Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 20, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | QSP | |
Entity Registrant Name | Restaurant Brands International Limited Partnership | |
Entity Central Index Key | 1618755 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Class B Exchangeable Limited Partnership Units [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Units Outstanding | 265,041,783 | |
Class A Common Units [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Units Outstanding | 202,006,067 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,021.60 | $1,803.20 |
Restricted cash and cash equivalents | 0 | 84.5 |
Trade and notes receivable, net of allowance of $18.0 million and $20.1 million, respectively | 361.5 | 439.9 |
Inventories and other current assets, net | 196.5 | 193.8 |
Advertising fund restricted assets | 44.4 | 53 |
Deferred income taxes, net | 96.8 | 85.6 |
Total current assets | 1,720.80 | 2,660 |
Property and equipment, net of accumulated depreciation of $253.0 million and $226.7 million, respectively | 2,400.50 | 2,539.60 |
Intangible assets, net | 8,819.70 | 9,441.10 |
Goodwill | 5,360.20 | 5,851.30 |
Net investment in property leased to franchisees | 135.1 | 140.5 |
Other assets, net | 937.6 | 531.5 |
Total assets | 19,373.90 | 21,164 |
Current liabilities: | ||
Accounts and drafts payable | 233.9 | 223 |
Accrued advertising | 35.7 | 25.9 |
Other accrued liabilities | 463.5 | 318.4 |
Gift card liability | 125.9 | 187 |
Advertising fund liabilities | 40.2 | 45.6 |
Current portion of long term debt and capital leases | 39.1 | 1,124.90 |
Total current liabilities | 938.3 | 1,924.80 |
Term debt, net of current portion | 8,961 | 8,936.70 |
Capital leases, net of current portion | 161.5 | 175.7 |
Other liabilities, net | 743.1 | 644.1 |
Deferred income taxes, net | 1,756.30 | 1,862.10 |
Total liabilities | 12,560.20 | 13,543.40 |
Commitments and Contingencies | ||
Partnership preferred units; $43.775848 par value; 68,530,939 units authorized, issued and outstanding at March 31, 2015 and December 31, 2014 | 3,297 | 3,297 |
Partners' capital: | ||
Accumulated other comprehensive income (loss) | -1,014.70 | -256.6 |
Total Partners' capital | 3,514.40 | 4,322.30 |
Noncontrolling interests | 2.3 | 1.3 |
Total equity | 3,516.70 | 4,323.60 |
Total liabilities and equity | 19,373.90 | 21,164 |
Class A Common Units [Member] | ||
Partners' capital: | ||
Class A common units - 202,006,067 units issued and outstanding at March 31, 2015 and December 31, 2014 | 1,967.60 | 1,982.90 |
Total equity | 1,967.60 | 1,982.90 |
Class B Exchangeable Limited Partnership Units [Member] | ||
Partners' capital: | ||
Partnership exchangeable units - 265,041,783 units issued and outstanding at March 31, 2015 and December 31, 2014 | 2,561.50 | 2,596 |
Total equity | $2,561.50 | $2,596 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Allowances for trade and notes receivable | $18 | $20.10 |
Property and equipment, accumulated depreciation | $253 | $226.70 |
Partnership preferred units, par value | $43.78 | $43.78 |
Partnership preferred units, shares authorized | 68,530,939 | 68,530,939 |
Partnership preferred units, shares issued | 68,530,939 | 68,530,939 |
Partnership preferred units; shares outstanding | 68,530,939 | 68,530,939 |
Class A Common Units [Member] | ||
Class A common units, units issued | 202,006,067 | 202,006,067 |
Class A common units, units outstanding | 202,006,067 | 202,006,067 |
Class B Exchangeable Limited Partnership Units [Member] | ||
Partnership exchangeable units, units issued | 265,041,783 | 265,041,783 |
Partnership exchangeable units, units outstanding | 265,041,783 | 265,041,783 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Sales | $499.50 | $18.50 |
Franchise and property revenues | 432.5 | 222.4 |
Total revenues | 932 | 240.9 |
Cost of sales | 436.5 | 15.5 |
Franchise and property expenses | 130 | 37.4 |
Selling, general and administrative expenses | 111 | 48.2 |
(Income) loss from equity method investments | -2.8 | 4 |
Other operating expenses (income), net | 35.5 | 4.5 |
Total operating costs and expenses | 710.2 | 109.6 |
Income from operations | 221.8 | 131.3 |
Interest expense, net | 123.9 | 50 |
(Gain) loss on early extinguishment of debt | -0.3 | |
Income (loss) before income taxes | 98.2 | 81.3 |
Income tax expense | 47.3 | 20.9 |
Net income (loss) | 50.9 | 60.4 |
Net income (loss) attributable to noncontrolling interests (Note 13) | 1 | |
Partnership preferred unit distributions | 68.7 | |
Net income (loss) attributable to common unitholders / shareholders | -18.8 | 60.4 |
Earnings (loss) per unit / share - basic (Note 5): | ||
Earning per unit basic | $0.17 | |
Earnings (loss) per unit / share - diluted (Note 5): | ||
Earning per unit diluted | $0.17 | |
Weighted average units / shares outstanding - basic (Note 5): | ||
Weighted average units / shares outstanding - basic | 352.2 | |
Weighted average units / shares outstanding - diluted (Note 5): | ||
Weighted average units / shares outstanding - diluted | 359.2 | |
Distributions per common unit | $0.09 | |
Dividends per common share | $0.07 | |
Class A Common Units [Member] | ||
Revenues: | ||
Net income (loss) | 21.6 | |
Partnership preferred unit distributions | 29.7 | |
Net income (loss) attributable to common unitholders / shareholders | -8.1 | |
Earnings (loss) per unit / share - basic (Note 5): | ||
Earning per unit basic | ($0.04) | |
Earnings (loss) per unit / share - diluted (Note 5): | ||
Earning per unit diluted | ($0.04) | |
Weighted average units / shares outstanding - basic (Note 5): | ||
Weighted average units / shares outstanding - basic | 202 | |
Weighted average units / shares outstanding - diluted (Note 5): | ||
Weighted average units / shares outstanding - diluted | 202 | |
Class B Exchangeable Limited Partnership Units [Member] | ||
Revenues: | ||
Net income (loss) | 28.3 | |
Partnership preferred unit distributions | 39 | |
Net income (loss) attributable to common unitholders / shareholders | ($10.70) | |
Earnings (loss) per unit / share - basic (Note 5): | ||
Earning per unit basic | ($0.04) | |
Earnings (loss) per unit / share - diluted (Note 5): | ||
Earning per unit diluted | ($0.04) | |
Weighted average units / shares outstanding - basic (Note 5): | ||
Weighted average units / shares outstanding - basic | 265 | |
Weighted average units / shares outstanding - diluted (Note 5): | ||
Weighted average units / shares outstanding - diluted | 265 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $50.90 | $60.40 |
Foreign currency translation adjustment | -1,091.80 | -0.6 |
Net change in fair value of net investment hedges, net of tax of $(68.1) and $0.2 | 386.2 | -0.2 |
Net change in fair value of cash flow hedges, net of tax of $19.4 and $21.7 | -53.9 | -34.2 |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(0.6) and $(0.8) | 1.5 | 1.2 |
Pension and post-retirement benefit plans, net of tax of $0.1 and $0 | -0.1 | |
Amortization of prior service (credits) costs, net of tax of $0.3 and $0 | -0.4 | |
Amortization of actuarial (gains) losses, net of tax of $(0.3) and $0.2 | 0.4 | -0.5 |
Other comprehensive income (loss) | -758.1 | -34.3 |
Comprehensive income (loss) | ($707.20) | $26.10 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on change in fair value of investment hedges | ($68.10) | $0.20 |
Tax effect on change in fair value of interest rate caps/swaps | 19.4 | 21.7 |
Tax effect on amounts reclassified to earnings of cash flow hedges | -0.6 | -0.8 |
Tax effect on pension and post-retirement benefit plans | 0.1 | 0 |
Tax effect on amortization prior service costs | 0.3 | 0 |
Tax effect on amortization of actuarial losses | ($0.30) | $0.20 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Shareholders' Equity (unaudited) (USD $) | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Class A Common Units [Member] | Class B Exchangeable Limited Partnership Units [Member] |
In Millions | |||||
Beginning Balance at Dec. 31, 2014 | $4,323.60 | ($256.60) | $1.30 | $1,982.90 | $2,596 |
Beginning Balance, shares at Dec. 31, 2014 | 202 | 265 | |||
Preferred unit distributions | -68.7 | -29.7 | -39 | ||
Distributions declared on Class A common units ($0.09 per unit) | -18.2 | -18.2 | |||
Distributions declared on partnership exchangeable units ($0.09 per unit) | -23.8 | -23.8 | |||
Capital contribution from RBI Inc. | 11 | 11 | |||
Net income (loss) | 50.9 | 1 | 21.6 | 28.3 | |
Other comprehensive income (loss) | -758.1 | -758.1 | |||
Ending Balance at Mar. 31, 2015 | $3,516.70 | ($1,014.70) | $2.30 | $1,967.60 | $2,561.50 |
Ending Balance, shares at Mar. 31, 2015 | 202 | 265 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Shareholders' Equity (unaudited) (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Class A Common Units [Member] | |
Distributions declared on Class A common units, per unit | $0.09 |
Class B Exchangeable Limited Partnership Units [Member] | |
Distributions declared on partnership exchangeable units, per unit | $0.09 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $50.90 | $60.40 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 50.9 | 16.4 |
(Gain) loss on early extinguishment of debt | -0.3 | |
Amortization of deferred financing costs and debt issuance discount | 7 | 14.9 |
(Income) loss from equity method investments | -2.8 | 4 |
Loss (gain) on remeasurement of foreign denominated transactions | 18.1 | 0.5 |
Amortization of defined benefit pension and postretirement items | 0 | -0.8 |
Net losses (gains) on derivatives | 15 | 2 |
Net losses (gains) on refranchisings and dispositions of assets | 1.2 | 1.8 |
Bad debt expense (recoveries), net | 2.2 | 0.5 |
Share-based compensation expense | 15.5 | 2.8 |
Amortization of cost of sales step-up | 4.7 | |
Deferred income taxes | -38 | 9.1 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Reclassification of restricted cash to cash and cash equivalents | 79.2 | |
Trade and notes receivable | 55.6 | 12.6 |
Inventories and other current assets | -0.8 | 6 |
Accounts and drafts payable | 24.4 | 9.9 |
Accrued advertising | -0.2 | -11.7 |
Other accrued liabilities | 4.3 | 1.4 |
Other long-term assets and liabilities | -25.1 | -4.5 |
Net cash provided by operating activities | 261.8 | 125.3 |
Cash flows from investing activities: | ||
Payments for property and equipment | -29.4 | -3.4 |
Proceeds (payments) from refranchisings, disposition of assets and restaurant closures | 4.5 | -4.5 |
Return of investment on direct financing leases | 4 | 3.9 |
Settlement of derivatives | 52.1 | |
Other investing activities, net | 1.5 | -0.2 |
Net cash provided by (used for) investing activities | 32.7 | -4.2 |
Cash flows from financing activities: | ||
Repayments of term debt, Tim Hortons Notes and capital leases | -1,020.60 | -19.1 |
Dividends paid on common stock | -24.6 | |
Capital contribution from RBI Inc. | 2.1 | |
Other financing activities | 1.4 | |
Net cash provided by (used for) financing activities | -1,017.10 | -43.7 |
Effect of exchange rates on cash and cash equivalents | -59 | -1.2 |
Increase (decrease) in cash and cash equivalents | -781.6 | 76.2 |
Cash and cash equivalents at beginning of period | 1,803.20 | 786.9 |
Cash and cash equivalents at end of period | 1,021.60 | 863.1 |
Supplemental cash flow disclosures: | ||
Interest paid | 88.5 | 14.4 |
Income taxes paid | 42.9 | 11.3 |
Non-cash investing and financing activities: | ||
Acquisition of property with capital lease obligations | $4.50 |
Description_of_Business_and_Or
Description of Business and Organization | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Description of Business and Organization | Note 1. Description of Business and Organization | ||||||||||||
Description of Business | |||||||||||||
Restaurant Brands International Limited Partnership (“Partnership,” “we,” “us” and “our”) was formed on August 25, 2014 as a general partnership and was registered on October 27, 2014 as a limited partnership in accordance with the laws of the Province of Ontario. Pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Partnership is a successor issuer to Burger King Worldwide, Inc. (“Burger King Worldwide”). Partnership is the indirect parent of The TDL Group Corp. (f/k/a Tim Hortons ULC and Tim Hortons Inc.) (“Tim Hortons”), a limited liability company existing under the laws of British Columbia that franchises and operates quick service restaurants that serve premium coffee and other beverage and food products under the Tim Hortons® brand and Burger King Worldwide, a Delaware corporation that franchises and operates fast food hamburger restaurants principally under the Burger King® brand. We are one of the world’s largest quick service restaurant, or QSR, chains as measured by the total number of restaurants. As of March 31, 2015, we franchised or owned a total of 19,111 restaurants in approximately 100 countries and U.S. territories worldwide. Approximately 100% of current Tim Hortons and Burger King system-wide restaurants are franchised. | |||||||||||||
We are a limited partnership organized under the laws of Ontario and a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner. As our general partner, RBI has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership in accordance with the partnership agreement (“partnership agreement”) and applicable laws. There is no board of directors of Partnership. RBI has established a conflicts committee composed entirely of “independent directors” (as such term is defined in the partnership agreement) in order to consent to, approve or direct various enumerated actions on behalf of RBI (in its capacity as our general partner) in accordance with the terms of the partnership agreement. | |||||||||||||
The following table outlines our restaurant count and activity, by brand and consolidated, for the periods indicated. | |||||||||||||
Tim Hortons | Burger King | System Wide | |||||||||||
Total restaurants - December 31, 2014 | 4,671 | 14,372 | 19,043 | ||||||||||
Openings | 63 | 102 | 165 | ||||||||||
Closures | (10 | ) | (87 | ) | (97 | ) | |||||||
Total restaurants - March 31, 2015 | 4,724 | 14,387 | 19,111 | ||||||||||
Excluded from the table above are 255 primarily licensed Tim Hortons locations in the Republic of Ireland and the United Kingdom as of March 31, 2015. | |||||||||||||
All references to USD or $ are to United States dollars, and all references to C$ are to Canadian dollars. |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Note 2. 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 of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in our Annual Report on Form 10-K filed with the SEC on March 12, 2015. | |
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 other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. | |
We also consider for consolidation entities 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 Tim Hortons advertising funds and in entities that operate restaurants under our subsidiaries’ franchise arrangements and certain equity method investees that operate as master franchisees. 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. | |
We do not have any ownership interests in our franchisees’ businesses, except for investments in various entities that are accounted for under the equity method. Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant, but Tim Hortons owns the restaurant’s assets. In these arrangements, Tim Hortons has the ability to determine which operators manage the restaurants and for what duration. Tim Hortons previously also entered into interest-free financing in connection with a Franchise Incentive Program (“FIP Note”) with certain U.S. restaurant owners whereby restaurant owners finance the initial franchise fee and purchase of restaurant assets. In both operator and FIP arrangements, we perform an analysis to determine if the legal entity in which operations are conducted is a VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). Additionally, Tim Hortons participates in advertising funds which, on behalf of Tim Hortons Company restaurants and franchise restaurants, collect contributions and administer funds for advertising and promotional programs. Tim Hortons is the sole shareholder (Canada) and sole member (U.S.) in these funds, and is the primary beneficiary of these funds (the “Advertising VIEs”). As Burger King franchise and master franchise arrangements provide the 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. | |
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. | |
During the three months ended March 31, 2015, amounts previously classified as restricted cash were reclassified to cash and cash equivalents as a result of removing contractual restrictions and our intent to no longer classify this cash as restricted. This reclassification is reflected as a source of cash provided by operating activities in the consolidated statement of cash flows for the three months ended March 31, 2015. | |
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. |
The_Transactions
The Transactions | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
The Transactions | Note 3. The Transactions | ||||
On December 12, 2014 (the “Closing Date”), a series of transactions (the “Transactions”) were completed resulting in Partnership indirectly acquiring Burger King Worldwide and Tim Hortons (the “Acquisition”). The Acquisition was accounted for as a business combination using the acquisition method of accounting and Burger King Worldwide was determined to be the accounting acquirer. The primary reason for the Acquisition was to create one of the world’s largest quick service restaurant companies. | |||||
Upon completion of the Transactions, Partnership issued to RBI 202.0 million Class A common units and 68,530,939 Partnership preferred units. In connection with the Transactions, Partnership also issued 265.0 million Class B exchangeable limited partnership units of Partnership (“Partnership exchangeable units”) to former holders of Burger King Worldwide common stock. | |||||
