Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 20, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Partnerships Exchangeable Units [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 226,859,954 | |
Class A Common Units [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 202,006,067 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 909.3 | $ 1,420.4 | $ 811.5 | $ 753.7 |
Accounts and notes receivable, net of allowance of $16.1 million and $14.3 million, respectively | 362 | 403.5 | ||
Inventories, net | 83.3 | 71.8 | ||
Advertising fund restricted assets | 85.7 | 57.7 | ||
Prepaids and other current assets | 122.2 | 103.6 | ||
Total current assets | 1,562.5 | 2,057 | ||
Property and equipment, net of accumulated depreciation and amortization of $507.2 million and $474.5 million, respectively | 2,140.4 | 2,054.7 | ||
Intangible assets, net | 10,293.5 | 9,228 | ||
Goodwill | 5,787.3 | 4,675.1 | ||
Net investment in property leased to franchisees | 85.3 | 91.9 | ||
Derivative assets | 659.8 | 717.9 | ||
Other assets, net | 294 | 300.7 | ||
Total assets | 20,822.8 | 19,125.3 | ||
Current liabilities: | ||||
Accounts and drafts payable | 391.4 | 369.8 | ||
Other accrued liabilities | 496.4 | 469.3 | ||
Gift card liability | 139.1 | 194.4 | ||
Advertising fund liabilities | 137.9 | 83.3 | ||
Current portion of long term debt and capital leases | 110.1 | 93.9 | ||
Total current liabilities | 1,274.9 | 1,210.7 | ||
Term debt, net of current portion | 9,531.5 | 8,410.2 | ||
Capital leases, net of current portion | 226.5 | 218.4 | ||
Other liabilities, net | 806 | 784.9 | ||
Deferred income taxes, net | 2,089.2 | 1,715.1 | ||
Total liabilities | 13,928.1 | 12,339.3 | ||
Partnership preferred units; no par value; 68,530,939 authorized, issued and outstanding at March 31, 2017 and December 31, 2016 | 3,297 | 3,297 | ||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | (1,292.3) | (1,355.4) | ||
Total Partners' capital | 3,593.9 | 3,484.9 | ||
Noncontrolling interests | 3.8 | 4.1 | ||
Total equity | 3,597.7 | 3,489 | ||
Total liabilities, Partnership preferred units and equity | 20,822.8 | 19,125.3 | ||
Class A Common Units [Member] | ||||
Partners' capital: | ||||
Class A common units; 202,006,067 issued and outstanding at March 31, 2017 and December 31, 2016 | 3,408.8 | 3,364.1 | ||
Total equity | 3,408.8 | 3,364.1 | ||
Partnerships Exchangeable Units [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units; 226,870,394 issued and outstanding at March 31, 2017; 226,995,404 issued and outstanding at December 31, 2016 | 1,477.4 | 1,476.2 | ||
Total equity | $ 1,477.4 | $ 1,476.2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Allowances for trade and notes receivable | $ 16.1 | $ 14.3 |
Property and equipment, accumulated depreciation and amortization | $ 507.2 | $ 474.5 |
Partnership preferred units, par value | $ 0 | $ 0 |
Partnership preferred units, authorized | 68,530,939 | 68,530,939 |
Partnership preferred units, issued | 68,530,939 | 68,530,939 |
Partnership preferred units; outstanding | 68,530,939 | 68,530,939 |
Class A Common Units [Member] | ||
Class A common units, issued | 202,006,067 | 202,006,067 |
Class A common units, outstanding | 202,006,067 | 202,006,067 |
Partnerships Exchangeable Units [Member] | ||
Partnership exchangeable units, issued | 226,870,394 | 226,995,404 |
Partnership exchangeable units, outstanding | 226,870,394 | 226,995,404 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Sales | $ 550.4 | $ 490.5 |
Franchise and property revenues | 450.2 | 428 |
Total revenues | 1,000.6 | 918.5 |
Cost of sales | 423.4 | 390.6 |
Franchise and property expenses | 111 | 101.8 |
Selling, general and administrative expenses | 121.9 | 73.2 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Other operating expenses (income), net | 13.8 | 40.8 |
Total operating costs and expenses | 664.4 | 587.9 |
Income from operations | 336.2 | 330.6 |
Interest expense, net | 111.4 | 115.1 |
Loss on early extinguishment of debt | 20.4 | |
Income before income taxes | 204.4 | 215.5 |
Income tax expense | 37.8 | 47.2 |
Net income | 166.6 | 168.3 |
Net income attributable to noncontrolling interests (Note 11) | 0.4 | 0.9 |
Partnership preferred unit distributions | 67.5 | 67.5 |
Net income attributable to common unitholders | $ 98.7 | $ 99.9 |
Weighted average units outstanding - basic and diluted | ||
Weighted average units outstanding - basic and diluted | 428.9 | 431.8 |
Class A Common Units [Member] | ||
Revenues: | ||
Net income | $ 84.5 | |
Net income attributable to common unitholders | $ 50.2 | $ 50 |
Earnings per unit - basic and diluted | ||
Earnings per unit - basic and diluted | $ 0.25 | $ 0.25 |
Weighted average units outstanding - basic and diluted | ||
Weighted average units outstanding - basic and diluted | 202 | 202 |
Distributions per unit | ||
Distributions per unit | $ 0.21 | $ 0.16 |
Partnerships Exchangeable Units [Member] | ||
Revenues: | ||
Net income | $ 81.7 | |
Net income attributable to common unitholders | $ 48.5 | $ 49.9 |
Earnings per unit - basic and diluted | ||
Earnings per unit - basic and diluted | $ 0.21 | $ 0.22 |
Weighted average units outstanding - basic and diluted | ||
Weighted average units outstanding - basic and diluted | 226.9 | 229.8 |
Distributions per unit | ||
Distributions per unit | $ 0.18 | $ 0.14 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 166.6 | $ 168.3 |
Foreign currency translation adjustment | 105.8 | 649.4 |
Net change in fair value of net investment hedges, net of tax of $10.7 and $35.5 | (43.5) | (238.6) |
Net change in fair value of cash flow hedges, net of tax of $0.9 and $15.7 | (2.6) | (44.4) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(1.3) and $0 | 3.7 | (0.1) |
Pension and post-retirement benefit plans, net of tax of $0.1 and $0 | (0.1) | |
Amortization of prior service (credits) costs, net of tax of $0.3 and $0.3 | (0.4) | (0.4) |
Amortization of actuarial (gains) losses, net of tax of $(0.1) and $(0.1) | 0.2 | 0.1 |
Other comprehensive income (loss) | 63.1 | 366 |
Comprehensive income (loss) | 229.7 | 534.3 |
Comprehensive income (loss) attributable to noncontrolling interests | 0.4 | 0.9 |
Comprehensive income attributable to preferred unitholders | 67.5 | 67.5 |
Comprehensive income (loss) attributable to common unitholders | $ 161.8 | $ 465.9 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on change in fair value of investment hedges | $ 10.7 | $ 35.5 |
Tax effect on change in fair value of interest rate caps/swaps | 0.9 | 15.7 |
Tax effect on amounts reclassified to earnings of cash flow hedges | (1.3) | 0 |
Tax effect on pension and post-retirement benefit plans | 0.1 | 0 |
Tax effect on amortization prior service costs | 0.3 | 0.3 |
Tax effect on amortization of actuarial (gain) loss | $ (0.1) | $ (0.1) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Class A Common Units [Member] | Partnerships Exchangeable Units [Member] |
Beginning Balance at Dec. 31, 2016 | $ 3,489 | $ (1,355.4) | $ 4.1 | $ 3,364.1 | $ 1,476.2 |
Beginning Balance, shares at Dec. 31, 2016 | 202,006,067 | ||||
Beginning Balance, shares at Dec. 31, 2016 | 226,995,404 | ||||
Distributions declared on Class A common units | (42.3) | $ (42.3) | |||
Distributions declared on partnership exchangeable units | (40.8) | $ (40.8) | |||
Preferred unit distributions | (67.5) | (34.3) | (33.2) | ||
Exchange of Partnership exchangeable units for RBI common shares | 6.5 | $ (6.5) | |||
Exchange of Partnership exchange units for RBI common shares, shares | (100,000) | ||||
Capital contribution from RBI Inc. | 30.3 | 30.3 | |||
Restaurant VIE contributions (distributions) | (0.7) | (0.7) | |||
Net income (loss) | 166.6 | 0.4 | 84.5 | $ 81.7 | |
Other comprehensive income (loss) | 63.1 | 63.1 | |||
Ending Balance at Mar. 31, 2017 | $ 3,597.7 | $ (1,292.3) | $ 3.8 | $ 3,408.8 | $ 1,477.4 |
Ending Balance, shares at Mar. 31, 2017 | 202,006,067 | ||||
Ending Balance, shares at Mar. 31, 2017 | 226,870,394 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 166.6 | $ 168.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43.4 | 42.1 |
Non-cash loss on extinguishment of debt | 17.9 | |
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.7 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Loss (gain) on remeasurement of foreign denominated transactions | 10.4 | 28 |
Net losses (gains) on derivatives | 5.8 | 3.5 |
Share-based compensation expense | 16.5 | 6.4 |
Deferred income taxes | 15.3 | |
Other | 3.6 | 8.5 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 47.8 | 34.1 |
Inventories and prepaids and other current assets | (8.4) | (78.6) |
Accounts and drafts payable | 14.6 | (6.6) |
Advertising fund restricted assets and fund liabilities | 27.2 | (15.7) |
Other accrued liabilities and gift card liability | (82.6) | 0.6 |
Other long-term assets and liabilities | 20.1 | (8.8) |
Net cash provided by operating activities | 301 | 173 |
Cash flows from investing activities: | ||
Payments for property and equipment | (4.1) | (5.6) |
Proceeds from disposal of assets, restaurant closures, and refranchisings | 6.8 | 7.2 |
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9) | |
Return of investment on direct financing leases | 4.1 | 4.1 |
Settlement/sale of derivatives, net | 5.2 | (1.1) |
Other investing activities, net | (0.8) | 2.2 |
Net cash provided by (used for) investing activities | (1,624.7) | 6.8 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,300 | |
Repayments of long-term debt and capital leases | (319.9) | (17.2) |
Payment of financing costs | (31.8) | |
Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units | (145.9) | (128.3) |
Capital contribution from RBI Inc. | 8 | 6.5 |
Other financing activities, net | (1.1) | 3.1 |
Net cash provided by (used for) financing activities | 809.3 | (135.9) |
Effect of exchange rates on cash and cash equivalents | 3.3 | 13.9 |
Increase (decrease) in cash and cash equivalents | (511.1) | 57.8 |
Cash and cash equivalents at beginning of period | 1,420.4 | 753.7 |
Cash and cash equivalents at end of period | 909.3 | 811.5 |
Supplemental cashflow disclosures: | ||
Interest paid | 80.1 | 82.4 |
Income taxes paid | 24.1 | 47.6 |
Non-cash investing and financing activities: | ||
Acquisition of property with capital lease obligations | $ 13.7 | $ 5.4 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Organization | Note 1. Description of Business and Organization Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “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. We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons Burger King Popeyes We are a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner, and as such, 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 of Partnership (“partnership agreement”) and applicable laws. All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to Canadian dollars or C$ are to the currency of Canada unless otherwise indicated. |
Popeyes Acquisition
