Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 20, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | QSP | |
Entity Registrant Name | Restaurant Brands International Limited Partnership | |
Entity Central Index Key | 1,618,755 | |
Current Fiscal Year End Date | --12-31 | |
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 ($) $ in Millions | Dec. 31, 2014 |
Current assets: | |
Cash and cash equivalents | $ 1,803.2 |
Restricted cash and cash equivalents | 84.5 |
Trade and notes receivable, net of allowance of $14.8 million and $20.1 million, respectively | 440.7 |
Inventories and other current assets, net | 191.7 |
Advertising fund restricted assets | 53 |
Deferred income taxes, net | 87.2 |
Total current assets | 2,660.3 |
Property and equipment, net of accumulated depreciation of $285.8 million and $226.7 million, respectively | 2,539.6 |
Intangible assets, net | 9,441.1 |
Goodwill | 5,844.4 |
Net investment in property leased to franchisees | 140.5 |
Other assets, net | 531.5 |
Total assets | 21,157.4 |
Current liabilities: | |
Accounts and drafts payable | 223 |
Accrued advertising | 25.9 |
Other accrued liabilities | 321.1 |
Gift card liability | 187 |
Advertising fund liabilities | 45.6 |
Current portion of long term debt and capital leases | 1,124.9 |
Total current liabilities | 1,927.5 |
Term debt, net of current portion | 8,936.7 |
Capital leases, net of current portion | 175.7 |
Other liabilities, net | 634.7 |
Deferred income taxes, net | 1,865.1 |
Total liabilities | 13,539.7 |
Partnership preferred units; $43.775848 par value; 68,530,939 units authorized, issued and outstanding at June 30, 2015 and December 31, 2014 | 3,297 |
Partners' capital: | |
Accumulated other comprehensive income (loss) | (256.6) |
Total Partners' capital | 4,319.4 |
Noncontrolling interests | 1.3 |
Total equity | 4,320.7 |
Total liabilities and equity | 21,157.4 |
Class A Common Units [Member] | |
Partners' capital: | |
Class A common units - 202,006,067 units issued and outstanding at June 30, 2015 and December 31, 2014 | 1,981.4 |
Total equity | 1,981.4 |
Class B Exchangeable Limited Partnership Units [Member] | |
Partners' capital: | |
Partnership exchangeable units - 265,041,783 units issued and outstanding at June 30, 2015 and December 31, 2014 | 2,594.6 |
Total equity | $ 2,594.6 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Allowances for trade and notes receivable | $ 14.8 | $ 20.1 |
Property and equipment, accumulated depreciation | $ 285.8 | $ 226.7 |
Partnership preferred units, par value | $ 43.775848 | $ 43.775848 |
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 Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Revenues: | ||
Sales | $ 18.3 | $ 36.8 |
Franchise and property revenues | 242.9 | 465.3 |
Total revenues | 261.2 | 502.1 |
Cost of sales | 15.7 | 31.2 |
Franchise and property expenses | 35.7 | 73.1 |
Selling, general and administrative expenses | 47 | 95.2 |
(Income) loss from equity method investments | 5.9 | 9.9 |
Other operating expenses (income), net | 5.4 | 9.9 |
Total operating costs and expenses | 109.7 | 219.3 |
Income from operations | 151.5 | 282.8 |
Interest expense, net | 50.6 | 100.6 |
Income (loss) before income taxes | 100.9 | 182.2 |
Income tax expense | 25.8 | 46.7 |
Net income (loss) | 75.1 | 135.5 |
Net income (loss) attributable to common unitholders / shareholders | $ 75.1 | $ 135.5 |
Earnings (loss) per unit / share - basic (Note 5): | ||
Earning per unit basic | $ 0.21 | $ 0.38 |
Earnings (loss) per unit / share - diluted (Note 5): | ||
Earning per unit diluted | $ 0.21 | $ 0.38 |
Weighted average units / shares outstanding - basic (Note 5): | ||
Weighted average units / shares outstanding - basic | 352.3 | 352.3 |
Weighted average units / shares outstanding - diluted (Note 5): | ||
Weighted average units / shares outstanding - diluted | 359.4 | 359.3 |
Dividends per common share | $ 0.07 | $ 0.14 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 90.8 | $ 75.1 | $ 143.8 | $ 135.5 |
Foreign currency translation adjustment | 193.1 | (9.1) | (898.7) | (9.7) |
Net change in fair value of net investment hedges, net of tax of $25.2, $(0.9), $(42.9) and $(0.7) | (160.1) | 1.2 | 226.1 | 1 |
Net change in fair value of cash flow hedges, net of tax of $1.9, $20.7, $21.3 and $42.4 | (5.1) | (32.7) | (59) | (66.9) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(6.7), $(0.8), $(7.3) and $(1.6) | 17.5 | 1.4 | 19 | 2.6 |
Pension and post-retirement benefit plans, net of tax of $0, $0, $0.1 and $0 | (0.1) | |||
Amortization of prior service (credits) costs, net of tax of $0.3, $0.4, $0.6 and $0.6 | (0.5) | (0.4) | (0.9) | (0.9) |
Amortization of actuarial (gains) losses, net of tax of $(0.3), $0, $(0.6) and $0 | 0.5 | (0.1) | 0.9 | (0.1) |
Other comprehensive income (loss) | 45.4 | (39.7) | (712.7) | (74) |
Comprehensive income (loss) | $ 136.2 | $ 35.4 | $ (568.9) | $ 61.5 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on change in fair value of investment hedges | $ 25.2 | $ (0.9) | $ (42.9) | $ (0.7) |
Tax effect on change in fair value of interest rate caps/swaps | 1.9 | 20.7 | 21.3 | 42.4 |
Tax effect on amounts reclassified to earnings of cash flow hedges | (6.7) | (0.8) | (7.3) | (1.6) |
Tax effect on pension and post-retirement benefit plans | 0 | 0 | 0.1 | 0 |
Tax effect on amortization prior service costs | 0.3 | 0.4 | 0.6 | 0.6 |
Tax effect on amortization of actuarial losses | $ (0.3) | $ 0 | $ (0.6) | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Millions, $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Class A Common Units [Member] | Class B Exchangeable Limited Partnership Units [Member] |
Beginning Balance at Dec. 31, 2014 | $ 4,320.7 | $ (256.6) | $ 1.3 | $ 1,981.4 | $ 2,594.6 |
Beginning Balance, shares at Dec. 31, 2014 | 202 | 265 | |||
Distributions declared on Class A common units ($0.19 per unit) | (38.4) | $ (38.4) | |||
Distributions declared on partnership exchangeable units ($0.19 per unit) | (50.4) | $ (50.4) | |||
Preferred unit distributions | (136.2) | (59) | (77.2) | ||
Capital contribution from RBI Inc. | 19.4 | 19.4 | |||
Restaurant VIE distributions | (1.5) | (1.5) | |||
Net income (loss) | 143.8 | 2 | 61.4 | 80.4 | |
Other comprehensive income (loss) | (712.7) | (712.7) | |||
Ending Balance at Jun. 30, 2015 | $ 3,544.7 | $ (969.3) | $ 1.8 | $ 1,964.8 | $ 2,547.4 |
Ending Balance, shares at Jun. 30, 2015 | 202 | 265 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Shareholders' Equity (unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2015$ / shares | |
Class A Common Units [Member] | |
Distributions declared on Class A common units, per unit | $ 0.19 |
Class B Exchangeable Limited Partnership Units [Member] | |
Distributions declared on partnership exchangeable units, per unit | $ 0.19 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 143.8 | $ 135.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 102.1 | 32.2 |
(Gain) loss on early extinguishment of debt | 39.6 | |
Amortization of deferred financing costs and debt issuance discount | 15.3 | 30.1 |
(Income) loss from equity method investments | 2.5 | 9.9 |
Loss (gain) on remeasurement of foreign denominated transactions | 27.5 | (2.3) |
Amortization of defined benefit pension and postretirement items | (0.1) | (1.6) |
Net losses (gains) on derivatives | 46.6 | 4.2 |
Net losses (gains) on refranchisings and dispositions of assets | (0.6) | 3.6 |
Bad debt expense (recoveries), net | 0.7 | (0.2) |
Share-based compensation expense | 22.5 | 6 |
Acquisition accounting impact on cost of sales | 0.8 | |
Deferred income taxes | (92.5) | 5 |
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 | 59.9 | 11.4 |
Inventories and other current assets | 5 | 7.7 |
Accounts and drafts payable | 39.3 | (8.4) |
Accrued advertising | 6.2 | (13.1) |
Other accrued liabilities | 35.9 | 4.8 |
Other long-term assets and liabilities | (25.5) | (11.7) |
Net cash provided by operating activities | 508.2 | 213.1 |
Cash flows from investing activities: | ||
Payments for property and equipment | (57) | (7.2) |
Proceeds (payments) from refranchisings, disposition of assets and restaurant closures | 10.7 | (6.8) |
Return of investment on direct financing leases | 8 | 7.7 |
Settlement of derivatives, net | 11.5 | |
Other investing activities, net | 2.3 | (0.3) |
Net cash provided by (used for) investing activities | (24.5) | (6.6) |
Cash flows from financing activities: | ||
Proceeds from Senior Notes | 1,250 | |
Repayments of term debt, Tim Hortons Notes and capital leases | (2,592.4) | (38.3) |
Payment of financing costs | (81.3) | |
Distributions on partnership units | (124.5) | |
Dividends paid on common stock | (49.3) | |
Capital contributions from RBI Inc. | 0.5 | |
Other financing activities | (0.7) | |
Net cash provided by (used for) financing activities | (1,548.4) | (87.6) |
Effect of exchange rates on cash and cash equivalents | (52.8) | (1.1) |
Increase (decrease) in cash and cash equivalents | (1,117.5) | 117.8 |
Cash and cash equivalents at beginning of period | 1,803.2 | 786.9 |
Cash and cash equivalents at end of period | 685.7 | 904.7 |
Supplemental cash flow disclosures: | ||
Interest paid | 224.8 | 68 |
Income taxes paid | 79.6 | $ 19 |
Non-cash investing and financing activities: | ||
Acquisition of property with capital lease obligations | $ 7.9 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 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. Partnership is the indirect parent of The TDL Group Corp. (f/k/a Tim Hortons ULC and Tim Hortons Inc.), a limited company existing under the laws of British Columbia that franchises and operates quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons® Burger King® 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 124 312 436 Closures (19 ) (156 ) (175 ) Total restaurants – June 30, 2015 4,776 14,528 19,304 Excluded from the table above are licensed Tim Hortons locations in the Republic of Ireland and the United Kingdom. All references to USD or $ are to United States dollars, and all references to C$ are to Canadian dollars.c |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 and Canadian securities regulatory authorities 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 owned 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 (“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 (“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 six months ended June 30, 2015, amounts previously classified as restricted cash were reclassified to cash and cash equivalents as a result of the restructuring of banking arrangements 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 condensed consolidated statement of cash flows for the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 RBI indirectly acquiring Burger King Worldwide and Tim Hortons (the “Acquisition”) for total consideration paid of $11,294.9 million. 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. During the three months ended June 30, 2015, we adjusted our preliminary estimate of the fair value of net assets acquired. The allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed remains preliminary and reflects various revised fair value estimates and analyses as of June 30, 2015, including work performed by third-party valuation specialists. The preliminary purchase price allocation as of June 30, 2015 is presented in the tables below and remains subject to revision as valuations are finalized and we complete our review of the valuations. December 12, Total current assets $ 643.8 Property and equipment 1,778.0 Intangible assets 6,817.6 Other assets, net 89.1 Accounts payable (228.2 ) Advertising fund liabilities (49.7 ) Other accrued liabilities (224.7 ) Total debt and capital lease obligations (1,233.8 ) Other liabilities, net (300.7 ) Deferred income taxes, net (1,251.7 ) Total identifiable net assets 6,039.7 Noncontrolling interest (1.1 ) Goodwill 5,256.3 Total consideration $ 11,294.9 The adjustments to the preliminary estimate of net assets acquired resulted in a corresponding $6.9 million decrease in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price: Increase (Decrease) Change in: Total current assets $ (3.2 ) Other assets 3.4 Other accrued liabilities 2.4 Other liabilities, net (9.5 ) Total decrease in goodwill $ (6.9 ) All purchase price allocation adjustments have been reflected on a retrospective basis as of the Closing Date. Additionally, our results of operations were retrospectively adjusted to reflect the effects of these revisions to the preliminary purchase price allocation. We expect to continue to obtain information to assist in determining the fair value of the net assets acquired as of the Closing Date during the measurement period. Measurement period adjustments that we determine to be material will be applied retrospectively to the Closing Date. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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. In July 2015, the FASB officially decided to defer for one year the effective date of the new revenue standard. As such, this guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is allowed as of the original effective date, which was for fiscal years, and interim periods within those years, beginning after December 15, 2016. 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 Unit_Share
Earnings (Loss) Per Unit/Share | 6 Months Ended |
Jun. 30, 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 Partnership’s Class A common units (“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 Class B exchangeable limited partnership units (“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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 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 Class A common units and Partnership exchangeable units. Basic and diluted earnings (loss) per share are as follows (in millions, except per share information): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator - Basic and Diluted: Net income (loss) attributable to common unitholders/shareholders $ 22.3 $ 75.1 $ 5.6 $ 135.5 Allocation of net income (loss) among partner interests and common shareholders: Net income (loss) allocated to Class A common unitholders $ 9.6 $ — $ 2.4 $ — Net income (loss) allocated to Partnership exchangeable unitholders 12.7 — 3.2 — Net income (loss) allocated to common shareholders — 75.1 — 135.5 Net income (loss) attributable to common unitholders / shareholders $ 22.3 $ 75.1 $ 5.6 $ 135.5 Denominator - Basic and Diluted partnership units: Weighted average Class A common units 202.0 — 202.0 — Weighted average Partnership exchangeable units 265.0 — 265.0 — Total weighted average basic and diluted units outstanding 467.0 — 467.0 — Denominator - common shares: Weighted average common shares - basic — 352.3 — 352.3 Effect of other dilutive securities — 7.1 — 7.0 Weighted average common shares - diluted — 359.4 — 359.3 Earnings (loss) per unit / share - basic: Class A common units $ 0.05 — $ 0.01 — Partnership exchangeable units $ 0.05 — $ 0.01 — Common shares — $ 0.21 — $ 0.38 Earnings (loss) per unit / share - diluted: Class A common units $ 0.05 — $ 0.01 — Partnership exchangeable units $ 0.05 — $ 0.01 — Common shares — $ 0.21 — $ 0.38 Anti-dilutive stock options outstanding — 3.6 — 3.6 |
Inventories and Other Current A
Inventories and Other Current Assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [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 June 30, December 31, Raw materials $ 28.5 $ 26.3 Finished goods 63.2 71.8 Total Inventory 91.7 98.1 Deferred financing costs - current 31.5 20.5 Refundable and prepaid income taxes 18.3 18.3 Prepaid rent 6.4 13.4 Prepaids and other current assets 49.0 41.4 Inventories and other current assets, net $ 196.9 $ 191.7 |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 6 Months Ended |