The total consideration paid in the Acquisition was $11,294.9 million and the purchase price allocation shown in the table below reflects preliminary fair value estimates based on management analysis, including preliminary work performed by third-party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired at the Closing Date during the measurement period. Measurement period adjustments will be applied retrospectively to the Closing Date. During the three months ended March 31, 2015, no revisions to the preliminary purchase price allocation were made. | |||||
December 12, 2014 | |||||
Total current assets | $ | 640.7 | |||
Property and equipment | 1,778.00 | ||||
Intangible assets | 6,817.60 | ||||
Other assets, net | 92.5 | ||||
Accounts payable | (228.2 | ) | |||
Advertising fund liabilities | (49.7 | ) | |||
Other accrued liabilities | (222.3 | ) | |||
Total debt and capital lease obligations | (1,233.8 | ) | |||
Other liabilities, net | (310.3 | ) | |||
Deferred income taxes, net | (1,251.7 | ) | |||
Total identifiable net assets | 6,032.80 | ||||
Noncontrolling interest | (1.1 | ) | |||
Goodwill | 5,263.20 | ||||
Total | $ | 11,294.90 | |||
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 4. New Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“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. In early 2015, the FASB tentatively decided to defer for one year the effective date of the new revenue standard. 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 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 February 2015, the FASB issued an accounting standards update that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early application permitted. We are currently evaluating the impact the adoption of this accounting standards update will have on our financial statements. | |
In April 2015, the FASB issued an accounting standards update that changes the presentation of debt issuance costs in financial statements. Under the new guidance, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, with early application permitted. Other than the change in presentation, this accounting standards update will not have an impact on our consolidated financial position, results of operations or cash flows. |
Earnings_Loss_Per_UnitShare
Earnings (Loss) Per Unit/Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings (Loss) Per Unit/Share | Note 5. Earnings (Loss) Per Unit/Share | ||||||||
As a result of the reorganization of Burger King Worldwide into Partnership following the Transactions, Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount per unit equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Partnership exchangeable units are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests and Partnership preferred unit distributions. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. | |||||||||
During the three months ended March 31, 2015, the net income (loss) allocated to Partnership exchangeable units was calculated as 56.7% of net income (loss) attributable to common unitholders. The weighted average Partnership exchangeable units for the three months ended March 31, 2015 reflects the 265.0 million Partnership exchangeable units received in exchange for Burger King Worldwide common shares during 2014. | |||||||||
Prior to the Transactions, our equity reflected 100% ownership by Burger King Worldwide shareholders. Basic and diluted earnings (loss) per common share for the three months ended March 31, 2014 is computed by dividing net income (loss) allocated to common shareholders by the weighted average number of shares outstanding for Burger King Worldwide shareholders during this period. | |||||||||
From and after the one year anniversary of the effective date of the Transactions, the holders of Partnership exchangeable units will each have the right to require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units on a one-for-one basis for RBI common shares, subject to RBI’s right as the general partner of Partnership, in RBI’s sole discretion, to deliver a cash payment in lieu of RBI common shares. The allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units will be affected by the exchange of Partnership exchangeable units in future periods. | |||||||||
We apply the treasury stock method to determine the dilutive weighted average common shares represented by Burger King Worldwide outstanding stock options prior to the date of the Transactions, unless the effect of their inclusion was anti-dilutive. Subsequent to the Transactions, since all stock options were issued by RBI, there are no dilutive securities for Partnership as the exercise of stock options will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. | |||||||||
The following table summarizes the basic and diluted earnings per unit/share calculations for the periods indicated (in millions, except per unit/share amounts): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator - Basic and Diluted: | |||||||||
Net income (loss) attributable to common unitholders/shareholders | $ | (18.8 | ) | $ | 60.4 | ||||
Allocation of net income (loss) among partner interests and common shareholders: | |||||||||
Net income (loss) allocated to Class A common unitholders | $ | (8.1 | ) | $ | — | ||||
Net income (loss) allocated to Partnership exchangeable unitholders | (10.7 | ) | — | ||||||
Net income (loss) allocated to common shareholders | — | 60.4 | |||||||
Net income (loss) attributable to common unitholders / shareholders | $ | (18.8 | ) | $ | 60.4 | ||||
Denominator - Basic and Diluted partnership units: | |||||||||
Weighted average Class A common units | 202 | — | |||||||
Weighted average Partnership exchangeable units | 265 | — | |||||||
Total weighted average basic and diluted units outstanding | 467 | — | |||||||
Denominator - common shares: | |||||||||
Weighted average common shares - basic | — | 352.2 | |||||||
Effect of other dilutive securities | — | 7 | |||||||
Weighted average common shares - diluted | — | 359.2 | |||||||
Earnings (loss) per unit / share - basic: | |||||||||
Class A common units | $ | (0.04 | ) | — | |||||
Partnership exchangeable units | $ | (0.04 | ) | — | |||||
Common shares | — | $ | 0.17 | ||||||
Earnings (loss) per unit / share - diluted: | |||||||||
Class A common units | $ | (0.04 | ) | — | |||||
Partnership exchangeable units | $ | (0.04 | ) | — | |||||
Common shares | — | $ | 0.17 | ||||||
Anti-dilutive stock options outstanding | — | 3.6 | |||||||
Inventories_and_Other_Current_
Inventories and Other Current Assets, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories and Other Assets, Current [Abstract] | |||||||||
Inventories and Other Current Assets, net | Note 6. Inventories and Other Current Assets, net | ||||||||
Inventories and other current assets, net consist of the following: | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 22 | $ | 25.4 | |||||
Finished goods | 76.3 | 74.7 | |||||||
Total Inventory | 98.3 | 100.1 | |||||||
Deferred financing costs - current | 20.2 | 20.5 | |||||||
Refundable and prepaid income taxes | 18.3 | 18.3 | |||||||
Prepaid rent | 5.5 | 13.5 | |||||||
Prepaids and other current assets | 54.2 | 41.4 | |||||||
Inventories and other current assets, net | $ | 196.5 | $ | 193.8 | |||||
Intangible_Assets_net_and_Good
Intangible Assets, net and Goodwill | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets, net and Goodwill | Note 7. Intangible Assets, net and Goodwill | ||||||||||||||||||||||||
Intangible assets, net and goodwill consist of the following: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 750.2 | $ | (87.5 | ) | $ | 662.7 | $ | 790.4 | $ | (83.4 | ) | $ | 707 | |||||||||||
Favorable leases | 390.1 | (74.2 | ) | 315.9 | 412.7 | (62.6 | ) | 350.1 | |||||||||||||||||
Subtotal | 1,140.30 | (161.7 | ) | 978.6 | 1,203.10 | (146.0 | ) | 1,057.10 | |||||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||||
Tim Hortons brand | $ | 5,750.60 | $ | — | $ | 5,750.60 | $ | 6,217.00 | $ | — | $ | 6,217.00 | |||||||||||||
Burger King brand | 2,090.50 | — | 2,090.50 | 2,167.00 | — | 2,167.00 | |||||||||||||||||||
Subtotal | 7,841.10 | — | 7,841.10 | 8,384.00 | — | 8,384.00 | |||||||||||||||||||
Intangible assets, net | $ | 8,819.70 | $ | 9,441.10 | |||||||||||||||||||||
Goodwill | $ | 5,360.20 | $ | 5,851.30 | |||||||||||||||||||||
We recorded amortization expense on intangible assets of $20.7 million for the three months ended March 31, 2015 and $8.8 million for the same period in the prior year. The increase in amortization expense from the prior year was due to amortization recorded on intangible assets acquired in connection with the Transactions. Identifiable assets subject to amortization also decreased as a result of foreign currency translation effect. The change in the brand and goodwill balances for the three months ended March 31, 2015 was due to foreign currency translation effect. |
Other_assets_net
Other assets, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Investments, All Other Investments [Abstract] | |||||||||
Other assets, net | Note 8. Other assets, net | ||||||||
Other assets, net consist of the following: | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Derivative assets - noncurrent | $ | 570.6 | $ | 164.8 | |||||
Deferred financing costs - noncurrent | 132.8 | 138.5 | |||||||
Equity method investments | 122.4 | 124.9 | |||||||
Other assets | 111.8 | 103.3 | |||||||
Other assets, net | $ | 937.6 | $ | 531.5 | |||||
Equity_Method_Investments
Equity Method Investments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Equity Method Investments | Note 9. Equity Method Investments | ||||||||
The aggregate carrying amount of our equity method investments was $122.4 million as of March 31, 2015 and $124.9 million as of December 31, 2014 and is included as a component of other assets, net in our condensed consolidated balance sheets. | |||||||||
With respect to our Tim Hortons (TH) business, the most significant equity investment is our 50% joint-venture interest with the Wendy’s Company, which jointly holds real estate underlying Canadian combination restaurants. During the three months ended March 31, 2015, Tim Hortons received $2.4 million in cash distributions and recognized $4.9 million of contingent rent expense associated with this joint venture. | |||||||||
With respect to our Burger King (BK) business, most of the entities in which we have an equity interest own or franchise Burger King restaurants. 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: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues from affiliates: | |||||||||
Franchise royalties | $ | 20.4 | $ | 18.3 | |||||
Property revenues | 7 | 6.4 | |||||||
Franchise fees and other revenue | 1.2 | 1.1 | |||||||
Total | $ | 28.6 | $ | 25.8 | |||||
At March 31, 2015 and December 31, 2014, we had $16.4 million and $22.6 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. | |||||||||
(Income) loss from equity method investments reflects our share of investee net income or loss. During 2015, we recorded a $10.9 million noncash dilution gain included in (income) loss from equity method investments on the issuance of capital stock by BK Brasil Operacao E Assesoria A Restaurantes S.A. (“Brazil JV”), one of our equity method investees. This issuance of capital stock reduced our ownership interest in the Brazil JV from approximately 25 percent to approximately 20 percent. The dilution gain reflects an adjustment to the difference between the amount of our underlying equity in the net assets of the Brazil JV before and after the issuance of capital stock. |
Other_Accrued_Liabilities_and_
Other Accrued Liabilities and Other Liabilities, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Accrued Liabilities and Other Liabilities, net | Note 10. Other Accrued Liabilities and Other Liabilities, net | ||||||||
Other accrued liabilities and other liabilities, net consist of the following: | |||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Current: | |||||||||
Taxes payable - current | $ | 103.2 | $ | 78.8 | |||||
Accrued compensation and benefits | 24.8 | 39.4 | |||||||
Interest payable | 67 | 37.8 | |||||||
Restructuring and other provisions | 34.9 | 29.5 | |||||||
Deferred income - current | 24.8 | 27.8 | |||||||
Closed property reserve | 14.4 | 15.2 | |||||||
Dividend payable | 124.5 | 13.8 | |||||||
Other | 69.9 | 76.1 | |||||||
Other accrued liabilities | $ | 463.5 | $ | 318.4 | |||||
Non-current: | |||||||||
Unfavorable leases | $ | 323.1 | $ | 355.2 | |||||
Derivatives liabilities - noncurrent | 118.9 | 25.6 | |||||||
Taxes payable - noncurrent | 106.1 | 50.3 | |||||||
Accrued pension | 62.4 | 62.9 | |||||||
Lease liability - noncurrent | 33.3 | 35.2 | |||||||
Share-based compensation liability | 21 | 34.8 | |||||||
Deferred income - noncurrent | 27.2 | 28.1 | |||||||
Other | 51.1 | 52 | |||||||
Other liabilities, net | $ | 743.1 | $ | 644.1 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Long-Term Debt | Note 11. Long-Term Debt | ||||||||||
Long-term debt consists of the following: | |||||||||||
As of | |||||||||||
Maturity dates | March 31, | December 31, | |||||||||
2015 | 2014 | ||||||||||
2014 Term Loan Facility (a) | December 12, 2021 | $ | 6,625.90 | $ | 6,682.80 | ||||||
2014 Senior Notes | 1-Apr-22 | 2,250.00 | 2,250.00 | ||||||||
Tim Hortons Notes | various | 43.1 | 1,044.80 | ||||||||
Other | N/A | 60.5 | 65.3 | ||||||||
Total debt | 8,979.50 | 10,042.90 | |||||||||
Less: current maturities of debt | (18.5 | ) | (1,106.2 | ) | |||||||
Total long-term debt | $ | 8,961.00 | $ | 8,936.70 | |||||||
(a) | Principal face amount herein is presented net of a discount of $64.5 million at March 31, 2015 and $67.2 million at December 31, 2014. | ||||||||||
2014 Revolving Credit Facility | |||||||||||
As of March 31, 2015, we had no amounts outstanding under the 2014 Revolving Credit Facility. Funds available under the 2014 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 $125.0 million letter of credit sublimit as part of the 2014 Revolving Credit Facility, which reduces our borrowing availability under this facility by the cumulative amount of outstanding letters of credit. As of March 31, 2015, we had $4.8 million of letters of credit issued against the 2014 Revolving Credit Facility and our borrowing availability was $495.2 million. | |||||||||||
Tim Hortons Notes | |||||||||||
At the time of the Transactions, Tim Hortons had the following Canadian dollar denominated senior unsecured notes outstanding: (i) C$300.0 million aggregate principal amount of 4.20% Senior Unsecured Notes, Series 1, due June 1, 2017 (“Series 1 Notes”), (ii) C$450.0 million aggregate principal amount of 4.52% Senior Unsecured Notes, Series 2, due December 1, 2023 (“Series 2 Notes”) and (iii) C$450.0 million aggregate principal amount of 2.85% Senior Unsecured Notes, Series 3, due April 1, 2019 (“Series 3 Notes”) (collectively, the “Tim Hortons Notes”). During the three months ended March 31,2015, Tim Hortons accepted for purchase, and settled for cash, the following: (i) C$252.6 million Series 1 Notes; (ii) C$447.4 million Series 2 Notes and (iii) C$446.1 million Series 3 Notes, pursuant to tender offers made following the Transactions and rating downgrade of Tim Hortons below investment grade. At March 31, 2015, the carrying value of the following Tim Hortons Notes remain outstanding: (i) C$48.0 million Series 1 Notes; (ii) C$2.6 million Series 2 Notes and (iii) C$3.9 million Series 3 Notes. | |||||||||||
At December 31, 2014, the entire outstanding amount of the Tim Hortons Notes were classified within current liabilities as we expected to fully redeem the Tim Hortons Notes during the first quarter of 2015. At March 31, 2015, the Tim Hortons Notes that remain outstanding are classified within long-term liabilities as we intend to hold these until maturity. | |||||||||||
2014 Term Loan Facility | |||||||||||
In accordance with the terms of the 2014 Credit Agreement, on March 12, 2015, we made a mandatory prepayment on the 2014 Term Loan Facility of $42.7 million equal to the U.S. dollar equivalent of the principal amount of Tim Hortons Notes that remained outstanding after 90 days following the Closing Date. | |||||||||||
Interest Expense, net | |||||||||||
Interest expense, net consists of the following: | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
2014 Term Loan Facility | $ | 75.8 | $ | — | |||||||
2014 Senior Notes | 33.8 | — | |||||||||
Tim Hortons Notes | 1.9 | — | |||||||||
Tranche A Term Loans | — | 6.2 | |||||||||
Tranche B Term Loans | — | 6.5 | |||||||||
Interest Rate Caps | — | 2.1 | |||||||||
2010 Senior Notes | — | 19.6 | |||||||||
2011 Discount Notes | — | 12.3 | |||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | 2.6 | |||||||||
Capital lease obligations | 5.9 | 1.4 | |||||||||
Other | 0.9 | 0.2 | |||||||||
Interest income | (1.4 | ) | (0.9 | ) | |||||||
Interest expense, net | $ | 123.9 | $ | 50 | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes |
During the three months ended March 31, 2015, the Company completed a series of transactions which resulted in a change to the company’s legal and capital structure. The restructure impacts the comparability of the current period effective tax rate to prior period. | |
Our effective tax rate was 48.2% for the three months ended March 31, 2015. The higher rate during the current quarter was primarily due to the revaluation of certain monetary assets and liabilities as a result of changes in foreign currency exchange rates which had an unfavorable impact of approximately 19%. To a lesser extent the rate for the quarter was unfavorably impacted by certain non-deductible transactions costs. The remainder of the effective rate is primarily based on the mix of income from multiple tax jurisdictions. | |
Our effective tax rate was 25.7% for the three months ended March 31, 2014, primarily as a result of the mix of income from multiple tax jurisdictions. |
Common_Equity
Common Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Common Equity | Note 13. Common Equity | ||||||||||||||||
