Cover Page
Cover Page - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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(b) Security | Class B Exchangeable Limited Partnership Units | ||
Trading Symbol | QSP | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 875,033,360 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement of Restaurant Brands International Inc., the registrant’s general partner, for the 2022 Annual General Meeting of Shareholders of Restaurant Brands International Inc., which is to be filed no later than 120 days after December 31, 2021, are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001618755 | ||
Partnership exchangeable units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,978,558 | ||
Class A common units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 202,006,067 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Miami, FL |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,087 | $ 1,560 |
Accounts and notes receivable, net of allowance of $18 and $42, respectively | 547 | 536 |
Inventories, net | 96 | 96 |
Prepaids and other current assets | 86 | 72 |
Total current assets | 1,816 | 2,264 |
Property and equipment, net of accumulated depreciation and amortization of $979 and $879, respectively | 2,035 | 2,031 |
Operating lease assets, net | 1,130 | 1,152 |
Intangible assets, net | 11,417 | 10,701 |
Goodwill | 6,006 | 5,739 |
Net investment in property leased to franchisees | 80 | 66 |
Other assets, net | 762 | 824 |
Total assets | 23,246 | 22,777 |
Current liabilities: | ||
Accounts and drafts payable | 614 | 464 |
Other accrued liabilities | 947 | 835 |
Gift card liability | 221 | 191 |
Current portion of long-term debt and finance leases | 96 | 111 |
Total current liabilities | 1,878 | 1,601 |
Long-term debt, net of current portion | 12,916 | 12,397 |
Finance leases, net of current portion | 333 | 315 |
Operating lease liabilities, net of current portion | 1,070 | 1,082 |
Other liabilities, net | 1,822 | 2,236 |
Deferred income taxes, net | 1,374 | 1,425 |
Total liabilities | 19,393 | 19,056 |
Commitments and contingencies (Note 17) | ||
Partners’ capital: | ||
Accumulated other comprehensive income (loss) | (1,024) | (1,275) |
Total Partners’ capital | 3,850 | 3,717 |
Noncontrolling interests | 3 | 4 |
Total equity | 3,853 | 3,721 |
Total liabilities and equity | 23,246 | 22,777 |
Class A common units | ||
Partners’ capital: | ||
Class A common units - 202,006,067 units issued and outstanding at December 31, 2021 and December 31, 2020 | 8,421 | 7,994 |
Partnership exchangeable units | ||
Partners’ capital: | ||
Partnership exchangeable units - 144,993,458 units issued and outstanding at December 31, 2021; 155,113,338 units issued and outstanding at December 31, 2020 | $ (3,547) | $ (3,002) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing receivable, allowance for credit loss, current | $ 18 | $ 42 |
Accumulated depreciation and amortization, property, plant, and equipment | $ 979 | $ 879 |
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) | 144,993,458 | 155,113,338 |
Partnership exchangeable units, outstanding (in shares) | 144,993,458 | 155,113,338 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues: | $ 5,739 | $ 4,968 | $ 5,603 |
Operating costs and expenses: | |||
Cost of sales | 1,890 | 1,610 | 1,813 |
Franchise and property expenses | 489 | 515 | 533 |
Advertising expenses | 962 | 870 | 865 |
General and administrative expenses | 508 | 407 | 406 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Other operating expenses (income), net | 7 | 105 | (10) |
Total operating costs and expenses | 3,860 | 3,546 | 3,596 |
Income from operations | 1,879 | 1,422 | 2,007 |
Interest expense, net | 505 | 508 | 532 |
Loss on early extinguishment of debt | 11 | 98 | 23 |
Income before income taxes | 1,363 | 816 | 1,452 |
Income tax expense | 110 | 66 | 341 |
Net income | 1,253 | 750 | 1,111 |
Net income attributable to noncontrolling interests | 4 | 2 | 2 |
Net income attributable to common unitholders | 1,249 | 748 | 1,109 |
Class A common units | |||
Operating costs and expenses: | |||
Net income attributable to common unitholders | $ 838 | $ 486 | $ 643 |
Earnings per unit - basic and diluted (Note 3): | |||
Earnings per unit, basic (in shares) | $ 4.15 | $ 2.41 | $ 3.18 |
Earnings per unit, diluted (in shares) | $ 4.15 | $ 2.41 | $ 3.18 |
Weighted average units outstanding - basic and diluted (in millions) (Note 3): | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 202 | 202 | 202 |
Weighted average number of units outstanding, diluted (in dollars per share) | 202 | 202 | 202 |
Partnership exchangeable units | |||
Operating costs and expenses: | |||
Net income attributable to common unitholders | $ 411 | $ 262 | $ 466 |
Earnings per unit - basic and diluted (Note 3): | |||
Earnings per unit, basic (in shares) | $ 2.72 | $ 1.62 | $ 2.40 |
Earnings per unit, diluted (in shares) | $ 2.72 | $ 1.62 | $ 2.40 |
Weighted average units outstanding - basic and diluted (in millions) (Note 3): | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 151 | 162 | 194 |
Weighted average number of units outstanding, diluted (in dollars per share) | 151 | 162 | 194 |
Sales | |||
Revenues: | |||
Revenues: | $ 2,378 | $ 2,013 | $ 2,362 |
Franchise and property revenues | |||
Revenues: | |||
Revenues: | 2,452 | 2,121 | 2,381 |
Advertising revenues | |||
Revenues: | |||
Revenues: | $ 909 | $ 834 | $ 860 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,253 | $ 750 | $ 1,111 |
Foreign currency translation adjustment | (67) | 332 | 409 |
Net change in fair value of net investment hedges, net of tax of $15, $60, and $32 | 111 | (242) | (86) |
Net change in fair value of cash flow hedges, net of tax of $(36), $91, and $29 | 96 | (244) | (77) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(36), $(27), and $(6) | 96 | 73 | 15 |
Gain (loss) recognized on defined benefit pension plans and other items, net of tax of $(3), $3, and $1 | 15 | (16) | (2) |
Other comprehensive income (loss) | 251 | (97) | 259 |
Comprehensive income (loss) | 1,504 | 653 | 1,370 |
Comprehensive income (loss) attributable to noncontrolling interests | 4 | 2 | 2 |
Comprehensive income (loss) attributable to common unitholders | $ 1,500 | $ 651 | $ 1,368 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net change in fair value of net investment hedges, tax | $ 15 | $ 60 | $ 32 |
Net change in fair value of cash flow hedges, tax | (36) | 91 | 29 |
Amounts reclassified to earnings of cash flow hedges, tax | (36) | (27) | (6) |
Gain (loss) recognized on defined benefit pension plans and other items, tax | $ (3) | $ 3 | $ 1 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Class A common units | Class A common unitsClass A Common Units | Class A common unitsClass A Common UnitsCumulative Effect, Period of Adoption, Adjustment | Partnership exchangeable units | Partnership exchangeable unitsPartnership Exchangeable units | Partnership exchangeable unitsPartnership Exchangeable unitsCumulative Effect, Period of Adoption, Adjustment |
Class A beginning balance (in shares) at Dec. 31, 2018 | 202,006,067 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 3,618 | $ 21 | $ (1,437) | $ 2 | $ 4,323 | $ 12 | $ 730 | $ 9 | ||
Partnership exchangeable units beginning balance (in shares) at Dec. 31, 2018 | 207,523,591 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Distributions declared on class A common units | (545) | (545) | ||||||||
Distributions declared on partnership exchangeable units | (382) | $ (382) | ||||||||
Exchange of Partnership exchangeable units for RBI common shares | $ 0 | 3,176 | $ (3,176) | |||||||
Exchange of partnership exchange units for RBI common shares (in shares) | (42,016,392) | (42,016,392) | (42,016,392) | |||||||
Repurchase of partnership exchangeable units (in shares) | 0 | |||||||||
Repurchase of Partnership exchangeable units | $ 0 | $ 0 | ||||||||
Capital contribution from RBI Inc. | 177 | 177 | ||||||||
Restaurant VIE distributions | 0 | |||||||||
Net income | 1,111 | 2 | $ 643 | 466 | ||||||
Other comprehensive income (loss) | 259 | 259 | ||||||||
Class A ending balance (in shares) at Dec. 31, 2019 | 202,006,067 | |||||||||
Ending balance at Dec. 31, 2019 | 4,259 | (1,178) | 4 | $ 7,786 | $ (2,353) | |||||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2019 | 165,507,199 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Distributions declared on class A common units | (631) | (631) | ||||||||
Distributions declared on partnership exchangeable units | (336) | $ (336) | ||||||||
Exchange of Partnership exchangeable units for RBI common shares | $ 0 | 195 | $ (195) | |||||||
Exchange of partnership exchange units for RBI common shares (in shares) | (10,393,861) | (3,636,169) | (3,636,169) | |||||||
Repurchase of partnership exchangeable units (in shares) | (6,757,692) | |||||||||
Repurchase of Partnership exchangeable units | $ (380) | $ (380) | ||||||||
Capital contribution from RBI Inc. | 158 | 158 | ||||||||
Restaurant VIE distributions | (2) | (2) | ||||||||
Net income | 750 | 2 | $ 486 | $ 262 | ||||||
Other comprehensive income (loss) | (97) | (97) | ||||||||
Class A ending balance (in shares) at Dec. 31, 2020 | 202,006,067 | 202,006,067 | ||||||||
Ending balance at Dec. 31, 2020 | 3,721 | (1,275) | 4 | $ 7,994 | $ (3,002) | |||||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2020 | 155,113,338 | 155,113,338 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Distributions declared on class A common units | (658) | (658) | ||||||||
Distributions declared on partnership exchangeable units | (318) | $ (318) | ||||||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 638 | $ (638) | |||||||
Exchange of partnership exchange units for RBI common shares (in shares) | (10,119,880) | (10,119,880) | ||||||||
Distribution to RBI for repurchase of RBI common shares | (551) | (551) | ||||||||
Capital contribution from RBI Inc. | 160 | 160 | ||||||||
Restaurant VIE distributions | (5) | (5) | ||||||||
Net income | 1,253 | 4 | $ 838 | $ 411 | ||||||
Other comprehensive income (loss) | 251 | 251 | ||||||||
Class A ending balance (in shares) at Dec. 31, 2021 | 202,006,067 | 202,006,067 | ||||||||
Ending balance at Dec. 31, 2021 | $ 3,853 | $ (1,024) | $ 3 | $ 8,421 | $ (3,547) | |||||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2021 | 144,993,458 | 144,993,458 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2014-09 [Member] | |||
Class A common units | ||||
Cash dividend declared by board (in dollars per share) | $ 3.26 | $ 3.12 | $ 2.70 | |
Partnership exchangeable units | ||||
Cash dividend declared by board (in dollars per share) | $ 2.12 | $ 2.08 | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 1,253 | $ 750 | $ 1,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 201 | 189 | 185 |
Premiums paid and non-cash loss on early extinguishment of debt | 11 | 97 | 16 |
Amortization of deferred financing costs and debt issuance discount | 27 | 26 | 29 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Loss (gain) on remeasurement of foreign denominated transactions | (76) | 100 | (14) |
Net (gains) losses on derivatives | 87 | 32 | (49) |
Share-based compensation and non-cash incentive compensation expense | 102 | 84 | 74 |
Deferred income taxes | (5) | (208) | 58 |
Other | (16) | 28 | 6 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 8 | (30) | (53) |
Inventories and prepaids and other current assets | 12 | (10) | (15) |
Accounts and drafts payable | 149 | (183) | 112 |
Other accrued liabilities and gift card liability | 67 | 6 | (57) |
Tenant inducements paid to franchisees | (20) | (22) | (54) |
Other long-term assets and liabilities | (78) | 23 | 138 |
Net cash provided by operating activities | 1,726 | 921 | 1,476 |
Cash flows from investing activities: | |||
Payments for property and equipment | (106) | (117) | (62) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 16 | 12 | 8 |
Net payment for purchase of Firehouse Subs, net of cash acquired | (1,004) | 0 | 0 |
Settlement/sale of derivatives, net | 5 | 33 | 24 |
Other investing activities, net | (14) | (7) | 0 |
Net cash used for investing activities | (1,103) | (79) | (30) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 1,335 | 5,235 | 2,250 |
Repayments of revolving line of credit, long-term debt and finance leases | (889) | (4,708) | (2,266) |
Payment of financing costs | (19) | (43) | (50) |
Distributions on Class A common and Partnership exchangeable units | (974) | (959) | (901) |
Repurchase of Partnership exchangeable units | 0 | (380) | 0 |
Distributions to RBI for repurchase of RBI common shares | (551) | 0 | 0 |
Capital contribution from RBI | 60 | 82 | 102 |
(Payments) proceeds from derivatives | (51) | (46) | |
(Payments) proceeds from derivatives | 23 | ||
Other financing activities, net | (4) | (2) | 0 |
Net cash used for financing activities | (1,093) | (821) | (842) |
Effect of exchange rates on cash and cash equivalents | (3) | 6 | 16 |
Increase (decrease) in cash and cash equivalents | (473) | 27 | 620 |
Cash and cash equivalents at beginning of period | 1,560 | 1,533 | 913 |
Cash and cash equivalents at end of period | 1,087 | 1,560 | 1,533 |
Supplemental cash flow disclosures: | |||
Interest paid | 404 | 463 | 584 |
Income taxes paid | $ 256 | $ 267 | $ 248 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Description of Business Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “our”) is a Canadian limited partnership. On December 15, 2021 we acquired FRG, LLC (“Firehouse Subs”). 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”), chicken under the Popeyes ® brand (“Popeyes” or “PLK”) and sandwiches under the Firehouse Subs ® brand (“Firehouse” or “FHS”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of December 31, 2021, we franchised or owned 5,291 Tim Hortons restaurants, 19,247 Burger King restaurants, 3,705 Popeyes restaurants, and 1,213 Firehouse restaurants, for a total of 29,456 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Fiscal Year We operate on a monthly calendar, with a fiscal year that ends on December 31. TH, BK and PLK operate on the same fiscal year. The fiscal year of FHS ends on the Sunday on or before December 31 which was December 26, 2021. Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission 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. Principles of Consolidation The consolidated financial statements (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, investment 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. In these arrangements, Tim Hortons has the ability to determine which operators manage the restaurants and for what duration. 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 December 31, 2021 and 2020, we determined that we are the primary beneficiary of 46 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. Assets and liabilities related to consolidated VIEs are not significant to our total consolidated assets and liabilities. Liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our general assets. Reclassifications Certain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been reclassified in order to be comparable with the current year classifications. These consist of the 2020 and 2019 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 2020 and 2019 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. Foreign Currency Translation and Transaction Gains and Losses Our functional currency is the U.S. dollar, since our term loans and senior secured notes are denominated in U.S. dollars. The functional currency of each of our operating subsidiaries is generally the currency of the economic environment in which the subsidiary primarily does business. Our foreign subsidiaries’ financial statements are translated into U.S. dollars using the foreign exchange rates applicable to the dates of the financial statements. Assets and liabilities are translated using the end-of-period spot foreign exchange rates. Income, expenses and cash flows are translated at the average foreign exchange rates for each period. Equity accounts are translated at historical foreign exchange rates. The effects of these translation adjustments are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in the consolidated statements of equity. For any transaction that is denominated in a currency different from the entity’s functional currency, we record a gain or loss based on the difference between the foreign exchange rate at the transaction date and the foreign exchange rate at the transaction settlement date (or rate at period end, if unsettled) which is included within other operating expenses (income), net in the consolidated statements of operations. Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less and credit card receivables are considered cash equivalents. Inventories Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials such as green coffee beans and finished goods such as new equipment, parts, paper supplies and restaurant food items. The moving average method is used to determine the cost of raw materials and finished goods inventories held for sale to Tim Hortons franchisees. Property and Equipment, net We record property and equipment at historical cost less accumulated depreciation and amortization, which is recognized using the straight-line method over the following estimated useful lives: (i) buildings and improvements – up to 40 years; (ii) restaurant equipment – up to 17 years; (iii) furniture, fixtures and other – up to 10 years; and (iv) manufacturing equipment – up to 25 years. Leasehold improvements to properties where we are the lessee are amortized over the lesser of the remaining term of the lease or the estimated useful life of the improvement. Major improvements are capitalized, while maintenance and repairs are expensed when incurred. Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit or loss on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. Goodwill and Intangible Assets Not Subject to Amortization Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in connection with the acquisition of Firehouse Subs in 2021, the acquisition of Popeyes in 2017, the acquisition of Tim Hortons in 2014 and the acquisition of Burger King Holdings, Inc. by 3G Capital Partners Ltd. in 2010. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, the Popeyes brand and the Firehouse Subs brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of October 1 of each year and more often if an event occurs or circumstances change which indicate impairment might exist. Our annual impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit or Brand in any period. We can resume the qualitative assessment for any reporting unit or Brand in any subsequent period. Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a quantitative goodwill impairment test that requires us to estimate the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying amount, we will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-likely-than-not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for a Brand, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand exceeds its fair value, we estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount exceeds fair value, an impairment loss is recognized in an amount equal to that excess. We completed our impairment tests for goodwill and the Brands as of October 1, 2021, 2020 and 2019 and no impairment resulted. Long-Lived Assets Long-lived assets, such as property and equipment, intangible assets subject to amortization and lease right-of-use assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, bankruptcy proceedings or other significant financial distress of a lessee; significant negative industry or economic trends; knowledge of transactions involving the sale of similar property at amounts below the carrying value; or our expectation to dispose of long-lived assets before the end of their estimated useful lives. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from use and eventual disposition of the assets or asset group. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows, we record an impairment charge equal to the excess, if any, of the net carrying value over fair value. Other Comprehensive Income (Loss) Other comprehensive income (loss) (“OCI”) refers to revenues, expenses, gains and losses that are included in comprehensive income (loss), but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to equity, net of tax. Our other comprehensive income (loss) is primarily comprised of unrealized gains and losses on foreign currency translation adjustments and unrealized gains and losses on hedging activity, net of tax. Derivative Financial Instruments We recognize and measure all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. We may enter into derivatives that are not designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings, depending on the purpose of the derivatives and whether they qualify for, and we have applied, hedge accounting treatment. When applying hedge accounting, we designate at a derivative’s inception, the specific assets, liabilities or future commitments being hedged, and assess the hedge’s effectiveness at inception and on an ongoing basis. We discontinue hedge accounting when: (i) we determine that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designation of the derivatives as a hedge instrument is no longer appropriate. We do not enter into or hold derivatives for speculative purposes. Disclosures about Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). The fair value is based on assumptions that market participants would use when pricing the asset or liability. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation, as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. 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. We carry all of our derivatives at fair value and value them using various pricing models or discounted cash flow analysis that incorporate observable market parameters, such as interest rate yield curves and currency rates, which are Level 2 inputs. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 12, Derivative Instruments . 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 December 31, 2021 2020 Fair value of our variable term debt and senior notes $ 12,851 $ 12,477 Principal carrying amount of our variable term debt and senior notes 12,943 12,453 The determinations of fair values of certain tangible and intangible assets for purposes of the application of the acquisition method of accounting to the acquisition of Firehouse Subs were based on Level 3 inputs. The determination of fair values of our reporting units and the determination of the fair value of the Brands for impairment testing using a quantitative approach during 2020 and 2019 were based upon Level 3 inputs. Revenue Recognition Sales Sales consist primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and are presented net of any related sales tax. Orders placed by customers specify the goods to be delivered and transaction prices for supply chain sales. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Shipping and handling costs associated with outbound freight for supply chain sales are accounted for as fulfillment costs and classified as cost of sales. To a much lesser extent, sales also include Company restaurant sales (including Restaurant VIEs), which consist of sales to restaurant guests. Revenue from Company restaurant sales is recognized at the point of sale. Taxes assessed by a governmental authority that we collect are excluded from revenue. Franchise revenues and advertising revenues Franchise revenues and advertising revenues consist primarily of royalties, advertising fund contributions, initial and renewal franchise fees and upfront fees from development agreements and master franchise and development agreements (“MFDAs”). Under franchise agreements, we provide franchisees with (i) a franchise license, which includes a license to use our intellectual property and, in those markets where our subsidiaries manage an advertising fund, advertising and promotion management, (ii) pre-opening services, such as training and inspections, and (iii) ongoing services, such as development of training materials and menu items and restaurant monitoring and inspections. The services we provide under franchise agreements are highly interrelated and dependent upon the franchise license and we concluded the services do not represent individually distinct performance obligations. Consequently, we bundle the franchise license performance obligation and promises to provide services into a single performance obligation, which we satisfy by providing a right to use our intellectual property over the term of each franchise agreement. Royalties, including franchisee contributions to advertising funds managed by our subsidiaries, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. Initial and renewal franchise fees are payable by the franchisee upon a new restaurant opening or renewal of an existing franchise agreement. Our franchise agreement royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to our performance obligation under the franchise agreement and are recognized as franchise sales occur. We separately classify advertising fund contributions in Advertising revenues while all other franchise revenues are classified in Franchise and property revenues. Additionally, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements other than MFDAs generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee. We have a distinct performance obligation under our MFDAs to grant subfranchising rights over a stated term. Under the terms of MFDAs, we typically either receive an upfront fee paid in cash and/or receive noncash consideration in the form of an equity interest in the master franchisee or an affiliate of the master franchisee. We account for noncash consideration as investments in the applicable equity method investee and recognize revenue in an amount equal to the fair value of the equity interest received. Upfront fees from master franchisees, including the fair value of noncash consideration, are deferred and amortized over the MFDA term on a straight-line basis. 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. The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage. We recognize gift card breakage income proportionately as each gift card is redeemed using an estimated breakage rate based on our historical experience. Property revenues Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted for in accordance with applicable accounting guidance for leases and are excluded from the scope of revenue recognition guidance. Advertising and Promotional Costs Company restaurants and franchise restaurants contribute to advertising funds that our subsidiaries manage in the United States and Canada and certain other international markets. The advertising funds expense the production costs of advertising when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. The advertising contributions by Company restaurants (including Restaurant VIEs) are eliminated in consolidation. Deferred Financing Costs Deferred financing costs are amortized over the term of the related debt agreement into interest expense using the effective interest method. Income Taxes Amounts in the Financial Statements related to income taxes are calculated using the principles of ASC Topic 740, Income Taxes . Under these principles, deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as well as tax credit carry-forwards and loss carry-forwards. These deferred taxes are measured by applying currently enacted tax rates. A deferred tax asset is recognized when it is considered more-likely-than-not to be realized. The effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the year in which the law is enacted. A valuation allowance reduces deferred tax assets when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We recognize positions taken or expected to be taken in a tax return in the Financial Statements when it is more-likely-than-not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. Translation gains and losses resulting from the remeasurement of foreign deferred tax assets or liabilities denominated in a currency other than the functional currency are classified as other operating expenses (income), net in the consolidated statements of operations. Share-based Compensation Compensation expense related to the issuance of share-based awards to our employees is measured at fair value on the grant date. We use the Black-Scholes option pricing model to value stock options. The fair value of restricted stock units is based on the closing price of our stock at the award date. If applicable, RBI's total shareholder return relative to our peer group is incorporated into the underlying assumptions using a Monte Carlo simulation valuation model to calculate grant date fair value for performance based awards with a market condition. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis, adjusted for estimated forfeitures of awards that are not expected to vest. We use historical data to estimate forfeitures for share-based awards. Upon the end of the service period, compensation expense is adjusted to account for the actual forfeiture rate. The compensation expense for awards that contain performance conditions is recognized when it is probable that the performance conditions will be achieved. 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. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships. 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 do not expect that the adoption of this new guidance will have a material impact on our Financial Statements. |
Earnings Per Unit
Earnings Per Unit | 12 Months Ended |