Popeyes Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Popeyes Acquisition | Note 2. Popeyes Acquisition On March 27, 2017, we completed the acquisition of all of the outstanding shares of common stock of Popeyes Louisiana Kitchen, Inc. (the “Popeyes Acquisition”). Popeyes Louisiana Kitchen Inc. is one of the world’s largest chicken quick service restaurants and its global footprint complements RBI’s existing portfolio. Like RBI’s other brands, the Popeyes Total consideration in connection with the Popeyes Acquisition was $1,654.7 million, which includes $32.6 million for the settlement of equity awards. The consideration was funded through (1) cash on hand of approximately $354.7 million, and (2) $1,300.0 million from incremental borrowings under our Term Loan Facility – see Note 9, Long-Term Debt Fees and expenses related to the Popeyes Acquisition and related financings (“PLK Transaction costs”) totaled $34.4 million, consisting primarily of professional fees and compensation related expenses, all of which are classified as selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. These fees and expenses were funded through cash on hand. The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): March 27, 2017 Total current assets $ 64.4 Property and equipment 96.5 Popeyes 1,020.0 Other assets 0.7 Total current liabilities (74.7 ) Total debt and capital lease obligations (159.0 ) Deferred income taxes (358.3 ) Other liabilities (13.2 ) Total identifiable net assets 576.4 Goodwill 1,078.3 Total consideration $ 1,654.7 The purchase price allocation reflects preliminary fair value estimates based on management’s analysis, including preliminary work performed by third-party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period. The Popeyes On March 27, 2017, we repaid $155.5 million of debt assumed in connection with the Popeyes Acquisition. The Popeyes Acquisition is not material to our consolidated financial statements, and therefore, supplemental pro forma financial information related to the acquisition is not included herein. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Note 3. Basis of Presentation and Consolidation We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “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 The Financial Statements include our accounts and the accounts of 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. 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. 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”). As of March 31, 2017 and December 31, 2016, we determined that we are the primary beneficiary of 81 and 96 Restaurant VIEs, respectively. As Tim Hortons, Burger King, and Popeyes 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 are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts in the accompanying Financial Statements and notes to the Financial Statements have been reclassified in order to be comparable with the current year classifications. These reclassifications had no effect on previously reported net income. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 4. New Accounting Pronouncements Revenue Recognition We have performed a preliminary analysis of the impact of the new revenue recognition guidance and developed a comprehensive plan for the implementation. The project plan includes analyzing the impact on our current revenue streams, comparing our historical accounting policies to the new guidance, and identifying potential differences from applying the requirements of the new guidance to our contracts. Under current accounting guidance, we recognize initial franchise fees when we have performed all material obligations and services, which generally occurs when the franchised restaurant opens. Under the new guidance, we anticipate deferring the initial franchise fees and recognizing revenue over the term of the related franchise agreement. We anticipate that the new guidance will also change our reporting of advertising fund contributions from franchisees and the related advertising expenditures, which are currently reported on a net basis in our consolidated balance sheet. Under the current guidance, as of the balance sheet date, advertising fund contributions received may not equal advertising expenditures for the period due to the timing of promotions. To the extent that contributions received exceeded advertising expenditures, the excess contributions are treated as a deferred liability. To the extent that advertising expenditures temporarily exceeded advertising fund contributions, the difference is recorded as a receivable from the fund. Under the new guidance, we anticipate advertising fund contributions from franchisees and advertising fund expenditures will be reported on a gross basis and the related advertising fund revenues and expenses may be reported in different periods. We anticipate that estimated breakage income on gift cards will be recognized as gift cards are utilized instead of our current policy of deferring the breakage income until it is deemed remote that the unused gift card balance will be redeemed. We do not believe this guidance will materially impact our recognition of revenue from Company restaurant sales, our recognition of royalty revenues from franchisees, or our recognition of revenues from property rentals. We are continuing to evaluate the impact the adoption of this guidance will have on the recognition of revenue from other sources. Lease Accounting non-cash Derivative Contract Novations on Existing Hedges de-designation Equity Method Accounting Employee Share-Based Payment Accounting Classification of Certain Cash Receipts and Cash Payments Intra-Entity Transfers of Assets Other Than Inventory Goodwill Impairment two-step more-likely-than-not |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 5. Earnings per Share Partnership uses the two-class There are no dilutive securities for Partnership as the exercise of stock options will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended March 31, 2017 2016 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 50.2 $ 50.0 Net income allocated to Partnership exchangeable unitholders 48.5 49.9 Net income attributable to common unitholders $ 98.7 $ 99.9 Denominator - basic and diluted partnership units: Weighted average Class A common units 202.0 202.0 Weighted average Partnership exchangeable units 226.9 229.8 Total weighted average basic and diluted units outstanding 428.9 431.8 Earnings per unit - basic and diluted: Class A common units $ 0.25 $ 0.25 Partnership exchangeable units $ 0.21 $ 0.22 |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Note 6. Intangible Assets, net and Goodwill Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Identifiable assets subject to amortization: Franchise agreements $ 658.1 $ (139.7 ) $ 518.4 $ 655.1 $ (132.4 ) $ 522.7 Favorable leases 436.7 (160.1 ) 276.6 436.0 (149.7 ) 286.3 Subtotal 1,094.8 (299.8 ) 795.0 1,091.1 (282.1 ) 809.0 Indefinite lived intangible assets: Tim Hortons $ 6,393.4 $ — $ 6,393.4 $ 6,341.6 $ — $ 6,341.6 Burger King 2,085.1 — 2,085.1 2,077.4 — 2,077.4 Popeyes 1,020.0 — 1,020.0 — — — Subtotal 9,498.5 — 9,498.5 8,419.0 — 8,419.0 Intangible assets, net $ 10,293.5 $ 9,228.0 Goodwill Tim Hortons segment $ 4,119.6 $ 4,087.8 Burger King segment 589.4 587.3 Popeyes segment 1,078.3 — Total $ 5,787.3 $ 4,675.1 Amortization expense on intangible assets totaled $17.5 million for the three months ended March 31, 2017 and $18.3 million for the same period in the prior year. The change in the brands and goodwill balances during the three months ended March 31, 2017 was due principally to the addition of goodwill and intangibles from the Popeyes Acquisition, and to a lesser extent, the impact of foreign currency translation. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 7. Equity Method Investments The aggregate carrying amount of our equity method investments was $154.7 million and $151.1 million as of March 31, 2017 and December 31, 2016, respectively, and is included as a component of other assets, net in our accompanying condensed consolidated balance sheets. Select information about our most significant equity method investments, based on the carrying value as of March 31, 2017, was as follows: Entity Country Equity TIMWEN Partnership Canada 50.0 % Carrols Restaurant Group, Inc. United States 20.8 % Pangaea Foods (China) Holdings, Ltd. China 27.5 % With respect to our Tim Hortons (“TH”) business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $2.4 million and $2.5 million during the three months ended March 31, 2017 and 2016, respectively. The aggregate market value of our equity interest in Carrols Restaurant Group, Inc. (“Carrols”), the most significant equity method investment for our Burger King (“BK”) business, based on the quoted market price on March 31, 2017, is approximately $133.2 million. No quoted market prices are available for our other equity method investments. Our Popeyes Louisiana Kitchen (“PLK”) business does not have any equity method investments. We have equity interests in entities that own or franchise Tim Hortons or Burger King restaurants. Franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended March 31, 2017 2016 Revenues from affiliates: Franchise royalties $ 38.5 $ 27.7 Property revenues 6.3 6.6 Franchise fees and other revenue 5.7 3.6 Total $ 50.5 $ 37.9 We recognized $4.5 million and $4.4 million of contingent rent expense associated with the TIMWEN Partnership during the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017 and December 31, 2016, we had $25.0 million and $25.7 million, respectively, of accounts receivable from our equity method investments which were recorded in accounts 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, non-cash non-cash |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities, net | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities, net | Note 8. Other Accrued Liabilities and Other Liabilities, net Other accrued liabilities (current) and other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, 2017 2016 Current: Dividend payable $ 150.6 $ 146.1 Interest payable 81.8 63.3 Accrued compensation and benefits 36.9 60.5 Taxes payable 62.2 43.3 Deferred income 49.4 54.7 Closed property reserve 10.9 11.0 Restructuring and other provisions 20.9 9.1 Other 83.7 81.3 Other accrued liabilities $ 496.4 $ 469.3 Noncurrent: Unfavorable leases $ 268.2 $ 275.8 Taxes payable 256.8 252.2 Accrued pension 82.4 82.9 Derivatives liabilities 61.3 55.1 Lease liability 26.3 27.2 Deferred income 37.1 27.1 Other 73.9 64.6 Other liabilities, net $ 806.0 $ 784.9 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan Facility (due February 17, 2024) $ 6,187.1 $ 5,046.1 2015 Senior Notes (due January 12, 2022) 1,250.0 1,250.0 2014 Senior Notes (due April 1, 2022) 2,250.0 2,250.0 Tim Hortons Notes (a) 41.0 40.6 Other 87.4 85.4 Less: unamortized deferred financing costs and deferred issuance discount (193.3 ) (187.1 ) Total debt, net 9,622.2 8,485.0 Less: current maturities of debt (90.7 ) (74.8 ) Total long-term debt $ 9,531.5 $ 8,410.2 (a) Tim Hortons Notes comprise three series of senior notes: (i) C$48.0 million of series 1 notes, due June 1, 2017 bearing interest at 4.20%, (ii) C$2.6 million of series 2 notes, due December 1, 2023, bearing interest at 4.52%, and (iii) C$3.9 million of series 3 notes, due April 1, 2019, bearing interest at 2.85%. No principal payments are due until maturity. Refinancing of Credit Facilities On February 17, 2017, two of our subsidiaries (the “Borrowers”) entered into a second amendment (the “Second Amendment”) to the credit agreement governing our senior secured term loan facility (the “Term Loan Facility”) and our senior secured revolving credit facility of up to $500.0 million of revolving extensions of credit outstanding at any time (including revolving loans, swingline loans and letters of credit) maturing on December 12, 2019 (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). Under the Second Amendment, (i) the outstanding aggregate principal amount under our Term Loan Facility was decreased to $4,900.0 million as a result of a repayment of $146.1 million from cash on hand, (ii) the interest rate applicable to our Term Loan Facility was reduced to, at our option, either (a) a base rate plus an applicable margin equal to 1.25%, or (b) a Eurocurrency rate plus an applicable margin equal to 2.25%, (iii) the maturity of our Term Loan Facility was extended from December 12, 2021 to February 17, 2024, and (iv) the Borrowers and their subsidiaries were provided with additional flexibility under certain negative covenants, including incurrence of indebtedness, making of investments, dispositions and restricted payments, and prepayment of subordinated indebtedness. Except as described herein, the Second Amendment does not contain any material changes to the terms of the Credit Facilities. In connection with the Second Amendment, we capitalized approximately $11.3 million in debt issuance costs and recorded a loss on early extinguishment of debt of $20.4 million during the three months ended March 31, 2017. The loss on early extinguishment of debt primarily reflects the write-off Incremental Term Loan In connection with the Popeyes Acquisition, we obtained an incremental term loan in the aggregate principal amount of $1,300.0 million (the “Incremental Term Loan”) under our Term Loan Facility. The Incremental Term Loan bears interest at the same rate as the Term Loan Facility and also matures on February 17, 2024. In connection with the Incremental Term Loan, Popeyes was included as loan guarantor and its assets as collateral, under the Credit Facilities. Except as described herein, there were no other material changes to the terms of the Credit Facilities. Debt issuance costs capitalized in connection with the Incremental Term Loan were approximately $20.5 million. Revolving Credit Facility As of March 31, 2017, we had no amounts outstanding under our Revolving Credit Facility. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or share repurchases, to fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125.0 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. As of March 31, 2017, we had $1.6 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability was $498.4 million. Fair Value Measurement The fair value of our variable rate term debt and bonds is estimated using inputs based on bid and offer prices that are Level 2 inputs and was $9.85 billion and $8.77 billion at March 31, 2017 and December 31, 2016, respectively, compared to a principal carrying amount of $9.73 billion and $8.59 billion, respectively on the same dates. Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2017 2016 Debt $ 100.0 $ 101.2 Capital lease obligations 5.0 4.8 Amortization of deferred financing costs and debt issuance discount 8.5 9.7 Interest income (2.1 ) (0.6 ) Interest expense, net $ 111.4 $ 115.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes Our effective tax rate was 18.5% for the three months ended March 31, 2017. The effective tax rate during this period was primarily a result of the mix of income from multiple tax jurisdictions, the favorable impact of our financing structure and stock option exercises, partially offset by non-deductible Our effective tax rate was 21.9% for the three months ended March 31, 2016. The effective tax rate during this period was primarily a result of the mix of income from multiple tax jurisdictions, partially offset by the favorable impact of our financing structure. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | Note 11. Equity During the three months ended March 31, 2017, Partnership exchanged 125,010 Partnership exchangeable units pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of newly issued RBI common shares. The issuances of shares was accounted for as a capital contribution by RBI to Partnership. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partner’s capital in our consolidated balance sheet in an amount equal to the market value of the newly issued RBI common shares and a reduction to the Partnership exchangeable units balance within partner’s capital of our consolidated balance sheet in an amount equal to the cash paid by Partnership and the market value of the newly issued RBI common shares. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit was cancelled concurrently with the exchange. Accumulated Other Comprehensive Income (Loss) The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Accumulated Other Balances at December 31, 2016 $ 533.1 $ (32.8 ) $ (1,855.7 ) $ (1,355.4 ) Foreign currency translation adjustment — — 105.8 105.8 Net change in fair value of derivatives, net of tax (46.1 ) — — (46.1 ) Amounts reclassified to earnings of cash flow hedges, net of tax 3.7 — — 3.7 Pension and post-retirement benefit plans, net of tax — (0.1 ) — (0.1 ) Amortization of prior service (credits) costs, net of tax — (0.4 ) — (0.4 ) Amortization of actuarial (gains) losses, net of tax — 0.2 — 0.2 Balances at March 31, 2017 $ 490.7 $ (33.1 ) $ (1,749.9 ) $ (1,292.3 ) The following table displays the reclassifications out of AOCI (in millions): Amounts Reclassified from AOCI Affected Line Item in the Three Months Ended March 31, Details about AOCI Components Statements of Operations 2017 2016 Gains (losses) on cash flow hedges: Interest rate derivative contracts Interest expense, net $ (5.9 ) $ (3.5 ) Forward-currency contracts Cost of sales 0.9 3.6 Total before tax (5.0 ) 0.1 Income tax (expense) benefit 1.3 — Net of tax $ (3.7 ) $ 0.1 Defined benefit pension: Amortization of prior service credits (costs) SG&A (a) 0.7 0.7 Amortization of actuarial gains (losses) SG&A (a) (0.3 ) (0.1 ) Total before tax 0.4 0.6 Income tax (expense) benefit (0.2 ) (0.3 ) Net of tax $ 0.2 $ 0.3 Total reclassifications Net of tax $ (3.5 ) $ 0.4 (a) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 12. Derivative Instruments Disclosures about Derivative Instruments and Hedging Activities 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 our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps During 2015, we entered into a series of receive-variable, pay-fixed During 2015, we settled certain interest rate swaps and recognized a net unrealized loss of $84.6 million in AOCI at the date of settlement. This amount will be reclassified into interest expense, net as the original hedged forecasted transaction affects earnings. The amount of pre-tax Cross-Currency Rate Swaps To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At March 31, 2017, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically offset by movements in the fair value of our cross currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At March 31, 2017, 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. We designated these cross-currency rate swaps as hedges and account for these derivative instruments as net investment hedges. At March 31, 2017, 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 2015, we terminated some cross-currency rate swaps with an aggregate notional value of $315.0 million. The net unrealized gains totaled $31.8 million as of the termination date. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. 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 purchases made by our Canadian Tim Hortons operations. At March 31, 2017, 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 $178.9 million with maturities to June 2018. 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. Credit Risk By entering into derivative 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. Quantitative Disclosures about Derivative Instruments and Fair Value Measurements The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain (Loss) Recognized in Other (Effective Portion) Three Months Ended March 31, 2017 2016 Derivatives designated as cash flow hedges: Forward-starting interest rate swaps $ (5.0 ) $ (51.0 ) Forward-currency contracts $ 1.5 $ (9.1 ) Derivatives designated as net investment hedges: Cross-currency rate swaps $ (54.2 ) $ (274.1 ) Classification on Condensed Consolidated Statements of Operations Gain (Loss) Reclassified from AOCI Three Months Ended March 31, 2017 2016 Interest expense, net $ (5.9 ) $ (3.5 ) Cost of sales $ 0.9 $ 3.6 Fair Value as of March 31, 2017 December 31, 2016 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 2.0 $ 2.8 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 659.8 717.9 Derivative assets Total assets at fair value $ 661.8 $ 720.7 Liabilities: Derivatives designated as cash flow hedges Interest rate $ 57.2 $ 55.1 Other liabilities, net Foreign currency 0.9 1.1 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 4.1 — Other liabilities, net Total liabilities at fair value $ 62.2 $ 56.2 |
Franchise and Property Revenues
Franchise and Property Revenues | 3 Months Ended |
Mar. 31, 2017 | |
Other Industries [Abstract] | |
Franchise and Property Revenues | Note 13. Franchise and Property Revenues Franchise and property revenues consist of the following (in millions): Three Months Ended March 31, 2017 2016 Franchise royalties $ 242.0 $ 227.8 Property revenues 175.0 171.3 Franchise fees and other revenue 33.2 28.9 Franchise and property revenues $ 450.2 $ 428.0 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Note 14. Other Operating Expenses (Income), net Other operating expenses (income), net consist of the following (in millions): Three Months Ended 2017 2016 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2.9 $ 15.3 Litigation settlements and reserves, net — 0.7 Net losses (gains) on foreign exchange 10.4 24.1 Other, net 0.5 0.7 Other operating expenses (income), net $ 13.8 $ 40.8 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 15. Segment Reporting As stated in Note 1, Description of Business and Organization Tim Hortons Burger King Popeyes Each brand is managed by a brand president that reports directly to our Chief Executive Officer, who is our Chief Operating Decision Maker. Therefore, we have three operating segments: (1) TH, which includes all operations of our Tim Hortons Burger King Popeyes The following table presents revenues, by segment and by country (in millions): Three Months Ended March 31, 2017 2016 Revenues by operating segment: TH $ 733.6 $ 657.8 BK 267.0 260.7 Total revenues $ 1,000.6 $ 918.5 Revenues by country (a): Canada $ 657.0 $ 581.2 United States 232.4 229.5 Other 111.2 107.8 Total revenues $ 1,000.6 $ 918.5 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. 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, and depreciation and amortization, adjusted to exclude the non-cash non-cash non-recurring non-cash Three Months Ended March 31, 2017 2016 Segment income: TH $ 256.2 $ 227.8 BK 187.1 180.0 Adjusted EBITDA 443.3 407.8 Share-based compensation and non-cash 18.5 7.9 PLK Transaction costs 34.4 — Integration costs — 2.2 Impact of equity method investments (a) (2.9 ) (15.7 ) Other operating expenses (income), net 13.8 40.8 EBITDA 379.5 372.6 Depreciation and amortization 43.3 42.0 Income from operations 336.2 330.6 Interest expense, net 111.4 115.1 Loss on early extinsguishment of debt 20.4 — Income tax expense 37.8 47.2 Net income $ 166.6 $ 168.3 (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 | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Note 16. Supplemental Financial Information On May 22, 2015, 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” The agreement governing our Credit Facilities, 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 (“Consolidated 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 of U.S. dollars) As of March 31, 2017 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 909.3 $ — $ — $ 909.3 Accounts and notes receivable, net 362.0 — — 362.0 Inventories, net 83.3 — — 83.3 Advertising fund restricted assets 85.7 — — 85.7 Prepaids and other current assets 122.2 — — 122.2 Total current assets 1,562.5 — — 1,562.5 Property and equipment, net 2,140.4 — — 2,140.4 Intangible assets, net 10,293.5 — — 10,293.5 Goodwill 5,787.3 — — 5,787.3 Net investment in property leased to franchisees 85.3 — — 85.3 Derivative assets 659.8 — — 659.8 Intercompany receivable — 150.6 (150.6 ) — Investment in subsidiaries — 6,894.7 (6,894.7 ) — Other assets, net 294.0 — — 294.0 Total assets $ 20,822.8 $ 7,045.3 $ (7,045.3 ) $ 20,822.8 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 391.4 $ — $ — $ 391.4 Other accrued liabilities 345.8 150.6 — 496.4 Gift card liability 139.1 — — 139.1 Advertising fund liabilities 137.9 — — 137.9 Current portion of long term debt and capital leases 110.1 — — 110.1 Total current liabilities 1,124.3 150.6 — 1,274.9 Term debt, net of current portion 9,531.5 — — 9,531.5 Capital leases, net of current portion 226.5 — — 226.5 Other liabilities, net 806.0 — — 806.0 Payables to affiliates 150.6 — (150.6 ) — Deferred income taxes, net 2,089.2 — — 2,089.2 Total liabilities 13,928.1 150.6 (150.6 ) 13,928.1 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A common units — 3,408.8 — 3,408.8 Partnership exchangeable units — 1,477.4 — 1,477.4 Common shares 6,705.5 — (6,705.5 ) — Retained earnings 1,477.7 — (1,477.7 ) — Accumulated other comprehensive income (loss) (1,292.3 ) (1,292.3 ) 1,292.3 (1,292.3 ) Total Partners’ capital/shareholders’ equity 6,890.9 3,593.9 (6,890.9 ) 3,593.9 Noncontrolling interests 3.8 3.8 (3.8 ) 3.8 Total equity 6,894.7 3,597.7 (6,894.7 ) 3,597.7 Total liabilities, Partnership preferred units and equity $ 20,822.8 $ 7,045.3 $ (7,045.3 ) $ 20,822.8 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2016 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,420.4 $ — $ — $ 1,420.4 Accounts and notes receivable, net 403.5 — — 403.5 Inventories, net 71.8 — — 71.8 Advertising fund restricted assets 57.7 — — 57.7 Prepaids and other current assets 103.6 — — 103.6 Total current assets 2,057.0 — — 2,057.0 Property and equipment, net 2,054.7 — — 2,054.7 Intangible assets, net 9,228.0 — — 9,228.0 Goodwill 4,675.1 — — 4,675.1 Net investment in property leased to franchisees 91.9 — — 91.9 Derivative assets 717.9 — — 717.9 Intercompany receivable — 146.1 (146.1 ) — Investment in subsidiaries — 6,786.0 (6,786.0 ) — Other assets, net 300.7 — — 300.7 Total assets $ 19,125.3 $ 6,932.1 $ (6,932.1 ) $ 19,125.3 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 369.8 $ — $ — $ 369.8 Other accrued liabilities 323.2 146.1 — 469.3 Gift card liability 194.4 — — 194.4 Advertising fund liabilities 83.3 — — 83.3 Current portion of long term debt and capital leases 93.9 — — 93.9 Total current liabilities 1,064.6 146.1 — 1,210.7 Term debt, net of current portion 8,410.2 — — 8,410.2 Capital leases, net of current portion 218.4 — — 218.4 Other liabilities, net 784.9 — — 784.9 Payables to affiliates 146.1 — (146.1 ) — Deferred income taxes, net 1,715.1 — — 1,715.1 Total liabilities 12,339.3 146.1 (146.1 ) 12,339.3 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A common units — 3,364.1 — 3,364.1 Partnership exchangeable units — 1,476.2 — 1,476.2 Common shares 6,825.8 — (6,825.8 ) — Retained earnings 1,311.5 — (1,311.5 ) — Accumulated other comprehensive income (loss) (1,355.4 ) (1,355.4 ) 1,355.4 (1,355.4 ) Total Partners’ capital/shareholders’ equity 6,781.9 3,484.9 (6,781.9 ) 3,484.9 Noncontrolling interests 4.1 4.1 (4.1 ) 4.1 Total equity 6,786.0 3,489.0 (6,786.0 ) 3,489.0 Total liabilities, Partnership preferred units and equity $ 19,125.3 $ 6,932.1 $ (6,932.1 ) $ 19,125.