss) per share | $ | (0.07 | ) | $ | 0.19 | $ | 0.32 | $ | 0.48 | ||||||||
Diluted earnings (loss) per share | $ | (0.07 | ) | $ | 0.19 | $ | 0.31 | $ | 0.47 | ||||||||
Anti-dilutive stock options outstanding | 19.5 | 2.9 | 3.6 | 2.9 | |||||||||||||
(a) | Basic and diluted weighted average common shares outstanding are equivalent for the three months ended September 30, 2014 because a net loss was reported during this period causing any potentially dilutive securities to be anti-dilutive. Therefore, 19.5 million shares of potentially dilutive securities were excluded in the calculation of diluted earnings per share since their impact would have been anti-dilutive. |
Franchise_and_Property_Revenue
Franchise and Property Revenues (Franchise Property Revenues [Member]) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Franchise Property Revenues [Member] | ' | ||||||||||||||||||||
Franchise and Property Revenues | ' | ||||||||||||||||||||
Note 16. Franchise and Property Revenues | |||||||||||||||||||||
Franchise and property revenues consist of the following: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Franchise royalties | $ | 182.3 | $ | 171.8 | $ | 516.9 | $ | 486 | |||||||||||||
Property revenues | 54.3 | 54.8 | 162.1 | 159.7 | |||||||||||||||||
Franchise fees and other revenue | 23.4 | 21.5 | 46.3 | 34.6 | |||||||||||||||||
Franchise and property revenues | $ | 260 | $ | 248.1 | $ | 725.3 | $ | 680.3 | |||||||||||||
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 restaurants: | |||||||||||||||||||||
Franchise restaurants at December 31, 2013 | 7,384 | 3,450 | 1,550 | 1,231 | 13,615 | ||||||||||||||||
Franchise—Openings | 55 | 241 | 85 | 142 | 523 | ||||||||||||||||
Franchise—Closures | (123 | ) | (60 | ) | (23 | ) | (24 | ) | (230 | ) | |||||||||||
Franchise restaurants at September 30, 2014 | 7,316 | 3,631 | 1,612 | 1,349 | 13,908 | ||||||||||||||||
Company restaurants at September 30, 2014 | 52 | — | — | — | 52 | ||||||||||||||||
System-wide restaurants at September 30, 2014 | 7,368 | 3,631 | 1,612 | 1,349 | 13,960 | ||||||||||||||||
Company_Restaurant_Expenses
Company Restaurant Expenses | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Company Restaurant Expenses | ' | ||||||||||||||||
Note 17. Company restaurant expenses | |||||||||||||||||
Company restaurant expenses consist of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Food, paper and product costs | $ | 6.2 | $ | 8.5 | $ | 17.3 | $ | 63.8 | |||||||||
Payroll and employee benefits | 5.6 | 7.4 | 16.7 | 61.6 | |||||||||||||
Occupancy and other operating costs | 4.7 | 7 | 13.7 | 52.2 | |||||||||||||
Company restaurant expenses | $ | 16.5 | $ | 22.9 | $ | 47.7 | $ | 177.6 | |||||||||
Other_Operating_Expenses_Incom
Other Operating Expenses (Income), net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other Operating Expenses (Income), net | ' | ||||||||||||||||
Note 18. Other Operating Expenses (Income), net | |||||||||||||||||
Other operating expenses (income), net consists of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ | 8.4 | $ | 0.3 | $ | 16.3 | $ | 0.6 | |||||||||
Litigation settlements and reserves, net | 1.6 | 0.1 | 3.8 | 0.6 | |||||||||||||
Net losses (gains) on derivatives | 147.9 | — | 147.9 | — | |||||||||||||
Foreign exchange net (gains) losses | (18.9 | ) | 0.5 | (21.4 | ) | 6.1 | |||||||||||
Equity in net (income) loss from unconsolidated affiliates | (4.1 | ) | 2.9 | 5.8 | 9.7 | ||||||||||||
Other, net | 6.9 | 2.8 | 9.2 | 4.1 | |||||||||||||
Other operating expenses (income), net | $ | 141.8 | $ | 6.6 | $ | 161.6 | $ | 21.1 | |||||||||
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, 2014, net losses (gains) on disposal of assets, restaurant closures and refranchisings consisted of $6.6 million in net losses associated with refranchisings and $1.8 million of net losses associated with asset disposals and restaurant closures. During the three months ended September 30, 2013, net losses (gains) on disposal of assets, restaurant closures and refranchisings consisted of $0.4 million of net losses associated with refranchisings and $0.1 million of net gains associated with asset disposals and restaurant closures. | |||||||||||||||||
During the nine months ended September 30, 2014, net losses (gains) on disposal of assets, restaurant closures and refranchisings consisted of $8.9 million in net losses associated with refranchisings and $7.4 million of net losses associated with asset disposals and restaurant closures. During the nine months ended September 30, 2013, net losses (gains) on disposal of assets, restaurant closures and refranchisings consisted of $2.3 million of net gains associated with refranchisings, $1.0 million of net losses from sale of subsidiaries and $1.9 million of net losses associated with asset disposals and restaurant closures. | |||||||||||||||||
Net losses (gains) on derivatives | |||||||||||||||||
During the three and nine months ended September 30, 2014, we entered into a foreign currency swap and two foreign currency option contracts to hedge our exposure to the volatility of the Canadian dollar in connection with the Tim Hortons Transaction. We recorded a net loss on derivatives of $113.6 million related to the change in fair value on these instruments and an expense of $59.8 million related to the premium on the foreign currency option contracts. Additionally, as a result of discontinuing hedge accounting on our interest rate caps and forward-starting interest rate swaps, we recognized a gain of $12.1 million related to the change in fair value on our forward-starting interest rate swaps and a net gain of $13.4 million related to the reclassification of amounts from AOCI into earnings related to both instruments. See Note 13 for additional information about accounting for our derivative instruments. | |||||||||||||||||
Equity in net (income) loss from unconsolidated affiliates | |||||||||||||||||
Equity in net (income) loss from unconsolidated affiliates reflects our share of investee net income or loss. During the three months ended September 30, 2014, we recorded a $5.8 million noncash dilution gain included in equity in net (income) loss from unconsolidated affiliates on the issuance of stock by Carrols Restaurant Group, Inc. (“Carrols”), one of our equity method investees. This issuance of common stock reduced our ownership interest in Carrols from approximately 29 percent to approximately 21 percent. The dilution gain reflects an adjustment to the difference between the carrying value of our investment in Carrols and the amount of our underlying equity in the net assets of Carrols. |
Guarantees_Commitments_and_Con
Guarantees, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Guarantees, Commitments and Contingencies | ' |
Note 19. Guarantees, Commitments and Contingencies | |
Litigation | |
On March 1, 2013, a putative class action lawsuit was filed against BKC 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. The plaintiff is seeking monetary damages and injunctive relief. On August 19, 2014, the Company agreed to pay $8.5 million to settle the lawsuit. The parties are currently working to finalize a settlement agreement and then expect to seek court approval of the settlement. | |
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. The Company has an estimated liability of approximately $13.0 million as of September 30, 2014, representing the Company’s best estimate within the range of losses which could be incurred in connection with pending litigation matters. | |
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, 2014, there were $126.5 million of loans outstanding to franchisees that we had guaranteed under six such programs, with additional franchisee borrowing capacity of approximately $197.0 million remaining. Our maximum guarantee liability under these programs is limited to an aggregate of $32.3 million, assuming full utilization of all borrowing capacity. We record a liability in the period the loans are funded. As of September 30, 2014, the liability reflecting the fair value of these guarantee obligations was $5.3 million. No significant payments have been made by us in connection with these guarantees through September 30, 2014. | |
See Note 2 for a description of guarantees that we entered into in connection with the Tim Hortons Transaction. |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Note 20. Segment Reporting | |||||||||||||||||
We operate in the fast food hamburger restaurant category of the quick service restaurant segment of the restaurant industry. Revenues include franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees, property income we derive from properties we lease or sublease to our franchisees and retail sales at Company restaurants. 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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
U.S. and Canada | $ | 166.8 | $ | 172.1 | $ | 475 | $ | 509.6 | |||||||||
EMEA | 77.1 | 71.3 | 205.5 | 265.7 | |||||||||||||
LAC | 18.8 | 18.1 | 55.1 | 65.2 | |||||||||||||
APAC | 16.2 | 13.6 | 45.4 | 40.6 | |||||||||||||
Total revenues | $ | 278.9 | $ | 275.1 | $ | 781 | $ | 881.1 | |||||||||
Only the U.S. represented more than 10% of our total revenues during the three and nine months ended September 30, 2014 and the three months ended September 30, 2013 and only the U.S. and Germany represented more than 10% of our total revenues during the nine months ended September 30, 2013. Revenues in the U.S. totaled $159.6 million for the three months ended September 30, 2014, compared to $164.5 million for the three months ended September 30, 2013. Revenues in the U.S. totaled $454.2 million for the nine months ended September 30, 2014, compared to $455.6 million for the nine months ended September 30, 2013. Revenues in Germany totaled $98.1 million for the nine months ended September 30, 2013. | |||||||||||||||||
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 (net income or loss) 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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment Income: | |||||||||||||||||
U.S. and Canada | $ | 116.2 | $ | 121.6 | $ | 332.1 | $ | 326.6 | |||||||||
EMEA | 61 | 49.2 | 161.3 | 136.5 | |||||||||||||
LAC | 16.7 | 16 | 49 | 46.6 | |||||||||||||
APAC | 14.7 | 11.4 | 39.9 | 33.2 | |||||||||||||
Unallocated Management G&A | (14.2 | ) | (22.2 | ) | (45.4 | ) | (59.4 | ) | |||||||||
Adjusted EBITDA | 194.4 | 176 | 536.9 | 483.5 | |||||||||||||
Share-based compensation and non-cash incentive compensation expense | 4.5 | 3.5 | 12.2 | 9.4 | |||||||||||||
Global portfolio realignment project costs | — | 4.7 | — | 23.6 | |||||||||||||
Transaction and strategic realignment costs | 30.7 | — | 30.7 | — | |||||||||||||
Other operating expenses (income), net | 141.8 | 6.6 | 161.6 | 21.1 | |||||||||||||
EBITDA | 17.4 | 161.2 | 332.4 | 429.4 | |||||||||||||
Depreciation and amortization | 16.5 | 15.7 | 48.7 | 48.3 | |||||||||||||
Income from operations | 0.9 | 145.5 | 283.7 | 381.1 | |||||||||||||
Interest expense, net | 51.3 | 50.2 | 151.9 | 149.3 | |||||||||||||
Income tax (benefit) expense | (26.9 | ) | 27.1 | 19.8 | 64.9 | ||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | 68.2 | $ | 112 | $ | 166.9 | ||||||||
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||
Supplemental Financial Information | ' | |||||||||||||||||||||||||||||
Note 21. 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. and the U.S. subsidiaries of BKC (the “Guarantors”). All subsidiary Guarantors are 100% owned by BKC. 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 of BKC are identified below as the “Non-Guarantors”. | ||||||||||||||||||||||||||||||
The following represents the condensed consolidating financial information for BKC (Issuer), the Guarantors and 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.” 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, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 4.3 | $ | — | $ | 644.1 | $ | — | $ | 365.3 | $ | — | $ | 1,013.70 | ||||||||||||||||
Trade and notes receivable, net | 5.4 | — | 108.8 | — | 53.4 | — | 167.6 | |||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.8 | 77.5 | — | 23.2 | — | 101.5 | |||||||||||||||||||||||
Deferred income taxes, net | 2.3 | — | 75.3 | — | 2.2 | — | 79.8 | |||||||||||||||||||||||
Total current assets | 12 | 0.8 | 905.7 | — | 444.1 | — | 1,362.60 | |||||||||||||||||||||||
Property and equipment, net | — | — | 713.7 | — | 60.6 | — | 774.3 | |||||||||||||||||||||||
Intangible assets, net | — | — | 1,513.70 | — | 1,179.40 | — | 2,693.10 | |||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 253.3 | — | 612.9 | |||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 135.3 | — | 9.8 | — | 145.1 | |||||||||||||||||||||||
Intercompany receivable | 8.5 | 23.5 | 67.7 | — | — | (99.7 | ) | — | ||||||||||||||||||||||
Investment in subsidiaries | 1,357.60 | 1,818.70 | 1,695.10 | 1,818.70 | — | (6,690.1 | ) | — | ||||||||||||||||||||||
Other assets, net | — | 5.2 | 150.2 | — | 59.7 | — | 215.1 | |||||||||||||||||||||||
Total assets | $ | 1,378.10 | $ | 1,848.20 | $ | 5,541.00 | $ | 1,818.70 | $ | 2,006.90 | $ | (6,789.8 | ) | $ | 5,803.10 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 26.8 | $ | — | $ | 7.2 | $ | — | $ | 34 | ||||||||||||||||
Accrued advertising | — | — | 40.5 | — | 19 | — | 59.5 | |||||||||||||||||||||||
Other accrued liabilities | — | — | 356.6 | — | 54.8 | — | 411.4 | |||||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 97.1 | — | 3.1 | — | 100.2 | |||||||||||||||||||||||
Total current liabilities | — | — | 521 | — | 84.1 | — | 605.1 | |||||||||||||||||||||||
Term debt, net of current portion | — | 490.9 | 2,359.40 | — | — | — | 2,850.30 | |||||||||||||||||||||||
Capital leases, net of current portion | — | — | 52.1 | — | 14.4 | — | 66.5 | |||||||||||||||||||||||
Other liabilities, net | 0.8 | — | 240.8 | — | 27.8 | — | 269.4 | |||||||||||||||||||||||
Payables to affiliates | — | — | — | — | 99.7 | (99.7 | ) | — | ||||||||||||||||||||||
Deferred income taxes, net | (3.8 | ) | (0.3 | ) | 549 | — | 85.8 | — | 630.7 | |||||||||||||||||||||
Total liabilities | (3.0 | ) | 490.6 | 3,722.30 | — | 311.8 | (99.7 | ) | 4,422.00 | |||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | |||||||||||||||||||||||
Additional paid-in capital | 1,252.80 | 1,186.70 | 1,536.70 | 1,537.70 | 1,331.00 | (5,592.1 | ) | 1,252.80 | ||||||||||||||||||||||
Retained earnings | 260.1 | 298.9 | 410 | 409 | 509.1 | (1,627.0 | ) | 260.1 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (128.0 | ) | (128.0 | ) | (128.0 | ) | (128.0 | ) | (145.0 | ) | 529 | (128.0 | ) | |||||||||||||||||