Dec. 31, 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 unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as the exercise of stock options will not affect the numbers 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): 2021 2020 2019 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 838 $ 486 $ 643 Net income allocated to Partnership exchangeable unitholders 411 262 466 Net income attributable to common unitholders $ 1,249 $ 748 $ 1,109 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 Weighted average Partnership exchangeable units 151 162 194 Earnings per unit - basic and diluted: Class A common units (a) $ 4.15 $ 2.41 $ 3.18 Partnership exchangeable units (a) $ 2.72 $ 1.62 $ 2.40 |
Firehouse Acquisition
Firehouse Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Firehouse Acquisition | Firehouse Acquisition On December 15, 2021, we completed the acquisition of Firehouse Subs (the “Firehouse Acquisition”) which complements RBI's existing portfolio. Like RBI's other brands, the Firehouse Subs brand is managed independently, while benefiting from the global scale and resources of RBI. The Firehouse Acquisition was accounted for as a business combination using the acquisition method of accounting. Total consideration in connection with the Firehouse Acquisition was $1,033 million, subject to post-closing adjustments. The consideration was funded through cash on hand and $533 million of incremental borrowings under our Term Loan Facility - See Note 9, Long-Term Debt . Fees and expenses related to the Firehouse Acquisition and related financings (“FHS Transaction costs”) totaled $18 million, consisting primarily of professional fees and compensation related expenses which are classified as general and administrative expenses in the accompanying consolidated statements of operations. The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 768 Total liabilities (13) Total identifiable net assets 780 Goodwill 253 Total consideration $ 1,033 The purchase price allocation reflects preliminary fair value estimates based on management's analysis, including preliminary work performed by third-party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period. The Firehouse Subs brand has been assigned an indefinite life and, therefore, will not be amortized, but rather tested annually for impairment. Goodwill attributable to the Firehouse Acquisition will be amortized and deductible for tax purposes. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company. We have not yet allocated goodwill related to the Firehouse Acquisition to reporting units for goodwill impairment testing purposes. Goodwill will be allocated to reporting units when the purchase price allocation is finalized during the measurement period. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, consist of the following (in millions): As of December 31, 2021 2020 Land $ 1,011 $ 1,007 Buildings and improvements 1,200 1,192 Restaurant equipment 193 163 Furniture, fixtures, and other 257 242 Finance leases 323 289 Construction in progress 30 17 3,014 2,910 Accumulated depreciation and amortization (979) (879) Property and equipment, net $ 2,035 $ 2,031 Depreciation and amortization expense on property and equipment totaled $148 million for 2021, $140 million for 2020 and $136 million for 2019. Included in our property and equipment, net at December 31, 2021 and 2020 are $246 million and $238 million, respectively, of assets leased under finance leases (mostly buildings and improvements), net of accumulated depreciation and amortization of $77 million and $51 million, respectively. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 12 Months Ended |
Dec. 31, 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 December 31, 2021 2020 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 722 $ (290) $ 432 $ 735 $ (264) $ 471 Favorable leases 104 (63) 41 117 (66) 51 Subtotal 826 (353) 473 852 (330) 522 Indefinite-lived intangible assets: Tim Hortons brand $ 6,695 $ — $ 6,695 $ 6,650 $ — $ 6,650 Burger King brand 2,126 — 2,126 2,174 — 2,174 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 768 — 768 — — — Subtotal 10,944 — 10,944 10,179 — 10,179 Intangible assets, net $ 11,417 $ 10,701 Goodwill Tim Hortons segment $ 4,306 $ 4,279 Burger King segment 601 614 Popeyes segment 846 846 Firehouse segment 253 — Total $ 6,006 $ 5,739 Amortization expense on intangible assets totaled $41 million for 2021, $43 million for 2020, and $44 million for 2019. The change in the brands and goodwill balances during 2021 was due to the acquisition of Firehouse Subs and the impact of foreign currency translation. As of December 31, 2021, the estimated future amortization expense on identifiable assets subject to amortization is as follows (in millions): Twelve-months ended December 31, Amount 2022 $ 39 2023 37 2024 36 2025 34 2026 34 Thereafter 293 Total $ 473 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amount of our equity method investments was $194 million and $205 million as of December 31, 2021 and 2020, respectively, and is included as a component of Other assets, net in our consolidated balance sheets. 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 December 31, 2021 is approximately $28 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 December 31, 2021 is approximately $28 million. We have evaluated recent declines in the market value of these equity method investments and concluded they are not other than temporary and as such no impairments have been recognized during 2021. We have equity interests in entities that own or franchise Tim Hortons or Burger King restaurants. Franchise and property revenue recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): 2021 2020 2019 Revenues from affiliates: Royalties $ 350 $ 239 $ 290 Advertising revenues 67 50 55 Property revenues 32 32 33 Franchise fees and other revenue 21 14 10 Total $ 470 $ 335 $ 388 At December 31, 2021 and 2020, we had $48 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 consolidated balance sheets. With respect to our TH business, the most significant equity method investment is our 50.0% 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 $16 million, $8 million and $13 million during 2021, 2020 and 2019, respectively. We recognized rent expense associated with the TIMWEN Partnership of $18 million, $15 million, and $19 million during 2021, 2020 and 2019, respectively. (Income) loss from equity method investments reflects our share of investee net income or loss, non-cash dilution gains or losses from changes in our ownership interests in equity method investees and basis difference amortization. We recorded increases to the carrying value of our equity method investment balances and non-cash dilution gains in the amounts of $11 million during 2019. No non-cash dilution gains were recorded during 2021 and 2020. The dilution gains resulted from the issuance of capital stock by our equity method investees, which reduced our ownership interests in these equity method investments. The dilution gains we recorded in connection with the issuance of capital stock reflect adjustments to the differences between the amount of underlying equity in the net assets of equity method investees before and after their issuance of capital stock. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities | Other Accrued Liabilities and Other Liabilities Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions): As of December 31, 2021 2020 Current: Distributions payable $ 241 $ 239 Interest payable 63 66 Accrued compensation and benefits 99 78 Taxes payable 106 122 Deferred income 48 42 Accrued advertising expenses 43 59 Restructuring and other provisions 90 12 Current portion of operating lease liabilities 140 137 Other 117 80 Other accrued liabilities $ 947 $ 835 Non-current: Taxes payable $ 533 $ 626 Contract liabilities (see Note 15) 531 528 Derivatives liabilities 575 865 Unfavorable leases 65 81 Accrued pension 47 70 Deferred income 37 28 Other 34 38 Other liabilities, net $ 1,822 $ 2,236 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consist of the following (in millions): As of December 31, 2021 2020 Term Loan B $ 5,243 $ 5,297 Term Loan A 1,250 731 4.25% First Lien Senior Notes due 2024 — 775 3.875% First Lien Senior Notes due 2028 1,550 750 5.75% First Lien Senior Notes due 2025 500 500 3.50% First Lien Senior Notes due 2029 750 750 4.375% Second Lien Senior Notes due 2028 750 750 4.00% Second Lien Senior Notes due 2030 2,900 2,900 TH Facility and other 173 178 Less: unamortized deferred financing costs and deferred issuance discount (138) (155) Total debt, net 12,978 12,476 Less: current maturities of debt (62) (79) Total long-term debt $ 12,916 $ 12,397 Credit Facilities On December 13, 2021, two of our subsidiaries (the “Borrowers”) entered into a fifth incremental facility amendment and a sixth amendment (the “2021 Amendment”) to the credit agreement governing our senior secured term loan A facility (the “Term Loan A”), our senior secured term loan B facility (the “Term Loan B” and together with the Term Loan A the “Term Loan Facilities”) and our $1,000 million senior secured revolving credit facility (including revolving loans, swingline loans and letters of credit) (the “Revolving Credit Facility” and together with the Term Loan Facilities, the “Credit Facilities”). The 2021 Amendment increased the existing Term Loan A with $717 million outstanding to a $1,250 million Term Loan A and extended the maturity date of the Term Loan A and Revolving Credit Facility from October 7, 2024 to December 13, 2026 (subject to earlier maturity in specified circumstances). The security and guarantees under the Revolving Credit Facility and Term Loan A are the same as those under the existing facilities. The proceeds from the increase in the Term Loan A were used with cash on hand to complete the Firehouse Acquisition. In connection with the 2021 Amendment, we capitalized approximately $12 million in debt issuance costs. The 2021 Amendment also amended the interest rate applicable to the Revolving Credit Facility and the Term Loan A to incorporate SOFR. The interest rate applicable to the Term Loan A and Revolving Credit Facility is, at our option, either (a) a base rate, subject to a floor of 1.00%, plus an applicable margin varying from 0.00% to 0.50%, or (b) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a 0.10% adjustment), subject to a floor of 0.00%, plus an applicable margin varying between 0.75% and 1.50%, in each case, determined by reference to a net first lien leverage-based pricing grid. The commitment fee on the unused portion of the Revolving Credit Facility is 0.15%. At December 31, 2021, the interest rate on the Term Loan A was 1.40%. The principal amount of the Term Loan A amortizes in quarterly installments equal to $8 million beginning March 31, 2023 until September 30, 2024 and thereafter in quarterly installments equal to $16 million until maturity, with the balance payable at maturity. The 2021 Amendment includes amendments to certain negative covenants to provide increased flexibility. The 2021 Amendment made no other material changes to the terms of the Credit Agreement. The maturity date of our Term Loan B is November 19, 2026 and the interest rate applicable to our Term Loan B is, at our option, either (a) a base rate, subject to a floor of 1.00%, plus an applicable margin of 0.75%, or (b) a Eurocurrency rate, subject to a floor of 0.00%, plus an applicable margin of 1.75%. At December 31, 2021, the interest rate on the Term Loan B was 1.85%. The principal amount of the Term Loan B amortizes in quarterly installments equal to $13 million until maturity, with the balance payable at maturity. On April 2, 2020, the Borrowers entered into a fifth amendment (the “Fifth Amendment”) to the credit agreement (the “Credit Agreement”) governing our Credit Facilities. The Fifth Amendment provides the Borrowers with the option to comply with a $1,000 million minimum liquidity covenant in lieu of the 6.50:1.00 net first lien senior secured leverage ratio financial maintenance covenant for the period after June 30, 2020 and prior to September 30, 2021. Additionally, for the periods ending September 30, 2021 and December 31, 2021, to determine compliance with the net first lien senior secured leverage ratio, we are permitted to annualize the Adjusted EBITDA (as defined in the Credit Agreement) for the three months ending September 30, 2021 and six months ending December 31, 2021, respectively, in lieu of calculating the ratio based on Adjusted EBITDA for the prior four quarters. There were no other material changes to the terms of the Credit Agreement. Revolving Credit Facility As of December 31, 2021, we had no amounts outstanding under our Revolving Credit Facility. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt, RBI share repurchases or partnership exchangeable unit repurchases, to 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. The interest rate applicable to amounts drawn under each letter of credit is 0.75% to 1.50%, depending on our net first lien leverage ratio. As of December 31, 2021, we had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability was $998 million. Obligations under the Credit Facilities are guaranteed on a senior secured basis, jointly and severally, by the direct parent company of one of the Borrowers and substantially all of its Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Corporation, Popeyes Louisiana Kitchen, Inc., FRG, LLC and substantially all of their respective Canadian and U.S. subsidiaries (the “Credit Guarantors”). Amounts borrowed under the Credit Facilities are secured on a first priority basis by a perfected security interest in substantially all of the present and future property (subject to certain exceptions) of each Borrower and Credit Guarantor. 4.25% First Lien Senior Notes due 2024 During 2017, the Borrowers entered into an indenture (the “4.25% First Lien Senior Notes Indenture”) in connection with the issuance of $1,500 million of 4.25% first lien senior notes due May 15, 2024 (the “4.25% First Lien Senior Notes due 2024”). No principal payments were due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 4.25% First Lien Senior Notes due 2024, together with other sources of liquidity, were used to redeem all of the outstanding Class A 9.0% cumulative compounding perpetual voting preferred shares and for other general corporate purposes. In connection with the issuance of the 4.25% First Lien Senior Notes due 2024, we capitalized approximately $13 million in debt issuance costs. As detailed below, during 2020 we redeemed $725 million of the 4.25% First Lien Senior Notes due 2024 and during 2021 we redeemed the remaining outstanding balance of $775 million. 3.875% First Lien Senior Notes due 2028 On September 24, 2019, the Borrowers entered into an indenture (the “3.875% First Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 3.875% first lien senior notes due January 15, 2028 (the “2019 3.875% Senior Notes”). On July 6, 2021, the Borrowers issued an additional $800 million under the 3.875% First Lien Senior Notes Indenture (the “Additional Notes” and together with the 2019 3.875% Senior Notes, the “3.875% First Lien Senior Notes due 2028”). No principal payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 2019 3.875% Senior Notes and a portion of the net proceeds from the Term Loan A were used to redeem the entire outstanding principal balance of $1,250 million of 4.625% first lien secured notes due January 15, 2022 and to pay related fees and expenses. In connection with the issuance of the 2019 3.875% Senior Notes, we capitalized approximately $10 million in debt issuance costs. In connection with the redemption of the entire outstanding principal balance of the 4.625% first lien secured notes due January 15, 2022, we recorded a loss on early extinguishment of debt of $3 million that primarily reflects the write-off of related unamortized debt issuance costs. The Additional Notes were priced at 100.250% of their face value. The net proceeds from the offering of the Additional Notes were used to redeem the remaining $775 million principal amount outstanding of the 4.25% First Lien Senior Notes due 2024 on July 15, 2021, plus any accrued and unpaid interest thereon, and pay related redemption premiums, fees and expenses. In connection with the issuance of the Additional Notes, we capitalized approximately $7 million in debt issuance costs. In connection with the redemption of the remaining $775 million principal amount outstanding of the 4.25% First Lien Senior Notes due 2024, we recorded a loss on early extinguishment of debt of $11 million that primarily reflects the payment of redemption premiums and the write-off of unamortized debt issuance costs. Obligations under the 3.875% First Lien Senior Notes due 2028 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., FRG, LLC and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The 3.875% First Lien Senior Notes due 2028 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 Credit Facilities. The 3.875% First Lien Senior Notes due 2028 may be redeemed in whole or in part, on or after September 15, 2022, at the redemption prices set forth in the 3.875% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 3.875% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 5.75% First Lien Senior Notes due 2025 On April 7, 2020, the Borrowers entered into an indenture (the “5.75% First Lien Senior Notes Indenture”) in connection with the issuance of $500 million of 5.75% first lien notes due April 15, 2025 (the “5.75% First Lien Senior Notes due 2025”). No principal payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 5.75% First Lien Senior Notes due 2025 were used for general corporate purposes. In connection with the issuance of the 5.75% First Lien Senior Notes due 2025, we capitalized approximately $10 million in debt issuance costs. Obligations under the 5.75% First Lien Senior Notes due 2025 are guaranteed on a senior secured basis, jointly and severally, by the Note Guarantors. The 5.75% First Lien Senior Notes due 2025 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 of the Credit Facilities. Our 5.75% First Lien Senior Notes due 2025 may be redeemed in whole or in part, on or after April 15, 2022 at the redemption prices set forth in the 5.75% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 5.75% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 3.50% First Lien Senior Notes due 2029 On November 9, 2020, the Borrowers entered into an indenture (the “3.50% First Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 3.50% first lien notes due February 15, 2029 (the “3.50% First Lien Senior Notes due 2029”). No principal payments are due until maturity and interest is paid semi-annually. The proceeds from the offering of the 3.50% First Lien Senior Notes due 2029, together with cash on hand, were used to redeem $725 million of the 4.25% First Lien Senior Notes due 2024 and pay related redemption premiums, fees and expenses. In connection with the issuance of the 3.50% First Lien Senior Notes due 2029, we capitalized approximately $7 million in debt issuance costs. In connection with the redemption of the 4.25% First Lien Senior Notes due 2024, we recorded a loss on early extinguishment of debt of $19 million that primarily reflects the payment of premiums to redeem the notes and the write-off of unamortized debt issuance costs. Obligations under the 3.50% First Lien Senior Notes due 2029 are guaranteed on a senior secured basis, jointly and severally, by the Note Guarantors. The 3.50% First Lien Senior Notes due 2029 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 of the Credit Facilities. Our 3.50% First Lien Senior Notes due 2029 may be redeemed in whole or in part, on or after February 15, 2024 at the redemption prices set forth in the 3.50% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 3.50% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 4.375% Second Lien Senior Notes due 2028 On November 19, 2019, the Borrowers entered into an indenture (the “4.375% Second Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 4.375% second lien senior notes due January 15, 2028 (the “4.375% Second Lien Senior Notes due 2028”). No principal payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 4.375% Second Lien Senior Notes due 2028, together with cash on hand, were used to repay $720 million of the Term Loan B outstanding aggregate principal balance and to pay related fees and expenses in connection with the fourth amendment to our credit agreement. In connection with the issuance of the 4.375% Second Lien Senior Notes due 2028, we capitalized approximately $6 million in debt issuance costs. Obligations under the 4.375% Second Lien Senior Notes due 2028 are guaranteed on a second priority senior secured basis, jointly and severally, by the Note Guarantors. The 4.375% Second Lien Senior Notes due 2028 are second lien senior secured obligations and rank equal in right of payment with all of the existing and future senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities, and effectively subordinated to all of the existing and future first lien senior debt of the Borrowers and Note Guarantors. Our 4.375% Second Lien Senior Notes due 2028 may be redeemed in whole or in part, on or after November 15, 2022 at the redemption prices set forth in the 4.375% Second Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 4.375% Second Lien Senior Notes Indenture also contains redemption provisions related to tender offers, change of control and equity offerings, among others. 4.00% Second Lien Senior Notes due 2030 During 2020, the Borrowers entered into an indenture (the “4.00% Second Lien Senior Notes Indenture”) in connection with the issuance of $2,900 million of 4.00% second lien notes due October 15, 2030 (the “4.00% Second Lien Senior Notes due 2030”). No principal payments are due until maturity and interest is paid semi-annually. The proceeds from the offering of the 4.00% Second Lien Senior Notes due 2030 were used to redeem the entire outstanding principal balance of $2,800 million of 5.00% second lien senior notes due October 15, 2025 (the “5.00% Second Lien Senior Notes due 2025”), pay related redemption premiums, fees and expenses. In connection with the issuance of the 4.00% Second Lien Senior Notes due 2030, we capitalized approximately $26 million in debt issuance costs. In connection with the full redemption of the 5.00% Second Lien Senior Notes due 2025, we recorded a loss on early extinguishment of debt of $79 million that primarily reflects the payment of premiums to redeem the notes and the write-off of unamortized debt issuance costs. Obligations under the 4.00% Second Lien Senior Notes due 2030 are guaranteed on a second priority senior secured basis, jointly and severally, by the Note Guarantors. The 4.00% Second Lien Senior Notes due 2030 are second lien senior secured obligations and rank equal in right of payment will all of the existing and future senior debt of the Borrowers and Note Guarantors and effectively subordinated to all of the existing and future first lien senior debt of the Borrowers and Note Guarantors. Our 4.00% Second Lien Senior Notes due 2030 may be redeemed in whole or in part, on or after October 15, 2025 at the redemption prices set forth in the 4.00% Second Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 4.00% Second Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. Restrictions and Covenants Our Credit Facilities, as well as the 3.875% First Lien Senior Notes Indenture, 5.75% First Lien Senior Notes Indenture, 3.50% First Lien Senior Notes Indenture, 4.375% Second Lien Senior Notes Indenture and 4.00% Second Lien Senior Notes Indenture (all together the “Senior Notes Indentures”) contain a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability and the ability of certain of our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers, consolidations, liquidations and dissolutions; sell assets; pay dividends and make other payments in respect of capital stock; make investments, loans and advances; pay or modify the terms of certain indebtedness; and engage in certain transactions with affiliates. In addition, under the Credit Facilities, the Borrowers are not permitted to exceed a first lien senior secured leverage ratio of 6.50 to 1.00 when, as of the end of any fiscal quarter beginning with the first fiscal quarter of 2020, (1) any amounts are outstanding under the Term Loan A and/or (2) the sum of (i) the amount of letters of credit outstanding exceeding $50 million (other than those that are cash collateralized); (ii) outstanding amounts under the Revolving Credit Facility and (iii) outstanding amounts of swing line loans, exceeds 30.0% of the commitments under the Revolving Credit Facility. The Fifth Amendment provides that for periods ended September 30, 2021 and December 31, 2021, to determine compliance with the net first lien senior secured leverage ratio, we are permitted to annualize the Adjusted EBITDA (as defined in the Credit Agreement) for the three months ended September 30, 2021 and six months ended December 31, 2021, respectively, in lieu of calculating the ratio based on Adjusted EBITDA for the prior four quarters. The restrictions under the Credit Facilities and the Senior Notes Indentures have resulted in substantially all of our consolidated assets being restricted. As of December 31, 2021, we were in compliance with applicable financial debt covenants under the Credit Facilities and the Senior Notes Indentures and there were no limitations on our ability to draw on the remaining availability under our Revolving Credit Facility. 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 December 31, 2021, we had outstanding C$214 million under the TH Facility with a weighted average interest rate of 1.85%. RE Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of $50 million with a maturity date of October 12, 2028 (the “RE Facility”). The interest rate applicable to the RE Facility is, at our option, either (i) a base rate, subject to a floor of 0.50%, plus an applicable margin of 0.50% or (ii) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a margin based on duration), subject to a floor of 0.00%, plus an applicable margin of 1.50%. Obligations under the RE Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the RE Facility are secured by certain parcels of real estate. As of December 31, 2021, we had no amounts outstanding under the RE Facility. Debt Issuance Costs During 2021, 2020 and 2019, we incurred aggregate deferred financing costs of $19 million, $43 million and $50 million, respectively. Loss on Early Extinguishment of Debt During 2021, we recorded an $11 million loss on early extinguishment of debt that primarily reflects the payment of redemption premiums and the write-off of unamortized debt issuance costs in connection with the redemption of the remaining $775 million principal amount outstanding of the 4.25% First Lien Senior Notes due 2024. During 2020, we recorded a $98 million loss on early extinguishment of debt that primarily reflects the payment of premiums and the write-off of unamortized debt issuance costs in connection with the full redemption of the 5.00% Second Lien Senior Notes due 2025 and the partial redemption of the 4.25% First Lien Senior Notes due 2024. During 2019, we recorded a $23 million loss on early extinguishment of debt, which primarily reflects the write-off of unamortized debt issuance costs and discounts in connection with the prepayment and refinancing of the Term Loan B and the redemption of the entire outstanding principal balance of the 4.625% first lien secured notes due January 15, 2022. Maturities The aggregate maturities of our long-term debt as of December 31, 2021 are as follows (in millions): Year Ended December 31, Principal Amount 2022 $ 62 2023 98 2024 108 2025 750 2026 6,148 Thereafter 5,950 Total $ 13,116 Interest Expense, net Interest expense, net consists of the following (in millions): 2021 2020 2019 Debt (a) $ 461 $ 471 $ 503 Finance lease obligations 20 20 20 Amortization of deferred financing costs and debt issuance discount 27 26 29 Interest income (3) (9) (20) Interest expense, net $ 505 $ 508 $ 532 (a) Amount includes $45 million, $69 million and $70 million benefit during 2021, 2020 and 2019, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 12, Derivatives . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2021, we leased or subleased 5,069 restaurant properties to franchisees and 164 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. We transitioned to ASC 842 on January 1, 2019 on a modified retrospective basis using the effective date transition method. Our transition to ASC 842 represents a change in accounting principle. The $21 million cumulative effect of our transition to ASC 842 is reflected as an adjustment to January 1, 2019 Partners' capital. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2021 2020 Land $ 899 $ 892 Buildings and improvements 1,180 1,146 Restaurant equipment 18 19 2,097 2,057 Accumulated depreciation and amortization (587) (534) Property and equipment leased, net $ 1,510 $ 1,523 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2021 2020 Future rents to be received: Future minimum lease receipts $ 113 $ 87 Contingent rents (a) 7 12 Estimated unguaranteed residual value 5 7 Unearned income (40) (34) 85 72 Current portion included within accounts receivables (5) (6) Net investment in property leased to franchisees $ 80 $ 66 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. During 2021 and 2020, we offered rent relief programs for eligible TH and BK franchisees who lease property from us, under which we temporarily converted the rent structure from a combination of fixed plus variable rent to 100% variable rent (the “rent relief programs”). The rent relief program concluded for BK franchisees during the three months ended September 30, 2020 and the rent relief program was extended through the end of 2021 for eligible TH franchisees. In April 2020, the FASB staff issued interpretive guidance that permits entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842, as though enforceable rights and obligations for those concessions existed. We elected to apply this interpretive guidance to the rent relief programs while in effect. As such, reductions in rents arising from the rent relief programs are recognized as reductions in variable lease payments. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2021 2020 2019 Rental income: Minimum lease payments $ 455 $ 445 $ 448 Variable lease payments 329 262 370 Amortization of favorable and unfavorable income lease contracts, net 3 6 7 Subtotal - lease income from operating leases 787 713 825 Earned income on direct financing and sales-type leases 6 5 8 Total property revenues $ 793 $ 718 $ 833 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2021 2020 2019 Operating lease cost $ 202 $ 199 $ 210 Operating lease variable lease cost 193 177 198 Finance lease cost: Amortization of right-of-use assets 31 29 27 Interest on lease liabilities 20 20 20 Sublease income (587) (534) (631) Total lease cost (income) $ (141) $ (109) $ (176) Lease Term and Discount Rate as of December 31, 2021 and 2020 As of December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 10.1 years 10.5 years Finance leases 11.4 years 11.3 years Weighted-average discount rate: Operating leases 5.5 % 5.9 % Finance leases 6.0 % 6.5 % Other Information for 2021, 2020 and 2019 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 200 $ 200 $ 194 Operating cash flows from finance leases $ 20 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 29 $ 26 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 52 $ 59 $ 18 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 118 $ 163 As of December 31, 2021, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2022 $ 8 $ 404 $ 52 $ 197 2023 8 382 50 186 2024 7 350 48 173 2025 7 316 45 158 2026 7 278 41 140 Thereafter 76 1,374 262 675 Total minimum receipts / payments $ 113 $ 3,104 498 1,529 Less amount representing interest (131) (319) Present value of minimum lease payments 367 1,210 Current portion of lease obligations (34) (140) Long-term portion of lease obligations $ 333 $ 1,070 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,953 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2021, we leased or subleased 5,069 restaurant properties to franchisees and 164 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. We transitioned to ASC 842 on January 1, 2019 on a modified retrospective basis using the effective date transition method. Our transition to ASC 842 represents a change in accounting principle. The $21 million cumulative effect of our transition to ASC 842 is reflected as an adjustment to January 1, 2019 Partners' capital. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2021 2020 Land $ 899 $ 892 Buildings and improvements 1,180 1,146 Restaurant equipment 18 19 2,097 2,057 Accumulated depreciation and amortization (587) (534) Property and equipment leased, net $ 1,510 $ 1,523 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2021 2020 Future rents to be received: Future minimum lease receipts $ 113 $ 87 Contingent rents (a) 7 12 Estimated unguaranteed residual value 5 7 Unearned income (40) (34) 85 72 Current portion included within accounts receivables (5) (6) Net investment in property leased to franchisees $ 80 $ 66 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. During 2021 and 2020, we offered rent relief programs for eligible TH and BK franchisees who lease property from us, under which we temporarily converted the rent structure from a combination of fixed plus variable rent to 100% variable rent (the “rent relief programs”). The rent relief program concluded for BK franchisees during the three months ended September 30, 2020 and the rent relief program was extended through the end of 2021 for eligible TH franchisees. In April 2020, the FASB staff issued interpretive guidance that permits entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842, as though enforceable rights and obligations for those concessions existed. We elected to apply this interpretive guidance to the rent relief programs while in effect. As such, reductions in rents arising from the rent relief programs are recognized as reductions in variable lease payments. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2021 2020 2019 Rental income: Minimum lease payments $ 455 $ 445 $ 448 Variable lease payments 329 262 370 Amortization of favorable and unfavorable income lease contracts, net 3 6 7 Subtotal - lease income from operating leases 787 713 825 Earned income on direct financing and sales-type leases 6 5 8 Total property revenues $ 793 $ 718 $ 833 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2021 2020 2019 Operating lease cost $ 202 $ 199 $ 210 Operating lease variable lease cost 193 177 198 Finance lease cost: Amortization of right-of-use assets 31 29 27 Interest on lease liabilities 20 20 20 Sublease income (587) (534) (631) Total lease cost (income) $ (141) $ (109) $ (176) Lease Term and Discount Rate as of December 31, 2021 and 2020 As of December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 10.1 years 10.5 years Finance leases 11.4 years 11.3 years Weighted-average discount rate: Operating leases 5.5 % 5.9 % Finance leases 6.0 % 6.5 % Other Information for 2021, 2020 and 2019 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 200 $ 200 $ 194 Operating cash flows from finance leases $ 20 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 29 $ 26 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 52 $ 59 $ 18 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 118 $ 163 As of December 31, 2021, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2022 $ 8 $ 404 $ 52 $ 197 2023 8 382 50 186 2024 7 350 48 173 2025 7 316 45 158 2026 7 278 41 140 Thereafter 76 1,374 262 675 Total minimum receipts / payments $ 113 $ 3,104 498 1,529 Less amount representing interest (131) (319) Present value of minimum lease payments 367 1,210 Current portion of lease obligations (34) (140) Long-term portion of lease obligations $ 333 $ 1,070 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,953 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2021, we leased or subleased 5,069 restaurant properties to franchisees and 164 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. We transitioned to ASC 842 on January 1, 2019 on a modified retrospective basis using the effective date transition method. Our transition to ASC 842 represents a change in accounting principle. The $21 million cumulative effect of our transition to ASC 842 is reflected as an adjustment to January 1, 2019 Partners' capital. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2021 2020 Land $ 899 $ 892 Buildings and improvements 1,180 1,146 Restaurant equipment 18 19 2,097 2,057 Accumulated depreciation and amortization (587) (534) Property and equipment leased, net $ 1,510 $ 1,523 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2021 2020 Future rents to be received: Future minimum lease receipts $ 113 $ 87 Contingent rents (a) 7 12 Estimated unguaranteed residual value 5 7 Unearned income (40) (34) 85 72 Current portion included within accounts receivables (5) (6) Net investment in property leased to franchisees $ 80 $ 66 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. During 2021 and 2020, we offered rent relief programs for eligible TH and BK franchisees who lease property from us, under which we temporarily converted the rent structure from a combination of fixed plus variable rent to 100% variable rent (the “rent relief programs”). The rent relief program concluded for BK franchisees during the three months ended September 30, 2020 and the rent relief program was extended through the end of 2021 for eligible TH franchisees. In April 2020, the FASB staff issued interpretive guidance that permits entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842, as though enforceable rights and obligations for those concessions existed. We elected to apply this interpretive guidance to the rent relief programs while in effect. As such, reductions in rents arising from the rent relief programs are recognized as reductions in variable lease payments. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2021 2020 2019 Rental income: Minimum lease payments $ 455 $ 445 $ 448 Variable lease payments 329 262 370 Amortization of favorable and unfavorable income lease contracts, net 3 6 7 Subtotal - lease income from operating leases 787 713 825 Earned income on direct financing and sales-type leases 6 5 8 Total property revenues $ 793 $ 718 $ 833 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2021 2020 2019 Operating lease cost $ 202 $ 199 $ 210 Operating lease variable lease cost 193 177 198 Finance lease cost: Amortization of right-of-use assets 31 29 27 Interest on lease liabilities 20 20 20 Sublease income (587) (534) (631) Total lease cost (income) $ (141) $ (109) $ (176) Lease Term and Discount Rate as of December 31, 2021 and 2020 As of December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 10.1 years 10.5 years Finance leases 11.4 years 11.3 years Weighted-average discount rate: Operating leases 5.5 % 5.9 % Finance leases 6.0 % 6.5 % Other Information for 2021, 2020 and 2019 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 200 $ 200 $ 194 Operating cash flows from finance leases $ 20 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 29 $ 26 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 52 $ 59 $ 18 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 118 $ 163 As of December 31, 2021, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2022 $ 8 $ 404 $ 52 $ 197 2023 8 382 50 186 2024 7 350 48 173 2025 7 316 45 158 2026 7 278 41 140 Thereafter 76 1,374 262 675 Total minimum receipts / payments $ 113 $ 3,104 498 1,529 Less amount representing interest (131) (319) Present value of minimum lease payments 367 1,210 Current portion of lease obligations (34) (140) Long-term portion of lease obligations $ 333 $ 1,070 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,953 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2021, we leased or subleased 5,069 restaurant properties to franchisees and 164 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. We transitioned to ASC 842 on January 1, 2019 on a modified retrospective basis using the effective date transition method. Our transition to ASC 842 represents a change in accounting principle. The $21 million cumulative effect of our transition to ASC 842 is reflected as an adjustment to January 1, 2019 Partners' capital. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2021 2020 Land $ 899 $ 892 Buildings and improvements 1,180 1,146 Restaurant equipment 18 19 2,097 2,057 Accumulated depreciation and amortization (587) (534) Property and equipment leased, net $ 1,510 $ 1,523 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2021 2020 Future rents to be received: Future minimum lease receipts $ 113 $ 87 Contingent rents (a) 7 12 Estimated unguaranteed residual value 5 7 Unearned income (40) (34) 85 72 Current portion included within accounts receivables (5) (6) Net investment in property leased to franchisees $ 80 $ 66 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. During 2021 and 2020, we offered rent relief programs for eligible TH and BK franchisees who lease property from us, under which we temporarily converted the rent structure from a combination of fixed plus variable rent to 100% variable rent (the “rent relief programs”). The rent relief program concluded for BK franchisees during the three months ended September 30, 2020 and the rent relief program was extended through the end of 2021 for eligible TH franchisees. In April 2020, the FASB staff issued interpretive guidance that permits entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842, as though enforceable rights and obligations for those concessions existed. We elected to apply this interpretive guidance to the rent relief programs while in effect. As such, reductions in rents arising from the rent relief programs are recognized as reductions in variable lease payments. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2021 2020 2019 Rental income: Minimum lease payments $ 455 $ 445 $ 448 Variable lease payments 329 262 370 Amortization of favorable and unfavorable income lease contracts, net 3 6 7 Subtotal - lease income from operating leases 787 713 825 Earned income on direct financing and sales-type leases 6 5 8 Total property revenues $ 793 $ 718 $ 833 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2021 2020 2019 Operating lease cost $ 202 $ 199 $ 210 Operating lease variable lease cost 193 177 198 Finance lease cost: Amortization of right-of-use assets 31 29 27 Interest on lease liabilities 20 20 20 Sublease income (587) (534) (631) Total lease cost (income) $ (141) $ (109) $ (176) Lease Term and Discount Rate as of December 31, 2021 and 2020 As of December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 10.1 years 10.5 years Finance leases 11.4 years 11.3 years Weighted-average discount rate: Operating leases 5.5 % 5.9 % Finance leases 6.0 % 6.5 % Other Information for 2021, 2020 and 2019 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 200 $ 200 $ 194 Operating cash flows from finance leases $ 20 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 29 $ 26 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 52 $ 59 $ 18 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 118 $ 163 As of December 31, 2021, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2022 $ 8 $ 404 $ 52 $ 197 2023 8 382 50 186 2024 7 350 48 173 2025 7 316 45 158 2026 7 278 41 140 Thereafter 76 1,374 262 675 Total minimum receipts / payments $ 113 $ 3,104 498 1,529 Less amount representing interest (131) (319) Present value of minimum lease payments 367 1,210 Current portion of lease obligations (34) (140) Long-term portion of lease obligations $ 333 $ 1,070 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,953 million due in the future under non-cancelable subleases |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes, classified by source of income (loss), is as follows (in millions): 2021 2020 2019 Canadian $ 457 $ 200 $ 685 Foreign 906 616 767 Income before income taxes $ 1,363 $ 816 $ 1,452 Income tax (benefit) expense attributable to income from continuing operations consists of the following (in millions): 2021 2020 2019 Current: Canadian $ 16 $ 45 $ 47 U.S. Federal (10) 125 122 U.S. state, net of federal income tax benefit 25 26 20 Other Foreign 84 78 94 $ 115 $ 274 $ 283 Deferred: Canadian $ 32 $ (67) $ 43 U.S. Federal (37) (82) 8 U.S. state, net of federal income tax benefit (7) (27) — Other Foreign 7 (32) 7 $ (5) $ (208) $ 58 Income tax expense (benefit) $ 110 $ 66 $ 341 The statutory rate reconciles to the effective income tax rate as follows: 2021 2020 2019 Statutory rate 26.5 % 26.5 % 26.5 % Costs and taxes related to foreign operations 3.5 9.6 4.7 Foreign exchange gain (loss) — 0.5 0.1 Foreign tax rate differential (13.9) (15.6) (10.8) Change in valuation allowance 1.1 1.2 0.5 Change in accrual for tax uncertainties (7.4) 3.9 5.0 Intercompany financing (3.5) (6.1) (2.4) Impact of Tax Act — (7.8) (0.1) Swiss Tax Reform — (5.1) 1.1 Benefit from stock option exercises (0.8) (0.3) (2.2) Litigation settlements and reserves 1.4 — — Other 1.2 1.2 1.1 Effective income tax rate 8.1 % 8.0 % 23.5 % In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that significantly revised the U.S. tax code. During 2020, various guidance was issued by the U.S. tax authorities relating to the Tax Act and, after review of such guidance, we recorded a favorable adjustment to our deferred tax assets of $64 million related to a tax attribute carryforward, which decreased our 2020 effective tax rate by 7.8%. In a referendum held on May 19, 2019, Swiss voters adopted the Federal Act on Tax Reform and AVS Financing (“TRAF”), under which certain long-standing preferential cantonal tax regimes were abolished effective January 1, 2020, which the canton of Zug formally adopted in November 2019. Company subsidiaries in the canton of Zug were subjected to TRAF and therefore the TRAF impacted our consolidated results of operations during 2020 and 2019. In 2020, a deferred tax asset was recorded due to an election made under TRAF by one of our Swiss subsidiaries and, in 2019, our Swiss company subsidiaries remeasured their deferred tax assets and liabilities based on new future tax rates expected under TRAF. The amounts impacting income tax expense for the effects of the changes from the TRAF were approximately $41 million in 2020 which decreased our 2020 effective tax rate by approximately 5.1%, and approximately $16 million in 2019 which increased our 2019 effective tax rate by approximately 1.1%. Companies subject to the Global Intangible Low-Taxed Income provision (GILTI) have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for outside basis temporary differences expected to reverse as GILTI. We have elected to account for GILTI as a period cost. Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in millions): 2021 2020 2019 Income tax (benefit) expense from continuing operations $ 110 $ 66 $ 341 Cash flow hedge in accumulated other comprehensive income (loss) 72 (64) (23) Net investment hedge in accumulated other comprehensive income (loss) (15) (60) (32) Foreign Currency Translation in accumulated other comprehensive income (loss) (4) 12 — Pension liability in accumulated other comprehensive income (loss) 3 (3) (1) Total $ 166 $ (49) $ 285 The significant components of deferred income tax (benefit) expense attributable to income from continuing operations are as follows (in millions): 2021 2020 2019 Deferred income tax (benefit) expense $ (22) $ (230) $ 30 Change in valuation allowance 14 22 7 Change in effective Canadian income tax rate — — (1) Change in effective U.S. state income tax rate 3 1 6 Change in effective foreign income tax rate — (1) 16 Total $ (5) $ (208) $ 58 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in millions): As of December 31, 2021 2020 Deferred tax assets: Accounts and notes receivable $ 4 $ 6 Accrued employee benefits 48 54 Leases 115 114 Operating lease liabilities 317 323 Liabilities not currently deductible for tax 346 310 Tax loss and credit carryforwards 517 547 Derivatives 164 225 Other (1) 9 Total gross deferred tax assets 1,510 1,588 Valuation allowance (356) (364) Net deferred tax assets 1,154 1,224 Less deferred tax liabilities: Property and equipment, principally due to differences in depreciation 15 35 Intangible assets 1,751 1,747 Leases 129 114 Operating lease assets 295 311 Statutory impairment 29 30 Outside basis difference 38 46 Total gross deferred tax liabilities 2,257 2,283 Net deferred tax liability $ 1,103 $ 1,059 The valuation allowance had a net decrease of $8 million during 2021 primarily due to the change in estimates related to derivatives and the utilization of foreign tax credits and capital losses. Changes in the valuation allowance are as follows (in millions): 2021 2020 2019 Beginning balance $ 364 $ 329 $ 325 Change in estimates recorded to deferred income tax expense 14 19 8 Changes in losses and credits — 3 (2) (Reductions) additions related to other comprehensive income (22) 13 (2) Ending balance $ 356 $ 364 $ 329 The gross amount and expiration dates of operating loss and tax credit carry-forwards as of December 31, 2021 are as follows (in millions): Amount Expiration Date Canadian net operating loss carryforwards $ 728 2036-2041 Canadian capital loss carryforwards 866 Indefinite Canadian tax credits 3 2023-2036 U.S. state net operating loss carryforwards 680 2022-2041 U.S. capital loss carryforwards 16 2040 U.S. foreign tax credits 112 2022-2031 Other foreign net operating loss carryforwards 207 Indefinite Other foreign net operating loss carryforwards 77 2022-2038 Other foreign capital loss carryforward 30 Indefinite Total $ 2,719 We are generally permanently reinvested on any potential outside basis differences except for unremitted earning and profits and thus do not record a deferred tax liability for such outside basis differences. To the extent of unremitted earning and profits, we generally review various factors including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity and expected cash requirements to fund our various obligations and record deferred taxes to the extent we expect to distribute. We will continue to monitor available evidence and our plans for foreign earnings and expect to continue to provide any applicable deferred taxes based on the tax liability or withholding taxes that would be due upon repatriation of amounts not considered permanently reinvested. We had $437 million and $497 million of unrecognized tax benefits at December 31, 2021 and December 31, 2020, respectively, which if recognized, would favorably affect the effective income tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Beginning balance $ 497 $ 506 $ 441 Additions for tax positions related to the current year 9 9 9 Additions for tax positions of prior years 23 7 56 Reductions for tax positions of prior year (5) (25) — Additions for settlement 7 — — Reductions due to statute expiration (94) — — Ending balance $ 437 $ 497 $ 506 Although the timing of the resolution, settlement, and closure of any audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. During the twelve months beginning January 1, 2022, it is reasonably possible we will reduce unrecognized tax benefits by up to approximately $328 million due to the expiration of statutes of limitations, anticipated closure of various tax matters currently under examination, and settlements with tax authorities all being possibly impacted in multiple jurisdictions. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of accrued interest and penalties was $121 million and $123 million at December 31, 2021 and 2020, respectively. Potential interest and penalties associated with uncertain tax positions in various jurisdictions recognized was $2 million during 2021, $31 million during 2020 and $41 million during 2019. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. We file income tax returns with Canada and its provinces and territories. Generally, we are subject to routine examinations by the Canada Revenue Agency (“CRA”). The CRA is conducting examinations of the 2015 through 2016 taxation years. Additionally, income tax returns filed with various provincial jurisdictions are generally open to examination for periods up to six years subsequent to the filing of the respective return. We also file income tax returns, including returns for our subsidiaries, with U.S. federal, U.S. state, and other foreign jurisdictions. We are subject to routine examination by taxing authorities in the U.S. jurisdictions, as well as other foreign tax jurisdictions. None of the other foreign jurisdictions have been individually material. Taxable years 2014 through 2017 for our U.S. companies for U.S. federal income tax purposes closed in 2021 without material adjustments. Prior taxable years of such U.S. companies are closed for U.S. federal income tax purposes. We have various U.S. state and other foreign income tax returns in the process of examination. From time to time, these audits result in proposed assessments where the ultimate resolution may result in owing additional taxes. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 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 and derivatives designated as net investment hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps At December 31, 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 Term Loan Facilities, including any subsequent refinancing or replacement of the Term Loan Facilities, beginning August 31, 2021 through the termination date of October 31, 2028. Additionally, at December 31, 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 2021, we extended the maturity of our $3,500 million receive-variable, pay-fixed interest rate swaps. 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 $143 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 connection with this net unrealized loss in AOCI as of December 31, 2021 that we expect to be reclassified into interest expense within the next 12 months is $28 million. We had previously extended the term of our $3,500 million receive-variable, pay-fixed interest rate swaps in 2019 to align the maturity date of the 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 connection with this net unrealized loss in AOCI as of December 31, 2021 that we expect to be reclassified into interest expense within the next 12 months is $50 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 December 31, 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 December 31, 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 December 31, 2021, we had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest payments on the Euro notional amount of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional amount 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 December 31, 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 and $150 million, entered during 2021, through the maturity date of October 31, 2028. 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 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 December 31, 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 $171 million with maturities to February 2023. 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 consolidated balance sheets (in millions): Gain or (Loss) Recognized in 2021 2020 2019 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 132 $ (333) $ (102) Forward-currency contracts $ — $ (2) $ (4) Derivatives designated as net investment hedges Cross-currency rate swaps $ 96 $ (302) $ (118) (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 AOCI into 2021 2020 2019 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (125) $ (102) $ (26) Forward-currency contracts Cost of sales $ (7) $ 2 $ 5 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) 2021 2020 2019 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 45 $ 69 $ 70 Fair Value as of 2021 2020 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 2 $ — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 23 — Other assets, net Total assets at fair value $ 25 $ — Liabilities: Derivatives designated as cash flow hedges Interest rate $ 220 $ 430 Other liabilities, net Foreign currency — 5 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 355 434 Other liabilities, net Total liabilities at fair value $ 575 $ 869 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Pursuant to the terms of the partnership agreement, RBI, as the holder of Class A common units, is entitled to distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Partnership exchangeable units are entitled to receive distributions from Partnership in an amount per unit equal to the dividend payable by RBI on each RBI common share. Additionally, if RBI proposes to redeem, repurchase or otherwise acquire any RBI common shares, the partnership agreement requires that Partnership, immediately prior to such redemption, repurchase or acquisition, make a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such redemption, repurchase or acquisition, as the case may be. Each holder of a Partnership exchangeable unit is entitled to vote in respect of matters on which holders of RBI common shares are entitled to vote through one special voting share of RBI. Since December 12, 2015, a holder of a Partnership exchangeable unit may require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units for RBI common shares at a ratio of one common share for each Partnership exchangeable unit, subject to RBI’s right as the general partner of Partnership, in its sole discretion, to deliver a cash payment in lieu of RBI common shares. If RBI elects to make a cash payment in lieu of issuing common shares, the amount of the payment will be the weighted average trading price of the RBI common shares on the New York Stock Exchange for the 20 consecutive trading days ending on the last business day prior to the exchange date. During 2021, Partnership exchanged 10,119,880 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging 10,119,880 Partnership exchangeable units for the same number of newly issued RBI common shares. During 2020, Partnership exchanged 10,393,861 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by repurchasing 6,757,692 Partnership exchangeable units for approximately $380 million in cash and exchanging 3,636,169 Partnership exchangeable units for the same number of newly issued RBI common shares. During 2019, Partnership exchanged 42,016,392 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging 42,016,392 Partnership exchangeable units for the same number of newly issued RBI common shares. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partner’s capital in our consolidated balance sheets in an amount equal to the market value of the newly issued RBI common shares and a reduction to the Partnership exchangeable units balance within partner’s capital of our consolidated balance sheets in an amount equal to the cash paid by Partnership and the market value of the newly issued RBI common shares. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit was cancelled concurrently with the exchange. RBI Share Repurchase On July 28, 2021, the RBI Board of Directors approved a share repurchase program that allows RBI to purchase up to $1,000 million of RBI common shares until August 10, 2023. During 2021, RBI repurchased and cancelled 9,247,648 common shares for $551 million. Pursuant to the terms of the partnership agreement, Partnership made a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such share repurchases. Accumulated Other Comprehensive Income (Loss) The following table displays the change in the components of AOCI (in millions): Derivatives Pensions Foreign Accumulated Balances at December 31, 2018 $ 454 $ (27) $ (1,864) $ (1,437) Foreign currency translation adjustment — — 409 409 Net change in fair value of derivatives, net of tax (163) — — (163) Amounts reclassified to earnings of cash flow hedges, net of tax 15 — — 15 Pension and post-retirement benefit plans, net of tax — (2) — (2) Balances at December 31, 2019 $ 306 $ (29) $ (1,455) $ (1,178) Foreign currency translation adjustment — — 332 332 Net change in fair value of derivatives, net of tax (486) — — (486) Amounts reclassified to earnings of cash flow hedges, net of tax 73 — — 73 Pension and post-retirement benefit plans, net of tax — (16) — (16) Balances at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — (67) (67) Net change in fair value of derivatives, net of tax 207 — — 207 Amounts reclassified to earnings of cash flow hedges, net of tax 96 — — 96 Pension and post-retirement benefit plans, net of tax — 15 — 15 Balances at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Share-based compensation expense associated with the participation of Partnership and its subsidiaries in RBI’s share-based compensation plans is recognized in Partnership’s Financial Statements. RBI's Amended and Restated 2014 Omnibus Incentive Plan (the “Omnibus Plan”) provides for the grant of awards to employees, directors, consultants and other persons who provide services to RBI and its affiliates. RBI also has some outstanding awards under legacy plans for BK and TH, that were assumed in connection with the merger and amalgamation of those entities within the RBI group. No new awards may be granted under these legacy BK plans or legacy TH plans. RBI is currently issuing awards under the Omnibus Plan and the number of shares available for issuance under such plan as of December 31, 2021 was 10,122,551. The Omnibus Plan permits the grant of several types of awards with respect to RBI common shares, including stock options, time-vested RSUs, and performance-based RSUs, which may include RBI and/or individual performance based-vesting conditions. Under the terms of the Omnibus Plan, RSUs are entitled to dividend equivalents, unless otherwise noted. Dividend equivalents are not distributed unless the related awards vest. Upon vesting, the amount of the dividend equivalent, which is distributed in additional RSUs, except in the case of RSUs awarded to non-management members of RBI's board of directors, is equal to the equivalent of the aggregate dividends declared on common shares during the period from the date of grant of the award compounded until the date the shares underlying the award are delivered. Stock option awards are granted with an exercise price or market value equal to the closing price of RBI's common shares on the trading day preceding the date of grant. RBI satisfies stock option exercises through the issuance of authorized but previously unissued common shares. New stock option grants generally cliff vest 5 years from the original grant date, provided the employee is continuously employed by RBI or one of our affiliates, and the stock options expire 10 years following the grant date. Additionally, if RBI terminates the employment of a stock option holder without cause prior to the vesting date, or if the employee retires or becomes disabled, the employee will become vested in the number of stock options as if the stock options vested 20% on each anniversary of the grant date. If the employee dies, the employee will become vested in the number of stock options as if the stock options vested 20% on the first anniversary of the grant date, 40% on the second anniversary of the grant date and 100% on the third anniversary of the grant date. If an employee is terminated with cause or resigns before vesting, all stock options are forfeited. If there is an event such as a return of capital or dividend that is determined to be dilutive, the exercise price of the awards will be adjusted accordingly. Share-based compensation expense consists of the following for the periods presented (in millions): 2021 2020 2019 Total share-based compensation expense - Stock options and RSUs (a)(b) $ 88 $ 74 $ 68 (a) Includes $2 million, $3 million, and $4 million due to modification of awards in 2021, 2020 and 2019, respectively. (b) Generally classified as general and administrative expenses in the consolidated statements of operations. As of December 31, 2021, total unrecognized compensation cost related to share-based compensation arrangements was $189 million and is expected to be recognized over a weighted-average period of approximately 2.6 years. The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards at the grant date: 2021 2020 2019 Risk-free interest rate 1.29% 1.29% 1.82% Expected term (in years) 5.88 5.88 6.19 Expected volatility 23.9% 23.9% 25.5% Expected dividend yield 3.14% 3.14% 3.09% The risk-free interest rate was based on the U.S. Treasury or Canadian Sovereign bond yield with a remaining term equal to the expected option life assumed at the date of grant. The expected term was calculated based on the analysis of a five-year vesting period coupled with RBI's expectations of exercise activity. Expected volatility was based on the historical and implied equity volatility of RBI and a review of the equity volatilities of publicly-traded guideline companies. The expected dividend yield is based on the annual dividend yield at the time of grant. The following is a summary of stock option activity under our plans for the year ended December 31, 2021: Total Number of Weighted Aggregate Weighted Outstanding at January 1, 2021 8,202 $ 51.86 Granted 15 $ 65.11 Exercised (1,594) $ 37.83 Forfeited (416) $ 63.00 Outstanding at December 31, 2021 6,207 $ 54.80 $ 48,468 5.6 Exercisable at December 31, 2021 1,961 $ 39.68 $ 41,255 3.3 Vested or expected to vest at December 31, 2021 5,671 $ 54.10 $ 47,650 5.5 (a) The intrinsic value represents the amount by which the fair value of RBI's stock exceeds the option exercise price at December 31, 2021. The weighted-average grant date fair value per stock option granted was $10.15, $10.38, and $11.83 during 2021, 2020 and 2019, respectively. The total intrinsic value of stock options exercised was $46 million during 2021, $55 million during 2020, and $200 million during 2019. The fair value of the time-vested RSUs and performance-based RSUs is based on the closing price of RBI’s common shares on the trading day preceding the date of grant. During 2021, RBI granted total shareholder return (“TSR”) performance-based RSUs that vest over a three year period based on the achievement of contractually defined total RBI shareholder return targets with respect to the S&P 500 Index. The fair value of the TSR awards was based on a Monte Carlo Simulation valuation model and we expense these market condition awards over the vesting period regardless of the value that the award recipients ultimately receive. Time-vested RSUs and performance-based RSUs awarded prior to 2021 generally cliff vest five years from the original grant date. Time-vested RSUs granted in 2021 generally vest 25% per year over four years and performance-based RSUs granted in 2021 cliff vest three years from the original grant date. RBI has awarded a limited number of time-vested RSUs that proportionally vest over a period shorter than four years. Time-vested RSUs are expensed over the vesting period. Performance-based RSUs are expensed over the vesting period, based upon the probability that the performance target will be met. RBI grants fully vested RSUs, with dividend equivalent rights that accrue in cash, to non-employee members of our board of directors in lieu of a cash retainer and committee fees. All such RSUs will settle and common shares of RBI will be issued upon termination of service by the board member. Starting in 2021, the time-vested RSUs generally vest 25% per year on December 31 st over four years from the grant date and performance-based RSUs generally cliff vest three years from the grant date (the starting date for the applicable vesting period is referred to as the “Anniversary Date”). For grants prior to 2021, if the employee is terminated for any reason within the first two years of the Anniversary Date, 100% of the time-vested RSUs granted will be forfeited. If we terminate the employment of a time-vested RSU holder without cause two years after the Anniversary Date, or if the employee retires, the employee will become vested in the number of time-vested RSUs as if the time-vested RSUs vested 20% for each year after the Anniversary Date. For grants prior to 2021, if the employee is terminated for any reason within the first three years of the Anniversary Date, 100% of the performance-based RSUs granted will be forfeited. If we terminate the employment of a performance-based RSU holder without cause between three The following is a summary of time-vested RSUs and performance-based RSUs activity for the year ended December 31, 2021: Time-vested RSUs Performance-based RSUs Total Number of Weighted Average Total Number of Weighted Average Outstanding at January 1, 2021 1,761 $ 49.99 4,869 $ 56.96 Granted 1,566 $ 60.97 425 $ 57.60 Vested and settled (455) $ 39.54 (1,189) $ 38.07 Dividend equivalents granted 68 $ — 133 $ — Forfeited (176) $ 61.98 (343) $ 67.36 Outstanding at December 31, 2021 2,764 $ 57.47 3,895 $ 62.09 The weighted-average grant date fair value of time-vested RSUs granted was $65.20 and $64.82 during 2020 and 2019, respectively. The weighted-average grant date fair value of performance-based RSUs granted was $62.69 and $65.54 during 2020 and 2019, respectively. The total fair value, determined as of the date of vesting, of RSUs vested and converted to common shares of RBI during 2021, 2020 and 2019 was $99 million, $21 million and $8 million, respectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 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 classify these contract liabilities as Other liabilities, net in our consolidated balance sheets. The following table reflects the change in contract liabilities by segment and on a consolidated basis between December 31, 2020 and December 31, 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 (9) (44) (4) (57) Increase, excluding amounts recognized as revenue during the period 12 40 21 73 Impact of foreign currency translation — (13) — (13) Balance at December 31, 2021 $ 65 $ 410 $ 56 $ 531 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) by segment and on a consolidated basis as of December 31, 2021 (in millions): Contract liabilities expected to be recognized in TH BK PLK Consolidated 2022 $ 10 $ 34 $ 4 $ 48 2023 9 33 4 46 2024 9 32 4 45 2025 8 32 4 44 2026 6 31 3 40 Thereafter 23 248 37 308 Total $ 65 $ 410 $ 56 $ 531 Disaggregation of Total Revenues Total revenues consist of the following (in millions): 2021 2020 2019 Sales $ 2,378 $ 2,013 $ 2,362 Royalties 1,561 1,327 1,459 Property revenues 793 718 833 Franchise fees and other revenue 98 76 89 Advertising revenues 909 834 860 Total revenues $ 5,739 $ 4,968 $ 5,603 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 12 Months Ended |
Dec. 31, 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): 2021 2020 2019 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ 2 $ 6 $ 7 Litigation settlements and reserves, net 81 7 2 Net losses (gains) on foreign exchange (76) 100 (15) Other, net — (8) (4) Other operating expenses (income), net $ 7 $ 105 $ (10) 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. Litigation settlements and reserves, net primarily reflects accruals and payments made and proceeds received in connection with litigation and arbitration matters and other business disputes. In early 2022, we entered into negotiations to resolve business disputes that arose during 2021 with counterparties to the master franchise agreements for Burger King and Popeyes in China. Based on these discussions, we expect to agree to pay approximately $100 million in 2022, including $72 million that is included in Litigation settlements and reserves, net for 2021. Remaining amounts primarily will be recorded as an equity method investment when made. Net losses (gains) on foreign exchange are primarily related to revaluation of foreign denominated assets and liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of December 31, 2021, we had $12 million in irrevocable standby letters of credit outstanding, which were issued primarily to certain insurance carriers to guarantee payments of deductibles for various insurance programs, such as health and commercial liability insurance. Of these letters of credit outstanding, $2 million are secured by the collateral under our Revolving Credit Facility and the remainder are secured by cash collateral. As of December 31, 2021, no amounts had been drawn on any of these irrevocable standby letters of credit. Purchase Commitments We have arrangements for information technology and telecommunication services with an aggregate contractual obligation of $33 million over the next three years, some of which have early termination fees. We also enter into commitments to purchase advertising. As of December 31, 2021, these commitments totaled $194 million and run through 2025. 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 appealed this ruling. Oral arguments for the appeal were heard in September 2021 and the parties await a ruling on the appeal. 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. The court struck the substantial points, including: the claim related to the Canadian Competition Act, the unlawful conspiracy claim, and the claim for unjust enrichment. 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 March 2022. RBI intends to vigorously defend. While RBI believe these claims are without merit, RBI is unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. |
Segment Reporting and Geographi
Segment Reporting and Geographical Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographical Information | Segment Reporting and Geographical Information As stated in Note 1, Description of Business and Organization , we manage four 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. Under the Firehouse Subs brand, we operate in the specialty subs 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. Our management structure and financial reporting is organized around our four brands, including the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker. Therefore, we have four operating segments: (1) TH, which includes all operations of our Tim Hortons brand, (2) BK, which includes all operations of our Burger King brand, (3) PLK, which includes all operations of our Popeyes brand, and (4) FHS, which includes all operations of our Firehouse Subs brand. Our four operating segments represent our reportable segments. FHS revenues and segment income for the period from the acquisition date of December 15, 2021 through December 26, 2021 (the fiscal year end for FHS) are included in our consolidated statement of operations for 2021. The following tables present revenues, by segment and by country, depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions): 2021 2020 2019 Revenues by operating segment: TH $ 3,342 $ 2,810 $ 3,344 BK 1,813 1,602 1,777 PLK 579 556 482 FHS 5 — — Total $ 5,739 $ 4,968 $ 5,603 Revenues by country (a): Canada $ 3,035 $ 2,546 $ 3,037 United States 2,005 1,889 1,930 Other 699 533 636 Total $ 5,739 $ 4,968 $ 5,603 Depreciation and amortization: TH $ 132 $ 119 $ 112 BK 62 62 62 PLK 7 8 11 Total $ 201 $ 189 $ 185 (Income) loss from equity method investments: TH $ (13) $ (4) $ (7) BK 17 43 (4) Total $ 4 $ 39 $ (11) Capital expenditures: TH $ 61 $ 92 $ 37 BK 34 18 20 PLK 11 7 5 Total $ 106 $ 117 $ 62 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. Total assets by segment, and long-lived assets by segment and country are as follows (in millions): Assets Long-Lived Assets As of December 31, As of December 31, 2021 2020 2021 2020 By operating segment: TH $ 13,995 $ 13,963 $ 1,963 $ 1,990 BK 4,946 5,334 1,137 1,128 PLK 2,563 2,525 141 131 FHS 1,103 — 4 — Unallocated 639 955 — — Total $ 23,246 $ 22,777 $ 3,245 $ 3,249 By country: Canada $ 1,670 $ 1,685 United States 1,556 1,539 Other 19 25 Total $ 3,245 $ 3,249 Long-lived assets include property and equipment, net, finance and operating lease right of use assets, net and net investment in property leased to franchisees. Only Canada and the United States represented 10% or more of our total long-lived assets as of December 31, 2021 and December 31, 2020. 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 (benefit) 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 (i) non-recurring fees and expense incurred in connection with the Firehouse Subs acquisition consisting of professional fees and compensation related expenses (“FHS Transaction costs”); (ii) costs 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”); and (iii) costs incurred in connection with the centralization and relocation of our Canadian and U.S. restaurant support centers to new offices in Toronto, Ontario, and Miami, Florida, respectively, (“Office centralization and relocation costs”). 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 performance. A reconciliation of segment income to net income consists of the following (in millions): 2021 2020 2019 Segment income: TH $ 997 $ 823 $ 1,122 BK 1,021 823 994 PLK 228 218 188 FHS 2 — — Adjusted EBITDA 2,248 1,864 2,304 Share-based compensation and non-cash incentive compensation expense 102 84 74 FHS Transaction costs 18 — — Corporate restructuring and tax advisory fees 16 16 31 Office centralization and relocation costs — — 6 Impact of equity method investments (a) 25 48 11 Other operating expenses (income), net 7 105 (10) EBITDA 2,080 1,611 2,192 Depreciation and amortization 201 189 185 Income from operations 1,879 1,422 2,007 Interest expense, net 505 508 532 Loss on early extinguishment of debt 11 98 23 Income tax expense 110 66 341 Net income $ 1,253 $ 750 $ 1,111 (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 | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information 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. The Issuers entered into the 3.875% First Lien Senior Notes Indenture with respect to the 3.875% First Lien Senior Notes due 2028. The Issuers entered into the 5.75% First Lien Senior Notes Indenture with respect to the 5.75% First Lien Senior Notes due 2025. The Issuers entered into the 3.50% First Lien Senior Notes Indenture with respect to the 3.50% First Lien Senior Notes due 2029. The Issuers entered into the 4.375% Second Lien Senior Notes Indenture with respect to the 4.375% Second Lien Senior Notes due 2028. The Issuers entered into the 4.00% Second Lien Senior Notes Indenture with respect to the 4.00% Second Lien Senior Notes Due 2030. The agreement governing our Credit Facilities, the 3.875% First Lien Senior Notes Indenture, the 5.75% First Lien Senior Notes Indenture, the 3.50% First Lien Senior Notes Indenture, the 4.375% Second Lien Senior Notes Indenture and the 4.00% Second Lien 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 December 31, 2021 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets, net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners’ capital/shareholders’ equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2020 Consolidated 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 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) 2021 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,378 $ — $ — $ 2,378 Franchise and property revenues 2,452 — — 2,452 Advertising revenues 909 — — 909 Total revenues 5,739 — — 5,739 Operating costs and expenses: Cost of sales 1,890 — — 1,890 Franchise and property expenses 489 — — 489 Advertising expenses 962 — — 962 General and administrative expenses 508 — — 508 (Income) loss from equity method investments 4 — — 4 Other operating expenses (income), net 7 — — 7 Total operating costs and expenses 3,860 — — 3,860 Income from operations 1,879 — — 1,879 Interest expense, net 505 — — 505 Loss on early extinguishment of debt 11 — — 11 Income before income taxes 1,363 — — 1,363 Income tax expense 110 — — 110 Net income 1,253 — — 1,253 Equity in earnings of consolidated subsidiaries — 1,253 (1,253) — Net income (loss) 1,253 1,253 (1,253) 1,253 Net income (loss) attributable to noncontrolling interests 4 4 (4) 4 Net income (loss) attributable to common unitholders $ 1,249 $ 1,249 $ (1,249) $ 1,249 Total comprehensive income (loss) $ 1,504 $ 1,504 $ (1,504) $ 1,504 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,013 $ — $ — $ 2,013 Franchise and property revenues 2,121 — — 2,121 Advertising revenues 834 — — 834 Total revenues 4,968 — — 4,968 Operating costs and expenses: Cost of sales 1,610 — — 1,610 Franchise and property expenses 515 — — 515 Advertising expenses 870 — — 870 General and administrative expenses 407 — — 407 (Income) loss from equity method investments 39 — — 39 Other operating expenses (income), net 105 — — 105 Total operating costs and expenses 3,546 — — 3,546 Income from operations 1,422 — — 1,422 Interest expense, net 508 — — 508 Loss on early extinguishment of debt 98 — — 98 Income before income taxes 816 — — 816 Income tax expense 66 — — 66 Net income 750 — — 750 Equity in earnings of consolidated subsidiaries — 750 (750) — Net income (loss) 750 750 (750) 750 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 748 $ 748 $ (748) $ 748 Total comprehensive income (loss) $ 653 $ 653 $ (653) $ 653 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2019 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,362 $ — $ — $ 2,362 Franchise and property revenues 2,381 — — 2,381 Advertising revenues 860 — — 860 Total revenues 5,603 — — 5,603 Operating costs and expenses: Cost of sales 1,813 — — 1,813 Franchise and property expenses 533 — — 533 Advertising expenses 865 — — 865 General and administrative expenses 406 — — 406 (Income) loss from equity method investments (11) — — (11) Other operating expenses (income), net (10) — — (10) Total operating costs and expenses 3,596 — — 3,596 Income from operations 2,007 — — 2,007 Interest expense, net 532 — — 532 Loss on early extinguishment of debt 23 — — 23 Income before income taxes 1,452 — — 1,452 Income tax expense 341 — — 341 Net income 1,111 — — 1,111 Equity in earnings of consolidated subsidiaries — 1,111 (1,111) — Net income (loss) 1,111 1,111 (1,111) 1,111 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 1,109 $ 1,109 $ (1,109) $ 1,109 Total comprehensive income (loss) $ 1,370 $ 1,370 $ (1,370) $ 1,370 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,253 $ 1,253 $ (1,253) $ 1,253 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,253) 1,253 — Depreciation and amortization 201 — — 201 Premiums paid and non-cash loss on early extinguishment of debt 11 — — 11 Amortization of deferred financing costs and debt issuance discount 27 — — 27 (Income) loss from equity method investments 4 — — 4 Loss (gain) on remeasurement of foreign denominated transactions (76) — — (76) Net (gains) losses on derivatives 87 — — 87 Share-based compensation and non-cash incentive compensation expense 102 — — 102 Deferred income taxes (5) — — (5) Other (16) — — (16) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 8 — — 8 Inventories and prepaids and other current assets 12 — — 12 Accounts and drafts payable 149 — — 149 Other accrued liabilities and gift card liability 67 — — 67 Tenant inducements paid to franchisees (20) — — (20) Other long-term assets and liabilities (78) — — (78) Net cash provided by operating activities 1,726 — — 1,726 Cash flows from investing activities: Payments for property and equipment (106) — — (106) Net proceeds from disposal of assets, restaurant closures and refranchisings 16 — — 16 Net payment for purchase of Firehouse Subs, net of cash acquired (1,004) — — (1,004) Settlement/sale of derivatives, net 5 — — 5 Other investing activities, net (14) — — (14) Net cash used for investing activities (1,103) — — (1,103) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1,335 — — 1,335 Repayments of revolving line of credit, long-term debt and finance leases (889) — — (889) Payment of financing costs (19) — — (19) Distributions on Class A and Partnership exchangeable units — (974) — (974) Distributions to RBI for repurchase of RBI common shares — (551) — (551) Capital contribution from RBI 60 — — 60 Distributions from subsidiaries (1,525) 1,525 — — (Payments) proceeds from derivatives (51) — — (51) Other financing activities, net (4) — — (4) Net cash used for financing activities (1,093) — — (1,093) Effect of exchange rates on cash and cash equivalents (3) — — (3) Increase (decrease) in cash and cash equivalents (473) — — (473) Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,087 $ — $ — $ 1,087 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 750 $ 750 $ (750) $ 750 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (750) 750 — Depreciation and amortization 189 — — 189 Premiums paid and non-cash loss on early extinguishment of debt 97 — — 97 Amortization of deferred financing costs and debt issuance discount 26 — — 26 (Income) loss from equity method investments 39 — — 39 Loss (gain) on remeasurement of foreign denominated transactions 100 — — 100 Net (gains) losses on derivatives 32 — — 32 Share-based compensation and non-cash incentive compensation expense 84 — — 84 Deferred income taxes (208) — — (208) Other 28 — — 28 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (30) — — (30) Inventories and prepaids and other current assets (10) — — (10) Accounts and drafts payable (183) — — (183) Other accrued liabilities and gift card liability 6 — — 6 Tenant inducements paid to franchisees (22) — — (22) Other long-term assets and liabilities 23 — — 23 Net cash provided by operating activities 921 — — 921 Cash flows from investing activities: Payments for property and equipment (117) — — (117) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Settlement/sale of derivatives, net 33 — — 33 Other investing activities, net (7) — — (7) Net cash used for investing activities (79) — — (79) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 5,235 — — 5,235 Repayments of revolving line of credit, long-term debt and finance leases (4,708) — — (4,708) Payment of financing costs (43) — — (43) Distributions on Class A and Partnership exchangeable units — (959) — (959) Repurchase of Partnership exchangeable units — (380) — (380) Capital contribution from RBI 82 — — 82 Distributions from subsidiaries (1,339) 1,339 — — (Payments) proceeds from derivatives (46) — — (46) Other financing activities, net (2) — — (2) Net cash used for financing activities (821) — — (821) Effect of exchange rates on cash and cash equivalents 6 — — 6 Increase (decrease) in cash and cash equivalents 27 — — 27 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,560 $ — $ — $ 1,560 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2019 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,111 $ 1,111 $ (1,111) $ 1,111 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,111) 1,111 — Depreciation and amortization 185 — — 185 Premiums paid and non-cash loss on early extinguishment of debt 16 — — 16 Amortization of deferred financing costs and debt issuance discount 29 — — 29 (Income) loss from equity method investments (11) — — (11) Loss (gain) on remeasurement of foreign denominated transactions (14) — — (14) Net (gains) losses on derivatives (49) — — (49) Share-based compensation and non-cash incentive compensation expense 74 — — 74 Deferred income taxes 58 — — 58 Other 6 — — 6 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (53) — — (53) Inventories and prepaids and other current assets (15) — — (15) Accounts and drafts payable 112 — — 112 Other accrued liabilities and gift card liability (57) — — (57) Tenant inducements paid to franchisees (54) — — (54) Other long-term assets and liabilities 138 — — 138 Net cash provided by operating activities 1,476 — — 1,476 Cash flows from investing activities: Payments for property and equipment (62) — — (62) Net proceeds from disposal of assets, restaurant closures and refranchisings 8 — — 8 Settlement/sale of derivatives, net 24 — — 24 Net cash used for investing activities (30) — — (30) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 2,250 — — 2,250 Repayments of revolving line of credit, long-term debt and finance leases (2,266) — — (2,266) Payment of financing costs (50) — — (50) Distributions on Class A and Partnership exchangeable units — (901) — (901) Capital contribution from RBI 102 — — 102 Distributions from subsidiaries (901) 901 — — (Payments) proceeds from derivatives 23 — — 23 Net cash used for financing activities (842) — — (842) Effect of exchange rates on cash and cash equivalents 16 — — 16 Increase (decrease) in cash and cash equivalents 620 — — 620 Cash and cash equivalents at beginning of period 913 — — 913 Cash and cash equivalents at end of period $ 1,533 $ — $ — $ 1,533 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions/Dividends On January 5, 2022, RBI paid a cash dividend of $0.53 per RBI common share to common shareholders of record on December 21, 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 December 21, 2021. On February 15, 2022, we announced that the RBI board of directors had declared a cash dividend of $0.54 per RBI common share for the first quarter of 2020. The dividend will be paid on April 6, 2022 to RBI common shareholders of record on March 23, 2022. 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 $0.54 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal YearWe operate on a monthly calendar, with a fiscal year that ends on December 31. TH, BK and PLK operate on the same fiscal year. The fiscal year of FHS ends on the Sunday on or before December 31 which was December 26, 2021. |
