Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36787 | |
Entity Registrant Name | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-1206431 | |
Entity Address, Address Line One | 130 King Street West, Suite 300 | |
Entity Address, City or Town | Toronto, | |
Entity Address, State or Province | ON | |
Entity Address, Postal Zip Code | M5X 1E1 | |
City Area Code | 905 | |
Local Phone Number | 339-6011 | |
Title of 12(g) Security | Class B exchangeable limited partnership units | |
Trading Symbol | QSP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001618755 | |
Current Fiscal Year End Date | --12-31 | |
Partnership exchangeable units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 154,892,524 | |
Class A common units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 202,006,067 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||||
Cash and cash equivalents | $ 1,749 | $ 1,560 | $ 1,540 | $ 1,533 | ||
Accounts and notes receivable, net of allowance of $23 and $42, respectively | 535 | 536 | ||||
Inventories, net | 99 | 96 | ||||
Prepaids and other current assets | 132 | 72 | ||||
Total current assets | 2,515 | 2,264 | ||||
Property and equipment, net of accumulated depreciation and amortization of $940 and $879, respectively | 2,033 | 2,031 | ||||
Operating lease assets, net | 1,143 | 1,152 | ||||
Intangible assets, net | 10,820 | 10,701 | ||||
Goodwill | 5,831 | 5,739 | ||||
Net investment in property leased to franchisees | 80 | 66 | ||||
Other assets, net | 819 | 824 | ||||
Total assets | 23,241 | 22,777 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 575 | 464 | ||||
Other accrued liabilities | 812 | 835 | ||||
Gift card liability | 149 | 191 | ||||
Current portion of long-term debt and finance leases | 113 | 111 | ||||
Total current liabilities | 1,649 | 1,601 | ||||
Long-term debt, net of current portion | 12,375 | 12,397 | ||||
Finance leases, net of current portion | 326 | 315 | ||||
Operating lease liabilities, net of current portion | 1,078 | 1,082 | ||||
Other liabilities, net | 2,110 | 2,236 | ||||
Deferred income taxes, net | 1,444 | 1,425 | ||||
Total liabilities | 18,982 | 19,056 | ||||
Partners’ capital: | ||||||
Accumulated other comprehensive income (loss) | (1,012) | (1,275) | ||||
Total Partners’ capital | 4,255 | 3,717 | ||||
Noncontrolling interests | 4 | 4 | ||||
Total equity | 4,259 | $ 4,002 | 3,721 | 3,852 | $ 3,752 | 4,259 |
Total liabilities and equity | 23,241 | 22,777 | ||||
Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units; 202,006,067 issued and outstanding at June 30, 2021 and December 31, 2020 | 8,222 | 7,994 | ||||
Total equity | 8,222 | 8,066 | 7,994 | 7,947 | 7,840 | 7,786 |
Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units; 154,952,900 issued and outstanding at June 30, 2021; 155,113,338 issued and outstanding at December 31, 2020 | (2,955) | (3,002) | ||||
Total equity | $ (2,955) | $ (2,998) | $ (3,002) | $ (2,526) | $ (2,370) | $ (2,353) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financing receivable, allowance for credit loss, current | $ 23 | $ 42 |
Accumulated depreciation and amortization, property, plant, and equipment | $ 940 | $ 879 |
Partnership exchangeable units, issued (in shares) | 155,113,338 | |
Class A common units | ||
Class A common units, issued (in shares) | 202,006,067 | 202,006,067 |
Class A common units, outstanding (in shares) | 202,006,067 | 202,006,067 |
Partnership exchangeable units | ||
Partnership exchangeable units, issued (in shares) | 154,952,900 | 155,113,338 |
Partnership exchangeable units, outstanding (in shares) | 154,952,900 | 155,113,338 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||||
Total revenues | $ 1,438 | $ 1,048 | $ 2,698 | $ 2,273 | ||
Operating costs and expenses: | ||||||
Cost of sales | 467 | 339 | 868 | 738 | ||
Franchise and property expenses | 121 | 132 | 237 | 255 | ||
Advertising expenses | 238 | 203 | 474 | 429 | ||
General and administrative expenses | 113 | 94 | 218 | 196 | ||
(Income) loss from equity method investments | 3 | 16 | 5 | 18 | ||
Other operating expenses (income), net | 8 | 21 | (34) | 5 | ||
Total operating costs and expenses | 950 | 805 | 1,768 | 1,641 | ||
Income from operations | 488 | 243 | 930 | 632 | ||
Interest expense, net | 126 | 128 | 250 | 247 | ||
Income before income taxes | 362 | 115 | 680 | 385 | ||
Income tax (benefit) expense | (29) | (49) | 18 | (3) | ||
Net income | 391 | $ 271 | 164 | $ 224 | 662 | 388 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 1 | ||
Net income attributable to common unitholders | 390 | 163 | 660 | 387 | ||
Class A common units | ||||||
Operating costs and expenses: | ||||||
Net income | 259 | 179 | 106 | 144 | ||
Net income attributable to common unitholders | $ 259 | $ 106 | $ 438 | $ 250 | ||
Earnings per unit - basic and diluted | ||||||
Earnings per share, basic (in shares) | $ 1.28 | $ 0.52 | $ 2.17 | $ 1.24 | ||
Earnings per share, diluted (in shares) | $ 1.28 | $ 0.52 | $ 2.17 | $ 1.24 | ||
Weighted average units outstanding - basic and diluted | ||||||
Weighted average number of shares outstanding, basic (in dollars per share) | 202,000 | 202,000 | 202,000 | 202,000 | ||
Weighted average number of shares outstanding, diluted (in dollars per share) | 202,000 | 202,000 | 202,000 | 202,000 | ||
Partnership exchangeable units | ||||||
Operating costs and expenses: | ||||||
Net income | $ 131 | $ 91 | $ 57 | $ 80 | ||
Net income attributable to common unitholders | $ 131 | $ 57 | $ 222 | $ 137 | ||
Earnings per unit - basic and diluted | ||||||
Earnings per share, basic (in shares) | $ 0.84 | $ 0.35 | $ 1.43 | $ 0.83 | ||
Earnings per share, diluted (in shares) | $ 0.84 | $ 0.35 | $ 1.43 | $ 0.83 | ||
Weighted average units outstanding - basic and diluted | ||||||
Weighted average number of shares outstanding, basic (in dollars per share) | 155,000 | 164,000 | 155,000 | 165,000 | ||
Weighted average number of shares outstanding, diluted (in dollars per share) | 155,000 | 164,000 | 155,000 | 165,000 | ||
Sales | ||||||
Revenues: | ||||||
Sales | $ 590 | $ 406 | $ 1,097 | $ 909 | ||
Franchise and property revenues | ||||||
Revenues: | ||||||
Total revenues | 614 | 450 | 1,162 | 975 | ||
Advertising revenues | ||||||
Revenues: | ||||||
Sales | 234 | 192 | 439 | 389 | ||
Total revenues | $ 234 | $ 192 | $ 439 | $ 389 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 391 | $ 164 | $ 662 | $ 388 |
Foreign currency translation adjustment | 141 | 342 | 195 | (409) |
Net change in fair value of net investment hedges, net of tax of $21, $54, $41 and $(52) | (71) | (174) | (42) | 237 |
Net change in fair value of cash flow hedges, net of tax of $5, $13, $(28) and $92 | (40) | (37) | 55 | (251) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(4), $(6), $(12) and $(10) | 29 | 18 | 53 | 29 |
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 1 | 0 | 2 | 0 |
Other comprehensive income (loss) | 60 | 149 | 263 | (394) |
Comprehensive income (loss) | 451 | 313 | 925 | (6) |
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 1 |
Comprehensive income (loss) attributable to common unitholders | $ 450 | $ 312 | $ 923 | $ (7) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Derivatives used in net investment hedge, tax | $ 21 | $ 54 | $ 41 | $ (52) |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | 5 | 13 | (28) | 92 |
Other comprehensive income (loss), cash flow hedge, gain (loss), reclassification, tax | (4) | (6) | (12) | (10) |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A common units | Partnership exchangeable units |
Beginning balance Class A (in shares) at Dec. 31, 2019 | 202,006,067 | ||||
Beginning balances at Dec. 31, 2019 | $ 4,259 | $ (1,178) | $ 4 | $ 7,786 | $ (2,353) |
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2019 | 165,507,199 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions declared on Class A common units ($0.81 per unit) | (156) | (156) | |||
Distributions declared on partnership exchangeable units ($0.53 per unit) | (86) | $ (86) | |||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 11 | $ (11) | ||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (178,046) | ||||
Capital contribution from RBI | 55 | 55 | |||
Restaurant VIE contributions (distributions) | (1) | (1) | |||
Net income | 224 | $ 144 | $ 80 | ||
Other comprehensive income (loss) | (543) | (543) | |||
Ending balance Class A (in shares) at Mar. 31, 2020 | 202,006,067 | ||||
Ending balances at Mar. 31, 2020 | 3,752 | (1,721) | 3 | $ 7,840 | $ (2,370) |
Ending balance partnership exchangeable units (in shares) at Mar. 31, 2020 | 165,329,153 | ||||
Beginning balance Class A (in shares) at Dec. 31, 2019 | 202,006,067 | ||||
Beginning balances at Dec. 31, 2019 | 4,259 | (1,178) | 4 | $ 7,786 | $ (2,353) |
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2019 | 165,507,199 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 388 | ||||
Other comprehensive income (loss) | (394) | ||||
Ending balance Class A (in shares) at Jun. 30, 2020 | 202,006,067 | ||||
Ending balances at Jun. 30, 2020 | 3,852 | (1,572) | 3 | $ 7,947 | $ (2,526) |
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2020 | 162,834,299 | ||||
Beginning balance Class A (in shares) at Mar. 31, 2020 | 202,006,067 | ||||
Beginning balances at Mar. 31, 2020 | 3,752 | (1,721) | 3 | $ 7,840 | $ (2,370) |
Beginning balance partnership exchangeable unit (in shares) at Mar. 31, 2020 | 165,329,153 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions declared on Class A common units ($0.81 per unit) | (158) | (158) | |||
Distributions declared on partnership exchangeable units ($0.53 per unit) | (85) | $ (85) | |||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 128 | $ (128) | ||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (2,494,854) | ||||
Capital contribution from RBI | 31 | 31 | |||
Restaurant VIE contributions (distributions) | (1) | (1) | |||
Net income | 164 | $ 106 | $ 57 | ||
Other comprehensive income (loss) | 149 | 149 | |||
Ending balance Class A (in shares) at Jun. 30, 2020 | 202,006,067 | ||||
Ending balances at Jun. 30, 2020 | 3,852 | (1,572) | 3 | $ 7,947 | $ (2,526) |
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2020 | 162,834,299 | ||||
Beginning balance Class A (in shares) at Dec. 31, 2020 | 202,006,067 | ||||
Beginning balances at Dec. 31, 2020 | 3,721 | (1,275) | 4 | $ 7,994 | $ (3,002) |
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2020 | 155,113,338 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions declared on Class A common units ($0.81 per unit) | (163) | (163) | |||
Distributions declared on partnership exchangeable units ($0.53 per unit) | (82) | $ (82) | |||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 5 | $ (5) | ||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (72,671) | ||||
Capital contribution from RBI | 51 | 51 | |||
Restaurant VIE contributions (distributions) | 1 | 1 | |||
Net income | 271 | 1 | $ 179 | $ 91 | |
Other comprehensive income (loss) | 203 | 203 | |||
Ending balance Class A (in shares) at Mar. 31, 2021 | 202,006,067 | ||||
Ending balances at Mar. 31, 2021 | 4,002 | (1,072) | 6 | $ 8,066 | $ (2,998) |
Ending balance partnership exchangeable units (in shares) at Mar. 31, 2021 | 155,040,667 | ||||
Beginning balance Class A (in shares) at Dec. 31, 2020 | 202,006,067 | ||||
Beginning balances at Dec. 31, 2020 | 3,721 | (1,275) | 4 | $ 7,994 | $ (3,002) |
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2020 | 155,113,338 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (160,438) | ||||
Net income | 662 | ||||
Other comprehensive income (loss) | 263 | ||||
Ending balance Class A (in shares) at Jun. 30, 2021 | 202,006,067 | ||||
Ending balances at Jun. 30, 2021 | 4,259 | (1,012) | 4 | $ 8,222 | $ (2,955) |
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2021 | 154,952,900 | ||||
Beginning balance Class A (in shares) at Mar. 31, 2021 | 202,006,067 | ||||
Beginning balances at Mar. 31, 2021 | 4,002 | (1,072) | 6 | $ 8,066 | $ (2,998) |
Beginning balance partnership exchangeable unit (in shares) at Mar. 31, 2021 | 155,040,667 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions declared on Class A common units ($0.81 per unit) | (164) | (164) | |||
Distributions declared on partnership exchangeable units ($0.53 per unit) | (82) | $ (82) | |||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 6 | $ (6) | ||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (87,767) | ||||
Capital contribution from RBI | 55 | 55 | |||
Restaurant VIE contributions (distributions) | (3) | (3) | |||
Net income | 391 | 1 | $ 259 | $ 131 | |
Other comprehensive income (loss) | 60 | 60 | |||
Ending balance Class A (in shares) at Jun. 30, 2021 | 202,006,067 | ||||
Ending balances at Jun. 30, 2021 | $ 4,259 | $ (1,012) | $ 4 | $ 8,222 | $ (2,955) |
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2021 | 154,952,900 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend declared by board (in usd per share) | $ 0.81 | $ 0.81 | $ 0.78 | $ 0.77 |
Distributions dividends declared (in usd per share) | $ 0.53 | $ 0.53 | $ 0.52 | $ 0.52 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 662 | $ 388 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 100 | 91 |
Amortization of deferred financing costs and debt issuance discount | 13 | 12 |
(Income) loss from equity method investments | 5 | 18 |
(Gain) loss on remeasurement of foreign denominated transactions | (35) | 10 |
Net (gains) losses on derivatives | 42 | (1) |
Share-based compensation expense | 40 | 39 |
Deferred income taxes | 24 | (131) |
Other | (12) | 20 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 17 | (36) |
Inventories and prepaids and other current assets | (5) | (28) |
Accounts and drafts payable | 103 | (158) |
Other accrued liabilities and gift card liability | (123) | (13) |
Tenant inducements paid to franchisees | (1) | (5) |
Other long-term assets and liabilities | (98) | (10) |
Net cash provided by operating activities | 732 | 196 |
Cash flows from investing activities: | ||
Payments for property and equipment | (46) | (39) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 14 | 5 |
Settlement/sale of derivatives, net | 1 | 22 |
Other investing activities, net | (5) | 0 |
Net cash (used for) provided by investing activities | (36) | (12) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit and long-term debt | 0 | 1,585 |
Repayments of revolving line of credit, long-term debt and finance leases | (54) | (1,045) |
Payment of financing costs | 0 | (10) |
Distributions on Class A common and Partnership exchangeable units | (484) | (716) |
Capital contribution from RBI | 56 | 41 |
(Payments) proceeds from derivatives | (32) | (14) |
Other financing activities, net | (2) | (2) |
Net cash (used for) provided by financing activities | (516) | (161) |
Effect of exchange rates on cash and cash equivalents | 9 | (16) |
Increase (decrease) in cash and cash equivalents | 189 | 7 |
Cash and cash equivalents at beginning of period | 1,560 | 1,533 |
Cash and cash equivalents at end of period | 1,749 | 1,540 |
Supplemental cash flow disclosures: | ||
Interest paid | 198 | 234 |