Pursuant to the terms of the partnership agreement, RBI, as the holder of Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Partnership exchangeable units are entitled to receive distributions from Partnership in an amount per unit equal to the dividend payable by RBI on each RBI common share. Additionally, if RBI proposes to redeem, repurchase or otherwise acquire any RBI common shares, the partnership agreement requires that Partnership, immediately prior to such redemption, repurchase or acquisition, make a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such redemption, repurchase or acquisition, as the case may be. | |||||||||||||||||
Each holder of a Partnership exchangeable unit is entitled to vote in respect of matters on which holders of RBI common shares are entitled to vote through one special voting share of RBI. From and after the one year anniversary of the effective date of the Transactions, the holder of Partnership exchangeable units will have the right to require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units for RBI common shares at a ratio of one common share for each Partnership exchangeable unit, subject to RBI’s right as the general partner of Partnership, in its sole discretion, to deliver a cash payment in lieu of RBI common shares. If RBI elects to make a cash payment in lieu of issuing common shares, the amount of the payment will be the weighted average trading price of the RBI common shares on the New York Stock Exchange for the 20 consecutive trading days ending on the last business day prior to the exchange date. | |||||||||||||||||
Noncontrolling Interests | |||||||||||||||||
The noncontrolling interest recognized in connection with the Restaurant VIEs of Tim Hortons was $2.3 million at March 31, 2015. | |||||||||||||||||
We adjust the net income (loss) in our condensed consolidated statement of operations to exclude the noncontrolling interests’ proportionate share of results. Also, we present the proportionate share of equity attributable to the noncontrolling interests as a separate component of equity within our condensed consolidated balance sheet. | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
The following table displays the change in the components of accumulated other comprehensive income (loss): | |||||||||||||||||
Derivatives | Pensions | Foreign Currency | Accumulated | ||||||||||||||
Translation | Other | ||||||||||||||||
Comprehensive | |||||||||||||||||
Income (Loss) | |||||||||||||||||
Balances at December 31, 2014 | $ | 11.4 | $ | (10.6 | ) | $ | (257.4 | ) | $ | (256.6 | ) | ||||||
Foreign currency translation adjustment | — | — | (1,091.8 | ) | (1,091.8 | ) | |||||||||||
Net change in fair value of derivatives, net of tax | 332.3 | — | — | 332.3 | |||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 1.5 | — | — | 1.5 | |||||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
Amortization of prior service (credits) costs, net of tax | — | (0.4 | ) | — | (0.4 | ) | |||||||||||
Amortization of actuarial (gains) losses, net of tax | — | 0.4 | — | 0.4 | |||||||||||||
Balances at March 31, 2015 | $ | 345.2 | $ | (10.7 | ) | $ | (1,349.2 | ) | $ | (1,014.7 | ) | ||||||
The following table displays the reclassifications out of accumulated other comprehensive income (loss): | |||||||||||||||||
Amounts Reclassified from AOCI | |||||||||||||||||
Affected Line Item in the | Three Months Ended March 31, | ||||||||||||||||
Details about AOCI Components | Statements of Operations | 2015 | 2014 | ||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | — | $ | (2.0 | ) | |||||||||||
Interest rate derivative contracts | Other operating expenses (income), net | (4.9 | ) | — | |||||||||||||
Forward-currency contracts | Cost of sales | 2.8 | — | ||||||||||||||
Total before tax | (2.1 | ) | (2.0 | ) | |||||||||||||
Income tax (expense) benefit | 0.6 | 0.8 | |||||||||||||||
Net of tax | $ | (1.5 | ) | $ | (1.2 | ) | |||||||||||
Defined benefit pension: | |||||||||||||||||
Amortization of prior service credits (costs) | SG&A (1) | $ | 0.7 | $ | — | ||||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | (0.7 | ) | 0.7 | |||||||||||||
Total before tax | — | 0.7 | |||||||||||||||
Income tax (expense) benefit | — | (0.2 | ) | ||||||||||||||
Net of tax | $ | — | $ | 0.5 | |||||||||||||
Total reclassifications | Net of tax | $ | (1.5 | ) | $ | (0.7 | ) | ||||||||||
-1 | Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||
Fair Value Measurements | Note 14. 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, derivatives not designated as hedging instruments, 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 March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||
at March 31, 2015 | at December 31, 2014 | ||||||||||||||||||||||||||
Balance Sheet Location | (Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||||||
Foreign currency | Trade and notes receivable, net | $ | — | $ | 9 | $ | 9 | $ | — | $ | 6 | $ | 6 | ||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||||||
Foreign currency | Inventories and other current assets, net | — | — | — | — | 2.1 | 2.1 | ||||||||||||||||||||
Foreign currency | Other assets, net | — | 480.4 | 480.4 | — | 75.9 | 75.9 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||
Foreign currency | Trade and notes receivable, net | — | 0.5 | 0.5 | — | — | — | ||||||||||||||||||||
Interest rate | Other assets, net | — | 90.2 | 90.2 | — | 88.9 | 88.9 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Inventories and other current assets, net | 1 | — | 1 | 1.1 | — | 1.1 | ||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 4.3 | — | 4.3 | 5.2 | — | 5.2 | ||||||||||||||||||||
Total assets at fair value | $ | 5.3 | $ | 580.1 | $ | 585.4 | $ | 6.3 | $ | 172.9 | $ | 179.2 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||||||
Interest rate | Other liabilities, net | $ | — | $ | 118.9 | $ | 118.9 | $ | — | $ | 25.6 | $ | 25.6 | ||||||||||||||
Other | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 1 | 1 | — | 1.1 | 1.1 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 4.3 | 4.3 | — | 5.2 | 5.2 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 124.2 | $ | 124.2 | $ | — | $ | 31.9 | $ | 31.9 | |||||||||||||||
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 March 31, 2015, the fair value of our variable rate term debt and bonds was estimated at $9.1 billion, compared to a carrying amount of $8.9 billion, net of original issue discount. At December 31, 2014, the fair value of our variable rate term debt and bonds was estimated at $10.1 billion, compared to a carrying amount of $10.0 billion, net of original issue discount. Fair value of variable rate term debt and fixed rate debt was estimated using inputs based on bid and offer prices and are Level 2 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 Burger King and Tim Hortons brand and other intangible assets. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Instruments | Note 15. 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 14 for fair value measurements of our derivative instruments. | |||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||
During November 2014, we entered into a series of six forward-starting receive-variable, pay-fixed interest rate swaps to hedge the variability in the interest payments associated with our 2014 Term Loan Facility beginning April 1, 2015, through the expiration of the sixth swap on March 31, 2021. The initial notional value of the swaps was $6,733.1 million, which initially aligned with the outstanding principal balance of the 2014 Term Loan Facility as of April 1, 2015, and will be reduced quarterly in accordance with the principal repayments of the 2014 Term Loan Facility. There are six sequential interest rate swaps to achieve the hedged position. Each year on March 31, the existing interest rate swap will expire and will be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. At inception, these interest rate swaps were designated as a cash flow hedge for hedge accounting, and as such, the effective portion of unrealized changes in market value are recorded in AOCI and are 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. During the three months ended March 31, 2015, we temporarily discontinued hedge accounting on these forward-starting interest rate swaps as a result of the mandatory prepayment of our 2014 Term Loan Facility as well as changes to forecasted cash flows. During this same period, we settled $42.7 million of these instruments equal to the amount of the mandatory prepayment of our 2014 Term Loan Facility. Of the remaining $6,690.4 million of notional outstanding at March 31, 2015, we re-designated $5,690.4 million of notional amount as a cash flow hedge for hedge accounting and $1,000.0 million of notional amount is not designated for hedge accounting and as such changes in fair value on this portion of the forward-starting interest rate swaps are recognized in current earnings. | |||||||||||||||||||
During October 2014, we also entered into a series of receive-variable, pay-fixed interest rate swaps with a combined initial notional value of $6,750.0 million that is amortized each quarter at the same rate of the 2014 Term Loan Facility. Each year in March, the existing interest rate swap will expire and will be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. To offset the cash flows associated with these interest rate swaps, in November 2014 we entered into a series of six annual mirror interest rate swaps in which we will receive-fixed and pay-variable on a total notional value of $6,750.0 million that is amortized each quarter at the same rate of the 2014 Term Loan Facility. Each year in March, the existing interest rate swap will expire and will be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. These interest rate swaps are not designated for hedge accounting and as such changes in fair value are recognized in current earnings. | |||||||||||||||||||
During 2012, we entered into 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. These swaps were settled during the fourth quarter of 2014. The forward-starting interest rate swaps fixed 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. During 2014, we discontinued hedge accounting on our forward-starting interest rate swaps as it was probable at the time that the forecasted transactions will not occur since we intended to repay our outstanding 2012 Term Loan Facility concurrently with the Transactions and did not anticipate issuing new debt in 2015 or 2016. 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 no longer probable that a forecasted transaction will 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 recorded in accumulated other comprehensive income (loss) (“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. | |||||||||||||||||||
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 by using cross-currency rate swaps. At March 31, 2015, we designated cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically offset by movements in the fair value of our cross currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. | |||||||||||||||||||
At March 31, 2015, we had outstanding cross-currency rate swaps in which we pay quarterly between 4.802%-7.002% on a tiered payment structure per annum on the Canadian dollar notional amount of C$5,641.7 million and receive quarterly between 3.948%-6.525% on a tiered payment structure per annum on the U.S. dollar notional amount of $5,000.0 million through the maturity date of March 31, 2021. At inception, these derivative instruments were not designated for hedge accounting and as such changes in fair value were recognized in current earnings. Beginning with the closing of the Transactions on December 12, 2014, we designated these cross-currency rate swaps as a hedge and began accounting for these derivative instruments as net investment hedges. | |||||||||||||||||||
At March 31, 2015, we also had outstanding a cross-currency rate swap in which we pay quarterly fixed-rate interest payments on the Euro notional amount of €$1,107.8 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $1,200.0 million through the maturity date of March 31, 2021. At inception, this cross-currency rate swap was designated as a hedge and is accounted for as a net investment hedge. | |||||||||||||||||||
During the three months ended March 31, 2015, we terminated our cross-currency rate swaps with an aggregate notional value of $315.0 million. In connection with this termination, we received $52.1 million and is reflected as a source of cash provided by investing activities in the consolidated statement of cash flows for the three months ended March 31, 2015. The net unrealized gains totaled $31.8 million as of March 31, 2015. Such amounts will remain in accumulated other comprehensive income (loss) until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At inception, these cross-currency rate swaps were designated as a hedge and were accounted for as net investment hedges. A total notional value of $115.0 million of these swaps were 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 had an original maturity of October 19, 2016. A total notional value of $200.0 million of these swaps were 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 had an original maturity of September 28, 2017. These cross-currency rate swaps also required the exchange of Euros and U.S. dollar principal payments upon maturity. | |||||||||||||||||||
Foreign Currency Exchange Contracts | |||||||||||||||||||
We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and payments, such as coffee, made by our Canadian Tim Hortons operations. At March 31, 2015, we had outstanding forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $160.8 million with maturities ranging between April 2015 and December 2015. We have designated these instruments as cash flow hedges, as of the date of the acquisition, and as such, the effective portion of unrealized changes in market value are recorded in AOCI and are 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. | |||||||||||||||||||
Interest Rate Caps | |||||||||||||||||||
During 2010, we entered into interest rate cap agreements (the “Cap Agreements”) to manage interest rate risk related to our variable debt. The six year Cap Agreements were a series of individual caplets that reset and settled quarterly with an original maturity of October 19, 2016, consistent with the payment dates of our LIBOR-based term debt. 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 AOCI. 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. | |||||||||||||||||||
During 2014 we terminated the Cap Agreements and discontinued hedge accounting for our Cap Agreements in connection with the repayment of the 2012 Term Loans, 2010 Senior Notes and 2011 Discount Notes concurrent with the Transactions. | |||||||||||||||||||
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 | Classification on Consolidated | Gain (Loss) Reclassified from | |||||||||||||||||
Other Comprehensive Income (Loss) | Statement of Operations | AOCI into Earnings | |||||||||||||||||
(effective portion) | |||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||
Interest rate caps | $ | — | $ | (0.5 | ) | Interest expense, net | $ | — | $ | (2.0 | ) | ||||||||
Interest rate swaps | $ | (83.0 | ) | $ | (55.4 | ) | Other operating expenses (income), net | $ | (4.9 | ) | $ | — | |||||||
Forward-currency contracts | $ | 9.7 | $ | — | Cost of sales | $ | 2.8 | $ | — | ||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||
Cross-currency rate swaps | $ | 454.3 | $ | (0.4 | ) | ||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||||||
Other operating expenses (income), | |||||||||||||||||||
net | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Interest rate swaps | $ | (8.5 | ) | $ | — | ||||||||||||||
Forward-currency contracts | $ | 2.1 | $ | — | |||||||||||||||
Ineffectiveness of cash flow hedges: | |||||||||||||||||||
Interest rate swaps | $ | (1.6 | ) | $ | — |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 16. Share-Based Compensation |
Share-based incentive awards are provided to employees, directors and other persons who provide services to RBI, Partnership or subsidiaries under the terms of various share-based compensation plans. | |
During the three months ended March 31, 2015, approximately 4,437,000 RBI 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 $15.5 million of share-based compensation expense in selling, general and administrative expenses for the three months ended March 31, 2015 compared to $2.8 million for the three months ended March 31, 2014. The increase in share-based compensation was mainly due to $11.1 million related to the remeasurement of liability-classified TH stock options to fair value and additional stock options granted during 2015 and 2014. |
Franchise_and_Property_Revenue
Franchise and Property Revenues | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Industries [Abstract] | |||||||||
Franchise and Property Revenues | Note 17. Franchise and Property Revenues | ||||||||
Franchise and property revenues consist of the following: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Franchise royalties | $ | 215.8 | $ | 160.3 | |||||
Property revenues | 177.1 | 53.5 | |||||||
Franchise fees and other revenue | 39.6 | 8.6 | |||||||
Franchise and property revenues | $ | 432.5 | $ | 222.4 | |||||
Other_Operating_Expenses_Incom
Other Operating Expenses (Income), net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ | 2.2 | $ | 2.8 | |||||
Litigation settlements and reserves, net | 1.2 | 0.1 | |||||||
Net losses (gains) on derivatives | 15 | — | |||||||
Net losses (gains) on foreign exchange | 15.8 | 0.4 | |||||||
Other, net | 1.3 | 1.2 | |||||||
Other operating (income) expenses, net | $ | 35.5 | $ | 4.5 | |||||
The increase in net losses (gains) on derivatives is primarily due to changes in fair value related to interest rate swaps not designated for hedge accounting entered into during the fourth quarter of 2014. | |||||||||