Jun. 30, 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 June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Identifiable assets subject to amortization: Franchise agreements $ 758.2 $ (96.1 ) $ 662.1 $ 790.4 $ (83.4 ) $ 707.0 Favorable leases 394.1 (88.6 ) 305.5 412.7 (62.6 ) 350.1 Subtotal 1,152.3 (184.7 ) 967.6 1,203.1 (146.0 ) 1,057.1 Indefinite lived intangible assets: Tim Hortons $ 5,817.4 $ — $ 5,817.4 $ 6,217.0 $ — $ 6,217.0 Burger King 2,113.1 — 2,113.1 2,167.0 — 2,167.0 Subtotal 7,930.5 — 7,930.5 8,384.0 — 8,384.0 Intangible assets, net $ 8,898.1 $ 9,441.1 Goodwill $ 5,437.9 $ 5,844.4 We recorded amortization expense on intangible assets of $21.4 million for the three months ended June 30, 2015 and $8.8 million for the same period in the prior year. We recorded amortization expense on intangible assets of $42.1 million for the six months ended June 30, 2015 and $17.6 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 six months ended June 30, 2015 was due to foreign currency translation effect. |
Other assets, net
Other assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Other assets, net | Note 8. Other assets, net Other assets, net consist of the following: As of June 30, December 31, Derivative assets - noncurrent $ 327.2 $ 164.8 Deferred financing costs - noncurrent 172.8 138.5 Equity method investments 114.3 124.9 Other assets 152.9 103.3 Other assets, net $ 767.2 $ 531.5 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 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 $114.3 million as of June 30, 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 June 30, 2015, Tim Hortons received $3.5 million in cash distributions and recognized $5.5 million of contingent rent expense associated with this joint venture. During the six months ended June 30, 2015, Tim Hortons received $5.9 million in cash distributions and recognized $10.4 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 revenues we recognized from franchisees in which we have an equity interest consist of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues from affiliates: Franchise royalties $ 23.9 $ 21.2 $ 44.3 $ 39.8 Property revenues 7.2 6.5 14.2 12.7 Franchise fees and other revenue 2.2 2.2 3.4 3.3 Total $ 33.3 $ 29.9 $ 61.9 $ 55.8 At June 30, 2015 and December 31, 2014, we had $16.8 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 O
Other Accrued Liabilities and Other Liabilities, net | 6 Months Ended |
Jun. 30, 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 June 30, December 31, Current: Taxes payable - current $ 167.5 $ 78.8 Accrued compensation and benefits 36.7 39.4 Interest payable 41.6 37.8 Restructuring and other provisions 23.2 29.2 Deferred income - current 20.3 19.3 Closed property reserve 12.3 15.3 Dividend payable 114.2 13.8 Other 76.6 87.5 Other accrued liabilities $ 492.4 $ 321.1 Non-current: Unfavorable leases $ 310.2 $ 355.2 Derivatives liabilities - noncurrent 28.0 25.6 Taxes payable - noncurrent 107.3 50.3 Accrued pension 62.5 62.9 Lease liability - noncurrent 35.0 35.2 Share-based compensation liability 20.3 34.9 Deferred income - noncurrent 20.9 18.9 Other 49.6 51.7 Other liabilities, net $ 633.8 $ 634.7 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 11. Long-Term Debt Long-term debt consists of the following: As of Maturity dates June 30, December 31, 2014 Term Loan Facility (a) December 12, 2021 $ 5,076.4 $ 6,682.8 2015 Senior Notes January 15, 2022 1,250.0 — 2014 Senior Notes April 1, 2022 2,250.0 2,250.0 Tim Hortons Notes various 43.7 1,044.8 Other N/A 61.0 65.3 Total debt 8,681.1 10,042.9 Less: current maturities of debt (29.3 ) (1,106.2 ) Total long-term debt $ 8,651.8 $ 8,936.7 (a) Principal face amount herein is presented net of a discount of $47.1 million at June 30, 2015 and $67.2 million at December 31, 2014. 2015 Amended Credit Agreement On May 22, 2015, two of our subsidiaries (the “Borrowers”) entered into a first amendment (the “2015 Amended Credit Agreement”) to the credit agreement dated as of October 27, 2014. Under the 2015 Amended Credit Agreement, the aggregate principal amount of secured term loans was decreased to $5,140.4 million (the “2014 Term Loan Facility”) as a result of the repayment of $1,550.0 million from the net proceeds from the offering of the 2015 Senior Notes (as defined below) and cash on hand, and the interest rate applicable to the 2014 Term Loan Facility was reduced to, at the Borrowers’ option, either (i) a base rate plus an applicable margin equal to 1.75% or (ii) a Eurocurrency rate plus an applicable margin equal to 2.75%. The 2015 Amended Credit Agreement also provides for a senior secured revolving credit facility for up to $500.0 million of revolving extensions of credit outstanding at any time (including revolving loans, swingline loans and letters of credit), the amount of which was unchanged by the May 22, 2015 amendment (the “2014 Revolving Credit Facility”, together with the 2014 Term Loan Facility, the “2014 Credit Facilities”). Under the 2015 Amended Credit Agreement, at the Borrowers’ option, the interest rate per annum applicable to the 2014 Credit Facilities is based on a fluctuating rate of interest determined by reference to either (i) a base rate determined by reference to the highest of (a) the prime rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus 0.50%, (c) the Eurocurrency rate applicable for an interest period of one month plus 1.00% and (d) in respect of the 2014 Term Loan Facility, 2.00% per annum (“Base Rate Loans”), plus an applicable margin equal to 1.75% for any 2014 Term Loan Facility and 2.00% for loans under the 2014 Revolving Credit Facility, or (ii) a Eurocurrency rate determined by reference to LIBOR, adjusted for statutory reserve requirements (“Eurocurrency Rate Loans”), plus an applicable margin equal to 2.75% for any 2014 Term Loan Facility and 3.00% for loans under the 2014 Revolving Credit Facility. Borrowings of the 2014 Credit Facilities will be subject to a floor of 1.00% in the case of Eurocurrency Rate Loans and 2.00% in the case of Base Rate Loans. We have elected our applicable rate per annum as Eurocurrency rate determined by reference to LIBOR. As of June 30, 2015, the interest rate on our 2014 Term Loan Facility was 3.75%. In connection with the 2015 Amended Credit Agreement, we recorded a $39.9 million loss on early extinguishment of debt during the three months ended June 30, 2015. The loss on early extinguishment of debt primarily reflects the write-off of unamortized debt issuance costs and the write-off of unamortized discounts. As of June 30, 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 June 30, 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. 2015 Senior Notes The Borrowers are party to an indenture, dated as of May 22, 2015 (the “Indenture”) in connection with the issuance of $1,250.0 million of 4.625% first lien senior secured notes due January 15, 2022 (the “2015 Senior Notes”) by the Borrowers. The 2015 Senior Notes bear interest at a rate of 4.625% per annum, payable semi-annually on January 15 and July 15 of each year. No principal payments are due until maturity. The net proceeds from the offering of the 2015 Senior Notes, together with cash on hand, were used to repay $1,550.0 million of the outstanding borrowings under our 2014 Term Loan Facility and to pay related premiums, fees and expenses. The 2015 Senior Notes are guaranteed on a senior secured basis, jointly and severally, by the Borrowers and substantially all of their Canadian and U.S. subsidiaries, including Burger King Worldwide, Tim Hortons and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The 2015 Senior Notes are first lien senior secured obligations and rank (i) equal in right of payment with all of the existing and future senior debt of Borrowers and Note Guarantors, including borrowings under and guarantees of the 2014 Credit Facilities and the 2014 Senior Notes (defined below); (ii) equal in right of payment with all of the existing and future first-priority senior secured debt of Borrowers and Note Guarantors, including the borrowings under and guarantees of the 2014 Credit Facilities, to the extent of the value of the collateral securing such debt; (iii) effectively senior in the right of payment to all of the existing and future unsecured senior debt and junior lien debt of Borrowers and Note Guarantors, including the 2014 Senior Notes, to the extent of the value of collateral securing the 2015 Senior Notes, (iv) senior in right of payment to all of the existing and future subordinated debt of Borrowers and Note Guarantors, and (v) structurally subordinated to all existing and future liabilities of the Borrowers’ non-guarantor subsidiaries. The Borrowers may redeem some or all of the 2015 Senior Notes at any time prior to October 1, 2017 at a price equal to 100% of the principal amount redeemed plus a “make whole” premium plus accrued and unpaid interest, if any. The 2015 Senior Notes are redeemable at our option, in whole or in part, at any time during the twelve-month period beginning on October 1, 2017 at 102.313% of the principal amount redeemed, at any time during the twelve-month period beginning on October 1, 2018 at 101.156% of the principal amount redeemed or at any time on or after October 1, 2019 at 100.0% of the principal amount redeemed. In addition, at any time prior to October 1, 2017, up to 40% of the aggregate principal amount of the 2015 Senior Notes may be redeemed with the net proceeds of certain equity offerings, at a redemption price equal to 104.625% of the principal amount of the 2015 Senior Notes plus accrued and unpaid interest, if any, to the redemption date. In connection with any tender offer for the 2015 Senior Notes, including a change of control offer or an asset sale offer, the Borrowers will have the right to redeem the 2015 Senior Notes at a redemption price equal to the amount offered in that tender offer if not less than 90% in aggregate principal amount of the outstanding 2015 Senior Notes validly tender and do not withdraw such 2015 Senior Notes in such tender offer. If the Borrowers experience a change of control, the holders of the 2015 Senior Notes will have the right to require the Borrowers to repurchase the 2015 Senior Notes at a purchase price equal to 101% of their aggregate principal amount plus accrued and unpaid interest and Additional Amounts (as defined in the Indenture), if any, to the date of such repurchase. 2014 Senior Notes At June 30, 2015, we had outstanding $2,250.0 million of 6.00% second lien senior secured notes due April 1, 2022 (the “2014 Senior Notes”). 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 six months ended June 30, 2015, Tim Hortons accepted for purchase, and settled for cash, the following: (i) C$252.6 million principal amount of Series 1 Notes; (ii) C$447.4 million principal amount of Series 2 Notes and (iii) C$446.1 million principal amount of Series 3 Notes, pursuant to tender offers made following the Transactions. 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 June 30, 2015, the Tim Hortons Notes that remain outstanding, and therefore not redeemed, are classified within long-term liabilities, as we intend to hold these until maturity. 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. Debt issuance costs In connection with entering into the 2015 Amended Credit Agreement and issuing the 2015 Senior Notes, we incurred an aggregate of $80.3 million of costs that were capitalized and recorded as deferred financing costs. Interest Expense, net Interest expense, net consists of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 2014 Term Loan Facility $ 69.4 $ — $ 145.2 $ — 2015 Senior Notes 6.3 — 6.3 — 2014 Senior Notes 33.7 — 67.5 — Tim Hortons Notes 0.5 — 2.4 — 2012 Term Loan Facility — 12.8 — 25.5 Interest Rate Caps — 2.4 — 4.5 2010 Senior Notes — 19.6 — 39.2 2011 Discount Notes — 12.6 — 24.9 Amortization of deferred financing costs and debt issuance discount 8.3 2.6 15.3 5.2 Capital lease obligations 5.9 1.3 11.8 2.7 Other 0.7 0.4 1.6 0.6 Interest income (1.0 ) (1.1 ) (2.4 ) (2.0 ) Interest expense, net $ 123.8 $ 50.6 $ 247.7 $ 100.6 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes Our effective tax rate was 32.5% and 39.0% for the three and six months ended June 30, 2015. The effective tax rate during these periods was primarily a result of the mix of income from multiple tax jurisdictions and the revaluation of certain monetary assets and liabilities as a result of changes in foreign currency exchange rates, partially offset by the favorable impact from costs incurred in connection with entering into the 2015 Amended Credit Agreement and issuing the 2015 Senior Notes. Our effective tax rate was 25.6% for the three and six months ended June 30, 2014, primarily as a result of the mix of income from multiple tax jurisdictions. |
Common Equity
Common Equity | 6 Months Ended |
Jun. 30, 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 a Partnership exchangeable unit 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 $1.8 million at June 30, 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) (“AOCI”): Derivatives Pensions Foreign Currency AOCI Balances at December 31, 2014 $ 11.4 $ (10.6 ) $ (257.4 ) $ (256.6 ) Foreign currency translation adjustment — — (898.7 ) (898.7 ) Net change in fair value of derivatives, net of tax 167.1 — — 167.1 Amounts reclassified to earnings of cash flow hedges, net of tax 19.0 — — 19.0 Pension and post-retirement benefit plans, net of tax — (0.1 ) — (0.1 ) Amortization of prior service (credits) costs, net of tax — (0.9 ) — (0.9 ) Amortization of actuarial (gains) losses, net of tax — 0.9 — 0.9 Balances at June 30, 2015 $ 197.5 $ (10.7 ) $ (1,156.1 ) $ (969.3 ) The following table displays the reclassifications out of accumulated other comprehensive income (loss): Amounts Reclassified from AOCI Affected Line Item in the Statements of Operations Three Months Ended June 30, Six Months Ended June 30, Details about AOCI Components 2015 2014 2015 2014 Gains (losses) on cash flow hedges: Interest rate derivative contracts Interest expense, net $ (5.0 ) $ (2.2 ) $ (5.0 ) $ (4.2 ) Interest rate derivative contracts Other operating expenses (income), net (22.7 ) — (27.6 ) — Forward-currency contracts Cost of sales 3.5 — 6.3 — Total before tax (24.2 ) (2.2 ) (26.3 ) (4.2 ) Income tax (expense) benefit 6.7 0.8 7.3 1.6 Net of tax $ (17.5 ) $ (1.4 ) $ (19.0 ) $ (2.6 ) Defined benefit pension: Amortization of prior service credits (costs) SG&A (1) 0.7 0.8 1.4 1.5 Amortization of actuarial gains(losses) SG&A (1) (0.7 ) 0.1 (1.4 ) 0.1 Total before tax — 0.9 — 1.6 Income tax (expense) benefit — (0.4 ) — (0.6 ) Net of tax $ — $ 0.5 $ — $ 1.0 Total reclassifications Net of tax $ (17.5 ) $ (0.9 ) $ (19.0 ) $ (1.6 ) (1) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014: Fair Value Fair Value 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 $ — $ 2.1 $ 2.1 $ — $ 6.0 $ 6.0 Interest rate Other assets, net — 0.8 0.8 — — — Derivatives designated as net investment hedges Foreign currency Inventories and other current assets, net — — — — 2.1 2.1 Foreign currency Other assets, net — 326.4 326.4 — 75.9 75.9 Derivatives not designated as hedging instruments Interest rate Other assets, net — — — — 88.9 88.9 Other Investments held in a rabbi trust Inventories and other current assets, net 1.0 — 1.0 1.1 — 1.1 Investments held in a rabbi trust Other assets, net 4.4 — 4.4 5.2 — 5.2 Total assets at fair value $ 5.4 $ 329.3 $ 334.7 $ 6.3 $ 172.9 $ 179.2 Liabilities: Derivatives designated as cash flow hedges Foreign currency Other accrued liabilities $ — $ 1.2 $ 1.2 $ — $ — $ — Interest rate Other liabilities, net — — — — 25.6 25.6 Derivatives designated as net investment hedges Foreign currency Other liabilities, net — 28.0 28.0 — — — Other ERP liabilities Other accrued liabilities — 1.0 1.0 — 1.1 1.1 ERP liabilities Other liabilities, net — 4.4 4.4 — 5.2 5.2 Total liabilities at fair value $ — $ 34.6 $ 34.6 $ — $ 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 June 30, 2015, the fair value of our variable rate term debt and bonds was estimated at $8.7 billion, compared to a carrying amount of $8.6 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 | 6 Months Ended |