Treasury stock, at cost | (7.3 | ) | — | — | — | — | — | (7.3 | ) | |||||||||||||||||||||
Total stockholders’ equity | 1,381.10 | 1,357.60 | 1,818.70 | 1,818.70 | 1,695.10 | (6,690.1 | ) | 1,381.10 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,378.10 | $ | 1,848.20 | $ | 5,541.00 | $ | 1,818.70 | $ | 2,006.90 | $ | (6,789.8 | ) | $ | 5,803.10 | |||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5.7 | $ | — | $ | 553.2 | $ | — | $ | 228 | $ | — | $ | 786.9 | ||||||||||||||||
Trade and notes receivable, net | — | — | 127.6 | — | 52.1 | — | 179.7 | |||||||||||||||||||||||
Prepaids and other current assets, net | — | 17.7 | 45.1 | — | 7 | — | 69.8 | |||||||||||||||||||||||
Deferred income taxes, net | 2.4 | — | 33.7 | — | 1.9 | — | 38 | |||||||||||||||||||||||
Total current assets | 8.1 | 17.7 | 759.6 | — | 289 | — | 1,074.40 | |||||||||||||||||||||||
Property and equipment, net | — | — | 733.6 | — | 67.9 | — | 801.5 | |||||||||||||||||||||||
Intangible assets, net | — | — | 1,530.70 | — | 1,265.30 | — | 2,796.00 | |||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 270.4 | — | 630 | |||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 151.8 | — | 11.3 | — | 163.1 | |||||||||||||||||||||||
Intercompany receivable | 11.5 | — | 97 | — | — | (108.5 | ) | — | ||||||||||||||||||||||
Investment in subsidiaries | 1,492.70 | 1,926.60 | 1,675.70 | 1,926.60 | — | (7,021.6 | ) | — | ||||||||||||||||||||||
Other assets, net | — | 5.8 | 289.4 | — | 68.3 | — | 363.5 | |||||||||||||||||||||||
Total assets | $ | 1,512.30 | $ | 1,950.10 | $ | 5,597.40 | $ | 1,926.60 | $ | 1,972.20 | $ | (7,130.1 | ) | $ | 5,828.50 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 21.1 | $ | — | $ | 10 | $ | — | $ | 31.1 | ||||||||||||||||
Accrued advertising | — | — | 33.8 | — | 22.7 | — | 56.5 | |||||||||||||||||||||||
Other accrued liabilities | (0.4 | ) | (31.6 | ) | 164.2 | — | 44.8 | — | 177 | |||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 78.2 | — | 3.2 | — | 81.4 | |||||||||||||||||||||||
Total current liabilities | (0.4 | ) | (31.6 | ) | 297.3 | — | 80.7 | — | 346 | |||||||||||||||||||||
Term debt, net of current portion | — | 453.1 | 2,427.10 | — | — | — | 2,880.20 | |||||||||||||||||||||||
Capital leases, net of current portion | — | — | 57.7 | — | 17.7 | — | 75.4 | |||||||||||||||||||||||
Other liabilities, net | 0.5 | 0.1 | 283.8 | — | 33.5 | — | 317.9 | |||||||||||||||||||||||
Payables to affiliates | — | 36.2 | — | — | 72.3 | (108.5 | ) | — | ||||||||||||||||||||||
Deferred income taxes, net | (4.0 | ) | (0.4 | ) | 604.9 | — | 92.3 | — | 692.8 | |||||||||||||||||||||
Total liabilities | (3.9 | ) | 457.4 | 3,670.80 | — | 296.5 | (108.5 | ) | 4,312.30 | |||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | |||||||||||||||||||||||
Additional paid-in capital | 1,239.90 | 1,173.80 | 1,523.80 | 1,524.80 | 1,328.90 | (5,551.3 | ) | 1,239.90 | ||||||||||||||||||||||
Retained earnings | 225.5 | 264.3 | 348.2 | 347.2 | 373.1 | (1,332.8 | ) | 225.5 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 54.6 | 54.6 | 54.6 | 54.6 | (26.3 | ) | (137.5 | ) | 54.6 | |||||||||||||||||||||
Treasury stock, at cost | (7.3 | ) | — | — | — | — | — | (7.3 | ) | |||||||||||||||||||||
Total stockholders’ equity | 1,516.20 | 1,492.70 | 1,926.60 | 1,926.60 | 1,675.70 | (7,021.6 | ) | 1,516.20 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,512.30 | $ | 1,950.10 | $ | 5,597.40 | $ | 1,926.60 | $ | 1,972.20 | $ | (7,130.1 | ) | $ | 5,828.50 | |||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 162.6 | $ | — | $ | 97.4 | $ | — | $ | 260 | ||||||||||||||||
Company restaurant revenues | — | — | 18.9 | — | — | — | 18.9 | |||||||||||||||||||||||
Total revenues | — | — | 181.5 | — | 97.4 | — | 278.9 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 28.9 | — | 12.5 | — | 41.4 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 16.5 | — | — | — | 16.5 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 64.6 | — | 13.7 | — | 78.3 | |||||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | 1.3 | — | — | ||||||||||||||||||||||
Other operating expenses (income), net | — | — | 156.4 | — | (14.6 | ) | — | 141.8 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 265.1 | — | 12.9 | — | 278 | |||||||||||||||||||||||
Income (loss) from operations | — | — | (83.6 | ) | — | 84.5 | — | 0.9 | ||||||||||||||||||||||
Interest expense, net | — | 13.1 | 37.8 | — | 0.4 | — | 51.3 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (13.1 | ) | (121.4 | ) | — | 84.1 | — | (50.4 | ) | ||||||||||||||||||||
Income tax expense (benefit) | — | (4.6 | ) | (49.6 | ) | — | 27.3 | — | (26.9 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | — | (8.5 | ) | (71.8 | ) | — | 56.8 | — | (23.5 | ) | ||||||||||||||||||||
Equity in earnings of subsidiaries | (23.5 | ) | (15.0 | ) | 56.8 | (15.0 | ) | — | (3.3 | ) | — | |||||||||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | (23.5 | ) | $ | (15.0 | ) | $ | (15.0 | ) | $ | 56.8 | $ | (3.3 | ) | $ | (23.5 | ) | ||||||||||
Total comprehensive income (loss) | $ | (132.1 | ) | $ | (132.1 | ) | $ | (123.6 | ) | $ | (123.6 | ) | $ | (52.2 | ) | $ | 431.5 | $ | (132.1 | ) | ||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 462.3 | $ | — | $ | 263 | $ | — | $ | 725.3 | ||||||||||||||||
Company restaurant revenues | — | — | 55.7 | — | — | — | 55.7 | |||||||||||||||||||||||
Total revenues | — | — | 518 | — | 263 | — | 781 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 80.8 | — | 33.7 | — | 114.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 47.7 | — | — | — | 47.7 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 134.2 | — | 39.3 | — | 173.5 | |||||||||||||||||||||||
Intercompany expenses | — | — | (4.4 | ) | — | 4.4 | — | — | ||||||||||||||||||||||
Other operating expenses, net | — | — | 168.1 | — | (6.5 | ) | — | 161.6 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 426.4 | — | 70.9 | — | 497.3 | |||||||||||||||||||||||
Income (loss) from operations | — | — | 91.6 | — | 192.1 | — | 283.7 | |||||||||||||||||||||||
Interest expense, net | — | 38.4 | 112.5 | — | 1 | — | 151.9 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (38.4 | ) | (20.9 | ) | — | 191.1 | — | 131.8 | |||||||||||||||||||||
Income tax expense (benefit) | — | (11.2 | ) | (24.1 | ) | — | 55.1 | — | 19.8 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (27.2 | ) | 3.2 | — | 136 | — | 112 | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 112 | 139.2 | 136 | 139.2 | — | (526.4 | ) | — | ||||||||||||||||||||||
Net income (loss) | $ | 112 | $ | 112 | $ | 139.2 | $ | 139.2 | $ | 136 | $ | (526.4 | ) | $ | 112 | |||||||||||||||
Total comprehensive income (loss) | $ | (70.6 | ) | $ | (70.6 | ) | $ | (43.4 | ) | $ | (43.4 | ) | $ | 17.3 | $ | 140.1 | $ | (70.6 | ) | |||||||||||
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: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 167.1 | $ | — | $ | 81 | $ | — | $ | 248.1 | ||||||||||||||||
Company restaurant revenues | — | — | 18.7 | — | 8.3 | — | 27 | |||||||||||||||||||||||
Intercompany revenues | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total revenues | — | — | 185.8 | — | 89.3 | — | 275.1 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 29 | — | 11.5 | — | 40.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 15.6 | — | 7.3 | — | 22.9 | |||||||||||||||||||||||
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 (loss) from operations | — | — | 97.4 | — | 48.1 | — | 145.5 | |||||||||||||||||||||||
Interest expense, net | — | 11.8 | 37.6 | — | 0.8 | — | 50.2 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (11.8 | ) | 59.8 | — | 47.3 | — | 95.3 | ||||||||||||||||||||||
Income tax expense (benefit) | — | (3.4 | ) | 16.7 | — | 13.8 | — | 27.1 | ||||||||||||||||||||||
Income (loss) from continuing operations | — | (8.4 | ) | 43.1 | — | 33.5 | — | 68.2 | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 68.2 | 76.6 | 33.5 | 76.6 | — | (254.9 | ) | — | ||||||||||||||||||||||
Net income (loss) | $ | 68.2 | $ | 68.2 | $ | 76.6 | $ | 76.6 | $ | 33.5 | $ | (254.9 | ) | $ | 68.2 | |||||||||||||||
Total comprehensive income (loss) | $ | 100.9 | $ | 100.9 | $ | 109.3 | $ | 109.3 | $ | 78.1 | $ | (397.6 | ) | $ | 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: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 455.6 | $ | — | $ | 224.7 | $ | — | $ | 680.3 | ||||||||||||||||
Company restaurant revenues | — | — | 57.2 | — | 143.6 | — | 200.8 | |||||||||||||||||||||||
Intercompany revenues | — | — | 1.6 | — | (1.6 | ) | — | — | ||||||||||||||||||||||
Total revenues | — | — | 514.4 | — | 366.7 | — | 881.1 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 81.2 | — | 32.3 | — | 113.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 49.9 | — | 127.7 | — | 177.6 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 131 | — | 56.8 | — | 187.8 | |||||||||||||||||||||||
Intercompany expenses | — | — | (0.9 | ) | — | 0.9 | — | — | ||||||||||||||||||||||
Other operating expenses (income), net | — | — | 14.8 | — | 6.3 | — | 21.1 | |||||||||||||||||||||||
Total operating costs and expenses | — | — | 276 | — | 224 | — | 500 | |||||||||||||||||||||||
Income (loss) from operations | — | — | 238.4 | — | 142.7 | — | 381.1 | |||||||||||||||||||||||
Interest expense, net | — | 34.5 | 111.8 | — | 3 | — | 149.3 | |||||||||||||||||||||||
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 Cash Flows | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantor | ||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||
Net income | $ | 112 | $ | 112 | $ | 139.2 | $ | 139.2 | $ | 136 | $ | (526.4 | ) | $ | 112 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (112.0 | ) | (139.2 | ) | (136.0 | ) | (139.2 | ) | — | 526.4 | — | |||||||||||||||||||
Depreciation and amortization | — | — | 36.6 | — | 12.1 | — | 48.7 | |||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 38.4 | 7.3 | — | — | — | 45.7 | |||||||||||||||||||||||
Equity in net (earnings) loss from unconsolidated affiliates | — | — | (1.3 | ) | — | 7.1 | — | 5.8 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | 1.3 | — | (23.3 | ) | — | (22.0 | ) | |||||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (2.3 | ) | — | (0.1 | ) | — | (2.4 | ) | ||||||||||||||||||||
Net losses (gains) on derivatives | — | — | 154.5 | — | — | — | 154.5 | |||||||||||||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | — | — | 13.9 | — | (2.1 | ) | — | 11.8 | ||||||||||||||||||||||
Bad debt (recoveries) expense, net | — | — | 0.4 | — | 0.5 | — | 0.9 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 7.4 | — | 2.1 | — | 9.5 | |||||||||||||||||||||||
Deferred income tax (benefit) expense | 0.2 | 0.1 | (57.1 | ) | — | (2.3 | ) | — | (59.1 | ) | ||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | ||||||||||||||||||||||||||||||
Trade and notes receivables | (5.4 | ) | — | 21 | — | (5.6 | ) | — | 10 | |||||||||||||||||||||
Prepaids and other current assets | — | — | 11.4 | — | (0.6 | ) | — | 10.8 | ||||||||||||||||||||||
Accounts and drafts payable | — | — | 4.1 | — | (2.3 | ) | — | 1.8 | ||||||||||||||||||||||
Accrued advertising | — | — | (10.0 | ) | — | (12.2 | ) | — | (22.2 | ) | ||||||||||||||||||||
Other accrued liabilities | — | — | 76.8 | — | 11.2 | — | 88 | |||||||||||||||||||||||
Other long-term assets and liabilities | — | — | (20.0 | ) | — | 1.8 | — | (18.2 | ) | |||||||||||||||||||||
Net cash provided by (used for) operating activities | (5.2 | ) | 11.3 | 247.2 | — | 122.3 | — | 375.6 | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (10.7 | ) | — | — | — | (10.7 | ) | |||||||||||||||||||||
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 2.3 | — | (8.9 | ) | — | (6.6 | ) | |||||||||||||||||||||
Net payments for acquired and disposed franchisee operations, net of cash acquired | — | — | (3.9 | ) | — | — | — | (3.9 | ) | |||||||||||||||||||||
Return of investment on direct financing leases | — | — | 10.7 | — | 0.9 | — | 11.6 | |||||||||||||||||||||||
Other investing activities | — | — | (0.2 | ) | — | — | — | (0.2 | ) | |||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | (1.8 | ) | — | (8.0 | ) | — | (9.8 | ) | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (55.0 | ) | — | (2.3 | ) | — | (57.3 | ) | ||||||||||||||||||||
Proceeds from stock option exercises | 0.1 | — | — | — | — | — | 0.1 | |||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||
Dividends paid on common stock | (77.4 | ) | — | — | — | — | — | (77.4 | ) | |||||||||||||||||||||
Intercompany financing | 81.1 | (11.3 | ) | (99.7 | ) | — | 29.9 | — | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 3.8 | (11.3 | ) | (154.5 | ) | — | 27.6 | — | (134.4 | ) | ||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | (4.6 | ) | — | (4.6 | ) | |||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (1.4 | ) | — | 90.9 | — | 137.3 | — | 226.8 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 5.7 | — | 553.2 | — | 228 | — | 786.9 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 4.3 | $ | — | $ | 644.1 | $ | — | $ | 365.3 | $ | — | $ | 1,013.70 | ||||||||||||||||
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 (used for) 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 | ) | ||||||||||||||||||||
Net losses (gains) on derivatives | — | — | 4.3 | — | — | — | 4.3 | |||||||||||||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | — | — | 5.4 | — | (7.9 | ) | — | (2.5 | ) | |||||||||||||||||||||
Bad debt (recoveries) expense, net | — | — | 2.2 | — | — | — | 2.2 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 5.4 | — | 1.7 | — | 7.1 | |||||||||||||||||||||||
Deferred income tax (benefit) expense | — | 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 (used for) 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 | ) | ||||||||||||||||||||
Dividends paid on common stock | (59.7 | ) | — | — | — | — | — | (59.7 | ) | |||||||||||||||||||||
Proceeds from stock option exercises | 2.7 | — | — | — | — | — | 2.7 | |||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 4.2 | — | — | — | 4.2 | |||||||||||||||||||||||
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 | ||||||||||||||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Note 22. Subsequent Event | |
Tim Hortons Transaction | |
Refer to Note 2 for a description of subsequent events that have occurred in connection with the Tim Hortons Transaction. | |
Dividend | |
On November 3, 2014, our Board of Directors approved a cash dividend to shareholders of $0.08 per share that will be paid on November 25, 2014 to shareholders of record at the close of business on November 14, 2014. 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, 2014 | |||||||||