The increase in net losses (gains) on foreign exchange is primarily related to revaluation of cash and cash equivalent denominated balances in currencies other than the functional currency. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||
Variable Interest Entities | Note 19. Variable Interest Entities | ||||||||||||||||
VIEs for which we are the primary beneficiary | |||||||||||||||||
We consolidated 258 Restaurant VIEs where Tim Hortons is the restaurant’s primary beneficiary and Advertising VIEs. During the three months ended March 31, 2015, sales and cost of sales associated with Restaurant VIEs were $61.6 million and $60.4 million, respectively. | |||||||||||||||||
The balance sheet data associated with Restaurant VIEs and Advertising VIEs presented on a gross basis, prior to consolidation adjustments, are as follows: | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | ||||||||||||||
VIE’s | VIE’s | VIE’s | VIE’s | ||||||||||||||
Cash and cash equivalents | $ | 5.1 | $ | — | $ | 5.9 | $ | — | |||||||||
Inventories and other current assets, net | 4.7 | — | 5.2 | — | |||||||||||||
Advertising fund restricted assets - current | — | 44.4 | — | 53 | |||||||||||||
Property and equipment, net | 8.7 | 46.4 | 10.7 | 53.1 | |||||||||||||
Other assets, net | — | 0.3 | 0.2 | 0.4 | |||||||||||||
Total assets | $ | 18.5 | $ | 91.1 | $ | 22 | $ | 106.5 | |||||||||
Notes payable to Tim Hortons Inc. - current (1)(2) | $ | 7.6 | $ | 10.4 | $ | 8.9 | $ | 11.4 | |||||||||
Other accrued liabilities | 6.3 | 0.2 | 7.8 | 0.1 | |||||||||||||
Advertising fund liabilities - current | — | 40.2 | — | 45.6 | |||||||||||||
Notes payable to Tim Hortons Inc. - long-term (1)(2) | 0.3 | 39.1 | 0.3 | 45.5 | |||||||||||||
Other liabilities, net | 2.2 | 1.2 | 3.9 | 3.9 | |||||||||||||
Total liabilities | 16.4 | 91.1 | 20.9 | 106.5 | |||||||||||||
Equity of VIEs | 2.1 | — | 1.1 | — | |||||||||||||
Total liabilities and equity | $ | 18.5 | $ | 91.1 | $ | 22 | $ | 106.5 | |||||||||
-1 | Various assets and liabilities are eliminated upon the consolidation of these VIEs. | ||||||||||||||||
-2 | In fiscal 2014, the Ad Fund entered into an agreement with a Tim Hortons subsidiary for the Tim Card Revolving Credit Facility and the Tim Card Loan. These balances are eliminated upon consolidation of the Ad Fund. | ||||||||||||||||
The liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within RBI’s general assets. | |||||||||||||||||
VIEs for which we are not the primary beneficiary | |||||||||||||||||
We have investments in certain TH real estate ventures and certain BK master franchisees, which were determined to be VIEs of which we are not the primary beneficiary. We do not consolidate these entities as control is considered to be shared by both TH and the other joint owners in the case of the TH real estate ventures, or control rests with other parties in the case of BK master franchisee VIEs. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting | Note 20. Segment Reporting | ||||||||
Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. We generate revenue from four primary sources: (i) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (ii) property revenues we derive from properties we lease or sublease to our franchisees; (iii) retail sales at Company restaurants; and (iv) distribution sales exclusive to Tim Hortons related to our supply chain operations, including manufacturing, procurement, warehousing and distribution. | |||||||||
Prior to the first quarter of 2015, we had five operating segments consisting of TH and four geographical regions of BK. We completed an internal reorganization of our business following the Transactions, which resulted in two brand presidents, both of whom report to our chief operating decision maker (“CODM”), who is our Chief Executive Officer. This reorganization changed the way our CODM manages and evaluates our business. Accordingly, during the first quarter of 2015, we determined we had two operating segments: (1) TH, which includes all operations of our Tim Hortons brand and (2) BK, which includes all operations of our Burger King brand. | |||||||||
We also determined that our two operating segments represent our reportable segments. This change had no effect on our previously reported consolidated results of operations, financial position or cash flows. In connection with this change, we have reclassified historical amounts to conform to our current segment presentation. | |||||||||
Revenues by operating segment consist of the following: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
TH | $ | 682.4 | $ | — | |||||
BK | 249.6 | 240.9 | |||||||
Total revenues | $ | 932 | $ | 240.9 | |||||
Only Canada and the U.S. represented more than 10% of our total revenues during the three months ended March 31, 2015 and only the U.S. represented more than 10% of our total revenues during the three months ended March 31, 2014. Revenues in Canada and the U.S. totaled $602.2 million and $232.8 million for the three months ended March 31, 2015, respectively. Revenues in the U.S. totaled $142.8 million for the three months ended March 31, 2014. | |||||||||
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 the impact of share-based compensation and non-cash incentive compensation expense, other operating expenses (income), net, (income) loss from equity method investments, net of cash distributions received from equity method investments, and all other 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 such items, including amortization of cost of sales step-up and Tim Hortons transaction and restructuring costs. A reconciliation of segment income to net income (loss) consists of the following: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Segment Income: | |||||||||
TH | $ | 183.9 | $ | — | |||||
BK | 170.7 | 159.7 | |||||||
Adjusted EBITDA | 354.6 | 159.7 | |||||||
Share-based compensation and non-cash incentive compensation expense | 13.9 | 3.5 | |||||||
Amortization of cost of sales step-up (a) | 4.7 | — | |||||||
TH transaction and restructuring costs | 28 | — | |||||||
Impact of equity method investments (b) | (0.2 | ) | 4 | ||||||
Other operating expenses (income), net | 35.5 | 4.5 | |||||||
EBITDA | 272.7 | 147.7 | |||||||
Depreciation and amortization | 50.9 | 16.4 | |||||||
Income from operations | 221.8 | 131.3 | |||||||
Interest expense, net | 123.9 | 50 | |||||||
(Gain) loss on early extinguishment of debt | (0.3 | ) | — | ||||||
Income tax expense | 47.3 | 20.9 | |||||||
Net income (loss) | $ | 50.9 | $ | 60.4 | |||||
(a) | In connection with the Acquisition, we acquired inventory that is recorded at fair value at the time of the Acquisition. We recorded a charge equal to the difference between the fair value and historical carrying value as the underlying product sold. Based on our management judgment, these non-cash charges are not indicative of underlying business trends or operational performance. | ||||||||
(b) | Represents the impact of (i) our proportionate share of the net (income) loss recognized by our equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental_Financial_Informa
Supplemental Financial Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Supplemental Financial Information | Note 21. Supplemental Financial Information | ||||||||||||||||
On October 27, 2014, 1011778 B.C Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into a Credit Agreement (the “2014 Credit Agreement”) that provides for obligations under the 2014 Credit Facilities. On October 8, 2014 the Issuers entered into an Indenture (the “2014 Senior Notes Indenture”) with respect to the 2014 Senior Notes. | |||||||||||||||||
The 2014 Credit Agreement and the 2014 Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis. | |||||||||||||||||
The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. | |||||||||||||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
(In millions) | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,021.60 | $ | — | $ | — | $ | 1,021.60 | |||||||||
Restricted cash and cash equivalents | — | — | — | — | |||||||||||||
Trade and notes receivable, net | 361.5 | — | — | 361.5 | |||||||||||||
Inventories and other current assets, net | 196.5 | — | — | 196.5 | |||||||||||||
Advertising fund restricted assets | 44.4 | — | — | 44.4 | |||||||||||||
Deferred income taxes, net | 96.8 | — | — | 96.8 | |||||||||||||
Total current assets | 1,720.80 | — | — | 1,720.80 | |||||||||||||
Property and equipment, net | 2,400.50 | — | — | 2,400.50 | |||||||||||||
Intangible assets, net | 8,819.70 | — | — | 8,819.70 | |||||||||||||
Goodwill | 5,360.20 | — | — | 5,360.20 | |||||||||||||
Net investment in property leased to franchisees | 135.1 | — | — | 135.1 | |||||||||||||
Intercompany receivable | — | 3,000.40 | (3,000.4 | ) | — | ||||||||||||
Investment in subsidiaries | — | 3,937.80 | (3,937.8 | ) | — | ||||||||||||
Other assets, net | 937.6 | — | — | 937.6 | |||||||||||||
Total assets | $ | 19,373.90 | $ | 6,938.20 | $ | (6,938.2 | ) | $ | 19,373.90 | ||||||||
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts and drafts payable | $ | 233.9 | $ | — | $ | — | $ | 233.9 | |||||||||
Accrued advertising | 35.7 | — | — | 35.7 | |||||||||||||
Other accrued liabilities | 339 | 124.5 | — | 463.5 | |||||||||||||
Gift card liability | 125.9 | — | — | 125.9 | |||||||||||||
Advertising fund liabilities | 40.2 | — | — | 40.2 | |||||||||||||
Current portion of long term debt and capital leases | 39.1 | — | — | 39.1 | |||||||||||||
Total current liabilities | 813.8 | 124.5 | — | 938.3 | |||||||||||||
Term debt, net of current portion | 8,961.00 | — | — | 8,961.00 | |||||||||||||
Capital leases, net of current portion | 161.5 | — | — | 161.5 | |||||||||||||
Other liabilities, net | 743.1 | — | — | 743.1 | |||||||||||||
Payables to affiliates | 3,000.40 | — | (3,000.4 | ) | — | ||||||||||||
Deferred income taxes, net | 1,756.30 | — | — | 1,756.30 | |||||||||||||
Total liabilities | 15,436.10 | 124.5 | (3,000.4 | ) | 12,560.20 | ||||||||||||
Partnership preferred units | — | 3,297.00 | — | 3,297.00 | |||||||||||||
Partners’ capital: | |||||||||||||||||
Class A Common Units | — | 1,967.60 | — | 1,967.60 | |||||||||||||
Partnership exchangeable units | — | 2,561.50 | — | 2,561.50 | |||||||||||||
Common shares | 5,057.60 | — | (5,057.6 | ) | — | ||||||||||||
(Accumulated deficit) retained earnings | (107.4 | ) | — | 107.4 | — | ||||||||||||
Accumulated other comprehensive income (loss) | (1,014.7 | ) | (1,014.7 | ) | 1,014.70 | (1,014.7 | ) | ||||||||||
Total Partners’ capital/shareholders’ equity | 3,935.50 | 3,514.40 | (3,935.5 | ) | 3,514.40 | ||||||||||||
Noncontrolling interests | 2.3 | 2.3 | (2.3 | ) | 2.3 | ||||||||||||
Total equity | 3,937.80 | 3,516.70 | (3,937.8 | ) | 3,516.70 | ||||||||||||
Total liabilities, Partnership preferred units and equity | $ | 19,373.90 | $ | 6,938.20 | $ | (6,938.2 | ) | $ | 19,373.90 | ||||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
(In millions) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | 499.5 | $ | — | $ | — | $ | 499.5 | |||||||||
Franchise and property revenues | 432.5 | — | — | 432.5 | |||||||||||||
Total revenues | 932 | — | — | 932 | |||||||||||||
Cost of sales | 436.5 | — | — | 436.5 | |||||||||||||
Franchise and property expenses | 130 | — | — | 130 | |||||||||||||
Selling, general and administrative expenses | 111 | — | — | 111 | |||||||||||||
(Income) loss from equity method investments | (2.8 | ) | — | — | (2.8 | ) | |||||||||||
Other operating (income) expenses, net | 35.5 | — | — | 35.5 | |||||||||||||
Total operating costs and expenses | 710.2 | — | — | 710.2 | |||||||||||||
Income (loss) from operations | 221.8 | — | — | 221.8 | |||||||||||||
Interest expense, net | 123.9 | — | — | 123.9 | |||||||||||||
Loss on early extinguishment of debt | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Income (loss) before income taxes | 98.2 | — | — | 98.2 | |||||||||||||
Income tax expense (benefit) | 47.3 | — | — | 47.3 | |||||||||||||
Net income (loss) | 50.9 | — | — | 50.9 | |||||||||||||
Equity in earnings of consolidated subsidiaries | — | 50.9 | (50.9 | ) | — | ||||||||||||
Net income (loss) | 50.9 | 50.9 | (50.9 | ) | 50.9 | ||||||||||||
Net income attributable to noncontrolling interests | 1 | 1 | (1.0 | ) | 1 | ||||||||||||
Partnership preferred unit distributions | — | 68.7 | — | 68.7 | |||||||||||||
Net income (loss) attributable to common unitholders / shareholders | $ | 49.9 | $ | (18.8 | ) | $ | (49.9 | ) | $ | (18.8 | ) | ||||||
Total comprehensive income (loss) | $ | (707.2 | ) | $ | (707.2 | ) | $ | 707.2 | $ | (707.2 | ) | ||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
(In millions) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 50.9 | $ | 50.9 | $ | (50.9 | ) | $ | 50.9 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (50.9 | ) | 50.9 | — | ||||||||||||
Depreciation and amortization | 50.9 | — | — | 50.9 | |||||||||||||
(Gain) loss on early extinguishment of debt | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | — | — | 7 | |||||||||||||
(Income) loss from equity method investments | (2.8 | ) | — | — | (2.8 | ) | |||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 18.1 | — | — | 18.1 | |||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | — | — | |||||||||||||
Net losses (gains) on derivatives | 15 | — | — | 15 | |||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | 1.2 | — | — | 1.2 | |||||||||||||
Bad debt expense (recoveries), net | 2.2 | — | — | 2.2 | |||||||||||||
Share-based compensation expense | 15.5 | — | — | 15.5 | |||||||||||||
Amortization of costs of sales step-up | 4.7 | — | — | 4.7 | |||||||||||||
Deferred income taxes | (38.0 | ) | — | — | (38.0 | ) | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||
Reclassification of restricted cash to cash and cash equivalents | 79.2 | — | — | 79.2 | |||||||||||||
Trade and notes receivable | 55.6 | — | — | 55.6 | |||||||||||||
Inventories and other current assets | (0.8 | ) | — | — | (0.8 | ) | |||||||||||
Accounts and drafts payable | 24.4 | — | — | 24.4 | |||||||||||||
Accrued advertising | (0.2 | ) | — | — | (0.2 | ) | |||||||||||
Other accrued liabilities | 4.3 | — | — | 4.3 | |||||||||||||
Other long-term assets and liabilities | (25.1 | ) | — | (25.1 | ) | ||||||||||||
Net cash provided by operating activities | 261.8 | — | — | 261.8 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Payments for property and equipment | (29.4 | ) | — | — | (29.4 | ) | |||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | 4.5 | — | — | 4.5 | |||||||||||||
Return of investment on direct financing leases | 4 | — | — | 4 | |||||||||||||
Settlement of derivatives | 52.1 | — | — | 52.1 | |||||||||||||
Other investing activities | 1.5 | — | — | 1.5 | |||||||||||||
Net cash provided by (used for) investing activities | 32.7 | — | — | 32.7 | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayments of term debt, Senior Notes, Discount Notes and capital leases | (1,020.6 | ) | — | (1,020.6 | ) | ||||||||||||
Capital contribution from RBI Inc. | — | 2.1 | — | 2.1 | |||||||||||||
Other financing activities | 1.4 | — | — | 1.4 | |||||||||||||
Intercompany financing | 2.1 | (2.1 | ) | — | — | ||||||||||||
Net cash provided by (used for) financing activities | (1,017.1 | ) | — | — | (1,017.1 | ) | |||||||||||
Effect of exchange rates on cash and cash equivalents | (59.0 | ) | — | — | (59.0 | ) | |||||||||||
Increase (decrease) in cash and cash equivalents | (781.6 | ) | — | — | (781.6 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,803.20 | — | — | 1,803.20 | |||||||||||||
Cash and cash equivalents at end of period | $ | 1,021.60 | $ | — | $ | — | $ | 1,021.60 | |||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22. Subsequent Event |
Dividends | |
On April 2, 2015, RBI paid a cash dividend of $0.09 per RBI common share to common shareholders of record on March 3, 2015. Partnership made a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares and also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.09 per exchangeable unit to holders of record on March 3, 2015. On April 1, 2015, RBI paid a cash dividend of $1.20 per Preferred Share, for a total dividend of $82.5 million, to the holder of the Preferred Shares. The dividend on the Preferred Shares included the amount due for the period of December 12, 2014 through December 31, 2014 as well as the first calendar quarter of 2015. Partnership made a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date. | |
On April 27, 2015, the RBI Board of Directors declared a cash dividend of $0.10 per RBI common share, which will be paid on July 3, 2015 to RBI common shareholders of record on May 29, 2015. Partnership will make a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares and also make a distribution in respect of each Partnership exchangeable unit in the amount of $0.10 per exchangeable unit, and the record date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment date set forth above. On April 24, 2015, the RBI Board of Directors also declared a cash dividend of $0.98 per Preferred Share, for a total dividend of $67.5 million which will be paid to the holder of the Preferred Shares on July 2, 2015. The dividend on the Preferred Shares includes the amount due for the second calendar quarter of 2015. Partnership will make a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date. | |
Derivatives | |
On April 30, 2015, we entered into a pay-variable, receive-fixed interest rate swap with a notional value of $1,000.0 million and a maturity date of March 31, 2021 that was not designated for hedge accounting and as such changes in fair value will be recognized in earnings. This interest rate swap was entered into to offset the cash flows associated with our existing $1,000.0 million notional value receive-variable, pay-fixed interest rate swap that was dedesignated for hedge accounting during the three months ended March 31, 2015. |
Description_of_Business_and_Or1