Jun. 30, 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 – outstanding as of June 30, 2015 During May 2015, we entered into a series of receive-variable, pay-fixed interest rate swaps to hedge the variability in the interest payments on $2,500.0 million of our 2014 Term Loan Facility beginning May 28, 2015, through the expiration of the final swap on March 31, 2021. The notional value of the swaps is $2,500.0 million. There are six sequential interest rate swaps to achieve the hedged position. Each year on March 31, the existing interest rate swap is scheduled to expire and be immediately replaced with a new interest rate swap until the expiration of the final swap 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 accumulated other comprehensive income (loss) (“AOCI”) and 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. In connection with the interest rate swaps settled during May 2015 (as discussed below), we paid $36.2 million that is reflected as a use of cash within investing activities in the condensed consolidated statement of cash flows for the six months ended June 30, 2015. The net unrealized loss remaining in AOCI totaled $84.6 million at the date of settlement and will be reclassified into interest expense, net as the original hedged forecasted transaction affects earnings. The net amount of pre-tax losses in AOCI as of June 30, 2015 that we expect to be reclassified into interest expense within the next 12 months is $12.7 million of losses. Interest Rate Swaps – settled prior to June 30, 2015 The following derivative instruments were settled during May 2015. During November 2014, we entered into a series of 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 final 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 was to be reduced quarterly in accordance with the principal repayments of the 2014 Term Loan Facility. There were six sequential interest rate swaps to achieve the hedged position. Each year on March 31, the existing interest rate swap was scheduled to expire and 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 were recorded in AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Gains and losses from hedge ineffectiveness were recognized in current earnings. During the first quarter of 2015, we temporarily discontinued hedge accounting on the entire balance of these interest rate swaps as a result of the $42.7 million mandatory prepayment of our 2014 Term Loan Facility as well as changes to forecasted cash flows and settled $42.7 million of these instruments equal to the amount of the mandatory prepayment of our 2014 Term Loan Facility. During this same period, of the remaining $6,690.4 million of notional outstanding, 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 was not designated for hedge accounting and as such changes in fair value on this portion of the interest rate swaps were recognized in current earnings. During April 2015, in order to offset the cash flows associated with our $1,000.0 million notional value receive-variable, pay-fixed interest rate swap that was not designated for hedge accounting, we entered into a pay-variable, receive-fixed mirror interest rate swap with a notional value of $1,000.0 million and a maturity date of March 31, 2021. The following derivative instruments were settled during May 2015. During October 2014, we entered into a series of receive-variable, pay-fixed interest rate swaps with a combined initial notional value of $6,750.0 million that was amortized each quarter at the same rate of the 2014 Term Loan Facility. To offset the cash flows associated with these interest rate swaps, in November 2014 we entered into a series of receive-fixed, pay-variable mirror interest rate swaps with a combined initial notional value of $6,750.0 million that was amortized each quarter at the same rate of the 2014 Term Loan Facility. For all of these derivative instruments, each year on March 31, the existing interest rate swap was scheduled to expire and be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. These interest rate swaps were not designated for hedge accounting and as such changes in fair value were 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 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 June 30, 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 June 30, 2015, we had outstanding cross-currency rate swaps in which we pay quarterly between 4.802% and 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% and 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 initially recognized in current earnings. Beginning with the closing of the Transactions on December 12, 2014, we designated these cross-currency rate swaps as hedges and began accounting for these derivative instruments as net investment hedges. At June 30, 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 six months ended June 30, 2015, we terminated our cross-currency rate swaps entered into prior to the Transactions 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 six months ended June 30, 2015. The net unrealized gains totaled $31.8 million as of June 30, 2015. Such amounts will remain in AOCI 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 June 30, 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 $116.0 million with maturities to March 2016. We have designated these instruments as cash flow hedges, 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 rate 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 Other Comprehensive Income (Loss) (effective portion) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as cash flow hedges: Interest rate caps $ — $ (1.8 ) $ — $ (2.3 ) Interest rate swaps $ (2.9 ) $ (51.6 ) $ (85.9 ) $ (107.0 ) Forward-currency contracts $ (4.2 ) $ — $ 5.5 $ — Derivatives designated as net investment hedges: Cross-currency rate swaps $ (185.3 ) $ 2.1 $ 269.0 $ 1.7 Classification on Consolidated Statement of Operations Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense, net $ (5.0 ) $ (2.2 ) $ (5.0 ) $ (4.2 ) Other operating expenses (income), net $ (22.7 ) $ — $ (27.6 ) $ — Cost of sales $ 3.5 $ — $ 6.3 $ — Gain (Loss) Recognized in Other operating expenses (income), net Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives not designated as hedging instruments: Interest rate swaps $ (3.9 ) $ — $ (12.4 ) $ — Forward-currency contracts $ 0.7 $ — $ 2.8 $ — Ineffectiveness of cash flow hedges: Interest rate swaps $ — $ — $ (1.6 ) $ — |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 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 $7.0 million of share-based compensation expense in selling, general and administrative expenses for the three months ended June 30, 2015 compared to $3.2 million for the three months ended June 30, 2014. We recorded $22.5 million of share-based compensation expense in selling, general and administrative expenses for the six months ended June 30, 2015 compared to $6.0 million for the six months ended June 30, 2014. The increase in share-based compensation was mainly due to $1.3 million and $12.4 million during the three and six months ended June 30, 2015, respectively, related to the remeasurement of liability-classified stock options to fair value and additional stock options granted during 2015 and 2014. |
Franchise and Property Revenues
Franchise and Property Revenues | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2015 2014 2015 2014 Franchise royalties $ 239.2 $ 174.3 $ 455.0 $ 334.6 Property revenues 196.8 54.3 373.9 107.8 Franchise fees and other revenue 37.6 14.3 77.2 22.9 Franchise and property revenues $ 473.6 $ 242.9 $ 906.1 $ 465.3 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2015 2014 2015 2014 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ (5.1 ) $ 5.1 $ (2.9 ) $ 7.9 Litigation settlements and reserves, net 0.5 2.1 1.7 2.2 Net losses (gains) on derivatives 26.6 — 41.6 — Net losses (gains) on foreign exchange 9.6 (2.9 ) 25.4 (2.5 ) Other, net 2.6 1.1 3.9 2.3 Other operating (income) expenses, net $ 34.2 $ 5.4 $ 69.7 $ 9.9 Net losses (gains) on disposal of assets, restaurant closures and refranchisings for the three and six months ended June 30, 2015 primarily reflects gains in connection with a lease termination as well as the write-off of unfavorable lease balances related to this lease termination. Net losses (gains) on derivatives for the three and six months ended June 30, 2015 primarily reflects the reclassification of losses on cash flow hedges from AOCI to earnings as a result of de-designation and settlement of certain interest rate swaps. The increase in net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 19. Variable Interest Entities VIEs for which we are the primary beneficiary We consolidate 237 Restaurant VIEs where TH is the restaurants’ primary beneficiary and Advertising VIEs. During the three months ended June 30, 2015, sales and cost of sales associated with Restaurant VIEs were $64.0 million and $62.8 million, respectively. During the six months ended June 30, 2015, sales and cost of sales associated with Restaurant VIEs were $125.6 million and $123.2 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 June 30, 2015 As of December 31, 2014 Restaurant Advertising Restaurant Advertising Cash and cash equivalents $ 4.7 $ — $ 5.9 $ — Inventories and other current assets, net 4.3 — 5.2 — Advertising fund restricted assets – current — 54.0 — 53.0 Property and equipment, net 8.2 44.1 10.7 53.1 Other assets, net — 0.2 0.2 0.4 Total assets $ 17.2 $ 98.3 $ 22.0 $ 106.5 Notes payable to Tim Hortons Inc. – current (1)(2) $ 7.4 $ 10.6 $ 8.9 $ 11.4 Other accrued liabilities 6.1 0.1 7.8 0.1 Advertising fund liabilities – current — 48.3 — 45.6 Notes payable to Tim Hortons Inc. – long-term (1)(2) 0.2 37.1 0.3 45.5 Other liabilities, net 1.9 2.2 3.9 3.9 Total liabilities 15.6 98.3 20.9 106.5 Equity of VIEs 1.6 — 1.1 — Total liabilities and equity $ 17.2 $ 98.3 $ 22.0 $ 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 | 6 Months Ended |
Jun. 30, 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 from properties we lease or sublease to franchisees; (iii) retail sales at Company restaurants; and (iv) distribution sales to Tim Hortons franchisees 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 Six Months Ended 2015 2014 2015 2014 Revenues: TH $ 763.2 $ — $ 1,445.6 $ — BK 278.2 261.2 527.8 502.1 Total revenues $ 1,041.4 $ 261.2 $ 1,973.4 $ 502.1 Only Canada and the U.S. represented more than 10% of our total revenues during the three and six months ended June 30, 2015 and only the U.S. represented more than 10% of our total revenues during the three and six months ended June 30, 2014. Revenues in Canada and the U.S. totaled $678.6 million and $251.2 million for the three months ended June 30, 2015, respectively. Revenues in Canada and the U.S. totaled $1,280.8 million and $484.0 million for the six months ended June 30, 2015, respectively. Our measure of segment income is Adjusted EBITDA. Adjusted EBITDA represents earnings (net income or loss) before interest, (gain) loss on early extinguishment of debt, 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 acquisition accounting impact on cost of sales and Tim Hortons transaction and restructuring costs. A reconciliation of segment income to net income (loss) consists of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Segment Income: TH $ 234.3 $ — $ 418.2 $ — BK 192.9 182.8 363.6 342.5 Adjusted EBITDA 427.2 182.8 781.8 342.5 Share-based compensation and non-cash incentive compensation expense 8.1 4.2 22.0 7.7 Acquisition accounting impact on cost of sales (1.0 ) — 0.8 — TH transaction and restructuring costs 27.4 — 55.4 — Impact of equity method investments (a) 9.0 5.9 8.8 9.9 Other operating expenses (income), net 34.2 5.4 69.7 9.9 EBITDA 349.5 167.3 625.1 315.0 Depreciation and amortization 51.2 15.8 102.1 32.2 Income from operations 298.3 151.5 523.0 282.8 Interest expense, net 123.8 50.6 247.7 100.6 (Gain) loss on early extinguishment of debt 39.9 — 39.6 — Income tax expense 43.8 25.8 91.9 46.7 Net income (loss) $ 90.8 $ 75.1 $ 143.8 $ 135.5 (a) Represents (i) (income) loss from 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 Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Note 21. Supplemental Financial Information On May 22, 2015, 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 the 2015 Amended Credit Agreement that provides for obligations under the 2014 Credit Facilities. On May 22, 2015 the Issuers entered into an Indenture (the “2015 Senior Notes Indenture”) with respect to the 2015 Senior Notes. On October 8, 2014 the Issuers entered into an Indenture (the “2014 Senior Notes Indenture”) with respect to the 2014 Senior Notes. The 2015 Amended Credit Agreement, the 2015 Senior Notes Indenture 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 June 30, 2015 Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 685.7 $ — $ — $ 685.7 Trade and notes receivable, net 360.2 — — 360.2 Inventories and other current assets, net 196.9 — — 196.9 Advertising fund restricted assets 54.0 — — 54.0 Deferred income taxes, net 104.3 — — 104.3 Total current assets 1,401.1 — — 1,401.1 Property and equipment, net 2,393.0 — — 2,393.0 Intangible assets, net 8,898.1 — — 8,898.1 Goodwill 5,437.9 — — 5,437.9 Net investment in property leased to franchisees 130.8 — — 130.8 Intercompany receivable — 114.2 (114.2 ) — Investment in subsidiaries — 6,838.5 (6,838.5 ) — Other assets, net 764.0 3.2 — 767.2 Total assets $ 19,024.9 $ 6,955.9 $ (6,952.7 ) $ 19,028.1 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 250.8 $ — $ — $ 250.8 Accrued advertising 39.0 — — 39.0 Other accrued liabilities 378.2 114.2 — 492.4 Gift card liability 125.8 — — 125.8 Advertising fund liabilities 48.3 — — 48.3 Current portion of long term debt and capital leases 46.3 — — 46.3 Total current liabilities 888.4 114.2 — 1,002.6 Term debt, net of current portion 8,651.8 — — 8,651.8 Capital leases, net of current portion 161.4 — — 161.4 Other liabilities, net 633.8 — — 633.8 Payables to affiliates 114.2 — (114.2 ) — Deferred income taxes, net 1,736.8 — — 1,736.8 Total liabilities 12,186.4 114.2 (114.2 ) 12,186.4 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A Common Units — 1,964.8 — 1,964.8 Partnership exchangeable units — 2,547.4 — 2,547.4 Common shares 7,824.4 — (7,824.4 ) — (Accumulated deficit) retained earnings (18.4 ) — 18.4 — Accumulated other comprehensive income (loss) (969.3 ) (969.3 ) 969.3 (969.3 ) Total Partners’ capital/shareholders’ equity 6,836.7 3,542.9 (6,836.7 ) 3,542.9 Noncontrolling interests 1.8 1.8 (1.8 ) 1.8 Total equity 6,838.5 3,544.7 (6,838.5 ) 3,544.7 Total liabilities, Partnership