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, | ||||||||
2014 | 2013 | ||||||||
Prepaid expenses | $ | 49.5 | $ | 34.2 | |||||
Derivative assets—current | 35.3 | — | |||||||
Refundable and prepaid income taxes | — | 25.3 | |||||||
Inventories | 0.8 | 1.2 | |||||||
Deferred financing costs—current | 9.1 | 9.1 | |||||||
Other current assets | 6.8 | — | |||||||
Prepaids and other current assets | $ | 101.5 | $ | 69.8 | |||||
Intangible_Assets_Net_and_Good1
Intangible Assets, Net and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 476.2 | $ | (79.0 | ) | $ | 397.2 | $ | 491.3 | $ | (66.0 | ) | $ | 425.3 | |||||||||||
Favorable leases | 157.1 | (58.1 | ) | 99 | 158.4 | (48.5 | ) | 109.9 | |||||||||||||||||
Subtotal | 633.3 | (137.1 | ) | 496.2 | 649.7 | (114.5 | ) | 535.2 | |||||||||||||||||
Indefinite lived intangible assets—Brand | $ | 2,196.90 | $ | — | $ | 2,196.90 | $ | 2,260.80 | $ | — | $ | 2,260.80 | |||||||||||||
Intangible assets, net | $ | 2,693.10 | $ | 2,796.00 | |||||||||||||||||||||
Goodwill | $ | 612.9 | $ | 630 |
Other_assets_net_Tables
Other assets, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||
Other Assets, Net | ' | ||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Derivative assets—noncurrent | $ | 42.6 | $ | 174.1 | |||||
Equity method investments | 94.8 | 102 | |||||||
Deferred financing costs—noncurrent | 28.7 | 35.5 | |||||||
Other | 49 | 51.9 | |||||||
Other assets, net | $ | 215.1 | $ | 363.5 |
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Summary of Franchise and Property Revenue | ' | ||||||||||||||||
restaurants or lease Burger King restaurants to franchisees. Franchise and property revenue we recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues from affiliates: | |||||||||||||||||
Franchise royalties | $ | 21.8 | $ | 18.4 | $ | 61.6 | $ | 49.4 | |||||||||
Property revenues | 7 | 6.9 | 19.7 | 19.7 | |||||||||||||
Franchise fees and other revenue | 2.2 | 1.8 | 5.5 | 4 | |||||||||||||
Total | $ | 31 | $ | 27.1 | $ | 86.8 | $ | 73.1 | |||||||||
Other_Accrued_Liabilities_and_1
Other Accrued Liabilities and Other Liabilities, net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Schedule of Other Accrued Liabilities and Other Liabilities | ' | ||||||||
Other accrued liabilities and other liabilities, net consist of the following: | |||||||||
As of | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Derivative liabilities—current | $ | 186 | $ | — | |||||
Income tax payable—current | 28.1 | 5.2 | |||||||
Accrued compensation and benefits | 26.2 | 30.9 | |||||||
Accrued professional fees | 23.8 | 4.6 | |||||||
Gift card liabilities | 14.6 | 22 | |||||||
Deferred income—current | 13.9 | 15.7 | |||||||
Restructuring and other provisions | 14.4 | 15.3 | |||||||
Interest payable | 36.5 | 16.9 | |||||||
Closed property reserve | 12.4 | 11.5 | |||||||
Lease liability—current | 5.8 | 9.8 | |||||||
Other | 49.7 | 45.1 | |||||||
Other accrued liabilities | $ | 411.4 | $ | 177 | |||||
Non-current: | |||||||||
Unfavorable leases | $ | 104 | $ | 116.6 | |||||
Lease liability—noncurrent | 36.8 | 38.6 | |||||||
Accrued pension | 32.5 | 37.4 | |||||||
Income tax payable—noncurrent | 33.1 | 31.6 | |||||||
Derivative liabilities—noncurrent | — | 25.9 | |||||||
Deferred income—noncurrent | 15.8 | 13.2 | |||||||
Casualty insurance—noncurrent | 9.8 | 13.1 | |||||||
Other | 37.4 | 41.5 | |||||||
Other liabilities, net | $ | 269.4 | $ | 317.9 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Tranche A Term Loans | 2017 | $ | 952.8 | $ | 991.4 | 3.5 | % | 3.3 | % | 3.4 | % | 3.3 | % | ||||||||||||||||
Tranche B Term Loans (b) | 2019 | 685.2 | 689.4 | 4.9 | % | 4.7 | % | 4.8 | % | 4.6 | % | ||||||||||||||||||
9 7/8 % Senior Notes | 2018 | 794.5 | 794.5 | 10.2 | % | 10.2 | % | 10.2 | % | 10.2 | % | ||||||||||||||||||
11.0% Discount Notes (c) | 2019 | 490.9 | 453.1 | 11.5 | % | 11.5 | % | 11.5 | % | 11.5 | % | ||||||||||||||||||
Deferred Premiums on interest rate caps | 2016 | 16.6 | 22 | 2.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||||
Other | N/A | 0.6 | 0.7 | ||||||||||||||||||||||||||
Total debt | 2,940.60 | 2,951.10 | |||||||||||||||||||||||||||
Less: current maturities of debt | (90.3 | ) | (70.9 | ) | |||||||||||||||||||||||||
Total long-term debt | $ | 2,850.30 | $ | 2,880.20 | |||||||||||||||||||||||||
(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 $5.7 million at September 30, 2014 and $6.7 million at December 31, 2013. | ||||||||||||||||||||||||||||
(c) | Principal face amount herein is presented net of a discount of $88.1 million at September 30, 2014 and $126.0 million at December 31, 2013. | ||||||||||||||||||||||||||||
Schedule of Interest Expense, Net | ' | ||||||||||||||||||||||||||||
Interest expense, net consists of the following: | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Tranche A Term Loans | $ | 6.2 | $ | 6.6 | $ | 18.6 | $ | 19.8 | |||||||||||||||||||||
Tranche B Term Loans | 6.6 | 6.7 | 19.7 | 19.9 | |||||||||||||||||||||||||
Interest Rate Caps | 2.5 | 1.8 | 7 | 4.8 | |||||||||||||||||||||||||
9 7/8 % Senior Notes | 19.6 | 19.7 | 58.8 | 58.9 | |||||||||||||||||||||||||
11.0% Discount Notes | 13 | 11.6 | 37.9 | 34 | |||||||||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 2.6 | 2.6 | 7.8 | 7.7 | |||||||||||||||||||||||||
Capital lease obligations | 1.3 | 1.6 | 4 | 4.9 | |||||||||||||||||||||||||
Other | 0.3 | 0.3 | 0.9 | 1.1 | |||||||||||||||||||||||||
Interest income | (0.8 | ) | (0.7 | ) | (2.8 | ) | (1.8 | ) | |||||||||||||||||||||
Total | $ | 51.3 | $ | 50.2 | $ | 151.9 | $ | 149.3 | |||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. Federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 8.8 | 2 | (1.3 | ) | 1.9 | ||||||||||||
Costs and taxes related to foreign operations | (9.3 | ) | 4.7 | 8 | 4.5 | ||||||||||||
Foreign tax rate differential | 44.2 | (14.1 | ) | (41.6 | ) | (14.0 | ) | ||||||||||
Change in valuation allowance | (6.6 | ) | (0.4 | ) | 6.5 | (0.9 | ) | ||||||||||
Change in accrual for tax uncertainties | (1.4 | ) | 0.7 | 1.1 | 1.5 | ||||||||||||
Non-deductible transaction costs | (17.0 | ) | — | 6.5 | — | ||||||||||||
Other | (0.3 | ) | 0.5 | 0.8 | — | ||||||||||||
Effective income tax rate | 53.4 | % | 28.4 | % | 15 | % | 28 | % | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Summary of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
The following table displays the change in the components of accumulated other comprehensive income (loss): | |||||||||||||||||||
Gains (Losses) | Defined Benefit | Foreign | Accumulated | ||||||||||||||||
on Derivatives | Pension | Currency | Other | ||||||||||||||||
Translation | Comprehensive | ||||||||||||||||||
Adjustments | Income (Loss) | ||||||||||||||||||
Balances at December 31, 2013 | $ | 68.8 | $ | 16 | $ | (30.2 | ) | $ | 54.6 | ||||||||||
Foreign currency translation adjustment | — | — | (118.7 | ) | (118.7 | ) | |||||||||||||
Net change in fair value of net investment hedges, net of tax | 22.4 | — | — | 22.4 | |||||||||||||||
Net change in fair value of interest rate derivatives, net of tax | (80.7 | ) | — | — | (80.7 | ) | |||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | (4.1 | ) | — | — | (4.1 | ) | |||||||||||||
Amortization of prior service (credits) costs, net of tax | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||
Amortization of actuarial (gains) losses, net of tax | — | (0.2 | ) | — | (0.2 | ) | |||||||||||||
Balances at September 30, 2014 | $ | 6.4 | $ | 14.5 | $ | (148.9 | ) | $ | (128.0 | ) | |||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
The following table displays the reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||||
Details about AOCI Components | Affected Line Item in the | Gain (Loss) reclassified from AOCI | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Statements of Operations | September 30, | September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Gains (Losses) on cash flow hedges: | |||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (2.4 | ) | $ | (1.7 | ) | $ | (6.6 | ) | $ | (4.3 | ) | ||||||
Interest rate derivative contracts | Other operating expenses (income), net | 13.4 | — | 13.4 | — | ||||||||||||||
Total before tax | 11 | (1.7 | ) | 6.8 | (4.3 | ) | |||||||||||||
Income tax (expense) benefit | (4.3 | ) | 0.7 | (2.7 | ) | 1.7 | |||||||||||||
Net of tax | $ | 6.7 | $ | (1.0 | ) | $ | 4.1 | $ | (2.6 | ) | |||||||||
Defined benefit pension plan items: | |||||||||||||||||||
Amortization of prior service credits (costs) | SG&A (1) | $ | 0.7 | $ | 0.8 | $ | 2.2 | $ | 2 | ||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | 0.1 | (0.3 | ) | 0.2 | (0.9 | ) | ||||||||||||
Total before tax | 0.8 | 0.5 | 2.4 | 1.1 | |||||||||||||||
Income tax (expense) benefit | (0.3 | ) | (0.3 | ) | (0.9 | ) | (0.5 | ) | |||||||||||
Net of tax | $ | 0.5 | $ | 0.2 | $ | 1.5 | $ | 0.6 | |||||||||||
Foreign currency translation adjustment into net income: | |||||||||||||||||||
Sale of foreign entity | Other operating expenses (income), net | — | — | — | 3 | ||||||||||||||
Total reclassifications | Net of tax | $ | 7.2 | $ | (0.8 | ) | $ | 5.6 | $ | 1 | |||||||||
-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, 2014 | |||||||||||||||||||||||||||
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, 2014 and December 31, 2013: | |||||||||||||||||||||||||||
Balance Sheet Location | Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||
at September 30, 2014 | at December 31, 2013 | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||
Interest rate caps | Other assets, net | $ | — | $ | — | $ | — | $ | — | $ | 4.2 | $ | 4.2 | ||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | — | — | — | 169.9 | 169.9 | ||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other assets, net | — | 10.9 | 10.9 | — | — | — | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Foreign currency exchange contracts | Prepaids and other current assets, net | — | 12.5 | 12.5 | — | — | — | ||||||||||||||||||||
Forward-starting interest rate swaps | Prepaids and other current assets, net | — | 22.8 | 22.8 | — | — | — | ||||||||||||||||||||
Interest rate caps | Other assets, net | — | 2.3 | 2.3 | — | — | — | ||||||||||||||||||||
Forward-starting interest rate swaps | Other assets, net | — | 29.4 | 29.4 | — | — | — | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 6.4 | — | 6.4 | 8.9 | — | 8.9 | ||||||||||||||||||||
Total assets at fair value | $ | 6.4 | $ | 77.9 | $ | 84.3 | $ | 8.9 | $ | 174.1 | $ | 183 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||||||||||
Cross-currency rate swaps | Other liabilities, net | $ | — | $ | — | $ | — | $ | — | $ | 25.9 | $ | 25.9 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Foreign currency exchange contracts | Other accrued liabilities | — | 126.1 | 126.1 | — | — | — | ||||||||||||||||||||
Other: | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 1.1 | 1.1 | — | 2.8 | 2.8 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 5.3 | 5.3 | — | 6 | 6 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 132.5 | $ | 132.5 | $ | — | $ | 34.7 | $ | 34.7 | |||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | 0.4 | $ | (2.4 | ) | $ | (1.9 | ) | $ | 0.9 | |||||||
Forward-starting interest rate swaps | $ | (22.9 | ) | $ | (1.3 | ) | $ | (129.9 | ) | $ | 121.2 | ||||||
Derivatives designated as net investment hedges: | |||||||||||||||||
Cross-currency rate swaps | $ | 34.9 | $ | (16.7 | ) | $ | 36.6 | $ | (9.2 | ) | |||||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Interest Expense, net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate caps | $ | (2.4 | ) | $ | (1.7 | ) | $ | (6.6 | ) | $ | (4.3 | ) | |||||
Gain (Loss) Reclassified from | |||||||||||||||||
AOCI into Other operating expenses (income), net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives discontinued as hedging instruments: | |||||||||||||||||
Interest rate caps | $ | (26.6 | ) | $ | — | $ | (26.6 | ) | $ | — | |||||||
Forward-starting interest rate swaps | $ | 40 | $ | — | $ | 40 | $ | — | |||||||||
Gain (Loss) Recognized in | |||||||||||||||||
Other operating expenses (income), net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward-starting interest rate swaps | $ | 12.1 | $ | — | $ | 12.1 | $ | — | |||||||||
Foreign currency exchange contracts | $ | (113.6 | ) | $ | — | $ | (113.6 | ) | $ | (0.9 | ) |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
Basic and diluted earnings (loss) per share are as follows (in millions, except per share information): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | 68.2 | $ | 112 | $ | 166.9 | ||||||||
Denominator: | |||||||||||||||||
Weighted average shares - basic | 352 | 351.2 | 351.9 | 350.9 | |||||||||||||
Effect of dilutive securities | — | 6.9 | 7.3 | 6.8 | |||||||||||||
Weighted average shares - diluted (a) | 352 | 358.1 | 359.2 | 357.7 | |||||||||||||
Basic earnings (loss) per share | $ | (0.07 | ) | $ | 0.19 | $ | 0.32 | $ | 0.48 | ||||||||
Diluted earnings (loss) per share | $ | (0.07 | ) | $ | 0.19 | $ | 0.31 | $ | 0.47 | ||||||||
Anti-dilutive stock options outstanding | 19.5 | 2.9 | 3.6 | 2.9 | |||||||||||||
(a) | Basic and diluted weighted average common shares outstanding are equivalent for the three months ended September 30, 2014 because a net loss was reported during this period causing any potentially dilutive securities to be anti-dilutive. Therefore, 19.5 million shares of potentially dilutive securities were excluded in the calculation of diluted earnings per share since their impact would have been anti-dilutive. |
Franchise_and_Property_Revenue1
Franchise and Property Revenues (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Franchisors [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, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Franchise royalties | $ | 182.3 | $ | 171.8 | $ | 516.9 | $ | 486 | |||||||||||||
Property revenues | 54.3 | 54.8 | 162.1 | 159.7 | |||||||||||||||||
Franchise fees and other revenue | 23.4 | 21.5 | 46.3 | 34.6 | |||||||||||||||||
Franchise and property revenues | $ | 260 | $ | 248.1 | $ | 725.3 | $ | 680.3 | |||||||||||||
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 restaurants: | |||||||||||||||||||||
Franchise restaurants at December 31, 2013 | 7,384 | 3,450 | 1,550 | 1,231 | 13,615 | ||||||||||||||||
Franchise—Openings | 55 | 241 | 85 | 142 | 523 | ||||||||||||||||
Franchise—Closures | (123 | ) | (60 | ) | (23 | ) | (24 | ) | (230 | ) | |||||||||||