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2017 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 550.4 $ — $ — $ 550.4 Franchise and property revenues 450.2 — — 450.2 Total revenues 1,000.6 — — 1,000.6 Cost of sales 423.4 — — 423.4 Franchise and property expenses 111.0 — — 111.0 Selling, general and administrative expenses 121.9 — — 121.9 (Income) loss from equity method investments (5.7 ) — — (5.7 ) Other operating expenses (income), net 13.8 — — 13.8 Total operating costs and expenses 664.4 — — 664.4 Income from operations 336.2 — — 336.2 Interest expense, net 111.4 — — 111.4 Loss on early extinguishment of debt 20.4 — — 20.4 Income before income taxes 204.4 — — 204.4 Income tax expense 37.8 — — 37.8 Net income 166.6 — — 166.6 Equity in earnings of consolidated subsidiaries — 166.6 (166.6 ) — Net income (loss) 166.6 166.6 (166.6 ) 166.6 Net income (loss) attributable to noncontrolling interests 0.4 0.4 (0.4 ) 0.4 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders $ 166.2 $ 98.7 $ (166.2 ) $ 98.7 Total comprehensive income (loss) $ 229.7 $ 229.7 $ (229.7 ) $ 229.7 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2016 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 490.5 $ — $ — $ 490.5 Franchise and property revenues 428.0 — — 428.0 Total revenues 918.5 — — 918.5 Cost of sales 390.6 — — 390.6 Franchise and property expenses 101.8 — — 101.8 Selling, general and administrative expenses 73.2 — — 73.2 (Income) loss from equity method investments (18.5 ) — — (18.5 ) Other operating expenses (income), net 40.8 — — 40.8 Total operating costs and expenses 587.9 — — 587.9 Income from operations 330.6 — — 330.6 Interest expense, net 115.1 — — 115.1 Income before income taxes 215.5 — — 215.5 Income tax expense 47.2 — — 47.2 Net income 168.3 — — 168.3 Equity in earnings of consolidated subsidiaries — 168.3 (168.3 ) — Net income (loss) 168.3 168.3 (168.3 ) 168.3 Net income (loss) attributable to noncontrolling interests 0.9 0.9 (0.9 ) 0.9 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders $ 167.4 $ 99.9 $ (167.4 ) $ 99.9 Total comprehensive income (loss) $ 534.3 $ 534.3 $ (534.3 ) $ 534.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2017 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 166.6 $ 166.6 $ (166.6 ) $ 166.6 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (166.6 ) 166.6 — Depreciation and amortization 43.4 — — 43.4 Non-cash 17.9 — — 17.9 Amortization of deferred financing costs and debt issuance discount 8.5 — — 8.5 (Income) loss from equity method investments (5.7 ) — — (5.7 ) Loss (gain) on remeasurement of foreign denominated transactions 10.4 — — 10.4 Net losses on derivatives 5.8 — — 5.8 Share-based compensation expense 16.5 — — 16.5 Deferred income taxes 15.3 — — 15.3 Other 3.6 — — 3.6 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 47.8 — — 47.8 Inventories and prepaids and other current assets (8.4 ) — — (8.4 ) Accounts and drafts payable 14.6 — — 14.6 Advertising fund restricted assets and fund liabilities 27.2 — — 27.2 Other accrued liabilities and gift card liability (82.6 ) — — (82.6 ) Other long-term assets and liabilities 20.1 — — 20.1 Net cash provided by operating activities 301.0 — — 301.0 Cash flows from investing activities: Payments for property and equipment (4.1 ) — — (4.1 ) Proceeds from disposal of assets, restaurant closures, and refranchisings 6.8 — — 6.8 Net payment for purchase of Popeyes, net of cash acquired (1,635.9 ) — — (1,635.9 ) Return of investment on direct financing leases 4.1 — — 4.1 Settlement/sale of derivatives, net 5.2 — — 5.2 Other investing activities, net (0.8 ) — — (0.8 ) Net cash provided by (used for) investing activities (1,624.7 ) — — (1,624.7 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 1,300.0 — — 1,300.0 Repayments of long-term debt and capital leases (319.9 ) — — (319.9 ) Payment of financing costs (31.8 ) — — (31.8 ) Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units — (145.9 ) — (145.9 ) Capital contribution from RBI Inc. 8.0 — — 8.0 Distributions from subsidiaries (145.9 ) 145.9 — — Other financing activities, net (1.1 ) — — (1.1 ) Net cash provided by (used for) financing activities 809.3 — — 809.3 Effect of exchange rates on cash and cash equivalents 3.3 — — 3.3 Increase (decrease) in cash and cash equivalents (511.1 ) — — (511.1 ) Cash and cash equivalents at beginning of period 1,420.4 — — 1,420.4 Cash and cash equivalents at end of period $ 909.3 $ — $ — $ 909.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2016 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 168.3 $ 168.3 $ (168.3 ) $ 168.3 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (168.3 ) 168.3 — Depreciation and amortization 42.1 — — 42.1 Amortization of deferred financing costs and debt issuance discount 9.7 — — 9.7 (Income) loss from equity method investments (18.5 ) — — (18.5 ) Loss (gain) on remeasurement of foreign denominated transactions 28.0 — — 28.0 Net losses on derivatives 3.5 — — 3.5 Share-based compensation expense 6.4 — — 6.4 Other 8.5 — — 8.5 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 34.1 — — 34.1 Inventories and prepaids and other current assets (78.6 ) — — (78.6 ) Accounts and drafts payable (6.6 ) — — (6.6 ) Advertising fund restricted assets and fund liabilities (15.7 ) — — (15.7 ) Other accrued liabilities and gift card liability 0.6 — — 0.6 Other long-term assets and liabilities (8.8 ) — — (8.8 ) Net cash provided by operating activities 173.0 — — 173.0 Cash flows from investing activities: Payments for property and equipment (5.6 ) — — (5.6 ) Proceeds from disposal of assets, restaurant closures, and refranchisings 7.2 — — 7.2 Return of investment on direct financing leases 4.1 — — 4.1 Settlement/sale of derivatives, net (1.1 ) — — (1.1 ) Other investing activities, net 2.2 — — 2.2 Net cash provided by (used for) investing activities 6.8 — — 6.8 Cash flows from financing activities: Repayments of long-term debt and capital leases (17.2 ) — — (17.2 ) Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units — (128.3 ) — (128.3 ) Capital contribution from RBI Inc. 6.5 — — 6.5 Distributions from subsidiaries (128.3 ) 128.3 — — Other financing activities, net 3.1 — — 3.1 Net cash provided by (used for) financing activities (135.9 ) — — (135.9 ) Effect of exchange rates on cash and cash equivalents 13.9 — — 13.9 Increase (decrease) in cash and cash equivalents 57.8 — — 57.8 Cash and cash equivalents at beginning of period 753.7 — — 753.7 Cash and cash equivalents at end of period $ 811.5 $ — $ — $ 811.5 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 17. Subsequent Event Dividends On April 4, 2017, RBI paid a cash dividend of $0.18 per RBI common share to common shareholders of record on March 3, 2017. 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 $0.18 per exchangeable unit to holders of record on March 3, 2017. On April 3, 2017, 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 first calendar quarter of 2017. Partnership made a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date. On April 26, 2017, the RBI board of directors declared a cash dividend of $0.19 per RBI common share, which will be paid on July 6, 2017 to RBI common shareholders of record on May 15, 2017. 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 $0.19 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 April 26, 2017, the RBI board of directors declared a cash dividend of $0.98 per Preferred Share, for a total dividend of $67.5 million which will be paid to the holder of the Preferred Shares on July 5, 2017. The dividend on the Preferred Shares includes the amount due for the second calendar quarter of 2017. Partnership will make a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date. |
Popeyes Acquisition (Tables)
Popeyes Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired | The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): March 27, 2017 Total current assets $ 64.4 Property and equipment 96.5 Popeyes 1,020.0 Other assets 0.7 Total current liabilities (74.7 ) Total debt and capital lease obligations (159.0 ) Deferred income taxes (358.3 ) Other liabilities (13.2 ) Total identifiable net assets 576.4 Goodwill 1,078.3 Total consideration $ 1,654.7 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Unit | The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended March 31, 2017 2016 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 50.2 $ 50.0 Net income allocated to Partnership exchangeable unitholders 48.5 49.9 Net income attributable to common unitholders $ 98.7 $ 99.9 Denominator - basic and diluted partnership units: Weighted average Class A common units 202.0 202.0 Weighted average Partnership exchangeable units 226.9 229.8 Total weighted average basic and diluted units outstanding 428.9 431.8 Earnings per unit - basic and diluted: Class A common units $ 0.25 $ 0.25 Partnership exchangeable units $ 0.21 $ 0.22 |
Intangible Assets, net and Go28
Intangible Assets, net and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net and Goodwill | Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Identifiable assets subject to amortization: Franchise agreements $ 658.1 $ (139.7 ) $ 518.4 $ 655.1 $ (132.4 ) $ 522.7 Favorable leases 436.7 (160.1 ) 276.6 436.0 (149.7 ) 286.3 Subtotal 1,094.8 (299.8 ) 795.0 1,091.1 (282.1 ) 809.0 Indefinite lived intangible assets: Tim Hortons $ 6,393.4 $ — $ 6,393.4 $ 6,341.6 $ — $ 6,341.6 Burger King 2,085.1 — 2,085.1 2,077.4 — 2,077.4 Popeyes 1,020.0 — 1,020.0 — — — Subtotal 9,498.5 — 9,498.5 8,419.0 — 8,419.0 Intangible assets, net $ 10,293.5 $ 9,228.0 Goodwill Tim Hortons segment $ 4,119.6 $ 4,087.8 Burger King segment 589.4 587.3 Popeyes segment 1,078.3 — Total $ 5,787.3 $ 4,675.1 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Method Investment | Select information about our most significant equity method investments, based on the carrying value as of March 31, 2017, was as follows: Entity Country Equity TIMWEN Partnership Canada 50.0 % Carrols Restaurant Group, Inc. United States 20.8 % Pangaea Foods (China) Holdings, Ltd. China 27.5 % |
Summary of Franchise and Property Revenues | Franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended March 31, 2017 2016 Revenues from affiliates: Franchise royalties $ 38.5 $ 27.7 Property revenues 6.3 6.6 Franchise fees and other revenue 5.7 3.6 Total $ 50.5 $ 37.9 |
Other Accrued Liabilities and30