preferred units and equity $ 19,024.9 $ 6,955.9 $ (6,952.7 ) $ 19,028.1 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions) Three Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 567.8 $ — $ — $ 567.8 Franchise and property revenues 473.6 — — 473.6 Intercompany revenues — — — — Total revenues 1,041.4 — — 1,041.4 Cost of sales 475.9 — — 475.9 Franchise and property expenses 125.6 — — 125.6 Selling, general and administrative expenses 102.1 — — 102.1 (Income) loss from equity method investments 5.3 — — 5.3 Other operating (income) expenses, net 34.2 — — 34.2 Total operating costs and expenses 743.1 — — 743.1 Income (loss) from operations 298.3 — — 298.3 Interest expense, net 123.8 — — 123.8 Loss on early extinguishment of debt 39.9 — — 39.9 Income (loss) before income taxes 134.6 — — 134.6 Income tax expense (benefit) 43.8 — — 43.8 Net income (loss) 90.8 — — 90.8 Equity in earnings of consolidated subsidiaries — 90.8 (90.8 ) — Net income (loss) 90.8 90.8 (90.8 ) 90.8 Net income attributable to noncontrolling interests 1.0 1.0 (1.0 ) 1.0 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders / shareholders $ 89.8 $ 22.3 $ (89.8 ) $ 22.3 Total comprehensive income (loss) $ 136.2 $ 136.2 $ (136.2 ) $ 136.2 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions) Six Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,067.3 $ — $ — $ 1,067.3 Franchise and property revenues 906.1 — — 906.1 Intercompany revenues — — — — Total revenues 1,973.4 — — 1,973.4 Cost of sales 909.5 — — 909.5 Franchise and property expenses 255.6 — — 255.6 Selling, general and administrative expenses 213.1 — — 213.1 (Income) loss from equity method investments 2.5 — — 2.5 Other operating (income) expenses, net 69.7 — — 69.7 Total operating costs and expenses 1,450.4 — — 1,450.4 Income (loss) from operations 523.0 — — 523.0 Interest expense, net 247.7 — — 247.7 Loss on early extinguishment of debt 39.6 — — 39.6 Income (loss) before income taxes 235.7 — — 235.7 Income tax expense (benefit) 91.9 — — 91.9 Net income (loss) 143.8 — — 143.8 Equity in earnings of consolidated subsidiaries — 143.8 (143.8 ) — Net income (loss) 143.8 143.8 (143.8 ) 143.8 Net income attributable to noncontrolling interests 2.0 2.0 (2.0 ) 2.0 Partnership preferred unit distributions — 136.2 — 136.2 Net income (loss) attributable to common unitholders / shareholders $ 141.8 $ 5.6 $ (141.8 ) $ 5.6 Total comprehensive income (loss) $ (568.9 ) $ (568.9 ) $ 568.9 $ (568.9 ) RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions) Six Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ 143.8 $ 143.8 $ (143.8 ) $ 143.8 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (143.8 ) 143.8 — Depreciation and amortization 102.1 — — 102.1 (Gain) loss on early extinguishment of debt 39.6 — — 39.6 Amortization of deferred financing costs and debt issuance discount 15.3 — — 15.3 (Income) loss from equity method investments 2.5 — — 2.5 Loss (gain) on remeasurement of foreign denominated transactions 27.5 — — 27.5 Amortization of defined benefit pension and postretirement items (0.1 ) — — (0.1 ) Net losses (gains) on derivatives 46.6 — — 46.6 Net losses (gains) on refranchisings and dispositions of assets (0.6 ) — — (0.6 ) Bad debt expense (recoveries), net 0.7 — — 0.7 Share-based compensation expense 22.5 — — 22.5 Acquisition accounting impact on cost of sales 0.8 — — 0.8 Deferred income taxes (92.5 ) — — (92.5 ) 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 59.9 — — 59.9 Inventories and other current assets 5.0 — — 5.0 Accounts and drafts payable 39.3 — — 39.3 Accrued advertising 6.2 — — 6.2 Other accrued liabilities 35.9 — — 35.9 Other long-term assets and liabilities (25.5 ) — (25.5 ) Net cash provided by operating activities 508.2 — — 508.2 Cash flows from investing activities: Payments for property and equipment (57.0 ) — — (57.0 ) Proceeds (payments) from refranchisings, disposition of assets and restaurant closures 10.7 — — 10.7 Return of investment on direct financing leases 8.0 — — 8.0 Settlement of derivatives, net 11.5 — — 11.5 Other investing activities 2.3 — — 2.3 Net cash provided by (used for) investing activities (24.5 ) — — (24.5 ) Cash flows from financing activities: Proceeds from Senior Notes 1,250.0 — — 1,250.0 Repayments of term debt, Tim Hortons Notes and capital leases (2,592.4 ) — — (2,592.4 ) Payment of financing costs (81.3 ) — — (81.3 ) Distributions on partnership units — (124.5 ) — (124.5 ) Capital contributions from RBI Inc. — 0.5 — 0.5 Other financing activities (0.7 ) — — (0.7 ) Intercompany financing (124.0 ) 124.0 — — Net cash provided by (used for) financing activities (1,548.4 ) — — (1,548.4 ) Effect of exchange rates on cash and cash equivalents (52.8 ) — — (52.8 ) Increase (decrease) in cash and cash equivalents (1,117.5 ) — — (1,117.5 ) Cash and cash equivalents at beginning of period 1,803.2 — — 1,803.2 Cash and cash equivalents at end of period $ 685.7 $ — $ — $ 685.7 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22. Subsequent Event Dividends On July 3, 2015, RBI paid a cash dividend of $0.10 per RBI common share to common shareholders of record on May 29, 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 $0.10 per exchangeable unit to holders of record on May 29, 2015. On July 2, 2015, RBI paid a cash dividend of $0.98 per Preferred Share, for a total dividend of $67.5 million, to the holder of the Preferred Shares. The dividend on the Preferred Shares included the amount due for the second 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 July 27, 2015, the RBI board of directors declared a cash dividend of $0.12 per RBI common share, which will be paid on October 2, 2015 to RBI common shareholders of record on August 28, 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. Partnership will also make a distribution in respect of each Partnership exchangeable unit in the amount of $0.12 per Partnership exchangeable unit, and the record date and payment date for such distribution will be the same as the record date and payment date for the cash dividend per RBI common share set forth above. On July 27, 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 October 1, 2015. The dividend on the Preferred Shares includes the amount due for the third 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. |
Description of Business and O32
Description of Business and Organization (Tables) | 6 Months Ended |
Jun. 30, 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 124 312 436 Closures (19 ) (156 ) (175 ) Total restaurants – June 30, 2015 4,776 14,528 19,304 |
The Transactions (Tables)
The Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed | December 12, Total current assets $ 643.8 Property and equipment 1,778.0 Intangible assets 6,817.6 Other assets, net 89.1 Accounts payable (228.2 ) Advertising fund liabilities (49.7 ) Other accrued liabilities (224.7 ) Total debt and capital lease obligations (1,233.8 ) Other liabilities, net (300.7 ) Deferred income taxes, net (1,251.7 ) Total identifiable net assets 6,039.7 Noncontrolling interest (1.1 ) Goodwill 5,256.3 Total consideration $ 11,294.9 |
Estimated Goodwill Due to Changes to Preliminary Estimates of Fair Values and Allocation of Purchase Price | The adjustments to the preliminary estimate of net assets acquired resulted in a corresponding $6.9 million decrease in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price: Increase (Decrease) Change in: Total current assets $ (3.2 ) Other assets 3.4 Other accrued liabilities 2.4 Other liabilities, net (9.5 ) Total decrease in goodwill $ (6.9 ) |
Earnings (Loss) Per Unit_Share
Earnings (Loss) Per Unit/Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings (Loss) Per Share | Basic and diluted earnings (loss) per share are as follows (in millions, except per share information): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator - Basic and Diluted: Net income (loss) attributable to common unitholders/shareholders $ 22.3 $ 75.1 $ 5.6 $ 135.5 Allocation of net income (loss) among partner interests and common shareholders: Net income (loss) allocated to Class A common unitholders $ 9.6 $ — $ 2.4 $ — Net income (loss) allocated to Partnership exchangeable unitholders 12.7 — 3.2 — Net income (loss) allocated to common shareholders — 75.1 — 135.5 Net income (loss) attributable to common unitholders / shareholders $ 22.3 $ 75.1 $ 5.6 $ 135.5 Denominator - Basic and Diluted partnership units: Weighted average Class A common units 202.0 — 202.0 — Weighted average Partnership exchangeable units 265.0 — 265.0 — Total weighted average basic and diluted units outstanding 467.0 — 467.0 — Denominator - common shares: Weighted average common shares - basic — 352.3 — 352.3 Effect of other dilutive securities — 7.1 — 7.0 Weighted average common shares - diluted — 359.4 — 359.3 Earnings (loss) per unit / share - basic: Class A common units $ 0.05 — $ 0.01 — Partnership exchangeable units $ 0.05 — $ 0.01 — Common shares — $ 0.21 — $ 0.38 Earnings (loss) per unit / share - diluted: Class A common units $ 0.05 — $ 0.01 — Partnership exchangeable units $ 0.05 — $ 0.01 — Common shares — $ 0.21 — $ 0.38 Anti-dilutive stock options outstanding — 3.6 — 3.6 |
Inventories and Other Current35
Inventories and Other Current Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Inventories and Other Current Assets, Net | Inventories and other current assets, net consist of the following: As of June 30, December 31, Raw materials $ 28.5 $ 26.3 Finished goods 63.2 71.8 Total Inventory 91.7 98.1 Deferred financing costs - current 31.5 20.5 Refundable and prepaid income taxes 18.3 18.3 Prepaid rent 6.4 13.4 Prepaids and other current assets 49.0 41.4 Inventories and other current assets, net $ 196.9 $ 191.7 |
Intangible Assets, net and Go36
Intangible Assets, net and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Identifiable assets subject to amortization: Franchise agreements $ 758.2 $ (96.1 ) $ 662.1 $ 790.4 $ (83.4 ) $ 707.0 Favorable leases 394.1 (88.6 ) 305.5 412.7 (62.6 ) 350.1 Subtotal 1,152.3 (184.7 ) 967.6 1,203.1 (146.0 ) 1,057.1 Indefinite lived intangible assets: Tim Hortons $ 5,817.4 $ — $ 5,817.4 $ 6,217.0 $ — $ 6,217.0 Burger King 2,113.1 — 2,113.1 2,167.0 — 2,167.0 Subtotal 7,930.5 — 7,930.5 8,384.0 — 8,384.0 Intangible assets, net $ 8,898.1 $ 9,441.1 Goodwill $ 5,437.9 $ 5,844.4 |
Other assets, net (Tables)
Other assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Other Assets, Net | Other assets, net consist of the following: As of June 30, December 31, Derivative assets - noncurrent $ 327.2 $ 164.8 Deferred financing costs - noncurrent 172.8 138.5 Equity method investments 114.3 124.9 Other assets 152.9 103.3 Other assets, net $ 767.2 $ 531.5 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Franchise and Property Revenue | Franchise and property revenues we recognized from franchisees in which we have an equity interest consist of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues from affiliates: Franchise royalties $ 23.9 $ 21.2 $ 44.3 $ 39.8 Property revenues 7.2 6.5 14.2 12.7 Franchise fees and other revenue 2.2 2.2 3.4 3.3 Total $ 33.3 $ 29.9 $ 61.9 $ 55.8 |
Other Accrued Liabilities and39
Other Accrued Liabilities and Other Liabilities, net (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, December 31, Current: Taxes payable - current $ 167.5 $ 78.8 Accrued compensation and benefits 36.7 39.4 Interest payable 41.6 37.8 Restructuring and other provisions 23.2 29.2 Deferred income - current 20.3 19.3 Closed property reserve 12.3 15.3 Dividend payable 114.2 13.8 Other 76.6 87.5 Other accrued liabilities $ 492.4 $ 321.1 Non-current: Unfavorable leases $ 310.2 $ 355.2 Derivatives liabilities - noncurrent 28.0 25.6 Taxes payable - noncurrent 107.3 50.3 Accrued pension 62.5 62.9 Lease liability - noncurrent 35.0 35.2 Share-based compensation liability 20.3 34.9 Deferred income - noncurrent 20.9 18.9 Other 49.6 51.7 Other liabilities, net $ 633.8 $ 634.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following: As of Maturity dates June 30, December 31, 2014 Term Loan Facility (a) December 12, 2021 $ 5,076.4 6,682.8 2015 Senior Notes January 15, 2022 1,250.0 — 2014 Senior Notes April 1, 2022 2,250.0 2,250.0 Tim Hortons Notes various 43.7 1,044.8 Other N/A 61.0 65.3 Total debt 8,681.1 10,042.9 Less: current maturities of debt (29.3 ) (1,106.2 ) Total long-term debt $ 8,651.8 $ 8,936.7 (a) Principal face amount herein is presented net of a discount of $47.1 million at June 30, 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 Six Months Ended 2015 2014 2015 2014 2014 Term Loan Facility $ 69.4 $ — $ 145.2 $ — 2015 Senior Notes 6.3 — 6.3 — 2014 Senior Notes 33.7 — 67.5 — Tim Hortons Notes 0.5 — 2.4 — 2012 Term Loan Facility — 12.8 — 25.5 Interest Rate Caps — 2.4 — 4.5 2010 Senior Notes — 19.6 — 39.2 2011 Discount Notes — 12.6 — 24.9 Amortization of deferred financing costs and debt issuance discount 8.3 2.6 15.3 5.2 Capital lease obligations 5.9 1.3 11.8 2.7 Other 0.7 0.4 1.6 0.6 Interest income (1.0 ) (1.1 ) (2.4 ) (2.0 ) Interest expense, net $ 123.8 $ 50.6 $ 247.7 $ 100.6 |
Common Equity (Tables)
Common Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of Change in the Components of Accumulated Other Comprehensive Income (Loss) ("AOCI") | The following table displays the change in the components of accumulated other comprehensive income (loss) (“AOCI”): Derivatives Pensions Foreign Currency AOCI Balances at December 31, 2014 $ 11.4 $ (10.6 ) $ (257.4 ) $ (256.6 ) Foreign currency translation adjustment — — (898.7 ) (898.7 ) Net change in fair value of derivatives, net of tax 167.1 — — 167.1 Amounts reclassified to earnings of cash flow hedges, net of tax 19.0 — — 19.0 Pension and post-retirement benefit plans, net of tax — (0.1 ) — (0.1 ) Amortization of prior service (credits) costs, net of tax — (0.9 ) — (0.9 ) Amortization of actuarial (gains) losses, net of tax — 0.9 — 0.9 Balances at June 30, 2015 $ 197.5 $ (10.7 ) $ (1,156.1 ) $ (969.3 ) |
