☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Canada | 98-1206431 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Toronto, | Ontario | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: None | ||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: | ||||||||||||||
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||||||||
Class B exchangeable limited partnership units | QSP | Toronto Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | |||||||||
Item 1. | |||||||||
Item 2. | |||||||||
Item 3. | |||||||||
Item 4. | |||||||||
Item 1. | |||||||||
Item 6. | |||||||||
As of | As of | |||||||||||||||||
September 30, 2017 | December 31, 2016 | June 30, 2022 | December 31, 2021 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3,547.2 | $ | 1,420.4 | Cash and cash equivalents | $ | 838 | $ | 1,087 | |||||||||
Accounts and notes receivable, net of allowance of $18.2 and $14.3, respectively | 421.9 | 403.5 | ||||||||||||||||
Accounts and notes receivable, net of allowance of $21 and $18, respectively | Accounts and notes receivable, net of allowance of $21 and $18, respectively | 551 | 547 | |||||||||||||||
Inventories, net | 91.9 | 71.8 | Inventories, net | 114 | 96 | |||||||||||||
Advertising fund restricted assets | 110.8 | 57.7 | ||||||||||||||||
Prepaids and other current assets | 108.1 | 103.6 | Prepaids and other current assets | 65 | 86 | |||||||||||||
Total current assets | 4,279.9 | 2,057.0 | Total current assets | 1,568 | 1,816 | |||||||||||||
Property and equipment, net of accumulated depreciation and amortization of $585.1 and $474.5, respectively | 2,158.2 | 2,054.7 | ||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization of $1,027 and $979, respectively | Property and equipment, net of accumulated depreciation and amortization of $1,027 and $979, respectively | 1,984 | 2,035 | |||||||||||||||
Operating lease assets, net | Operating lease assets, net | 1,113 | 1,130 | |||||||||||||||
Intangible assets, net | 11,121.8 | 9,228.0 | Intangible assets, net | 11,296 | 11,417 | |||||||||||||
Goodwill | 5,810.3 | 4,675.1 | Goodwill | 5,866 | 6,006 | |||||||||||||
Net investment in property leased to franchisees | 76.1 | 91.9 | Net investment in property leased to franchisees | 82 | 80 | |||||||||||||
Derivative assets | — | 717.9 | ||||||||||||||||
Other assets, net | 481.6 | 300.7 | Other assets, net | 845 | 762 | |||||||||||||
Total assets | $ | 23,927.9 | $ | 19,125.3 | Total assets | $ | 22,754 | $ | 23,246 | |||||||||
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY | ||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts and drafts payable | $ | 365.2 | $ | 369.8 | Accounts and drafts payable | $ | 705 | $ | 614 | |||||||||
Other accrued liabilities | 530.6 | 469.3 | Other accrued liabilities | 783 | 947 | |||||||||||||
Gift card liability | 130.3 | 194.4 | Gift card liability | 163 | 221 | |||||||||||||
Advertising fund liabilities | 154.1 | 83.3 | ||||||||||||||||
Current portion of long term debt and capital leases | 77.5 | 93.9 | ||||||||||||||||
Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases | 112 | 96 | |||||||||||||||
Total current liabilities | 1,257.7 | 1,210.7 | Total current liabilities | 1,763 | 1,878 | |||||||||||||
Term debt, net of current portion | 11,303.6 | 8,410.2 | ||||||||||||||||
Capital leases, net of current portion | 238.7 | 218.4 | ||||||||||||||||
Long-term debt, net of current portion | Long-term debt, net of current portion | 12,881 | 12,916 | |||||||||||||||
Finance leases, net of current portion | Finance leases, net of current portion | 326 | 333 | |||||||||||||||
Operating lease liabilities, net of current portion | Operating lease liabilities, net of current portion | 1,053 | 1,070 | |||||||||||||||