Franchise restaurants at September 30, 2014 | 7,316 | 3,631 | 1,612 | 1,349 | 13,908 | ||||||||||||||||
Company restaurants at September 30, 2014 | 52 | — | — | — | 52 | ||||||||||||||||
System-wide restaurants at September 30, 2014 | 7,368 | 3,631 | 1,612 | 1,349 | 13,960 |
Company_Restaurant_Expenses_Ta
Company Restaurant Expenses (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Summary of Restaurant Expenses | ' | ||||||||||||||||
Company restaurant expenses consist of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Food, paper and product costs | $ | 6.2 | $ | 8.5 | $ | 17.3 | $ | 63.8 | |||||||||
Payroll and employee benefits | 5.6 | 7.4 | 16.7 | 61.6 | |||||||||||||
Occupancy and other operating costs | 4.7 | 7 | 13.7 | 52.2 | |||||||||||||
Company restaurant expenses | $ | 16.5 | $ | 22.9 | $ | 47.7 | $ | 177.6 | |||||||||
Other_Operating_Expenses_Incom1
Other Operating Expenses (Income), net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ | 8.4 | $ | 0.3 | $ | 16.3 | $ | 0.6 | |||||||||
Litigation settlements and reserves, net | 1.6 | 0.1 | 3.8 | 0.6 | |||||||||||||
Net losses (gains) on derivatives | 147.9 | — | 147.9 | — | |||||||||||||
Foreign exchange net (gains) losses | (18.9 | ) | 0.5 | (21.4 | ) | 6.1 | |||||||||||
Equity in net (income) loss from unconsolidated affiliates | (4.1 | ) | 2.9 | 5.8 | 9.7 | ||||||||||||
Other, net | 6.9 | 2.8 | 9.2 | 4.1 | |||||||||||||
Other operating expenses (income), net | $ | 141.8 | $ | 6.6 | $ | 161.6 | $ | 21.1 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues: | |||||||||||||||||
U.S. and Canada | $ | 166.8 | $ | 172.1 | $ | 475 | $ | 509.6 | |||||||||
EMEA | 77.1 | 71.3 | 205.5 | 265.7 | |||||||||||||
LAC | 18.8 | 18.1 | 55.1 | 65.2 | |||||||||||||
APAC | 16.2 | 13.6 | 45.4 | 40.6 | |||||||||||||
Total revenues | $ | 278.9 | $ | 275.1 | $ | 781 | $ | 881.1 | |||||||||
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, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment Income: | |||||||||||||||||
U.S. and Canada | $ | 116.2 | $ | 121.6 | $ | 332.1 | $ | 326.6 | |||||||||
EMEA | 61 | 49.2 | 161.3 | 136.5 | |||||||||||||
LAC | 16.7 | 16 | 49 | 46.6 | |||||||||||||
APAC | 14.7 | 11.4 | 39.9 | 33.2 | |||||||||||||
Unallocated Management G&A | (14.2 | ) | (22.2 | ) | (45.4 | ) | (59.4 | ) | |||||||||
Adjusted EBITDA | 194.4 | 176 | 536.9 | 483.5 | |||||||||||||
Share-based compensation and non-cash incentive compensation expense | 4.5 | 3.5 | 12.2 | 9.4 | |||||||||||||
Global portfolio realignment project costs | — | 4.7 | — | 23.6 | |||||||||||||
Transaction and strategic realignment costs | 30.7 | — | 30.7 | — | |||||||||||||
Other operating expenses (income), net | 141.8 | 6.6 | 161.6 | 21.1 | |||||||||||||
EBITDA | 17.4 | 161.2 | 332.4 | 429.4 | |||||||||||||
Depreciation and amortization | 16.5 | 15.7 | 48.7 | 48.3 | |||||||||||||
Income from operations | 0.9 | 145.5 | 283.7 | 381.1 | |||||||||||||
Interest expense, net | 51.3 | 50.2 | 151.9 | 149.3 | |||||||||||||
Income tax (benefit) expense | (26.9 | ) | 27.1 | 19.8 | 64.9 | ||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | 68.2 | $ | 112 | $ | 166.9 | ||||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets (Unaudited) | ' | |||||||||||||||||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 4.3 | $ | — | $ | 644.1 | $ | — | $ | 365.3 | $ | — | $ | 1,013.70 | ||||||||||||||||
Trade and notes receivable, net | 5.4 | — | 108.8 | — | 53.4 | — | 167.6 | |||||||||||||||||||||||
Prepaids and other current assets, net | — | 0.8 | 77.5 | — | 23.2 | — | 101.5 | |||||||||||||||||||||||
Deferred income taxes, net | 2.3 | — | 75.3 | — | 2.2 | — | 79.8 | |||||||||||||||||||||||
Total current assets | 12 | 0.8 | 905.7 | — | 444.1 | — | 1,362.60 | |||||||||||||||||||||||
Property and equipment, net | — | — | 713.7 | — | 60.6 | — | 774.3 | |||||||||||||||||||||||
Intangible assets, net | — | — | 1,513.70 | — | 1,179.40 | — | 2,693.10 | |||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 253.3 | — | 612.9 | |||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 135.3 | — | 9.8 | — | 145.1 | |||||||||||||||||||||||
Intercompany receivable | 8.5 | 23.5 | 67.7 | — | — | (99.7 | ) | — | ||||||||||||||||||||||
Investment in subsidiaries | 1,357.60 | 1,818.70 | 1,695.10 | 1,818.70 | — | (6,690.1 | ) | — | ||||||||||||||||||||||
Other assets, net | — | 5.2 | 150.2 | — | 59.7 | — | 215.1 | |||||||||||||||||||||||
Total assets | $ | 1,378.10 | $ | 1,848.20 | $ | 5,541.00 | $ | 1,818.70 | $ | 2,006.90 | $ | (6,789.8 | ) | $ | 5,803.10 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 26.8 | $ | — | $ | 7.2 | $ | — | $ | 34 | ||||||||||||||||
Accrued advertising | — | — | 40.5 | — | 19 | — | 59.5 | |||||||||||||||||||||||
Other accrued liabilities | — | — | 356.6 | — | 54.8 | — | 411.4 | |||||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 97.1 | — | 3.1 | — | 100.2 | |||||||||||||||||||||||
Total current liabilities | — | — | 521 | — | 84.1 | — | 605.1 | |||||||||||||||||||||||
Term debt, net of current portion | — | 490.9 | 2,359.40 | — | — | — | 2,850.30 | |||||||||||||||||||||||
Capital leases, net of current portion | — | — | 52.1 | — | 14.4 | — | 66.5 | |||||||||||||||||||||||
Other liabilities, net | 0.8 | — | 240.8 | — | 27.8 | — | 269.4 | |||||||||||||||||||||||
Payables to affiliates | — | — | — | — | 99.7 | (99.7 | ) | — | ||||||||||||||||||||||
Deferred income taxes, net | (3.8 | ) | (0.3 | ) | 549 | — | 85.8 | — | 630.7 | |||||||||||||||||||||
Total liabilities | (3.0 | ) | 490.6 | 3,722.30 | — | 311.8 | (99.7 | ) | 4,422.00 | |||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | |||||||||||||||||||||||
Additional paid-in capital | 1,252.80 | 1,186.70 | 1,536.70 | 1,537.70 | 1,331.00 | (5,592.1 | ) | 1,252.80 | ||||||||||||||||||||||
Retained earnings | 260.1 | 298.9 | 410 | 409 | 509.1 | (1,627.0 | ) | 260.1 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (128.0 | ) | (128.0 | ) | (128.0 | ) | (128.0 | ) | (145.0 | ) | 529 | (128.0 | ) | |||||||||||||||||
Treasury stock, at cost | (7.3 | ) | — | — | — | — | — | (7.3 | ) | |||||||||||||||||||||
Total stockholders’ equity | 1,381.10 | 1,357.60 | 1,818.70 | 1,818.70 | 1,695.10 | (6,690.1 | ) | 1,381.10 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,378.10 | $ | 1,848.20 | $ | 5,541.00 | $ | 1,818.70 | $ | 2,006.90 | $ | (6,789.8 | ) | $ | 5,803.10 | |||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5.7 | $ | — | $ | 553.2 | $ | — | $ | 228 | $ | — | $ | 786.9 | ||||||||||||||||
Trade and notes receivable, net | — | — | 127.6 | — | 52.1 | — | 179.7 | |||||||||||||||||||||||
Prepaids and other current assets, net | — | 17.7 | 45.1 | — | 7 | — | 69.8 | |||||||||||||||||||||||
Deferred income taxes, net | 2.4 | — | 33.7 | — | 1.9 | — | 38 | |||||||||||||||||||||||
Total current assets | 8.1 | 17.7 | 759.6 | — | 289 | — | 1,074.40 | |||||||||||||||||||||||
Property and equipment, net | — | — | 733.6 | — | 67.9 | — | 801.5 | |||||||||||||||||||||||
Intangible assets, net | — | — | 1,530.70 | — | 1,265.30 | — | 2,796.00 | |||||||||||||||||||||||
Goodwill | — | — | 359.6 | — | 270.4 | — | 630 | |||||||||||||||||||||||
Net investment in property leased to franchisees | — | — | 151.8 | — | 11.3 | — | 163.1 | |||||||||||||||||||||||
Intercompany receivable | 11.5 | — | 97 | — | — | (108.5 | ) | — | ||||||||||||||||||||||
Investment in subsidiaries | 1,492.70 | 1,926.60 | 1,675.70 | 1,926.60 | — | (7,021.6 | ) | — | ||||||||||||||||||||||
Other assets, net | — | 5.8 | 289.4 | — | 68.3 | — | 363.5 | |||||||||||||||||||||||
Total assets | $ | 1,512.30 | $ | 1,950.10 | $ | 5,597.40 | $ | 1,926.60 | $ | 1,972.20 | $ | (7,130.1 | ) | $ | 5,828.50 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||
Accounts and drafts payable | $ | — | $ | — | $ | 21.1 | $ | — | $ | 10 | $ | — | $ | 31.1 | ||||||||||||||||
Accrued advertising | — | — | 33.8 | — | 22.7 | — | 56.5 | |||||||||||||||||||||||
Other accrued liabilities | (0.4 | ) | (31.6 | ) | 164.2 | — | 44.8 | — | 177 | |||||||||||||||||||||
Current portion of long term debt and capital leases | — | — | 78.2 | — | 3.2 | — | 81.4 | |||||||||||||||||||||||
Total current liabilities | (0.4 | ) | (31.6 | ) | 297.3 | — | 80.7 | — | 346 | |||||||||||||||||||||
Term debt, net of current portion | — | 453.1 | 2,427.10 | — | — | — | 2,880.20 | |||||||||||||||||||||||
Capital leases, net of current portion | — | — | 57.7 | — | 17.7 | — | 75.4 | |||||||||||||||||||||||
Other liabilities, net | 0.5 | 0.1 | 283.8 | — | 33.5 | — | 317.9 | |||||||||||||||||||||||
Payables to affiliates | — | 36.2 | — | — | 72.3 | (108.5 | ) | — | ||||||||||||||||||||||
Deferred income taxes, net | (4.0 | ) | (0.4 | ) | 604.9 | — | 92.3 | — | 692.8 | |||||||||||||||||||||
Total liabilities | (3.9 | ) | 457.4 | 3,670.80 | — | 296.5 | (108.5 | ) | 4,312.30 | |||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||||||||||||
Common stock | 3.5 | — | — | — | — | — | 3.5 | |||||||||||||||||||||||
Additional paid-in capital | 1,239.90 | 1,173.80 | 1,523.80 | 1,524.80 | 1,328.90 | (5,551.3 | ) | 1,239.90 | ||||||||||||||||||||||
Retained earnings | 225.5 | 264.3 | 348.2 | 347.2 | 373.1 | (1,332.8 | ) | 225.5 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 54.6 | 54.6 | 54.6 | 54.6 | (26.3 | ) | (137.5 | ) | 54.6 | |||||||||||||||||||||
Treasury stock, at cost | (7.3 | ) | — | — | — | — | — | (7.3 | ) | |||||||||||||||||||||
Total stockholders’ equity | 1,516.20 | 1,492.70 | 1,926.60 | 1,926.60 | 1,675.70 | (7,021.6 | ) | 1,516.20 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,512.30 | $ | 1,950.10 | $ | 5,597.40 | $ | 1,926.60 | $ | 1,972.20 | $ | (7,130.1 | ) | $ | 5,828.50 | |||||||||||||||
Condensed Consolidating Statements of Operations (Unaudited) | ' | |||||||||||||||||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 162.6 | $ | — | $ | 97.4 | $ | — | $ | 260 | ||||||||||||||||
Company restaurant revenues | — | — | 18.9 | — | — | — | 18.9 | |||||||||||||||||||||||
Total revenues | — | — | 181.5 | — | 97.4 | — | 278.9 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 28.9 | — | 12.5 | — | 41.4 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 16.5 | — | — | — | 16.5 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 64.6 | — | 13.7 | — | 78.3 | |||||||||||||||||||||||
Intercompany expenses | — | — | (1.3 | ) | — | 1.3 | — | — | ||||||||||||||||||||||
Other operating expenses (income), net | — | — | 156.4 | — | (14.6 | ) | — | 141.8 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 265.1 | — | 12.9 | — | 278 | |||||||||||||||||||||||
Income (loss) from operations | — | — | (83.6 | ) | — | 84.5 | — | 0.9 | ||||||||||||||||||||||
Interest expense, net | — | 13.1 | 37.8 | — | 0.4 | — | 51.3 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (13.1 | ) | (121.4 | ) | — | 84.1 | — | (50.4 | ) | ||||||||||||||||||||
Income tax expense (benefit) | — | (4.6 | ) | (49.6 | ) | — | 27.3 | — | (26.9 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | — | (8.5 | ) | (71.8 | ) | — | 56.8 | — | (23.5 | ) | ||||||||||||||||||||
Equity in earnings of subsidiaries | (23.5 | ) | (15.0 | ) | 56.8 | (15.0 | ) | — | (3.3 | ) | — | |||||||||||||||||||
Net income (loss) | $ | (23.5 | ) | $ | (23.5 | ) | $ | (15.0 | ) | $ | (15.0 | ) | $ | 56.8 | $ | (3.3 | ) | $ | (23.5 | ) | ||||||||||
Total comprehensive income (loss) | $ | (132.1 | ) | $ | (132.1 | ) | $ | (123.6 | ) | $ | (123.6 | ) | $ | (52.2 | ) | $ | 431.5 | $ | (132.1 | ) | ||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 462.3 | $ | — | $ | 263 | $ | — | $ | 725.3 | ||||||||||||||||
Company restaurant revenues | — | — | 55.7 | — | — | — | 55.7 | |||||||||||||||||||||||
Total revenues | — | — | 518 | — | 263 | — | 781 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 80.8 | — | 33.7 | — | 114.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 47.7 | — | — | — | 47.7 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 134.2 | — | 39.3 | — | 173.5 | |||||||||||||||||||||||
Intercompany expenses | — | — | (4.4 | ) | — | 4.4 | — | — | ||||||||||||||||||||||
Other operating expenses, net | — | — | 168.1 | — | (6.5 | ) | — | 161.6 | ||||||||||||||||||||||
Total operating costs and expenses | — | — | 426.4 | — | 70.9 | — | 497.3 | |||||||||||||||||||||||
Income (loss) from operations | — | — | 91.6 | — | 192.1 | — | 283.7 | |||||||||||||||||||||||
Interest expense, net | — | 38.4 | 112.5 | — | 1 | — | 151.9 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (38.4 | ) | (20.9 | ) | — | 191.1 | — | 131.8 | |||||||||||||||||||||
Income tax expense (benefit) | — | (11.2 | ) | (24.1 | ) | — | 55.1 | — | 19.8 | |||||||||||||||||||||
Income (loss) from continuing operations | — | (27.2 | ) | 3.2 | — | 136 | — | 112 | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 112 | 139.2 | 136 | 139.2 | — | (526.4 | ) | — | ||||||||||||||||||||||
Net income (loss) | $ | 112 | $ | 112 | $ | 139.2 | $ | 139.2 | $ | 136 | $ | (526.4 | ) | $ | 112 | |||||||||||||||
Total comprehensive income (loss) | $ | (70.6 | ) | $ | (70.6 | ) | $ | (43.4 | ) | $ | (43.4 | ) | $ | 17.3 | $ | 140.1 | $ | (70.6 | ) | |||||||||||
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: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 167.1 | $ | — | $ | 81 | $ | — | $ | 248.1 | ||||||||||||||||
Company restaurant revenues | — | — | 18.7 | — | 8.3 | — | 27 | |||||||||||||||||||||||
Intercompany revenues | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total revenues | — | — | 185.8 | — | 89.3 | — | 275.1 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 29 | — | 11.5 | — | 40.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 15.6 | — | 7.3 | — | 22.9 | |||||||||||||||||||||||
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 (loss) from operations | — | — | 97.4 | — | 48.1 | — | 145.5 | |||||||||||||||||||||||
Interest expense, net | — | 11.8 | 37.6 | — | 0.8 | — | 50.2 | |||||||||||||||||||||||
Income (loss) before income taxes | — | (11.8 | ) | 59.8 | — | 47.3 | — | 95.3 | ||||||||||||||||||||||
Income tax expense (benefit) | — | (3.4 | ) | 16.7 | — | 13.8 | — | 27.1 | ||||||||||||||||||||||
Income (loss) from continuing operations | — | (8.4 | ) | 43.1 | — | 33.5 | — | 68.2 | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 68.2 | 76.6 | 33.5 | 76.6 | — | (254.9 | ) | — | ||||||||||||||||||||||
Net income (loss) | $ | 68.2 | $ | 68.2 | $ | 76.6 | $ | 76.6 | $ | 33.5 | $ | (254.9 | ) | $ | 68.2 | |||||||||||||||
Total comprehensive income (loss) | $ | 100.9 | $ | 100.9 | $ | 109.3 | $ | 109.3 | $ | 78.1 | $ | (397.6 | ) | $ | 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: | ||||||||||||||||||||||||||||||