Income taxes paid | $ 142 | $ 60 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “our”) is a Canadian limited partnership. We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons ® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King ® brand (“Burger King” or “BK”), and chicken under the Popeyes ® brand (“Popeyes” or “PLK”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of June 30, 2021, we franchised or owned 5,065 Tim Hortons restaurants, 18,776 Burger King restaurants, and 3,562 Popeyes restaurants, for a total of 27,403 restaurants, and operate in more than 100 countries. Approximately 100% of current system-wide restaurants are franchised. 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. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | 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 filed with the SEC and Canadian securities regulatory authorities on February 23, 2021. 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. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable. As our 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. 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 June 30, 2021 and December 31, 2020, we determined that we are the primary beneficiary of 50 and 38 Restaurant VIEs, respectively, and accordingly, have consolidated the results of operations, assets and liabilities, and cash flows of these Restaurant VIEs in our Financial Statements. Material intercompany accounts and transactions have been eliminated in consolidation. 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. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. 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 consist of the quarter and year to date June 30, 2020 reclassification of advertising fund contributions from Franchise and property revenues to Advertising revenues and advertising fund expenses from Selling, general and administrative expenses to Advertising expenses, with General and administrative expenses now presented separately. Depreciation and amortization expenses related to the advertising funds for the three and six months ended June 30, 2020 have also been reclassified from Franchise and property expenses to Advertising expenses. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Simplifying the Accounting for Income Taxes – In December 2019, the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes . The amendment is effective commencing in 2021 with early adoption permitted. The adoption of this new guidance in 2021 did not have a material impact on our Financial Statements. Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. We are currently evaluating the impact that the adoption of this new guidance will have on our Financial Statements and have not adopted any of the transition relief available under the new guidance as of June 30, 2021. Lessors—Certain Leases with Variable Lease Payments – In July 2021, the FASB issued guidance that requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if (a) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with lease classification criteria and (b) the lessor would have otherwise recognized a day-one loss. This amendment is effective in 2022 with early adoption permitted. This guidance may be applied either retrospectively to leases that commenced or were modified on or after the adoption of lease guidance we adopted in 2019 or prospectively to leases that commence or are modified on or after the date that this new guidance is applied. We are currently evaluating the impact that the adoption of this new guidance will have on our Financial Statements. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Lease income - operating leases Minimum lease payments $ 117 $ 109 $ 230 $ 221 Variable lease payments 84 46 150 109 Amortization of favorable and unfavorable income lease contracts, net 1 1 2 3 Subtotal - lease income from operating leases 202 156 382 333 Earned income on direct financing and sales-type leases 1 2 3 3 Total property revenues $ 203 $ 158 $ 385 $ 336 |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Lease income - operating leases Minimum lease payments $ 117 $ 109 $ 230 $ 221 Variable lease payments 84 46 150 109 Amortization of favorable and unfavorable income lease contracts, net 1 1 2 3 Subtotal - lease income from operating leases 202 156 382 333 Earned income on direct financing and sales-type leases 1 2 3 3 Total property revenues $ 203 $ 158 $ 385 $ 336 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Liabilities Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities between December 31, 2020 and June 30, 2021 (in millions): Contract Liabilities TH BK PLK Consolidated Balance at December 31, 2020 $ 62 $ 427 $ 39 $ 528 Recognized during period and included in the contract liability balance at the beginning of the year (5) (21) (1) (27) Increase, excluding amounts recognized as revenue during the period 5 15 9 29 Impact of foreign currency translation 1 (5) — (4) Balance at June 30, 2021 $ 63 $ 416 $ 47 $ 526 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2021 (in millions): Contract liabilities expected to be recognized in TH BK PLK Consolidated Remainder of 2021 $ 5 $ 18 $ 2 $ 25 2022 9 34 3 46 2023 9 33 3 45 2024 8 32 3 43 2025 6 31 3 40 Thereafter 26 268 33 327 Total $ 63 $ 416 $ 47 $ 526 Disaggregation of Total Revenues Total revenues consist of the following (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales $ 590 $ 406 $ 1,097 $ 909 Royalties 391 277 737 606 Property revenues 203 158 385 336 Franchise fees and other revenue 20 15 40 33 Advertising revenues 234 192 439 389 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 |
Earnings per Unit
Earnings per Unit | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Unit | Earnings per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unit holders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as RBI equity awards 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 259 $ 106 $ 438 $ 250 Net income allocated to Partnership exchangeable unitholders 131 57 222 137 Net income attributable to common unitholders $ 390 $ 163 $ 660 $ 387 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 202 Weighted average Partnership exchangeable units 155 164 155 165 Earnings per unit - basic and diluted: Class A common units (a) $ 1.28 $ 0.52 $ 2.17 $ 1.24 Partnership exchangeable units (a) $ 0.84 $ 0.35 $ 1.43 $ 0.83 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible assets, net and goodwill consist of the following (in millions): As of June 30, 2021 December 31, 2020 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 733 $ (278) $ 455 $ 735 $ (264) $ 471 Favorable leases 110 (64) 46 117 (66) 51 Subtotal 843 (342) 501 852 (330) 522 Indefinite-lived intangible assets: Tim Hortons brand $ 6,811 $ — $ 6,811 $ 6,650 $ — $ 6,650 Burger King brand 2,153 — 2,153 2,174 — 2,174 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Subtotal 10,319 — 10,319 10,179 — 10,179 Intangible assets, net $ 10,820 $ 10,701 Goodwill Tim Hortons segment $ 4,377 $ 4,279 Burger King segment 608 614 Popeyes segment 846 846 Total $ 5,831 $ 5,739 Amortization expense on intangible assets totaled $11 million for the three months ended June 30, 2021 and 2020. Amortization expense on intangible assets totaled $21 million and $22 million for the six months ended June 30, 2021 and 2020, respectively. The change in the brands and goodwill balances during the six months ended June 30, 2021 was due to the impact of foreign currency translation. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amount of our equity method investments was $204 million and $205 million as of June 30, 2021 and December 31, 2020, respectively, and is included as a component of Other assets, net in our accompanying condensed consolidated balance sheets. With respect to our 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 $3 million and $2 million during the three months ended June 30, 2021 and 2020, respectively. Distributions received from this joint venture were $6 million and $4 million during the six months ended June 30, 2021 and 2020, respectively. Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 15.5% equity interest in Carrols Restaurant Group, Inc. (“Carrols”) based on the quoted market price on June 30, 2021 was approximately $57 million. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on June 30, 2021 was approximately $62 million. We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues from affiliates: Royalties $ 78 $ 42 $ 143 $ 103 Advertising revenues 15 12 28 24 Property revenues 8 8 16 16 Franchise fees and other revenue 4 3 8 6 Total $ 105 $ 65 $ 195 $ 149 We recognized $4 million and $3 million of rent expense associated with the TIMWEN Partnership during the three months ended June 30, 2021 and 2020. We recognized $8 million and $7 million of rent expense associated with the TIMWEN Partnership during the six months ended June 30, 2021 and 2020, respectively. At June 30, 2021 and December 31, 2020, we had $49 million and $52 million, respectively, of accounts receivable, net from our equity method investments which were recorded in Accounts and notes receivable, net in our condensed consolidated balance sheets. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities, net | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities, net | Other Accrued Liabilities and Other Liabilities, net Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of June 30, December 31, Current: Distribution payable $ 246 $ 239 Interest payable 69 66 Accrued compensation and benefits 60 78 Taxes payable 114 122 Deferred income 43 42 Accrued advertising expenses 55 59 Restructuring and other provisions 14 12 Current portion of operating lease liabilities 139 137 Other 72 80 Other accrued liabilities $ 812 $ 835 Noncurrent: Taxes payable $ 553 $ 626 Contract liabilities 526 528 Derivatives liabilities 820 865 Unfavorable leases 73 81 Accrued pension 68 70 Deferred income 34 28 Other 36 38 Other liabilities, net $ 2,110 $ 2,236 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): As of June 30, December 31, Term Loan B (due November 19, 2026) $ 5,270 $ 5,297 Term Loan A (due October 7, 2024) 722 731 2017 4.25% Senior Notes (due May 15, 2024) 775 775 2019 3.875% Senior Notes (due January 15, 2028) 750 750 2020 5.75% Senior Notes (due April 15, 2025) 500 500 2020 3.50% Senior Notes (due February 15, 2029) 750 750 2019 4.375% Senior Notes (due January 15, 2028) 750 750 2020 4.00% Senior Notes (due October 15, 2030) 2,900 2,900 TH Facility and other 181 178 Less: unamortized deferred financing costs and deferred issue discount (142) (155) Total debt, net 12,456 12,476 Less: current maturities of debt (81) (79) Total long-term debt $ 12,375 $ 12,397 Revolving Credit Facility As of June 30, 2021, we had no amounts outstanding under our senior secured revolving credit facility (the “Revolving Credit Facility”), had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $998 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or RBI share repurchases or repurchases of Class B exchangeable limited partnership units, fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 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. TH Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of June 30, 2021, we had outstanding C$219 million under the TH Facility with a weighted average interest rate of 1.84%. First Lien Senior Notes On July 6, 2021, two of our subsidiaries (the “Borrowers”) issued $800 million of 3.875% first lien senior secured notes due January 15, 2028 (the “Notes”). No principal payments are due until maturity and interest is paid semi-annually. The Notes were issued as additional notes under the indenture, dated as of September 24, 2019, (the “2019 3.875% Senior Notes Indenture”) pursuant to which the Borrowers previously issued $750 million in aggregate principal amount of 3.875% first lien senior secured notes due January 15, 2028 during 2019 (the “2019 3.875% Senior Notes” and together with the Notes, the “3.875% First Lien Senior Notes” ). The Notes are treated as a single series with the 2019 3.875% Senior Notes and have the same terms for all purposes under the 2019 3.875% Senior Notes Indenture, including waivers, amendments, redemptions and offers to purchase. The Notes were priced at 100.250% of their face value. The net proceeds from the offering of the Notes were used to redeem the remaining $775 million principal amount outstanding of the 2017 4.25% Senior Notes on July 15, 2021, plus any accrued and unpaid interest thereon, and pay related redemption premiums, fees and expenses. Obligations under the 3.875% First Lien Senior Notes are guaranteed on a senior secured basis, jointly and severally, by the Borrowers and substantially all of the Borrower's Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Corporation, Popeyes Louisiana Kitchen, Inc. and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The 3.875% First Lien Senior Notes are first lien senior secured obligations and rank equal in right of payment with all of the existing and future first lien senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees under our senior secured term loan facilities and Revolving Credit Facility (together the “Credit Facilities”). The 3.875% First Lien Senior notes may be redeemed in whole or in part, on or after September 15, 2022, at the redemption prices set forth in the 2019 3.875% Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 2019 3.875% Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. Restrictions and Covenants As of June 30, 2021, we were in compliance with all applicable financial debt covenants under our senior secured term loan facilities and Revolving Credit Facility (together the "Credit Facilities"), the TH Facility, and the indentures governing our Senior Notes. Fair Value Measurement The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of June 30, December 31, Fair value of our variable term debt and senior notes $ 12,303 $ 12,477 Principal carrying amount of our variable term debt and senior notes 12,417 12,453 Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended June 30, Six Months Ended 2021 2020 2021 2020 Debt (a) $ 115 $ 119 $ 228 $ 232 Finance lease obligations 5 5 10 10 Amortization of deferred financing costs and debt issuance discount 6 6 13 12 Interest income — (2) (1) (7) Interest expense, net $ 126 $ 128 $ 250 $ 247 (a) Amount includes $11 million and $20 million benefit during the three months ended June 30, 2021 and 2020, respectively, and $23 million and $41 million benefit during the six months ended June 30, 2021 and 2020, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 13, Derivatives . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective tax rate was (8.1)% and 2.6% for the three and six months ended June 30, 2021, respectively. The effective tax rate was primarily the result of net reserve releases of $89 million and $87 million during the three and six months ended June 30, 2021, respectively, related to expiring statutes of limitation for certain prior tax years which reduced our effective tax rate by approximately 24.7% and 12.8% for the three and six months ended June 30, 2021, respectively. The effective tax rate during these periods also reflects the mix of income from multiple tax jurisdictions and the impact of internal financing arrangements. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity During the six months ended June 30, 2021, Partnership exchanged 160,438 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 were accounted for as capital contributions by RBI to Partnership. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partners’ 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 partners’ capital of our consolidated balance sheet in an amount equal to the cash paid by Partnership, if any, 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 is automatically deemed 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 Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — 195 195 Net change in fair value of derivatives, net of tax 13 — — 13 Amounts reclassified to earnings of cash flow hedges, net of tax 53 — — 53 Gain (loss) recognized on other, net of tax — 2 — 2 Balance at June 30, 2021 $ (41) $ (43) $ (928) $ (1,012) |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 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 At June 30, 2021, we had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $3,500 million to hedge the variability in the interest payments on a portion of our senior secured term loan facilities (the “Term Loan Facilities”) beginning October 31, 2019 through the termination date of November 19, 2026. Additionally, at June 30, 2021, we also had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities effective September 30, 2019 through the termination date of September 30, 2026. At inception, all of these interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. During 2019, we extended the term of our previous $3,500 million receive-variable, pay-fixed interest rate swaps to align the maturity date of the new interest rate swaps with the new maturity date of our Term Loan B. The extension of the term resulted in a de-designation and re-designation of the interest rate swaps and the swaps continue to be accounted for as a cash flow hedge for hedge accounting. In connection with the de-designation, we recognized a net unrealized loss of $213 million in AOCI and this amount gets reclassified into Interest expense, net as the original forecasted transaction affects earnings. The amount of pre-tax losses in AOCI as of June 30, 2021 that we expect to be reclassified into interest expense within the next 12 months is $50 million. During 2015, we settled certain interest rate swaps and recognized a net unrealized loss of $85 million in AOCI at the date of settlement. This amount gets reclassified into Interest expense, net as the original hedged forecasted transaction affects earnings. The amount of pre-tax losses in AOCI as of June 30, 2021 that we expect to be reclassified into interest expense within the next 12 months is $5 million. 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 June 30, 2021, 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 partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At June 30, 2021, we had outstanding fixed-to-fixed cross-currency rate swaps to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as net investment hedges. These swaps are contracts to exchange quarterly fixed-rate interest payments we make on the Canadian dollar notional amount of C$6,754 million for quarterly fixed-rate interest payments we receive on the U.S. dollar notional amount of $5,000 million through the maturity date of June 30, 2023. At June 30, 2021, we had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest payments on the Euro notional value of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $1,200 million. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. During 2018, we extended the term of the swaps from March 31, 2021 to the maturity date of February 17, 2024. The extension of the term resulted in a re-designation of the hedge and the swaps continue to be accounted for as a net investment hedge. Additionally, at June 30, 2021, we also had outstanding cross-currency rate swaps in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $400 million, entered during 2018, and $500 million, entered during 2019, through the maturity date of February 17, 2024. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. The fixed-to-fixed cross-currency rate swaps hedging Canadian dollar and Euro net investments utilized the forward method of effectiveness assessment prior to March 15, 2018. On March 15, 2018, we de-designated and subsequently re-designated the outstanding fixed to fixed cross-currency rate swaps to prospectively use the spot method of hedge effectiveness assessment. Additionally, as a result of adopting new hedge accounting guidance during 2018, we elected to exclude the interest component (the “Excluded Component”) from the accounting hedge without affecting net investment hedge accounting and elected to amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component is recognized in Interest expense, net in the condensed consolidated statement of operations. The change in fair value that is not related to the Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. 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 June 30, 2021, 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 $143 million with maturities to August 2022. We have designated these instruments as cash flow hedges, and as such, the unrealized changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects 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 or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as cash flow hedges (1) Interest rate swaps $ (44) $ (48) $ 85 $ (348) Forward-currency contracts $ (1) $ (2) $ (2) $ 5 Derivatives designated as net investment hedges Cross-currency rate swaps $ (92) $ (228) $ (83) $ 289 (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (31) $ (26) $ (61) $ (41) Forward-currency contracts Cost of sales $ (2) $ 2 $ (4) $ 2 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 20 $ 23 $ 41 Fair Value as of June 30, December 31, 2020 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 1 $ — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 8 — Other assets, net Total assets at fair value $ 9 $ — Liabilities: Derivatives designated as cash flow hedges Interest rate $ 300 $ 430 Other liabilities, net Foreign currency 4 5 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 520 434 Other liabilities, net Total liabilities at fair value $ 824 $ 869 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Other Operating Expenses (Income), net Other operating expenses (income), net consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 1 $ — $ (1) $ (2) Litigation settlements (gains) and reserves, net 1 1 3 1 Net losses (gains) on foreign exchange 8 18 (35) 10 Other, net (2) 2 (1) (4) Other operating expenses (income), net $ 8 $ 21 $ (34) $ 5 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. Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property. On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King Corporation (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of all others similarly situated. On October 18, 2018, a second class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On November 2, 2018, a fourth class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Sandra Muster, individually and on behalf of all others similarly situated. These complaints have been consolidated and allege that the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages for himself or herself and other members of the class. On March 24, 2020, the Court granted BKC’s motion to dismiss for failure to state a claim and on April 20, 2020 the plaintiffs filed a motion for leave to amend their complaint. On April 27, 2020, BKC filed a motion opposing the motion for leave to amend. The court denied the plaintiffs motion for leave to amend their complaint in August 2020 and the plaintiffs are appealing this ruling. Oral arguments are scheduled for September 2021. While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. In July 2019, a class action complaint was filed against The TDL Group Corp. (“TDL”) in the Supreme Court of British Columbia by Samir Latifi, individually and on behalf of all others similarly situated. The complaint alleges that TDL violated the Canadian Competition Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Tim Hortons franchisees are required to sign. The plaintiff seeks damages and restitution, on behalf of himself and other members of the class. In February 2021, TDL filed and served an application to strike which was heard in May 2021. While we currently believe this claim is without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. On June 30, 2020, a class action complaint was filed against Restaurant Brands International Inc., Restaurant Brands International Limited Partnership and The TDL Group Corp. in the Quebec Superior Court by Steve Holcman, individually and on behalf of all Quebec residents who downloaded the Tim Hortons mobile application. On July 2, 2020, a Notice of Action related to a second class action complaint was filed against Restaurant Brands International Inc., in the Ontario Superior Court by Ashley Sitko and Ashley Cadeau, individually and on behalf of all Canadian residents who downloaded the Tim Hortons mobile application. On August 31, 2020, a notice of claim was filed against Restaurant Brands International Inc. in the Supreme Court of British Columbia by Wai Lam Jacky Law on behalf of all persons in Canada who downloaded the Tim Hortons mobile application or the Burger King mobile application. On September 30, 2020, a notice of action was filed against Restaurant Brands International Inc., Restaurant Brands International Limited Partnership, The TDL Group Corp., Burger King Worldwide, Inc. and Popeyes Louisiana Kitchen, Inc. in the Ontario Superior Court of Justice by William Jung on behalf of a to be determined class. All of the complaints allege that the defendants violated the plaintiff’s privacy rights, the Personal Information Protection and Electronic Documents Act, consumer protection and competition laws or app-based undertakings to users, in each case in connection with the collection of geolocation data through the Tim Hortons mobile application, and in certain cases, the Burger King and Popeyes mobile applications. Each plaintiff seeks injunctive relief and monetary damages for himself or herself and other members of the class. These cases are in preliminary stages and we intend to vigorously defend against these lawsuits, but we are unable to predict the ultimate outcome of any of these cases or estimate the range of possible loss, if any. On October 26, 2020, City of Warwick Municipal Employees Pension Fund, a purported stockholder of Restaurant Brands International Inc., individually and putatively on behalf of all other stockholders similarly situated, filed a lawsuit in the Supreme Court of the State of New York County of New York naming RBI and certain of its officers, directors and shareholders as defendants alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, in connection with certain offerings of securities by an affiliate in August and September 2019. The complaint alleges that the shelf registration statement used in connection with such offering contained certain false and/or misleading statements or omissions. The complaint seeks, among other relief, class certification of the lawsuit, unspecified compensatory damages, rescission, pre-judgement and post-judgement interest, costs and expenses. On December 18, 2020 the plaintiffs filed an amended complaint and on February 16, 2021 RBI filed a motion to dismiss the complaint. The plaintiffs filed a brief in opposition to the motion on April 19, 2021 and RBI filed a reply in May 2021. The motion to dismiss is scheduled to be heard in December 2021. We intend to vigorously defend. While we believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. On February 5, 2021, Paul J. Graney, a purported shareholder of Restaurant Brands International, individually and putatively on behalf of all other stockholders similarly situated, filed a lawsuit in the U.S. District Court for the Southern District of Florida naming RBI and certain of our current or former officers as defendants. This lawsuit alleged violations of Sections 10 and 20(a) of the Securities Exchange Act of 1934, as amended, in connection with certain statements made beginning in April 2019. On April 26, 2021, the lead plaintiff filed a stipulation voluntarily dismissing the case, which the Court so ordered on April 27, 2021. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As stated in Note 1, Description of Business and Organization , we manage three brands. Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, we operate in the chicken category of the quick service segment of the restaurant industry. Our business generates revenue from the following sources: (i) franchise and advertising revenues, consisting primarily of royalties and advertising fund contributions based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (ii) property revenues from properties we lease or sublease to franchisees; and (iii) sales at restaurants owned by us (“Company restaurants”). In addition, our TH business generates revenue from sales to franchisees related to our supply chain operations, including manufacturing, procurement, warehousing and distribution, as well as sales to retailers. We manage each of our brands as an operating segment and each operating segment represents a reportable segment. The following tables present revenues, by segment and by country (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues by operating segment: TH $ 831 $ 567 $ 1,541 $ 1,266 BK 459 347 866 735 PLK 148 134 291 272 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues by country (a): Canada $ 754 $ 514 $ 1,392 $ 1,146 United States 515 443 993 893 Other 169 91 313 234 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 (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 expense, net, loss on early extinguishment of debt, income tax expense, and depreciation and amortization, adjusted to exclude (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) income/expenses from non-recurring projects and non-operating activities. For the periods referenced, this included costs incurred from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements, including services related to significant tax reform legislation, regulations and related restructuring initiatives (“Corporate restructuring and tax advisory fees”). Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating business. A reconciliation of segment income to net income consists of the following (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Segment income: TH $ 253 $ 147 $ 460 $ 336 BK 266 160 483 360 PLK 58 51 114 106 Adjusted EBITDA 577 358 1,057 802 Share-based compensation and non-cash incentive compensation expense 20 23 46 44 Corporate restructuring and tax advisory fees 3 7 4 8 Impact of equity method investments (a) 7 18 11 22 Other operating expenses (income), net 8 21 (34) 5 EBITDA 539 289 1,030 723 Depreciation and amortization 51 46 100 91 Income from operations 488 243 930 632 Interest expense, net 126 128 250 247 Income tax (benefit) expense (29) (49) 18 (3) Net income $ 391 $ 164 $ 662 $ 388 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information On February 17, 2017, 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into an amended credit agreement, as amended from time to time, that provides for obligations under the Credit Facilities. On November 9, 2020, the Issuers entered into the 2020 3.50% Senior Notes Indenture with respect to the 2020 3.50% Senior Notes. On October 5, 2020, the Issuers entered into the 2020 4.00% Senior Notes Indenture with respect to the 2020 4.00% Senior Notes. On April 7, 2020, the Issuers entered into the 2020 5.75% Senior Notes Indenture with respect to the 2020 5.75% Senior Notes. On November 19, 2019, the Issuers entered into the 2019 4.375% Senior Notes Indenture with respect to the 2019 4.375% Senior Notes. On September 24, 2019, the Issuers entered into the 2019 3.875% Senior Notes Indenture with respect to the 2019 3.875% Senior Notes. On May 17, 2017, the Issuers entered into the 2017 4.25% Senior Notes Indenture with respect to the 2017 4.250% Senior Notes. The agreement governing our Credit Facilities, the 2020 3.50% Senior Notes Indenture, the 2020 4.00% Senior Notes Indenture, the 2020 5.75% Senior Notes Indenture, the 2019 4.375% Senior Notes Indenture, the 2019 3.875% Senior Notes Indenture, and the 2017 4.25% 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 June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,749 $ — $ — $ 1,749 Accounts and notes receivable, net 535 — — 535 Inventories, net 99 — — 99 Prepaids and other current assets 132 — — 132 Total current assets 2,515 — — 2,515 Property and equipment, net 2,033 — — 2,033 Operating lease assets, net 1,143 — — 1,143 Intangible assets, net 10,820 — — 10,820 Goodwill 5,831 — — 5,831 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 246 (246) — Investment in subsidiaries — 4,259 (4,259) — Other assets, net 819 — — 819 Total assets $ 23,241 $ 4,505 $ (4,505) $ 23,241 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 575 $ — $ — $ 575 Other accrued liabilities 566 246 — 812 Gift card liability 149 — — 149 Current portion of long-term debt and finance leases 113 — — 113 Total current liabilities 1,403 246 — 1,649 Long-term debt, net of current portion 12,375 — — 12,375 Finance leases, net of current portion 326 — — 326 Operating lease liabilities, net of current portion 1,078 — — 1,078 Other liabilities, net 2,110 — — 2,110 Payables to affiliates 246 — (246) — Deferred income taxes, net 1,444 — — 1,444 Total liabilities 18,982 246 (246) 18,982 Partners’ capital: Class A common units — 8,222 — 8,222 Partnership exchangeable units — (2,955) — (2,955) Common shares 3,132 — (3,132) — Retained Earnings 2,135 — (2,135) — Accumulated other comprehensive income (loss) (1,012) (1,012) 1,012 (1,012) Total Partners' capital/shareholders' equity 4,255 4,255 (4,255) 4,255 Noncontrolling interests 4 4 (4) 4 Total equity 4,259 4,259 (4,259) 4,259 Total liabilities and equity $ 23,241 $ 4,505 $ (4,505) $ 23,241 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2020 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,560 $ — $ — $ 1,560 Accounts and notes receivable, net 536 — — 536 Inventories, net 96 — — 96 Prepaids and other current assets 72 — — 72 Total current assets 2,264 — — 2,264 Property and equipment, net 2,031 — — 2,031 Operating lease assets. net 1,152 — — 1,152 Intangible assets, net 10,701 — — 10,701 Goodwill 5,739 — — 5,739 Net investment in property leased to franchisees 66 — — 66 Intercompany receivable — 239 (239) — Investment in subsidiaries — 3,721 (3,721) — Other assets, net 824 — — 824 Total assets $ 22,777 $ 3,960 $ (3,960) $ 22,777 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 464 $ — $ — $ 464 Other accrued liabilities 596 239 — 835 Gift card liability 191 — — 191 Current portion of long-term debt and finance leases 111 — — 111 Total current liabilities 1,362 239 — 1,601 Long-term debt, net of current portion 12,397 — — 12,397 Finance leases, net of current portion 315 — — 315 Operating lease liabilities, net of current portion 1,082 — — 1,082 Other liabilities, net 2,236 — — 2,236 Payables to affiliates 239 — (239) — Deferred income taxes, net 1,425 — — 1,425 Total liabilities 19,056 239 (239) 19,056 Partners’ capital: Class A common units — 7,994 — 7,994 Partnership exchangeable units — (3,002) — (3,002) Common shares 3,026 — (3,026) — Retained Earnings 1,966 — (1,966) — Accumulated other comprehensive income (loss) (1,275) (1,275) 1,275 (1,275) Total Partners' capital/shareholders' equity 3,717 3,717 (3,717) 3,717 Noncontrolling interests 4 4 (4) 4 Total equity 3,721 3,721 (3,721) 3,721 Total liabilities and equity $ 22,777 $ 3,960 $ (3,960) $ 22,777 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 590 $ — $ — $ 590 Franchise and property revenues 614 — — 614 Advertising revenues 234 — — 234 Total revenues 1,438 — — 1,438 Operating costs and expenses: Cost of sales 467 — — 467 Franchise and property expenses 121 — — 121 Advertising expenses 238 — — 238 General and administrative expenses 113 — — 113 (Income) loss from equity method investments 3 — — 3 Other operating expenses (income), net 8 — — 8 Total operating costs and expenses 950 — — 950 Income from operations 488 — — 488 Interest expense, net 126 — — 126 Income before income taxes 362 — — 362 Income tax (benefit) expense (29) — — (29) Net income 391 — — 391 Equity in earnings of consolidated subsidiaries — 391 (391) — Net income (loss) 391 391 (391) 391 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 390 $ 390 $ (390) $ 390 Comprehensive income (loss) $ 451 $ 451 $ (451) $ 451 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,097 $ — $ — $ 1,097 Franchise and property revenues 1,162 — — 1,162 Advertising revenues 439 — — 439 Total revenues 2,698 — — 2,698 Operating costs and expenses: Cost of sales 868 — — 868 Franchise and property expenses 237 — — 237 Advertising expenses 474 — — 474 General and administrative expenses 218 — — 218 (Income) loss from equity method investments 5 — — 5 Other operating expenses (income), net (34) — — (34) Total operating costs and expenses 1,768 — — 1,768 Income from operations 930 — — 930 Interest expense, net 250 — — 250 Income before income taxes 680 — — 680 Income tax (benefit) expense 18 — — 18 Net income 662 — — 662 Equity in earnings of consolidated subsidiaries — 662 (662) — Net income (loss) 662 662 (662) 662 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 660 $ 660 $ (660) $ 660 Comprehensive income (loss) $ 925 $ 925 $ (925) $ 925 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 406 $ — $ — $ 406 Franchise and property revenues 450 — — 450 Advertising revenues 192 — — 192 Total revenues 1,048 — — 1,048 Operating costs and expenses: Cost of sales 339 — — 339 Franchise and property expenses 132 — — 132 Advertising expenses 203 — — 203 General and administrative expenses 94 — — 94 (Income) loss from equity method investments 16 — — 16 Other operating expenses (income), net 21 — — 21 Total operating costs and expenses 805 — — 805 Income from operations 243 — — 243 Interest expense, net 128 — — 128 Income before income taxes 115 — — 115 Income tax (benefit) expense (49) — — (49) Net income 164 — — 164 Equity in earnings of consolidated subsidiaries — 164 (164) — Net income (loss) 164 164 (164) 164 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 163 $ 163 $ (163) $ 163 Comprehensive income (loss) $ 313 $ 313 $ (313) $ 313 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 909 $ — $ — $ 909 Franchise and property revenues 975 — — 975 Franchise contributions for advertising 389 389 Total revenues 2,273 — — 2,273 Operating costs and expenses: Cost of sales 738 — — 738 Franchise and property expenses 255 — — 255 Franchise advertising and related expenses 429 — — 429 Selling, general and administrative expenses 196 — — 196 (Income) loss from equity method investments 18 — — 18 Other operating expenses (income), net 5 — — 5 Total operating costs and expenses 1,641 — — 1,641 Income from operations 632 — — 632 Interest expense, net 247 — — 247 Income before income taxes 385 — — 385 Income tax (benefit) expense (3) — — (3) Net income 388 — — 388 Equity in earnings of consolidated subsidiaries — 388 (388) — Net income (loss) 388 388 (388) 388 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 387 $ 387 $ (387) $ 387 Comprehensive income (loss) $ (6) $ (6) $ 6 $ (6) RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six months ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 662 $ 662 $ (662) $ 662 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in loss (earnings) of consolidated subsidiaries — (662) 662 — Depreciation and amortization 100 — — 100 Amortization of deferred financing costs and debt issuance discount 13 — — 13 (Income) loss from equity method investments 5 — — 5 (Gain) loss on remeasurement of foreign denominated transactions (35) — — (35) Net (gains) losses on derivatives 42 — — 42 Share-based compensation expense 40 — — 40 Deferred income taxes 24 — — 24 Other (12) — — (12) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 17 — — 17 Inventories and prepaids and other current assets (5) — — (5) Accounts and drafts payable 103 — — 103 Other accrued liabilities and gift card liability (123) — — (123) Tenant inducements paid to franchisees (1) — — (1) Other long-term assets and liabilities (98) — — (98) Net cash provided by (used for) operating activities 732 — — 732 Cash flows from investing activities: Payments for property and equipment (46) — — (46) Net proceeds from disposal of assets, restaurant closures, and refranchisings 14 — — 14 Settlement/sale of derivatives, net 1 — — 1 Other investing activities, net (5) — — (5) Net cash provided by (used for) investing activities (36) — — (36) Cash flows from financing activities: Repayments of long-term debt and finance leases (54) — — (54) Distributions on Class A common and Partnership exchangeable units — (484) — (484) Capital contribution from RBI 56 — — 56 Distributions from subsidiaries (484) 484 — — (Payments) proceeds from derivatives (32) — — (32) Other financing activities, net (2) — — (2) Net cash provided by (used for) financing activities (516) — — (516) Effect of exchange rates on cash and cash equivalents 9 — — 9 Increase (decrease) in cash and cash equivalents 189 — — 189 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,749 $ — $ — $ 1,749 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 388 $ 388 $ (388) $ 388 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in loss (earnings) of consolidated subsidiaries — (388) 388 — Depreciation and amortization 91 — — 91 Amortization of deferred financing costs and debt issuance discount 12 — — 12 (Income) loss from equity method investments 18 — — 18 (Gain) loss on remeasurement of foreign denominated transactions 10 — — 10 Net (gains) losses on derivatives (1) — — (1) Share-based compensation expense 39 — — 39 Deferred income taxes (131) — — (131) Other 20 — — 20 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (36) — — (36) Inventories and prepaids and other current assets (28) — — (28) Accounts and drafts payable (158) — — (158) Other accrued liabilities and gift card liability (13) — — (13) Tenant inducements paid to franchisees (5) — — (5) Other long-term assets and liabilities (10) — — (10) Net cash provided by (used for) operating activities 196 — — 196 Cash flows from investing activities: Payments for property and equipment (39) — — (39) Net proceeds from disposal of assets, restaurant closures, and refranchisings 5 — — 5 Settlement/sale of derivatives, net 22 — — 22 Net cash provided by (used for) investing activities (12) — — (12) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1,585 — — 1,585 Repayments of revolving line of credit, long-term debt and finance leases (1,045) — — (1,045) Payment of financing costs (10) — — (10) Distributions on Class A common and Partnership exchangeable units — (716) — (716) Capital contribution from RBI 41 — — 41 Distributions from subsidiaries (716) 716 — — (Payments) proceeds from derivatives (14) — — (14) Other financing activities, net (2) — — (2) Net cash provided by (used for) financing activities (161) — — (161) Effect of exchange rates on cash and cash equivalents (16) — — (16) Increase (decrease) in cash and cash equivalents 7 — — 7 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,540 $ — $ — $ 1,540 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Distributions/Dividends and RBI Share Repurchase Authorization On July 7, 2021, RBI paid a cash dividend of $0.53 per RBI common share to common shareholders of record on June 23, 2021. 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 $0.53 per exchangeable unit to holders of record on June 23, 2021. Subsequent to June 30, 2021, the RBI board of directors declared a cash dividend of $0.53 per RBI common share, which will be paid on October 5, 2021 to RBI common shareholders of record on September 21, 2021. 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 $0.53 per Partnership exchangeable unit, and the record date and payment date for such distribution will be the same as the record date and payment date for the cash dividend per RBI common share set forth above. On July 28, 2021, the RBI board of directors approved a share repurchase authorization that allows RBI to purchase up to $1,000 million of RBI common shares until August 10, 2023. Issuance of Senior Notes and Redemption of Senior Notes As discussed in Note 10, Long-Term Debt , on July 6, 2021, the Borrowers issued the Notes. The net proceeds from the offering of the Notes were used to redeem the remaining $775 million principal amount outstanding of the 4.25% First Lien Senior Notes on July 15, 2021, plus any accrued and unpaid interest thereon, and pay related redemption premiums, fees and expenses. During the three months ended September 30, 2021, we will record a loss on early extinguishment of debt that will include the redemption premiums paid as well as the write-off of unamortized debt issuance costs in connection with the redemption of the notes discussed above. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | 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 filed with the SEC and Canadian securities regulatory authorities on February 23, 2021. |
Consolidation, Variable Interest Entity | We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable. As our 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. |
Use of Estimates | 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. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. |
New Accounting Pronouncements | New Accounting Pronouncements Simplifying the Accounting for Income Taxes – In December 2019, the FASB issued guidance which simplifies the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance applicable to accounting for income taxes . The amendment is effective commencing in 2021 with early adoption permitted. The adoption of this new guidance in 2021 did not have a material impact on our Financial Statements. Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021, the FASB issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. We are currently evaluating the impact that the adoption of this new guidance will have on our Financial Statements and have not adopted any of the transition relief available under the new guidance as of June 30, 2021. Lessors—Certain Leases with Variable Lease Payments – In July 2021, the FASB issued guidance that requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if (a) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with lease classification criteria and (b) the lessor would have otherwise recognized a day-one loss. This amendment is effective in 2022 with early adoption permitted. This guidance may be applied either retrospectively to leases that commenced or were modified on or after the adoption of lease guidance we adopted in 2019 or prospectively to leases that commence or are modified on or after the date that this new guidance is applied. We are currently evaluating the impact that the adoption of this new guidance will have on our Financial Statements. |
Contract Liabilities | Contract LiabilitiesContract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Property Revenues | Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Lease income - operating leases Minimum lease payments $ 117 $ 109 $ 230 $ 221 Variable lease payments 84 46 150 109 Amortization of favorable and unfavorable income lease contracts, net 1 1 2 3 Subtotal - lease income from operating leases 202 156 382 333 Earned income on direct financing and sales-type leases 1 2 3 3 Total property revenues $ 203 $ 158 $ 385 $ 336 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Change in Contract Liabilities | The following table reflects the change in contract liabilities between December 31, 2020 and June 30, 2021 (in millions): Contract Liabilities TH BK PLK Consolidated Balance at December 31, 2020 $ 62 $ 427 $ 39 $ 528 Recognized during period and included in the contract liability balance at the beginning of the year (5) (21) (1) (27) Increase, excluding amounts recognized as revenue during the period 5 15 9 29 Impact of foreign currency translation 1 (5) — (4) Balance at June 30, 2021 $ 63 $ 416 $ 47 $ 526 |