Description of Business and Organization (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Restaurant Count for Geographic Areas | The following table outlines our restaurant count and activity, by brand and consolidated, for the periods indicated. | ||||||||||||
Tim Hortons | Burger King | System Wide | |||||||||||
Total restaurants - December 31, 2014 | 4,671 | 14,372 | 19,043 | ||||||||||
Openings | 63 | 102 | 165 | ||||||||||
Closures | (10 | ) | (87 | ) | (97 | ) | |||||||
Total restaurants - March 31, 2015 | 4,724 | 14,387 | 19,111 | ||||||||||
The_Transactions_Tables
The Transactions (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Summary of Assets Acquired and Liabilities Assumed | |||||
December 12, 2014 | |||||
Total current assets | $ | 640.7 | |||
Property and equipment | 1,778.00 | ||||
Intangible assets | 6,817.60 | ||||
Other assets, net | 92.5 | ||||
Accounts payable | (228.2 | ) | |||
Advertising fund liabilities | (49.7 | ) | |||
Other accrued liabilities | (222.3 | ) | |||
Total debt and capital lease obligations | (1,233.8 | ) | |||
Other liabilities, net | (310.3 | ) | |||
Deferred income taxes, net | (1,251.7 | ) | |||
Total identifiable net assets | 6,032.80 | ||||
Noncontrolling interest | (1.1 | ) | |||
Goodwill | 5,263.20 | ||||
Total | $ | 11,294.90 | |||
Earnings_Loss_Per_UnitShare_Ta
Earnings (Loss) Per Unit/Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Basic and Diluted Earnings Per Unit/Share | The following table summarizes the basic and diluted earnings per unit/share calculations for the periods indicated (in millions, except per unit/share amounts): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator - Basic and Diluted: | |||||||||
Net income (loss) attributable to common unitholders/shareholders | $ | (18.8 | ) | $ | 60.4 | ||||
Allocation of net income (loss) among partner interests and common shareholders: | |||||||||
Net income (loss) allocated to Class A common unitholders | $ | (8.1 | ) | $ | — | ||||
Net income (loss) allocated to Partnership exchangeable unitholders | (10.7 | ) | — | ||||||
Net income (loss) allocated to common shareholders | — | 60.4 | |||||||
Net income (loss) attributable to common unitholders / shareholders | $ | (18.8 | ) | $ | 60.4 | ||||
Denominator - Basic and Diluted partnership units: | |||||||||
Weighted average Class A common units | 202 | — | |||||||
Weighted average Partnership exchangeable units | 265 | — | |||||||
Total weighted average basic and diluted units outstanding | 467 | — | |||||||
Denominator - common shares: | |||||||||
Weighted average common shares - basic | — | 352.2 | |||||||
Effect of other dilutive securities | — | 7 | |||||||
Weighted average common shares - diluted | — | 359.2 | |||||||
Earnings (loss) per unit / share - basic: | |||||||||
Class A common units | $ | (0.04 | ) | — | |||||
Partnership exchangeable units | $ | (0.04 | ) | — | |||||
Common shares | — | $ | 0.17 | ||||||
Earnings (loss) per unit / share - diluted: | |||||||||
Class A common units | $ | (0.04 | ) | — | |||||
Partnership exchangeable units | $ | (0.04 | ) | — | |||||
Common shares | — | $ | 0.17 | ||||||
Anti-dilutive stock options outstanding | — | 3.6 |
Inventories_and_Other_Current_1
Inventories and Other Current Assets, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories and Other Assets, Current [Abstract] | |||||||||
Schedule of Inventories and Other Current Assets, Net | Inventories and other current assets, net consist of the following: | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 22 | $ | 25.4 | |||||
Finished goods | 76.3 | 74.7 | |||||||
Total Inventory | 98.3 | 100.1 | |||||||
Deferred financing costs - current | 20.2 | 20.5 | |||||||
Refundable and prepaid income taxes | 18.3 | 18.3 | |||||||
Prepaid rent | 5.5 | 13.5 | |||||||
Prepaids and other current assets | 54.2 | 41.4 | |||||||
Inventories and other current assets, net | $ | 196.5 | $ | 193.8 | |||||
Intangible_Assets_net_and_Good1
Intangible Assets, net and Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Intangible Assets, Net and Goodwill | Intangible assets, net and goodwill consist of the following: | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||
Franchise agreements | $ | 750.2 | $ | (87.5 | ) | $ | 662.7 | $ | 790.4 | $ | (83.4 | ) | $ | 707 | |||||||||||
Favorable leases | 390.1 | (74.2 | ) | 315.9 | 412.7 | (62.6 | ) | 350.1 | |||||||||||||||||
Subtotal | 1,140.30 | (161.7 | ) | 978.6 | 1,203.10 | (146.0 | ) | 1,057.10 | |||||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||||
Tim Hortons brand | $ | 5,750.60 | $ | — | $ | 5,750.60 | $ | 6,217.00 | $ | — | $ | 6,217.00 | |||||||||||||
Burger King brand | 2,090.50 | — | 2,090.50 | 2,167.00 | — | 2,167.00 | |||||||||||||||||||
Subtotal | 7,841.10 | — | 7,841.10 | 8,384.00 | — | 8,384.00 | |||||||||||||||||||
Intangible assets, net | $ | 8,819.70 | $ | 9,441.10 | |||||||||||||||||||||
Goodwill | $ | 5,360.20 | $ | 5,851.30 |
Other_assets_net_Tables
Other assets, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Investments, All Other Investments [Abstract] | |||||||||
Other Assets, Net | Other assets, net consist of the following: | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Derivative assets - noncurrent | $ | 570.6 | $ | 164.8 | |||||
Deferred financing costs - noncurrent | 132.8 | 138.5 | |||||||
Equity method investments | 122.4 | 124.9 | |||||||
Other assets | 111.8 | 103.3 | |||||||
Other assets, net | $ | 937.6 | $ | 531.5 | |||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Summary of Franchise and Property Revenue | 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: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues from affiliates: | |||||||||
Franchise royalties | $ | 20.4 | $ | 18.3 | |||||
Property revenues | 7 | 6.4 | |||||||
Franchise fees and other revenue | 1.2 | 1.1 | |||||||
Total | $ | 28.6 | $ | 25.8 | |||||
Other_Accrued_Liabilities_and_1
Other Accrued Liabilities and Other Liabilities, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Other Accrued Liabilities and Other Liabilities, Net | Other accrued liabilities and other liabilities, net consist of the following: | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Current: | |||||||||
Taxes payable - current | $ | 103.2 | $ | 78.8 | |||||
Accrued compensation and benefits | 24.8 | 39.4 | |||||||
Interest payable | 67 | 37.8 | |||||||
Restructuring and other provisions | 34.9 | 29.5 | |||||||
Deferred income - current | 24.8 | 27.8 | |||||||
Closed property reserve | 14.4 | 15.2 | |||||||
Dividend payable | 124.5 | 13.8 | |||||||
Other | 69.9 | 76.1 | |||||||
Other accrued liabilities | $ | 463.5 | $ | 318.4 | |||||
Non-current: | |||||||||
Unfavorable leases | $ | 323.1 | $ | 355.2 | |||||
Derivatives liabilities - noncurrent | 118.9 | 25.6 | |||||||
Taxes payable - noncurrent | 106.1 | 50.3 | |||||||
Accrued pension | 62.4 | 62.9 | |||||||
Lease liability - noncurrent | 33.3 | 35.2 | |||||||
Share-based compensation liability | 21 | 34.8 | |||||||
Deferred income - noncurrent | 27.2 | 28.1 | |||||||
Other | 51.1 | 52 | |||||||
Other liabilities, net | $ | 743.1 | $ | 644.1 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Summary of Long-Term Debt | Long-term debt consists of the following: | ||||||||||
As of | |||||||||||
Maturity dates | March 31, | December 31, | |||||||||
2015 | 2014 | ||||||||||
2014 Term Loan Facility (a) | December 12, 2021 | $ | 6,625.90 | $ | 6,682.80 | ||||||
2014 Senior Notes | 1-Apr-22 | 2,250.00 | 2,250.00 | ||||||||
Tim Hortons Notes | various | 43.1 | 1,044.80 | ||||||||
Other | N/A | 60.5 | 65.3 | ||||||||
Total debt | 8,979.50 | 10,042.90 | |||||||||
Less: current maturities of debt | (18.5 | ) | (1,106.2 | ) | |||||||
Total long-term debt | $ | 8,961.00 | $ | 8,936.70 | |||||||
(a) | Principal face amount herein is presented net of a discount of $64.5 million at March 31, 2015 and $67.2 million at December 31, 2014. | ||||||||||
Schedule of Interest Expense, Net | Interest Expense, net | ||||||||||
Interest expense, net consists of the following: | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
2014 Term Loan Facility | $ | 75.8 | $ | — | |||||||
2014 Senior Notes | 33.8 | — | |||||||||
Tim Hortons Notes | 1.9 | — | |||||||||
Tranche A Term Loans | — | 6.2 | |||||||||
Tranche B Term Loans | — | 6.5 | |||||||||
Interest Rate Caps | — | 2.1 | |||||||||
2010 Senior Notes | — | 19.6 | |||||||||
2011 Discount Notes | — | 12.3 | |||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | 2.6 | |||||||||
Capital lease obligations | 5.9 | 1.4 | |||||||||
Other | 0.9 | 0.2 | |||||||||
Interest income | (1.4 | ) | (0.9 | ) | |||||||
Interest expense, net | $ | 123.9 | $ | 50 | |||||||
Common_Equity_Tables
Common Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Summary of Change in the Components of Accumulated Other Comprehensive Income (Loss) | The following table displays the change in the components of accumulated other comprehensive income (loss): | ||||||||||||||||
Derivatives | Pensions | Foreign Currency | Accumulated | ||||||||||||||
Translation | Other | ||||||||||||||||
Comprehensive | |||||||||||||||||
Income (Loss) | |||||||||||||||||
Balances at December 31, 2014 | $ | 11.4 | $ | (10.6 | ) | $ | (257.4 | ) | $ | (256.6 | ) | ||||||
Foreign currency translation adjustment | — | — | (1,091.8 | ) | (1,091.8 | ) | |||||||||||
Net change in fair value of derivatives, net of tax | 332.3 | — | — | 332.3 | |||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 1.5 | — | — | 1.5 | |||||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
Amortization of prior service (credits) costs, net of tax | — | (0.4 | ) | — | (0.4 | ) | |||||||||||
Amortization of actuarial (gains) losses, net of tax | — | 0.4 | — | 0.4 | |||||||||||||
Balances at March 31, 2015 | $ | 345.2 | $ | (10.7 | ) | $ | (1,349.2 | ) | $ | (1,014.7 | ) | ||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table displays the reclassifications out of accumulated other comprehensive income (loss): | ||||||||||||||||
Amounts Reclassified from AOCI | |||||||||||||||||
Affected Line Item in the | Three Months Ended March 31, | ||||||||||||||||
Details about AOCI Components | Statements of Operations | 2015 | 2014 | ||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | — | $ | (2.0 | ) | |||||||||||
Interest rate derivative contracts | Other operating expenses (income), net | (4.9 | ) | — | |||||||||||||
Forward-currency contracts | Cost of sales | 2.8 | — | ||||||||||||||
Total before tax | (2.1 | ) | (2.0 | ) | |||||||||||||
Income tax (expense) benefit | 0.6 | 0.8 | |||||||||||||||
Net of tax | $ | (1.5 | ) | $ | (1.2 | ) | |||||||||||
Defined benefit pension: | |||||||||||||||||
Amortization of prior service credits (costs) | SG&A (1) | $ | 0.7 | $ | — | ||||||||||||
Amortization of actuarial gains (losses) | SG&A (1) | (0.7 | ) | 0.7 | |||||||||||||
Total before tax | — | 0.7 | |||||||||||||||
Income tax (expense) benefit | — | (0.2 | ) | ||||||||||||||
Net of tax | $ | — | $ | 0.5 | |||||||||||||
Total reclassifications | Net of tax | $ | (1.5 | ) | $ | (0.7 | ) | ||||||||||
-1 | Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
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, derivatives not designated as hedging instruments, 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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||
at March 31, 2015 | at December 31, 2014 | ||||||||||||||||||||||||||
Balance Sheet Location | (Level 1) | (Level 2) | Total | (Level 1) | (Level 2) | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||||||
Foreign currency | Trade and notes receivable, net | $ | — | $ | 9 | $ | 9 | $ | — | $ | 6 | $ | 6 | ||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||||||
Foreign currency | Inventories and other current assets, net | — | — | — | — | 2.1 | 2.1 | ||||||||||||||||||||
Foreign currency | Other assets, net | — | 480.4 | 480.4 | — | 75.9 | 75.9 | ||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||
Foreign currency | Trade and notes receivable, net | — | 0.5 | 0.5 | — | — | — | ||||||||||||||||||||
Interest rate | Other assets, net | — | 90.2 | 90.2 | — | 88.9 | 88.9 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||
Investments held in a rabbi trust | Inventories and other current assets, net | 1 | — | 1 | 1.1 | — | 1.1 | ||||||||||||||||||||
Investments held in a rabbi trust | Other assets, net | 4.3 | — | 4.3 | 5.2 | — | 5.2 | ||||||||||||||||||||
Total assets at fair value | $ | 5.3 | $ | 580.1 | $ | 585.4 | $ | 6.3 | $ | 172.9 | $ | 179.2 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||||||
Interest rate | Other liabilities, net | $ | — | $ | 118.9 | $ | 118.9 | $ | — | $ | 25.6 | $ | 25.6 | ||||||||||||||
Other | |||||||||||||||||||||||||||
ERP liabilities | Other accrued liabilities | — | 1 | 1 | — | 1.1 | 1.1 | ||||||||||||||||||||
ERP liabilities | Other liabilities, net | — | 4.3 | 4.3 | — | 5.2 | 5.2 | ||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | 124.2 | $ | 124.2 | $ | — | $ | 31.9 | $ | 31.9 | |||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
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 | Classification on Consolidated | Gain (Loss) Reclassified from | |||||||||||||||||
Other Comprehensive Income (Loss) | Statement of Operations | AOCI into Earnings | |||||||||||||||||
(effective portion) | |||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||
Interest rate caps | $ | — | $ | (0.5 | ) | Interest expense, net | $ | — | $ | (2.0 | ) | ||||||||
Interest rate swaps | $ | (83.0 | ) | $ | (55.4 | ) | Other operating expenses (income), net | $ | (4.9 | ) | $ | — | |||||||
Forward-currency contracts | $ | 9.7 | $ | — | Cost of sales | $ | 2.8 | $ | — | ||||||||||
Derivatives designated as net investment hedges: | |||||||||||||||||||
Cross-currency rate swaps | $ | 454.3 | $ | (0.4 | ) | ||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||||||
Other operating expenses (income), | |||||||||||||||||||
net | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Interest rate swaps | $ | (8.5 | ) | $ | — | ||||||||||||||
Forward-currency contracts | $ | 2.1 | $ | — | |||||||||||||||
Ineffectiveness of cash flow hedges: | |||||||||||||||||||
Interest rate swaps | $ | (1.6 | ) | $ | — |
Franchise_and_Property_Revenue1
Franchise and Property Revenues (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Industries [Abstract] | |||||||||
Summary of Franchise and Property Revenues | Franchise and property revenues consist of the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Franchise royalties | $ | 215.8 | $ | 160.3 | |||||
Property revenues | 177.1 | 53.5 | |||||||
Franchise fees and other revenue | 39.6 | 8.6 | |||||||
Franchise and property revenues | $ | 432.5 | $ | 222.4 | |||||
Other_Operating_Expenses_Incom1
Other Operating Expenses (Income), net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Other Operating (Income) Expenses, Net | Other operating expenses (income), net consists of the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ | 2.2 | $ | 2.8 | |||||
Litigation settlements and reserves, net | 1.2 | 0.1 | |||||||
Net losses (gains) on derivatives | 15 | — | |||||||
Net losses (gains) on foreign exchange | 15.8 | 0.4 | |||||||
Other, net | 1.3 | 1.2 | |||||||
Other operating (income) expenses, net | $ | 35.5 | $ | 4.5 | |||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||
Summary of Assets and Liabilities of Variable Interest Entities | The balance sheet data associated with Restaurant VIEs and Advertising VIEs presented on a gross basis, prior to consolidation adjustments, are as follows: | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Restaurant | Advertising | Restaurant | Advertising | ||||||||||||||
VIE’s | VIE’s | VIE’s | VIE’s | ||||||||||||||
Cash and cash equivalents | $ | 5.1 | $ | — | $ | 5.9 | $ | — | |||||||||
Inventories and other current assets, net | 4.7 | — | 5.2 | — | |||||||||||||
Advertising fund restricted assets - current | — | 44.4 | — | 53 | |||||||||||||
Property and equipment, net | 8.7 | 46.4 | 10.7 | 53.1 | |||||||||||||
Other assets, net | — | 0.3 | 0.2 | 0.4 | |||||||||||||
Total assets | $ | 18.5 | $ | 91.1 | $ | 22 | $ | 106.5 | |||||||||
Notes payable to Tim Hortons Inc. - current (1)(2) | $ | 7.6 | $ | 10.4 | $ | 8.9 | $ | 11.4 | |||||||||
Other accrued liabilities | 6.3 | 0.2 | 7.8 | 0.1 | |||||||||||||
Advertising fund liabilities - current | — | 40.2 | — | 45.6 | |||||||||||||
Notes payable to Tim Hortons Inc. - long-term (1)(2) | 0.3 | 39.1 | 0.3 | 45.5 | |||||||||||||
Other liabilities, net | 2.2 | 1.2 | 3.9 | 3.9 | |||||||||||||
Total liabilities | 16.4 | 91.1 | 20.9 | 106.5 | |||||||||||||
Equity of VIEs | 2.1 | — | 1.1 | — | |||||||||||||
Total liabilities and equity | $ | 18.5 | $ | 91.1 | $ | 22 | $ | 106.5 | |||||||||
-1 | Various assets and liabilities are eliminated upon the consolidation of these VIEs. | ||||||||||||||||
-2 | In fiscal 2014, the Ad Fund entered into an agreement with a Tim Hortons subsidiary for the Tim Card Revolving Credit Facility and the Tim Card Loan. These balances are eliminated upon consolidation of the Ad Fund. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Revenues by Operating Segment | Revenues by operating segment consist of the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues: | |||||||||
TH | $ | 682.4 | $ | — | |||||
BK | 249.6 | 240.9 | |||||||
Total revenues | $ | 932 | $ | 240.9 | |||||
Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income (loss) consists of the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Segment Income: | |||||||||
TH | $ | 183.9 | $ | — | |||||
BK | 170.7 | 159.7 | |||||||
Adjusted EBITDA | 354.6 | 159.7 | |||||||
Share-based compensation and non-cash incentive compensation expense | 13.9 | 3.5 | |||||||
Amortization of cost of sales step-up (a) | 4.7 | — | |||||||
TH transaction and restructuring costs | 28 | — | |||||||
Impact of equity method investments (b) | (0.2 | ) | 4 | ||||||
Other operating expenses (income), net | 35.5 | 4.5 | |||||||
EBITDA | 272.7 | 147.7 | |||||||
Depreciation and amortization | 50.9 | 16.4 | |||||||
Income from operations | 221.8 | 131.3 | |||||||