Franchise and property revenues | $ | — | $ | — | $ | 455.6 | $ | — | $ | 224.7 | $ | — | $ | 680.3 | ||||||||||||||||
Company restaurant revenues | — | — | 57.2 | — | 143.6 | — | 200.8 | |||||||||||||||||||||||
Intercompany revenues | — | — | 1.6 | — | (1.6 | ) | — | — | ||||||||||||||||||||||
Total revenues | — | — | 514.4 | — | 366.7 | — | 881.1 | |||||||||||||||||||||||
Franchise and property expenses | — | — | 81.2 | — | 32.3 | — | 113.5 | |||||||||||||||||||||||
Company restaurant expenses | — | — | 49.9 | — | 127.7 | — | 177.6 | |||||||||||||||||||||||
Selling, general and administrative expenses | — | — | 131 | — | 56.8 | — | 187.8 | |||||||||||||||||||||||
Intercompany expenses | — | — | (0.9 | ) | — | 0.9 | — | — | ||||||||||||||||||||||
Other operating expenses (income), net | — | — | 14.8 | — | 6.3 | — | 21.1 | |||||||||||||||||||||||
Total operating costs and expenses | — | — | 276 | — | 224 | — | 500 | |||||||||||||||||||||||
Income (loss) from operations | — | — | 238.4 | — | 142.7 | — | 381.1 | |||||||||||||||||||||||
Interest expense, net | — | 34.5 | 111.8 | — | 3 | — | 149.3 | |||||||||||||||||||||||
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 | |||||||||||||||
Condensed Consolidating Statements of Cash Flows (Unaudited) | ' | |||||||||||||||||||||||||||||
BURGER KING WORLDWIDE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
BKW | BKCH | Issuer | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||||||||||
Guarantor | ||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||
Net income | $ | 112 | $ | 112 | $ | 139.2 | $ | 139.2 | $ | 136 | $ | (526.4 | ) | $ | 112 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||||||||||||||||||
Equity in earnings of subsidiary | (112.0 | ) | (139.2 | ) | (136.0 | ) | (139.2 | ) | — | 526.4 | — | |||||||||||||||||||
Depreciation and amortization | — | — | 36.6 | — | 12.1 | — | 48.7 | |||||||||||||||||||||||
Amortization of deferred financing cost and debt issuance discount | — | 38.4 | 7.3 | — | — | — | 45.7 | |||||||||||||||||||||||
Equity in net (earnings) loss from unconsolidated affiliates | — | — | (1.3 | ) | — | 7.1 | — | 5.8 | ||||||||||||||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | — | — | 1.3 | — | (23.3 | ) | — | (22.0 | ) | |||||||||||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | (2.3 | ) | — | (0.1 | ) | — | (2.4 | ) | ||||||||||||||||||||
Net losses (gains) on derivatives | — | — | 154.5 | — | — | — | 154.5 | |||||||||||||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | — | — | 13.9 | — | (2.1 | ) | — | 11.8 | ||||||||||||||||||||||
Bad debt (recoveries) expense, net | — | — | 0.4 | — | 0.5 | — | 0.9 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 7.4 | — | 2.1 | — | 9.5 | |||||||||||||||||||||||
Deferred income tax (benefit) expense | 0.2 | 0.1 | (57.1 | ) | — | (2.3 | ) | — | (59.1 | ) | ||||||||||||||||||||
Changes in current assets and liabilities, excluding dispositions: | ||||||||||||||||||||||||||||||
Trade and notes receivables | (5.4 | ) | — | 21 | — | (5.6 | ) | — | 10 | |||||||||||||||||||||
Prepaids and other current assets | — | — | 11.4 | — | (0.6 | ) | — | 10.8 | ||||||||||||||||||||||
Accounts and drafts payable | — | — | 4.1 | — | (2.3 | ) | — | 1.8 | ||||||||||||||||||||||
Accrued advertising | — | — | (10.0 | ) | — | (12.2 | ) | — | (22.2 | ) | ||||||||||||||||||||
Other accrued liabilities | — | — | 76.8 | — | 11.2 | — | 88 | |||||||||||||||||||||||
Other long-term assets and liabilities | — | — | (20.0 | ) | — | 1.8 | — | (18.2 | ) | |||||||||||||||||||||
Net cash provided by (used for) operating activities | (5.2 | ) | 11.3 | 247.2 | — | 122.3 | — | 375.6 | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||
Payments for property and equipment | — | — | (10.7 | ) | — | — | — | (10.7 | ) | |||||||||||||||||||||
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | — | — | 2.3 | — | (8.9 | ) | — | (6.6 | ) | |||||||||||||||||||||
Net payments for acquired and disposed franchisee operations, net of cash acquired | — | — | (3.9 | ) | — | — | — | (3.9 | ) | |||||||||||||||||||||
Return of investment on direct financing leases | — | — | 10.7 | — | 0.9 | — | 11.6 | |||||||||||||||||||||||
Other investing activities | — | — | (0.2 | ) | — | — | — | (0.2 | ) | |||||||||||||||||||||
Net cash provided by (used for) investing activities | — | — | (1.8 | ) | — | (8.0 | ) | — | (9.8 | ) | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||
Repayments of term debt and capital leases | — | — | (55.0 | ) | — | (2.3 | ) | — | (57.3 | ) | ||||||||||||||||||||
Proceeds from stock option exercises | 0.1 | — | — | — | — | — | 0.1 | |||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||
Dividends paid on common stock | (77.4 | ) | — | — | — | — | — | (77.4 | ) | |||||||||||||||||||||
Intercompany financing | 81.1 | (11.3 | ) | (99.7 | ) | — | 29.9 | — | — | |||||||||||||||||||||
Net cash provided by (used for) financing activities | 3.8 | (11.3 | ) | (154.5 | ) | — | 27.6 | — | (134.4 | ) | ||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | — | — | (4.6 | ) | — | (4.6 | ) | |||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (1.4 | ) | — | 90.9 | — | 137.3 | — | 226.8 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 5.7 | — | 553.2 | — | 228 | — | 786.9 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 4.3 | $ | — | $ | 644.1 | $ | — | $ | 365.3 | $ | — | $ | 1,013.70 | ||||||||||||||||
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 (used for) 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 | ) | ||||||||||||||||||||
Net losses (gains) on derivatives | — | — | 4.3 | — | — | — | 4.3 | |||||||||||||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | — | — | 5.4 | — | (7.9 | ) | — | (2.5 | ) | |||||||||||||||||||||
Bad debt (recoveries) expense, net | — | — | 2.2 | — | — | — | 2.2 | |||||||||||||||||||||||
Share-based compensation expense | — | — | 5.4 | — | 1.7 | — | 7.1 | |||||||||||||||||||||||
Deferred income tax (benefit) expense | — | 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 (used for) 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 | ) | ||||||||||||||||||||
Dividends paid on common stock | (59.7 | ) | — | — | — | — | — | (59.7 | ) | |||||||||||||||||||||
Proceeds from stock option exercises | 2.7 | — | — | — | — | — | 2.7 | |||||||||||||||||||||||
Excess tax benefits from share-based compensation | — | — | 4.2 | — | — | — | 4.2 | |||||||||||||||||||||||
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 |
Basis_of_Presentation_and_Cons1
Basis of Presentation and Consolidation - Additional Information (Detail) (Maximum [Member]) | Sep. 30, 2014 |
Maximum [Member] | ' |
Basis Of Presentation [Line Items] | ' |
Investments in affiliates percentage | 50.00% |
Tim_Hortons_Transaction_Additi
Tim Hortons Transaction - Additional Information (Detail) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 08, 2014 | Oct. 31, 2014 | Oct. 27, 2014 | Oct. 27, 2014 | Oct. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Tim Hortons [Member] | Tim Hortons [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Cash Distribution [Member] | Share Distribution [Member] | Holdings Common Stock [Member] | Exchangeable Partnership [Member] | Partnerships Exchangeable Units [Member] | |
USD ($) | CAD | Tim Hortons [Member] | Tim Hortons [Member] | Tim Hortons [Member] | JP Morgan Chase, N.A. [Member] | JP Morgan Chase, N.A. [Member] | Tim Hortons [Member] | Tim Hortons [Member] | Tim Hortons [Member] | Tim Hortons [Member] | Tim Hortons [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | |||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Each common shareholder of Tim Hortons will be entitled to receive in cash in exchange for each Tim Hortons common share held by such shareholder | ' | 88.5 | ' | ' | ' | ' | ' | 65.5 | ' | ' | ' | ' |
Each common shareholder of Tim Hortons will be entitled to receive newly issued Holdings common shares in exchange for each Tim Hortons common share held by such shareholder | 3.0879 | ' | ' | ' | ' | ' | ' | ' | 0.8025 | ' | ' | ' |
Common stock conversion, shares\units into which each stock is converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.99 | 0.01 | 1 |
Subject to proration as set forth in the arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'If no exchangeable election (as described below) has been made with respect to such common stock, 0.99 newly issued Holdings common shares and 0.01 newly issued exchangeable units of the Partnership ("Partnership exchangeable units") | ' | ' |
Proceeds from term loans under the senior secured credit facilities | $6,750 | ' | ' | ' | ' | $6,750 | ' | ' | ' | ' | ' | ' |
Additional deposits | ' | ' | ' | ' | 26.2 | ' | 27 | ' | ' | ' | ' | ' |
Aggregate notional amount | ' | ' | ' | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination equity consideration, value | 8,628.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Refinance certain indebtedness of the Company and Tim Hortons at the closing of the transactions | 4,086.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred equity contributed by Berkshire Hathaway Inc. | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility that will not be drawn to fund the transactions | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Senior Notes | 2,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rates | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity dates | '2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits into escrow for prepaid interest | ' | ' | $10.90 | $11.30 | ' | ' | ' | ' | ' | ' | ' | ' |
Until the release of the escrowed funds upon the closing of the Tim Hortons Transaction | ' | ' | ' | 'Per month | ' | ' | ' | ' | ' | ' | ' | ' |
Mandatory redemption price percentage | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaids_and_Other_Current_Ass2
Prepaids and Other Current Assets, net - Schedule of Prepaids and Other Current Assets, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Prepaid expenses | $49.50 | $34.20 |
Derivative assets-current | 35.3 | ' |
Refundable and prepaid income taxes | ' | 25.3 |
Inventories | 0.8 | 1.2 |
Deferred financing costs-current | 9.1 | 9.1 |
Other current assets | 6.8 | ' |
Prepaids and other current assets | $101.50 | $69.80 |
Recovered_Sheet1
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Identifiable assets, Gross | $633.30 | $496.20 |
Goodwill | 612.9 | 630 |
Identifiable assets, accumulated amortization | -137.1 | -114.5 |
Identifiable assets, Net | 496.2 | 535.2 |
Intangible assets, net | 2,693.10 | 2,796 |
Franchise Agreements [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Identifiable assets, Gross | 476.2 | 397.2 |
Identifiable assets, accumulated amortization | -79 | -66 |
Identifiable assets, Net | 397.2 | 425.3 |
Favorable Leases [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Identifiable assets, Gross | 157.1 | 99 |
Identifiable assets, accumulated amortization | -58.1 | -48.5 |
Identifiable assets, Net | 99 | 109.9 |
Brand [Member] | ' | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Indefinite lived intangible assets-Brand | $2,196.90 | $2,260.80 |
Recovered_Sheet2
Intangible Assets, net and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense on intangible assets | $8.30 | $9 | $25.90 | $27.40 |
Other_Assets_net_Other_Assets_
Other Assets, net - Other Assets, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Derivative assets-noncurrent | $42.60 | $174.10 |
Equity method investments | 94.8 | 102 |
Deferred financing costs-noncurrent | 28.7 | 35.5 |
Other | 49 | 51.9 |
Other assets, net | $215.10 | $363.50 |
Equity_Method_Investments_Addi
Equity Method Investments - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity method investments | $94.80 | $102 |
Equity Method Investee [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Accounts receivable from equity method investments | $15.60 | $18.10 |
Equity_Method_Investments_Summ
Equity Method Investments - Summary of Franchise and Property Revenue (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues from affiliates: | ' | ' | ' | ' |
Franchise royalties | $182.30 | $171.80 | $516.90 | $486 |
Property revenues | 54.3 | 54.8 | 162.1 | 159.7 |
Franchise fees and other revenue | 23.4 | 21.5 | 46.3 | 34.6 |
Total | 260 | 248.1 | 725.3 | 680.3 |
Affiliates [Member] | ' | ' | ' | ' |
Revenues from affiliates: | ' | ' | ' | ' |
Franchise royalties | 21.8 | 18.4 | 61.6 | 49.4 |
Property revenues | 7 | 6.9 | 19.7 | 19.7 |
Franchise fees and other revenue | 2.2 | 1.8 | 5.5 | 4 |
Total | $31 | $27.10 | $86.80 | $73.10 |
Other_Accrued_Liabilities_and_2
Other Accrued Liabilities and Other Liabilities, Net - Schedule of Other Accrued Liabilities and Other Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current: | ' | ' |
Derivative liabilities-current | $186 | ' |
Income tax payable-current | 28.1 | 5.2 |
Accrued compensation and benefits | 26.2 | 30.9 |
Accrued professional fees | 23.8 | 4.6 |
Gift card liabilities | 14.6 | 22 |
Deferred income-current | 13.9 | 15.7 |
Restructuring and other provisions | 14.4 | 15.3 |
Interest payable | 36.5 | 16.9 |
Closed property reserve | 12.4 | 11.5 |
Lease liability-current | 5.8 | 9.8 |
Other | 49.7 | 45.1 |
Other accrued liabilities | 411.4 | 177 |
Non-current: | ' | ' |
Unfavorable leases | 104 | 116.6 |
Lease liability-noncurrent | 36.8 | 38.6 |
Accrued pension | 32.5 | 37.4 |
Income tax payable-noncurrent | 33.1 | 31.6 |
Derivative liabilities-noncurrent | ' | 25.9 |
Deferred income-noncurrent | 15.8 | 13.2 |
Casualty insurance-noncurrent | 9.8 | 13.1 |
Other | 37.4 | 41.5 |
Other liabilities, net | $269.40 | $317.90 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Total debt | $2,940.60 | ' | $2,940.60 | ' | $2,951.10 |
Less: current maturities of debt | -90.3 | ' | -90.3 | ' | -70.9 |
Total long-term debt | 2,850.30 | ' | 2,850.30 | ' | 2,880.20 |
Tranche B Term Loans [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maturity dates | ' | ' | '2019 | ' | ' |
Total debt | 685.2 | ' | 685.2 | ' | 689.4 |
Interest rates | 4.90% | 4.70% | 4.80% | 4.60% | ' |
9 7/8% Senior Notes [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maturity dates | ' | ' | '2018 | ' | ' |
Total debt | 794.5 | ' | 794.5 | ' | 794.5 |
Interest rates | 10.20% | 10.20% | 10.20% | 10.20% | ' |
Interest rates | 9.88% | ' | 9.88% | ' | ' |
11.0% Discount Notes [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maturity dates | ' | ' | '2019 | ' | ' |
Total debt | 490.9 | ' | 490.9 | ' | 453.1 |
Interest rates | 11.50% | 11.50% | 11.50% | 11.50% | ' |