Schedule of Estimated Revenues Expected to be Recognized | The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2021 (in millions): Contract liabilities expected to be recognized in TH BK PLK Consolidated Remainder of 2021 $ 5 $ 18 $ 2 $ 25 2022 9 34 3 46 2023 9 33 3 45 2024 8 32 3 43 2025 6 31 3 40 Thereafter 26 268 33 327 Total $ 63 $ 416 $ 47 $ 526 |
Disaggregation of Total Revenues | Total revenues consist of the following (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales $ 590 $ 406 $ 1,097 $ 909 Royalties 391 277 737 606 Property revenues 203 158 385 336 Franchise fees and other revenue 20 15 40 33 Advertising revenues 234 192 439 389 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 |
Earnings per Unit (Tables)
Earnings per Unit (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 259 $ 106 $ 438 $ 250 Net income allocated to Partnership exchangeable unitholders 131 57 222 137 Net income attributable to common unitholders $ 390 $ 163 $ 660 $ 387 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 202 Weighted average Partnership exchangeable units 155 164 155 165 Earnings per unit - basic and diluted: Class A common units (a) $ 1.28 $ 0.52 $ 2.17 $ 1.24 Partnership exchangeable units (a) $ 0.84 $ 0.35 $ 1.43 $ 0.83 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 December 31, 2020 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 733 $ (278) $ 455 $ 735 $ (264) $ 471 Favorable leases 110 (64) 46 117 (66) 51 Subtotal 843 (342) 501 852 (330) 522 Indefinite-lived intangible assets: Tim Hortons brand $ 6,811 $ — $ 6,811 $ 6,650 $ — $ 6,650 Burger King brand 2,153 — 2,153 2,174 — 2,174 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Subtotal 10,319 — 10,319 10,179 — 10,179 Intangible assets, net $ 10,820 $ 10,701 Goodwill Tim Hortons segment $ 4,377 $ 4,279 Burger King segment 608 614 Popeyes segment 846 846 Total $ 5,831 $ 5,739 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Franchise and Property Revenues | We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues from affiliates: Royalties $ 78 $ 42 $ 143 $ 103 Advertising revenues 15 12 28 24 Property revenues 8 8 16 16 Franchise fees and other revenue 4 3 8 6 Total $ 105 $ 65 $ 195 $ 149 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, December 31, Current: Distribution payable $ 246 $ 239 Interest payable 69 66 Accrued compensation and benefits 60 78 Taxes payable 114 122 Deferred income 43 42 Accrued advertising expenses 55 59 Restructuring and other provisions 14 12 Current portion of operating lease liabilities 139 137 Other 72 80 Other accrued liabilities $ 812 $ 835 Noncurrent: Taxes payable $ 553 $ 626 Contract liabilities 526 528 Derivatives liabilities 820 865 Unfavorable leases 73 81 Accrued pension 68 70 Deferred income 34 28 Other 36 38 Other liabilities, net $ 2,110 $ 2,236 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): As of June 30, December 31, Term Loan B (due November 19, 2026) $ 5,270 $ 5,297 Term Loan A (due October 7, 2024) 722 731 2017 4.25% Senior Notes (due May 15, 2024) 775 775 2019 3.875% Senior Notes (due January 15, 2028) 750 750 2020 5.75% Senior Notes (due April 15, 2025) 500 500 2020 3.50% Senior Notes (due February 15, 2029) 750 750 2019 4.375% Senior Notes (due January 15, 2028) 750 750 2020 4.00% Senior Notes (due October 15, 2030) 2,900 2,900 TH Facility and other 181 178 Less: unamortized deferred financing costs and deferred issue discount (142) (155) Total debt, net 12,456 12,476 Less: current maturities of debt (81) (79) Total long-term debt $ 12,375 $ 12,397 |
Summary of Fair Value Measurement | The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of June 30, December 31, Fair value of our variable term debt and senior notes $ 12,303 $ 12,477 Principal carrying amount of our variable term debt and senior notes 12,417 12,453 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended June 30, Six Months Ended 2021 2020 2021 2020 Debt (a) $ 115 $ 119 $ 228 $ 232 Finance lease obligations 5 5 10 10 Amortization of deferred financing costs and debt issuance discount 6 6 13 12 Interest income — (2) (1) (7) Interest expense, net $ 126 $ 128 $ 250 $ 247 (a) Amount includes $11 million and $20 million benefit during the three months ended June 30, 2021 and 2020, respectively, and $23 million and $41 million benefit during the six months ended June 30, 2021 and 2020, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 13, Derivatives . |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — 195 195 Net change in fair value of derivatives, net of tax 13 — — 13 Amounts reclassified to earnings of cash flow hedges, net of tax 53 — — 53 Gain (loss) recognized on other, net of tax — 2 — 2 Balance at June 30, 2021 $ (41) $ (43) $ (928) $ (1,012) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as cash flow hedges (1) Interest rate swaps $ (44) $ (48) $ 85 $ (348) Forward-currency contracts $ (1) $ (2) $ (2) $ 5 Derivatives designated as net investment hedges Cross-currency rate swaps $ (92) $ (228) $ (83) $ 289 (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (31) $ (26) $ (61) $ (41) Forward-currency contracts Cost of sales $ (2) $ 2 $ (4) $ 2 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 20 $ 23 $ 41 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of June 30, December 31, 2020 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 1 $ — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 8 — Other assets, net Total assets at fair value $ 9 $ — Liabilities: Derivatives designated as cash flow hedges Interest rate $ 300 $ 430 Other liabilities, net Foreign currency 4 5 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 520 434 Other liabilities, net Total liabilities at fair value $ 824 $ 869 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), Net | Other operating expenses (income), net consist of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 1 $ — $ (1) $ (2) Litigation settlements (gains) and reserves, net 1 1 3 1 Net losses (gains) on foreign exchange 8 18 (35) 10 Other, net (2) 2 (1) (4) Other operating expenses (income), net $ 8 $ 21 $ (34) $ 5 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Segment | The following tables present revenues, by segment and by country (in millions): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues by operating segment: TH $ 831 $ 567 $ 1,541 $ 1,266 BK 459 347 866 735 PLK 148 134 291 272 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenues by country (a): Canada $ 754 $ 514 $ 1,392 $ 1,146 United States 515 443 993 893 Other 169 91 313 234 Total revenues $ 1,438 $ 1,048 $ 2,698 $ 2,273 (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) | Three Months Ended Six Months Ended 2021 2020 2021 2020 Segment income: TH $ 253 $ 147 $ 460 $ 336 BK 266 160 483 360 PLK 58 51 114 106 Adjusted EBITDA 577 358 1,057 802 Share-based compensation and non-cash incentive compensation expense 20 23 46 44 Corporate restructuring and tax advisory fees 3 7 4 8 Impact of equity method investments (a) 7 18 11 22 Other operating expenses (income), net 8 21 (34) 5 EBITDA 539 289 1,030 723 Depreciation and amortization 51 46 100 91 Income from operations 488 243 930 632 Interest expense, net 126 128 250 247 Income tax (benefit) expense (29) (49) 18 (3) Net income $ 391 $ 164 $ 662 $ 388 (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 Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | 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 June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,749 $ — $ — $ 1,749 Accounts and notes receivable, net 535 — — 535 Inventories, net 99 — — 99 Prepaids and other current assets 132 — — 132 Total current assets 2,515 — — 2,515 Property and equipment, net 2,033 — — 2,033 Operating lease assets, net 1,143 — — 1,143 Intangible assets, net 10,820 — — 10,820 Goodwill 5,831 — — 5,831 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 246 (246) — Investment in subsidiaries — 4,259 (4,259) — Other assets, net 819 — — 819 Total assets $ 23,241 $ 4,505 $ (4,505) $ 23,241 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 575 $ — $ — $ 575 Other accrued liabilities 566 246 — 812 Gift card liability 149 — — 149 Current portion of long-term debt and finance leases 113 — — 113 Total current liabilities 1,403 246 — 1,649 Long-term debt, net of current portion 12,375 — — 12,375 Finance leases, net of current portion 326 — — 326 Operating lease liabilities, net of current portion 1,078 — — 1,078 Other liabilities, net 2,110 — — 2,110 Payables to affiliates 246 — (246) — Deferred income taxes, net 1,444 — — 1,444 Total liabilities 18,982 246 (246) 18,982 Partners’ capital: Class A common units — 8,222 — 8,222 Partnership exchangeable units — (2,955) — (2,955) Common shares 3,132 — (3,132) — Retained Earnings 2,135 — (2,135) — Accumulated other comprehensive income (loss) (1,012) (1,012) 1,012 (1,012) Total Partners' capital/shareholders' equity 4,255 4,255 (4,255) 4,255 Noncontrolling interests 4 4 (4) 4 Total equity 4,259 4,259 (4,259) 4,259 Total liabilities and equity $ 23,241 $ 4,505 $ (4,505) $ 23,241 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2020 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,560 $ — $ — $ 1,560 Accounts and notes receivable, net 536 — — 536 Inventories, net 96 — — 96 Prepaids and other current assets 72 — — 72 Total current assets 2,264 — — 2,264 Property and equipment, net 2,031 — — 2,031 Operating lease assets. net 1,152 — — 1,152 Intangible assets, net 10,701 — — 10,701 Goodwill 5,739 — — 5,739 Net investment in property leased to franchisees 66 — — 66 Intercompany receivable — 239 (239) — Investment in subsidiaries — 3,721 (3,721) — Other assets, net 824 — — 824 Total assets $ 22,777 $ 3,960 $ (3,960) $ 22,777 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 464 $ — $ — $ 464 Other accrued liabilities 596 239 — 835 Gift card liability 191 — — 191 Current portion of long-term debt and finance leases 111 — — 111 Total current liabilities 1,362 239 — 1,601 Long-term debt, net of current portion 12,397 — — 12,397 Finance leases, net of current portion 315 — — 315 Operating lease liabilities, net of current portion 1,082 — — 1,082 Other liabilities, net 2,236 — — 2,236 Payables to affiliates 239 — (239) — Deferred income taxes, net 1,425 — — 1,425 Total liabilities 19,056 239 (239) 19,056 Partners’ capital: Class A common units — 7,994 — 7,994 Partnership exchangeable units — (3,002) — (3,002) Common shares 3,026 — (3,026) — Retained Earnings 1,966 — (1,966) — Accumulated other comprehensive income (loss) (1,275) (1,275) 1,275 (1,275) Total Partners' capital/shareholders' equity 3,717 3,717 (3,717) 3,717 Noncontrolling interests 4 4 (4) 4 Total equity 3,721 3,721 (3,721) 3,721 Total liabilities and equity $ 22,777 $ 3,960 $ (3,960) $ 22,777 |
Condensed Income Statement | Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 590 $ — $ — $ 590 Franchise and property revenues 614 — — 614 Advertising revenues 234 — — 234 Total revenues 1,438 — — 1,438 Operating costs and expenses: Cost of sales 467 — — 467 Franchise and property expenses 121 — — 121 Advertising expenses 238 — — 238 General and administrative expenses 113 — — 113 (Income) loss from equity method investments 3 — — 3 Other operating expenses (income), net 8 — — 8 Total operating costs and expenses 950 — — 950 Income from operations 488 — — 488 Interest expense, net 126 — — 126 Income before income taxes 362 — — 362 Income tax (benefit) expense (29) — — (29) Net income 391 — — 391 Equity in earnings of consolidated subsidiaries — 391 (391) — Net income (loss) 391 391 (391) 391 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 390 $ 390 $ (390) $ 390 Comprehensive income (loss) $ 451 $ 451 $ (451) $ 451 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,097 $ — $ — $ 1,097 Franchise and property revenues 1,162 — — 1,162 Advertising revenues 439 — — 439 Total revenues 2,698 — — 2,698 Operating costs and expenses: Cost of sales 868 — — 868 Franchise and property expenses 237 — — 237 Advertising expenses 474 — — 474 General and administrative expenses 218 — — 218 (Income) loss from equity method investments 5 — — 5 Other operating expenses (income), net (34) — — (34) Total operating costs and expenses 1,768 — — 1,768 Income from operations 930 — — 930 Interest expense, net 250 — — 250 Income before income taxes 680 — — 680 Income tax (benefit) expense 18 — — 18 Net income 662 — — 662 Equity in earnings of consolidated subsidiaries — 662 (662) — Net income (loss) 662 662 (662) 662 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 660 $ 660 $ (660) $ 660 Comprehensive income (loss) $ 925 $ 925 $ (925) $ 925 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 406 $ — $ — $ 406 Franchise and property revenues 450 — — 450 Advertising revenues 192 — — 192 Total revenues 1,048 — — 1,048 Operating costs and expenses: Cost of sales 339 — — 339 Franchise and property expenses 132 — — 132 Advertising expenses 203 — — 203 General and administrative expenses 94 — — 94 (Income) loss from equity method investments 16 — — 16 Other operating expenses (income), net 21 — — 21 Total operating costs and expenses 805 — — 805 Income from operations 243 — — 243 Interest expense, net 128 — — 128 Income before income taxes 115 — — 115 Income tax (benefit) expense (49) — — (49) Net income 164 — — 164 Equity in earnings of consolidated subsidiaries — 164 (164) — Net income (loss) 164 164 (164) 164 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 163 $ 163 $ (163) $ 163 Comprehensive income (loss) $ 313 $ 313 $ (313) $ 313 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 909 $ — $ — $ 909 Franchise and property revenues 975 — — 975 Franchise contributions for advertising 389 389 Total revenues 2,273 — — 2,273 Operating costs and expenses: Cost of sales 738 — — 738 Franchise and property expenses 255 — — 255 Franchise advertising and related expenses 429 — — 429 Selling, general and administrative expenses 196 — — 196 (Income) loss from equity method investments 18 — — 18 Other operating expenses (income), net 5 — — 5 Total operating costs and expenses 1,641 — — 1,641 Income from operations 632 — — 632 Interest expense, net 247 — — 247 Income before income taxes 385 — — 385 Income tax (benefit) expense (3) — — (3) Net income 388 — — 388 Equity in earnings of consolidated subsidiaries — 388 (388) — Net income (loss) 388 388 (388) 388 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 387 $ 387 $ (387) $ 387 Comprehensive income (loss) $ (6) $ (6) $ 6 $ (6) |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six months ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 662 $ 662 $ (662) $ 662 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in loss (earnings) of consolidated subsidiaries — (662) 662 — Depreciation and amortization 100 — — 100 Amortization of deferred financing costs and debt issuance discount 13 — — 13 (Income) loss from equity method investments 5 — — 5 (Gain) loss on remeasurement of foreign denominated transactions (35) — — (35) Net (gains) losses on derivatives 42 — — 42 Share-based compensation expense 40 — — 40 Deferred income taxes 24 — — 24 Other (12) — — (12) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 17 — — 17 Inventories and prepaids and other current assets (5) — — (5) Accounts and drafts payable 103 — — 103 Other accrued liabilities and gift card liability (123) — — (123) Tenant inducements paid to franchisees (1) — — (1) Other long-term assets and liabilities (98) — — (98) Net cash provided by (used for) operating activities 732 — — 732 Cash flows from investing activities: Payments for property and equipment (46) — — (46) Net proceeds from disposal of assets, restaurant closures, and refranchisings 14 — — 14 Settlement/sale of derivatives, net 1 — — 1 Other investing activities, net (5) — — (5) Net cash provided by (used for) investing activities (36) — — (36) Cash flows from