Basis of Presentation | Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements (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, investment 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. In these arrangements, Tim Hortons has the ability to determine which operators manage the restaurants and for what duration. 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 December 31, 2021 and 2020, we determined that we are the primary beneficiary of 46 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. Assets and liabilities related to consolidated VIEs are not significant to our total consolidated assets and liabilities. Liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our general assets. |
Reclassifications | Reclassifications Certain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been reclassified in order to be comparable with the current year classifications. These consist of the 2020 and 2019 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 2020 and 2019 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. |
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses Our functional currency is the U.S. dollar, since our term loans and senior secured notes are denominated in U.S. dollars. The functional currency of each of our operating subsidiaries is generally the currency of the economic environment in which the subsidiary primarily does business. Our foreign subsidiaries’ financial statements are translated into U.S. dollars using the foreign exchange rates applicable to the dates of the financial statements. Assets and liabilities are translated using the end-of-period spot foreign exchange rates. Income, expenses and cash flows are translated at the average foreign exchange rates for each period. Equity accounts are translated at historical foreign exchange rates. The effects of these translation adjustments are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in the consolidated statements of equity. For any transaction that is denominated in a currency different from the entity’s functional currency, we record a gain or loss based on the difference between the foreign exchange rate at the transaction date and the foreign exchange rate at the transaction settlement date (or rate at period end, if unsettled) which is included within other operating expenses (income), net in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less and credit card receivables are considered cash equivalents. |
Inventories | Inventories Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials such as green coffee beans and finished goods such as new equipment, parts, paper supplies and restaurant food items. The moving average method is used to determine the cost of raw materials and finished goods inventories held for sale to Tim Hortons franchisees. |
Property and Equipment, net | Property and Equipment, net We record property and equipment at historical cost less accumulated depreciation and amortization, which is recognized using the straight-line method over the following estimated useful lives: (i) buildings and improvements – up to 40 years; (ii) restaurant equipment – up to 17 years; (iii) furniture, fixtures and other – up to 10 years; and (iv) manufacturing equipment – up to 25 years. Leasehold improvements to properties where we are the lessee are amortized over the lesser of the remaining term of the lease or the estimated useful life of the improvement. Major improvements are capitalized, while maintenance and repairs are expensed when incurred. |
Leases | Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit or loss on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. |
Leases | Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit or loss on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. |
Goodwill and Intangible Assets Not Subject to Amortization | Goodwill and Intangible Assets Not Subject to Amortization Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in connection with the acquisition of Firehouse Subs in 2021, the acquisition of Popeyes in 2017, the acquisition of Tim Hortons in 2014 and the acquisition of Burger King Holdings, Inc. by 3G Capital Partners Ltd. in 2010. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, the Popeyes brand and the Firehouse Subs brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of October 1 of each year and more often if an event occurs or circumstances change which indicate impairment might exist. Our annual impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit or Brand in any period. We can resume the qualitative assessment for any reporting unit or Brand in any subsequent period. Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a quantitative goodwill impairment test that requires us to estimate the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying amount, we will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-likely-than-not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for a Brand, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand exceeds its fair value, we estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount exceeds fair value, an impairment loss is recognized in an amount equal to that excess. We completed our impairment tests for goodwill and the Brands as of October 1, 2021, 2020 and 2019 and no impairment resulted. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property and equipment, intangible assets subject to amortization and lease right-of-use assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, bankruptcy proceedings or other significant financial distress of a lessee; significant negative industry or economic trends; knowledge of transactions involving the sale of similar property at amounts below the carrying value; or our expectation to dispose of long-lived assets before the end of their estimated useful lives. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from use and eventual disposition of the assets or asset group. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows, we record an impairment charge equal to the excess, if any, of the net carrying value over fair value. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) (“OCI”) refers to revenues, expenses, gains and losses that are included in comprehensive income (loss), but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to equity, net of tax. Our other comprehensive income (loss) is primarily comprised of unrealized gains and losses on foreign currency translation adjustments and unrealized gains and losses on hedging activity, net of tax. |
Derivative Financial Instruments | Derivative Financial Instruments We recognize and measure all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. We may enter into derivatives that are not designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings, depending on the purpose of the derivatives and whether they qualify for, and we have applied, hedge accounting treatment. When applying hedge accounting, we designate at a derivative’s inception, the specific assets, liabilities or future commitments being hedged, and assess the hedge’s effectiveness at inception and on an ongoing basis. We discontinue hedge accounting when: (i) we determine that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designation of the derivatives as a hedge instrument is no longer appropriate. We do not enter into or hold derivatives for speculative purposes. |
Disclosures about Fair Value | Disclosures about Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). The fair value is based on assumptions that market participants would use when pricing the asset or liability. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation, as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. 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. |
Revenue Recognition | Revenue Recognition Sales Sales consist primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and are presented net of any related sales tax. Orders placed by customers specify the goods to be delivered and transaction prices for supply chain sales. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Shipping and handling costs associated with outbound freight for supply chain sales are accounted for as fulfillment costs and classified as cost of sales. To a much lesser extent, sales also include Company restaurant sales (including Restaurant VIEs), which consist of sales to restaurant guests. Revenue from Company restaurant sales is recognized at the point of sale. Taxes assessed by a governmental authority that we collect are excluded from revenue. Franchise revenues and advertising revenues Franchise revenues and advertising revenues consist primarily of royalties, advertising fund contributions, initial and renewal franchise fees and upfront fees from development agreements and master franchise and development agreements (“MFDAs”). Under franchise agreements, we provide franchisees with (i) a franchise license, which includes a license to use our intellectual property and, in those markets where our subsidiaries manage an advertising fund, advertising and promotion management, (ii) pre-opening services, such as training and inspections, and (iii) ongoing services, such as development of training materials and menu items and restaurant monitoring and inspections. The services we provide under franchise agreements are highly interrelated and dependent upon the franchise license and we concluded the services do not represent individually distinct performance obligations. Consequently, we bundle the franchise license performance obligation and promises to provide services into a single performance obligation, which we satisfy by providing a right to use our intellectual property over the term of each franchise agreement. Royalties, including franchisee contributions to advertising funds managed by our subsidiaries, are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. Initial and renewal franchise fees are payable by the franchisee upon a new restaurant opening or renewal of an existing franchise agreement. Our franchise agreement royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to our performance obligation under the franchise agreement and are recognized as franchise sales occur. We separately classify advertising fund contributions in Advertising revenues while all other franchise revenues are classified in Franchise and property revenues. Additionally, initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements other than MFDAs generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee. We have a distinct performance obligation under our MFDAs to grant subfranchising rights over a stated term. Under the terms of MFDAs, we typically either receive an upfront fee paid in cash and/or receive noncash consideration in the form of an equity interest in the master franchisee or an affiliate of the master franchisee. We account for noncash consideration as investments in the applicable equity method investee and recognize revenue in an amount equal to the fair value of the equity interest received. Upfront fees from master franchisees, including the fair value of noncash consideration, are deferred and amortized over the MFDA term on a straight-line basis. 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. |
Property revenues | Property revenues Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted for in accordance with applicable accounting guidance for leases and are excluded from the scope of revenue recognition guidance. |
Advertising and Promotional Costs | Advertising and Promotional CostsCompany restaurants and franchise restaurants contribute to advertising funds that our subsidiaries manage in the United States and Canada and certain other international markets. The advertising funds expense the production costs of advertising when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. The advertising contributions by Company restaurants (including Restaurant VIEs) are eliminated in consolidation. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are amortized over the term of the related debt agreement into interest expense using the effective interest method. |
Income Taxes | Income Taxes Amounts in the Financial Statements related to income taxes are calculated using the principles of ASC Topic 740, Income Taxes . Under these principles, deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as well as tax credit carry-forwards and loss carry-forwards. These deferred taxes are measured by applying currently enacted tax rates. A deferred tax asset is recognized when it is considered more-likely-than-not to be realized. The effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the year in which the law is enacted. A valuation allowance reduces deferred tax assets when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We recognize positions taken or expected to be taken in a tax return in the Financial Statements when it is more-likely-than-not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. Translation gains and losses resulting from the remeasurement of foreign deferred tax assets or liabilities denominated in a currency other than the functional currency are classified as other operating expenses (income), net in the consolidated statements of operations. |
Share-based Compensation | Share-based Compensation Compensation expense related to the issuance of share-based awards to our employees is measured at fair value on the grant date. We use the Black-Scholes option pricing model to value stock options. The fair value of restricted stock units is based on the closing price of our stock at the award date. If applicable, RBI's total shareholder return relative to our peer group is incorporated into the underlying assumptions using a Monte Carlo simulation valuation model to calculate grant date fair value for performance based awards with a market condition. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis, adjusted for estimated forfeitures of awards that are not expected to vest. We use historical data to estimate forfeitures for share-based awards. Upon the end of the service period, compensation expense is adjusted to account for the actual forfeiture rate. The compensation expense for awards that contain performance conditions is recognized when it is probable that the performance conditions will be achieved. |
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. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships. 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 do not expect that the adoption of this new guidance will have a material impact on our Financial Statements. |
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 unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as the exercise of stock options will not affect the numbers 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value Measurements | 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 December 31, 2021 2020 Fair value of our variable term debt and senior notes $ 12,851 $ 12,477 Principal carrying amount of our variable term debt and senior notes 12,943 12,453 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Unit | The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): 2021 2020 2019 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 838 $ 486 $ 643 Net income allocated to Partnership exchangeable unitholders 411 262 466 Net income attributable to common unitholders $ 1,249 $ 748 $ 1,109 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 Weighted average Partnership exchangeable units 151 162 194 Earnings per unit - basic and diluted: Class A common units (a) $ 4.15 $ 2.41 $ 3.18 Partnership exchangeable units (a) $ 2.72 $ 1.62 $ 2.40 |
Firehouse Acquisition (Tables)
Firehouse Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired | The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 768 Total liabilities (13) Total identifiable net assets 780 Goodwill 253 Total consideration $ 1,033 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consist of the following (in millions): As of December 31, 2021 2020 Land $ 1,011 $ 1,007 Buildings and improvements 1,200 1,192 Restaurant equipment 193 163 Furniture, fixtures, and other 257 242 Finance leases 323 289 Construction in progress 30 17 3,014 2,910 Accumulated depreciation and amortization (979) (879) Property and equipment, net $ 2,035 $ 2,031 |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 2020 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 722 $ (290) $ 432 $ 735 $ (264) $ 471 Favorable leases 104 (63) 41 117 (66) 51 Subtotal 826 (353) 473 852 (330) 522 Indefinite-lived intangible assets: Tim Hortons brand $ 6,695 $ — $ 6,695 $ 6,650 $ — $ 6,650 Burger King brand 2,126 — 2,126 2,174 — 2,174 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 768 — 768 — — — Subtotal 10,944 — 10,944 10,179 — 10,179 Intangible assets, net $ 11,417 $ 10,701 Goodwill Tim Hortons segment $ 4,306 $ 4,279 Burger King segment 601 614 Popeyes segment 846 846 Firehouse segment 253 — Total $ 6,006 $ 5,739 |
Schedule of Estimated Future Amortization Expenses on Intangible Assets | As of December 31, 2021, the estimated future amortization expense on identifiable assets subject to amortization is as follows (in millions): Twelve-months ended December 31, Amount 2022 $ 39 2023 37 2024 36 2025 34 2026 34 Thereafter 293 Total $ 473 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Franchise and Property Revenue | Franchise and property revenue recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): 2021 2020 2019 Revenues from affiliates: Royalties $ 350 $ 239 $ 290 Advertising revenues 67 50 55 Property revenues 32 32 33 Franchise fees and other revenue 21 14 10 Total $ 470 $ 335 $ 388 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net | Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions): As of December 31, 2021 2020 Current: Distributions payable $ 241 $ 239 Interest payable 63 66 Accrued compensation and benefits 99 78 Taxes payable 106 122 Deferred income 48 42 Accrued advertising expenses 43 59 Restructuring and other provisions 90 12 Current portion of operating lease liabilities 140 137 Other 117 80 Other accrued liabilities $ 947 $ 835 Non-current: Taxes payable $ 533 $ 626 Contract liabilities (see Note 15) 531 528 Derivatives liabilities 575 865 Unfavorable leases 65 81 Accrued pension 47 70 Deferred income 37 28 Other 34 38 Other liabilities, net $ 1,822 $ 2,236 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consist of the following (in millions): As of December 31, 2021 2020 Term Loan B $ 5,243 $ 5,297 Term Loan A 1,250 731 4.25% First Lien Senior Notes due 2024 — 775 3.875% First Lien Senior Notes due 2028 1,550 750 5.75% First Lien Senior Notes due 2025 500 500 3.50% First Lien Senior Notes due 2029 750 750 4.375% Second Lien Senior Notes due 2028 750 750 4.00% Second Lien Senior Notes due 2030 2,900 2,900 TH Facility and other 173 178 Less: unamortized deferred financing costs and deferred issuance discount (138) (155) Total debt, net 12,978 12,476 Less: current maturities of debt (62) (79) Total long-term debt $ 12,916 $ 12,397 |
Schedule of Aggregate Maturities of Long-Term Debt | The aggregate maturities of our long-term debt as of December 31, 2021 are as follows (in millions): Year Ended December 31, Principal Amount 2022 $ 62 2023 98 2024 108 2025 750 2026 6,148 Thereafter 5,950 Total $ 13,116 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): 2021 2020 2019 Debt (a) $ 461 $ 471 $ 503 Finance lease obligations 20 20 20 Amortization of deferred financing costs and debt issuance discount 27 26 29 Interest income (3) (9) (20) Interest expense, net $ 505 $ 508 $ 532 (a) Amount includes $45 million, $69 million and $70 million benefit during 2021, 2020 and 2019, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 12, Derivatives . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Assets Leased, Property and Equipment, Net | Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2021 2020 Land $ 899 $ 892 Buildings and improvements 1,180 1,146 Restaurant equipment 18 19 2,097 2,057 Accumulated depreciation and amortization (587) (534) Property and equipment leased, net $ 1,510 $ 1,523 |
Schedule of Net Investment, Direct Financing Leases | Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2021 2020 Future rents to be received: Future minimum lease receipts $ 113 $ 87 Contingent rents (a) 7 12 Estimated unguaranteed residual value 5 7 Unearned income (40) (34) 85 72 Current portion included within accounts receivables (5) (6) Net investment in property leased to franchisees $ 80 $ 66 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. |
Schedule of Property Revenue | Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2021 2020 2019 Rental income: Minimum lease payments $ 455 $ 445 $ 448 Variable lease payments 329 262 370 Amortization of favorable and unfavorable income lease contracts, net 3 6 7 Subtotal - lease income from operating leases 787 713 825 Earned income on direct financing and sales-type leases 6 5 8 Total property revenues $ 793 $ 718 $ 833 |
Schedule of Lease Cost | Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2021 2020 2019 Operating lease cost $ 202 $ 199 $ 210 Operating lease variable lease cost 193 177 198 Finance lease cost: Amortization of right-of-use assets 31 29 27 Interest on lease liabilities 20 20 20 Sublease income (587) (534) (631) Total lease cost (income) $ (141) $ (109) $ (176) |
Schedule of Lease Terms and Discount Rates | Lease Term and Discount Rate as of December 31, 2021 and 2020 As of December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 10.1 years 10.5 years Finance leases 11.4 years 11.3 years Weighted-average discount rate: Operating leases 5.5 % 5.9 % Finance leases 6.0 % 6.5 % |
Schedule of Other Lease Information | Other Information for 2021, 2020 and 2019 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 200 $ 200 $ 194 Operating cash flows from finance leases $ 20 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 29 $ 26 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 52 $ 59 $ 18 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 118 $ 163 |
Schedule of Future Minimum Lease Receipts and Commitments | As of December 31, 2021, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2022 $ 8 $ 404 $ 52 $ 197 2023 8 382 50 186 2024 7 350 48 173 2025 7 316 45 158 2026 7 278 41 140 Thereafter 76 1,374 262 675 Total minimum receipts / payments $ 113 $ 3,104 498 1,529 Less amount representing interest (131) (319) Present value of minimum lease payments 367 1,210 Current portion of lease obligations (34) (140) Long-term portion of lease obligations $ 333 $ 1,070 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,953 million due in the future under non-cancelable subleases |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes, classified by source of income (loss), is as follows (in millions): 2021 2020 2019 Canadian $ 457 $ 200 $ 685 Foreign 906 616 767 Income before income taxes $ 1,363 $ 816 $ 1,452 |
Schedule of Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax (benefit) expense attributable to income from continuing operations consists of the following (in millions): 2021 2020 2019 Current: Canadian $ 16 $ 45 $ 47 U.S. Federal (10) 125 122 U.S. state, net of federal income tax benefit 25 26 20 Other Foreign 84 78 94 $ 115 $ 274 $ 283 Deferred: Canadian $ 32 $ (67) $ 43 U.S. Federal (37) (82) 8 U.S. state, net of federal income tax benefit (7) (27) — Other Foreign 7 (32) 7 $ (5) $ (208) $ 58 Income tax expense (benefit) $ 110 $ 66 $ 341 |
Schedule of Statutory Rate Reconciles to Effective Income Tax Rate | The statutory rate reconciles to the effective income tax rate as follows: 2021 2020 2019 Statutory rate 26.5 % 26.5 % 26.5 % Costs and taxes related to foreign operations 3.5 9.6 4.7 Foreign exchange gain (loss) — 0.5 0.1 Foreign tax rate differential (13.9) (15.6) (10.8) Change in valuation allowance 1.1 1.2 0.5 Change in accrual for tax uncertainties (7.4) 3.9 5.0 Intercompany financing (3.5) (6.1) (2.4) Impact of Tax Act — (7.8) (0.1) Swiss Tax Reform — (5.1) 1.1 Benefit from stock option exercises (0.8) (0.3) (2.2) Litigation settlements and reserves 1.4 — — Other 1.2 1.2 1.1 Effective income tax rate 8.1 % 8.0 % 23.5 % |
Schedule of Income Tax Expense Benefit Allocated to Continuing Operations and Amounts Separately Allocated to Other Items | Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in millions): 2021 2020 2019 Income tax (benefit) expense from continuing operations $ 110 $ 66 $ 341 Cash flow hedge in accumulated other comprehensive income (loss) 72 (64) (23) Net investment hedge in accumulated other comprehensive income (loss) (15) (60) (32) Foreign Currency Translation in accumulated other comprehensive income (loss) (4) 12 — Pension liability in accumulated other comprehensive income (loss) 3 (3) (1) Total $ 166 $ (49) $ 285 |
Schedule of Deferred Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | The significant components of deferred income tax (benefit) expense attributable to income from continuing operations are as follows (in millions): 2021 2020 2019 Deferred income tax (benefit) expense $ (22) $ (230) $ 30 Change in valuation allowance 14 22 7 Change in effective Canadian income tax rate — — (1) Change in effective U.S. state income tax rate 3 1 6 Change in effective foreign income tax rate — (1) 16 Total $ (5) $ (208) $ 58 |
Schedule of the Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in millions): As of December 31, 2021 2020 Deferred tax assets: Accounts and notes receivable $ 4 $ 6 Accrued employee benefits 48 54 Leases 115 114 Operating lease liabilities 317 323 Liabilities not currently deductible for tax 346 310 Tax loss and credit carryforwards 517 547 Derivatives 164 225 Other (1) 9 Total gross deferred tax assets 1,510 1,588 Valuation allowance (356) (364) Net deferred tax assets 1,154 1,224 Less deferred tax liabilities: Property and equipment, principally due to differences in depreciation 15 35 Intangible assets 1,751 1,747 Leases 129 114 Operating lease assets 295 311 Statutory impairment 29 30 Outside basis difference 38 46 Total gross deferred tax liabilities 2,257 2,283 Net deferred tax liability $ 1,103 $ 1,059 |
Schedule of Changes in Valuation Allowance | Changes in the valuation allowance are as follows (in millions): 2021 2020 2019 Beginning balance $ 364 $ 329 $ 325 Change in estimates recorded to deferred income tax expense 14 19 8 Changes in losses and credits — 3 (2) (Reductions) additions related to other comprehensive income (22) 13 (2) Ending balance $ 356 $ 364 $ 329 |
Schedule of Amount and Expiration Dates of Operating Loss and Tax Credit Carry-forwards | The gross amount and expiration dates of operating loss and tax credit carry-forwards as of December 31, 2021 are as follows (in millions): Amount Expiration Date Canadian net operating loss carryforwards $ 728 2036-2041 Canadian capital loss carryforwards 866 Indefinite Canadian tax credits 3 2023-2036 U.S. state net operating loss carryforwards 680 2022-2041 U.S. capital loss carryforwards 16 2040 U.S. foreign tax credits 112 2022-2031 Other foreign net operating loss carryforwards 207 Indefinite Other foreign net operating loss carryforwards 77 2022-2038 Other foreign capital loss carryforward 30 Indefinite Total $ 2,719 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Beginning balance $ 497 $ 506 $ 441 Additions for tax positions related to the current year 9 9 9 Additions for tax positions of prior years 23 7 56 Reductions for tax positions of prior year (5) (25) — Additions for settlement 7 — — Reductions due to statute expiration (94) — — Ending balance $ 437 $ 497 $ 506 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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 consolidated balance sheets (in millions): Gain or (Loss) Recognized in 2021 2020 2019 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 132 $ (333) $ (102) Forward-currency contracts $ — $ (2) $ (4) Derivatives designated as net investment hedges Cross-currency rate swaps $ 96 $ (302) $ (118) (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 AOCI into 2021 2020 2019 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (125) $ (102) $ (26) Forward-currency contracts Cost of sales $ (7) $ 2 $ 5 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) 2021 2020 2019 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 45 $ 69 $ 70 |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of 2021 2020 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Foreign currency $ 2 $ — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 23 — Other assets, net Total assets at fair value $ 25 $ — Liabilities: Derivatives designated as cash flow hedges Interest rate $ 220 $ 430 Other liabilities, net Foreign currency — 5 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 355 434 Other liabilities, net Total liabilities at fair value $ 575 $ 869 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Change in the Components of AOCI | The following table displays the change in the components of AOCI (in millions): Derivatives Pensions Foreign Accumulated Balances at December 31, 2018 $ 454 $ (27) $ (1,864) $ (1,437) Foreign currency translation adjustment — — 409 409 Net change in fair value of derivatives, net of tax (163) — — (163) Amounts reclassified to earnings of cash flow hedges, net of tax 15 — — 15 Pension and post-retirement benefit plans, net of tax — (2) — (2) Balances at December 31, 2019 $ 306 $ (29) $ (1,455) $ (1,178) Foreign currency translation adjustment — — 332 332 Net change in fair value of derivatives, net of tax (486) — — (486) Amounts reclassified to earnings of cash flow hedges, net of tax 73 — — 73 Pension and post-retirement benefit plans, net of tax — (16) — (16) Balances at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — (67) (67) Net change in fair value of derivatives, net of tax 207 — — 207 Amounts reclassified to earnings of cash flow hedges, net of tax 96 — — 96 Pension and post-retirement benefit plans, net of tax — 15 — 15 Balances at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Share-based compensation expense consists of the following for the periods presented (in millions): 2021 2020 2019 Total share-based compensation expense - Stock options and RSUs (a)(b) $ 88 $ 74 $ 68 (a) Includes $2 million, $3 million, and $4 million due to modification of awards in 2021, 2020 and 2019, respectively. (b) Generally classified as general and administrative expenses in the consolidated statements of operations. |