Interest rates | 11.00% | ' | 11.00% | ' | ' |
Tranche A Term Loans [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maturity dates | ' | ' | '2017 | ' | ' |
Total debt | 952.8 | ' | 952.8 | ' | 991.4 |
Interest rates | 3.50% | 3.30% | 3.40% | 3.30% | ' |
Deferred Premiums on Interest Rate Caps - USD [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maturity dates | ' | ' | '2016 | ' | ' |
Total debt | 16.6 | ' | 16.6 | ' | 22 |
Interest rates | 2.50% | 2.50% | 2.50% | 2.50% | ' |
Other [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Total debt | $0.60 | ' | $0.60 | ' | $0.70 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Tranche B Term Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Discount | $5.70 | $6.70 |
9 7/8% Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rates | 9.88% | ' |
11.0% Discount Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Discount | $88.10 | $126 |
Interest rates | 11.00% | ' |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Amount outstanding at the credit facility | $0 |
Letter of credit sublimit as part of revolving credit facility | 75 |
Amount withdrawn from revolving credit facility | 0 |
Remaining borrowing capacity | $130 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amortization of deferred financing costs and debt issuance discount | $2.60 | $2.60 | $7.80 | $7.70 |
Capital lease obligations | 1.3 | 1.6 | 4 | 4.9 |
Other | 0.3 | 0.3 | 0.9 | 1.1 |
Interest income | -0.8 | -0.7 | -2.8 | -1.8 |
Total | 51.3 | 50.2 | 151.9 | 149.3 |
Tranche A Term Loans [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense | 6.2 | 6.6 | 18.6 | 19.8 |
Tranche B Term Loans [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense | 6.6 | 6.7 | 19.7 | 19.9 |
Interest Rate Caps [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense | 2.5 | 1.8 | 7 | 4.8 |
9 7/8% Senior Notes [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense | 19.6 | 19.7 | 58.8 | 58.9 |
11.0% Discount Notes [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest expense | $13 | $11.60 | $37.90 | $34 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
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 | 8.80% | 2.00% | -1.30% | 1.90% |
Costs and taxes related to foreign operations | -9.30% | 4.70% | 8.00% | 4.50% |
Foreign tax rate differential | 44.20% | -14.10% | -41.60% | -14.00% |
Change in valuation allowance | -6.60% | -0.40% | 6.50% | -0.90% |
Change in accrual for tax uncertainties | -1.40% | 0.70% | 1.10% | 1.50% |
Non-deductible transaction costs | -17.00% | ' | 6.50% | ' |
Other | -0.30% | 0.50% | 0.80% | ' |
Effective income tax rate | 53.40% | 28.40% | 15.00% | 28.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 53.40% | 28.40% | 15.00% | 28.00% |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ' | ' | $54.60 | ' |
Foreign currency translation adjustment | -109 | 44.6 | -118.7 | 31.6 |
Net change in fair value of net investment hedges, net of tax | 21.4 | -10.1 | 22.4 | -5.6 |
Net change in fair value of interest rate derivatives, net of tax | -13.8 | -2.2 | -80.7 | 74.2 |
Amounts reclassified to earnings of cash flow hedges, net of tax | -6.7 | 1 | -4.1 | 2.6 |
Amortization of prior service (credits) costs, net of tax | -0.4 | -0.4 | -1.3 | -1.1 |
Amortization of actuarial (gains) losses, net of tax | -0.1 | 0.2 | -0.2 | 0.5 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | -128 | ' | -128 | ' |
Gains (Losses) on Derivatives [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ' | ' | 68.8 | ' |
Net change in fair value of net investment hedges, net of tax | ' | ' | 22.4 | ' |
Net change in fair value of interest rate derivatives, net of tax | ' | ' | -80.7 | ' |
Amounts reclassified to earnings of cash flow hedges, net of tax | -6.7 | 1 | -4.1 | 2.6 |
Amortization of prior service (credits) costs, net of tax | ' | ' | ' | ' |
Amortization of actuarial (gains) losses, net of tax | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 6.4 | ' | 6.4 | ' |
Defined Benefit Pension [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ' | ' | 16 | ' |
Net change in fair value of interest rate derivatives, net of tax | ' | ' | ' | ' |
Amounts reclassified to earnings of cash flow hedges, net of tax | ' | ' | ' | ' |
Amortization of prior service (credits) costs, net of tax | ' | ' | -1.3 | ' |
Amortization of actuarial (gains) losses, net of tax | ' | ' | -0.2 | ' |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 14.5 | ' | 14.5 | ' |
Foreign Currency Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ' | ' | -30.2 | ' |
Foreign currency translation adjustment | ' | ' | -118.7 | ' |
Net change in fair value of interest rate derivatives, net of tax | ' | ' | ' | ' |
Amounts reclassified to earnings of cash flow hedges, net of tax | ' | ' | ' | ' |
Amortization of prior service (credits) costs, net of tax | ' | ' | ' | ' |
Amortization of actuarial (gains) losses, net of tax | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($148.90) | ' | ($148.90) | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Interest rate derivative contracts, Income tax (expense) benefit | ($4.30) | ($0.70) | ($2.70) | ($1.70) |
Total reclassifications, Net of tax | 6.7 | -1 | 4.1 | -2.6 |
Sale of foreign entity | ' | ' | ' | 3 |
Total reclassifications, Net of tax | 7.2 | -0.8 | 5.6 | 1 |
Gains (Losses) on Derivatives [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Interest rate derivative contracts, Interest expense, net | 11 | -1.7 | 6.8 | -4.3 |
Interest rate derivative contracts, Income tax (expense) benefit | -4.3 | 0.7 | -2.7 | 1.7 |
Total reclassifications, Net of tax | 6.7 | -1 | 4.1 | -2.6 |
Gains (Losses) on Derivatives [Member] | Interest Expense [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Interest rate derivative contracts, Interest expense, net | -2.4 | -1.7 | -6.6 | -4.3 |
Gains (Losses) on Derivatives [Member] | Other Operating Expenses (Income), Net [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Interest rate derivative contracts, Interest expense, net | 13.4 | ' | 13.4 | ' |
Defined Benefit Pension [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total reclassifications, Net of tax | ' | ' | ' | ' |
Amortization of prior service credits (costs), SG&A | 0.7 | 0.8 | 2.2 | 2 |
Amortization of actuarial gains (losses), SG&A | 0.1 | -0.3 | 0.2 | -0.9 |
Defined benefit pension plan expense before tax | 0.8 | 0.5 | 2.4 | 1.1 |
Defined benefit, Income tax (expense) benefit | -0.3 | -0.3 | -0.9 | -0.5 |
Total reclassifications, Net of tax | $0.50 | $0.20 | $1.50 | $0.60 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | $84.30 | $183 |
Cross-Currency Rate Swaps [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 10.9 | ' |
Investments Held in a Rabbi Trust [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 6.4 | 8.9 |
Foreign Exchange Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 12.5 | ' |
Interest Rate Caps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 2.3 | ' |
Forward-Starting Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 29.4 | ' |
Forward-Starting Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 22.8 | ' |
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 | 2.3 | 4.2 |
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 | ' | 169.9 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 6.4 | 8.9 |
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] | ' | ' |
Total assets at fair value | 6.4 | 8.9 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 77.9 | 174.1 |
Level 2 [Member] | Cross-Currency Rate Swaps [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 10.9 | ' |
Level 2 [Member] | Foreign Exchange Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 12.5 | ' |
Level 2 [Member] | Interest Rate Caps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 2.3 | ' |
Level 2 [Member] | Forward-Starting Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 29.4 | ' |
Level 2 [Member] | Forward-Starting Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets at fair value | 22.8 | ' |
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 | 2.3 | 4.2 |
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 | ' | 169.9 |
Fair Value Measurements [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cross-currency rate swaps | 132.5 | 34.7 |
Fair Value Measurements [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 | ' | 25.9 |
Fair Value Measurements [Member] | Foreign Exchange Contract [Member] | Other Accrued Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cross-currency rate swaps | 126.1 | ' |
Fair Value Measurements [Member] | Other Investments [Member] | Executive Retirement Plan [Member] | Other Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cross-currency rate swaps | 5.3 | 6 |
Fair Value Measurements [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] | ' | ' |
Cross-currency rate swaps | 1.1 | 2.8 |
Fair Value Measurements [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cross-currency rate swaps | 132.5 | 34.7 |
Fair Value Measurements [Member] | 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 | ' | 25.9 |
Fair Value Measurements [Member] | Level 2 [Member] | Foreign Exchange Contract [Member] | Other Accrued Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cross-currency rate swaps | 126.1 | ' |
Fair Value Measurements [Member] | 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] | ' | ' |
Cross-currency rate swaps | 5.3 | 6 |
Fair Value Measurements [Member] | 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] | ' | ' |
Cross-currency rate swaps | $1.10 | $2.80 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Fair value of variable rate term debt and bonds | $3,000,000,000 | $3,100,000,000 |
Carrying amount, net of original issue discount | $2,940,600,000 | $2,951,100,000 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | Fixed Income Interest Rate [Member] | Variable Income Interest Rate [Member] | Interest Rate Caps [Member] | Interest Rate Caps [Member] | Cross-Currency Rate Swaps [Member] | Cross-Currency Rate Swaps [Member] | Cross-Currency Rate Swaps [Member] | Cross-Currency Rate Swaps [Member] | Forward-Starting Interest Rate Swaps [Member] | Forward-Starting Interest Rate Swaps [Member] | Forward-Starting Interest Rate Swaps [Member] | Foreign Currency Option Contracts [Member] | Foreign Currency Option Contracts [Member] | |
Contract | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | Floating Rate Debt Beginning 2015 [Member] | Floating Rate Debt Starting 2016 [Member] | USD ($) | CAD | |
Swap | Swap | USD ($) | USD ($) | Option | ||||||||||
Commodity Hedging Contracts And Other Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contract- total notional amount | ' | $230,000,000 | $200,000,000 | $1,100,000,000 | $1,200,000,000 | $430,000,000 | ' | $430,000,000 | ' | $2,300,000,000 | $1,000,000,000 | $1,300,000,000 | ' | ' |
Variable rate borrowings at a weighted-average rate | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward interest swaps maturity period | '7 years | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cross-currency rate swaps, maturity date | ' | ' | ' | ' | ' | ' | ' | 28-Sep-17 | 28-Sep-17 | ' | ' | ' | ' | ' |
Number of forward starting interest rate swaps | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts outstanding | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of foreign currency derivatives | ' | ' | ' | ' | ' | 1 | 1 | 1 | 1 | ' | ' | ' | 2 | 2 |
Foreign currency derivatives, outstanding | ' | ' | ' | ' | ' | 4,000,000,000 | 4,347,200,000 | 4,000,000,000 | 4,347,200,000 | ' | ' | ' | 5,635,300,000 | 5,230,000,000 |
Maturity date of foreign currency derivatives | ' | ' | ' | ' | ' | 31-Dec-14 | 31-Dec-14 | ' | ' | ' | ' | ' | 30-Dec-14 | 30-Dec-14 |
Foreign currency derivatives, premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $59,900,000 | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified into interest and operating expense (income), net | ' | ' | ($154.50) | ($4.30) |
Gain (loss) recognized in other comprehensive income (loss) | -147.9 | ' | -147.9 | ' |
Interest Rate Caps [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified into interest and operating expense (income), net | -26.6 | ' | -26.6 | ' |
Forward-Starting Interest Rate Swaps [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) | 40 | ' | 40 | ' |
Derivatives Not Designated as Hedging Instruments [Member] | Forward-Starting Interest Rate Swaps [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) | 12.1 | ' | 12.1 | ' |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) | -113.6 | ' | -113.6 | -0.9 |
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) | 0.4 | -2.4 | -1.9 | 0.9 |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified into interest and operating expense (income), net | -2.4 | -1.7 | -6.6 | -4.3 |
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) | -22.9 | -1.3 | -129.9 | 121.2 |
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) | $34.90 | ($16.70) | $36.60 | ($9.20) |
Sharebased_Compensation_Additi
Share-based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Stock options, expiration period | ' | ' | '10 years | ' |
Share-based compensation expense | ' | ' | $9.50 | $7.10 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $3.50 | $2.40 | $9.50 | $7.10 |
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] | ' | ' | ' | ' |
Number of stock option grants | ' | ' | 3,622,000 | ' |
Earnings_Loss_Per_Share_Basic_
Earnings (Loss) 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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($23.50) | $68.20 | $112 | $166.90 |
Denominator: | ' | ' | ' | ' |
Weighted average shares-basic | 352 | 351.2 | 351.9 | 350.9 |
Effect of dilutive securities | ' | 6.9 | 7.3 | 6.8 |
Weighted average shares-diluted | 352 | 358.1 | 359.2 | 357.7 |
Basic earnings (loss) per share | ($0.07) | $0.19 | $0.32 | $0.48 |
Diluted earnings (loss) per share | ($0.07) | $0.19 | $0.31 | $0.47 |
Anti-dilutive stock options outstanding | 19.5 | 2.9 | 3.6 | 2.9 |
Earnings_Loss_Per_Share_Basic_1
Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive stock options outstanding | 19.5 | 2.9 | 3.6 | 2.9 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Franchisor Revenue [Abstract] | ' | ' | ' | ' |
Franchise royalties | $182.30 | $171.80 | $516.90 | $486 |
Property revenues | 54.3 | 54.8 | 162.1 | 159.7 |
Franchise fees and other revenue | 23.4 | 21.5 | 46.3 | 34.6 |
Franchise and property revenues | $260 | $248.10 | $725.30 | $680.30 |
Franchise_and_Property_Revenue3