Other Accrued Liabilities and Other Liabilities, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net | Other accrued liabilities (current) and other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, 2017 2016 Current: Dividend payable $ 150.6 $ 146.1 Interest payable 81.8 63.3 Accrued compensation and benefits 36.9 60.5 Taxes payable 62.2 43.3 Deferred income 49.4 54.7 Closed property reserve 10.9 11.0 Restructuring and other provisions 20.9 9.1 Other 83.7 81.3 Other accrued liabilities $ 496.4 $ 469.3 Noncurrent: Unfavorable leases $ 268.2 $ 275.8 Taxes payable 256.8 252.2 Accrued pension 82.4 82.9 Derivatives liabilities 61.3 55.1 Lease liability 26.3 27.2 Deferred income 37.1 27.1 Other 73.9 64.6 Other liabilities, net $ 806.0 $ 784.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan Facility (due February 17, 2024) $ 6,187.1 $ 5,046.1 2015 Senior Notes (due January 12, 2022) 1,250.0 1,250.0 2014 Senior Notes (due April 1, 2022) 2,250.0 2,250.0 Tim Hortons Notes (a) 41.0 40.6 Other 87.4 85.4 Less: unamortized deferred financing costs and deferred issuance discount (193.3 ) (187.1 ) Total debt, net 9,622.2 8,485.0 Less: current maturities of debt (90.7 ) (74.8 ) Total long-term debt $ 9,531.5 $ 8,410.2 (a) Tim Hortons Notes comprise three series of senior notes: (i) C$48.0 million of series 1 notes, due June 1, 2017 bearing interest at 4.20%, (ii) C$2.6 million of series 2 notes, due December 1, 2023, bearing interest at 4.52%, and (iii) C$3.9 million of series 3 notes, due April 1, 2019, bearing interest at 2.85%. No principal payments are due until maturity. |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2017 2016 Debt $ 100.0 $ 101.2 Capital lease obligations 5.0 4.8 Amortization of deferred financing costs and debt issuance discount 8.5 9.7 Interest income (2.1 ) (0.6 ) Interest expense, net $ 111.4 $ 115.1 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) | The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Accumulated Other Balances at December 31, 2016 $ 533.1 $ (32.8 ) $ (1,855.7 ) $ (1,355.4 ) Foreign currency translation adjustment — — 105.8 105.8 Net change in fair value of derivatives, net of tax (46.1 ) — — (46.1 ) Amounts reclassified to earnings of cash flow hedges, net of tax 3.7 — — 3.7 Pension and post-retirement benefit plans, net of tax — (0.1 ) — (0.1 ) Amortization of prior service (credits) costs, net of tax — (0.4 ) — (0.4 ) Amortization of actuarial (gains) losses, net of tax — 0.2 — 0.2 Balances at March 31, 2017 $ 490.7 $ (33.1 ) $ (1,749.9 ) $ (1,292.3 ) |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table displays the reclassifications out of AOCI (in millions): Amounts Reclassified from AOCI Affected Line Item in the Three Months Ended March 31, Details about AOCI Components Statements of Operations 2017 2016 Gains (losses) on cash flow hedges: Interest rate derivative contracts Interest expense, net $ (5.9 ) $ (3.5 ) Forward-currency contracts Cost of sales 0.9 3.6 Total before tax (5.0 ) 0.1 Income tax (expense) benefit 1.3 — Net of tax $ (3.7 ) $ 0.1 Defined benefit pension: Amortization of prior service credits (costs) SG&A (a) 0.7 0.7 Amortization of actuarial gains (losses) SG&A (a) (0.3 ) (0.1 ) Total before tax 0.4 0.6 Income tax (expense) benefit (0.2 ) (0.3 ) Net of tax $ 0.2 $ 0.3 Total reclassifications Net of tax $ (3.5 ) $ 0.4 (a) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values | The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain (Loss) Recognized in Other (Effective Portion) Three Months Ended March 31, 2017 2016 Derivatives designated as cash flow hedges: Forward-starting interest rate swaps $ (5.0 ) $ (51.0 ) Forward-currency contracts $ 1.5 $ (9.1 ) Derivatives designated as net investment hedges: Cross-currency rate swaps $ (54.2 ) $ (274.1 ) Classification on Condensed Consolidated Statements of Operations Gain (Loss) Reclassified from AOCI Three Months Ended March 31, 2017 2016 Interest expense, net $ (5.9 ) $ (3.5 ) Cost of sales $ 0.9 $ 3.6 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of March 31, 2017 December 31, 2016 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 2.0 $ 2.8 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 659.8 717.9 Derivative assets Total assets at fair value $ 661.8 $ 720.7 Liabilities: Derivatives designated as cash flow hedges Interest rate $ 57.2 $ 55.1 Other liabilities, net Foreign currency 0.9 1.1 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 4.1 — Other liabilities, net Total liabilities at fair value $ 62.2 $ 56.2 |
Franchise and Property Revenu34
Franchise and Property Revenues (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Industries [Abstract] | |
Summary of Franchise and Property Revenues | Franchise and property revenues consist of the following (in millions): Three Months Ended March 31, 2017 2016 Franchise royalties $ 242.0 $ 227.8 Property revenues 175.0 171.3 Franchise fees and other revenue 33.2 28.9 Franchise and property revenues $ 450.2 $ 428.0 |
Other Operating Expenses (Inc35
Other Operating Expenses (Income), net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), Net | Other operating expenses (income), net consist of the following (in millions): Three Months Ended 2017 2016 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2.9 $ 15.3 Litigation settlements and reserves, net — 0.7 Net losses (gains) on foreign exchange 10.4 24.1 Other, net 0.5 0.7 Other operating expenses (income), net $ 13.8 $ 40.8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Segment | The following table presents revenues, by segment and by country (in millions): Three Months Ended March 31, 2017 2016 Revenues by operating segment: TH $ 733.6 $ 657.8 BK 267.0 260.7 Total revenues $ 1,000.6 $ 918.5 Revenues by country (a): Canada $ 657.0 $ 581.2 United States 232.4 229.5 Other 111.2 107.8 Total revenues $ 1,000.6 $ 918.5 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. |
Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income (loss) consists of the following (in millions). Three Months Ended March 31, 2017 2016 Segment income: TH $ 256.2 $ 227.8 BK 187.1 180.0 Adjusted EBITDA 443.3 407.8 Share-based compensation and non-cash 18.5 7.9 PLK Transaction costs 34.4 — Integration costs — 2.2 Impact of equity method investments (a) (2.9 ) (15.7 ) Other operating expenses (income), net 13.8 40.8 EBITDA 379.5 372.6 Depreciation and amortization 43.3 42.0 Income from operations 336.2 330.6 Interest expense, net 111.4 115.1 Loss on early extinsguishment of debt 20.4 — Income tax expense 37.8 47.2 Net income $ 166.6 $ 168.3 (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 Inform37
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Financial Statements | The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of March 31, 2017 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 909.3 $ — $ — $ 909.3 Accounts and notes receivable, net 362.0 — — 362.0 Inventories, net 83.3 — — 83.3 Advertising fund restricted assets 85.7 — — 85.7 Prepaids and other current assets 122.2 — — 122.2 Total current assets 1,562.5 — — 1,562.5 Property and equipment, net 2,140.4 — — 2,140.4 Intangible assets, net 10,293.5 — — 10,293.5 Goodwill 5,787.3 — — 5,787.3 Net investment in property leased to franchisees 85.3 — — 85.3 Derivative assets 659.8 — — 659.8 Intercompany receivable — 150.6 (150.6 ) — Investment in subsidiaries — 6,894.7 (6,894.7 ) — Other assets, net 294.0 — — 294.0 Total assets $ 20,822.8 $ 7,045.3 $ (7,045.3 ) $ 20,822.8 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 391.4 $ — $ — $ 391.4 Other accrued liabilities 345.8 150.6 — 496.4 Gift card liability 139.1 — — 139.1 Advertising fund liabilities 137.9 — — 137.9 Current portion of long term debt and capital leases 110.1 — — 110.1 Total current liabilities 1,124.3 150.6 — 1,274.9 Term debt, net of current portion 9,531.5 — — 9,531.5 Capital leases, net of current portion 226.5 — — 226.5 Other liabilities, net 806.0 — — 806.0 Payables to affiliates 150.6 — (150.6 ) — Deferred income taxes, net 2,089.2 — — 2,089.2 Total liabilities 13,928.1 150.6 (150.6 ) 13,928.1 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A common units — 3,408.8 — 3,408.8 Partnership exchangeable units — 1,477.4 — 1,477.4 Common shares 6,705.5 — (6,705.5 ) — Retained earnings 1,477.7 — (1,477.7 ) — Accumulated other comprehensive income (loss) (1,292.3 ) (1,292.3 ) 1,292.3 (1,292.3 ) Total Partners’ capital/shareholders’ equity 6,890.9 3,593.9 (6,890.9 ) 3,593.9 Noncontrolling interests 3.8 3.8 (3.8 ) 3.8 Total equity 6,894.7 3,597.7 (6,894.7 ) 3,597.7 Total liabilities, Partnership preferred units and equity $ 20,822.8 $ 7,045.3 $ (7,045.3 ) $ 20,822.8 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2016 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,420.4 $ — $ — $ 1,420.4 Accounts and notes receivable, net 403.5 — — 403.5 Inventories, net 71.8 — — 71.8 Advertising fund restricted assets 57.7 — — 57.7 Prepaids and other current assets 103.6 — — 103.6 Total current assets 2,057.0 — — 2,057.0 Property and equipment, net 2,054.7 — — 2,054.7 Intangible assets, net 9,228.0 — — 9,228.0 Goodwill 4,675.1 — — 4,675.1 Net investment in property leased to franchisees 91.9 — — 91.9 Derivative assets 717.9 — — 717.9 Intercompany receivable — 146.1 (146.1 ) — Investment in subsidiaries — 6,786.0 (6,786.0 ) — Other assets, net 300.7 — — 300.7 Total assets $ 19,125.3 $ 6,932.1 $ (6,932.1 ) $ 19,125.3 LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY Current liabilities: Accounts and drafts payable $ 369.8 $ — $ — $ 369.8 Other accrued liabilities 323.2 146.1 — 469.3 Gift card liability 194.4 — — 194.4 Advertising fund liabilities 83.3 — — 83.3 Current portion of long term debt and capital leases 93.9 — — 93.9 Total current liabilities 1,064.6 146.1 — 1,210.7 Term debt, net of current portion 8,410.2 — — 8,410.2 Capital leases, net of current portion 218.4 — — 218.4 Other liabilities, net 784.9 — — 784.9 Payables to affiliates 146.1 — (146.1 ) — Deferred income taxes, net 1,715.1 — — 1,715.1 Total liabilities 12,339.3 146.1 (146.1 ) 12,339.3 Partnership preferred units — 3,297.0 — 3,297.0 Partners’ capital: Class A common units — 3,364.1 — 3,364.1 Partnership exchangeable units — 1,476.2 — 1,476.2 Common shares 6,825.8 — (6,825.8 ) — Retained earnings 1,311.5 — (1,311.5 ) — Accumulated other comprehensive income (loss) (1,355.4 ) (1,355.4 ) 1,355.4 (1,355.4 ) Total Partners’ capital/shareholders’ equity 6,781.9 3,484.9 (6,781.9 ) 3,484.9 Noncontrolling interests 4.1 4.1 (4.1 ) 4.1 Total equity 6,786.0 3,489.0 (6,786.0 ) 3,489.0 Total liabilities, Partnership preferred units and equity $ 19,125.3 $ 6,932.1 $ (6,932.1 ) $ 19,125.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2017 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 550.4 $ — $ — $ 550.4 Franchise and property revenues 450.2 — — 450.2 Total revenues 1,000.6 — — 1,000.6 Cost of sales 423.4 — — 423.4 Franchise and property expenses 111.0 — — 111.0 Selling, general and administrative expenses 121.9 — — 121.9 (Income) loss from equity method investments (5.7 ) — — (5.7 ) Other operating expenses (income), net 13.8 — — 13.8 Total operating costs and expenses 664.4 — — 664.4 Income from operations 336.2 — — 336.2 Interest expense, net 111.4 — — 111.4 Loss on early extinguishment of debt 20.4 — — 20.4 Income before income taxes 204.4 — — 204.4 Income tax expense 37.8 — — 37.8 Net income 166.6 — — 166.6 Equity in earnings of consolidated subsidiaries — 166.6 (166.6 ) — Net income (loss) 166.6 166.6 (166.6 ) 166.6 Net income (loss) attributable to noncontrolling interests 0.4 0.4 (0.4 ) 0.4 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders $ 166.2 $ 98.7 $ (166.2 ) $ 98.7 Total comprehensive income (loss) $ 229.7 $ 229.7 $ (229.7 ) $ 229.7 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2016 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 490.5 $ — $ — $ 490.5 Franchise and property revenues 428.0 — — 428.0 Total revenues 918.5 — — 918.5 Cost of sales 390.6 — — 390.6 Franchise and property expenses 101.8 — — 101.8 Selling, general and administrative expenses 73.2 — — 73.2 (Income) loss from equity method investments (18.5 ) — — (18.5 ) Other operating expenses (income), net 40.8 — — 40.8 Total operating costs and expenses 587.9 — — 587.9 Income from operations 330.6 — — 330.6 Interest expense, net 115.1 — — 115.1 Income before income taxes 215.5 — — 215.5 Income tax expense 47.2 — — 47.2 Net income 168.3 — — 168.3 Equity in earnings of consolidated subsidiaries — 168.3 (168.3 ) — Net income (loss) 168.3 168.3 (168.3 ) 168.3 Net income (loss) attributable to noncontrolling interests 0.9 0.9 (0.9 ) 0.9 Partnership preferred unit distributions — 67.5 — 67.5 Net income (loss) attributable to common unitholders $ 167.4 $ 99.9 $ (167.4 ) $ 99.9 Total comprehensive income (loss) $ 534.3 $ 534.3 $ (534.3 ) $ 534.