financing activities: Repayments of long-term debt and finance leases (54) — — (54) Distributions on Class A common and Partnership exchangeable units — (484) — (484) Capital contribution from RBI 56 — — 56 Distributions from subsidiaries (484) 484 — — (Payments) proceeds from derivatives (32) — — (32) Other financing activities, net (2) — — (2) Net cash provided by (used for) financing activities (516) — — (516) Effect of exchange rates on cash and cash equivalents 9 — — 9 Increase (decrease) in cash and cash equivalents 189 — — 189 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,749 $ — $ — $ 1,749 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six Months Ended June 30, 2020 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 388 $ 388 $ (388) $ 388 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in loss (earnings) of consolidated subsidiaries — (388) 388 — Depreciation and amortization 91 — — 91 Amortization of deferred financing costs and debt issuance discount 12 — — 12 (Income) loss from equity method investments 18 — — 18 (Gain) loss on remeasurement of foreign denominated transactions 10 — — 10 Net (gains) losses on derivatives (1) — — (1) Share-based compensation expense 39 — — 39 Deferred income taxes (131) — — (131) Other 20 — — 20 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (36) — — (36) Inventories and prepaids and other current assets (28) — — (28) Accounts and drafts payable (158) — — (158) Other accrued liabilities and gift card liability (13) — — (13) Tenant inducements paid to franchisees (5) — — (5) Other long-term assets and liabilities (10) — — (10) Net cash provided by (used for) operating activities 196 — — 196 Cash flows from investing activities: Payments for property and equipment (39) — — (39) Net proceeds from disposal of assets, restaurant closures, and refranchisings 5 — — 5 Settlement/sale of derivatives, net 22 — — 22 Net cash provided by (used for) investing activities (12) — — (12) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1,585 — — 1,585 Repayments of revolving line of credit, long-term debt and finance leases (1,045) — — (1,045) Payment of financing costs (10) — — (10) Distributions on Class A common and Partnership exchangeable units — (716) — (716) Capital contribution from RBI 41 — — 41 Distributions from subsidiaries (716) 716 — — (Payments) proceeds from derivatives (14) — — (14) Other financing activities, net (2) — — (2) Net cash provided by (used for) financing activities (161) — — (161) Effect of exchange rates on cash and cash equivalents (16) — — (16) Increase (decrease) in cash and cash equivalents 7 — — 7 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,540 $ — $ — $ 1,540 |
Description of Business and O_2
Description of Business and Organization - Additional Information (Details) | Jun. 30, 2021restaurantcountry |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 27,403 |
Number of countries in which company and franchise restaurants operated (more than) | country | 100 |
Percentage of franchised Tim Hortons, Burger King, and Popeyes restaurants | 100.00% |
Tim Hortons brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 5,065 |
Burger King brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 18,776 |
Popeyes brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 3,562 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation - Additional Information (Details) - restaurant | Jun. 30, 2021 | Dec. 31, 2020 |
Restaurant VIEs | ||
Summary Of Accounting Policies [Line Items] | ||
Number of VIE consolidated restaurants | 50 | 38 |
Leases - Property revenues (Det
Leases - Property revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease income - operating leases | ||||
Minimum lease payments | $ 117 | $ 109 | $ 230 | $ 221 |
Variable lease payments | 84 | 46 | 150 | 109 |
Amortization of favorable and unfavorable income lease contracts, net | 1 | 1 | 2 | 3 |
Subtotal - lease income from operating leases | 202 | 156 | 382 | 333 |
Earned income on direct financing leases | 1 | 2 | 3 | 3 |
Total property revenues | $ 203 | $ 158 | $ 385 | $ 336 |
Revenue Recognition - Change in
Revenue Recognition - Change in contract liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | $ 528 |
Recognized during period and included in the contract liability balance at the beginning of the year | (27) |
Increase, excluding amounts recognized as revenue during the period | 29 |
Impact of foreign currency translation | (4) |
Ending balance | 526 |
TH | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 62 |
Recognized during period and included in the contract liability balance at the beginning of the year | (5) |
Increase, excluding amounts recognized as revenue during the period | 5 |
Impact of foreign currency translation | 1 |
Ending balance | 63 |
BK | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 427 |
Recognized during period and included in the contract liability balance at the beginning of the year | (21) |
Increase, excluding amounts recognized as revenue during the period | 15 |
Impact of foreign currency translation | (5) |
Ending balance | 416 |
PLK | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 39 |
Recognized during period and included in the contract liability balance at the beginning of the year | (1) |
Increase, excluding amounts recognized as revenue during the period | 9 |
Impact of foreign currency translation | 0 |
Ending balance | $ 47 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated revenue recognition (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 526 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 25 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 46 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 45 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 43 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 40 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 327 |
TH | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 63 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 5 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 9 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 9 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 8 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 6 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 26 |
BK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 416 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 18 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 34 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 33 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 32 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 31 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 268 |
PLK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 47 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 2 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 3 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 3 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 3 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 3 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 33 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of total revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Property revenues | $ 203 | $ 158 | $ 385 | $ 336 |
Total revenues | 1,438 | 1,048 | 2,698 | 2,273 |
Sales | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 590 | 406 | 1,097 | 909 |
Royalties | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 391 | 277 | 737 | 606 |
Franchise fees and other revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 20 | 15 | 40 | 33 |
Advertising revenues | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 234 | 192 | 439 | 389 |
Total revenues | $ 234 | $ 192 | $ 439 | $ 389 |
Earnings per Unit - Basic and D
Earnings per Unit - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 390 | $ 163 | $ 660 | $ 387 |
Class A common units | ||||
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 259 | $ 106 | $ 438 | $ 250 |
Denominator - basic and diluted partnership units: | ||||
Weighted average number of shares outstanding, basic (in dollars per share) | 202,000 | 202,000 | 202,000 | 202,000 |
Weighted average number of shares outstanding, diluted (in dollars per share) | 202,000 | 202,000 | 202,000 | 202,000 |
Earnings per unit - basic and diluted: | ||||
Earnings per share, basic (in shares) | $ 1.28 | $ 0.52 | $ 2.17 | $ 1.24 |
Earnings per share, diluted (in shares) | $ 1.28 | $ 0.52 | $ 2.17 | $ 1.24 |
Partnership exchangeable units | ||||
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 131 | $ 57 | $ 222 | $ 137 |
Denominator - basic and diluted partnership units: | ||||
Weighted average number of shares outstanding, basic (in dollars per share) | 155,000 | 164,000 | 155,000 | 165,000 |
Weighted average number of shares outstanding, diluted (in dollars per share) | 155,000 | 164,000 | 155,000 | 165,000 |
Earnings per unit - basic and diluted: | ||||
Earnings per share, basic (in shares) | $ 0.84 | $ 0.35 | $ 1.43 | $ 0.83 |
Earnings per share, diluted (in shares) | $ 0.84 | $ 0.35 | $ 1.43 | $ 0.83 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, net and Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 843 | $ 852 |
Accumulated Amortization | (342) | (330) |
Net | 501 | 522 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 10,820 | 10,701 |
Goodwill [Line Items] | ||
Goodwill | 5,831 | 5,739 |
Tim Hortons brand | ||
Goodwill [Line Items] | ||
Goodwill | 4,377 | 4,279 |
Burger King brand | ||
Goodwill [Line Items] | ||
Goodwill | 608 | 614 |
Popeyes brand | ||
Goodwill [Line Items] | ||
Goodwill | 846 | 846 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 10,319 | 10,179 |
Trade names | Tim Hortons brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 6,811 | 6,650 |
Trade names | Burger King brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 2,153 | 2,174 |
Trade names | Popeyes brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 1,355 | 1,355 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 733 | 735 |
Accumulated Amortization | (278) | (264) |
Net | 455 | 471 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 110 | 117 |
Accumulated Amortization | (64) | (66) |
Net | $ 46 | $ 51 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 11 | $ 11 | $ 21 | $ 22 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in subsidiaries | $ 0 | $ 0 | $ 0 | ||
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts receivable from equity method investments | 49 | 49 | 52 | ||
Wendy's Company TIMWEN Partnership | Tim Hortons brand | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash distributions | 3 | $ 2 | 6 | $ 4 | |
Rent expense | 4 | $ 3 | 8 | $ 7 | |
Carrols Restaurant Group, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Quoted market price | $ 57 | $ 57 | |||
BK Brasil | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 9.40% | 9.40% | |||
Quoted market price | $ 62 | $ 62 | |||
Canada | Wendy's Company TIMWEN Partnership | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 50.00% | 50.00% | |||
United States | Carrols Restaurant Group, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 15.50% | 15.50% | |||
Other assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in subsidiaries | $ 204 | $ 204 | $ 205 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Franchise and Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from affiliates: | ||||
Total revenues | $ 1,438 | $ 1,048 | $ 2,698 | $ 2,273 |
Affiliates | ||||
Revenues from affiliates: | ||||
Property revenues | 8 | 8 | 16 | 16 |
Total revenues | 105 | 65 | 195 | 149 |
Royalties | ||||
Revenues from affiliates: | ||||
Revenues | 391 | 277 | 737 | 606 |
Royalties | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 78 | 42 | 143 | 103 |
Advertising revenues | ||||
Revenues from affiliates: | ||||
Revenues | 234 | 192 | 439 | 389 |
Total revenues | 234 | 192 | 439 | 389 |
Advertising revenues | Affiliates | ||||
Revenues from affiliates: | ||||
Property revenues | 15 | 12 | 28 | 24 |
Franchise fees and other revenue | ||||
Revenues from affiliates: | ||||
Revenues | 20 | 15 | 40 | 33 |
Franchise fees and other revenue | Affiliates | ||||
Revenues from affiliates: | ||||
Total revenues | $ 4 | $ 3 | $ 8 | $ 6 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities, net - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current: | ||
Distribution payable | $ 246 | $ 239 |
Interest payable | 69 | 66 |
Accrued compensation and benefits | 60 | 78 |
Taxes payable | 114 | 122 |
Deferred income | 43 | 42 |
Accrued advertising expenses | 55 | 59 |
Restructuring and other provisions | 14 | 12 |
Current portion of operating lease liabilities | 139 | 137 |
Other | 72 | 80 |
Other accrued liabilities | 812 | 835 |
Noncurrent: | ||
Taxes payable | 553 | 626 |
Contract liabilities | 526 | 528 |
Derivatives liabilities | 820 | 865 |
Unfavorable leases | 73 | 81 |
Accrued pension | 68 | 70 |
Deferred income | 34 | 28 |
Other | 36 | 38 |
Other liabilities, net | $ 2,110 | $ 2,236 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 05, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 | May 17, 2017 |
Debt Instrument [Line Items] | |||||||
TH Facility and other | $ 181 | $ 178 | |||||
Less: unamortized deferred financing costs and deferred issue discount | (142) | (155) | |||||
Total debt, net | 12,456 | 12,476 | |||||
Less: current maturities of debt | (81) | (79) | |||||
Total long-term debt | 12,375 | 12,397 | |||||
Term Loan B (due November 19, 2026) | |||||||
Debt Instrument [Line Items] | |||||||
Term loan facility | 5,270 | 5,297 | |||||
Term Loan A (due October 7, 2024) | |||||||
Debt Instrument [Line Items] | |||||||
Term loan facility | 722 | 731 | |||||
2017 4.25% Senior Notes (due May 15, 2024) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 775 | 775 | |||||
Stated interest rate (as a percent) | 4.25% | 4.25% | |||||
2019 3.875% Senior Notes (due January 15, 2028) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||
2020 5.75% Senior Notes (due April 15, 2025) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 500 | 500 | |||||
Stated interest rate (as a percent) | 5.75% | 5.75% | |||||
2020 3.50% Senior Notes (due February 15, 2029) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Stated interest rate (as a percent) | 3.50% | ||||||
2019 4.375% Senior Notes (due January 15, 2028) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 750 | 750 | |||||
Stated interest rate (as a percent) | 4.375% | 4.375% | |||||
2020 4.00% Senior Notes (due October 15, 2030) | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 2,900 | $ 2,900 | |||||
Stated interest rate (as a percent) | 4.00% | 4.00% |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Amount outstanding under credit facility | $ 12,456,000,000 | $ 12,476,000,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding under credit facility | 0 | |
Letters of credit issued against credit facility | 2,000,000 | |
Remaining borrowing capacity | 998,000,000 | |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - TH facility -
Long-Term Debt - TH facility - Additional Information (Details) $ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)subsidiary | Jun. 30, 2021CAD ($)subsidiary | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
Amount outstanding under credit facility | $ 12,456 | $ 12,476 | |
TH Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount outstanding | $ 225 | ||
Amount outstanding under credit facility | $ 219 | ||
Interest rate | 1.84% | 1.84% | |
TH Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Number of guaranteed subsidiaries | subsidiary | 4 | 4 | |
TH Facility | Canadian Bankers' Acceptance Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
TH Facility | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.40% |