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 Statements of Operations Three Months Ended June 30, Six Months Ended June 30, Details about AOCI Components 2015 2014 2015 2014 Gains (losses) on cash flow hedges: Interest rate derivative contracts Interest expense, net $ (5.0 ) $ (2.2 ) $ (5.0 ) $ (4.2 ) Interest rate derivative contracts Other operating expenses (income), net (22.7 ) — (27.6 ) — Forward-currency contracts Cost of sales 3.5 — 6.3 — Total before tax (24.2 ) (2.2 ) (26.3 ) (4.2 ) Income tax (expense) benefit 6.7 0.8 7.3 1.6 Net of tax $ (17.5 ) $ (1.4 ) $ (19.0 ) $ (2.6 ) Defined benefit pension: Amortization of prior service credits (costs) SG&A (1) 0.7 0.8 1.4 1.5 Amortization of actuarial gains(losses) SG&A (1) (0.7 ) 0.1 (1.4 ) 0.1 Total before tax — 0.9 — 1.6 Income tax (expense) benefit — (0.4 ) — (0.6 ) Net of tax $ — $ 0.5 $ — $ 1.0 Total reclassifications Net of tax $ (17.5 ) $ (0.9 ) $ (19.0 ) $ (1.6 ) (1) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014: Fair Value Fair Value 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 $ — $ 2.1 $ 2.1 $ — $ 6.0 $ 6.0 Interest rate Other assets, net — 0.8 0.8 — — — Derivatives designated as net investment hedges Foreign currency Inventories and other current assets, net — — — — 2.1 2.1 Foreign currency Other assets, net — 326.4 326.4 — 75.9 75.9 Derivatives not designated as hedging instruments Interest rate Other assets, net — — — — 88.9 88.9 Other Investments held in a rabbi trust Inventories and other current assets, net 1.0 — 1.0 1.1 — 1.1 Investments held in a rabbi trust Other assets, net 4.4 — 4.4 5.2 — 5.2 Total assets at fair value $ 5.4 $ 329.3 $ 334.7 $ 6.3 $ 172.9 $ 179.2 Liabilities: Derivatives designated as cash flow hedges Foreign currency Other accrued liabilities $ — $ 1.2 $ 1.2 $ — $ — $ — Interest rate Other liabilities, net — — — — 25.6 25.6 Derivatives designated as net investment hedges Foreign currency Other liabilities, net — 28.0 28.0 — — — Other ERP liabilities Other accrued liabilities — 1.0 1.0 — 1.1 1.1 ERP liabilities Other liabilities, net — 4.4 4.4 — 5.2 5.2 Total liabilities at fair value $ — $ 34.6 $ 34.6 $ — $ 31.9 $ 31.9 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 Other Comprehensive Income (Loss) (effective portion) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as cash flow hedges: Interest rate caps $ — $ (1.8 ) $ — $ (2.3 ) Interest rate swaps $ (2.9 ) $ (51.6 ) $ (85.9 ) $ (107.0 ) Forward-currency contracts $ (4.2 ) $ — $ 5.5 $ — Derivatives designated as net investment hedges: Cross-currency rate swaps $ (185.3 ) $ 2.1 $ 269.0 $ 1.7 Classification on Consolidated Statement of Operations Gain (Loss) Reclassified from AOCI into Earnings Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest expense, net $ (5.0 ) $ (2.2 ) $ (5.0 ) $ (4.2 ) Other operating expenses (income), net $ (22.7 ) $ — $ (27.6 ) $ — Cost of sales $ 3.5 $ — $ 6.3 $ — Gain (Loss) Recognized in Other operating expenses (income), net Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives not designated as hedging instruments: Interest rate swaps $ (3.9 ) $ — $ (12.4 ) $ — Forward-currency contracts $ 0.7 $ — $ 2.8 $ — Ineffectiveness of cash flow hedges: Interest rate swaps $ — $ — $ (1.6 ) $ — |
Franchise and Property Revenu44
Franchise and Property Revenues (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Industries [Abstract] | |
Summary of Franchise and Property Revenues | Franchise and property revenues consist of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Franchise royalties $ 239.2 $ 174.3 $ 455.0 $ 334.6 Property revenues 196.8 54.3 373.9 107.8 Franchise fees and other revenue 37.6 14.3 77.2 22.9 Franchise and property revenues $ 473.6 $ 242.9 $ 906.1 $ 465.3 |
Other Operating Expenses (Inc45
Other Operating Expenses (Income), net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), Net | Other operating expenses (income), net consists of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ (5.1 ) $ 5.1 $ (2.9 ) $ 7.9 Litigation settlements and reserves, net 0.5 2.1 1.7 2.2 Net losses (gains) on derivatives 26.6 — 41.6 — Net losses (gains) on foreign exchange 9.6 (2.9 ) 25.4 (2.5 ) Other, net 2.6 1.1 3.9 2.3 Other operating (income) expenses, net $ 34.2 $ 5.4 $ 69.7 $ 9.9 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 June 30, 2015 As of December 31, 2014 Restaurant Advertising Restaurant Advertising Cash and cash equivalents $ 4.7 $ — $ 5.9 $ — Inventories and other current assets, net 4.3 — 5.2 — Advertising fund restricted assets – current — 54.0 — 53.0 Property and equipment, net 8.2 44.1 10.7 53.1 Other assets, net — 0.2 0.2 0.4 Total assets $ 17.2 $ 98.3 $ 22.0 $ 106.5 Notes payable to Tim Hortons Inc. – current (1)(2) $ 7.4 $ 10.6 $ 8.9 $ 11.4 Other accrued liabilities 6.1 0.1 7.8 0.1 Advertising fund liabilities – current — 48.3 — 45.6 Notes payable to Tim Hortons Inc. – long-term (1)(2) 0.2 37.1 0.3 45.5 Other liabilities, net 1.9 2.2 3.9 3.9 Total liabilities 15.6 98.3 20.9 106.5 Equity of VIEs 1.6 — 1.1 — Total liabilities and equity $ 17.2 $ 98.3 $ 22.0 $ 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) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenues by Operating Segment | Revenues by operating segment consist of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Revenues: TH $ 763.2 $ — $ 1,445.6 $ — BK 278.2 261.2 527.8 502.1 Total revenues $ 1,041.4 $ 261.2 $ 1,973.4 $ 502.1 |
Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income (loss) consists of the following: Three Months Ended Six Months Ended 2015 2014 2015 2014 Segment Income: TH $ 234.3 $ — $ 418.2 $ — BK 192.9 182.8 363.6 342.5 Adjusted EBITDA 427.2 182.8 781.8 342.5 Share-based compensation and non-cash incentive compensation expense 8.1 4.2 22.0 7.7 Acquisition accounting impact on cost of sales (1.0 ) — 0.8 — TH transaction and restructuring costs 27.4 — 55.4 — Impact of equity method investments (a) 9.0 5.9 8.8 9.9 Other operating expenses (income), net 34.2 5.4 69.7 9.9 EBITDA 349.5 167.3 625.1 315.0 Depreciation and amortization 51.2 15.8 102.1 32.2 Income from operations 298.3 151.5 523.0 282.8 Interest expense, net 123.8 50.6 247.7 100.6 (Gain) loss on early extinguishment of debt 39.9 — 39.6 — Income tax expense 43.8 25.8 91.9 46.7 Net income (loss) $ 90.8 $ 75.1 $ 143.8 $ 135.5 (a) Represents (i) (income) loss from 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 Inform48
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Financial Statements | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions) As of June 30, 2015 Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 685.7 $ — $ — $ 685.7 Trade and notes receivable, net 360.2 — — 360.2 Inventories and other current assets, net 196.9 — — 196.9 Advertising fund restricted assets 54.0 — — 54.0 Deferred income taxes, net 104.3 — — 104.3 Total current assets 1,401.1 — — 1,401.1 Property and equipment, net 2,393.0 — — 2,393.0 Intangible assets, net 8,898.1 — — 8,898.1 Goodwill 5,437.9 — — 5,437.9 Net investment in property leased to franchisees 130.8 — — 130.8 Intercompany receivable — 114.2 (114.2 ) — Investment in subsidiaries — 6,838.5 (6,838.5 ) — Other assets, net 764.0 3.2 — 767.2 Total assets $ 19,024.9 $ 6,955.9 $ (6,952.7 ) $ 19,028.1 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 250.8 $ — $ — $ 250.8 Accrued advertising 39.0 — — 39.0 Other accrued liabilities 378.2 114.2 — 492.4 Gift card liability 125.8 — — 125.8 Advertising fund liabilities 48.3 — — 48.3 Current portion of long term debt and capital leases 46.3 — — 46.3 Total current liabilities 888.4 114.2 — 1,002.6 Term debt, net of current portion 8,651.8 — — 8,651.8 Capital leases, net of current portion 161.4 — — 161.4 Other liabilities, net 633.8 — — 633.8 Payables to affiliates 114.2 — (114.2 ) — Deferred income taxes, net 1,736.8 — — 1,736.8 Total liabilities 12,186.4 114.2 (114.2 ) 12,186.4 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A Common Units — 1,964.8 — 1,964.8 Partnership exchangeable units — 2,547.4 — 2,547.4 Common shares 7,824.4 — (7,824.4 ) — (Accumulated deficit) retained earnings (18.4 ) — 18.4 — Accumulated other comprehensive income (loss) (969.3 ) (969.3 ) 969.3 (969.3 ) Total Partners’ capital/shareholders’ equity 6,836.7 3,542.9 (6,836.7 ) 3,542.9 Noncontrolling interests 1.8 1.8 (1.8 ) 1.8 Total equity 6,838.5 3,544.7 (6,838.5 ) 3,544.7 Total liabilities, Partnership preferred units and equity $ 19,024.9 $ 6,955.9 $ (6,952.7 ) $ 19,028.1 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions) Three Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 567.8 $ — $ — $ 567.8 Franchise and property revenues 473.6 — — 473.6 Intercompany revenues — — — — Total revenues 1,041.4 — — 1,041.4 Cost of sales 475.9 — — 475.9 Franchise and property expenses 125.6 — — 125.6 Selling, general and administrative expenses 102.1 — — 102.1 (Income) loss from equity method investments 5.3 — — 5.3 Other operating (income) expenses, net 34.2 — — 34.2 Total operating costs and expenses 743.1 — — 743.1 Income (loss) from operations 298.3 — — 298.3 Interest expense, net 123.8 — — 123.8 Loss on early extinguishment of debt 39.9 — — 39.9 Income (loss) before income taxes 134.6 — — 134.6 Income tax expense (benefit) 43.8 — — 43.8 Net income (loss) 90.8 — — 90.8 Equity in earnings of consolidated subsidiaries — 90.8 (90.8 ) — Net income (loss) 90.8 90.8 (90.8 ) 90.8 Net income attributable to noncontrolling interests 1.0 1.0 (1.0 ) 1.0 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders / shareholders $ 89.8 $ 22.3 $ (89.8 ) $ 22.3 Total comprehensive income (loss) $ 136.2 $ 136.2 $ (136.2 ) $ 136.2 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions) Six Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,067.3 $ — $ — $ 1,067.3 Franchise and property revenues 906.1 — — 906.1 Intercompany revenues — — — — Total revenues 1,973.4 — — 1,973.4 Cost of sales 909.5 — — 909.5 Franchise and property expenses 255.6 — — 255.6 Selling, general and administrative expenses 213.1 — — 213.1 (Income) loss from equity method investments 2.5 — — 2.5 Other operating (income) expenses, net 69.7 — — 69.7 Total operating costs and expenses 1,450.4 — — 1,450.4 Income (loss) from operations 523.0 — — 523.0 Interest expense, net 247.7 — — 247.7 Loss on early extinguishment of debt 39.6 — — 39.6 Income (loss) before income taxes 235.7 — — 235.7 Income tax expense (benefit) 91.9 — — 91.9 Net income (loss) 143.8 — — 143.8 Equity in earnings of consolidated subsidiaries — 143.8 (143.8 ) — Net income (loss) 143.8 143.8 (143.8 ) 143.8 Net income attributable to noncontrolling interests 2.0 2.0 (2.0 ) 2.0 Partnership preferred unit distributions — 136.2 — 136.2 Net income (loss) attributable to common unitholders / shareholders $ 141.8 $ 5.6 $ (141.8 ) $ 5.6 Total comprehensive income (loss) $ (568.9 ) $ (568.9 ) $ 568.9 $ (568.9 ) RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions) Six Months Ended June 30, 2015 Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ 143.8 $ 143.8 $ (143.8 ) $ 143.8 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (143.8 ) 143.8 — Depreciation and amortization 102.1 — — 102.1 (Gain) loss on early extinguishment of debt 39.6 — — 39.6 Amortization of deferred financing costs and debt issuance discount 15.3 — — 15.3 (Income) loss from equity method investments 2.5 — — 2.5 Loss (gain) on remeasurement of foreign denominated transactions 27.5 — — 27.5 Amortization of defined benefit pension and postretirement items (0.1 ) — — (0.1 ) Net losses (gains) on derivatives 46.6 — — 46.6 Net losses (gains) on refranchisings and dispositions of assets (0.6 ) — — (0.6 ) Bad debt expense (recoveries), net 0.7 — — 0.7 Share-based compensation expense 22.5 — — 22.5 Acquisition accounting impact on cost of sales 0.8 — — 0.8 Deferred income taxes (92.5 ) — — (92.5 ) 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 59.9 — — 59.9 Inventories and other current assets 5.0 — — 5.0 Accounts and drafts payable 39.3 — — 39.3 Accrued advertising 6.2 — — 6.2 Other accrued liabilities 35.9 — — 35.9 Other long-term assets and liabilities (25.5 ) — (25.5 ) Net cash provided by operating activities 508.2 — — 508.2 Cash flows from investing activities: Payments for property and equipment (57.0 ) — — (57.0 ) Proceeds (payments) from refranchisings, disposition of assets and restaurant closures 10.7 — — 10.7 Return of investment on direct financing leases 8.0 — — 8.0 Settlement of derivatives, net 11.5 — — 11.5 Other investing activities 2.3 — — 2.3 Net cash provided by (used for) investing activities (24.5 ) — — (24.5 ) Cash flows from financing activities: Proceeds from Senior Notes 1,250.0 — — 1,250.0 Repayments of term debt, Tim Hortons Notes and capital leases (2,592.4 ) — — (2,592.4 ) Payment of financing costs (81.3 ) — — (81.3 ) Distributions on partnership units — (124.5 ) — (124.5 ) Capital contributions from RBI Inc. — 0.5 — 0.5 Other financing activities (0.7 ) — — (0.7 ) Intercompany financing (124.0 ) 124.0 — — Net cash provided by (used for) financing activities (1,548.4 ) — — (1,548.4 ) Effect of exchange rates on cash and cash equivalents (52.8 ) — — (52.8 ) Increase (decrease) in cash and cash equivalents (1,117.5 ) — — (1,117.5 ) Cash and cash equivalents at beginning of period 1,803.2 — — 1,803.2 Cash and cash equivalents at end of period $ 685.7 $ — $ — $ 685.7 |
Description of Business and O49
Description of Business and Organization - Additional Information (Detail) | Jun. 30, 2015CountryRestaurants | Dec. 31, 2014Restaurants |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of restaurants in operation | 19,304 | 19,043 |
Number of countries in which company and franchise restaurants operated | Country | 100 | |
Percentage of franchised Tim Hortons and Burger King restaurants | 100.00% |
Description of Business and O50
Description of Business and Organization - Restaurant Count for Geographic Areas (Detail) | 6 Months Ended |
Jun. 30, 2015Restaurants | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 19,043 |
Openings | 436 |
Closures | (175) |
Restaurant count at end of period | 19,304 |
Tim Hortons [Member] | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 4,671 |
Openings | 124 |
Closures | (19) |
Restaurant count at end of period | 4,776 |
Burger King [Member] | |
Franchisor Disclosure [Line Items] | |
Restaurant count at beginning of period | 14,372 |
Openings | 312 |
Closures | (156) |
Restaurant count at end of period | 14,528 |
The Transactions - Additional I
The Transactions - Additional Information (Detail) - USD ($) $ in Millions | Dec. 12, 2014 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||
Total decrease in goodwill | $ (6.9) | |
Tim Hortons [Member] | ||
Business Acquisition [Line Items] | ||
Total consideration | $ 11,294.9 |
The Transactions - Summary of A
The Transactions - Summary of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 12, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,437.9 | $ 5,844.4 | |
Tim Hortons [Member] | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 643.8 | ||
Property and equipment | 1,778 | ||
Intangible assets | 6,817.6 | ||
Other assets, net | 89.1 | ||
Accounts payable | (228.2) | ||
Advertising fund liabilities | (49.7) | ||
Other accrued liabilities | (224.7) | ||
Total debt and capital lease obligations | (1,233.8) | ||
Other liabilities, net | (300.7) | ||
Deferred income taxes, net | (1,251.7) | ||
Total identifiable net assets | 6,039.7 | ||
Noncontrolling interest | (1.1) | ||
Goodwill | 5,256.3 | ||
Total consideration | $ 11,294.9 |
The Transactions - Estimated Go
The Transactions - Estimated Goodwill Due to Changes to Preliminary Estimates of Fair Values and Allocation of Purchase Price (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Total decrease in goodwill | $ (6.9) |
Total Current Assets [Member] | |
Goodwill [Line Items] | |
Total decrease in goodwill | (3.2) |
Other [Member] | |
Goodwill [Line Items] | |
Total decrease in goodwill | 3.4 |
Other Accrued Liabilities [Member] | |
Goodwill [Line Items] | |
Total decrease in goodwill | 2.4 |
Other Liabilities [Member] | |
Goodwill [Line Items] | |
Total decrease in goodwill | $ (9.5) |
Earnings (Loss) Per Unit_Shar54
Earnings (Loss) Per Unit/Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Class B Exchangeable Limited Partnership Units [Member] | |||
Earnings Per Share Disclosure [Line Items] | |||
Net income (loss) allocation percentage | 56.70% | 56.70% | |
Partnership exchangeable units, units issued | 265,041,783 | 265,041,783 | 265,041,783 |
Burger King Worldwide [Member] | |||
Earnings Per Share Disclosure [Line Items] | |||
Ownership percentage | 100.00% | 100.00% | |
Conversion basis | One-for-one |
Earnings (Loss) Per Unit_Shar55
Earnings (Loss) Per Unit/Share - Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Net income (loss) attributable to common unitholders/shareholders | $ 22.3 | $ 75.1 | $ 5.6 | $ 135.5 |
Net income (loss) attributable to common unitholders / shareholders | $ 22.3 | $ 75.1 | $ 5.6 | $ 135.5 |
Denominator - Basic and Diluted partnership units: | ||||
Total weighted average basic and diluted units outstanding | 467 | 467 | ||
Denominator - common shares: | ||||