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2017 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 166.6 $ 166.6 $ (166.6 ) $ 166.6 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (166.6 ) 166.6 — Depreciation and amortization 43.4 — — 43.4 Non-cash 17.9 — — 17.9 Amortization of deferred financing costs and debt issuance discount 8.5 — — 8.5 (Income) loss from equity method investments (5.7 ) — — (5.7 ) Loss (gain) on remeasurement of foreign denominated transactions 10.4 — — 10.4 Net losses on derivatives 5.8 — — 5.8 Share-based compensation expense 16.5 — — 16.5 Deferred income taxes 15.3 — — 15.3 Other 3.6 — — 3.6 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 47.8 — — 47.8 Inventories and prepaids and other current assets (8.4 ) — — (8.4 ) Accounts and drafts payable 14.6 — — 14.6 Advertising fund restricted assets and fund liabilities 27.2 — — 27.2 Other accrued liabilities and gift card liability (82.6 ) — — (82.6 ) Other long-term assets and liabilities 20.1 — — 20.1 Net cash provided by operating activities 301.0 — — 301.0 Cash flows from investing activities: Payments for property and equipment (4.1 ) — — (4.1 ) Proceeds from disposal of assets, restaurant closures, and refranchisings 6.8 — — 6.8 Net payment for purchase of Popeyes, net of cash acquired (1,635.9 ) — — (1,635.9 ) Return of investment on direct financing leases 4.1 — — 4.1 Settlement/sale of derivatives, net 5.2 — — 5.2 Other investing activities, net (0.8 ) — — (0.8 ) Net cash provided by (used for) investing activities (1,624.7 ) — — (1,624.7 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 1,300.0 — — 1,300.0 Repayments of long-term debt and capital leases (319.9 ) — — (319.9 ) Payment of financing costs (31.8 ) — — (31.8 ) Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units — (145.9 ) — (145.9 ) Capital contribution from RBI Inc. 8.0 — — 8.0 Distributions from subsidiaries (145.9 ) 145.9 — — Other financing activities, net (1.1 ) — — (1.1 ) Net cash provided by (used for) financing activities 809.3 — — 809.3 Effect of exchange rates on cash and cash equivalents 3.3 — — 3.3 Increase (decrease) in cash and cash equivalents (511.1 ) — — (511.1 ) Cash and cash equivalents at beginning of period 1,420.4 — — 1,420.4 Cash and cash equivalents at end of period $ 909.3 $ — $ — $ 909.3 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2016 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 168.3 $ 168.3 $ (168.3 ) $ 168.3 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (168.3 ) 168.3 — Depreciation and amortization 42.1 — — 42.1 Amortization of deferred financing costs and debt issuance discount 9.7 — — 9.7 (Income) loss from equity method investments (18.5 ) — — (18.5 ) Loss (gain) on remeasurement of foreign denominated transactions 28.0 — — 28.0 Net losses on derivatives 3.5 — — 3.5 Share-based compensation expense 6.4 — — 6.4 Other 8.5 — — 8.5 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 34.1 — — 34.1 Inventories and prepaids and other current assets (78.6 ) — — (78.6 ) Accounts and drafts payable (6.6 ) — — (6.6 ) Advertising fund restricted assets and fund liabilities (15.7 ) — — (15.7 ) Other accrued liabilities and gift card liability 0.6 — — 0.6 Other long-term assets and liabilities (8.8 ) — — (8.8 ) Net cash provided by operating activities 173.0 — — 173.0 Cash flows from investing activities: Payments for property and equipment (5.6 ) — — (5.6 ) Proceeds from disposal of assets, restaurant closures, and refranchisings 7.2 — — 7.2 Return of investment on direct financing leases 4.1 — — 4.1 Settlement/sale of derivatives, net (1.1 ) — — (1.1 ) Other investing activities, net 2.2 — — 2.2 Net cash provided by (used for) investing activities 6.8 — — 6.8 Cash flows from financing activities: Repayments of long-term debt and capital leases (17.2 ) — — (17.2 ) Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units — (128.3 ) — (128.3 ) Capital contribution from RBI Inc. 6.5 — — 6.5 Distributions from subsidiaries (128.3 ) 128.3 — — Other financing activities, net 3.1 — — 3.1 Net cash provided by (used for) financing activities (135.9 ) — — (135.9 ) Effect of exchange rates on cash and cash equivalents 13.9 — — 13.9 Increase (decrease) in cash and cash equivalents 57.8 — — 57.8 Cash and cash equivalents at beginning of period 753.7 — — 753.7 Cash and cash equivalents at end of period $ 811.5 $ — $ — $ 811.5 |
Description of Business and O38
Description of Business and Organization - Additional Information (Detail) | Mar. 31, 2017RestaurantsCountry |
Basis Of Presentation [Line Items] | |
Number of franchised or owned | 23,155 |
Number of countries in which company and franchise restaurants operated | Country | 100 |
Percentage of franchised Tim Hortons and Burger King restaurants | 100.00% |
Tim Hortons [Member] | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned | 4,644 |
Burger King [Member] | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned | 15,768 |
Popeyes [Member] | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned | 2,743 |
Popeyes Acquisition - Additiona
Popeyes Acquisition - Additional Information (Detail) - USD ($) $ in Millions | Mar. 27, 2017 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||
Cash paid for acquisition | $ 1,635.9 | |
Popeyes Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition date | Mar. 27, 2017 | |
Total consideration of acquisition | $ 1,654.7 | |
Value of equity awards transferred | 32.6 | |
Cash paid for acquisition | 354.7 | |
Incremental borrowings for business acquisition | 1,300 | |
Repayment of debt | 155.5 | |
Popeyes Acquisition [Member] | Selling, General and Administrative Expenses [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition and related financing transactions fees and expenses | $ 34.4 |
Popeyes Acquisition - Schedule
Popeyes Acquisition - Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 27, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,787.3 | $ 4,675.1 | |
Popeyes Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 64.4 | ||
Property and equipment | 96.5 | ||
Popeyes brand | 1,020 | ||
Other assets | 0.7 | ||
Total current liabilities | (74.7) | ||
Total debt and capital lease obligations | (159) | ||
Deferred income taxes | (358.3) | ||
Other liabilities | (13.2) | ||
Total identifiable net assets | 576.4 | ||
Goodwill | 1,078.3 | ||
Total consideration | $ 1,654.7 |
Basis of Presentation and Con41
Basis of Presentation and Consolidation - Additional Information (Detail) - Restaurants | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Regulatory Assets [Abstract] | ||
Investment in other affiliates | 50.00% | |
Number of VIE consolidated restaurants | 81 | 96 |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted Earnings Per Unit (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income attributable to common unitholders | $ 98.7 | $ 99.9 |
Denominator - basic and diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 428.9 | 431.8 |
Class A Common Units [Member] | ||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income attributable to common unitholders | $ 50.2 | $ 50 |
Denominator - basic and diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 202 | 202 |
Earnings per unit - basic and diluted: | ||
Earnings per unit / share - basic and diluted | $ 0.25 | $ 0.25 |
Partnerships Exchangeable Units [Member] | ||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net income attributable to common unitholders | $ 48.5 | $ 49.9 |
Denominator - basic and diluted partnership units: | ||
Total weighted average basic and diluted units outstanding | 226.9 | 229.8 |
Earnings per unit - basic and diluted: | ||
Earnings per unit / share - basic and diluted | $ 0.21 | $ 0.22 |
Intangible Assets, Net and Go43
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | $ 1,094.8 | $ 1,091.1 |
Goodwill | 5,787.3 | 4,675.1 |
Identifiable assets, accumulated amortization | (299.8) | (282.1) |
Identifiable assets, Net | 795 | 809 |
Indefinite lived intangible assets, Net | 9,498.5 | 8,419 |
Intangible assets, net | 10,293.5 | 9,228 |
Tim Hortons [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill | 4,119.6 | 4,087.8 |
Tim Hortons [Member] | Trade Names [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets, Net | 6,393.4 | 6,341.6 |
Burger King [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill | 589.4 | 587.3 |
Burger King [Member] | Trade Names [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets, Net | 2,085.1 | 2,077.4 |
Popeyes [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill | 1,078.3 | |
Indefinite lived intangible assets, Net | 1,020 | |
Franchise Agreements [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | 658.1 | 655.1 |
Identifiable assets, accumulated amortization | (139.7) | (132.4) |
Identifiable assets, Net | 518.4 | 522.7 |
Favorable Lease [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Identifiable assets, Gross | 436.7 | 436 |
Identifiable assets, accumulated amortization | (160.1) | (149.7) |
Identifiable assets, Net | $ 276.6 | $ 286.3 |
Intangible Assets, Net and Go44
Intangible Assets, Net and Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $ 17.5 | $ 18.3 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 154.7 | $ 151.1 | |
Joint-venture interest | 50.00% | ||
Noncash dilution gain on the issuance of capital stock | $ 11.6 | ||
Carrols Restaurant Group, Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | $ 133.2 | ||
TIMWEN Partnership [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Joint-venture interest | 50.00% | ||
Cash distributions | $ 2.4 | 2.5 | |
Contingent rent expense | 4.5 | $ 4.4 | |
Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable from equity method investments | $ 25 | $ 25.7 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Equity Method Investment (Detail) | Mar. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment ownership percentage | 50.00% |
TIMWEN Partnership [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment ownership percentage | 50.00% |
TIMWEN Partnership [Member] | Canada [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment ownership percentage | 50.00% |
Carrols Restaurant Group, Inc. [Member] | United States [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment ownership percentage | 20.80% |
Pangaea Foods (China) Holdings, Ltd. [Member] | China [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment ownership percentage | 27.50% |
Equity Method Investments - S47
Equity Method Investments - Summary of Franchise and Property Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from affiliates: | ||
Franchise royalties | $ 242 | $ 227.8 |
Property revenues | 175 | 171.3 |
Franchise fees and other revenue | 33.2 | 28.9 |
Total | 450.2 | 428 |
Affiliates [Member] | ||
Revenues from affiliates: | ||
Franchise royalties | 38.5 | 27.7 |
Property revenues | 6.3 | 6.6 |
Franchise fees and other revenue | 5.7 | 3.6 |
Total | $ 50.5 | $ 37.9 |
Other Accrued Liabilities and48
Other Accrued Liabilities and Other Liabilities - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current: | ||
Dividend payable | $ 150.6 | $ 146.1 |
Interest payable | 81.8 | 63.3 |
Accrued compensation and benefits | 36.9 | 60.5 |
Taxes payable | 62.2 | 43.3 |
Deferred income | 49.4 | 54.7 |
Closed property reserve | 10.9 | 11 |
Restructuring and other provisions | 20.9 | 9.1 |
Other | 83.7 | 81.3 |
Other accrued liabilities | 496.4 | 469.3 |
Noncurrent: | ||
Unfavorable leases | 268.2 | 275.8 |
Taxes payable | 256.8 | 252.2 |
Accrued pension | 82.4 | 82.9 |
Derivatives liabilities | 61.3 | 55.1 |
Lease liability | 26.3 | 27.2 |
Deferred income | 37.1 | 27.1 |
Other | 73.9 | 64.6 |
Other liabilities, net | $ 806 | $ 784.9 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Other | $ 87.4 | $ 85.4 | |
Less: unamortized deferred financing costs and deferred issuance discount | (193.3) | (187.1) | |
Total debt, net | 9,622.2 | 8,485 | |
Less: current maturities of debt | (90.7) | (74.8) | |
Total long-term debt | 9,531.5 | 8,410.2 | |
Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Term Loan Facility | 6,187.1 | 5,046.1 | |
2015 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | 1,250 | 1,250 | |
2014 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | 2,250 | 2,250 | |
Tim Hortons Notes [Member] | |||
Debt Instrument [Line Items] | |||
Tim Hortons Notes | [1] | $ 41 | $ 40.6 |
[1] | Tim Hortons Notes comprise three series of senior notes: (i) C$48.0 million of series 1 notes, due June 1, 2017 bearing interest at 4.20%, (ii) C$2.6 million of series 2 notes, due December 1, 2023, bearing interest at 4.52%, and (iii) C$3.9 million of series 3 notes, due April 1, 2019, bearing interest at 2.85%. No principal payments are due until maturity. |
Long-Term Debt - Summary of L50
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2017CAD | |
2015 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Jan. 12, 2022 |
2014 Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Apr. 1, 2022 |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Aggregate principal amount of debt issued | CAD 0 |
Term Loan Facility [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Feb. 17, 2024 |
Series 1 Notes [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Jun. 1, 2017 |
Aggregate principal amount of debt issued | CAD 48,000,000 |
Senior convertible note, stated interest rate | 4.20% |
Series 2 Notes [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Dec. 1, 2023 |
Aggregate principal amount of debt issued | CAD 2,600,000 |
Senior convertible note, stated interest rate | 4.52% |
Series 3 Notes [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity Dates | Apr. 1, 2019 |
Aggregate principal amount of debt issued | CAD 3,900,000 |