Long-Term Debt - First Lien (De
Long-Term Debt - First Lien (Details) | Jul. 06, 2021USD ($)subsidiary | Jun. 30, 2021 | Sep. 24, 2019USD ($) | May 17, 2017 |
2021 3.875% Senior Notes | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Number of subsidiaries | subsidiary | 2 | |||
Aggregate principal amount of debt issued | $ 800,000,000 | |||
Period principal payments due | $ 0 | |||
2019 3.875% Senior Notes (due January 15, 2028) | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||
2019 3.875% Senior Notes (due January 15, 2028) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of debt issued | $ 750,000,000 | |||
Stated interest rate (as a percent) | 3.875% | |||
2019 3.875% Senior Notes (due January 15, 2028) | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 100.25% | |||
2017 4.25% Senior Notes (due May 15, 2024) | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 4.25% | 4.25% | ||
2017 4.25% Senior Notes (due May 15, 2024) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 4.25% | |||
2017 4.25% Senior Notes (due May 15, 2024) | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 775,000,000 |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Fair value of our variable term debt and senior notes | $ 12,303 | $ 12,477 |
Principal carrying amount of our variable term debt and senior notes | $ 12,417 | $ 12,453 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Debt | $ 115 | $ 119 | $ 228 | $ 232 |
Finance lease obligations | 5 | 5 | 10 | 10 |
Amortization of deferred financing costs and debt issuance discount | 6 | 6 | 13 | 12 |
Interest income | 0 | (2) | (1) | (7) |
Interest expense, net | 126 | 128 | 250 | 247 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | Interest expense, net | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) reclassified to earnings, net investment hedge | $ 11 | $ 20 | $ 23 | $ 41 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | (8.10%) | (42.30%) | 2.60% | (0.90%) |
Expiration of limitation for certain prior tax years | $ 89 | $ 87 | ||
Effective tax rate, period increase (decrease) | (24.70%) | (55.20%) | (12.80%) | (16.50%) |
Deferred tax assets, period increase | $ 64 | $ 64 |
Equity - Additional Information
Equity - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | |
Partnership exchangeable units | |||||
Stockholders Equity [Line Items] | |||||
BKW reorganization into Partnership (in shares) | 87,767 | 72,671 | 2,494,854 | 178,046 | 160,438 |
Equity - Summary of Changes in
Equity - Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | $ 4,002 | $ 3,752 | $ 3,721 | $ 4,259 |
Foreign currency translation adjustment | 141 | 342 | 195 | (409) |
Net change in fair value of derivatives, net of tax | 13 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 29 | 18 | 53 | 29 |
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 1 | 0 | 2 | 0 |
Ending balances | 4,259 | 3,852 | 4,259 | 3,852 |
Derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (107) | |||
Net change in fair value of derivatives, net of tax | 13 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 53 | |||
Ending balances | (41) | (41) | ||
Pensions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (45) | |||
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 2 | |||
Ending balances | (43) | (43) | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (1,123) | |||
Foreign currency translation adjustment | 195 | |||
Ending balances | (928) | (928) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (1,072) | (1,721) | (1,275) | (1,178) |
Ending balances | $ (1,012) | $ (1,572) | $ (1,012) | $ (1,572) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2021CAD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Net unrealized loss recognized in AOCI | $ 40,000,000 | $ 37,000,000 | $ (55,000,000) | $ 251,000,000 | |||||
Amount of pre-tax losses in AOCI expect to be reclassified into interest expense | 5,000,000 | ||||||||
Interest rate swaps | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | $ 3,500,000,000 | ||||||||
Interest rate swaps | Interest expense, net | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Net unrealized loss recognized in AOCI | 213,000,000 | ||||||||
Loss reclassified from OACI to Income | 50,000,000 | ||||||||
Net unrealized loss recognized at settlement | $ 85,000,000 | ||||||||
Interest Rate Swaps - Period One | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | 3,500,000,000 | 3,500,000,000 | |||||||
Interest Rate Swaps - Period Two | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | 500,000,000 | 500,000,000 | |||||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | 5,000,000,000 | 5,000,000,000 | $ 6,754 | ||||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | Derivatives designated as net investment hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | $ 500,000,000 | $ 400,000,000 | |||||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | Hedge Funds | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | 1,200,000,000 | 1,200,000,000 | € 1,108 | ||||||
Foreign Exchange Contract | |||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||
Notional amount | $ 143,000,000 | $ 143,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest rate swaps | Derivatives designated as cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ (44) | $ (48) | $ 85 | $ (348) |
Interest rate swaps | Interest expense, net | Derivatives designated as cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Reclassified from AOCI into Earnings | (31) | (26) | (61) | (41) |
Forward-currency contracts | Derivatives designated as cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | (1) | (2) | (2) | 5 |
Forward-currency contracts | Cost of sales | Derivatives designated as cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Reclassified from AOCI into Earnings | (2) | 2 | (4) | 2 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | (92) | (228) | (83) | 289 |
Cross-currency rate swaps | Interest expense, net | Derivatives designated as net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 11 | $ 20 | $ 23 | $ 41 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 9 | $ 0 |
Derivatives liabilities | 824 | 869 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 8 | 0 |
Derivatives designated as net investment hedges | Foreign currency | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 520 | 434 |
Derivatives designated as cash flow hedges | Foreign currency | Prepaids and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 1 | 0 |
Derivatives designated as cash flow hedges | Foreign currency | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 4 | 5 |
Derivatives designated as cash flow hedges | Interest rate | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | $ 300 | $ 430 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ 1 | $ 0 | $ (1) | $ (2) |
Litigation settlements (gains) and reserves, net | 1 | 1 | 3 | 1 |
Net losses (gains) on foreign exchange | 8 | 18 | (35) | 10 |
Other, net | (2) | 2 | (1) | (4) |
Other operating expenses (income), net | $ 8 | $ 21 | $ (34) | $ 5 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021brand | |
Segment Reporting [Abstract] | |
Number of brands | 3 |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Operating Segment and Country (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 1,438 | $ 1,048 | $ 2,698 | $ 2,273 |
Canada | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 754 | 514 | 1,392 | 1,146 |
United States | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 515 | 443 | 993 | 893 |
Other | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 169 | 91 | 313 | 234 |
TH | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 831 | 567 | 1,541 | 1,266 |
BK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 459 | 347 | 866 | 735 |
PLK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 148 | $ 134 | $ 291 | $ 272 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | $ 577 | $ 358 | $ 1,057 | $ 802 | ||
Impact of equity method investments | 3 | 16 | 5 | 18 | ||
Other operating expenses (income), net | 8 | 21 | (34) | 5 | ||
EBITDA | 539 | 289 | 1,030 | 723 | ||
Depreciation and amortization | 51 | 46 | 100 | 91 | ||
Income from operations | 488 | 243 | 930 | 632 | ||
Interest expense, net | 126 | 128 | 250 | 247 | ||
Income tax (benefit) expense | (29) | (49) | 18 | (3) | ||
Net income | 391 | $ 271 | 164 | $ 224 | 662 | 388 |
Unallocated Management G&A | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Share-based compensation and non-cash incentive compensation expense | 20 | 23 | 46 | 44 | ||
Corporate restructuring and tax advisory fees | 3 | 7 | 4 | 8 | ||
Impact of equity method investments | 7 | 18 | 11 | 22 | ||
Other operating expenses (income), net | 8 | 21 | (34) | 5 | ||
TH | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | 253 | 147 | 460 | 336 | ||
BK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | 266 | 160 | 483 | 360 | ||
PLK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | $ 58 | $ 51 | $ 114 | $ 106 |
Supplemental Financial Inform_3
Supplemental Financial Information - Narrative (Details) | Jun. 30, 2021 | Nov. 09, 2020 | Oct. 05, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 | May 17, 2017 |
2020 3.50% Senior Notes (due February 15, 2029) | |||||||
Stated interest rate (as a percent) | 3.50% | ||||||
2020 4.00% Senior Notes (due October 15, 2030) | |||||||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||||
2020 5.75% Senior Notes (due April 15, 2025) | |||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | |||||
2019 4.375% Senior Notes (due January 15, 2028) | |||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | |||||
2019 3.875% Senior Notes (due January 15, 2028) | |||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||
2017 4.25% Senior Notes (due May 15, 2024) | |||||||
Stated interest rate (as a percent) | 4.25% | 4.25% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||||
Cash and cash equivalents | $ 1,749 | $ 1,560 | $ 1,540 | $ 1,533 | ||
Accounts and notes receivable, net | 535 | 536 | ||||
Inventories, net | 99 | 96 | ||||
Prepaids and other current assets | 132 | 72 | ||||
Total current assets | 2,515 | 2,264 | ||||
Property and equipment, net | 2,033 | 2,031 | ||||
Operating lease assets, net | 1,143 | 1,152 | ||||
Intangible assets, net | 10,820 | 10,701 | ||||
Goodwill | 5,831 | 5,739 | ||||
Net investment in property leased to franchisees | 80 | 66 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other assets, net | 819 | 824 | ||||
Total assets | 23,241 | 22,777 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 575 | 464 | ||||
Other accrued liabilities | 812 | 835 | ||||
Gift card liability | 149 | 191 | ||||
Current portion of long-term debt and finance leases | 113 | 111 | ||||
Total current liabilities | 1,649 | 1,601 | ||||
Long-term debt, net of current portion | 12,375 | 12,397 | ||||
Finance leases, net of current portion | 326 | 315 | ||||
Operating lease liabilities, net of current portion | 1,078 | 1,082 | ||||
Other liabilities, net | 2,110 | 2,236 | ||||
Payables to affiliates | 0 | 0 | ||||
Deferred income taxes, net | 1,444 | 1,425 | ||||
Total liabilities | 18,982 | 19,056 | ||||
Partners’ capital: | ||||||
Common shares | 0 | 0 | ||||
Retained Earnings | 0 | 0 | ||||
Accumulated other comprehensive income (loss) | (1,012) | (1,275) | ||||
Total Partners’ capital | 4,255 | 3,717 | ||||
Noncontrolling interests | 4 | 4 | ||||
Total equity | 4,259 | $ 4,002 | 3,721 | 3,852 | $ 3,752 | 4,259 |
Total liabilities and equity | 23,241 | 22,777 | ||||
Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 8,222 | 7,994 | ||||
Total equity | 8,222 | 8,066 | 7,994 | 7,947 | 7,840 | 7,786 |
Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | (2,955) | (3,002) | ||||
Total equity | (2,955) | $ (2,998) | (3,002) | (2,526) | $ (2,370) | (2,353) |
Eliminations | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts and notes receivable, net | 0 | 0 | ||||
Inventories, net | 0 | 0 | ||||
Prepaids and other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Operating lease assets, net | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Net investment in property leased to franchisees | 0 | 0 | ||||
Intercompany receivable | (246) | (239) | ||||
Investment in subsidiaries | (4,259) | (3,721) | ||||
Other assets, net | 0 | 0 | ||||
Total assets | (4,505) | (3,960) | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 0 | 0 | ||||
Other accrued liabilities | 0 | 0 | ||||
Gift card liability | 0 | 0 | ||||
Current portion of long-term debt and finance leases | 0 | 0 | ||||
Total current liabilities | 0 | 0 | ||||
Long-term debt, net of current portion | 0 | 0 | ||||
Finance leases, net of current portion | 0 | 0 | ||||
Operating lease liabilities, net of current portion | 0 | 0 | ||||
Other liabilities, net | 0 | 0 | ||||
Payables to affiliates | (246) | (239) | ||||
Deferred income taxes, net | 0 | 0 | ||||
Total liabilities | (246) | (239) | ||||
Partners’ capital: | ||||||
Common shares | (3,132) | (3,026) | ||||
Retained Earnings | (2,135) | (1,966) | ||||
Accumulated other comprehensive income (loss) | 1,012 | 1,275 | ||||
Total Partners’ capital | (4,255) | (3,717) | ||||
Noncontrolling interests | (4) | (4) | ||||
Total equity | (4,259) | (3,721) | ||||
Total liabilities and equity | (4,505) | (3,960) | ||||
Eliminations | Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 0 | 0 | ||||
Eliminations | Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | 0 | 0 | ||||
Consolidated Borrowers | Reportable Legal Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,749 | 1,560 | 1,540 | 1,533 | ||
Accounts and notes receivable, net | 535 | 536 | ||||
Inventories, net | 99 | 96 | ||||
Prepaids and other current assets | 132 | 72 | ||||
Total current assets | 2,515 | 2,264 | ||||
Property and equipment, net | 2,033 | 2,031 | ||||
Operating lease assets, net | 1,143 | 1,152 | ||||
Intangible assets, net | 10,820 | 10,701 | ||||
Goodwill | 5,831 | 5,739 | ||||
Net investment in property leased to franchisees | 80 | 66 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other assets, net | 819 | 824 | ||||
Total assets | 23,241 | 22,777 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 575 | 464 | ||||
Other accrued liabilities | 566 | 596 | ||||
Gift card liability | 149 | 191 | ||||
Current portion of long-term debt and finance leases | 113 | 111 | ||||
Total current liabilities | 1,403 | 1,362 | ||||
Long-term debt, net of current portion | 12,375 | 12,397 | ||||
Finance leases, net of current portion | 326 | 315 | ||||
Operating lease liabilities, net of current portion | 1,078 | 1,082 | ||||
Other liabilities, net | 2,110 | 2,236 | ||||
Payables to affiliates | 246 | 239 | ||||
Deferred income taxes, net | 1,444 | 1,425 | ||||
Total liabilities | 18,982 | 19,056 | ||||
Partners’ capital: | ||||||
Common shares | 3,132 | 3,026 | ||||
Retained Earnings | 2,135 | 1,966 | ||||
Accumulated other comprehensive income (loss) | (1,012) | (1,275) | ||||
Total Partners’ capital | 4,255 | 3,717 | ||||
Noncontrolling interests | 4 | 4 | ||||
Total equity | 4,259 | 3,721 | ||||
Total liabilities and equity | 23,241 | 22,777 | ||||
Consolidated Borrowers | Reportable Legal Entities | Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 0 | 0 | ||||
Consolidated Borrowers | Reportable Legal Entities | Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | 0 | 0 | ||||
RBILP | Reportable Legal Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Accounts and notes receivable, net | 0 | 0 | ||||
Inventories, net | 0 | 0 | ||||
Prepaids and other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Operating lease assets, net | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Net investment in property leased to franchisees | 0 | 0 | ||||