Weighted average common shares - basic | 352.3 | 352.3 | ||
Effect of other dilutive securities | 7.1 | 7 | ||
Weighted average common shares - diluted: | 359.4 | 359.3 | ||
Earnings (loss) per unit / share-basic | ||||
Earnings (loss) per unit / share-basic | $ 0.21 | $ 0.38 | ||
Earnings (loss) per unit / share - diluted: | ||||
Earnings (loss) per unit / share - diluted | $ 0.21 | $ 0.38 | ||
Anti-dilutive stock options outstanding | 3.6 | 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 | $ 75.1 | $ 135.5 | ||
Net income (loss) attributable to common unitholders / shareholders | $ 75.1 | $ 135.5 | ||
Earnings (loss) per unit / share-basic | ||||
Earnings (loss) per unit / share-basic | $ 0.21 | $ 0.38 | ||
Earnings (loss) per unit / share - diluted: | ||||
Earnings (loss) per unit / share - diluted | $ 0.21 | $ 0.38 | ||
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 | $ 9.6 | $ 2.4 | ||
Net income (loss) attributable to common unitholders / shareholders | $ 9.6 | $ 2.4 | ||
Denominator - Basic and Diluted partnership units: | ||||
Total weighted average basic and diluted units outstanding | 202 | 202 | ||
Denominator - common shares: | ||||
Weighted average common shares - basic | 202 | 202 | ||
Weighted average common shares - diluted: | 202 | 202 | ||
Earnings (loss) per unit / share-basic | ||||
Earnings (loss) per unit / share-basic | $ 0.05 | $ 0.01 | ||
Earnings (loss) per unit / share - diluted: | ||||
Earnings (loss) per unit / share - diluted | $ 0.05 | $ 0.01 | ||
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 | $ 12.7 | $ 3.2 | ||
Net income (loss) attributable to common unitholders / shareholders | $ 12.7 | $ 3.2 | ||
Denominator - Basic and Diluted partnership units: | ||||
Total weighted average basic and diluted units outstanding | 265 | 265 | ||
Denominator - common shares: | ||||
Weighted average common shares - basic | 265 | 265 | ||
Weighted average common shares - diluted: | 265 | 265 | ||
Earnings (loss) per unit / share-basic | ||||
Earnings (loss) per unit / share-basic | $ 0.05 | $ 0.01 | ||
Earnings (loss) per unit / share - diluted: | ||||
Earnings (loss) per unit / share - diluted | $ 0.05 | $ 0.01 |
Inventories and Other Current56
Inventories and Other Current Assets, Net - Schedule of Inventories and Other Current Assets, Net (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventories And Other Assets Current [Abstract] | ||
Raw materials | $ 28.5 | $ 26.3 |
Finished goods | 63.2 | 71.8 |
Total Inventory | 91.7 | 98.1 |
Deferred financing costs - current | 31.5 | 20.5 |
Refundable and prepaid income taxes | 18.3 | 18.3 |
Prepaid rent | 6.4 | 13.4 |
Prepaids and other current assets | 49 | 41.4 |
Inventories and other current assets, net | $ 196.9 | $ 191.7 |
Intangible Assets, Net and Go57
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 12, 2014 |
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | $ 1,152.3 | $ 1,203.1 | |
Goodwill | 5,437.9 | 5,844.4 | |
Identifiable assets, accumulated amortization | (184.7) | (146) | |
Indefinite lived intangible assets , Net | 7,930.5 | 8,384 | |
Identifiable assets, Net | 967.6 | 1,057.1 | |
Intangible assets, net | 8,898.1 | 9,441.1 | |
Tim Hortons [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 5,256.3 | ||
Tim Hortons [Member] | Trade Names [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets , Net | 5,817.4 | 6,217 | |
Burger King [Member] | Trade Names [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets , Net | 2,113.1 | 2,167 | |
Franchise Agreements [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | 758.2 | 790.4 | |
Identifiable assets, accumulated amortization | (96.1) | (83.4) | |
Identifiable assets, Net | 662.1 | 707 | |
Favorable Leases [Member] | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Identifiable assets, Gross | 394.1 | 412.7 | |
Identifiable assets, accumulated amortization | (88.6) | (62.6) | |
Identifiable assets, Net | $ 305.5 | $ 350.1 |
Intangible Assets, Net and Go58
Intangible Assets, Net and Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 21.4 | $ 8.8 | $ 42.1 | $ 17.6 |
Other Assets, Net - Other Asset
Other Assets, Net - Other Assets, Net (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventories And Other Non Current Assets [Abstract] | ||
Derivative assets - noncurrent | $ 327.2 | $ 164.8 |
Deferred financing costs - noncurrent | 172.8 | 138.5 |
Equity method investments | 114.3 | 124.9 |
Other assets | 152.9 | 103.3 |
Other assets, net | $ 767.2 | $ 531.5 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 114.3 | $ 114.3 | $ 124.9 |
Tim Hortons [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Joint-venture interest | 50.00% | 50.00% | |
Cash distributions | $ 3.5 | $ 5.9 | |
Contingent rent expense | 5.5 | 10.4 | |
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 | $ 16.8 | $ 16.8 | $ 22.6 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Franchise and Property Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from affiliates: | ||||
Franchise royalties | $ 239.2 | $ 174.3 | $ 455 | $ 334.6 |
Property revenues | 196.8 | 54.3 | 373.9 | 107.8 |
Franchise fees and other revenue | 37.6 | 14.3 | 77.2 | 22.9 |
Total | 473.6 | 242.9 | 906.1 | 465.3 |
Affiliates [Member] | ||||
Revenues from affiliates: | ||||
Franchise royalties | 23.9 | 21.2 | 44.3 | 39.8 |
Property revenues | 7.2 | 6.5 | 14.2 | 12.7 |
Franchise fees and other revenue | 2.2 | 2.2 | 3.4 | 3.3 |
Total | $ 33.3 | $ 29.9 | $ 61.9 | $ 55.8 |
Other Accrued Liabilities and62
Other Accrued Liabilities and Other Liabilities, Net - Schedule of Other Accrued Liabilities and Other Liabilities, Net (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current: | ||
Taxes payable - current | $ 167.5 | $ 78.8 |
Accrued compensation and benefits | 36.7 | 39.4 |
Interest payable | 41.6 | 37.8 |
Restructuring and other provisions | 23.2 | 29.2 |
Deferred income - current | 20.3 | 19.3 |
Closed property reserve | 12.3 | 15.3 |
Dividend payable | 114.2 | 13.8 |
Other | 76.6 | 87.5 |
Other accrued liabilities | 492.4 | 321.1 |
Non-current: | ||
Unfavorable leases | 310.2 | 355.2 |
Derivatives liabilities - noncurrent | 28 | 25.6 |
Taxes payable - noncurrent | 107.3 | 50.3 |
Accrued pension | 62.5 | 62.9 |
Lease liability - noncurrent | 35 | 35.2 |
Share-based compensation liability | 20.3 | 34.9 |
Deferred income - noncurrent | 20.9 | 18.9 |
Other | 49.6 | 51.7 |
Other liabilities, net | $ 633.8 | $ 634.7 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Other | $ 61 | $ 65.3 |
Total debt | 8,681.1 | 10,042.9 |
Total debt | 8,681.1 | 10,042.9 |
Less: current maturities of debt | (29.3) | (1,106.2) |
Total long-term debt | $ 8,651.8 | 8,936.7 |
2014 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity dates | Dec. 12, 2021 | |
2014 Term Loan Facility | $ 5,076.4 | 6,682.8 |
2015 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity dates | Jan. 15, 2022 | |
Senior Notes | $ 1,250 | |
2014 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity dates | Apr. 1, 2022 | |
Senior Notes | $ 2,250 | 2,250 |
Tim Hortons Notes [Member] | ||
Debt Instrument [Line Items] | ||
Tim Hortons Notes | $ 43.7 | $ 1,044.8 |
Long-Term Debt - Summary of L64
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
2014 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt instrument, discount | $ 47.1 | $ 67.2 |
Long-Term Debt - 2015 Amended C
Long-Term Debt - 2015 Amended Credit Agreement - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total | Total |
Debt Instrument [Line Items] | ||
(Gain) loss on early extinguishment of debt | $ 39,900,000 | $ 39,600,000 |
Base Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Base rate applicable margin, Maximum | 1.75% | |
Debt instrument floor rate | 2.00% | 2.00% |
Eurocurrency Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument floor rate | 1.00% | |
2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility | $ 500,000,000 | $ 500,000,000 |
Fluctuating interest rates | 0.50% | 0.50% |
Fluctuating interest rate points | 1.00% | |
Fluctuating interest rate under credit agreement option | Eurocurrency rate applicable for an interest period of one month plus 1.00% and (d) in respect of the 2014 Term Loan Facility, 2.00% per annum (“Base Rate Loans”), plus an applicable margin equal to 1.75% for any 2014 Term Loan Facility and 2.00% for loans under the 2014 Revolving Credit Facility, or (ii) a Eurocurrency rate determined by reference to LIBOR, adjusted for statutory reserve requirements (“Eurocurrency Rate Loans”), plus an applicable margin equal to 2.75% for any 2014 Term Loan Facility and 3.00% for loans under the 2014 Revolving Credit Facility. Borrowings of the 2014 Credit Facility will be subject to a floor of 1.00% in the case of Eurocurrency Rate Loans and 2.00% in the case of Base Rate Loans. We have elected our applicable rate per annum as Eurocurrency rate determined by reference to LIBOR. As of June 30, 2015, interest rate on our 2014 Term Loan Facility was 3.75%. | |
2015 Credit Agreement [Member] | 2015 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of outstanding credit facility and related premiums, fees and expenses | $ 1,550,000,000 | |
2015 Credit Agreement [Member] | Eurocurrency Rate Plus [Member] | ||
Debt Instrument [Line Items] | ||
Base rate applicable margin, Maximum | 2.75% | |
2014 Revolving Credit Facility [Member] | 2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument floor rate | 2.00% | 2.00% |
Margin percentage for fluctuating interest rate alternative | 3.00% | |
Amount outstanding at the credit facility | $ 0 | $ 0 |
Letter of credit sublimit as part of revolving credit facility | 125,000,000 | 125,000,000 |
Amount withdrawn from revolving credit facility | 4,800,000 | 4,800,000 |
Remaining borrowing capacity | 495,200,000 | 495,200,000 |
2014 Term Loan Facility [Member] | 2015 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of aggregate principal amount of secured term loans | $ 5,140,400,000 | $ 5,140,400,000 |
Fluctuating interest rates | 3.75% | 3.75% |
Fluctuating interest rates | 1.75% | 1.75% |
Margin percentage for fluctuating interest rate alternative | 2.75% | |
(Gain) loss on early extinguishment of debt | $ 39,900,000 |
Long-Term Debt - 2015 Senior No
Long-Term Debt - 2015 Senior Notes - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - USD ($) | Total |
Debt Instrument [Line Items] | |
Proceeds from Senior Notes | $ 1,250,000,000 |
Redemption rate of discount notes | 100.00% |
Redemption price percentage of principal amount redeemed | 40.00% |
Change of Control [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentage of principal amount redeemed | 101.00% |
2014 Term Loan Facility [Member] | |
Debt Instrument [Line Items] | |
Repayment of outstanding credit facility and related premiums, fees and expenses | $ 1,550,000,000 |
2015 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Proceeds from Senior Notes | $ 1,250,000,000 |
Interest rate on senior notes | 4.625% |
Senior secured notes, maturity date | Jan. 15, 2022 |
Aggregate principal amount of debt issued | $ 0 |
Redemption price percentage of principal amount redeemed | 104.625% |
Aggregate principal amount of the outstanding 2014 Senior Notes validly tender, percentage | 90.00% |
2015 Senior Notes [Member] | Beginning on October 1, 2017 [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentage of principal amount redeemed | 102.313% |
2015 Senior Notes [Member] | Beginning on October 1, 2018 [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentage of principal amount redeemed | 101.156% |
2015 Senior Notes [Member] | After October 1, 2019 [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentage of principal amount redeemed | 100.00% |
Long-Term Debt - 2014 Senior No
Long-Term Debt - 2014 Senior Notes - Additional Information (Detail) - Jun. 30, 2015 - 2014 Senior Notes [Member] - USD ($) $ in Millions | Total |
Debt Instrument [Line Items] | |
2014 Senior Notes | $ 2,250 |
Interest rates | 6.00% |
Maturity dates | Apr. 1, 2022 |
Long-Term Debt - Tim Hortons No
Long-Term Debt - Tim Hortons Notes - Additional Information (Detail) CAD in Millions, $ in Millions | Mar. 12, 2015USD ($) | Jun. 30, 2015CAD |
2014 Term Loan Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Prepayment on term loan facility | $ | $ 42.7 | |
Senior Unsecured Notes [Member] | Series 1 Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate principal amount of debt issued | CAD 300 | |
Maturity dates | Jun. 1, 2017 | |
Senior convertible note, stated interest rate | 4.20% | |
Prepayment on term loan facility | CAD 252.6 | |
Senior Unsecured Notes [Member] | Series 2 Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate principal amount of debt issued | CAD 450 | |
Maturity dates | Dec. 1, 2023 | |
Senior convertible note, stated interest rate | 4.52% | |
Prepayment on term loan facility | CAD 447.4 | |
Senior Unsecured Notes [Member] | Series 3 Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate principal amount of debt issued | CAD 450 | |
Maturity dates | Apr. 1, 2019 | |
Senior convertible note, stated interest rate | 2.85% | |
Prepayment on term loan facility | CAD 446.1 |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs - Additional Information (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Deferred Finance Costs [Abstract] | |
Deferred financing costs, Gross | $ 80.3 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Amortization of deferred financing costs and debt issuance discount | $ 8.3 | $ 2.6 | $ 15.3 | $ 5.2 |
Capital lease obligations | 5.9 | 1.3 | 11.8 | 2.7 |
Other | 0.7 | 0.4 | 1.6 | 0.6 |
Interest income | (1) | (1.1) | (2.4) | (2) |
Interest expense, net | 123.8 | 50.6 | 247.7 | 100.6 |
Interest Rate Caps [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 2.4 | 4.5 | ||
2014 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 69.4 | 145.2 | ||
2015 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 6.3 | 6.3 | ||
2014 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 33.7 | 67.5 | ||
Tim Hortons Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 0.5 | $ 2.4 | ||
2012 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 12.8 | 25.5 | ||
2010 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 19.6 | 39.2 | ||
2011 Discount Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 12.6 | $ 24.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 32.50% | 25.60% | 39.00% | 25.60% |
Common Equity - Additional Info
Common Equity - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Equity [Abstract] | |
Noncontrolling interest recognized in connection with VIE restaurants | $ 1.8 |
Common Equity - Summary of Chan
Common Equity - Summary of Change in the Components of Accumulated Other Comprehensive Income (Loss) ("AOCI") (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, Beginning balance | $ (256.6) | |||
Foreign currency translation adjustment | $ 193.1 | $ (9.1) | (898.7) | $ (9.7) |
Net change in fair value of derivatives, net of tax | 167.1 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 17.5 | 1.4 | 19 | 2.6 |
Pension and post-retirement benefit plans, net of tax | (0.1) | |||
Amortization of prior service (credits) costs, net of tax | (0.5) | (0.4) | (0.9) | (0.9) |
Amortization of actuarial (gains) losses, net of tax | 0.5 | (0.1) | 0.9 | (0.1) |
AOCI, Ending balance | (969.3) | (969.3) | ||
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, Beginning balance | 11.4 | |||
Net change in fair value of derivatives, net of tax | 167.1 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 17.5 | $ 1.4 | 19 | $ 2.6 |
AOCI, Ending balance | 197.5 | 197.5 | ||