Senior convertible note, stated interest rate | 2.85% |
Long-Term Debt - Refinancing of
Long-Term Debt - Refinancing of Credit Facilities - Additional Information (Detail) - USD ($) | Feb. 17, 2017 | Feb. 16, 2017 | Mar. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Loss on early extinguishment of debt | $ (20,400,000) | ||
Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount outstanding | $ 500,000,000 | ||
Senior Notes [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maturity Dates | Dec. 12, 2019 | ||
Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Maturity Dates | Feb. 17, 2024 | Dec. 12, 2021 | |
Interest rate | 1.25% | ||
Margin percentage for fluctuating interest rate | 2.25% | ||
Capitalized debt issuance costs | $ 11,300,000 | ||
Loss on early extinguishment of debt | $ 20,400,000 | ||
Term Loan [Member] | Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount outstanding | $ 4,900,000,000 | ||
Repayment of term loan facility | $ 146,100,000 |
Long-Term Debt - Incremental Te
Long-Term Debt - Incremental Term Loan - Additional Information (Detail) - Incremental Term Loan [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Aggregate principal amount | $ 1,300 |
Maturity Dates | Feb. 17, 2024 |
Capitalized debt issuance costs | $ 20.5 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) - Twenty Fifteen Amended Credit Agreement [Member] - Revolving Credit Facility [Member] | Mar. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Amount outstanding at the credit facility | 0 |
Amount withdrawn from revolving credit facility | 1,600,000 |
Remaining borrowing capacity | $ 498,400,000 |
Long-Term Debt - Fair Value Mea
Long-Term Debt - Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments And Cost Method Investments [Abstract] | ||
Fair value of variable rate term debt and bonds | $ 9,850 | $ 8,770 |
Carrying amount, net of original issue discount | $ 9,730 | $ 8,590 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Debt | $ 100 | $ 101.2 |
Capital lease obligations | 5 | 4.8 |
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.7 |
Interest income | (2.1) | (0.6) |
Interest expense, net | $ 111.4 | $ 115.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 18.50% | 21.90% |
Equity - Additional Information
Equity - Additional Information (Detail) shares in Millions | 3 Months Ended |
Mar. 31, 2017shares | |
Class A Common Units [Member] | |
Stockholders Equity [Line Items] | |
BKW reorganization into Partnership, Shares | 125,010 |
Equity - Summary of Changes in
Equity - Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | $ (1,355.4) | |
Foreign currency translation adjustment | 105.8 | |
Net change in fair value of derivatives, net of tax | (46.1) | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 3.7 | $ (0.1) |
Pension and post-retirement benefit plans, net of tax | (0.1) | |
Amortization of prior service (credits) costs, net of tax | (0.4) | (0.4) |
Amortization of actuarial (gains) losses, net of tax | 0.2 | 0.1 |
Accumulated other comprehensive income (loss), Ending balance | (1,292.3) | |
Gains (Losses) on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | 533.1 | |
Net change in fair value of derivatives, net of tax | (46.1) | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 3.7 | $ (0.1) |
Accumulated other comprehensive income (loss), Ending balance | 490.7 | |
Defined Benefit Pension [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | (32.8) | |
Pension and post-retirement benefit plans, net of tax | (0.1) | |
Amortization of prior service (credits) costs, net of tax | (0.4) | |
Amortization of actuarial (gains) losses, net of tax | 0.2 | |
Accumulated other comprehensive income (loss), Ending balance | (33.1) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning balance | (1,855.7) | |
Foreign currency translation adjustment | 105.8 | |
Accumulated other comprehensive income (loss), Ending balance | $ (1,749.9) |
Equity - Reclassifications Out
Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest rate derivative contracts, Income tax (expense) benefit | $ 1.3 | $ 0 |
Total reclassifications, Net of tax | (3.7) | 0.1 |
Total reclassifications, Net of tax | (3.5) | 0.4 |
Gains (Losses) on Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Forward-currency contracts, Cost of sales | 0.9 | 3.6 |
Interest rate derivative contracts, Interest expense, net | (5) | 0.1 |
Interest rate derivative contracts, Income tax (expense) benefit | 1.3 | |
Total reclassifications, Net of tax | (3.7) | 0.1 |
Gains (Losses) on Cash Flow Hedges [Member] | Interest Expense, Net [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest rate derivative contracts, Interest expense, net | (5.9) | (3.5) |
Defined Benefit Pension [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of prior service credits (costs), SG&A | 0.7 | 0.7 |
Amortization of actuarial gains (losses), SG&A | (0.3) | (0.1) |
Defined benefit pension plan expense before tax | 0.4 | 0.6 |
Defined benefit, Income tax (expense) benefit | (0.2) | (0.3) |
Total reclassifications, Net of tax | $ 0.2 | $ 0.3 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Dec. 31, 2015USD ($)Interest_Rate_Swaps | Mar. 31, 2017CAD | Mar. 31, 2017EUR (€) | |
Maximum [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency forward contract notional amount | $ 178,900,000 | |||
Interest Expense, Net [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of pre-tax losses in AOCI expect to be reclassified into interest expense | $ 12,500,000 | |||
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 | |||
Foreign currency forward contract notional amount | $ 2,500,000,000 | |||
Number of sequential interest rate swap | Interest_Rate_Swaps | 6 | |||
Derivative, type of interest rate paid on swap | Fixed | |||
Interest Rate Swaps [Member] | Interest Expense, Net [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net unrealized loss remaining in AOCI | $ 84,600,000 | |||
Cross Currency Interest Rate Contract [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency forward contract notional amount | $ 315,000,000 | |||
Foreign currency forward contract - net unrealized gains | $ 31,800,000 | |||
Cross Currency Interest Rate Contract [Member] | Maximum [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Outstanding cross currency rate swaps | 6.525% | |||
Cross Currency Interest Rate Contract [Member] | Minimum [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Outstanding cross currency rate swaps | 3.948% | |||
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 | € 1,107,800,000 | ||
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign currency forward contract notional amount | CAD | CAD 5,641,700,000 | |||
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member] | Maximum [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Outstanding cross currency rate swaps | 7.002% | |||
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member] | Minimum [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Outstanding cross currency rate swaps | 4.802% | |||
Cross Currency Interest Rate Contract [Member] | United States Dollar [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Cross-currency rate swaps, maturity date | Mar. 31, 2021 | |||
Foreign currency forward contract notional amount | $ 5,000,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Earnings | $ (5.8) | $ (3.5) |
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 | (5.9) | (3.5) |
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) | (5) | (51) |
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) | 1.5 | (9.1) |
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 | 0.9 | 3.6 |
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) | $ (54.2) | $ (274.1) |
Derivative Instruments - Summar
Derivative Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 661.8 | $ 720.7 |
Total liabilities at fair value | 62.2 | 56.2 |
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 | 57.2 | 55.1 |
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 | 0.9 | 1.1 |
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Prepaid and Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2 | 2.8 |
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 | 4.1 | |
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Derivative Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 659.8 | $ 717.9 |
Franchise and Property Revenu63
Franchise and Property Revenues - Summary of Franchise and Property Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Franchisor Revenue [Abstract] | ||
Franchise royalties | $ 242 | $ 227.8 |
Property revenues | 175 | 171.3 |
Franchise fees and other revenue | 33.2 | 28.9 |
Franchise and property revenues | $ 450.2 | $ 428 |
Other Operating Expenses (Inc64
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ 2.9 | $ 15.3 |
Litigation settlements and reserves, net | 0.7 | |
Net losses (gains) on foreign exchange | 10.4 | 24.1 |
Other, net | 0.5 | 0.7 |
Other operating expenses (income), net | $ 13.8 | $ 40.8 |
Segment Reporting and Geographi
Segment Reporting and Geographical Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017BrandSegment | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Number of brands | Brand | 3 |
Tim Hortons and Burger King Brand [Member] | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Geographic Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 1,000.6 | $ 918.5 |
United States [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 232.4 | 229.5 |
Canada [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 657 | 581.2 |
Other [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 111.2 | 107.8 |
Tim Hortons [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 733.6 | 657.8 |
Burger King [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 267 | $ 260.7 |
Segment Reporting - Revenues 67
Segment Reporting - Revenues by Geographic Segment (Parenthetical) (Detail) - Sales Revenue, Net [Member] - Geographic Concentration Risk [Member] | 3 Months Ended |
Mar. 31, 2017 | |
United States [Member] | |
Revenue, Major Customer [Line Items] | |
Revenues percentage | 10.00% |
Canada [Member] | |
Revenue, Major Customer [Line Items] | |
Revenues percentage | 10.00% |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Impact of equity method investments | $ 5.7 | $ 18.5 | |
Other operating expenses (income), net | (13.8) | (40.8) | |
EBITDA | 379.5 | 372.6 | |
Depreciation and amortization | 43.3 | 42 | |
Income from operations | 336.2 | 330.6 | |
Interest expense, net | 111.4 | 115.1 | |
Loss on early extinguishment of debt | 20.4 | ||
Income tax expense (benefit) | 37.8 | 47.2 | |
Net income | 166.6 | 168.3 | |
Popeyes [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
PLK Transaction costs | 34.4 | ||
Operating Segments [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 443.3 | 407.8 | |
Operating Segments [Member] | Tim Hortons [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 256.2 | 227.8 | |
Operating Segments [Member] | Burger King [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Segment income | 187.1 | 180 | |
Unallocated Management G&A [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Share-based compensation and non-cash incentive compensation expense | 18.5 | 7.9 | |
Integration costs | 2.2 | ||
Impact of equity method investments | [1] | (2.9) | (15.7) |
Other operating expenses (income), net | $ 13.8 | $ 40.8 | |
[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. |
Supplemental Financial Inform69
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 909.3 | $ 1,420.4 | $ 811.5 | $ 753.7 |
Accounts and notes receivable, net | 362 | 403.5 | ||
Inventories, net | 83.3 | 71.8 | ||
Advertising fund restricted assets | 85.7 | 57.7 | ||
Prepaids and other current assets | 122.2 | 103.6 | ||
Total current assets | 1,562.5 | 2,057 | ||
Property and equipment, net | 2,140.4 | 2,054.7 | ||
Intangible assets, net | 10,293.5 | 9,228 | ||
Goodwill | 5,787.3 | 4,675.1 | ||
Net investment in property leased to franchisees | 85.3 | 91.9 | ||
Derivative assets | 659.8 | 717.9 | ||
Investment in subsidiaries | 154.7 | 151.1 | ||
Other assets, net | 294 | 300.7 | ||
Total assets | 20,822.8 | 19,125.3 | ||
Current liabilities: | ||||
Accounts and drafts payable | 391.4 | 369.8 | ||
Other accrued liabilities | 496.4 | 469.3 | ||
Gift card liability | 139.1 | 194.4 | ||
Advertising fund liabilities | 137.9 | 83.3 | ||
Current portion of long term debt and capital leases | 110.1 | 93.9 | ||
Total current liabilities | 1,274.9 | 1,210.7 | ||