Schedule of the Significant Assumptions Used During the Year to Estimate the Fair Value of Stock Options | The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards at the grant date: 2021 2020 2019 Risk-free interest rate 1.29% 1.29% 1.82% Expected term (in years) 5.88 5.88 6.19 Expected volatility 23.9% 23.9% 25.5% Expected dividend yield 3.14% 3.14% 3.09% |
Schedule of Option Activity under the Various Plan | The following is a summary of stock option activity under our plans for the year ended December 31, 2021: Total Number of Weighted Aggregate Weighted Outstanding at January 1, 2021 8,202 $ 51.86 Granted 15 $ 65.11 Exercised (1,594) $ 37.83 Forfeited (416) $ 63.00 Outstanding at December 31, 2021 6,207 $ 54.80 $ 48,468 5.6 Exercisable at December 31, 2021 1,961 $ 39.68 $ 41,255 3.3 Vested or expected to vest at December 31, 2021 5,671 $ 54.10 $ 47,650 5.5 (a) The intrinsic value represents the amount by which the fair value of RBI's stock exceeds the option exercise price at December 31, 2021. |
Schedule of Time-vested RSUs and Performance-based RSUs Activity | The following is a summary of time-vested RSUs and performance-based RSUs activity for the year ended December 31, 2021: Time-vested RSUs Performance-based RSUs Total Number of Weighted Average Total Number of Weighted Average Outstanding at January 1, 2021 1,761 $ 49.99 4,869 $ 56.96 Granted 1,566 $ 60.97 425 $ 57.60 Vested and settled (455) $ 39.54 (1,189) $ 38.07 Dividend equivalents granted 68 $ — 133 $ — Forfeited (176) $ 61.98 (343) $ 67.36 Outstanding at December 31, 2021 2,764 $ 57.47 3,895 $ 62.09 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Contract Liabilities | We classify these contract liabilities as Other liabilities, net in our consolidated balance sheets. The following table reflects the change in contract liabilities by segment and on a consolidated basis between December 31, 2020 and December 31, 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 (9) (44) (4) (57) Increase, excluding amounts recognized as revenue during the period 12 40 21 73 Impact of foreign currency translation — (13) — (13) Balance at December 31, 2021 $ 65 $ 410 $ 56 $ 531 |
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) by segment and on a consolidated basis as of December 31, 2021 (in millions): Contract liabilities expected to be recognized in TH BK PLK Consolidated 2022 $ 10 $ 34 $ 4 $ 48 2023 9 33 4 46 2024 9 32 4 45 2025 8 32 4 44 2026 6 31 3 40 Thereafter 23 248 37 308 Total $ 65 $ 410 $ 56 $ 531 |
Schedule of Disaggregation of Total Revenues | Total revenues consist of the following (in millions): 2021 2020 2019 Sales $ 2,378 $ 2,013 $ 2,362 Royalties 1,561 1,327 1,459 Property revenues 793 718 833 Franchise fees and other revenue 98 76 89 Advertising revenues 909 834 860 Total revenues $ 5,739 $ 4,968 $ 5,603 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expenses (Income), Net | Other operating expenses (income), net, consist of the following (in millions): 2021 2020 2019 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ 2 $ 6 $ 7 Litigation settlements and reserves, net 81 7 2 Net losses (gains) on foreign exchange (76) 100 (15) Other, net — (8) (4) Other operating expenses (income), net $ 7 $ 105 $ (10) |
Segment Reporting and Geograp_2
Segment Reporting and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Segment and Country | The following tables present revenues, by segment and by country, depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions): 2021 2020 2019 Revenues by operating segment: TH $ 3,342 $ 2,810 $ 3,344 BK 1,813 1,602 1,777 PLK 579 556 482 FHS 5 — — Total $ 5,739 $ 4,968 $ 5,603 Revenues by country (a): Canada $ 3,035 $ 2,546 $ 3,037 United States 2,005 1,889 1,930 Other 699 533 636 Total $ 5,739 $ 4,968 $ 5,603 |
Schedule of Segment Related Depreciation and Amortization Expense | Depreciation and amortization: TH $ 132 $ 119 $ 112 BK 62 62 62 PLK 7 8 11 Total $ 201 $ 189 $ 185 |
Schedule of Segment Related Income (Loss) from Equity Method Investments | (Income) loss from equity method investments: TH $ (13) $ (4) $ (7) BK 17 43 (4) Total $ 4 $ 39 $ (11) |
Schedule of Segment Related Capital Expenditure | Capital expenditures: TH $ 61 $ 92 $ 37 BK 34 18 20 PLK 11 7 5 Total $ 106 $ 117 $ 62 |
Schedule of Segment Related Assets and Long Lived Assets | Total assets by segment, and long-lived assets by segment and country are as follows (in millions): Assets Long-Lived Assets As of December 31, As of December 31, 2021 2020 2021 2020 By operating segment: TH $ 13,995 $ 13,963 $ 1,963 $ 1,990 BK 4,946 5,334 1,137 1,128 PLK 2,563 2,525 141 131 FHS 1,103 — 4 — Unallocated 639 955 — — Total $ 23,246 $ 22,777 $ 3,245 $ 3,249 By country: Canada $ 1,670 $ 1,685 United States 1,556 1,539 Other 19 25 Total $ 3,245 $ 3,249 |
Schedule of Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income consists of the following (in millions): 2021 2020 2019 Segment income: TH $ 997 $ 823 $ 1,122 BK 1,021 823 994 PLK 228 218 188 FHS 2 — — Adjusted EBITDA 2,248 1,864 2,304 Share-based compensation and non-cash incentive compensation expense 102 84 74 FHS Transaction costs 18 — — Corporate restructuring and tax advisory fees 16 16 31 Office centralization and relocation costs — — 6 Impact of equity method investments (a) 25 48 11 Other operating expenses (income), net 7 105 (10) EBITDA 2,080 1,611 2,192 Depreciation and amortization 201 189 185 Income from operations 1,879 1,422 2,007 Interest expense, net 505 508 532 Loss on early extinguishment of debt 11 98 23 Income tax expense 110 66 341 Net income $ 1,253 $ 750 $ 1,111 (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) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2021 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets, net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners’ capital/shareholders’ equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2020 Consolidated 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 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 | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,378 $ — $ — $ 2,378 Franchise and property revenues 2,452 — — 2,452 Advertising revenues 909 — — 909 Total revenues 5,739 — — 5,739 Operating costs and expenses: Cost of sales 1,890 — — 1,890 Franchise and property expenses 489 — — 489 Advertising expenses 962 — — 962 General and administrative expenses 508 — — 508 (Income) loss from equity method investments 4 — — 4 Other operating expenses (income), net 7 — — 7 Total operating costs and expenses 3,860 — — 3,860 Income from operations 1,879 — — 1,879 Interest expense, net 505 — — 505 Loss on early extinguishment of debt 11 — — 11 Income before income taxes 1,363 — — 1,363 Income tax expense 110 — — 110 Net income 1,253 — — 1,253 Equity in earnings of consolidated subsidiaries — 1,253 (1,253) — Net income (loss) 1,253 1,253 (1,253) 1,253 Net income (loss) attributable to noncontrolling interests 4 4 (4) 4 Net income (loss) attributable to common unitholders $ 1,249 $ 1,249 $ (1,249) $ 1,249 Total comprehensive income (loss) $ 1,504 $ 1,504 $ (1,504) $ 1,504 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,013 $ — $ — $ 2,013 Franchise and property revenues 2,121 — — 2,121 Advertising revenues 834 — — 834 Total revenues 4,968 — — 4,968 Operating costs and expenses: Cost of sales 1,610 — — 1,610 Franchise and property expenses 515 — — 515 Advertising expenses 870 — — 870 General and administrative expenses 407 — — 407 (Income) loss from equity method investments 39 — — 39 Other operating expenses (income), net 105 — — 105 Total operating costs and expenses 3,546 — — 3,546 Income from operations 1,422 — — 1,422 Interest expense, net 508 — — 508 Loss on early extinguishment of debt 98 — — 98 Income before income taxes 816 — — 816 Income tax expense 66 — — 66 Net income 750 — — 750 Equity in earnings of consolidated subsidiaries — 750 (750) — Net income (loss) 750 750 (750) 750 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 748 $ 748 $ (748) $ 748 Total comprehensive income (loss) $ 653 $ 653 $ (653) $ 653 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2019 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,362 $ — $ — $ 2,362 Franchise and property revenues 2,381 — — 2,381 Advertising revenues 860 — — 860 Total revenues 5,603 — — 5,603 Operating costs and expenses: Cost of sales 1,813 — — 1,813 Franchise and property expenses 533 — — 533 Advertising expenses 865 — — 865 General and administrative expenses 406 — — 406 (Income) loss from equity method investments (11) — — (11) Other operating expenses (income), net (10) — — (10) Total operating costs and expenses 3,596 — — 3,596 Income from operations 2,007 — — 2,007 Interest expense, net 532 — — 532 Loss on early extinguishment of debt 23 — — 23 Income before income taxes 1,452 — — 1,452 Income tax expense 341 — — 341 Net income 1,111 — — 1,111 Equity in earnings of consolidated subsidiaries — 1,111 (1,111) — Net income (loss) 1,111 1,111 (1,111) 1,111 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 1,109 $ 1,109 $ (1,109) $ 1,109 Total comprehensive income (loss) $ 1,370 $ 1,370 $ (1,370) $ 1,370 |
Condensed Cash Flow Statement | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,253 $ 1,253 $ (1,253) $ 1,253 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,253) 1,253 — Depreciation and amortization 201 — — 201 Premiums paid and non-cash loss on early extinguishment of debt 11 — — 11 Amortization of deferred financing costs and debt issuance discount 27 — — 27 (Income) loss from equity method investments 4 — — 4 Loss (gain) on remeasurement of foreign denominated transactions (76) — — (76) Net (gains) losses on derivatives 87 — — 87 Share-based compensation and non-cash incentive compensation expense 102 — — 102 Deferred income taxes (5) — — (5) Other (16) — — (16) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 8 — — 8 Inventories and prepaids and other current assets 12 — — 12 Accounts and drafts payable 149 — — 149 Other accrued liabilities and gift card liability 67 — — 67 Tenant inducements paid to franchisees (20) — — (20) Other long-term assets and liabilities (78) — — (78) Net cash provided by operating activities 1,726 — — 1,726 Cash flows from investing activities: Payments for property and equipment (106) — — (106) Net proceeds from disposal of assets, restaurant closures and refranchisings 16 — — 16 Net payment for purchase of Firehouse Subs, net of cash acquired (1,004) — — (1,004) Settlement/sale of derivatives, net 5 — — 5 Other investing activities, net (14) — — (14) Net cash used for investing activities (1,103) — — (1,103) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1,335 — — 1,335 Repayments of revolving line of credit, long-term debt and finance leases (889) — — (889) Payment of financing costs (19) — — (19) Distributions on Class A and Partnership exchangeable units — (974) — (974) Distributions to RBI for repurchase of RBI common shares — (551) — (551) Capital contribution from RBI 60 — — 60 Distributions from subsidiaries (1,525) 1,525 — — (Payments) proceeds from derivatives (51) — — (51) Other financing activities, net (4) — — (4) Net cash used for financing activities (1,093) — — (1,093) Effect of exchange rates on cash and cash equivalents (3) — — (3) Increase (decrease) in cash and cash equivalents (473) — — (473) Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,087 $ — $ — $ 1,087 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 750 $ 750 $ (750) $ 750 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (750) 750 — Depreciation and amortization 189 — — 189 Premiums paid and non-cash loss on early extinguishment of debt 97 — — 97 Amortization of deferred financing costs and debt issuance discount 26 — — 26 (Income) loss from equity method investments 39 — — 39 Loss (gain) on remeasurement of foreign denominated transactions 100 — — 100 Net (gains) losses on derivatives 32 — — 32 Share-based compensation and non-cash incentive compensation expense 84 — — 84 Deferred income taxes (208) — — (208) Other 28 — — 28 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (30) — — (30) Inventories and prepaids and other current assets (10) — — (10) Accounts and drafts payable (183) — — (183) Other accrued liabilities and gift card liability 6 — — 6 Tenant inducements paid to franchisees (22) — — (22) Other long-term assets and liabilities 23 — — 23 Net cash provided by operating activities 921 — — 921 Cash flows from investing activities: Payments for property and equipment (117) — — (117) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Settlement/sale of derivatives, net 33 — — 33 Other investing activities, net (7) — — (7) Net cash used for investing activities (79) — — (79) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 5,235 — — 5,235 Repayments of revolving line of credit, long-term debt and finance leases (4,708) — — (4,708) Payment of financing costs (43) — — (43) Distributions on Class A and Partnership exchangeable units — (959) — (959) Repurchase of Partnership exchangeable units — (380) — (380) Capital contribution from RBI 82 — — 82 Distributions from subsidiaries (1,339) 1,339 — — (Payments) proceeds from derivatives (46) — — (46) Other financing activities, net (2) — — (2) Net cash used for financing activities (821) — — (821) Effect of exchange rates on cash and cash equivalents 6 — — 6 Increase (decrease) in cash and cash equivalents 27 — — 27 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,560 $ — $ — $ 1,560 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2019 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,111 $ 1,111 $ (1,111) $ 1,111 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,111) 1,111 — Depreciation and amortization 185 — — 185 Premiums paid and non-cash loss on early extinguishment of debt 16 — — 16 Amortization of deferred financing costs and debt issuance discount 29 — — 29 (Income) loss from equity method investments (11) — — (11) Loss (gain) on remeasurement of foreign denominated transactions (14) — — (14) Net (gains) losses on derivatives (49) — — (49) Share-based compensation and non-cash incentive compensation expense 74 — — 74 Deferred income taxes 58 — — 58 Other 6 — — 6 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (53) — — (53) Inventories and prepaids and other current assets (15) — — (15) Accounts and drafts payable 112 — — 112 Other accrued liabilities and gift card liability (57) — — (57) Tenant inducements paid to franchisees (54) — — (54) Other long-term assets and liabilities 138 — — 138 Net cash provided by operating activities 1,476 — — 1,476 Cash flows from investing activities: Payments for property and equipment (62) — — (62) Net proceeds from disposal of assets, restaurant closures and refranchisings 8 — — 8 Settlement/sale of derivatives, net 24 — — 24 Net cash used for investing activities (30) — — (30) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 2,250 — — 2,250 Repayments of revolving line of credit, long-term debt and finance leases (2,266) — — (2,266) Payment of financing costs (50) — — (50) Distributions on Class A and Partnership exchangeable units — (901) — (901) Capital contribution from RBI 102 — — 102 Distributions from subsidiaries (901) 901 — — (Payments) proceeds from derivatives 23 — — 23 Net cash used for financing activities (842) — — (842) Effect of exchange rates on cash and cash equivalents 16 — — 16 Increase (decrease) in cash and cash equivalents 620 — — 620 Cash and cash equivalents at beginning of period 913 — — 913 Cash and cash equivalents at end of period $ 1,533 $ — $ — $ 1,533 |
Description of Business and O_2
Description of Business and Organization - Additional Information (Details) | Dec. 31, 2021brandcountry |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 29,456 |
Number of countries in which company and franchise restaurants operated (more than) | country | 100 |
Percentage of franchised restaurants (as a percent) | 100.00% |
Tim Hortons brand | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 5,291 |
Burger King brand | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 19,247 |
Popeyes brand | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 3,705 |
Firehouse | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 1,213 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)brand | Dec. 31, 2020USD ($)brand | Dec. 31, 2019USD ($) | |
Summary Of Accounting Policies [Line Items] | |||
Goodwill and brand impairment | $ | $ 0 | $ 0 | $ 0 |
Buildings and improvements | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 40 years | ||
Restaurant equipment | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 17 years | ||
Furniture, fixtures, and other | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 10 years | ||
Manufacturing equipment | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 25 years | ||
Restaurant VIEs | |||
Summary Of Accounting Policies [Line Items] | |||
Number of consolidated restaurants | brand | 46 | 38 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Principal carrying amount of our variable term debt and senior notes | $ 12,978 | $ 12,476 |
Variable Term Debt and Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of our variable term debt and senior notes | 12,851 | 12,477 |
Principal carrying amount of our variable term debt and senior notes | $ 12,943 | $ 12,453 |
Earnings Per Unit - Basic and D
Earnings Per Unit - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 1,249 | $ 748 | $ 1,109 |
Class A common units | |||
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 838 | $ 486 | $ 643 |
Denominator - basic and diluted partnership units: | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 202 | 202 | 202 |
Weighted average number of units outstanding, diluted (in dollars per share) | 202 | 202 | 202 |
Earnings per unit - basic and diluted: | |||
Earnings per unit, basic (in shares) | $ 4.15 | $ 2.41 | $ 3.18 |
Earnings per unit, diluted (in shares) | $ 4.15 | $ 2.41 | $ 3.18 |
Partnership exchangeable units | |||
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 411 | $ 262 | $ 466 |
Denominator - basic and diluted partnership units: | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 151 | 162 | 194 |
Weighted average number of units outstanding, diluted (in dollars per share) | 151 | 162 | 194 |
Earnings per unit - basic and diluted: | |||
Earnings per unit, basic (in shares) | $ 2.72 | $ 1.62 | $ 2.40 |
Earnings per unit, diluted (in shares) | $ 2.72 | $ 1.62 | $ 2.40 |
Firehouse Acquisition - Additio
Firehouse Acquisition - Additional Information (Details) - USD ($) $ in Millions | Dec. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Proceeds from revolving line of credit and long-term debt | $ 1,335 | $ 5,235 | $ 2,250 | |
Firehouse Subs brand | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 1,033 | |||
FH transaction costs | $ 18 | $ 0 | $ 0 | |
Firehouse Subs brand | Secured Debt | ||||
Business Acquisition [Line Items] | ||||
Proceeds from revolving line of credit and long-term debt | $ 533 |
Firehouse Acquisition - Schedul
Firehouse Acquisition - Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 15, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 6,006 | $ 5,739 | |
Firehouse Subs brand | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 21 | ||
Property and equipment | 4 | ||
Firehouse Subs brand | 768 | ||
Total liabilities | (13) | ||
Total identifiable net assets | 780 | ||
Goodwill | 253 | ||
Total consideration | $ 1,033 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | $ 3,014 | $ 2,910 |
Accumulated depreciation and amortization | (979) | (879) |
Property and equipment, net | 2,035 | 2,031 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 1,011 | 1,007 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 1,200 | 1,192 |
Restaurant equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 193 | 163 |
Furniture, fixtures, and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 257 | 242 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 30 | 17 |
Finance Lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | $ 323 | $ 289 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense on property and equipment | $ 148 | $ 140 | $ 136 |
Accumulated depreciation and amortization, finance leases | 77 | 51 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Assets leased under finance leases | $ 246 | $ 238 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 826 | $ 852 |
Accumulated Amortization | (353) | (330) |
Total | 473 | 522 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 10,944 | 10,179 |
Intangible assets, net | 11,417 | 10,701 |
Goodwill [Line Items] | ||
Goodwill | 6,006 | 5,739 |
Tim Hortons brand | ||
Goodwill [Line Items] | ||
Goodwill | 4,306 | 4,279 |
Burger King brand | ||
Goodwill [Line Items] | ||
Goodwill | 601 | 614 |
Popeyes brand | ||
Goodwill [Line Items] | ||
Goodwill | 846 | 846 |
Firehouse Subs brand | ||
Goodwill [Line Items] | ||
Goodwill | 253 | 0 |
Trade Names | Tim Hortons brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 6,695 | 6,650 |
Trade Names | Burger King brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 2,126 | 2,174 |
Trade Names | Popeyes brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 1,355 | 1,355 |
Trade Names | Firehouse Subs brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 768 | 0 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 722 | 735 |
Accumulated Amortization | (290) | (264) |
Total | 432 | 471 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 104 | 117 |
Accumulated Amortization | (63) | (66) |
Total | $ 41 | $ 51 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense on intangible assets | $ 41 | $ 43 | $ 44 |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Schedule of the Estimated Future Amortization Expenses on Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 39 | |
2023 | 37 | |
2024 | 36 | |
2025 | 34 | |
2026 | 34 | |
Thereafter | 293 | |
Total | $ 473 | $ 522 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 0 | $ 0 | |
Increase to carrying value of equity method investment | 0 | 0 | $ 11,000,000 |
Equity method investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable from equity method investments | 48,000,000 | 52,000,000 | |
Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | $ 28,000,000 | ||
BK Brasil | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 9.40% | ||
Quoted market price | $ 28,000,000 | ||
Wendy's Company TIMWEN Partnership | Tim Hortons brand | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash distributions | 16,000,000 | 8,000,000 | 13,000,000 |
Rent expense | $ 18,000,000 | 15,000,000 | $ 19,000,000 |
United States | Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 15.50% | ||
Canadian | Wendy's Company TIMWEN Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 50.00% | ||
Other assets, net | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 194,000,000 | $ 205,000,000 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Franchise and Property Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from affiliates: | |||
Property revenues | $ 793 | $ 718 | $ 833 |
Total revenues | 5,739 | 4,968 | 5,603 |
Royalties | |||
Revenues from affiliates: | |||
Sales | 1,561 | 1,327 | 1,459 |
Advertising revenues | |||
Revenues from affiliates: | |||
Sales | 909 | 834 | 860 |
Total revenues | 909 | 834 | 860 |
Franchise fees and other revenue | |||
Revenues from affiliates: | |||
Sales | 98 | 76 | 89 |
Affiliates | |||
Revenues from affiliates: | |||
Total revenues | 470 | 335 | 388 |
Affiliates | Royalties | |||
Revenues from affiliates: | |||
Sales | 350 | 239 | 290 |
Affiliates | Advertising revenues | |||
Revenues from affiliates: | |||
Sales | 67 | 50 | 55 |
Affiliates | Property revenues | |||
Revenues from affiliates: | |||
Property revenues | 32 | 32 | 33 |
Affiliates | Franchise fees and other revenue | |||
Revenues from affiliates: | |||
Sales | $ 21 | $ 14 | $ 10 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | ||
Distributions payable | $ 241 | $ 239 |
Interest payable | 63 | 66 |
Accrued compensation and benefits | 99 | 78 |
Taxes payable | 106 | 122 |
Deferred income | 48 | 42 |
Accrued advertising expenses | 43 | 59 |
Restructuring and other provisions | 90 | 12 |
Current portion of operating lease liabilities | $ 140 | $ 137 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Other | $ 117 | $ 80 |
Other accrued liabilities | 947 | 835 |
Non-current: | ||
Taxes payable | 533 | 626 |
Contract liabilities (see Note 15) | 531 | 528 |
Derivatives liabilities | 575 | 865 |
Unfavorable leases | 65 | 81 |
Accrued pension | 47 | 70 |
Deferred income | 37 | 28 |
Other | 34 | 38 |
Other liabilities, net | $ 1,822 | $ 2,236 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 12, 2021 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 | Dec. 31, 2017 | May 17, 2017 |
Debt Instrument [Line Items] | |||||||||
TH Facility and other | $ 173 | $ 178 | |||||||
Less: unamortized deferred financing costs and deferred issuance discount | (138) | (155) | |||||||
Total debt, net | 12,978 | 12,476 | |||||||
Less: current maturities of debt | (62) | (79) | |||||||
Total long-term debt | 12,916 | 12,397 | |||||||
Term Loan B | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 5,243 | 5,297 | |||||||
Term Loan A | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 1,250 | $ 717 | 731 | ||||||
4.25% First Lien Senior Notes due 2024 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | |||||||
Senior notes | $ 0 | 775 | |||||||
3.875% First Lien Senior Notes due 2028 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||||
Senior notes | $ 1,550 | 750 | |||||||
5.75% First Lien Senior Notes due 2025 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 5.75% | ||||||||
Senior notes | 500 | 500 | |||||||
3.50% First Lien Senior Notes due 2029 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 3.50% | ||||||||
Senior notes | $ 750 | 750 | |||||||
4.375% Second Lien Senior Notes due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 4.375% | ||||||||
4.375% Second Lien Senior Notes due 2028 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | |||||||
Senior notes | $ 750 | $ 750 | |||||||
4.00% Second Lien Senior Notes due 2030 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate (as a percent) | 4.00% | ||||||||
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities (Details) | Dec. 13, 2021USD ($)subsidiary | Nov. 19, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 12, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 02, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | |||||||
Capitalized debt issuance costs | $ 19,000,000 | $ 43,000,000 | $ 50,000,000 | ||||
Revolving credit facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior secured revolving credit facility | 1,000,000,000 | ||||||
Commitment fee percentage (as a percent) | 0.15% | ||||||
Minimum liquidity covenant | $ 1,000,000,000 | ||||||
First lien senior secured leverage ratio limit | 6.50 | ||||||
Term Loan A | |||||||
Line of Credit Facility [Line Items] | |||||||
Number of subsidiaries | subsidiary | 2 | ||||||
Term loan facility | $ 1,250,000,000 | $ 717,000,000 | 731,000,000 | ||||
Interest rate, base rate floor (as a percent) | 1.00% | ||||||
Effective interest rate (as a percent) | 1.40% | ||||||
Term Loan A | Term loan A Quarterly Installment, One | |||||||
Line of Credit Facility [Line Items] | |||||||
Quarterly installment payment | $ 8,000,000 | ||||||
Term Loan A | Term loan A Quarterly Installment, Thereafter | |||||||
Line of Credit Facility [Line Items] | |||||||
Quarterly installment payment | $ 16,000,000 | ||||||
Term Loan A | Base rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument floor rate (as a percent) | 0.00% | ||||||
Term Loan A | Base rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument floor rate (as a percent) | 0.50% | ||||||
Term Loan A | Adjusted Term SOFR | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, base rate floor (as a percent) | 0.00% | ||||||
Debt instrument adjustment (as a percent) | 0.10% | ||||||
Term Loan A | Adjusted Term SOFR | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument floor rate (as a percent) | 0.75% | ||||||
Term Loan A | Adjusted Term SOFR | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument floor rate (as a percent) | 1.50% | ||||||
Fifth Incremental Amendment | |||||||