Other liabilities, net | 1,354.0 | 784.9 | Other liabilities, net | 1,477 | 1,822 | |||||||||||||
Deferred income taxes, net | 2,200.3 | 1,715.1 | Deferred income taxes, net | 1,345 | 1,374 | |||||||||||||
Total liabilities | 16,354.3 | 12,339.3 | Total liabilities | 18,845 | 19,393 | |||||||||||||
Partnership preferred units; no par value; 68,530,939 authorized, issued and outstanding at September 30, 2017 and December 31, 2016 | 3,297.0 | 3,297.0 | ||||||||||||||||
Partners’ capital: | Partners’ capital: | |||||||||||||||||
Class A common units; 202,006,067 issued and outstanding at September 30, 2017 and December 31, 2016 | 3,530.7 | 3,364.1 | ||||||||||||||||
Partnership exchangeable units; 226,839,418 issued and outstanding at September 30, 2017; 226,995,404 issued and outstanding at December 31, 2016 | 1,560.9 | 1,476.2 | ||||||||||||||||
Class A common units; 202,006,067 issued and outstanding at June 30, 2022 and December 31, 2021 | Class A common units; 202,006,067 issued and outstanding at June 30, 2022 and December 31, 2021 | 8,343 | 8,421 | |||||||||||||||
Partnership exchangeable units; 143,316,404 issued and outstanding at June 30, 2022; 144,993,458 issued and outstanding at December 31, 2021 | Partnership exchangeable units; 143,316,404 issued and outstanding at June 30, 2022; 144,993,458 issued and outstanding at December 31, 2021 | (3,599) | (3,547) | |||||||||||||||
Accumulated other comprehensive income (loss) | (818.7 | ) | (1,355.4 | ) | Accumulated other comprehensive income (loss) | (838) | (1,024) | |||||||||||
Total Partners’ capital | 4,272.9 | 3,484.9 | Total Partners’ capital | 3,906 | 3,850 | |||||||||||||
Noncontrolling interests | 3.7 | 4.1 | Noncontrolling interests | 3 | 3 | |||||||||||||
Total equity | 4,276.6 | 3,489.0 | Total equity | 3,909 | 3,853 | |||||||||||||
Total liabilities, Partnership preferred units and equity | $ | 23,927.9 | $ | 19,125.3 | ||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 22,754 | $ | 23,246 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||
Sales | $ | 631.6 | $ | 586.4 | $ | 1,784.1 | $ | 1,635.5 | Sales | $ | 708 | $ | 590 | $ | 1,317 | $ | 1,097 | |||||||||||||||||||||
Franchise and property revenues | 577.0 | 489.3 | 1,557.8 | 1,398.9 | Franchise and property revenues | 676 | 612 | 1,291 | 1,160 | |||||||||||||||||||||||||||||
Advertising revenues and other services | Advertising revenues and other services | 255 | 236 | 482 | 441 | |||||||||||||||||||||||||||||||||
Total revenues | 1,208.6 | 1,075.7 | 3,341.9 | 3,034.4 | Total revenues | 1,639 | 1,438 | 3,090 | 2,698 | |||||||||||||||||||||||||||||
Operating costs and expenses: | Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of sales | 493.3 | 457.1 | 1,376.9 | 1,285.7 | Cost of sales | 584 | 467 | 1,078 | 868 | |||||||||||||||||||||||||||||
Franchise and property expenses | 118.5 | 109.8 | 343.2 | 323.5 | Franchise and property expenses | 125 | 121 | 255 | 237 | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 100.1 | 82.2 | 318.7 | 228.5 | ||||||||||||||||||||||||||||||||||
Advertising expenses and other services | Advertising expenses and other services | 259 | 243 | 506 | 480 | |||||||||||||||||||||||||||||||||
General and administrative expenses | General and administrative expenses | 146 | 108 | 279 | 212 | |||||||||||||||||||||||||||||||||
(Income) loss from equity method investments | (4.1 | ) | (2.6 | ) | (8.9 | ) | (16.6 | ) | (Income) loss from equity method investments | 9 | 3 | 22 | 5 | |||||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | 82.1 | 38.2 | Other operating expenses (income), net | (25) | 8 | (41) | (34) | |||||||||||||||||||||||||||||