Interest expense, net | 123.9 | 50 | |||||||
(Gain) loss on early extinguishment of debt | (0.3 | ) | — | ||||||
Income tax expense | 47.3 | 20.9 | |||||||
Net income (loss) | $ | 50.9 | $ | 60.4 | |||||
(a) | In connection with the Acquisition, we acquired inventory that is recorded at fair value at the time of the Acquisition. We recorded a charge equal to the difference between the fair value and historical carrying value as the underlying product sold. Based on our management judgment, these non-cash charges are not indicative of underlying business trends or operational performance. | ||||||||
(b) | Represents the impact of (i) our proportionate share of the net (income) loss recognized by our equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Schedule of Condensed Consolidating Financial Statements | The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. | ||||||||||||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
(In millions) | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,021.60 | $ | — | $ | — | $ | 1,021.60 | |||||||||
Restricted cash and cash equivalents | — | — | — | — | |||||||||||||
Trade and notes receivable, net | 361.5 | — | — | 361.5 | |||||||||||||
Inventories and other current assets, net | 196.5 | — | — | 196.5 | |||||||||||||
Advertising fund restricted assets | 44.4 | — | — | 44.4 | |||||||||||||
Deferred income taxes, net | 96.8 | — | — | 96.8 | |||||||||||||
Total current assets | 1,720.80 | — | — | 1,720.80 | |||||||||||||
Property and equipment, net | 2,400.50 | — | — | 2,400.50 | |||||||||||||
Intangible assets, net | 8,819.70 | — | — | 8,819.70 | |||||||||||||
Goodwill | 5,360.20 | — | — | 5,360.20 | |||||||||||||
Net investment in property leased to franchisees | 135.1 | — | — | 135.1 | |||||||||||||
Intercompany receivable | — | 3,000.40 | (3,000.4 | ) | — | ||||||||||||
Investment in subsidiaries | — | 3,937.80 | (3,937.8 | ) | — | ||||||||||||
Other assets, net | 937.6 | — | — | 937.6 | |||||||||||||
Total assets | $ | 19,373.90 | $ | 6,938.20 | $ | (6,938.2 | ) | $ | 19,373.90 | ||||||||
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts and drafts payable | $ | 233.9 | $ | — | $ | — | $ | 233.9 | |||||||||
Accrued advertising | 35.7 | — | — | 35.7 | |||||||||||||
Other accrued liabilities | 339 | 124.5 | — | 463.5 | |||||||||||||
Gift card liability | 125.9 | — | — | 125.9 | |||||||||||||
Advertising fund liabilities | 40.2 | — | — | 40.2 | |||||||||||||
Current portion of long term debt and capital leases | 39.1 | — | — | 39.1 | |||||||||||||
Total current liabilities | 813.8 | 124.5 | — | 938.3 | |||||||||||||
Term debt, net of current portion | 8,961.00 | — | — | 8,961.00 | |||||||||||||
Capital leases, net of current portion | 161.5 | — | — | 161.5 | |||||||||||||
Other liabilities, net | 743.1 | — | — | 743.1 | |||||||||||||
Payables to affiliates | 3,000.40 | — | (3,000.4 | ) | — | ||||||||||||
Deferred income taxes, net | 1,756.30 | — | — | 1,756.30 | |||||||||||||
Total liabilities | 15,436.10 | 124.5 | (3,000.4 | ) | 12,560.20 | ||||||||||||
Partnership preferred units | — | 3,297.00 | — | 3,297.00 | |||||||||||||
Partners’ capital: | |||||||||||||||||
Class A Common Units | — | 1,967.60 | — | 1,967.60 | |||||||||||||
Partnership exchangeable units | — | 2,561.50 | — | 2,561.50 | |||||||||||||
Common shares | 5,057.60 | — | (5,057.6 | ) | — | ||||||||||||
(Accumulated deficit) retained earnings | (107.4 | ) | — | 107.4 | — | ||||||||||||
Accumulated other comprehensive income (loss) | (1,014.7 | ) | (1,014.7 | ) | 1,014.70 | (1,014.7 | ) | ||||||||||
Total Partners’ capital/shareholders’ equity | 3,935.50 | 3,514.40 | (3,935.5 | ) | 3,514.40 | ||||||||||||
Noncontrolling interests | 2.3 | 2.3 | (2.3 | ) | 2.3 | ||||||||||||
Total equity | 3,937.80 | 3,516.70 | (3,937.8 | ) | 3,516.70 | ||||||||||||
Total liabilities, Partnership preferred units and equity | $ | 19,373.90 | $ | 6,938.20 | $ | (6,938.2 | ) | $ | 19,373.90 | ||||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
(In millions) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
Revenues: | |||||||||||||||||
Sales | $ | 499.5 | $ | — | $ | — | $ | 499.5 | |||||||||
Franchise and property revenues | 432.5 | — | — | 432.5 | |||||||||||||
Total revenues | 932 | — | — | 932 | |||||||||||||
Cost of sales | 436.5 | — | — | 436.5 | |||||||||||||
Franchise and property expenses | 130 | — | — | 130 | |||||||||||||
Selling, general and administrative expenses | 111 | — | — | 111 | |||||||||||||
(Income) loss from equity method investments | (2.8 | ) | — | — | (2.8 | ) | |||||||||||
Other operating (income) expenses, net | 35.5 | — | — | 35.5 | |||||||||||||
Total operating costs and expenses | 710.2 | — | — | 710.2 | |||||||||||||
Income (loss) from operations | 221.8 | — | — | 221.8 | |||||||||||||
Interest expense, net | 123.9 | — | — | 123.9 | |||||||||||||
Loss on early extinguishment of debt | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Income (loss) before income taxes | 98.2 | — | — | 98.2 | |||||||||||||
Income tax expense (benefit) | 47.3 | — | — | 47.3 | |||||||||||||
Net income (loss) | 50.9 | — | — | 50.9 | |||||||||||||
Equity in earnings of consolidated subsidiaries | — | 50.9 | (50.9 | ) | — | ||||||||||||
Net income (loss) | 50.9 | 50.9 | (50.9 | ) | 50.9 | ||||||||||||
Net income attributable to noncontrolling interests | 1 | 1 | (1.0 | ) | 1 | ||||||||||||
Partnership preferred unit distributions | — | 68.7 | — | 68.7 | |||||||||||||
Net income (loss) attributable to common unitholders / shareholders | $ | 49.9 | $ | (18.8 | ) | $ | (49.9 | ) | $ | (18.8 | ) | ||||||
Total comprehensive income (loss) | $ | (707.2 | ) | $ | (707.2 | ) | $ | 707.2 | $ | (707.2 | ) | ||||||
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
(In millions) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 50.9 | $ | 50.9 | $ | (50.9 | ) | $ | 50.9 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (50.9 | ) | 50.9 | — | ||||||||||||
Depreciation and amortization | 50.9 | — | — | 50.9 | |||||||||||||
(Gain) loss on early extinguishment of debt | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | — | — | 7 | |||||||||||||
(Income) loss from equity method investments | (2.8 | ) | — | — | (2.8 | ) | |||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 18.1 | — | — | 18.1 | |||||||||||||
Amortization of defined benefit pension and postretirement items | — | — | — | — | |||||||||||||
Net losses (gains) on derivatives | 15 | — | — | 15 | |||||||||||||
Net losses (gains) on refranchisings and dispositions of assets | 1.2 | — | — | 1.2 | |||||||||||||
Bad debt expense (recoveries), net | 2.2 | — | — | 2.2 | |||||||||||||
Share-based compensation expense | 15.5 | — | — | 15.5 | |||||||||||||
Amortization of costs of sales step-up | 4.7 | — | — | 4.7 | |||||||||||||
Deferred income taxes | (38.0 | ) | — | — | (38.0 | ) | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||
Reclassification of restricted cash to cash and cash equivalents | 79.2 | — | — | 79.2 | |||||||||||||
Trade and notes receivable | 55.6 | — | — | 55.6 | |||||||||||||
Inventories and other current assets | (0.8 | ) | — | — | (0.8 | ) | |||||||||||
Accounts and drafts payable | 24.4 | — | — | 24.4 | |||||||||||||
Accrued advertising | (0.2 | ) | — | — | (0.2 | ) | |||||||||||
Other accrued liabilities | 4.3 | — | — | 4.3 | |||||||||||||
Other long-term assets and liabilities | (25.1 | ) | — | (25.1 | ) | ||||||||||||
Net cash provided by operating activities | 261.8 | — | — | 261.8 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Payments for property and equipment | (29.4 | ) | — | — | (29.4 | ) | |||||||||||
Proceeds from refranchisings, disposition of assets and restaurant closures | 4.5 | — | — | 4.5 | |||||||||||||
Return of investment on direct financing leases | 4 | — | — | 4 | |||||||||||||
Settlement of derivatives | 52.1 | — | — | 52.1 | |||||||||||||
Other investing activities | 1.5 | — | — | 1.5 | |||||||||||||
Net cash provided by (used for) investing activities | 32.7 | — | — | 32.7 | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayments of term debt, Senior Notes, Discount Notes and capital leases | (1,020.6 | ) | — | (1,020.6 | ) | ||||||||||||
Capital contribution from RBI Inc. | — | 2.1 | — | 2.1 | |||||||||||||
Other financing activities | 1.4 | — | — | 1.4 | |||||||||||||
Intercompany financing | 2.1 | (2.1 | ) | — | — | ||||||||||||
Net cash provided by (used for) financing activities | (1,017.1 | ) | — | — | (1,017.1 | ) | |||||||||||
Effect of exchange rates on cash and cash equivalents | (59.0 | ) | — | — | (59.0 | ) | |||||||||||
Increase (decrease) in cash and cash equivalents | (781.6 | ) | — | — | (781.6 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,803.20 | — | — | 1,803.20 | |||||||||||||
Cash and cash equivalents at end of period | $ | 1,021.60 | $ | — | $ | — | $ | 1,021.60 | |||||||||
Description_of_Business_and_Or2
Description of Business and Organization - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Restaurants | Restaurants | |
Basis Of Presentation [Line Items] | ||
Number of restaurants in operation | 19,111 | 19,043 |
Number of countries in which company and franchise restaurants operated | 100 | |
Percentage of franchised Tim Hortons and Burger King restaurants | 100.00% | |
Republic of Ireland and United Kingdom [Member] | ||
Basis Of Presentation [Line Items] | ||
Excluded licensed locations from systemwide restaurant progression | 255 |
Description_of_Business_and_Or3
Description of Business and Organization - Restaurant Count for Geographic Areas (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Restaurants | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 19,043 |
Openings | 165 |
Closures | -97 |
Restaurant count at end of period | 19,111 |
Tim Hortons [Member] | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 4,671 |
Openings | 63 |
Closures | -10 |
Restaurant count at end of period | 4,724 |
Burger King [Member] | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 14,372 |
Openings | 102 |
Closures | -87 |
Restaurant count at end of period | 14,387 |
The_Transactions_Additional_In
The Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 12, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Partnership preferred units, shares issued | 68,530,939 | 68,530,939 | 68,530,939 |
Class A Common Units [Member] | |||
Business Acquisition [Line Items] | |||
Class A common units, units issued | 202,006,067 | 202,006,067 | 202,006,067 |
Class B Exchangeable Limited Partnership Units [Member] | |||
Business Acquisition [Line Items] | |||
Partnership exchangeable units, units issued | 265,041,783 | 265,041,783 | 265,041,783 |
Tim Hortons [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration | $11,294.90 |
The_Transactions_Summary_of_As
The Transactions - Summary of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 12, 2014 |
In Millions, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $5,360.20 | $5,851.30 | |
Tim Hortons [Member] | |||
Business Acquisition [Line Items] | |||
Total current assets | 640.7 | ||
Property and equipment | 1,778 | ||
Intangible assets | 6,817.60 | ||
Other assets, net | 92.5 | ||
Accounts payable | -228.2 | ||
Advertising fund liabilities | -49.7 | ||
Other accrued liabilities | -222.3 | ||
Total debt and capital lease obligations | -1,233.80 | ||
Other liabilities, net | -310.3 | ||
Deferred income taxes, net | -1,251.70 | ||
Total identifiable net assets | 6,032.80 | ||
Noncontrolling interest | -1.1 | ||
Goodwill | 5,263.20 | ||
Total | $11,294.90 |
Earnings_Loss_Per_UnitShare_Ad
Earnings (Loss) Per Unit/Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Burger King Worldwide [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Ownership percentage | 100.00% | |
Class B Exchangeable Limited Partnership Units [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Net income (loss) allocation percentage | 56.70% | |
Partnership exchangeable units, units issued | 265 | |
Burger King Worldwide [Member] | ||
Earnings Per Share Disclosure [Line Items] | ||
Conversion basis | One-for-one |
Earnings_Loss_Per_UnitShare_Ba
Earnings (Loss) Per Unit/Share - Basic and Diluted Earnings Per Unit/Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income (loss) attributable to common unitholders/shareholders | ($18.80) | $60.40 |
Net income (loss) attributable to common unitholders / shareholders | -18.8 | 60.4 |
Denominator - Basic and Diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 467 | |
Denominator - common shares: | ||
Weighted average common shares - basic | 352.2 | |
Effect of other dilutive securities | 7 | |
Weighted average common shares - diluted: | 359.2 | |
Earnings (loss) per unit / share-basic | ||
Earnings (loss) per unit / share-basic | $0.17 | |
Earnings (loss) per unit / share - diluted: | ||
Earnings (loss) per unit / share - diluted | $0.17 | |
Anti-dilutive stock options outstanding | 3.6 | |
Issued Common Shares [Member] | ||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income (loss) attributable to common unitholders/shareholders | 60.4 | |
Net income (loss) attributable to common unitholders / shareholders | 60.4 | |
Earnings (loss) per unit / share-basic | ||
Earnings (loss) per unit / share-basic | $0.17 | |
Earnings (loss) per unit / share - diluted: | ||
Earnings (loss) per unit / share - diluted | $0.17 | |
Class A Common Units [Member] | ||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income (loss) attributable to common unitholders/shareholders | -8.1 | |
Net income (loss) attributable to common unitholders / shareholders | -8.1 | |
Denominator - Basic and Diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 202 | |
Denominator - common shares: | ||
Weighted average common shares - basic | 202 | |
Weighted average common shares - diluted: | 202 | |
Earnings (loss) per unit / share-basic | ||
Earnings (loss) per unit / share-basic | ($0.04) | |
Earnings (loss) per unit / share - diluted: | ||
Earnings (loss) per unit / share - diluted | ($0.04) | |
Class B Exchangeable Limited Partnership Units [Member] | ||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income (loss) attributable to common unitholders/shareholders | -10.7 | |
Net income (loss) attributable to common unitholders / shareholders | ($10.70) | |
Denominator - Basic and Diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 265 | |
Denominator - common shares: | ||
Weighted average common shares - basic | 265 | |
Weighted average common shares - diluted: | 265 | |
Earnings (loss) per unit / share-basic | ||
Earnings (loss) per unit / share-basic | ($0.04) | |
Earnings (loss) per unit / share - diluted: | ||
Earnings (loss) per unit / share - diluted | ($0.04) |
Inventories_and_Other_Current_2
Inventories and Other Current Assets, Net - Schedule of Inventories and Other Current Assets, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories and Other Assets, Current [Abstract] | ||
Raw materials | $22 | $25.40 |
Finished goods | 76.3 | 74.7 |
Total Inventory | 98.3 | 100.1 |
Deferred financing costs - current | 20.2 | 20.5 |
Refundable and prepaid income taxes | 18.3 | 18.3 |
Prepaid rent | 5.5 | 13.5 |
Prepaids and other current assets | 54.2 | 41.4 |
Inventories and other current assets, net | $196.50 | $193.80 |
Recovered_Sheet1
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 12, 2014 |
In Millions, unless otherwise specified | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | $1,140.30 | $1,203.10 | |
Goodwill | 5,360.20 | 5,851.30 | |
Identifiable assets, accumulated amortization | -161.7 | -146 | |
Indefinite lived intangible assets , Net | 7,841.10 | 8,384 | |
Identifiable assets, Net | 978.6 | 1,057.10 | |
Intangible assets, net | 8,819.70 | 9,441.10 | |
Tim Hortons [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Goodwill | 5,263.20 | ||
Tim Hortons [Member] | Trade Names [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets , Net | 5,750.60 | 6,217 | |
Burger King [Member] | Trade Names [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets , Net | 2,090.50 | 2,167 | |
Franchise Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | 750.2 | 790.4 | |
Identifiable assets, accumulated amortization | -87.5 | -83.4 | |
Identifiable assets, Net | 662.7 | 707 | |
Favorable Leases [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | 390.1 | 412.7 | |
Identifiable assets, accumulated amortization | -74.2 | -62.6 | |
Identifiable assets, Net | $315.90 | $350.10 |
Recovered_Sheet2
Intangible Assets, Net and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $20.70 | $8.80 |
Other_Assets_Net_Other_Assets_
Other Assets, Net - Other Assets, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories and Other Assets, Current [Abstract] | ||
Derivative assets - noncurrent | $570.60 | $164.80 |
Deferred financing costs - noncurrent | 132.8 | 138.5 |
Equity method investments | 122.4 | 124.9 |
Other assets | 111.8 | 103.3 |
Other assets, net | $937.60 | $531.50 |
Equity_Method_Investments_Addi
Equity Method Investments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $122.40 | $124.90 |
Tim Hortons [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Joint-venture interest | 50.00% | |
Cash distributions | 2.4 | |
Contingent rent expense | 4.9 | |
BK Brasil Operacao E Assesoria A Restaurantes S.A. ("Brazil JV") [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Noncash dilution gain on the issuance of stock | 10.9 | |
Ownership interest in equity method investee before additional capital stock issued | 25.00% | |
Ownership interest in equity method investee after additional capital stock issued | 20.00% | |
Equity Method Investee [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable from equity method investments | $16.40 | $22.60 |
Equity_Method_Investments_Summ
Equity Method Investments - Summary of Franchise and Property Revenue (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from affiliates: | ||
Franchise royalties | $215.80 | $160.30 |
Property revenues | 177.1 | 53.5 |
Franchise fees and other revenue | 39.6 | 8.6 |