Line of Credit Facility [Line Items] | |||||||
Capitalized debt issuance costs | $ 12,000,000 | ||||||
Term Loan B | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan facility | $ 5,243,000,000 | $ 5,297,000,000 | |||||
Effective interest rate (as a percent) | 1.85% | ||||||
Term Loan B | Term loan A Quarterly Installment, One | |||||||
Line of Credit Facility [Line Items] | |||||||
Quarterly installment payment | $ 13,000,000 | ||||||
Term Loan B | Base rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, base rate floor (as a percent) | 1.00% | ||||||
Debt instrument floor rate (as a percent) | 0.75% | ||||||
Term Loan B | Eurodollar | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, base rate floor (as a percent) | 0.00% | ||||||
Debt instrument floor rate (as a percent) | 1.75% |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Letter of Credit | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument floor rate (as a percent) | 0.75% |
Letter of Credit | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument floor rate (as a percent) | 1.50% |
Line of credit | Revolving credit facility | |
Line of Credit Facility [Line Items] | |
Letter of credit | $ 0 |
Remaining borrowing capacity | 998,000,000 |
Line of credit | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letter of credit | 2,000,000 |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - USD ($) | Jul. 15, 2021 | Jul. 06, 2021 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | May 17, 2017 |
Debt Instrument [Line Items] | |||||||||||
Capitalized debt issuance costs | $ 19,000,000 | $ 43,000,000 | $ 50,000,000 | ||||||||
Loss on early extinguishment of debt | 11,000,000 | 98,000,000 | 23,000,000 | ||||||||
Premiums paid and non-cash loss on early extinguishment of debt | 11,000,000 | $ 97,000,000 | $ 16,000,000 | ||||||||
4.375% Second Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.375% | ||||||||||
Repayments of debt | $ 720,000,000 | ||||||||||
Preferred Share | 4.25% First Lien Senior Notes due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Preferred stock dividend rate percentage (as a percent) | 9.00% | ||||||||||
Senior notes | 4.25% First Lien Senior Notes due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | |||||||||
Aggregate principal amount of debt issued | $ 1,500,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Debt issuance costs, net | $ 13,000,000 | ||||||||||
Principal amount redeemed | $ 775,000,000 | $ 725,000,000 | $ 775,000,000 | ||||||||
Capitalized debt issuance costs | $ 7,000,000 | ||||||||||
Loss on early extinguishment of debt | $ 11,000,000 | $ 19,000,000 | |||||||||
Senior notes | 3.875% First Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||||||
Aggregate principal amount of debt issued | $ 800,000,000 | $ 750,000,000 | |||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 10,000,000 | ||||||||||
Debt instrument redemption price percentage (as a percent) | 100.25% | ||||||||||
Senior notes | Senior Notes 4.625 Due January 15, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.625% | ||||||||||
Principal amount redeemed | $ 1,250,000,000 | ||||||||||
Loss on early extinguishment of debt | $ 3,000,000 | ||||||||||
Senior notes | 5.75% First Lien Senior Notes due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 5.75% | ||||||||||
Aggregate principal amount of debt issued | $ 500,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 10,000,000 | ||||||||||
Senior notes | 3.50% First Lien Senior Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 3.50% | ||||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 7,000,000 | ||||||||||
Senior notes | 4.375% Second Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | |||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Debt issuance costs, net | $ 6,000,000 | ||||||||||
Senior notes | 4.00% Second Lien Senior Notes due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.00% | ||||||||||
Aggregate principal amount of debt issued | $ 2,900,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 26,000,000 | ||||||||||
Senior notes | Senior Notes 5.00 Due October 15, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 5.00% | ||||||||||
Principal amount redeemed | $ 2,800,000,000 | ||||||||||
Loss on early extinguishment of debt | 98,000,000 | ||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | $ 79,000,000 |
Long-Term Debt - Restrictions a
Long-Term Debt - Restrictions and Covenants (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 |
4.375% Second Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | |||||
Senior notes | 3.875% First Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||||
Senior notes | 5.75% First Lien Senior Notes due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 5.75% | |||||
Senior notes | 3.50% First Lien Senior Notes due 2029 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 3.50% | |||||
Senior notes | 4.375% Second Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||
Senior notes | 4.00% Second Lien Senior Notes due 2030 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4.00% | |||||
Line of credit | ||||||
Line of Credit Facility [Line Items] | ||||||
First lien senior secured leverage ratio limit | 6.50 | |||||
Amount of letter of credit outstanding | $ 50,000,000 | |||||
Swingline loans outstanding percentage (as a percent) | 30.00% |
Long-Term Debt - TH Facility an
Long-Term Debt - TH Facility and RE Facility (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)subsidiary | Dec. 31, 2021CAD ($)subsidiary | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
Principal carrying amount of our variable term debt and senior notes | $ 12,978,000,000 | $ 12,476,000,000 | |
New Facility | Line of credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Maximum borrowing capacity | $ 225,000,000 | ||
Number of guaranteed subsidiaries | subsidiary | 4 | 4 | |
Principal carrying amount of our variable term debt and senior notes | $ 214,000,000 | ||
Effective interest rate (as a percent) | 1.85% | 1.85% | |
New Facility | Line of credit | Canadian Bankers' Acceptance rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 1.40% | ||
New Facility | Line of credit | Prime rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 0.40% | ||
RE Facility | Line of credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Maximum borrowing capacity | $ 50,000,000 | ||
Number of guaranteed subsidiaries | subsidiary | 4 | 4 | |
Principal carrying amount of our variable term debt and senior notes | $ 0 | ||
RE Facility | Line of credit | Base rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 0.50% | ||
RE Facility | Line of credit | Adjusted Term SOFR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 1.50% | ||
Interest rate, base rate floor (as a percent) | 0.00% |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs and Loss on Early Extinguishment of Debt (Details) - USD ($) $ in Millions | Jul. 15, 2021 | Nov. 09, 2020 | Sep. 24, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | May 17, 2017 |
Debt Instrument [Line Items] | ||||||||
Capitalized debt issuance costs | $ 19 | $ 43 | $ 50 | |||||
Loss on early extinguishment of debt | 11 | 98 | $ 23 | |||||
Senior notes | 4.25% First Lien Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Capitalized debt issuance costs | $ 7 | |||||||
Loss on early extinguishment of debt | $ 11 | $ 19 | ||||||
Principal amount redeemed | $ 775 | $ 725 | $ 775 | |||||
Stated interest rate (as a percent) | 4.25% | 4.25% | ||||||
Senior notes | Senior Notes 5.00 Due October 15, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | 98 | |||||||
Principal amount redeemed | $ 2,800 | |||||||
Stated interest rate (as a percent) | 5.00% | |||||||
Senior notes | Senior Notes 4.625 Due January 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | 3 | |||||||
Principal amount redeemed | $ 1,250 | |||||||
Stated interest rate (as a percent) | 4.625% |
Long-Term Debt - Schedule of Ag
Long-Term Debt - Schedule of Aggregate Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 62 |
2023 | 98 |
2024 | 108 |
2025 | 750 |
2026 | 6,148 |
Thereafter | 5,950 |
Total | $ 13,116 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Debt | $ 461 | $ 471 | $ 503 |
Finance lease obligations | 20 | 20 | 20 |
Amortization of deferred financing costs and debt issuance discount | 27 | 26 | 29 |
Interest income | (3) | (9) | (20) |
Interest expense, net | 505 | 508 | 532 |
Derivatives designated as net investment hedges | Interest expense, net | Cross-currency rate swaps | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain (loss) recognized in earnings (excluded from effectiveness testing) | $ 45 | $ 69 | $ 70 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)restaurantproperty | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessor, Lease, Description [Line Items] | ||||
Restaurant properties to franchisees leased or subleased | restaurant | 5,069 | |||
Non restaurant properties to third parties under capital and operating leases | property | 164 | |||
Minimum lease term for assets given on lease | 10 years | |||
Maximum lease term for assets given on lease | 20 years | |||
Minimum lease term for assets taken on lease | 10 years | |||
Maximum lease term for assets taken on lease | 20 years | |||
Total shareholders' equity | $ 3,853 | $ 3,721 | $ 4,259 | $ 3,618 |
Variable rent, percentage (as a percent) | 100.00% | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Lessor, Lease, Description [Line Items] | ||||
Total shareholders' equity | $ 21 |
Leases - Schedule of Assets Lea
Leases - Schedule of Assets Lease, Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | $ 2,097 | $ 2,057 |
Accumulated depreciation and amortization | (587) | (534) |
Property and equipment leased, net | 1,510 | 1,523 |
Land | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | 899 | 892 |
Buildings and improvements | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | 1,180 | 1,146 |
Restaurant equipment | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | $ 18 | $ 19 |
Leases - Schedule of Net Invest
Leases - Schedule of Net Investment, Direct Financing Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Future rents to be received: | ||
Future minimum lease receipts | $ 113 | $ 87 |
Contingent rents | 7 | 12 |
Estimated unguaranteed residual value | 5 | 7 |
Unearned income | (40) | (34) |
Net investment, direct financing leases | 85 | 72 |
Current portion included within accounts receivables | (5) | (6) |
Net investment in property leased to franchisees | $ 80 | $ 66 |
Leases - Schedule of Property R
Leases - Schedule of Property Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Rental income: | |||
Minimum lease payments | $ 455 | $ 445 | $ 448 |
Variable lease payments | 329 | 262 | 370 |
Amortization of favorable and unfavorable income lease contracts, net | 3 | 6 | 7 |
Subtotal - lease income from operating leases | 787 | 713 | 825 |
Earned income on direct financing and sales-type leases | 6 | 5 | 8 |
Total property revenues | $ 793 | $ 718 | $ 833 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 202 | $ 199 | $ 210 |
Operating lease variable lease cost | 193 | 177 | 198 |
Finance lease cost: | |||
Amortization of right-of-use assets | 31 | 29 | 27 |
Interest on lease liabilities | 20 | 20 | 20 |
Sublease income | (587) | (534) | (631) |
Total lease cost (income) | $ (141) | $ (109) | $ (176) |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 10 years 1 month 6 days | 10 years 6 months |
Finance leases | 11 years 4 months 24 days | 11 years 3 months 18 days |
Weighted-average discount rate: | ||
Operating leases | 5.50% | 5.90% |
Finance leases | 6.00% | 6.50% |
Leases - Other Information Asso
Leases - Other Information Associated With Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 200 | $ 200 | $ 194 |
Operating cash flows from finance leases | 20 | 20 | 20 |
Financing cash flows from finance leases | 31 | 29 | 26 |
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: | |||
Right-of-use assets obtained in exchange for new finance lease obligations | 52 | 59 | 18 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 133 | $ 118 | $ 163 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Receipts and Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Direct Financing and Sales-Type Leases | ||
2022 | $ 8 | |
2023 | 8 | |
2024 | 7 | |
2025 | 7 | |
2026 | 7 | |
Thereafter | 76 | |
Total minimum receipts / payments | 113 | |
Operating Leases | ||
2022 | 404 | |
2023 | 382 | |
2024 | 350 | |
2025 | 316 | |
2026 | 278 | |
Thereafter | 1,374 | |
Total minimum receipts / payments | 3,104 | |
Finance Leases | ||
2022 | 52 | |
2023 | 50 | |
2024 | 48 | |
2025 | 45 | |
2026 | 41 | |
Thereafter | 262 | |
Total minimum receipts / payments | 498 | |
Less amount representing interest | (131) | |
Present value of minimum lease payments | $ 367 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases |
Current portion of lease obligations | $ (34) | |
Long-term portion of lease obligations | 333 | $ 315 |
Operating Leases | ||
2022 | 197 | |
2023 | 186 | |
2024 | 173 | |
2025 | 158 | |
2026 | 140 | |
Thereafter | 675 | |
Total minimum receipts / payments | 1,529 | |
Less amount representing interest | (319) | |
Present value of minimum lease payments | 1,210 | |
Current portion of lease obligations | (140) | (137) |
Long-term portion of lease obligations | 1,070 | $ 1,082 |
Minimum sublease rentals | $ 1,953 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax [Line Items] | |||
Foreign | $ 906 | $ 616 | $ 767 |
Income before income taxes | 1,363 | 816 | 1,452 |
Canadian | |||
Income Tax [Line Items] | |||
Foreign | $ 457 | $ 200 | $ 685 |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Current Income Tax Expense (Benefit) | $ 115 | $ 274 | $ 283 |
Deferred: | |||
Total | (5) | (208) | 58 |
Income tax expense (benefit) | 110 | 66 | 341 |
Canadian | |||
Current: | |||
Canadian | 16 | 45 | 47 |
Deferred: | |||
Canadian | 32 | (67) | 43 |
United States | |||
Current: | |||
U.S. Federal | (10) | 125 | 122 |
U.S. state, net of federal income tax benefit | 25 | 26 | 20 |
Deferred: | |||
U.S. Federal | (37) | (82) | 8 |
U.S. state, net of federal income tax benefit | (7) | (27) | 0 |
Other Foreign | |||
Current: | |||
Canadian | 84 | 78 | 94 |
Deferred: | |||
Canadian | $ 7 | $ (32) | $ 7 |
Income Taxes - Schedule of US F
Income Taxes - Schedule of US Federal Tax Statutory Rate Reconciles to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 26.50% | 26.50% | 26.50% |
Costs and taxes related to foreign operations | 3.50% | 9.60% | 4.70% |
Foreign exchange gain (loss) | 0.00% | 0.50% | 0.10% |
Foreign tax rate differential | (13.90%) | (15.60%) | (10.80%) |
Change in valuation allowance | 1.10% | 1.20% | 0.50% |
Change in accrual for tax uncertainties | (7.40%) | 3.90% | 5.00% |
Intercompany financing | (3.50%) | (6.10%) | (2.40%) |
Impact of Tax Act | 0.00% | (7.80%) | (0.10%) |
Swiss Tax Reform | 0.00% | (5.10%) | 1.10% |
Benefit from stock option exercises | (0.80%) | (0.30%) | (2.20%) |
Litigation settlements and reserves | 1.40% | 0.00% | 0.00% |
Other | 1.20% | 1.20% | 1.10% |
Effective income tax rate | 8.10% | 8.00% | 23.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2018USD ($) | |
Income Tax [Line Items] | |||||
Impact from TCJA, favorable adjustment | $ 64 | ||||
Decrease in effective tax rate (as a percent) | 0.078 | ||||
Federal act on tax reform and AVS financing, change in tax rate, provisional income tax expense (benefit) | $ (41) | $ 16 | |||
Federal act on tax reform and AVS financing, increase (decrease) in effective rate (as a percent) | (5.10%) | 1.10% | |||
Increase in valuation allowance | $ (8) | ||||
Unrecognized tax benefits | 437 | $ 497 | $ 506 | $ 441 | |
Total amount of accrued interest and penalties | 121 | 123 | |||
Potential interest and penalties associated with uncertain tax positions | $ 2 | $ 31 | $ 41 | ||
Forecast | |||||
Income Tax [Line Items] | |||||
Possible reduction in unrecognized tax benefits in the next twelve months | $ 328 | ||||
Maximum | |||||
Income Tax [Line Items] | |||||
Income tax returns period subject to examination (up to) | 6 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax (Benefit) Expense Allocated to Continuing Operations and Amounts Separately Allocated to Other Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 110 | $ 66 | $ 341 |
Cash flow hedge in accumulated other comprehensive income (loss) | 72 | (64) | (23) |
Net investment hedge in accumulated other comprehensive income (loss) | (15) | (60) | (32) |
Foreign Currency Translation in accumulated other comprehensive income (loss) | (4) | 12 | 0 |
Pension liability in accumulated other comprehensive income (loss) | 3 | (3) | (1) |
Total | $ 166 | $ (49) | $ 285 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Deferred income tax (benefit) expense | $ (22) | $ (230) | $ 30 |
Change in valuation allowance | 14 | 22 | 7 |
Change in effective Canadian income tax rate | 0 | 0 | (1) |
Change in effective U.S. state income tax rate | 3 | 1 | 6 |
Change in effective foreign income tax rate | 0 | (1) | 16 |
Total | $ (5) | $ (208) | $ 58 |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Accounts and notes receivable | $ 4 | $ 6 | ||
Accrued employee benefits | 48 | 54 | ||
Leases | 115 | 114 | ||
Operating lease liabilities | 317 | 323 | ||
Liabilities not currently deductible for tax | 346 | 310 | ||
Tax loss and credit carryforwards | 517 | 547 | ||
Derivatives | 164 | 225 | ||
Other | (1) | 9 | ||
Total gross deferred tax assets | 1,510 | 1,588 | ||
Valuation allowance | (356) | (364) | $ (329) | $ (325) |
Net deferred tax assets | 1,154 | 1,224 | ||
Less deferred tax liabilities: | ||||
Property and equipment, principally due to differences in depreciation | 15 | 35 | ||
Intangible assets | 1,751 | 1,747 | ||
Leases | 129 | 114 | ||
Operating lease assets | 295 | 311 | ||
Statutory impairment | 29 | 30 | ||
Outside basis difference | 38 | 46 | ||
Total gross deferred tax liabilities | 2,257 | 2,283 | ||
Net deferred tax liability | $ 1,103 | $ 1,059 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowance, beginning balance | $ 364 | $ 329 | $ 325 |
Change in estimates recorded to deferred income tax expense | 14 | 19 | 8 |
Changes in losses and credits | 0 | 3 | (2) |
(Reductions) additions related to other comprehensive income | (22) | 13 | (2) |
Valuation Allowance, ending balance | $ 356 | $ 364 | $ 329 |
Income Taxes - Schedule of Amou
Income Taxes - Schedule of Amount and Expiration Dates of Operating Loss and Tax Credit Carry-forwards (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Total | $ 2,719 |
Canadian net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 728 |
Canadian capital loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Capital loss carryforwards | 866 |
Canadian tax credits | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
U.S. foreign tax credits | 3 |
U.S. state net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 680 |
U.S. capital loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Capital loss carryforwards | 16 |
U.S. foreign tax credits | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
U.S. foreign tax credits | 112 |
Foreign tax | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 207 |
Capital loss carryforwards | 30 |
Other foreign net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | $ 77 |
Income Taxes - A Reconciliation
Income Taxes - A Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 497 | $ 506 | $ 441 |
Additions for tax positions related to the current year | 9 | 9 | 9 |
Additions for tax positions of prior years | 23 | 7 | 56 |
Reductions for tax positions of prior year | (5) | (25) | 0 |
Additions for settlement | 7 | 0 | 0 |
Reductions due to statute expiration | (94) | 0 | 0 |
Ending balance | $ 437 | $ 497 | $ 506 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Net unrealized loss in AOCI | $ (96,000,000) | $ 244,000,000 | $ 77,000,000 | |||
Interest Rate Swap - Period One | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 3,500,000,000 | |||||
Net unrealized loss in AOCI | 143,000,000 | |||||
Loss reclassified from AOCI to income | 28,000,000 | |||||
Interest Rate Swap - Period Two | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 500,000,000 | |||||
Interest rate | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 3,500,000,000 | |||||
Net unrealized loss in AOCI | 213,000,000 | |||||
Loss reclassified from AOCI to income | 50,000,000 | |||||
Cross currency interest rate contract | Fixed income interest rate | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 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] | ||||||
Derivative, notional amount | 150,000,000 | $ 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] | ||||||
Derivative, notional amount | 1,200,000,000 | € 1,108 | ||||
Foreign Exchange Contract | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | $ 171,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives designated as cash flow hedges | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ 132 | $ (333) | $ (102) |
Derivatives designated as cash flow hedges | Interest rate swaps | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Reclassified from AOCI into Earnings | (125) | (102) | (26) |
Derivatives designated as cash flow hedges | Forward-currency contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 0 | (2) | (4) |
Derivatives designated as cash flow hedges | Forward-currency contracts | Cost of sales | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Reclassified from AOCI into Earnings | (7) | 2 | 5 |
Derivatives designated as net investment hedges | Cross-currency rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 96 | (302) | (118) |
Derivatives designated as net investment hedges | Cross-currency rate swaps | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 45 | $ 69 | $ 70 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 25 | $ 0 |
Derivative liabilities | 575 | 869 |
Derivatives designated as cash flow hedges | Interest rate | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 220 | 430 |
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] | ||
Derivative assets | 2 | 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] | ||
Derivative liabilities | 0 | 5 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 23 | 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] | ||
Derivative liabilities | $ 355 | $ 434 |
Equity - Additional Information
Equity - Additional Information (Details) | 5 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($)shares | Dec. 31, 2021dayshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019shares | Jul. 28, 2021USD ($) | |
Stockholders Equity [Line Items] | |||||
Number of consecutive trading days | day | 20 | ||||
Exchange of partnership exchange units for RBI common shares (in shares) | 10,393,861 | 42,016,392 | |||
Partners capital account exchanges and conversions (in shares) | 6,757,692 | ||||
Partners capital account converted units, amount | $ | $ 380,000,000 | ||||
Stock repurchase program, authorized amount (up to) | $ | $ 1,000,000,000 | ||||
Shares repurchased and retired during period (in shares) | 9,247,648 | ||||
Stock repurchased and retired during period | $ | $ 551,000,000 | ||||
Partnership exchangeable units | |||||
Stockholders Equity [Line Items] | |||||
Exchange of partnership exchange units for RBI common shares (in shares) | 10,119,880 | 3,636,169 | 42,016,392 |
Equity - Schedule of Change in
Equity - Schedule of Change in the Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,721 | $ 4,259 | $ 3,618 |
Foreign currency translation adjustment | (67) | 332 | 409 |
Net change in fair value of derivatives, net of tax | 207 | (486) | (163) |
Amounts reclassified to earnings of cash flow hedges, net of tax | 96 | 73 | 15 |
Pension and post-retirement benefit plans, net of tax | 15 | (16) | (2) |
Ending balance | 3,853 | 3,721 | 4,259 |
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (107) | 306 | 454 |
Net change in fair value of derivatives, net of tax | 207 | (486) | (163) |
Amounts reclassified to earnings of cash flow hedges, net of tax | 96 | 73 | 15 |
Ending balance | 196 | (107) | 306 |
Pensions | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (45) | (29) | (27) |
Pension and post-retirement benefit plans, net of tax | 15 | (16) | (2) |
Ending balance | (30) | (45) | (29) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,123) | (1,455) | (1,864) |
Foreign currency translation adjustment | (67) | 332 | 409 |
Ending balance | (1,190) | (1,123) | (1,455) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,275) | (1,178) | (1,437) |
Ending balance | $ (1,024) | $ (1,275) | $ (1,178) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20.00% | |||
Unrecognized compensation cost, period for recognition | 2 years 7 months 6 days | |||
Expected term of grant options | 5 years 10 months 17 days | 5 years 10 months 17 days | 6 years 2 months 8 days | |
Fair value of options granted (in usd per share) | $ 10.15 | $ 10.38 | $ 11.83 | |
Total intrinsic value of stock options exercised | $ 46 | $ 55 | $ 200 | |
United States Treasury yield | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term of grant options | 5 years | |||
First anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20.00% | |||
Second anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 40.00% | |||
Third anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 100.00% | |||
2016 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance under the Plan (in shares) | 10,122,551 | |||
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, expiration period | 10 years | |||
Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 189 | |||
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | ||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 100.00% | 100.00% | ||
Employee service period | 2 years | 3 years | ||
Weighted average grant date fair value, over period of time (in usd per share) | $ 62,690,000 | $ 65,540,000 | ||
Performance-based RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service period | 3 years | |||
Performance-based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service period | 5 years | |||
Performance-based RSUs | If employee retires | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 67.00% | 50.00% | ||
Time-vested RSUs and Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Time-vested RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | 3 years | ||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 25.00% | |||
Employee service period | 2 years | |||
Percentage of RSU forfeited (as a percent) | 100.00% | |||
Weighted average grant date fair value, over period of time (in usd per share) | $ 65,200,000 | $ 64,820,000 | ||
Time-vested RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20.00% | |||
Total intrinsic value of vested RSU's | $ 99 | $ 21 | $ 8 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Total share-based compensation expense - Stock options and RSU | $ 88 | $ 74 | $ 68 |
Modification of awards | $ 2 | $ 3 | $ 4 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of the Significant Assumptions Used During the Year to Estimate the Fair Value of Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.29% | 1.29% | 1.82% |
Expected term (in years) | 5 years 10 months 17 days | 5 years 10 months 17 days | 6 years 2 months 8 days |
Expected volatility | 23.90% | 23.90% | 25.50% |
Expected dividend yield | 3.14% | 3.14% | 3.09% |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Option Activity under the Various Plan (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Total Number of Options | |
Outstanding beginning balance (in shares) | shares | 8,202 |
Granted (in shares) | shares | 15 |
Exercised (in shares) | shares | (1,594) |
Forfeited (in shares) | shares | (416) |
Outstanding ending balance (in shares) | shares | 6,207 |
Number of options, exercisable (in shares) | shares | 1,961 |
Number of options, vested or expected to vest (in shares) | shares | 5,671 |
Weighted Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 51.86 |
Granted (in dollars per share) | $ / shares | 65.11 |
Exercised (in dollars per share) | $ / shares | 37.83 |
Forfeited (in dollars per share) | $ / shares | 63 |
Outstanding ending balance (in dollars per share) | $ / shares | 54.80 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | 39.68 |
Weighted average exercise price, vested or expected to vest (in dollars per share) | $ / shares | $ 54.10 |
Stock Option Activity, Additional Disclosures | |
Aggregate intrinsic value, outstanding | $ | $ 48,468 |
Weighted average remaining contractual term | 5 years 7 months 6 days |
Aggregate intrinsic value, exercisable | $ | $ 41,255 |
Weighted average remaining contractual term, exercisable | 3 years 3 months 18 days |
Aggregate intrinsic value, vested or expected to vest | $ | $ 47,650 |
Weighted average remaining contractual term, vested or expected to vest | 5 years 6 months |
Share-based Compensation - Sc_4
Share-based Compensation - Schedule of Time-vested RSUs and Performance-based RSUs Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Time-vested RSUs | |
Total Number of Shares (in 000’s) | |
Outstanding, beginning balance (in shares) | shares | 1,761 |
Granted (in shares) | shares | 1,566 |
Vested and settled (in shares) | shares | (455) |
Dividend equivalents granted (in shares) | shares | 68 |
Forfeited (in shares) | shares | (176) |
Outstanding, ending balance (in shares) | shares | 2,764 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 49.99 |
Granted (in dollars per share) | $ / shares | 60.97 |
Vested and settled (in dollars per share) | $ / shares | 39.54 |