Defined Benefit Pension [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, Beginning balance | (10.6) | |||
Pension and post-retirement benefit plans, net of tax | (0.1) | |||
Amortization of prior service (credits) costs, net of tax | (0.9) | |||
Amortization of actuarial (gains) losses, net of tax | 0.9 | |||
AOCI, Ending balance | (10.7) | (10.7) | ||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI, Beginning balance | (257.4) | |||
Foreign currency translation adjustment | (898.7) | |||
AOCI, Ending balance | $ (1,156.1) | $ (1,156.1) |
Common Equity - Reclassificatio
Common Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Income tax (expense) benefit | $ 6.7 | $ 0.8 | $ 7.3 | $ 1.6 |
Total reclassifications, Net of tax | (17.5) | (1.4) | (19) | (2.6) |
Total reclassifications, Net of tax | (17.5) | (0.9) | (19) | (1.6) |
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | (24.2) | (2.2) | (26.3) | (4.2) |
Derivative contracts, Income tax (expense) benefit | 6.7 | 0.8 | 7.3 | 1.6 |
Total reclassifications, Net of tax | (17.5) | (1.4) | (19) | (2.6) |
Gains (Losses) on Cash Flow Hedges [Member] | Interest Expense, Net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | (5) | (2.2) | (5) | (4.2) |
Gains (Losses) on Cash Flow Hedges [Member] | Other Operating Expenses (Income) , Net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | (22.7) | (27.6) | ||
Gains (Losses) on Cash Flow Hedges [Member] | Cost of Sales [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Derivative contracts, Total before tax | 3.5 | 6.3 | ||
Defined Benefit Pension [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service credits (costs), SG&A | 0.7 | 0.8 | 1.4 | 1.5 |
Amortization of actuarial gains (losses), SG&A | $ (0.7) | 0.1 | $ (1.4) | 0.1 |
Defined benefit pension plan expense before tax | 0.9 | 1.6 | ||
Defined benefit, Income tax (expense) benefit | (0.4) | (0.6) | ||
Total reclassifications, Net of tax | $ 0.5 | $ 1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 334.7 | $ 179.2 |
Total liabilities at fair value | 34.6 | 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 | 4.4 | 5.2 |
Inventories and Other Current Assets , Net [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 | 88.9 | |
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 | 4.4 | 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 | 25.6 | |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0.8 | |
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1.2 | |
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable , Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2.1 | 6 |
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 28 | |
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 | 326.4 | 75.9 |
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Inventories and Other Current Assets , Net [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 | 5.4 | 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 | 4.4 | 5.2 |
Level 1 [Member] | Inventories and Other Current Assets , Net [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 | 329.3 | 172.9 |
Total liabilities at fair value | 34.6 | 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 | 88.9 | |
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 | 4.4 | 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 | 25.6 | |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0.8 | |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Other Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 1.2 | |
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable , Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2.1 | 6 |
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | 28 | |
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 | $ 326.4 | 75.9 |
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Inventories and Other Current Assets , Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 2.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Fair value of variable rate term debt and bonds | $ 8,700 | $ 10,100 |
Carrying amount, net of original issue discount | $ 8,681.1 | $ 10,042.9 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) € in Millions | Mar. 12, 2015USD ($) | Oct. 31, 2014USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($) | Jun. 30, 2015EUR (€) | Jun. 30, 2015CAD | May. 31, 2015USD ($)Interest_Rate_Swaps | Nov. 30, 2014USD ($)Interest_Rate_Swaps | Dec. 31, 2012USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Net cash provided by (used for) investing activities | $ (24,500,000) | $ (6,600,000) | ||||||||
Number of forward starting interest rate swaps | Contract | 3 | |||||||||
Settlement of derivatives | $ (11,500,000) | |||||||||
Maximum [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | 116,000,000 | |||||||||
Fixed Income Interest Rate [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | $ 115,000,000 | |||||||||
Variable Income Interest Rate [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Cross-currency rate swaps, maturity date | Sep. 28, 2017 | |||||||||
Foreign currency forward contract notional amount | $ 200,000,000 | |||||||||
Interest Expense, Net [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Net amount of pre-tax losses in AOCI expect to be reclassified into interest expense | $ (12,700,000) | |||||||||
2014 Term Loan Facility [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Mandatory prepayment | $ 42,700,000 | |||||||||
Interest Rate Swaps [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Amount on 2014 term loan facility for interest payments | $ 2,500,000,000 | |||||||||
Cross-currency rate swaps, maturity date | Mar. 31, 2021 | Mar. 31, 2021 | ||||||||
Foreign currency forward contract notional amount | $ 6,750,000,000 | $ 6,690,400,000 | $ 2,500,000,000 | $ 6,733,100,000 | $ 2,300,000,000 | |||||
Number of sequential interest rate swap | Interest_Rate_Swaps | 6 | 6 | ||||||||
Net cash provided by (used for) investing activities | $ 36,200,000 | |||||||||
Net unrealized loss remaining in AOCI | $ 84,600,000 | |||||||||
Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Cross-currency rate swaps, maturity date | Mar. 31, 2021 | |||||||||
Foreign currency forward contract notional amount | 1,000,000,000 | |||||||||
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | 5,690,400,000 | |||||||||
Interest Rate Swaps [Member] | 2014 Term Loan Facility [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Cross-currency rate swaps, maturity date | Apr. 1, 2015 | |||||||||
Settlement of derivative notional amount | (42,700,000) | |||||||||
Mandatory prepayment | $ 42,700,000 | |||||||||
Interest Rate Swaps [Member] | Floating Rate Debt Beginning 2015 [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | 1,000,000,000 | |||||||||
Interest Rate Swaps [Member] | Floating Rate Debt Beginning 2016 [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | $ 1,300,000,000 | |||||||||
Cross Currency Interest Rate Contract [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Cross-currency rate swaps, maturity date | Mar. 31, 2021 | |||||||||
Settlement of derivatives | $ 52,100,000 | |||||||||
Unrealized gain loss, derivatives | 31,800,000 | |||||||||
Cross Currency Interest Rate Contract [Member] | Terminated Derivatives [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | 315,000,000 | |||||||||
Cross Currency Interest Rate Contract [Member] | Fixed Income Interest Rate [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | 1,200,000,000 | € 1,107.8 | ||||||||
Cross Currency Interest Rate Contract [Member] | Canada, Dollars | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign currency forward contract notional amount | $ 5,000,000,000 | CAD 5,641,700,000 | ||||||||
Cross Currency Interest Rate Contract [Member] | Canada, Dollars | Minimum [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Outstanding cross currency rate swaps | 4.802% | |||||||||
Cross Currency Interest Rate Contract [Member] | Canada, Dollars | Maximum [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Outstanding cross currency rate swaps | 7.002% | |||||||||
Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Minimum [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Outstanding cross currency rate swaps | 3.948% | |||||||||
Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Maximum [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Outstanding cross currency rate swaps | 6.525% | |||||||||
Interest Rate Caps [Member] | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Cross-currency rate swaps, maturity date | Oct. 19, 2016 | |||||||||
Forward interest swaps maturity period | 6 years |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified from AOCI into Earnings | $ (46.6) | $ (4.2) | ||
Gain (Loss) Recognized in Other operating expenses (income), net | $ (26.6) | (41.6) | ||
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 | (3.9) | (12.4) | ||
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 | 0.7 | 2.8 | ||
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) | $ (1.8) | (2.3) | ||
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Expense, Net [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified from AOCI into Earnings | (5) | (2.2) | (5) | (4.2) |
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) | (2.9) | (51.6) | (85.9) | (107) |
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Operating Income (Expense) Net [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified from AOCI into Earnings | (22.7) | (27.6) | ||
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) | (4.2) | 5.5 | ||
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 | 3.5 | 6.3 | ||
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) | $ (185.3) | $ 2.1 | $ 269 | $ 1.7 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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 | $ 22.5 | $ 6 | ||
Share-based compensation related to the remeasurement of liability | $ 1.3 | 12.4 | ||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7 | $ 3.2 | $ 22.5 | $ 6 |
Franchise and Property Revenu80
Franchise and Property Revenues - Summary of Franchise and Property Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Franchisor Revenue [Abstract] | ||||
Franchise royalties | $ 239.2 | $ 174.3 | $ 455 | $ 334.6 |
Property revenues | 196.8 | 54.3 | 373.9 | 107.8 |
Franchise fees and other revenue | 37.6 | 14.3 | 77.2 | 22.9 |
Franchise and property revenues | $ 473.6 | $ 242.9 | $ 906.1 | $ 465.3 |
Other Operating Expenses (Inc81
Other Operating Expenses (Income), net - Other Operating Expenses (Income), net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ (5.1) | $ 5.1 | $ (2.9) | $ 7.9 |
Litigation settlements and reserves, net | 0.5 | 2.1 | 1.7 | 2.2 |
Net losses (gains) on derivatives | 26.6 | 41.6 | ||
Net losses (gains) on foreign exchange | 9.6 | (2.9) | 25.4 | (2.5) |
Other, net | 2.6 | 1.1 | 3.9 | 2.3 |
Other operating (income) expenses, net | $ 34.2 | $ 5.4 | $ 69.7 | $ 9.9 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Restaurants | Jun. 30, 2014USD ($) | |
Variable Interest Entity [Line Items] | ||||
Sales | $ 567.8 | $ 18.3 | $ 1,067.3 | $ 36.8 |
Cost of sales | 475.9 | $ 15.7 | 909.5 | $ 31.2 |
Restaurant VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Sales | 64 | 125.6 | ||
Cost of sales | $ 62.8 | $ 123.2 | ||
Number of consolidated restaurants | Restaurants | 237 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Variable Interest Entities (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 685.7 | $ 1,803.2 | $ 904.7 | $ 786.9 | |
Inventories and other current assets, net | 196.9 | 191.7 | |||
Advertising fund restricted assets - current | 54 | 53 | |||
Property and equipment, net | 2,393 | 2,539.6 | |||
Other assets, net | 767.2 | 531.5 | |||
Total assets | 19,028.1 | 21,157.4 | |||
Other accrued liabilities | 76.6 | 87.5 | |||
Advertising fund liabilities - current | 48.3 | 45.6 | |||
Other liabilities, net | 633.8 | 634.7 | |||
Total liabilities | 12,186.4 | 13,539.7 | |||
Total liabilities and equity | 19,028.1 | 21,157.4 | |||
VIEs [Member] | Restaurant VIEs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 4.7 | 5.9 | |||
Inventories and other current assets, net | 4.3 | 5.2 | |||
Property and equipment, net | 8.2 | 10.7 | |||
Other assets, net | 0.2 | ||||
Total assets | 17.2 | 22 | |||
Notes payable to Tim Hortons Inc. - current | [1],[2] | 7.4 | 8.9 | ||
Other accrued liabilities | 6.1 | 7.8 | |||
Notes payable to Tim Hortons Inc. - long-term | [1],[2] | 0.2 | 0.3 | ||
Other liabilities, net | 1.9 | 3.9 | |||
Total liabilities | 15.6 | 20.9 | |||
Equity of VIEs | 1.6 | 1.1 | |||
Total liabilities and equity | 17.2 | 22 | |||
VIEs [Member] | Advertising VIEs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Advertising fund restricted assets - current | 54 | 53 | |||
Property and equipment, net | 44.1 | 53.1 | |||
Other assets, net | 0.2 | 0.4 | |||
Total assets | 98.3 | 106.5 | |||
Notes payable to Tim Hortons Inc. - current | [1],[2] | 10.6 | 11.4 | ||
Other accrued liabilities | 0.1 | 0.1 | |||
Advertising fund liabilities - current | 48.3 | 45.6 | |||
Notes payable to Tim Hortons Inc. - long-term | [1],[2] | 37.1 | 45.5 | ||
Other liabilities, net | 2.2 | 3.9 | |||
Total liabilities | 98.3 | 106.5 | |||
Total liabilities and equity | $ 98.3 | $ 106.5 | |||
[1] | 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. | ||||
[2] | Various assets and liabilities are eliminated upon the consolidation of these VIEs. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Mar. 31, 2015SegmentPresident | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014SegmentRegion | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Number of operating segments | Segment | 2 | |||||
Number of brand presidents | President | 2 | |||||
Number of reportable segments | Segment | 2 | |||||
Total revenues | $ 1,041.4 | $ 261.2 | $ 1,973.4 | $ 502.1 | ||
United States [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 251.2 | 484 | ||||
Canada [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Total revenues | 678.6 | 1,280.8 | ||||
Tim Hortons [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Number of operating segments | Segment | 5 | |||||
Total revenues | 763.2 | 1,445.6 | ||||
Burger King [Member] | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Number of geographical regions | Region | 4 | |||||
Total revenues | $ 278.2 | $ 261.2 | $ 527.8 | $ 502.1 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 1,041.4 | $ 261.2 | $ 1,973.4 | $ 502.1 |
Tim Hortons [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 763.2 | 1,445.6 | ||
Burger King [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 278.2 | $ 261.2 | $ 527.8 | $ 502.1 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Acquisition accounting impact on cost of sales | $ 0.8 | ||||
Impact of equity method investments | $ 5.3 | $ 5.9 | 2.5 | $ 9.9 | |
Other operating expenses (income), net | 34.2 | 5.4 | 69.7 | 9.9 | |
EBITDA | 349.5 | 167.3 | 625.1 | 315 | |
Depreciation and amortization | 51.2 | 15.8 | 102.1 | 32.2 | |
Income from operations | 298.3 | 151.5 | 523 | 282.8 | |
Interest expense, net | 123.8 | 50.6 | 247.7 | 100.6 | |
(Gain) loss on early extinguishment of debt | 39.9 | 39.6 | |||
Income tax expense | 43.8 | 25.8 | 91.9 | 46.7 | |
Net income (loss) | 90.8 | 75.1 | 143.8 | 135.5 | |
Operating Segments [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Adjusted EBITDA | 427.2 | 182.8 | 781.8 | 342.5 | |
Operating Segments [Member] | Tim Hortons [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Adjusted EBITDA | 234.3 | 418.2 | |||