Total | 432.5 | 222.4 |
Affiliates [Member] | ||
Revenues from affiliates: | ||
Franchise royalties | 20.4 | 18.3 |
Property revenues | 7 | 6.4 |
Franchise fees and other revenue | 1.2 | 1.1 |
Total | $28.60 | $25.80 |
Other_Accrued_Liabilities_and_2
Other Accrued Liabilities and Other Liabilities, Net - Schedule of Other Accrued Liabilities and Other Liabilities, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current: | ||
Taxes payable - current | $103.20 | $78.80 |
Accrued compensation and benefits | 24.8 | 39.4 |
Interest payable | 67 | 37.8 |
Restructuring and other provisions | 34.9 | 29.5 |
Deferred income - current | 24.8 | 27.8 |
Closed property reserve | 14.4 | 15.2 |
Dividend payable | 124.5 | 13.8 |
Other | 69.9 | 76.1 |
Other accrued liabilities | 463.5 | 318.4 |
Non-current: | ||
Unfavorable leases | 323.1 | 355.2 |
Derivatives liabilities - noncurrent | 118.9 | 25.6 |
Taxes payable - noncurrent | 106.1 | 50.3 |
Accrued pension | 62.4 | 62.9 |
Lease liability - noncurrent | 33.3 | 35.2 |
Share-based compensation liability | 21 | 34.8 |
Deferred income - noncurrent | 27.2 | 28.1 |
Other | 51.1 | 52 |
Other liabilities, net | $743.10 | $644.10 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Other | $60.50 | $65.30 |
Total debt | 8,979.50 | 10,042.90 |
Total debt | 8,979.50 | 10,042.90 |
Less: current maturities of debt | -18.5 | -1,106.20 |
Total long-term debt | 8,961 | 8,936.70 |
2014 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity dates | 12-Dec-21 | |
2014 Term Loan Facility | 6,625.90 | 6,682.80 |
2014 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity dates | 1-Apr-22 | |
2014 Senior Notes | 2,250 | 2,250 |
Tim Hortons Notes [Member] | ||
Debt Instrument [Line Items] | ||
Tim Hortons Notes | $43.10 | $1,044.80 |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) (2014 Term Loan Facility [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
2014 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt instrument, discount | $64.50 | $67.20 |
LongTerm_Debt_2014_Revolving_C
Long-Term Debt - 2014 Revolving Credit Facility - Additional Information (Detail) (2014 Revolving Credit Facility [Member], USD $) | Mar. 31, 2015 |
2014 Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Amount outstanding at the credit facility | $0 |
Letter of credit sublimit as part of revolving credit facility | 125,000,000 |
Amount withdrawn from revolving credit facility | 4,800,000 |
Remaining borrowing capacity | $495,200,000 |
LongTerm_Debt_Tim_Hortons_Note
Long-Term Debt - Tim Hortons Notes - Additional Information (Detail) (CAD) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Senior Notes [Member] | Series 1 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Aggregate principal amount of debt issued | 300 |
Senior convertible note, maturity date | 1-Jun-17 |
Senior convertible note, stated interest rate | 4.20% |
Proceeds from Issuance of Senior Long-term Debt | 252.6 |
Senior Notes [Member] | Series 2 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Aggregate principal amount of debt issued | 450 |
Senior convertible note, maturity date | 1-Dec-23 |
Senior convertible note, stated interest rate | 4.52% |
Proceeds from Issuance of Senior Long-term Debt | 447.4 |
Senior Notes [Member] | Series 3 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Aggregate principal amount of debt issued | 450 |
Senior convertible note, maturity date | 1-Apr-19 |
Senior convertible note, stated interest rate | 2.85% |
Proceeds from Issuance of Senior Long-term Debt | 446.1 |
Tim Hortons Notes [Member] | Series 1 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Notes outstanding | 48 |
Tim Hortons Notes [Member] | Series 2 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Notes outstanding | 2.6 |
Tim Hortons Notes [Member] | Series 3 Notes [Member] | |
Line of Credit Facility [Line Items] | |
Notes outstanding | 3.9 |
LongTerm_Debt_2014_Term_Loan_F
Long-Term Debt - 2014 Term Loan Facility - Additional Information (Detail) (2014 Term Loan Facility [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 12, 2015 |
2014 Term Loan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Prepayment on term loan facility | $42.70 |
Credit facility prepayment terms | The principal amount of Tim Hortons Notes that remained outstanding after 90 days following the Closing Date |
LongTerm_Debt_Schedule_of_Inte
Long-Term Debt - Schedule of Interest Expense, Net (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Amortization of deferred financing costs and debt issuance discount | $7 | $2.60 |
Capital lease obligations | 5.9 | 1.4 |
Other | 0.9 | 0.2 |
Interest income | -1.4 | -0.9 |
Interest expense, net | 123.9 | 50 |
Interest Rate Caps [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 2.1 | |
2014 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 75.8 | |
2014 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 33.8 | |
Tim Hortons Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 1.9 | |
Tranche A Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 6.2 | |
Tranche B Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 6.5 | |
2010 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | 19.6 | |
2011 Discount Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | $12.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 48.20% | 25.70% |
Unfavorable impact of change in foreign currency exchange rates on effective tax rate | 19.00% |
Common_Equity_Additional_Infor
Common Equity - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Equity [Abstract] | |
Noncontrolling interest recognized in connection with VIE restaurants | $2.30 |
Common_Equity_Summary_of_Chang
Common Equity - Summary of Change in the Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | ($256.60) | |
Foreign currency translation adjustment | -1,091.80 | -0.6 |
Net change in fair value of derivatives, net of tax | 332.3 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 1.5 | 1.2 |
Pension and post-retirement benefit plans, net of tax | -0.1 | |
Amortization of prior service (credits) costs, net of tax | -0.4 | |
Amortization of actuarial (gains) losses, net of tax | 0.4 | -0.5 |
Accumulated other comprehensive income (loss), Ending balance | -1,014.70 | |
Gains (Losses) on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | 11.4 | |
Net change in fair value of derivatives, net of tax | 332.3 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 1.5 | 1.2 |
Accumulated other comprehensive income (loss), Ending balance | 345.2 | |
Defined Benefit Pension [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | -10.6 | |
Pension and post-retirement benefit plans, net of tax | -0.1 | |
Amortization of prior service (credits) costs, net of tax | -0.4 | |
Amortization of actuarial (gains) losses, net of tax | 0.4 | |
Accumulated other comprehensive income (loss), Ending balance | -10.7 | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | -257.4 | |
Foreign currency translation adjustment | -1,091.80 | |
Accumulated other comprehensive income (loss), Ending balance | ($1,349.20) |
Common_Equity_Reclassification
Common Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Income tax (expense) benefit | $0.60 | $0.80 | ||
Total reclassifications, Net of tax | -1.5 | -1.2 | ||
Total reclassifications, Net of tax | -1.5 | -0.7 | ||
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | -2.1 | -2 | ||
Derivative contracts, Income tax (expense) benefit | 0.6 | 0.8 | ||
Total reclassifications, Net of tax | -1.5 | -1.2 | ||
Gains (Losses) on Cash Flow Hedges [Member] | Interest Expense [Member] | Interest Rate Derivative Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | -2 | |||
Gains (Losses) on Cash Flow Hedges [Member] | Other Expense [Member] | Interest Rate Derivative Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | -4.9 | |||
Gains (Losses) on Cash Flow Hedges [Member] | Cost of Sales [Member] | Forward-currency Contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | 2.8 | |||
Defined Benefit Pension [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service credits (costs), SG&A | 0.7 | [1] | ||
Amortization of actuarial gains (losses), SG&A | -0.7 | [1] | 0.7 | [1] |
Defined benefit pension plan expense before tax | 0.7 | |||
Defined benefit, Income tax (expense) benefit | -0.2 | |||
Total reclassifications, Net of tax | $0.50 | |||
[1] | Refers to selling, general and administrative expenses in the audited condensed consolidated statements of operations. |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $585.40 | $179.20 |
Total liabilities at fair value | 124.2 | 31.9 |
Other [Member] | Investments Held in a Rabbi Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 4.3 | 5.2 |
Inventories and Other Current Assets [Member] | Investments Held in a Rabbi Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1 | 1.1 |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 90.2 | 88.9 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency [Member] | Trade and Notes Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0.5 | |
Executive Retirement Plan [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 4.3 | 5.2 |
Executive Retirement Plan [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1 | 1.1 |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 118.9 | 25.6 |
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 9 | 6 |
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 480.4 | 75.9 |
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Inventories and Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2.1 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5.3 | 6.3 |
Level 1 [Member] | Other [Member] | Investments Held in a Rabbi Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 4.3 | 5.2 |
Level 1 [Member] | Inventories and Other Current Assets [Member] | Investments Held in a Rabbi Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1 | 1.1 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 580.1 | 172.9 |
Total liabilities at fair value | 124.2 | 31.9 |
Level 2 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 90.2 | 88.9 |
Level 2 [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency [Member] | Trade and Notes Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0.5 | |
Level 2 [Member] | Executive Retirement Plan [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 4.3 | 5.2 |
Level 2 [Member] | Executive Retirement Plan [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1 | 1.1 |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 118.9 | 25.6 |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 9 | 6 |
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 480.4 | 75.9 |
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Inventories and Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $2.10 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Fair value of variable rate term debt and bonds | $9,100,000,000 | $10,100,000,000 |
Carrying amount, net of original issue discount | $8,979,500,000 | $10,042,900,000 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2014 | Oct. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2012 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 12, 2015 | Mar. 31, 2015 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | Maximum [Member] | Fixed Income Interest Rate [Member] | Variable Income Interest Rate [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Cross Currency Interest Rate Contract [Member] | Interest Rate Caps [Member] | |
Contract | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Designated as Cash Flow Hedge [Member] | Derivatives Not Designated as Hedging Instruments [Member] | 2014 Term Loan Facility [Member] | 2014 Term Loan Facility [Member] | Floating Rate Debt Beginning 2015 [Member] | Floating Rate Debt Beginning 2016 [Member] | USD ($) | Terminated Derivatives [Member] | Fixed Income Interest Rate [Member] | Fixed Income Interest Rate [Member] | Canada, Dollars | Canada, Dollars | Canada, Dollars | Canada, Dollars | United States of America, Dollars | United States of America, Dollars | ||
Interest_Rate_Swaps | Interest_Rate_Swaps | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | CAD | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||
Commodity Hedging Contracts And Other Derivatives [Line Items] | |||||||||||||||||||||||||
Number of forward starting receive-variable | 6 | ||||||||||||||||||||||||
Cross-currency rate swaps, maturity date | 28-Sep-17 | 31-Mar-21 | 31-Mar-21 | 1-Apr-15 | 31-Mar-21 | 19-Oct-16 | |||||||||||||||||||
Derivative interest rate | 1.00% | ||||||||||||||||||||||||
Foreign currency forward contract notional amount | $160,800,000 | $115,000,000 | $200,000,000 | $6,733,100,000 | $6,750,000,000 | $6,690,400,000 | $2,300,000,000 | $5,690,400,000 | $1,000,000,000 | $1,000,000,000 | $1,300,000,000 | $315,000,000 | $1,200,000,000 | € 1,107,800,000 | $5,000,000,000 | 5,641,700,000 | |||||||||
Number of sequential interest rate swap | 6 | ||||||||||||||||||||||||
Settlement of derivative notional amount | -42,700,000 | ||||||||||||||||||||||||
Number of mirror interest rate swaps | 6 | ||||||||||||||||||||||||
Number of forward starting interest rate swaps | 3 | ||||||||||||||||||||||||
Outstanding cross currency rate swaps | 4.80% | 7.00% | 3.95% | 6.53% | |||||||||||||||||||||
Settlement of derivatives | -52,100,000 | 52,100,000 | |||||||||||||||||||||||
Unrealized gain loss, derivatives | $31,800,000 | ||||||||||||||||||||||||
Forward interest swaps maturity period | 6 years |
Derivative_Instruments_Quantit
Derivative Instruments - Quantitative Disclosures of Derivative Instruments (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) reclassified from AOCI into Earnings | ($15) | ($2) |
Gain (Loss) Recognized in Other operating expenses (income), net | -15 | |
Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Other operating expenses (income), net, Ineffectiveness of cash flow hedges | -1.6 | |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Other operating expenses (income), net | -8.5 | |
Derivatives Not Designated as Hedging Instruments [Member] | Forward-currency Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Recognized in Other operating expenses (income), net | 2.1 | |
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) | -0.5 | |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Expense [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) reclassified from AOCI into Earnings | -2 | |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) recognized in other comprehensive income (loss) | -83 | -55.4 |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Operating Income (Expense) [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) reclassified from AOCI into Earnings | -4.9 | |
Derivatives Designated as Cash Flow Hedges [Member] | Forward-currency Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) recognized in other comprehensive income (loss) | 9.7 | |
Derivatives Designated as Cash Flow Hedges [Member] | Forward-currency Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) reclassified from AOCI into Earnings | 2.8 | |
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) | $454.30 | ($0.40) |
Sharebased_Compensation_Additi
Share-based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock options granted | 4,437,000 | |
Stock options, vesting period | 5 years | |
Stock options, expiration period | 10 years | |
Share-based compensation expense | $15.50 | $2.80 |
Share-based compensation related to the remeasurement of liability | 11.1 | |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $15.50 | $2.80 |
Franchise_and_Property_Revenue2
Franchise and Property Revenues - Summary of Franchise and Property Revenues (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Franchisor Revenue [Abstract] | ||
Franchise royalties | $215.80 | $160.30 |
Property revenues | 177.1 | 53.5 |
Franchise fees and other revenue | 39.6 | 8.6 |
Franchise and property revenues | $432.50 | $222.40 |
Other_Operating_Income_Expense
Other Operating (Income) Expenses, Net - Other Operating (Income) Expenses, Net (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $2.20 | $2.80 |
Litigation settlements and reserves, net | 1.2 | 0.1 |
Net losses (gains) on derivatives | 15 | |
Net losses (gains) on foreign exchange | 15.8 | 0.4 |
Other, net | 1.3 | 1.2 |
Other operating (income) expenses, net | $35.50 | $4.50 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Sales | $499.50 | $18.50 |
Cost of sales | 436.5 | 15.5 |
Restaurant VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Sales | 61.6 | |
Cost of sales | $60.40 | |
Number of consolidated restaurants | 258 |
Variable_Interest_Entities_Sum
Variable Interest Entities - Summary of Assets and Liabilities of Variable Interest Entities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $1,021.60 | $1,803.20 | $863.10 | $786.90 | ||
Inventories and other current assets, net | 196.5 | 193.8 | ||||
Advertising fund restricted assets - current | 44.4 | 53 | ||||
Property and equipment, net | 2,400.50 | 2,539.60 | ||||
Other assets, net | 937.6 | 531.5 | ||||
Total assets | 19,373.90 | 21,164 | ||||
Other accrued liabilities | 69.9 | 76.1 | ||||
Advertising fund liabilities - current | 40.2 | 45.6 | ||||
Other liabilities, net | 743.1 | 644.1 | ||||
Total liabilities | 12,560.20 | 13,543.40 | ||||
Total liabilities and equity | 19,373.90 | 21,164 | ||||
VIEs [Member] | Restaurant VIEs [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 5.1 | 5.9 | ||||
Inventories and other current assets, net | 4.7 | 5.2 | ||||
Property and equipment, net | 8.7 | 10.7 | ||||
Other assets, net | 0.2 | |||||
Total assets | 18.5 | 22 | ||||
Notes payable to Tim Hortons Inc. - current | 7.6 | [1],[2] | 8.9 | [1],[2] | ||
Other accrued liabilities | 6.3 | 7.8 | ||||
Notes payable to Tim Hortons Inc. - long-term | 0.3 | [1],[2] | 0.3 | [1],[2] | ||
Other liabilities, net | 2.2 | 3.9 | ||||
Total liabilities | 16.4 | 20.9 | ||||
Equity of VIEs | 2.1 | 1.1 | ||||
Total liabilities and equity | 18.5 | 22 | ||||