Dividend equivalents granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 61.98 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 57.47 |
Performance-based RSUs | |
Total Number of Shares (in 000’s) | |
Outstanding, beginning balance (in shares) | shares | 4,869 |
Granted (in shares) | shares | 425 |
Vested and settled (in shares) | shares | (1,189) |
Dividend equivalents granted (in shares) | shares | 133 |
Forfeited (in shares) | shares | (343) |
Outstanding, ending balance (in shares) | shares | 3,895 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 56.96 |
Granted (in dollars per share) | $ / shares | 57.60 |
Vested and settled (in dollars per share) | $ / shares | 38.07 |
Dividend equivalents granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 67.36 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 62.09 |
Revenue Recognition - Change in
Revenue Recognition - Change in Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 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 | (57) |
Increase, excluding amounts recognized as revenue during the period | 73 |
Impact of foreign currency translation | (13) |
Ending balance | 531 |
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 | (9) |
Increase, excluding amounts recognized as revenue during the period | 12 |
Impact of foreign currency translation | 0 |
Ending balance | 65 |
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 | (44) |
Increase, excluding amounts recognized as revenue during the period | 40 |
Impact of foreign currency translation | (13) |
Ending balance | 410 |
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 | (4) |
Increase, excluding amounts recognized as revenue during the period | 21 |
Impact of foreign currency translation | 0 |
Ending balance | $ 56 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Recognition (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 531 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 48 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 46 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 45 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 44 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 40 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Contract liabilities expected to be recognized in | $ 308 |
TH | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 65 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 10 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 9 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 8 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 6 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Contract liabilities expected to be recognized in | $ 23 |
BK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 410 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 32 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 31 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Contract liabilities expected to be recognized in | $ 248 |
PLK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 56 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 4 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 4 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 4 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 4 |
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] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 3 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Contract liabilities expected to be recognized in | $ 37 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Total Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | $ 793 | $ 718 | $ 833 |
Total revenues | 5,739 | 4,968 | 5,603 |
Sales | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 2,378 | 2,013 | 2,362 |
Total revenues | 2,378 | 2,013 | 2,362 |
Royalties | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 1,561 | 1,327 | 1,459 |
Franchise fees and other revenue | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 98 | 76 | 89 |
Advertising revenues | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 909 | 834 | 860 |
Total revenues | $ 909 | $ 834 | $ 860 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ 2 | $ 6 | $ 7 |
Litigation settlements and reserves, net | 81 | 7 | 2 |
Net losses (gains) on foreign exchange | (76) | 100 | (15) |
Other, net | 0 | (8) | (4) |
Other operating expenses (income), net | $ 7 | $ 105 | $ (10) |
Other Operating Expenses (Inc_4
Other Operating Expenses (Income), net - (Narratives) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Burger King And Popeyes | China | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Litigation settlement and reserves | $ 100 | $ 72 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments Contingencies And Litigation [Line Items] | |
Litigation settlement | $ 33 |
Purchase commitment | |
Commitments Contingencies And Litigation [Line Items] | |
Contractual obligation related with telecommunication | 3 years |
Purchase of advertising | $ 194 |
Standby letters of credit | |
Commitments Contingencies And Litigation [Line Items] | |
Amount withdrawn from standby letter of credit | 12 |
Letter of credit secured by collateral | $ 2 |
Segment Reporting and Geograp_3
Segment Reporting and Geographical Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021segmentbrand | |
Segment Reporting [Abstract] | |
Number of brands | brand | 4 |
Number of operating segments | 4 |
Number of reportable segments | 4 |
Segment Reporting and Geograp_4
Segment Reporting and Geographical Information - Revenues by Geographic Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 5,739 | $ 4,968 | $ 5,603 |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 3,035 | $ 2,546 | $ 3,037 |
Canada | Sales revenue | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (as a percent) | 10.00% | 10.00% | 10.00% |
United States | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 2,005 | $ 1,889 | $ 1,930 |
United States | Sales revenue | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (as a percent) | 10.00% | 10.00% | 10.00% |
Other | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 699 | $ 533 | $ 636 |
TH | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 3,342 | 2,810 | 3,344 |
BK | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 1,813 | 1,602 | 1,777 |
PLK | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 579 | 556 | 482 |
FHS | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 5 | $ 0 | $ 0 |
Segment Reporting and Geograp_5
Segment Reporting and Geographical Information - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 201 | $ 189 | $ 185 |
TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 132 | 119 | 112 |
BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 62 | 62 | 62 |
PLK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 7 | $ 8 | $ 11 |
Segment Reporting and Geograp_6
Segment Reporting and Geographical Information - (Income) Loss from Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | $ 4 | $ 39 | $ (11) |
TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | (13) | (4) | (7) |
BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | $ 17 | $ 43 | $ (4) |
Segment Reporting and Geograp_7
Segment Reporting and Geographical Information - Capital Expenditure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | $ 106 | $ 117 | $ 62 |
TH | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | 61 | 92 | 37 |
BK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | 34 | 18 | 20 |
PLK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | $ 11 | $ 7 | $ 5 |
Segment Reporting and Geograp_8
Segment Reporting and Geographical Information - Schedule of Segment Related Assets and Long Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | $ 23,246 | $ 22,777 |
Long-Lived Assets | 3,245 | 3,249 |
Canada | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 1,670 | $ 1,685 |
Canada | Geographic concentration risk | Assets, Total | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Percentage of revenue (as a percent) | 10.00% | 10.00% |
United States | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 1,556 | $ 1,539 |
United States | Geographic concentration risk | Assets, Total | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Percentage of revenue (as a percent) | 10.00% | 10.00% |
Other | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 19 | $ 25 |
Operating segments | TH | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 13,995 | 13,963 |
Long-Lived Assets | 1,963 | 1,990 |
Operating segments | BK | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 4,946 | 5,334 |
Long-Lived Assets | 1,137 | 1,128 |
Operating segments | PLK | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 2,563 | 2,525 |
Long-Lived Assets | 141 | 131 |
Operating segments | FHS | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 1,103 | 0 |
Long-Lived Assets | 4 | 0 |
Unallocated | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 639 | 955 |
Long-Lived Assets | $ 0 | $ 0 |
Segment Reporting and Geograp_9
Segment Reporting and Geographical Information - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Adjusted EBITDA | $ 2,248 | $ 1,864 | $ 2,304 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Other operating expenses (income), net | 7 | 105 | (10) |
EBITDA | 2,080 | 1,611 | 2,192 |
Depreciation and amortization | 201 | 189 | 185 |
Income from operations | 1,879 | 1,422 | 2,007 |
Interest expense, net | 505 | 508 | 532 |
Loss on early extinguishment of debt | 11 | 98 | 23 |
Income tax expense | 110 | 66 | 341 |
Net income | 1,253 | 750 | 1,111 |
FHS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
FHS Transaction costs | 18 | 0 | 0 |
TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | (13) | (4) | (7) |
BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | 17 | 43 | (4) |
Operating segments | TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Adjusted EBITDA | 997 | 823 | 1,122 |
Operating segments | BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Adjusted EBITDA | 1,021 | 823 | 994 |
Operating segments | PLK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Adjusted EBITDA | 228 | 218 | 188 |
Operating segments | FHS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Adjusted EBITDA | 2 | 0 | 0 |
Unallocated management G&A | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Share-based compensation and non-cash incentive compensation expense | 102 | 84 | 74 |
Corporate restructuring and tax advisory fees | 16 | 16 | 31 |
Office centralization and relocation costs | 0 | 0 | 6 |
(Income) loss from equity method investments | 25 | 48 | 11 |
Other operating expenses (income), net | $ 7 | $ 105 | $ (10) |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 |
3.875% First Lien Senior Notes due 2028 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||||
5.75% First Lien Senior Notes due 2025 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 5.75% | |||||
3.50% First Lien Senior Notes due 2029 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 3.50% | |||||
4.375% Second Lien Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | |||||
4.375% Second Lien Senior Notes due 2028 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||
4.00% Second Lien Senior Notes due 2030 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.00% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 1,087 | $ 1,560 | $ 1,533 | $ 913 |
Accounts and notes receivable, net | 547 | 536 | ||
Inventories, net | 96 | 96 | ||
Prepaids and other current assets | 86 | 72 | ||
Total current assets | 1,816 | 2,264 | ||
Property and equipment leased, net | 2,035 | 2,031 | ||
Operating lease assets, net | 1,130 | 1,152 | ||
Intangible assets, net | 11,417 | 10,701 | ||
Goodwill | 6,006 | 5,739 | ||
Net investment in property leased to franchisees | 80 | 66 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 762 | 824 | ||
Total assets | 23,246 | 22,777 | ||
Current liabilities: | ||||
Accounts and drafts payable | 614 | 464 | ||
Other accrued liabilities | 947 | 835 | ||
Gift card liability | 221 | 191 | ||
Current portion of long-term debt and finance leases | 96 | 111 | ||
Total current liabilities | 1,878 | 1,601 | ||
Long-term debt, net of current portion | 12,916 | 12,397 | ||
Long-term portion of lease obligations | 333 | 315 | ||
Operating lease liabilities, net of current portion | 1,070 | 1,082 | ||
Other liabilities, net | 1,822 | 2,236 | ||
Payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 1,374 | 1,425 | ||
Total liabilities | 19,393 | 19,056 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (1,024) | (1,275) | ||
Total Partners’ capital | 3,850 | 3,717 | ||
Noncontrolling interests | 3 | 4 | ||
Total equity | 3,853 | 3,721 | 4,259 | 3,618 |
Total liabilities and equity | 23,246 | 22,777 | ||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,421 | 7,994 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | (3,547) | (3,002) | ||
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 leased, 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 | (241) | (239) | ||
Investment in subsidiaries | (3,853) | (3,721) | ||
Other assets, net | 0 | 0 | ||
Total assets | (4,094) | (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 | ||
Long-term portion of lease obligations | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | 0 | ||
Payables to affiliates | (241) | (239) | ||
Deferred income taxes, net | 0 | 0 | ||
Total liabilities | (241) | (239) | ||
Partners’ capital: | ||||
Common shares | (2,635) | (3,026) | ||
Retained earnings | (2,239) | (1,966) | ||
Accumulated other comprehensive income (loss) | 1,024 | 1,275 | ||
Total Partners’ capital | (3,850) | (3,717) | ||
Noncontrolling interests | (3) | (4) | ||
Total equity | (3,853) | (3,721) | ||
Total liabilities and equity | (4,094) | (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 | 1,087 | 1,560 | 1,533 | 913 |
Accounts and notes receivable, net | 547 | 536 | ||
Inventories, net | 96 | 96 | ||
Prepaids and other current assets | 86 | 72 | ||
Total current assets | 1,816 | 2,264 | ||
Property and equipment leased, net | 2,035 | 2,031 | ||
Operating lease assets, net | 1,130 | 1,152 | ||
Intangible assets, net | 11,417 | 10,701 | ||
Goodwill | 6,006 | 5,739 | ||
Net investment in property leased to franchisees | 80 | 66 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 762 | 824 | ||
Total assets | 23,246 | 22,777 | ||
Current liabilities: | ||||
Accounts and drafts payable | 614 | 464 | ||
Other accrued liabilities | 706 | 596 | ||
Gift card liability | 221 | 191 | ||
Current portion of long-term debt and finance leases | 96 | 111 | ||
Total current liabilities | 1,637 | 1,362 | ||
Long-term debt, net of current portion | 12,916 | 12,397 | ||
Long-term portion of lease obligations | 333 | 315 | ||
Operating lease liabilities, net of current portion | 1,070 | 1,082 | ||
Other liabilities, net | 1,822 | 2,236 | ||
Payables to affiliates | 241 | 239 | ||
Deferred income taxes, net | 1,374 | 1,425 | ||
Total liabilities | 19,393 | 19,056 | ||
Partners’ capital: | ||||
Common shares | 2,635 | 3,026 | ||
Retained earnings | 2,239 | 1,966 | ||
Accumulated other comprehensive income (loss) | (1,024) | (1,275) | ||
Total Partners’ capital | 3,850 | 3,717 | ||
Noncontrolling interests | 3 | 4 | ||
Total equity | 3,853 | 3,721 | ||
Total liabilities and equity | 23,246 | 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 leased, 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 | 241 | 239 | ||
Investment in subsidiaries | 3,853 | 3,721 | ||
Other assets, net | 0 | 0 | ||
Total assets | 4,094 | 3,960 | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 241 | 239 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 241 | 239 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Long-term portion of lease obligations | 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 | 241 | 239 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (1,024) | (1,275) | ||
Total Partners’ capital | 3,850 | 3,717 | ||
Noncontrolling interests | 3 | 4 | ||
Total equity | 3,853 | 3,721 | ||
Total liabilities and equity | 4,094 | 3,960 | ||
RBILP | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,421 | 7,994 | ||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | $ (3,547) | $ (3,002) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 5,739 | $ 4,968 | $ 5,603 |
Operating costs and expenses: | |||
Cost of sales | 1,890 | 1,610 | 1,813 |
Franchise and property expenses | 489 | 515 | 533 |
Advertising expenses | 962 | 870 | 865 |
General and administrative expenses | 508 | 407 | 406 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Other operating expenses (income), net | 7 | 105 | (10) |
Total operating costs and expenses | 3,860 | 3,546 | 3,596 |
Income from operations | 1,879 | 1,422 | 2,007 |
Interest expense, net | 505 | 508 | 532 |
Loss on early extinguishment of debt | 11 | 98 | 23 |
Income before income taxes | 1,363 | 816 | 1,452 |
Income tax expense | 110 | 66 | 341 |
Net income | 1,253 | 750 | 1,111 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 |
Net income | 1,253 | 750 | 1,111 |
Net income attributable to noncontrolling interests | 4 | 2 | 2 |
Net income attributable to common unitholders | 1,249 | 748 | 1,109 |
Total comprehensive income (loss) | 1,504 | 653 | 1,370 |
Eliminations | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Operating costs and expenses: | |||
Cost of sales | 0 | 0 | 0 |
Franchise and property expenses | 0 | 0 | 0 |
Advertising expenses | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Other operating expenses (income), net | 0 | 0 | 0 |
Total operating costs and expenses | 0 | 0 | 0 |
Income from operations | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 |
Loss on early extinguishment of debt | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (1,253) | (750) | (1,111) |
Net income | (1,253) | (750) | (1,111) |
Net income attributable to noncontrolling interests | (4) | (2) | (2) |
Net income attributable to common unitholders | (1,249) | (748) | (1,109) |
Total comprehensive income (loss) | (1,504) | (653) | (1,370) |
Consolidated Borrowers | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 5,739 | 4,968 | 5,603 |
Operating costs and expenses: | |||
Cost of sales | 1,890 | 1,610 | 1,813 |
Franchise and property expenses | 489 | 515 | 533 |
Advertising expenses | 962 | 870 | 865 |
General and administrative expenses | 508 | 407 | 406 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Other operating expenses (income), net | 7 | 105 | (10) |
Total operating costs and expenses | 3,860 | 3,546 | 3,596 |
Income from operations | 1,879 | 1,422 | 2,007 |
Interest expense, net | 505 | 508 | 532 |
Loss on early extinguishment of debt | 11 | 98 | 23 |
Income before income taxes | 1,363 | 816 | 1,452 |
Income tax expense | 110 | 66 | 341 |
Net income | 1,253 | 750 | 1,111 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 |
Net income | 1,253 | 750 | 1,111 |
Net income attributable to noncontrolling interests | 4 | 2 | 2 |
Net income attributable to common unitholders | 1,249 | 748 | 1,109 |
Total comprehensive income (loss) | 1,504 | 653 | 1,370 |
RBILP | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Operating costs and expenses: | |||
Cost of sales | 0 | 0 | 0 |
Franchise and property expenses | 0 | 0 | 0 |
Advertising expenses | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Other operating expenses (income), net | 0 | 0 | 0 |
Total operating costs and expenses | 0 | 0 | 0 |
Income from operations | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 |
Loss on early extinguishment of debt | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | 1,253 | 750 | 1,111 |
Net income | 1,253 | 750 | 1,111 |
Net income attributable to noncontrolling interests | 4 | 2 | 2 |
Net income attributable to common unitholders | 1,249 | 748 | 1,109 |
Total comprehensive income (loss) | 1,504 | 653 | 1,370 |
Sales | |||
Revenues: | |||
Total revenues | 2,378 | 2,013 | 2,362 |
Sales | Eliminations | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Sales | Consolidated Borrowers | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 2,378 | 2,013 | 2,362 |
Sales | RBILP | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Franchise and property revenues | |||
Revenues: | |||
Total revenues | 2,452 | 2,121 | 2,381 |
Franchise and property revenues | Eliminations | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 2,452 | 2,121 | 2,381 |
Franchise and property revenues | RBILP | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Advertising revenues | |||
Revenues: | |||
Total revenues | 909 | 834 | 860 |
Advertising revenues | Eliminations | |||
Revenues: | |||
Total revenues | 0 | 0 | 0 |
Advertising revenues | Consolidated Borrowers | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | 909 | 834 | 860 |
Advertising revenues | RBILP | Reportable Legal Entities | |||
Revenues: | |||
Total revenues | $ 0 | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 1,253 | $ 750 | $ 1,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 |
Depreciation and amortization | 201 | 189 | 185 |
Premiums paid and non-cash loss on early extinguishment of debt | 11 | 97 | 16 |
Amortization of deferred financing costs and debt issuance discount | 27 | 26 | 29 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Loss (gain) on remeasurement of foreign denominated transactions | (76) | 100 | (14) |
Net (gains) losses on derivatives | 87 | 32 | (49) |
Share-based compensation and non-cash incentive compensation expense | 102 | 84 | 74 |
Deferred income taxes | (5) | (208) | 58 |
Other | (16) | 28 | 6 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 8 | (30) | (53) |
Inventories and prepaids and other current assets | 12 | (10) | (15) |
Accounts and drafts payable | 149 | (183) | 112 |
Other accrued liabilities and gift card liability | 67 | 6 | (57) |
Tenant inducements paid to franchisees | (20) | (22) | (54) |
Other long-term assets and liabilities | (78) | 23 | 138 |
Net cash provided by operating activities | 1,726 | 921 | 1,476 |
Cash flows from investing activities: | |||
Payments for property and equipment | (106) | (117) | (62) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 16 | 12 | 8 |
Net payment for purchase of Firehouse Subs, net of cash acquired | (1,004) | 0 | 0 |
Settlement/sale of derivatives, net | 5 | 33 | 24 |
Other investing activities, net | (14) | (7) | 0 |
Net cash used for investing activities | (1,103) | (79) | (30) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 1,335 | 5,235 | 2,250 |
Repayments of revolving line of credit, long-term debt and finance leases | (889) | (4,708) | (2,266) |
Payment of financing costs | (19) | (43) | (50) |
Distributions on Class A and Partnership exchangeable units | (974) | (959) | (901) |
Repurchase of Partnership exchangeable units | 0 | (380) | 0 |
Distributions to RBI for repurchase of RBI common shares | (551) | 0 | 0 |
Capital contribution from RBI | 60 | 82 | 102 |
Distributions from subsidiaries | 0 | 0 | 0 |
(Payments) proceeds from derivatives | 23 | ||
(Payments) proceeds from derivatives | (51) | (46) | |
Other financing activities, net | (4) | (2) | 0 |
Net cash used for financing activities | (1,093) | (821) | (842) |
Effect of exchange rates on cash and cash equivalents | (3) | 6 | 16 |
Increase (decrease) in cash and cash equivalents | (473) | 27 | 620 |
Cash and cash equivalents at beginning of period | 1,560 | 1,533 | 913 |
Cash and cash equivalents at end of period | 1,087 | 1,560 | 1,533 |
Eliminations | |||
Cash flows from operating activities: | |||
Net income | (1,253) | (750) | (1,111) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 1,253 | 750 | 1,111 |
Depreciation and amortization | 0 | 0 | 0 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Loss (gain) on remeasurement of foreign denominated transactions | 0 | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 0 | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 | 0 |
Accounts and drafts payable | 0 | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Payments for property and equipment | 0 | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 0 | 0 | 0 |
Net payment for purchase of Firehouse Subs, net of cash acquired | 0 | ||
Settlement/sale of derivatives, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | |
Net cash used for investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 0 | 0 | 0 |
Repayments of revolving line of credit, long-term debt and finance leases | 0 | 0 | 0 |
Payment of financing costs | 0 | 0 | 0 |
Distributions on Class A and Partnership exchangeable units | 0 | 0 | 0 |
Repurchase of Partnership exchangeable units | 0 | ||
Distributions to RBI for repurchase of RBI common shares | 0 | ||
Capital contribution from RBI | 0 | 0 | 0 |
Distributions from subsidiaries | 0 | 0 | 0 |
(Payments) proceeds from derivatives | 0 | ||
(Payments) proceeds from derivatives | 0 | 0 | |
Other financing activities, net | 0 | 0 | |
Net cash used for financing activities | 0 | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Consolidated Borrowers | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 1,253 | 750 | 1,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 |
Depreciation and amortization | 201 | 189 | 185 |
Premiums paid and non-cash loss on early extinguishment of debt | 11 | 97 | 16 |
Amortization of deferred financing costs and debt issuance discount | 27 | 26 | 29 |
(Income) loss from equity method investments | 4 | 39 | (11) |
Loss (gain) on remeasurement of foreign denominated transactions | (76) | 100 | (14) |
Net (gains) losses on derivatives | 87 | 32 | (49) |
Share-based compensation and non-cash incentive compensation expense | 102 | 84 | 74 |
Deferred income taxes | (5) | (208) | 58 |
Other | (16) | 28 | 6 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 8 | (30) | (53) |
Inventories and prepaids and other current assets | 12 | (10) | (15) |
Accounts and drafts payable | 149 | (183) | 112 |
Other accrued liabilities and gift card liability | 67 | 6 | (57) |
Tenant inducements paid to franchisees | (20) | (22) | (54) |
Other long-term assets and liabilities | (78) | 23 | 138 |
Net cash provided by operating activities | 1,726 | 921 | 1,476 |
Cash flows from investing activities: | |||
Payments for property and equipment | (106) | (117) | (62) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 16 | 12 | 8 |
Net payment for purchase of Firehouse Subs, net of cash acquired | (1,004) | ||
Settlement/sale of derivatives, net | 5 | 33 | 24 |
Other investing activities, net | (14) | (7) | |
Net cash used for investing activities | (1,103) | (79) | (30) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 1,335 | 5,235 | 2,250 |
Repayments of revolving line of credit, long-term debt and finance leases | (889) | (4,708) | (2,266) |
Payment of financing costs | (19) | (43) | (50) |
Distributions on Class A and Partnership exchangeable units | 0 | 0 | 0 |
Repurchase of Partnership exchangeable units | 0 | ||
Distributions to RBI for repurchase of RBI common shares | 0 | ||
Capital contribution from RBI | 60 | 82 | 102 |
Distributions from subsidiaries | (1,525) | (1,339) | (901) |
(Payments) proceeds from derivatives | 23 | ||
(Payments) proceeds from derivatives | (51) | (46) | |
Other financing activities, net | (4) | (2) | |
Net cash used for financing activities | (1,093) | (821) | (842) |
Effect of exchange rates on cash and cash equivalents | (3) | 6 | 16 |
Increase (decrease) in cash and cash equivalents | (473) | 27 | 620 |
Cash and cash equivalents at beginning of period | 1,560 | 1,533 | 913 |
Cash and cash equivalents at end of period | 1,087 | 1,560 | 1,533 |
RBILP | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 1,253 | 750 | 1,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | (1,253) | (750) | (1,111) |
Depreciation and amortization | 0 | 0 | 0 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Loss (gain) on remeasurement of foreign denominated transactions | 0 | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 0 | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 | 0 |
Accounts and drafts payable | 0 | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Payments for property and equipment | 0 | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 0 | 0 | 0 |
Net payment for purchase of Firehouse Subs, net of cash acquired | 0 | ||
Settlement/sale of derivatives, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | |
Net cash used for investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 0 | 0 | 0 |
Repayments of revolving line of credit, long-term debt and finance leases | 0 | 0 | 0 |
Payment of financing costs | 0 | 0 | 0 |
Distributions on Class A and Partnership exchangeable units | (974) | (959) | (901) |
Repurchase of Partnership exchangeable units | (380) | ||
Distributions to RBI for repurchase of RBI common shares | (551) | ||
Capital contribution from RBI | 0 | 0 | 0 |
Distributions from subsidiaries | 1,525 | 1,339 | 901 |
(Payments) proceeds from derivatives | 0 | ||
(Payments) proceeds from derivatives | 0 | 0 | |
Other financing activities, net | 0 | 0 | |
Net cash used for financing activities | 0 | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Apr. 06, 2022 | Feb. 15, 2022 | Jan. 05, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share (in dollars per share) | $ 0.54 | |||||
Partnership exchangeable units | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend declared by board (in dollars per share) | $ 2.12 | $ 2.08 | $ 2 | |||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share (in dollars per share) | $ 0.53 | |||||
Cash dividend declared by board (in dollars per share) | $ 0.54 | |||||
Subsequent event | Partnership exchangeable units | Restaurant Brands International Limited Partnership | ||||||
Subsequent Event [Line Items] | ||||||
Partnership exchangeable unit (in dollars per share) | $ 0.54 | $ 0.53 |