Franchise and Property Revenues - Restaurant Count for Geographic Areas (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Restaurants | |
Number of Franchise Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at beginning | 13,615 |
Openings | 523 |
Closures | -230 |
Restaurant count at ending | 13,908 |
Company Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 52 |
System-Wide Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 13,960 |
U.S. and Canada [Member] | Number of Franchise Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at beginning | 7,384 |
Openings | 55 |
Closures | -123 |
Restaurant count at ending | 7,316 |
U.S. and Canada [Member] | Company Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 52 |
U.S. and Canada [Member] | System-Wide Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 7,368 |
EMEA [Member] | Number of Franchise Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at beginning | 3,450 |
Openings | 241 |
Closures | -60 |
Restaurant count at ending | 3,631 |
EMEA [Member] | System-Wide Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 3,631 |
LAC [Member] | Number of Franchise Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at beginning | 1,550 |
Openings | 85 |
Closures | -23 |
Restaurant count at ending | 1,612 |
LAC [Member] | System-Wide Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 1,612 |
APAC [Member] | Number of Franchise Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at beginning | 1,231 |
Openings | 142 |
Closures | -24 |
Restaurant count at ending | 1,349 |
APAC [Member] | System-Wide Restaurants [Member] | ' |
Operation By Geographical [Line Items] | ' |
Restaurant count at ending | 1,349 |
Company_Restaurant_Expenses_Su
Company Restaurant Expenses - Summary of Restaurant Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Food, paper and product costs | $6.20 | $8.50 | $17.30 | $63.80 |
Payroll and employee benefits | 5.6 | 7.4 | 16.7 | 61.6 |
Occupancy and other operating costs | 4.7 | 7 | 13.7 | 52.2 |
Company restaurant expenses | $16.50 | $22.90 | $47.70 | $177.60 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $8.40 | $0.30 | $16.30 | $0.60 |
Litigation settlements and reserves, net | 1.6 | 0.1 | 3.8 | 0.6 |
Net losses (gains) on derivatives | 147.9 | ' | 147.9 | ' |
Foreign exchange net (gains) losses | -18.9 | 0.5 | -21.4 | 6.1 |
Equity in net (earnings) loss from unconsolidated affiliates | -4.1 | 2.9 | 5.8 | 9.7 |
Other, net | 6.9 | 2.8 | 9.2 | 4.1 |
Other operating expenses (income), net | $141.80 | $6.60 | $161.60 | $21.10 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $8.40 | $0.30 | $16.30 | $0.60 |
Net losses (gains) associated with asset disposals and restaurant closures | 1.8 | 0.1 | 7.4 | 1.9 |
Net losses associated with sale of subsidiaries | ' | ' | ' | 1 |
Gain(loss) related to change in fair value of derivative instrument | -147.9 | ' | -147.9 | ' |
Tim Hortons Inc [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Gain(loss) related to change in fair value of derivative instrument | -113.6 | ' | ' | ' |
Gain related to reclassification of amounts from AOCI | 13.4 | ' | ' | ' |
Foreign Currency Option Contracts [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Number of foreign currency derivatives | 2 | ' | 2 | ' |
Foreign Currency Option Contracts [Member] | Tim Hortons Inc [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Number of foreign currency derivatives | 2 | ' | 2 | ' |
Expense related to premium on derivative instrument | 59.8 | ' | ' | ' |
Cross-Currency Rate Swaps [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Number of foreign currency derivatives | 1 | ' | 1 | ' |
Cross-Currency Rate Swaps [Member] | Tim Hortons Inc [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Number of foreign currency derivatives | 1 | ' | 1 | ' |
Forward-Starting Interest Rate Swaps [Member] | Tim Hortons Inc [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Gain(loss) related to change in fair value of derivative instrument | 12.1 | ' | ' | ' |
Carrols Restaurant Group, Inc. [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Noncash dilution gain on the issuance of stock | 5.8 | ' | ' | ' |
Ownership interest in equity method investee before additional common stock issued | ' | ' | 29.00% | ' |
Ownership interest in equity method investee after additional common stock issued | ' | ' | 21.00% | ' |
Restaurant Closures and Refranchisings [Member] | ' | ' | ' | ' |
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' |
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $6.60 | $0.40 | $8.90 | $2.30 |
Guarantees_Commitments_and_Con1
Guarantees, Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Aug. 19, 2014 | Sep. 30, 2014 |
Program | ||
Commitments Contingencies And Guarantees [Line Items] | ' | ' |
Payment to settle lawsuit | $8.50 | ' |
Estimated Liability | ' | 13 |
Additional borrowing capacity | ' | 130 |
Fair value of guarantee obligation | ' | 5.3 |
Number of programs | ' | 6 |
Franchisees [Member] | ' | ' |
Commitments Contingencies And Guarantees [Line Items] | ' | ' |
Guaranteed loans amount outstanding to franchisees | ' | 126.5 |
Additional borrowing capacity | ' | 197 |
Maximum guarantee liability | ' | $32.30 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Number of Geographical Segments | ' | ' | 4 | ' |
Revenues | $278.90 | $275.10 | $781 | $881.10 |
United States [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 159.6 | 164.5 | 454.2 | 455.6 |
United States [Member] | Sales [Member] | Minimum [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Germany [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | ' | ' | ' | $98.10 |
Germany [Member] | Sales [Member] | Minimum [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues percentage | ' | ' | ' | 10.00% |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Total revenues | $278.90 | $275.10 | $781 | $881.10 |
U.S. and Canada [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Total revenues | 166.8 | 172.1 | 475 | 509.6 |
EMEA [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Total revenues | 77.1 | 71.3 | 205.5 | 265.7 |
LAC [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Total revenues | 18.8 | 18.1 | 55.1 | 65.2 |
APAC [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Total revenues | $16.20 | $13.60 | $45.40 | $40.60 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Income to Net Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | $48.70 | $48.40 |
Segment Income: | ' | ' | ' | ' |
Adjusted EBITDA | 194.4 | 176 | 536.9 | 483.5 |
Share-based compensation and non-cash incentive compensation expense | 4.5 | 3.5 | 12.2 | 9.4 |
Global portfolio realignment project costs | ' | 4.7 | ' | 23.6 |
Transaction and strategic realignment costs | 30.7 | ' | 30.7 | ' |
Other operating expenses (income), net | 141.8 | 6.6 | 161.6 | 21.1 |
EBITDA | 17.4 | 161.2 | 332.4 | 429.4 |
Depreciation and amortization | 16.5 | 15.7 | 48.7 | 48.3 |
Income from operations | 0.9 | 145.5 | 283.7 | 381.1 |
Interest expense, net | 51.3 | 50.2 | 151.9 | 149.3 |
Income tax (benefit) expense | -26.9 | 27.1 | 19.8 | 64.9 |
Net income (loss) | -23.5 | 68.2 | 112 | 166.9 |
Unallocated Management G&A [Member] | ' | ' | ' | ' |
Segment Income: | ' | ' | ' | ' |
Segment income | -14.2 | -22.2 | -45.4 | -59.4 |
Ebitda [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Depreciation and amortization | 16.5 | 15.7 | 48.7 | 48.3 |
U.S. and Canada [Member] | ' | ' | ' | ' |
Segment Income: | ' | ' | ' | ' |
Segment income | 116.2 | 121.6 | 332.1 | 326.6 |
EMEA [Member] | ' | ' | ' | ' |
Segment Income: | ' | ' | ' | ' |
Segment income | 61 | 49.2 | 161.3 | 136.5 |
LAC [Member] | ' | ' | ' | ' |
Segment Income: | ' | ' | ' | ' |
Segment income | 16.7 | 16 | 49 | 46.6 |
APAC [Member] | ' | ' | ' | ' |
Segment Income: | ' | ' | ' | ' |
Segment income | $14.70 | $11.40 | $39.90 | $33.20 |
Supplemental_Financial_Informa2
Supplemental Financial Information - Additional Information (Detail) | 0 Months Ended |
Oct. 19, 2010 | |
Stockholders Equity Excluding Portion Attributable To Subsidiaries Noncontrolling Interest [Abstract] | ' |
Ownership percentage of subsidiary | 100.00% |
Supplemental_Financial_Informa3
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $1,013.70 | $786.90 | $764.30 | $546.70 |
Trade and notes receivable, net | 167.6 | 179.7 | ' | ' |
Prepaids and other current assets, net | 101.5 | 69.8 | ' | ' |
Deferred income taxes, net | 79.8 | 38 | ' | ' |
Total current assets | 1,362.60 | 1,074.40 | ' | ' |
Property and equipment, net | 774.3 | 801.5 | ' | ' |
Intangible assets, net | 2,693.10 | 2,796 | ' | ' |
Goodwill | 612.9 | 630 | ' | ' |
Net investment in property leased to franchisees | 145.1 | 163.1 | ' | ' |
Other assets, net | 215.1 | 363.5 | ' | ' |
Total assets | 5,803.10 | 5,828.50 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts and drafts payable | 34 | 31.1 | ' | ' |
Accrued advertising | 59.5 | 56.5 | ' | ' |
Other accrued liabilities | 411.4 | 177 | ' | ' |
Current portion of long term debt and capital leases | 100.2 | 81.4 | ' | ' |
Total current liabilities | 605.1 | 346 | ' | ' |
Term debt, net of current portion | 2,850.30 | 2,880.20 | ' | ' |
Capital leases, net of current portion | 66.5 | 75.4 | ' | ' |
Other liabilities, net | 269.4 | 317.9 | ' | ' |
Deferred income taxes, net | 630.7 | 692.8 | ' | ' |
Total liabilities | 4,422 | 4,312.30 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | 3.5 | 3.5 | ' | ' |
Additional paid-in capital | 1,252.80 | 1,239.90 | ' | ' |
Retained earnings | 260.1 | 225.5 | ' | ' |
Accumulated other comprehensive income (loss) | -128 | 54.6 | ' | ' |
Treasury stock, at cost | -7.3 | -7.3 | ' | ' |
Total stockholders' equity | 1,381.10 | 1,516.20 | ' | ' |
Total liabilities and stockholders' equity | 5,803.10 | 5,828.50 | ' | ' |
BKW [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 4.3 | 5.7 | 3.3 | 0.1 |
Trade and notes receivable, net | 5.4 | ' | ' | ' |
Deferred income taxes, net | 2.3 | 2.4 | ' | ' |
Total current assets | 12 | 8.1 | ' | ' |
Intercompany receivable | 8.5 | 11.5 | ' | ' |
Investment in subsidiaries | 1,357.60 | 1,492.70 | ' | ' |
Total assets | 1,378.10 | 1,512.30 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Other accrued liabilities | ' | -0.4 | ' | ' |
Total current liabilities | ' | -0.4 | ' | ' |
Other liabilities, net | 0.8 | 0.5 | ' | ' |
Deferred income taxes, net | -3.8 | -4 | ' | ' |
Total liabilities | -3 | -3.9 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Common stock | 3.5 | 3.5 | ' | ' |
Additional paid-in capital | 1,252.80 | 1,239.90 | ' | ' |
Retained earnings | 260.1 | 225.5 | ' | ' |
Accumulated other comprehensive income (loss) | -128 | 54.6 | ' | ' |
Treasury stock, at cost | -7.3 | -7.3 | ' | ' |
Total stockholders' equity | 1,381.10 | 1,516.20 | ' | ' |
Total liabilities and stockholders' equity | 1,378.10 | 1,512.30 | ' | ' |
BKCH [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Prepaids and other current assets, net | 0.8 | 17.7 | ' | ' |
Total current assets | 0.8 | 17.7 | ' | ' |
Intercompany receivable | 23.5 | ' | ' | ' |
Investment in subsidiaries | 1,818.70 | 1,926.60 | ' | ' |
Other assets, net | 5.2 | 5.8 | ' | ' |
Total assets | 1,848.20 | 1,950.10 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Other accrued liabilities | ' | -31.6 | ' | ' |
Total current liabilities | ' | -31.6 | ' | ' |
Term debt, net of current portion | 490.9 | 453.1 | ' | ' |
Other liabilities, net | ' | 0.1 | ' | ' |
Payables to affiliates | ' | 36.2 | ' | ' |
Deferred income taxes, net | -0.3 | -0.4 | ' | ' |
Total liabilities | 490.6 | 457.4 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | 1,186.70 | 1,173.80 | ' | ' |
Retained earnings | 298.9 | 264.3 | ' | ' |
Accumulated other comprehensive income (loss) | -128 | 54.6 | ' | ' |
Total stockholders' equity | 1,357.60 | 1,492.70 | ' | ' |
Total liabilities and stockholders' equity | 1,848.20 | 1,950.10 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivable | -99.7 | -108.5 | ' | ' |
Investment in subsidiaries | -6,690.10 | -7,021.60 | ' | ' |
Total assets | -6,789.80 | -7,130.10 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Payables to affiliates | -99.7 | -108.5 | ' | ' |
Total liabilities | -99.7 | -108.5 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | -5,592.10 | -5,551.30 | ' | ' |
Retained earnings | -1,627 | -1,332.80 | ' | ' |
Accumulated other comprehensive income (loss) | 529 | -137.5 | ' | ' |
Total stockholders' equity | -6,690.10 | -7,021.60 | ' | ' |
Total liabilities and stockholders' equity | -6,789.80 | -7,130.10 | ' | ' |
Issuer [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 644.1 | 553.2 | 600.6 | 355.3 |
Trade and notes receivable, net | 108.8 | 127.6 | ' | ' |
Prepaids and other current assets, net | 77.5 | 45.1 | ' | ' |
Deferred income taxes, net | 75.3 | 33.7 | ' | ' |
Total current assets | 905.7 | 759.6 | ' | ' |
Property and equipment, net | 713.7 | 733.6 | ' | ' |
Intangible assets, net | 1,513.70 | 1,530.70 | ' | ' |
Goodwill | 359.6 | 359.6 | ' | ' |
Net investment in property leased to franchisees | 135.3 | 151.8 | ' | ' |
Intercompany receivable | 67.7 | 97 | ' | ' |
Investment in subsidiaries | 1,695.10 | 1,675.70 | ' | ' |
Other assets, net | 150.2 | 289.4 | ' | ' |
Total assets | 5,541 | 5,597.40 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts and drafts payable | 26.8 | 21.1 | ' | ' |
Accrued advertising | 40.5 | 33.8 | ' | ' |
Other accrued liabilities | 356.6 | 164.2 | ' | ' |
Current portion of long term debt and capital leases | 97.1 | 78.2 | ' | ' |
Total current liabilities | 521 | 297.3 | ' | ' |
Term debt, net of current portion | 2,359.40 | 2,427.10 | ' | ' |
Capital leases, net of current portion | 52.1 | 57.7 | ' | ' |
Other liabilities, net | 240.8 | 283.8 | ' | ' |
Deferred income taxes, net | 549 | 604.9 | ' | ' |
Total liabilities | 3,722.30 | 3,670.80 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | 1,536.70 | 1,523.80 | ' | ' |
Retained earnings | 410 | 348.2 | ' | ' |
Accumulated other comprehensive income (loss) | -128 | 54.6 | ' | ' |
Total stockholders' equity | 1,818.70 | 1,926.60 | ' | ' |
Total liabilities and stockholders' equity | 5,541 | 5,597.40 | ' | ' |
Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Investment in subsidiaries | 1,818.70 | 1,926.60 | ' | ' |
Total assets | 1,818.70 | 1,926.60 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | 1,537.70 | 1,524.80 | ' | ' |
Retained earnings | 409 | 347.2 | ' | ' |
Accumulated other comprehensive income (loss) | -128 | 54.6 | ' | ' |