VIEs [Member] | Advertising VIEs [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Advertising fund restricted assets - current | 44.4 | 53 | ||||
Property and equipment, net | 46.4 | 53.1 | ||||
Other assets, net | 0.3 | 0.4 | ||||
Total assets | 91.1 | 106.5 | ||||
Notes payable to Tim Hortons Inc. - current | 10.4 | [1],[2] | 11.4 | [1],[2] | ||
Other accrued liabilities | 0.2 | 0.1 | ||||
Advertising fund liabilities - current | 40.2 | 45.6 | ||||
Notes payable to Tim Hortons Inc. - long-term | 39.1 | [1],[2] | 45.5 | [1],[2] | ||
Other liabilities, net | 1.2 | 3.9 | ||||
Total liabilities | 91.1 | 106.5 | ||||
Total liabilities and equity | $91.10 | $106.50 | ||||
[1] | Various assets and liabilities are eliminated upon the consolidation of these VIEs. | |||||
[2] | In fiscal 2014, the Ad Fund entered into an agreement with a Tim Hortons subsidiary for the Tim Card Revolving Credit Facility and the Tim Card Loan. These balances are eliminated upon consolidation of the Ad Fund. |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Region | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Number of operating segments | 2 | ||
Number of brand presidents | 2 | ||
Number of reportable segments | 2 | ||
Revenues | $932 | $240.90 | |
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 232.8 | 142.8 | |
Canada [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 602.2 | ||
Tim Hortons [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Number of operating segments | 5 | ||
Revenues | 682.4 | ||
Burger King [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Number of geographical regions | 4 | ||
Revenues | $249.60 | $240.90 |
Segment_Reporting_Revenues_by_
Segment Reporting - Revenues by Operating Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue, Major Customer [Line Items] | ||
Total revenues | $932 | $240.90 |
Tim Hortons [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 682.4 | |
Burger King [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $249.60 | $240.90 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Income to Net Income (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Amortization of cost of sales step-up | $4.70 | |||
Impact of equity method investments | -2.8 | 4 | ||
Other operating expenses (income), net | 35.5 | 4.5 | ||
EBITDA | 272.7 | 147.7 | ||
Depreciation and amortization | 50.9 | 16.4 | ||
Income from operations | 221.8 | 131.3 | ||
Interest expense, net | 123.9 | 50 | ||
(Gain) loss on early extinguishment of debt | -0.3 | |||
Income tax expense | 47.3 | 20.9 | ||
Net income (loss) | 50.9 | 60.4 | ||
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 354.6 | 159.7 | ||
Operating Segments [Member] | Tim Hortons [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 183.9 | |||
Operating Segments [Member] | Burger King [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 170.7 | 159.7 | ||
Unallocated Management G&A [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Share-based compensation and non-cash incentive compensation expense | 13.9 | 3.5 | ||
Amortization of cost of sales step-up | 4.7 | [1] | ||
Impact of equity method investments | -0.2 | [2] | 4 | [2] |
Other operating expenses (income), net | 35.5 | 4.5 | ||
Unallocated Management G&A [Member] | Tim Hortons [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
TH transaction and restructuring costs | $28 | |||
[1] | In connection with the Acquisition, we acquired inventory that is recorded at fair value at the time of the Acquisition. We recorded a charge equal to the difference between the fair value and historical carrying value as the underlying product sold. Based on our management judgment, these non-cash charges are not indicative of underlying business trends or operational performance. | |||
[2] | Represents the impact of (i) our proportionate share of the net (income) loss recognized by our equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $1,021.60 | $1,803.20 | $863.10 | $786.90 |
Restricted cash and cash equivalents | 0 | 84.5 | ||
Trade and notes receivable, net | 361.5 | 439.9 | ||
Inventories and other current assets, net | 196.5 | 193.8 | ||
Advertising fund restricted assets | 44.4 | 53 | ||
Deferred income taxes, net | 96.8 | 85.6 | ||
Total current assets | 1,720.80 | 2,660 | ||
Property and equipment, net | 2,400.50 | 2,539.60 | ||
Intangible assets, net | 8,819.70 | 9,441.10 | ||
Goodwill | 5,360.20 | 5,851.30 | ||
Net investment in property leased to franchisees | 135.1 | 140.5 | ||
Other assets, net | 937.6 | 531.5 | ||
Total assets | 19,373.90 | 21,164 | ||
Current liabilities: | ||||
Accounts and drafts payable | 233.9 | 223 | ||
Accrued advertising | 35.7 | 25.9 | ||
Other accrued liabilities | 463.5 | 318.4 | ||
Gift card liability | 125.9 | 187 | ||
Advertising fund liabilities | 40.2 | 45.6 | ||
Current portion of long term debt and capital leases | 39.1 | 1,124.90 | ||
Total current liabilities | 938.3 | 1,924.80 | ||
Term debt, net of current portion | 8,961 | 8,936.70 | ||
Capital leases, net of current portion | 161.5 | 175.7 | ||
Other liabilities, net | 743.1 | 644.1 | ||
Deferred income taxes, net | 1,756.30 | 1,862.10 | ||
Total liabilities | 12,560.20 | 13,543.40 | ||
Partnership preferred units | 3,297 | 3,297 | ||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | -1,014.70 | -256.6 | ||
Total Partners' capital | 3,514.40 | 4,322.30 | ||
Noncontrolling interests | 2.3 | 1.3 | ||
Total equity | 3,516.70 | 4,323.60 | ||
Total liabilities, Partnership preferred units and equity | 19,373.90 | 21,164 | ||
Scenario, Adjustment [Member] | ||||
Current liabilities: | ||||
Total current liabilities | 938.3 | |||
Borrowers [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,021.60 | 1,803.20 | ||
Restricted cash and cash equivalents | 0 | |||
Trade and notes receivable, net | 361.5 | |||
Inventories and other current assets, net | 196.5 | |||
Advertising fund restricted assets | 44.4 | |||
Deferred income taxes, net | 96.8 | |||
Total current assets | 1,720.80 | |||
Property and equipment, net | 2,400.50 | |||
Intangible assets, net | 8,819.70 | |||
Goodwill | 5,360.20 | |||
Net investment in property leased to franchisees | 135.1 | |||
Other assets, net | 937.6 | |||
Total assets | 19,373.90 | |||
Current liabilities: | ||||
Accounts and drafts payable | 233.9 | |||
Accrued advertising | 35.7 | |||
Other accrued liabilities | 339 | |||
Gift card liability | 125.9 | |||
Advertising fund liabilities | 40.2 | |||
Current portion of long term debt and capital leases | 39.1 | |||
Total current liabilities | 813.8 | |||
Term debt, net of current portion | 8,961 | |||
Capital leases, net of current portion | 161.5 | |||
Other liabilities, net | 743.1 | |||
Payables to affiliates | 3,000.40 | |||
Deferred income taxes, net | 1,756.30 | |||
Total liabilities | 15,436.10 | |||
Partners' capital: | ||||
Common shares | 5,057.60 | |||
(Accumulated deficit) retained earnings | -107.4 | |||
Accumulated other comprehensive income (loss) | -1,014.70 | |||
Total Partners' capital | 3,935.50 | |||
Noncontrolling interests | 2.3 | |||
Total equity | 3,937.80 | |||
Total liabilities, Partnership preferred units and equity | 19,373.90 | |||
Restaurant Brands International Limited Partnership [Member] | ||||
Current assets: | ||||
Restricted cash and cash equivalents | 0 | |||
Intercompany receivable | 3,000.40 | |||
Investment in subsidiaries | 3,937.80 | |||
Total assets | 6,938.20 | |||
Current liabilities: | ||||
Other accrued liabilities | 124.5 | |||
Total current liabilities | 124.5 | |||
Total liabilities | 124.5 | |||
Partnership preferred units | 3,297 | |||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | -1,014.70 | |||
Total Partners' capital | 3,514.40 | |||
Noncontrolling interests | 2.3 | |||
Total equity | 3,516.70 | |||
Total liabilities, Partnership preferred units and equity | 6,938.20 | |||
Class A Common Units [Member] | ||||
Partners' capital: | ||||
Class A Common Units | 1,967.60 | 1,982.90 | ||
Total equity | 1,967.60 | 1,982.90 | ||
Class A Common Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Class A Common Units | 1,967.60 | |||
Class B Exchangeable Limited Partnership Units [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 2,561.50 | 2,596 | ||
Total equity | 2,561.50 | 2,596 | ||
Class B Exchangeable Limited Partnership Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 2,561.50 | |||
Eliminations [Member] | ||||
Current assets: | ||||
Restricted cash and cash equivalents | 0 | |||
Intercompany receivable | -3,000.40 | |||
Investment in subsidiaries | -3,937.80 | |||
Total assets | -6,938.20 | |||
Current liabilities: | ||||
Payables to affiliates | -3,000.40 | |||
Total liabilities | -3,000.40 | |||
Partners' capital: | ||||
Common shares | -5,057.60 | |||
(Accumulated deficit) retained earnings | 107.4 | |||
Accumulated other comprehensive income (loss) | 1,014.70 | |||
Total Partners' capital | -3,935.50 | |||
Noncontrolling interests | -2.3 | |||
Total equity | -3,937.80 | |||
Total liabilities, Partnership preferred units and equity | ($6,938.20) |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Sales | $499.50 | $18.50 |
Franchise and property revenues | 432.5 | 222.4 |
Total revenues | 932 | 240.9 |
Cost of sales | 436.5 | 15.5 |
Franchise and property expenses | 130 | 37.4 |
Selling, general and administrative expenses | 111 | 48.2 |
(Income) loss from equity method investments | -2.8 | 4 |
Other operating (income) expenses, net | 35.5 | 4.5 |
Total operating costs and expenses | 710.2 | 109.6 |
Income (loss) from operations | 221.8 | 131.3 |
Interest expense, net | 123.9 | 50 |
Loss on early extinguishment of debt | -0.3 | |
Income (loss) before income taxes | 98.2 | 81.3 |
Income tax expense (benefit) | 47.3 | 20.9 |
Net income (loss) | 50.9 | |
Net income (loss) | 50.9 | 60.4 |
Net income attributable to noncontrolling interests | 1 | |
Partnership preferred unit distributions | 68.7 | |
Net income (loss) attributable to common unitholders / shareholders | -18.8 | 60.4 |
Total comprehensive income (loss) | -707.2 | 26.1 |
Borrowers [Member] | ||
Revenues: | ||
Sales | 499.5 | |
Franchise and property revenues | 432.5 | |
Total revenues | 932 | |
Cost of sales | 436.5 | |
Franchise and property expenses | 130 | |
Selling, general and administrative expenses | 111 | |
(Income) loss from equity method investments | -2.8 | |
Other operating (income) expenses, net | 35.5 | |
Total operating costs and expenses | 710.2 | |
Income (loss) from operations | 221.8 | |
Interest expense, net | 123.9 | |
Loss on early extinguishment of debt | -0.3 | |
Income (loss) before income taxes | 98.2 | |
Income tax expense (benefit) | 47.3 | |
Net income (loss) | 50.9 | |
Net income (loss) | 50.9 | |
Net income attributable to noncontrolling interests | 1 | |
Net income (loss) attributable to common unitholders / shareholders | 49.9 | |
Total comprehensive income (loss) | -707.2 | |
Restaurant Brands International Limited Partnership [Member] | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 50.9 | |
Net income (loss) | 50.9 | |
Net income attributable to noncontrolling interests | 1 | |
Partnership preferred unit distributions | 68.7 | |
Net income (loss) attributable to common unitholders / shareholders | -18.8 | |
Total comprehensive income (loss) | -707.2 | |
Eliminations [Member] | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | -50.9 | |
Net income (loss) | -50.9 | |
Net income attributable to noncontrolling interests | -1 | |
Net income (loss) attributable to common unitholders / shareholders | -49.9 | |
Total comprehensive income (loss) | $707.20 |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $50.90 | $60.40 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 50.9 | 16.4 |
(Gain) loss on early extinguishment of debt | -0.3 | |
Amortization of deferred financing costs and debt issuance discount | 7 | 14.9 |
(Income) loss from equity method investments | -2.8 | 4 |
Loss (gain) on remeasurement of foreign denominated transactions | 18.1 | 0.5 |
Amortization of defined benefit pension and postretirement items | 0 | -0.8 |
Net losses (gains) on derivatives | 15 | 2 |
Net losses (gains) on refranchisings and dispositions of assets | 1.2 | 1.8 |
Bad debt expense (recoveries), net | 2.2 | 0.5 |
Share-based compensation expense | 15.5 | 2.8 |
Amortization of costs of sales step-up | 4.7 | |
Deferred income taxes | -38 | 9.1 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Reclassification of restricted cash to cash and cash equivalents | 79.2 | |
Trade and notes receivable | 55.6 | 12.6 |
Inventories and other current assets | -0.8 | 6 |
Accounts and drafts payable | 24.4 | 9.9 |
Accrued advertising | -0.2 | -11.7 |
Other accrued liabilities | 4.3 | 1.4 |
Other long-term assets and liabilities | -25.1 | -4.5 |
Net cash provided by operating activities | 261.8 | 125.3 |
Cash flows from investing activities: | ||
Payments for property and equipment | -29.4 | -3.4 |
Proceeds from refranchisings, disposition of assets and restaurant closures | 4.5 | -4.5 |
Return of investment on direct financing leases | 4 | 3.9 |
Settlement of derivatives | 52.1 | |
Other investing activities | 1.5 | -0.2 |
Net cash provided by (used for) investing activities | 32.7 | -4.2 |
Cash flows from financing activities: | ||
Repayments of term debt, Senior Notes, Discount Notes and capital leases | -1,020.60 | -19.1 |
Capital contribution from RBI Inc. | 2.1 | |
Other financing activities | 1.4 | |
Net cash provided by (used for) financing activities | -1,017.10 | -43.7 |
Effect of exchange rates on cash and cash equivalents | -59 | -1.2 |
Increase (decrease) in cash and cash equivalents | -781.6 | 76.2 |
Cash and cash equivalents at beginning of period | 1,803.20 | 786.9 |
Cash and cash equivalents at end of period | 1,021.60 | 863.1 |
Borrowers [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 50.9 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 50.9 | |
(Gain) loss on early extinguishment of debt | -0.3 | |
Amortization of deferred financing costs and debt issuance discount | 7 | |
(Income) loss from equity method investments | -2.8 | |
Loss (gain) on remeasurement of foreign denominated transactions | 18.1 | |
Amortization of defined benefit pension and postretirement items | 0 | |
Net losses (gains) on derivatives | 15 | |
Net losses (gains) on refranchisings and dispositions of assets | 1.2 | |
Bad debt expense (recoveries), net | 2.2 | |
Share-based compensation expense | 15.5 | |
Amortization of costs of sales step-up | 4.7 | |
Deferred income taxes | -38 | |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Reclassification of restricted cash to cash and cash equivalents | 79.2 | |
Trade and notes receivable | 55.6 | |
Inventories and other current assets | -0.8 | |
Accounts and drafts payable | 24.4 | |
Accrued advertising | -0.2 | |
Other accrued liabilities | 4.3 | |
Other long-term assets and liabilities | -25.1 | |
Net cash provided by operating activities | 261.8 | |
Cash flows from investing activities: | ||
Payments for property and equipment | -29.4 | |
Proceeds from refranchisings, disposition of assets and restaurant closures | 4.5 | |
Return of investment on direct financing leases | 4 | |
Settlement of derivatives | 52.1 | |
Other investing activities | 1.5 | |
Net cash provided by (used for) investing activities | 32.7 | |
Cash flows from financing activities: | ||
Repayments of term debt, Senior Notes, Discount Notes and capital leases | -1,020.60 | |
Other financing activities | 1.4 | |
Intercompany financing | 2.1 | |
Net cash provided by (used for) financing activities | -1,017.10 | |
Effect of exchange rates on cash and cash equivalents | -59 | |
Increase (decrease) in cash and cash equivalents | -781.6 | |
Cash and cash equivalents at beginning of period | 1,803.20 | |
Cash and cash equivalents at end of period | 1,021.60 | |
Restaurant Brands International Limited Partnership [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 50.9 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | -50.9 | |
Amortization of defined benefit pension and postretirement items | 0 | |
Cash flows from financing activities: | ||
Capital contribution from RBI Inc. | 2.1 | |
Intercompany financing | -2.1 | |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | -50.9 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 50.9 | |
Amortization of defined benefit pension and postretirement items | $0 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Apr. 02, 2015 | Apr. 01, 2015 | Apr. 30, 2015 | Apr. 27, 2015 | Apr. 24, 2015 | |
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share | $0.09 | |||||
Receive-Variable, Pay-Fixed Interest Rate Swap [Member] | Designated as Cash Flow Hedge [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notional value of interest rate swap | $1,000,000,000 | |||||
Class B Exchangeable Limited Partnership Units [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend declared | $0.09 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per preferred share | $1.20 | |||||
Dividend payable record date | 3-Mar-15 | |||||
Dividends paid on preferred share | 82,500,000 | |||||
Subsequent Event [Member] | Pay-Variable, Receive-Fixed Interest Rate Swap [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notional value of interest rate swap | 1,000,000,000 | |||||
Derivative maturity date | 31-Mar-21 | |||||
Subsequent Event [Member] | Class A Common Units [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share | 0.09 | |||||
Dividend payable record date | 29-May-15 | |||||
Cash dividend declared | $0.10 | |||||
Dividend to be paid date | 3-Jul-15 | |||||
Subsequent Event [Member] | Class B Exchangeable Limited Partnership Units [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share | 0.09 | |||||
Cash dividend declared | $0.10 | |||||
Subsequent Event [Member] | Preferred Class A [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend payable record date | 2-Jul-15 | |||||
Cash dividend declared by board | $0.98 | |||||
Dividends Payable preferred share | $67,500,000 |