Intercompany receivable | 246 | 239 | ||||
Investment in subsidiaries | 4,259 | 3,721 | ||||
Other assets, net | 0 | 0 | ||||
Total assets | 4,505 | 3,960 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 0 | 0 | ||||
Other accrued liabilities | 246 | 239 | ||||
Gift card liability | 0 | 0 | ||||
Current portion of long-term debt and finance leases | 0 | 0 | ||||
Total current liabilities | 246 | 239 | ||||
Long-term debt, net of current portion | 0 | 0 | ||||
Finance leases, net of current portion | 0 | 0 | ||||
Operating lease liabilities, net of current portion | 0 | 0 | ||||
Other liabilities, net | 0 | 0 | ||||
Payables to affiliates | 0 | 0 | ||||
Deferred income taxes, net | 0 | 0 | ||||
Total liabilities | 246 | 239 | ||||
Partners’ capital: | ||||||
Common shares | 0 | 0 | ||||
Retained Earnings | 0 | 0 | ||||
Accumulated other comprehensive income (loss) | (1,012) | (1,275) | ||||
Total Partners’ capital | 4,255 | 3,717 | ||||
Noncontrolling interests | 4 | 4 | ||||
Total equity | 4,259 | 3,721 | ||||
Total liabilities and equity | 4,505 | 3,960 | ||||
RBILP | Reportable Legal Entities | Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 8,222 | 7,994 | ||||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | $ (2,955) | $ (3,002) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||||
Total revenues | $ 1,438 | $ 1,048 | $ 2,698 | $ 2,273 | ||
Operating costs and expenses: | ||||||
Cost of sales | 467 | 339 | 868 | 738 | ||
Franchise and property expenses | 121 | 132 | 237 | 255 | ||
Advertising expenses | 238 | 203 | 474 | 429 | ||
General and administrative expenses | 113 | 94 | 218 | 196 | ||
(Income) loss from equity method investments | 3 | 16 | 5 | 18 | ||
Other operating expenses (income), net | 8 | 21 | (34) | 5 | ||
Total operating costs and expenses | 950 | 805 | 1,768 | 1,641 | ||
Income from operations | 488 | 243 | 930 | 632 | ||
Interest expense, net | 126 | 128 | 250 | 247 | ||
Income before income taxes | 362 | 115 | 680 | 385 | ||
Income tax (benefit) expense | (29) | (49) | 18 | (3) | ||
Net income | 391 | 164 | 662 | 388 | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income | 391 | $ 271 | 164 | $ 224 | 662 | 388 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 1 | ||
Net income attributable to common unitholders | 390 | 163 | 660 | 387 | ||
Comprehensive income (loss) | 451 | 313 | 925 | (6) | ||
Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Operating costs and expenses: | ||||||
Cost of sales | 0 | 0 | 0 | 0 | ||
Franchise and property expenses | 0 | 0 | 0 | 0 | ||
Advertising expenses | 0 | 0 | 0 | 0 | ||
General and administrative expenses | 0 | 0 | 0 | 0 | ||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
Other operating expenses (income), net | 0 | 0 | 0 | 0 | ||
Total operating costs and expenses | 0 | 0 | 0 | 0 | ||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | (391) | (164) | (662) | (388) | ||
Net income | (391) | (164) | (662) | (388) | ||
Net income (loss) attributable to noncontrolling interests | (1) | (1) | (2) | (1) | ||
Net income attributable to common unitholders | (390) | (163) | (660) | (387) | ||
Comprehensive income (loss) | (451) | (313) | (925) | 6 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 1,438 | 1,048 | 2,698 | 2,273 | ||
Operating costs and expenses: | ||||||
Cost of sales | 467 | 339 | 868 | 738 | ||
Franchise and property expenses | 121 | 132 | 237 | 255 | ||
Advertising expenses | 238 | 203 | 474 | 429 | ||
General and administrative expenses | 113 | 94 | 218 | 196 | ||
(Income) loss from equity method investments | 3 | 16 | 5 | 18 | ||
Other operating expenses (income), net | 8 | 21 | (34) | 5 | ||
Total operating costs and expenses | 950 | 805 | 1,768 | 1,641 | ||
Income from operations | 488 | 243 | 930 | 632 | ||
Interest expense, net | 126 | 128 | 250 | 247 | ||
Income before income taxes | 362 | 115 | 680 | 385 | ||
Income tax (benefit) expense | (29) | (49) | 18 | (3) | ||
Net income | 391 | 164 | 662 | 388 | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income | 391 | 164 | 662 | 388 | ||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 1 | ||
Net income attributable to common unitholders | 390 | 163 | 660 | 387 | ||
Comprehensive income (loss) | 451 | 313 | 925 | (6) | ||
RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Operating costs and expenses: | ||||||
Cost of sales | 0 | 0 | 0 | 0 | ||
Franchise and property expenses | 0 | 0 | 0 | 0 | ||
Advertising expenses | 0 | 0 | 0 | 0 | ||
General and administrative expenses | 0 | 0 | 0 | 0 | ||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
Other operating expenses (income), net | 0 | 0 | 0 | 0 | ||
Total operating costs and expenses | 0 | 0 | 0 | 0 | ||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | 391 | 164 | 662 | 388 | ||
Net income | 391 | 164 | 662 | 388 | ||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 1 | ||
Net income attributable to common unitholders | 390 | 163 | 660 | 387 | ||
Comprehensive income (loss) | 451 | 313 | 925 | (6) | ||
Sales | ||||||
Revenues: | ||||||
Sales | 590 | 406 | 1,097 | 909 | ||
Sales | Eliminations | ||||||
Revenues: | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Sales | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Sales | 590 | 406 | 1,097 | 909 | ||
Sales | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Franchise and property revenues | ||||||
Revenues: | ||||||
Total revenues | 614 | 450 | 1,162 | 975 | ||
Franchise and property revenues | Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 614 | 450 | 1,162 | 975 | ||
Franchise and property revenues | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Advertising revenues | ||||||
Revenues: | ||||||
Sales | 234 | 192 | 439 | 389 | ||
Total revenues | 234 | 192 | 439 | 389 | ||
Advertising revenues | Eliminations | ||||||
Revenues: | ||||||
Sales | 0 | 0 | 0 | |||
Advertising revenues | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Sales | 234 | 192 | 439 | 389 | ||
Advertising revenues | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Sales | $ 0 | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||||||
Net income | $ 391 | $ 271 | $ 164 | $ 224 | $ 662 | $ 388 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 100 | 91 | ||||
Amortization of deferred financing costs and debt issuance discount | 6 | 6 | 13 | 12 | ||
(Income) loss from equity method investments | 3 | 16 | 5 | 18 | ||
(Gain) loss on remeasurement of foreign denominated transactions | (35) | 10 | ||||
Net (gains) losses on derivatives | 42 | (1) | ||||
Share-based compensation expense | 40 | 39 | ||||
Deferred income taxes | 24 | (131) | ||||
Other | (12) | 20 | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 17 | (36) | ||||
Inventories and prepaids and other current assets | (5) | (28) | ||||
Accounts and drafts payable | 103 | (158) | ||||
Other accrued liabilities and gift card liability | (123) | (13) | ||||
Tenant inducements paid to franchisees | (1) | (5) | ||||
Other long-term assets and liabilities | (98) | (10) | ||||
Net cash provided by operating activities | 732 | 196 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | (46) | (39) | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 14 | 5 | ||||
Settlement/sale of derivatives, net | 1 | 22 | ||||
Other investing activities, net | (5) | 0 | ||||
Net cash (used for) provided by investing activities | (36) | (12) | ||||
Cash flows from financing activities: | ||||||
Proceeds from revolving line of credit and long-term debt | 0 | 1,585 | ||||
Repayments of revolving line of credit, long-term debt and finance leases | (54) | (1,045) | ||||
Payment of financing costs | 0 | (10) | ||||
Distributions on Class A common and Partnership exchangeable units | (484) | (716) | ||||
Capital contribution from RBI | 56 | 41 | ||||
Distributions from subsidiaries | 0 | 0 | ||||
(Payments) proceeds from derivatives | (32) | (14) | ||||
Other financing activities, net | (2) | (2) | ||||
Net cash (used for) provided by financing activities | (516) | (161) | ||||
Effect of exchange rates on cash and cash equivalents | 9 | (16) | ||||
Increase (decrease) in cash and cash equivalents | 189 | 7 | ||||
Cash and cash equivalents at beginning of period | 1,560 | 1,533 | 1,560 | 1,533 | ||
Cash and cash equivalents at end of period | 1,749 | 1,540 | 1,749 | 1,540 | ||
Eliminations | ||||||
Cash flows from operating activities: | ||||||
Net income | (391) | (164) | (662) | (388) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 391 | 164 | 662 | 388 | ||
Depreciation and amortization | 0 | 0 | ||||
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | ||||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 | ||||
Net (gains) losses on derivatives | 0 | 0 | ||||
Share-based compensation expense | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other | 0 | 0 | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 0 | 0 | ||||
Inventories and prepaids and other current assets | 0 | 0 | ||||
Accounts and drafts payable | 0 | 0 | ||||
Other accrued liabilities and gift card liability | 0 | 0 | ||||
Tenant inducements paid to franchisees | 0 | 0 | ||||
Other long-term assets and liabilities | 0 | 0 | ||||
Net cash provided by operating activities | 0 | 0 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | 0 | 0 | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 | ||||
Settlement/sale of derivatives, net | 0 | 0 | ||||
Other investing activities, net | 0 | |||||
Net cash (used for) provided by investing activities | 0 | 0 | ||||
Cash flows from financing activities: | ||||||
Proceeds from revolving line of credit and long-term debt | 0 | |||||
Repayments of revolving line of credit, long-term debt and finance leases | 0 | 0 | ||||
Payment of financing costs | 0 | |||||
Distributions on Class A common and Partnership exchangeable units | 0 | 0 | ||||
Capital contribution from RBI | 0 | 0 | ||||
Distributions from subsidiaries | 0 | 0 | ||||
(Payments) proceeds from derivatives | 0 | 0 | ||||
Other financing activities, net | 0 | 0 | ||||
Net cash (used for) provided by financing activities | 0 | 0 | ||||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||||
Increase (decrease) in cash and cash equivalents | 0 | 0 | ||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||||
Cash flows from operating activities: | ||||||
Net income | 391 | 164 | 662 | 388 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 100 | 91 | ||||
Amortization of deferred financing costs and debt issuance discount | 13 | 12 | ||||
(Income) loss from equity method investments | 3 | 16 | 5 | 18 | ||
(Gain) loss on remeasurement of foreign denominated transactions | (35) | 10 | ||||
Net (gains) losses on derivatives | 42 | (1) | ||||
Share-based compensation expense | 40 | 39 | ||||
Deferred income taxes | 24 | (131) | ||||
Other | (12) | 20 | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 17 | (36) | ||||
Inventories and prepaids and other current assets | (5) | (28) | ||||
Accounts and drafts payable | 103 | (158) | ||||
Other accrued liabilities and gift card liability | (123) | (13) | ||||
Tenant inducements paid to franchisees | (1) | (5) | ||||
Other long-term assets and liabilities | (98) | (10) | ||||
Net cash provided by operating activities | 732 | 196 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | (46) | (39) | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 14 | 5 | ||||
Settlement/sale of derivatives, net | 1 | 22 | ||||
Other investing activities, net | (5) | |||||
Net cash (used for) provided by investing activities | (36) | (12) | ||||
Cash flows from financing activities: | ||||||
Proceeds from revolving line of credit and long-term debt | 1,585 | |||||
Repayments of revolving line of credit, long-term debt and finance leases | (54) | (1,045) | ||||
Payment of financing costs | (10) | |||||
Distributions on Class A common and Partnership exchangeable units | 0 | 0 | ||||
Capital contribution from RBI | 56 | 41 | ||||
Distributions from subsidiaries | (484) | (716) | ||||
(Payments) proceeds from derivatives | (32) | (14) | ||||
Other financing activities, net | (2) | (2) | ||||
Net cash (used for) provided by financing activities | (516) | (161) | ||||
Effect of exchange rates on cash and cash equivalents | 9 | (16) | ||||
Increase (decrease) in cash and cash equivalents | 189 | 7 | ||||
Cash and cash equivalents at beginning of period | 1,560 | 1,533 | 1,560 | 1,533 | ||
Cash and cash equivalents at end of period | 1,749 | 1,540 | 1,749 | 1,540 | ||
RBILP | Reportable Legal Entities | ||||||
Cash flows from operating activities: | ||||||
Net income | 391 | 164 | 662 | 388 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | (391) | (164) | (662) | (388) | ||
Depreciation and amortization | 0 | 0 | ||||
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | ||||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 | ||||
Net (gains) losses on derivatives | 0 | 0 | ||||
Share-based compensation expense | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other | 0 | 0 | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 0 | 0 | ||||
Inventories and prepaids and other current assets | 0 | 0 | ||||
Accounts and drafts payable | 0 | 0 | ||||
Other accrued liabilities and gift card liability | 0 | 0 | ||||
Tenant inducements paid to franchisees | 0 | 0 | ||||
Other long-term assets and liabilities | 0 | 0 | ||||
Net cash provided by operating activities | 0 | 0 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | 0 | 0 | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 | ||||
Settlement/sale of derivatives, net | 0 | 0 | ||||
Other investing activities, net | 0 | |||||
Net cash (used for) provided by investing activities | 0 | 0 | ||||
Cash flows from financing activities: | ||||||
Proceeds from revolving line of credit and long-term debt | 0 | |||||
Repayments of revolving line of credit, long-term debt and finance leases | 0 | 0 | ||||
Payment of financing costs | 0 | |||||
Distributions on Class A common and Partnership exchangeable units | (716) | |||||
Capital contribution from RBI | 0 | 0 | ||||
Distributions from subsidiaries | 484 | 716 | ||||
(Payments) proceeds from derivatives | 0 | 0 | ||||
Other financing activities, net | 0 | 0 | ||||
Net cash (used for) provided by financing activities | 0 | 0 | ||||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||||
Increase (decrease) in cash and cash equivalents | 0 | 0 | ||||
Cash and cash equivalents at beginning of period | $ 0 | $ 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 05, 2021 | Jul. 07, 2021 | Jul. 06, 2021 | Jul. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jul. 28, 2021 | May 17, 2017 |
Subsequent Event [Line Items] | ||||||||||
Cash dividend declared by board (in usd per share) | $ 0.81 | $ 0.81 | $ 0.78 | $ 0.77 | ||||||
2017 4.25% Senior Notes (due May 15, 2024) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | ||||||||
Senior Notes | 2017 4.25% Senior Notes (due May 15, 2024) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stated interest rate (as a percent) | 4.25% | |||||||||
Forecast | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common stock dividends paid (in usd per share) | $ 0.53 | |||||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common stock dividends paid (in usd per share) | $ 0.53 | |||||||||
Cash dividend declared by board (in usd per share) | $ 0.53 | |||||||||
Shares repurchased (in shares) | 1,000,000,000 | |||||||||
Subsequent Event | Senior Notes | 2017 4.25% Senior Notes (due May 15, 2024) | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of debt | $ 775 | |||||||||
Partnership exchangeable units | Restaurant Brands International Limited Partnership | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Cash dividend paid per exchangeable unit (in usd per unit) | $ 0.53 | $ 0.53 |