Term debt, net of current portion | 9,531.5 | 8,410.2 | ||
Capital leases, net of current portion | 226.5 | 218.4 | ||
Other liabilities, net | 806 | 784.9 | ||
Deferred income taxes, net | 2,089.2 | 1,715.1 | ||
Total liabilities | 13,928.1 | 12,339.3 | ||
Partnership preferred units | 3,297 | 3,297 | ||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | (1,292.3) | (1,355.4) | ||
Total Partners' capital | 3,593.9 | 3,484.9 | ||
Noncontrolling interests | 3.8 | 4.1 | ||
Total equity | 3,597.7 | 3,489 | ||
Total liabilities, Partnership preferred units and equity | 20,822.8 | 19,125.3 | ||
Borrowers [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 909.3 | 1,420.4 | $ 811.5 | $ 753.7 |
Accounts and notes receivable, net | 362 | 403.5 | ||
Inventories, net | 83.3 | 71.8 | ||
Advertising fund restricted assets | 85.7 | 57.7 | ||
Prepaids and other current assets | 122.2 | 103.6 | ||
Total current assets | 1,562.5 | 2,057 | ||
Property and equipment, net | 2,140.4 | 2,054.7 | ||
Intangible assets, net | 10,293.5 | 9,228 | ||
Goodwill | 5,787.3 | 4,675.1 | ||
Net investment in property leased to franchisees | 85.3 | 91.9 | ||
Derivative assets | 659.8 | 717.9 | ||
Other assets, net | 294 | 300.7 | ||
Total assets | 20,822.8 | 19,125.3 | ||
Current liabilities: | ||||
Accounts and drafts payable | 391.4 | 369.8 | ||
Other accrued liabilities | 345.8 | 323.2 | ||
Gift card liability | 139.1 | 194.4 | ||
Advertising fund liabilities | 137.9 | 83.3 | ||
Current portion of long term debt and capital leases | 110.1 | 93.9 | ||
Total current liabilities | 1,124.3 | 1,064.6 | ||
Term debt, net of current portion | 9,531.5 | 8,410.2 | ||
Capital leases, net of current portion | 226.5 | 218.4 | ||
Other liabilities, net | 806 | 784.9 | ||
Payables to affiliates | 150.6 | 146.1 | ||
Deferred income taxes, net | 2,089.2 | 1,715.1 | ||
Total liabilities | 13,928.1 | 12,339.3 | ||
Partners' capital: | ||||
Common shares | 6,705.5 | 6,825.8 | ||
Retained earnings | 1,477.7 | 1,311.5 | ||
Accumulated other comprehensive income (loss) | (1,292.3) | (1,355.4) | ||
Total Partners' capital | 6,890.9 | 6,781.9 | ||
Noncontrolling interests | 3.8 | 4.1 | ||
Total equity | 6,894.7 | 6,786 | ||
Total liabilities, Partnership preferred units and equity | 20,822.8 | 19,125.3 | ||
Restaurant Brands International Limited Partnership [Member] | ||||
Current assets: | ||||
Intercompany receivable | 150.6 | 146.1 | ||
Investment in subsidiaries | 6,894.7 | |||
Investment in subsidiaries | 6,786 | |||
Total assets | 7,045.3 | 6,932.1 | ||
Current liabilities: | ||||
Other accrued liabilities | 150.6 | 146.1 | ||
Total current liabilities | 150.6 | 146.1 | ||
Total liabilities | 150.6 | 146.1 | ||
Partnership preferred units | 3,297 | 3,297 | ||
Partners' capital: | ||||
Accumulated other comprehensive income (loss) | (1,292.3) | (1,355.4) | ||
Total Partners' capital | 3,593.9 | 3,484.9 | ||
Noncontrolling interests | 3.8 | 4.1 | ||
Total equity | 3,597.7 | 3,489 | ||
Total liabilities, Partnership preferred units and equity | 7,045.3 | 6,932.1 | ||
Class A Common Units [Member] | ||||
Partners' capital: | ||||
Class A common units | 3,408.8 | 3,364.1 | ||
Total equity | 3,408.8 | 3,364.1 | ||
Class A Common Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Class A common units | 3,408.8 | 3,364.1 | ||
Partnerships Exchangeable Units [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 1,477.4 | 1,476.2 | ||
Total equity | 1,477.4 | 1,476.2 | ||
Partnerships Exchangeable Units [Member] | Restaurant Brands International Limited Partnership [Member] | ||||
Partners' capital: | ||||
Partnership exchangeable units | 1,477.4 | 1,476.2 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Intercompany receivable | (150.6) | (146.1) | ||
Investment in subsidiaries | (6,894.7) | |||
Investment in subsidiaries | (6,786) | |||
Total assets | (7,045.3) | (6,932.1) | ||
Current liabilities: | ||||
Payables to affiliates | (150.6) | (146.1) | ||
Total liabilities | (150.6) | (146.1) | ||
Partners' capital: | ||||
Common shares | (6,705.5) | (6,825.8) | ||
Retained earnings | (1,477.7) | (1,311.5) | ||
Accumulated other comprehensive income (loss) | 1,292.3 | 1,355.4 | ||
Total Partners' capital | (6,890.9) | (6,781.9) | ||
Noncontrolling interests | (3.8) | (4.1) | ||
Total equity | (6,894.7) | (6,786) | ||
Total liabilities, Partnership preferred units and equity | $ (7,045.3) | $ (6,932.1) |
Supplemental Financial Inform70
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Sales | $ 550.4 | $ 490.5 |
Franchise and property revenues | 450.2 | 428 |
Total revenues | 1,000.6 | 918.5 |
Cost of sales | 423.4 | 390.6 |
Franchise and property expenses | 111 | 101.8 |
Selling, general and administrative expenses | 121.9 | 73.2 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Other operating expenses (income), net | 13.8 | 40.8 |
Total operating costs and expenses | 664.4 | 587.9 |
Income from operations | 336.2 | 330.6 |
Interest expense, net | 111.4 | 115.1 |
Loss on early extinguishment of debt | 20.4 | |
Income before income taxes | 204.4 | 215.5 |
Income tax expense | 37.8 | 47.2 |
Net income | 166.6 | 168.3 |
Net income | 166.6 | 168.3 |
Net income (loss) attributable to noncontrolling interests | 0.4 | 0.9 |
Partnership preferred unit distributions | 67.5 | 67.5 |
Net income attributable to common unitholders | 98.7 | 99.9 |
Total comprehensive income (loss) | 229.7 | 534.3 |
Eliminations [Member] | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | (166.6) | (168.3) |
Net income | (166.6) | (168.3) |
Net income (loss) attributable to noncontrolling interests | (0.4) | (0.9) |
Net income attributable to common unitholders | (166.2) | (167.4) |
Total comprehensive income (loss) | (229.7) | (534.3) |
Borrowers [Member] | ||
Revenues: | ||
Sales | 550.4 | 490.5 |
Franchise and property revenues | 450.2 | 428 |
Total revenues | 1,000.6 | 918.5 |
Cost of sales | 423.4 | 390.6 |
Franchise and property expenses | 111 | 101.8 |
Selling, general and administrative expenses | 121.9 | 73.2 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Other operating expenses (income), net | 13.8 | 40.8 |
Total operating costs and expenses | 664.4 | 587.9 |
Income from operations | 336.2 | 330.6 |
Interest expense, net | 111.4 | 115.1 |
Loss on early extinguishment of debt | 20.4 | |
Income before income taxes | 204.4 | 215.5 |
Income tax expense | 37.8 | 47.2 |
Net income | 166.6 | 168.3 |
Net income | 166.6 | 168.3 |
Net income (loss) attributable to noncontrolling interests | 0.4 | 0.9 |
Net income attributable to common unitholders | 166.2 | 167.4 |
Total comprehensive income (loss) | 229.7 | 534.3 |
Restaurant Brands International Limited Partnership [Member] | ||
Revenues: | ||
Equity in earnings of consolidated subsidiaries | 166.6 | 168.3 |
Net income | 166.6 | 168.3 |
Net income (loss) attributable to noncontrolling interests | 0.4 | 0.9 |
Partnership preferred unit distributions | 67.5 | 67.5 |
Net income attributable to common unitholders | 98.7 | 99.9 |
Total comprehensive income (loss) | $ 229.7 | $ 534.3 |
Supplemental Financial Inform71
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 166.6 | $ 168.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43.4 | 42.1 |
Non-cash loss on early extinguishment of debt | 17.9 | |
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.7 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Loss (gain) on remeasurement of foreign denominated transactions | 10.4 | 28 |
Net losses on derivatives | 5.8 | 3.5 |
Share-based compensation expense | 16.5 | 6.4 |
Deferred income taxes | 15.3 | |
Other | 3.6 | 8.5 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 47.8 | 34.1 |
Inventories and prepaids and other current assets | (8.4) | (78.6) |
Accounts and drafts payable | 14.6 | (6.6) |
Advertising fund restricted assets and fund liabilities | 27.2 | (15.7) |
Other accrued liabilities and gift card liability | (82.6) | 0.6 |
Other long-term assets and liabilities | 20.1 | (8.8) |
Net cash provided by operating activities | 301 | 173 |
Cash flows from investing activities: | ||
Payments for property and equipment | (4.1) | (5.6) |
Proceeds from disposal of assets, restaurant closures, and refranchisings | 6.8 | 7.2 |
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9) | |
Return of investment on direct financing leases | 4.1 | 4.1 |
Settlement/sale of derivatives, net | 5.2 | (1.1) |
Other investing activities, net | (0.8) | 2.2 |
Net cash provided by (used for) investing activities | (1,624.7) | 6.8 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,300 | |
Repayments of long-term debt and capital leases | (319.9) | (17.2) |
Payment of financing costs | (31.8) | |
Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units | (145.9) | (128.3) |
Capital contribution from RBI Inc. | 8 | 6.5 |
Other financing activities, net | (1.1) | 3.1 |
Net cash provided by (used for) financing activities | 809.3 | (135.9) |
Effect of exchange rates on cash and cash equivalents | 3.3 | 13.9 |
Increase (decrease) in cash and cash equivalents | (511.1) | 57.8 |
Cash and cash equivalents at beginning of period | 1,420.4 | 753.7 |
Cash and cash equivalents at end of period | 909.3 | 811.5 |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (166.6) | (168.3) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 166.6 | 168.3 |
Borrowers [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 166.6 | 168.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43.4 | 42.1 |
Non-cash loss on early extinguishment of debt | 17.9 | |
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.7 |
(Income) loss from equity method investments | (5.7) | (18.5) |
Loss (gain) on remeasurement of foreign denominated transactions | 10.4 | 28 |
Net losses on derivatives | 5.8 | 3.5 |
Share-based compensation expense | 16.5 | 6.4 |
Deferred income taxes | 15.3 | |
Other | 3.6 | 8.5 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 47.8 | 34.1 |
Inventories and prepaids and other current assets | (8.4) | (78.6) |
Accounts and drafts payable | 14.6 | (6.6) |
Advertising fund restricted assets and fund liabilities | 27.2 | (15.7) |
Other accrued liabilities and gift card liability | (82.6) | 0.6 |
Other long-term assets and liabilities | 20.1 | (8.8) |
Net cash provided by operating activities | 301 | 173 |
Cash flows from investing activities: | ||
Payments for property and equipment | (4.1) | (5.6) |
Proceeds from disposal of assets, restaurant closures, and refranchisings | 6.8 | 7.2 |
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9) | |
Return of investment on direct financing leases | 4.1 | 4.1 |
Settlement/sale of derivatives, net | 5.2 | (1.1) |
Other investing activities, net | (0.8) | 2.2 |
Net cash provided by (used for) investing activities | (1,624.7) | 6.8 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 1,300 | |
Repayments of long-term debt and capital leases | (319.9) | (17.2) |
Payment of financing costs | (31.8) | |
Capital contribution from RBI Inc. | 8 | 6.5 |
Distributions from subsidiaries | (145.9) | (128.3) |
Other financing activities, net | (1.1) | 3.1 |
Net cash provided by (used for) financing activities | 809.3 | (135.9) |
Effect of exchange rates on cash and cash equivalents | 3.3 | 13.9 |
Increase (decrease) in cash and cash equivalents | (511.1) | 57.8 |
Cash and cash equivalents at beginning of period | 1,420.4 | 753.7 |
Cash and cash equivalents at end of period | 909.3 | 811.5 |
Restaurant Brands International Limited Partnership [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 166.6 | 168.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | (166.6) | (168.3) |
Cash flows from financing activities: | ||
Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units | (145.9) | (128.3) |
Distributions from subsidiaries | $ 145.9 | $ 128.3 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 26, 2017 | Apr. 04, 2017 | Apr. 03, 2017 |
Subsequent Event [Line Items] | |||
Cash dividend paid per common share | $ 0.18 | ||
Cash dividend paid per preferred share | $ 0.98 | ||
Dividend payable record date | May 15, 2017 | Mar. 3, 2017 | |
Dividends paid preferred share | $ 67.5 | ||
Cash dividend declared by board | $ 0.19 | ||
Dividend to be paid date | Jul. 6, 2017 | ||
Partnerships Exchangeable Units [Member] | |||
Subsequent Event [Line Items] | |||
Partnership exchangeable unit | $ 0.19 | $ 0.18 | |
Preferred Share [Member] | |||
Subsequent Event [Line Items] | |||
Dividend payable record date | Jul. 5, 2017 | ||
Cash dividend declared by board | $ 0.98 | ||
Dividends Payable preferred share | $ 67.5 |