Operating Segments [Member] | Burger King [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Adjusted EBITDA | 192.9 | 182.8 | 363.6 | 342.5 | |
Unallocated Management G&A [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Share-based compensation and non-cash incentive compensation expense | 8.1 | 4.2 | 22 | 7.7 | |
Acquisition accounting impact on cost of sales | (1) | 0.8 | |||
Impact of equity method investments | [1] | 9 | 5.9 | 8.8 | 9.9 |
Other operating expenses (income), net | 34.2 | $ 5.4 | 69.7 | $ 9.9 | |
Unallocated Management G&A [Member] | Tim Hortons [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
TH transaction and restructuring costs | $ 27.4 | $ 55.4 | |||
[1] | Represents (i) (income) loss from 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 Balance
Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 685.7 | $ 1,803.2 | $ 904.7 | $ 786.9 |
Trade and notes receivable, net | 360.2 | 440.7 | ||
Inventories and other current assets, net | 196.9 | 191.7 | ||
Advertising fund restricted assets | 54 | 53 | ||
Deferred income taxes, net | 104.3 | 87.2 | ||
Total current assets | 1,401.1 | 2,660.3 | ||
Property and equipment, net | 2,393 | 2,539.6 | ||
Intangible assets, net | 8,898.1 | 9,441.1 | ||
Goodwill | 5,437.9 | 5,844.4 | ||
Net investment in property leased to franchisees | 130.8 | 140.5 | ||
Other assets, net | 767.2 | 531.5 | ||
Total assets | 19,028.1 | 21,157.4 | ||
Current liabilities: | ||||
Accounts and drafts payable | 250.8 | 223 | ||
Accrued advertising | 39 | 25.9 | ||
Other accrued liabilities | 492.4 | 321.1 | ||
Gift card liability | 125.8 | 187 | ||
Advertising fund liabilities | 48.3 | 45.6 | ||
Current portion of long term debt and capital leases | 46.3 | 1,124.9 | ||
Total current liabilities | 1,002.6 | 1,927.5 | ||
Term debt, net of current portion | 8,651.8 | 8,936.7 | ||
Capital leases, net of current portion | 161.4 | 175.7 | ||
Other liabilities, net | 633.8 | 634.7 | ||
Deferred income taxes, net | 1,736.8 | 1,865.1 | ||
Total liabilities | 12,186.4 | 13,539.7 | ||
Partnership preferred units | 3,297 | 3,297 | ||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | (969.3) | (256.6) | ||
Total Partners' capital | 3,542.9 | 4,319.4 | ||
Noncontrolling interests | 1.8 | 1.3 | ||
Total equity | 3,544.7 | 4,320.7 | ||
Total liabilities, Partnership preferred units and equity | 19,028.1 | 21,157.4 | ||
Scenario, Adjustment [Member] | ||||
Current liabilities: | ||||
Total current liabilities | 1,002.6 | |||
Borrowers [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 685.7 | 1,803.2 | ||
Trade and notes receivable, net | 360.2 | |||
Inventories and other current assets, net | 196.9 | |||
Advertising fund restricted assets | 54 | |||
Deferred income taxes, net | 104.3 | |||
Total current assets | 1,401.1 | |||
Property and equipment, net | 2,393 | |||
Intangible assets, net | 8,898.1 | |||
Goodwill | 5,437.9 | |||
Net investment in property leased to franchisees | 130.8 | |||
Other assets, net | 764 | |||
Total assets | 19,024.9 | |||
Current liabilities: | ||||
Accounts and drafts payable | 250.8 | |||
Accrued advertising | 39 | |||
Other accrued liabilities | 378.2 | |||
Gift card liability | 125.8 | |||
Advertising fund liabilities | 48.3 | |||
Current portion of long term debt and capital leases | 46.3 | |||
Total current liabilities | 888.4 | |||
Term debt, net of current portion | 8,651.8 | |||
Capital leases, net of current portion | 161.4 | |||
Other liabilities, net | 633.8 | |||
Payables to affiliates | 114.2 | |||
Deferred income taxes, net | 1,736.8 | |||
Total liabilities | 12,186.4 | |||
Partners' capital: | ||||
Common shares | 7,824.4 | |||
(Accumulated deficit) retained earnings | (18.4) | |||
Accumulated other comprehensive income (loss) | (969.3) | |||
Total Partners' capital | 6,836.7 | |||
Noncontrolling interests | 1.8 | |||
Total equity | 6,838.5 | |||
Total liabilities, Partnership preferred units and equity | 19,024.9 | |||
Restaurant Brands International Limited Partnership [Member] | ||||
Current assets: | ||||
Intercompany receivable | 114.2 | |||
Investment in subsidiaries | 6,838.5 | |||
Other assets, net | 3.2 | |||
Total assets | 6,955.9 | |||
Current liabilities: | ||||
Other accrued liabilities | 114.2 | |||
Total current liabilities | 114.2 | |||
Total liabilities | 114.2 | |||
Partnership preferred units | 3,297 | |||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | (969.3) | |||
Total Partners' capital | 3,542.9 | |||
Noncontrolling interests | 1.8 | |||
Total equity | 3,544.7 | |||
Total liabilities, Partnership preferred units and equity | 6,955.9 | |||
Class A Common Units [Member] | ||||
Partners' capital: | ||||
Class A Common Units | 1,964.8 | 1,981.4 | ||
Total equity | 1,964.8 | 1,981.4 | ||
Class A Common Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Class A Common Units | 1,964.8 | |||
Class B Exchangeable Limited Partnership Units [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 2,547.4 | 2,594.6 | ||
Total equity | 2,547.4 | $ 2,594.6 | ||
Class B Exchangeable Limited Partnership Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 2,547.4 | |||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany receivable | (114.2) | |||
Investment in subsidiaries | (6,838.5) | |||
Total assets | (6,952.7) | |||
Current liabilities: | ||||
Payables to affiliates | (114.2) | |||
Total liabilities | (114.2) | |||
Partners' capital: | ||||
Common shares | (7,824.4) | |||
(Accumulated deficit) retained earnings | 18.4 | |||
Accumulated other comprehensive income (loss) | 969.3 | |||
Total Partners' capital | (6,836.7) | |||
Noncontrolling interests | (1.8) | |||
Total equity | (6,838.5) | |||
Total liabilities, Partnership preferred units and equity | $ (6,952.7) |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||||
Sales | $ 567.8 | $ 18.3 | $ 1,067.3 | $ 36.8 |
Franchise and property revenues | 473.6 | 242.9 | 906.1 | 465.3 |
Intercompany revenues | 0 | 0 | ||
Total revenues | 1,041.4 | 261.2 | 1,973.4 | 502.1 |
Cost of sales | 475.9 | 15.7 | 909.5 | 31.2 |
Franchise and property expenses | 125.6 | 35.7 | 255.6 | 73.1 |
Selling, general and administrative expenses | 102.1 | 47 | 213.1 | 95.2 |
(Income) loss from equity method investments | 5.3 | 5.9 | 2.5 | 9.9 |
Other operating (income) expenses, net | 34.2 | 5.4 | 69.7 | 9.9 |
Total operating costs and expenses | 743.1 | 109.7 | 1,450.4 | 219.3 |
Income (loss) from operations | 298.3 | 151.5 | 523 | 282.8 |
Interest expense, net | 123.8 | 50.6 | 247.7 | 100.6 |
Loss on early extinguishment of debt | 39.9 | 39.6 | ||
Income (loss) before income taxes | 134.6 | 100.9 | 235.7 | 182.2 |
Income tax expense (benefit) | 43.8 | 25.8 | 91.9 | 46.7 |
Net income (loss) | 90.8 | 143.8 | ||
Net income (loss) | 90.8 | 75.1 | 143.8 | 135.5 |
Net income attributable to noncontrolling interests | 1 | 2 | ||
Partnership preferred unit distributions | 67.5 | 136.2 | ||
Net income (loss) attributable to common unitholders / shareholders | 22.3 | 75.1 | 5.6 | 135.5 |
Total comprehensive income (loss) | 136.2 | $ 35.4 | (568.9) | $ 61.5 |
Borrowers [Member] | ||||
Revenues: | ||||
Sales | 567.8 | 1,067.3 | ||
Franchise and property revenues | 473.6 | 906.1 | ||
Intercompany revenues | 0 | 0 | ||
Total revenues | 1,041.4 | 1,973.4 | ||
Cost of sales | 475.9 | 909.5 | ||
Franchise and property expenses | 125.6 | 255.6 | ||
Selling, general and administrative expenses | 102.1 | 213.1 | ||
(Income) loss from equity method investments | 5.3 | 2.5 | ||
Other operating (income) expenses, net | 34.2 | 69.7 | ||
Total operating costs and expenses | 743.1 | 1,450.4 | ||
Income (loss) from operations | 298.3 | 523 | ||
Interest expense, net | 123.8 | 247.7 | ||
Loss on early extinguishment of debt | 39.9 | 39.6 | ||
Income (loss) before income taxes | 134.6 | 235.7 | ||
Income tax expense (benefit) | 43.8 | 91.9 | ||
Net income (loss) | 90.8 | 143.8 | ||
Net income (loss) | 90.8 | 143.8 | ||
Net income attributable to noncontrolling interests | 1 | 2 | ||
Net income (loss) attributable to common unitholders / shareholders | 89.8 | 141.8 | ||
Total comprehensive income (loss) | 136.2 | (568.9) | ||
Restaurant Brands International Limited Partnership [Member] | ||||
Revenues: | ||||
Intercompany revenues | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | 90.8 | 143.8 | ||
Net income (loss) | 90.8 | 143.8 | ||
Net income attributable to noncontrolling interests | 1 | 2 | ||
Partnership preferred unit distributions | 67.5 | 136.2 | ||
Net income (loss) attributable to common unitholders / shareholders | 22.3 | 5.6 | ||
Total comprehensive income (loss) | 136.2 | (568.9) | ||
Eliminations [Member] | ||||
Revenues: | ||||
Intercompany revenues | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | (90.8) | (143.8) | ||
Net income (loss) | (90.8) | (143.8) | ||
Net income attributable to noncontrolling interests | (1) | (2) | ||
Net income (loss) attributable to common unitholders / shareholders | (89.8) | (141.8) | ||
Total comprehensive income (loss) | $ (136.2) | $ 568.9 |
Condensed Consolidating State89
Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 90.8 | $ 75.1 | $ 143.8 | $ 135.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 51.2 | 15.8 | 102.1 | 32.2 |
(Gain) loss on early extinguishment of debt | 39.9 | 39.6 | ||
Amortization of deferred financing costs and debt issuance discount | 15.3 | 30.1 | ||
(Income) loss from equity method investments | 5.3 | 5.9 | 2.5 | 9.9 |
Loss (gain) on remeasurement of foreign denominated transactions | 27.5 | (2.3) | ||
Amortization of defined benefit pension and postretirement items | (0.1) | (1.6) | ||
Net losses (gains) on derivatives | 46.6 | 4.2 | ||
Net losses (gains) on refranchisings and dispositions of assets | (0.6) | 3.6 | ||
Bad debt expense (recoveries), net | 0.7 | (0.2) | ||
Share-based compensation expense | 22.5 | 6 | ||
Acquisition accounting impact on cost of sales | 0.8 | |||
Deferred income taxes | (92.5) | 5 | ||
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 | 59.9 | 11.4 | ||
Inventories and other current assets | 5 | 7.7 | ||
Accounts and drafts payable | 39.3 | (8.4) | ||
Accrued advertising | 6.2 | (13.1) | ||
Other accrued liabilities | 35.9 | 4.8 | ||
Other long-term assets and liabilities | (25.5) | (11.7) | ||
Net cash provided by operating activities | 508.2 | 213.1 | ||
Cash flows from investing activities: | ||||
Payments for property and equipment | (57) | (7.2) | ||
Proceeds (payments) from refranchisings, disposition of assets and restaurant closures | 10.7 | (6.8) | ||
Return of investment on direct financing leases | 8 | 7.7 | ||
Settlement of derivatives, net | 11.5 | |||
Other investing activities | 2.3 | (0.3) | ||
Net cash provided by (used for) investing activities | (24.5) | (6.6) | ||
Cash flows from financing activities: | ||||
Proceeds from Senior Notes | 1,250 | |||
Repayments of term debt, Tim Hortons Notes and capital leases | (2,592.4) | (38.3) | ||
Payment of financing costs | (81.3) | |||
Distributions on partnership units | (124.5) | |||
Capital contributions from RBI Inc. | 0.5 | |||
Other financing activities | (0.7) | |||
Net cash provided by (used for) financing activities | (1,548.4) | (87.6) | ||
Effect of exchange rates on cash and cash equivalents | (52.8) | (1.1) | ||
Increase (decrease) in cash and cash equivalents | (1,117.5) | 117.8 | ||
Cash and cash equivalents at beginning of period | 1,803.2 | 786.9 | ||
Cash and cash equivalents at end of period | 685.7 | $ 904.7 | 685.7 | $ 904.7 |
Borrowers [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 90.8 | 143.8 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 102.1 | |||
(Gain) loss on early extinguishment of debt | 39.9 | 39.6 | ||
Amortization of deferred financing costs and debt issuance discount | 15.3 | |||
(Income) loss from equity method investments | 5.3 | 2.5 | ||
Loss (gain) on remeasurement of foreign denominated transactions | 27.5 | |||
Amortization of defined benefit pension and postretirement items | (0.1) | |||
Net losses (gains) on derivatives | 46.6 | |||
Net losses (gains) on refranchisings and dispositions of assets | (0.6) | |||
Bad debt expense (recoveries), net | 0.7 | |||
Share-based compensation expense | 22.5 | |||
Acquisition accounting impact on cost of sales | 0.8 | |||
Deferred income taxes | (92.5) | |||
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 | 59.9 | |||
Inventories and other current assets | 5 | |||
Accounts and drafts payable | 39.3 | |||
Accrued advertising | 6.2 | |||
Other accrued liabilities | 35.9 | |||
Other long-term assets and liabilities | (25.5) | |||
Net cash provided by operating activities | 508.2 | |||
Cash flows from investing activities: | ||||
Payments for property and equipment | (57) | |||
Proceeds (payments) from refranchisings, disposition of assets and restaurant closures | 10.7 | |||
Return of investment on direct financing leases | 8 | |||
Settlement of derivatives, net | 11.5 | |||
Other investing activities | 2.3 | |||
Net cash provided by (used for) investing activities | (24.5) | |||
Cash flows from financing activities: | ||||
Proceeds from Senior Notes | 1,250 | |||
Repayments of term debt, Tim Hortons Notes and capital leases | (2,592.4) | |||
Payment of financing costs | (81.3) | |||
Other financing activities | (0.7) | |||
Intercompany financing | (124) | |||
Net cash provided by (used for) financing activities | (1,548.4) | |||
Effect of exchange rates on cash and cash equivalents | (52.8) | |||
Increase (decrease) in cash and cash equivalents | (1,117.5) | |||
Cash and cash equivalents at beginning of period | 1,803.2 | |||
Cash and cash equivalents at end of period | 685.7 | 685.7 | ||
Restaurant Brands International Limited Partnership [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 90.8 | 143.8 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in loss (earnings) of consolidated subsidiaries | (90.8) | (143.8) | ||
Cash flows from financing activities: | ||||
Distributions on partnership units | (124.5) | |||
Capital contributions from RBI Inc. | 0.5 | |||
Intercompany financing | 124 | |||
Eliminations [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (90.8) | (143.8) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in loss (earnings) of consolidated subsidiaries | $ 90.8 | $ 143.8 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 27, 2015 | Jul. 03, 2015 | Jul. 02, 2015 | Jun. 30, 2015 | Jun. 30, 2015 |
Subsequent Event [Line Items] | |||||
Cash dividend paid per common share | $ 0.10 | $ 0.19 | |||
Class B Exchangeable Limited Partnership Units [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared | $ 0.19 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend paid per preferred share | $ 0.98 | ||||
Dividend payable record date | May 29, 2015 | ||||
Dividends paid on preferred share | $ 67.5 | ||||
Subsequent Event [Member] | Class A Common Units [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend paid per common share | $ 0.10 | ||||
Dividend payable record date | Aug. 28, 2015 | ||||
Cash dividend declared | $ 0.12 | ||||
Dividend to be paid date | Oct. 2, 2015 | ||||
Subsequent Event [Member] | Class B Exchangeable Limited Partnership Units [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend paid per common share | $ 0.10 | ||||
Cash dividend declared | $ 0.12 | ||||
Subsequent Event [Member] | Preferred Class A [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividend payable record date | Oct. 1, 2015 | ||||
Cash dividend declared by board | $ 0.98 | ||||
Dividends Payable preferred share | $ 67.5 |