Total stockholders' equity | 1,818.70 | 1,926.60 | ' | ' |
Total liabilities and stockholders' equity | 1,818.70 | 1,926.60 | ' | ' |
Non-Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 365.3 | 228 | 160.4 | 191.3 |
Trade and notes receivable, net | 53.4 | 52.1 | ' | ' |
Prepaids and other current assets, net | 23.2 | 7 | ' | ' |
Deferred income taxes, net | 2.2 | 1.9 | ' | ' |
Total current assets | 444.1 | 289 | ' | ' |
Property and equipment, net | 60.6 | 67.9 | ' | ' |
Intangible assets, net | 1,179.40 | 1,265.30 | ' | ' |
Goodwill | 253.3 | 270.4 | ' | ' |
Net investment in property leased to franchisees | 9.8 | 11.3 | ' | ' |
Other assets, net | 59.7 | 68.3 | ' | ' |
Total assets | 2,006.90 | 1,972.20 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts and drafts payable | 7.2 | 10 | ' | ' |
Accrued advertising | 19 | 22.7 | ' | ' |
Other accrued liabilities | 54.8 | 44.8 | ' | ' |
Current portion of long term debt and capital leases | 3.1 | 3.2 | ' | ' |
Total current liabilities | 84.1 | 80.7 | ' | ' |
Capital leases, net of current portion | 14.4 | 17.7 | ' | ' |
Other liabilities, net | 27.8 | 33.5 | ' | ' |
Payables to affiliates | 99.7 | 72.3 | ' | ' |
Deferred income taxes, net | 85.8 | 92.3 | ' | ' |
Total liabilities | 311.8 | 296.5 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' |
Additional paid-in capital | 1,331 | 1,328.90 | ' | ' |
Retained earnings | 509.1 | 373.1 | ' | ' |
Accumulated other comprehensive income (loss) | -145 | -26.3 | ' | ' |
Total stockholders' equity | 1,695.10 | 1,675.70 | ' | ' |
Total liabilities and stockholders' equity | $2,006.90 | $1,972.20 | ' | ' |
Supplemental_Financial_Informa4
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Franchise and property revenues | $260 | $248.10 | $725.30 | $680.30 |
Company restaurant revenues | 18.9 | 27 | 55.7 | 200.8 |
Intercompany revenues | ' | ' | ' | ' |
Total revenues | 278.9 | 275.1 | 781 | 881.1 |
Franchise and property expenses | 41.4 | 40.5 | 114.5 | 113.5 |
Company restaurant expenses | 16.5 | 22.9 | 47.7 | 177.6 |
Selling, general and administrative expenses | 78.3 | 59.6 | 173.5 | 187.8 |
Other operating expenses (income), net | 141.8 | 6.6 | 161.6 | 21.1 |
Total operating costs and expenses | 278 | 129.6 | 497.3 | 500 |
Income (loss) from operations | 0.9 | 145.5 | 283.7 | 381.1 |
Interest expense, net | 51.3 | 50.2 | 151.9 | 149.3 |
Income (loss) before income taxes | -50.4 | 95.3 | 131.8 | 231.8 |
Income tax expense (benefit) | -26.9 | 27.1 | 19.8 | 64.9 |
Income (loss) from continuing operations | -23.5 | 68.2 | 112 | 166.9 |
Net income (loss) | -23.5 | 68.2 | 112 | 166.9 |
Total comprehensive income (loss) | -132.1 | 100.9 | -70.6 | 266 |
BKW [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Intercompany revenues | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -23.5 | 68.2 | 112 | 166.9 |
Net income (loss) | -23.5 | 68.2 | 112 | 166.9 |
Total comprehensive income (loss) | -132.1 | 100.9 | -70.6 | 266 |
BKCH [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Intercompany revenues | ' | ' | ' | ' |
Interest expense, net | 13.1 | 11.8 | 38.4 | 34.5 |
Income (loss) before income taxes | -13.1 | -11.8 | -38.4 | -34.5 |
Income tax expense (benefit) | -4.6 | -3.4 | -11.2 | -9.5 |
Income (loss) from continuing operations | -8.5 | -8.4 | -27.2 | -25 |
Equity in earnings of subsidiaries | -15 | 76.6 | 139.2 | 191.9 |
Net income (loss) | -23.5 | 68.2 | 112 | 166.9 |
Total comprehensive income (loss) | -132.1 | 100.9 | -70.6 | 266 |
Eliminations [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Intercompany expenses | ' | 0 | ' | ' |
Equity in earnings of subsidiaries | -3.3 | -254.9 | -526.4 | -651.7 |
Net income (loss) | -3.3 | -254.9 | -526.4 | -651.7 |
Total comprehensive income (loss) | 431.5 | -397.6 | 140.1 | -980.6 |
Issuer [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Franchise and property revenues | 162.6 | 167.1 | 462.3 | 455.6 |
Company restaurant revenues | 18.9 | 18.7 | 55.7 | 57.2 |
Intercompany revenues | ' | ' | ' | 1.6 |
Total revenues | 181.5 | 185.8 | 518 | 514.4 |
Franchise and property expenses | 28.9 | 29 | 80.8 | 81.2 |
Company restaurant expenses | 16.5 | 15.6 | 47.7 | 49.9 |
Selling, general and administrative expenses | 64.6 | 43.8 | 134.2 | 131 |
Intercompany expenses | -1.3 | -0.6 | -4.4 | -0.9 |
Other operating expenses (income), net | 156.4 | 0.6 | 168.1 | 14.8 |
Total operating costs and expenses | 265.1 | 88.4 | 426.4 | 276 |
Income (loss) from operations | -83.6 | 97.4 | 91.6 | 238.4 |
Interest expense, net | 37.8 | 37.6 | 112.5 | 111.8 |
Income (loss) before income taxes | -121.4 | 59.8 | -20.9 | 126.6 |
Income tax expense (benefit) | -49.6 | 16.7 | -24.1 | 35.7 |
Income (loss) from continuing operations | -71.8 | 43.1 | 3.2 | 90.9 |
Equity in earnings of subsidiaries | 56.8 | 33.5 | 136 | 101 |
Net income (loss) | -15 | 76.6 | 139.2 | 191.9 |
Total comprehensive income (loss) | -123.6 | 109.3 | -43.4 | 291 |
Guarantors [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Intercompany revenues | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -15 | 76.6 | 139.2 | 191.9 |
Net income (loss) | -15 | 76.6 | 139.2 | 191.9 |
Total comprehensive income (loss) | -123.6 | 109.3 | -43.4 | 291 |
Non-Guarantors [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Franchise and property revenues | 97.4 | 81 | 263 | 224.7 |
Company restaurant revenues | ' | 8.3 | ' | 143.6 |
Intercompany revenues | ' | ' | ' | -1.6 |
Total revenues | 97.4 | 89.3 | 263 | 366.7 |
Franchise and property expenses | 12.5 | 11.5 | 33.7 | 32.3 |
Company restaurant expenses | ' | 7.3 | ' | 127.7 |
Selling, general and administrative expenses | 13.7 | 15.8 | 39.3 | 56.8 |
Intercompany expenses | 1.3 | 0.6 | 4.4 | 0.9 |
Other operating expenses (income), net | -14.6 | 6 | -6.5 | 6.3 |
Total operating costs and expenses | 12.9 | 41.2 | 70.9 | 224 |
Income (loss) from operations | 84.5 | 48.1 | 192.1 | 142.7 |
Interest expense, net | 0.4 | 0.8 | 1 | 3 |
Income (loss) before income taxes | 84.1 | 47.3 | 191.1 | 139.7 |
Income tax expense (benefit) | 27.3 | 13.8 | 55.1 | 38.7 |
Income (loss) from continuing operations | 56.8 | 33.5 | 136 | 101 |
Net income (loss) | 56.8 | 33.5 | 136 | 101 |
Total comprehensive income (loss) | ($52.20) | $78.10 | $17.30 | $132.60 |
Supplemental_Financial_Informa5
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $112 | $166.90 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 48.7 | 48.4 |
Amortization of deferred financing cost and debt issuance discount | 45.7 | 41.7 |
Equity in net (earnings) loss from unconsolidated affiliates | 5.8 | 9.7 |
Loss (gain) on remeasurement of foreign denominated transactions | -22 | 1 |
Amortization of defined benefit pension and postretirement items | -2.4 | -1.6 |
Net losses (gains) on derivatives | 154.5 | 4.3 |
Net losses (gains) on refranchisings and dispositions of assets | 11.8 | -2.5 |
Bad debt (recoveries) expense, net | 0.9 | 2.2 |
Share-based compensation expense | 9.5 | 7.1 |
Deferred income tax (benefit) expense | -59.1 | 33.3 |
Changes in current assets and liabilities, excluding dispositions: | ' | ' |
Trade and notes receivables | 10 | 6.3 |
Prepaids and other current assets | 10.8 | -0.2 |
Accounts and drafts payable | 1.8 | -35.7 |
Accrued advertising | -22.2 | 9.7 |
Other accrued liabilities | 88 | -4.9 |
Other long-term assets and liabilities | -18.2 | -18 |
Net cash provided by (used for) operating activities | 375.6 | 267.7 |
Cash flows from investing activities: | ' | ' |
Payments for property and equipment | -10.7 | -10.8 |
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | -6.6 | 48.7 |
Net payments for acquired and disposed franchisee operations, net of cash acquired | -3.9 | -11.9 |
Return of investment on direct financing leases | 11.6 | 11.9 |
Other investing activities | -0.2 | 0.2 |
Net cash provided by (used for) investing activities | -9.8 | 38.1 |
Cash flows from financing activities: | ' | ' |
Repayments of term debt and capital leases | -57.3 | -38.1 |
Proceeds from stock option exercises | 0.1 | 2.7 |
Excess tax benefits from share-based compensation | 0.2 | 4.2 |
Dividends paid on common stock | -77.4 | -59.7 |
Net cash provided by (used for) financing activities | -134.4 | -90.9 |
Effect of exchange rates on cash and cash equivalents | -4.6 | 2.7 |
Increase (decrease) in cash and cash equivalents | 226.8 | 217.6 |
Cash and cash equivalents at beginning of period | 786.9 | 546.7 |
Cash and cash equivalents at end of period | 1,013.70 | 764.3 |
BKW [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 112 | 166.9 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Equity in earnings of subsidiary | -112 | -166.9 |
Deferred income tax (benefit) expense | 0.2 | ' |
Changes in current assets and liabilities, excluding dispositions: | ' | ' |
Trade and notes receivables | -5.4 | ' |
Net cash provided by (used for) operating activities | -5.2 | ' |
Cash flows from financing activities: | ' | ' |
Proceeds from stock option exercises | 0.1 | 2.7 |
Dividends paid on common stock | -77.4 | -59.7 |
Intercompany financing | 81.1 | 60.2 |
Net cash provided by (used for) financing activities | 3.8 | 3.2 |
Increase (decrease) in cash and cash equivalents | -1.4 | 3.2 |
Cash and cash equivalents at beginning of period | 5.7 | 0.1 |
Cash and cash equivalents at end of period | 4.3 | 3.3 |
BKCH [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 112 | 166.9 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Equity in earnings of subsidiary | -139.2 | -191.9 |
Amortization of deferred financing cost and debt issuance discount | 38.4 | 34.5 |
Deferred income tax (benefit) expense | 0.1 | 16.5 |
Changes in current assets and liabilities, excluding dispositions: | ' | ' |
Net cash provided by (used for) operating activities | 11.3 | 26 |
Cash flows from financing activities: | ' | ' |
Intercompany financing | -11.3 | -26 |
Net cash provided by (used for) financing activities | -11.3 | -26 |
Eliminations [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | -526.4 | -651.7 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Equity in earnings of subsidiary | 526.4 | 651.7 |
Issuer [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 139.2 | 191.9 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Equity in earnings of subsidiary | -136 | -101 |
Depreciation and amortization | 36.6 | 32.6 |
Amortization of deferred financing cost and debt issuance discount | 7.3 | 7.2 |
Equity in net (earnings) loss from unconsolidated affiliates | -1.3 | 4.5 |
Loss (gain) on remeasurement of foreign denominated transactions | 1.3 | -0.5 |
Amortization of defined benefit pension and postretirement items | -2.3 | -1.1 |
Net losses (gains) on derivatives | 154.5 | 4.3 |
Net losses (gains) on refranchisings and dispositions of assets | 13.9 | 5.4 |
Bad debt (recoveries) expense, net | 0.4 | 2.2 |
Share-based compensation expense | 7.4 | 5.4 |
Deferred income tax (benefit) expense | -57.1 | 7.6 |
Changes in current assets and liabilities, excluding dispositions: | ' | ' |
Trade and notes receivables | 21 | 7.7 |
Prepaids and other current assets | 11.4 | -1 |
Accounts and drafts payable | 4.1 | -24.6 |
Accrued advertising | -10 | 14 |
Other accrued liabilities | 76.8 | 9.5 |
Other long-term assets and liabilities | -20 | -19.2 |
Net cash provided by (used for) operating activities | 247.2 | 144.9 |
Cash flows from investing activities: | ' | ' |
Payments for property and equipment | -10.7 | -8.5 |
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | 2.3 | 45.1 |
Net payments for acquired and disposed franchisee operations, net of cash acquired | -3.9 | -11.9 |
Return of investment on direct financing leases | 10.7 | 10.9 |
Other investing activities | -0.2 | 0.2 |
Net cash provided by (used for) investing activities | -1.8 | 35.8 |
Cash flows from financing activities: | ' | ' |
Repayments of term debt and capital leases | -55 | -35.5 |
Excess tax benefits from share-based compensation | 0.2 | 4.2 |
Intercompany financing | -99.7 | 95.9 |
Net cash provided by (used for) financing activities | -154.5 | 64.6 |
Increase (decrease) in cash and cash equivalents | 90.9 | 245.3 |
Cash and cash equivalents at beginning of period | 553.2 | 355.3 |
Cash and cash equivalents at end of period | 644.1 | 600.6 |
Guarantors [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 139.2 | 191.9 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Equity in earnings of subsidiary | -139.2 | -191.9 |
Non-Guarantors [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 136 | 101 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 12.1 | 15.8 |
Equity in net (earnings) loss from unconsolidated affiliates | 7.1 | 5.2 |
Loss (gain) on remeasurement of foreign denominated transactions | -23.3 | 1.5 |
Amortization of defined benefit pension and postretirement items | -0.1 | -0.5 |
Net losses (gains) on refranchisings and dispositions of assets | -2.1 | -7.9 |
Bad debt (recoveries) expense, net | 0.5 | ' |
Share-based compensation expense | 2.1 | 1.7 |
Deferred income tax (benefit) expense | -2.3 | 9.2 |
Changes in current assets and liabilities, excluding dispositions: | ' | ' |
Trade and notes receivables | -5.6 | -1.4 |
Prepaids and other current assets | -0.6 | 0.8 |
Accounts and drafts payable | -2.3 | -11.1 |
Accrued advertising | -12.2 | -4.3 |
Other accrued liabilities | 11.2 | -14.4 |
Other long-term assets and liabilities | 1.8 | 1.2 |
Net cash provided by (used for) operating activities | 122.3 | 96.8 |
Cash flows from investing activities: | ' | ' |
Payments for property and equipment | ' | -2.3 |
(Payments) proceeds from refranchisings, disposition of assets and restaurant closures | -8.9 | 3.6 |
Return of investment on direct financing leases | 0.9 | 1 |
Net cash provided by (used for) investing activities | -8 | 2.3 |
Cash flows from financing activities: | ' | ' |
Repayments of term debt and capital leases | -2.3 | -2.6 |
Intercompany financing | 29.9 | -130.1 |
Net cash provided by (used for) financing activities | 27.6 | -132.7 |
Effect of exchange rates on cash and cash equivalents | -4.6 | 2.7 |
Increase (decrease) in cash and cash equivalents | 137.3 | -30.9 |
Cash and cash equivalents at beginning of period | 228 | 191.3 |
Cash and cash equivalents at end of period | $365.30 | $160.40 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], USD $) | 0 Months Ended | |
Nov. 03, 2014 | Nov. 03, 2014 | |
Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Dividend to be paid date | 25-Nov-14 | ' |
Dividend payable record date | 14-Nov-14 | ' |
Cash dividend declared by board | ' | $0.08 |