Total operating costs and expenses | 729.3 | 655.2 | 2,112.0 | 1,859.3 | Total operating costs and expenses | 1,098 | 950 | 2,099 | 1,768 | |||||||||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 1,229.9 | 1,175.1 | Income from operations | 541 | 488 | 991 | 930 | |||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | 375.4 | 349.6 | Interest expense, net | 129 | 126 | 256 | 250 | |||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | 78.6 | — | ||||||||||||||||||||||||||||||||||
Income before income taxes | 285.1 | 303.2 | 775.9 | 825.5 | Income before income taxes | 412 | 362 | 735 | 680 | |||||||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 119.0 | 171.0 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 66 | (29) | 119 | 18 | |||||||||||||||||||||||||||||||||
Net income | 246.8 | 238.6 | 656.9 | 654.5 | Net income | 346 | 391 | 616 | 662 | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 0.3 | 1.0 | 1.1 | 2.8 | Net income attributable to noncontrolling interests | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||||||
Partnership preferred unit distributions | 67.5 | 67.5 | 202.5 | 202.5 | ||||||||||||||||||||||||||||||||||
Net income attributable to common unitholders | $ | 179.0 | $ | 170.1 | $ | 453.3 | $ | 449.2 | Net income attributable to common unitholders | $ | 345 | $ | 390 | $ | 614 | $ | 660 | |||||||||||||||||||||
Earnings per unit - basic and diluted | Earnings per unit - basic and diluted | |||||||||||||||||||||||||||||||||||||
Class A common units | $ | 0.45 | $ | 0.43 | $ | 1.14 | $ | 1.12 | Class A common units | $ | 1.17 | $ | 1.28 | $ | 2.07 | $ | 2.17 | |||||||||||||||||||||
Partnership exchangeable units | $ | 0.39 | $ | 0.37 | $ | 0.98 | $ | 0.97 | Partnership exchangeable units | $ | 0.77 | $ | 0.84 | $ | 1.36 | $ | 1.43 | |||||||||||||||||||||
Weighted average units outstanding - basic and diluted | ||||||||||||||||||||||||||||||||||||||
Weighted average units outstanding - basic and diluted (in millions): | Weighted average units outstanding - basic and diluted (in millions): | |||||||||||||||||||||||||||||||||||||
Class A common units | 202.0 | 202.0 | 202.0 | 202.0 | Class A common units | 202 | 202 | 202 | 202 | |||||||||||||||||||||||||||||
Partnership exchangeable units | 226.8 | 227.1 | 226.9 | 228.0 | Partnership exchangeable units | 143 | 155 | 144 | 155 | |||||||||||||||||||||||||||||
Distributions per unit | ||||||||||||||||||||||||||||||||||||||
Class A common units | $ | 0.23 | $ | 0.19 | $ | 0.67 | $ | 0.52 | ||||||||||||||||||||||||||||||
Partnership exchangeable units | $ | 0.20 | $ | 0.16 | $ | 0.57 | $ | 0.45 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 656.9 | $ | 654.5 | |||||||
Foreign currency translation adjustment | 423.0 | (131.7 | ) | 884.2 | 538.8 | ||||||||||
Net change in fair value of net investment hedges, net of tax of $45.4, $(2.7), $7.3 and $25.9 | (126.1 | ) | 17.4 | (342.5 | ) | (173.7 | ) | ||||||||
Net change in fair value of cash flow hedges, net of tax of $1.4, $(0.7), $8.2 and $20.7 | (3.9 | ) | 2.4 | (23.0 | ) | (58.6 | ) | ||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax of $(2.5), $(1.9), $(6.3) and $(3.7) | 6.9 | 5.4 | 17.9 | 10.5 | |||||||||||
Pension and post-retirement benefit plans, net of tax of $0, $0, $0.1 and $0 | — | — | (0.1 | ) | — | ||||||||||
Amortization of prior service (credits) costs, net of tax of $0.2, $0.3, $0.8 and $0.9 | (0.5 | ) | (0.4 | ) | (1.3 | ) | (1.3 | ) | |||||||
Amortization of actuarial (gains) losses, net of tax of $0, $0, $0.7 and $(0.1) | 0.3 | 0.1 | 1.5 | 0.2 | |||||||||||
Other comprehensive income (loss) | 299.7 | (106.8 | ) | 536.7 | 315.9 | ||||||||||
Comprehensive income (loss) | 546.5 | 131.8 | 1,193.6 | 970.4 | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0.3 | 1.0 | 1.1 | 2.8 | |||||||||||
Comprehensive income attributable to preferred unitholders | 67.5 | 67.5 | 202.5 | 202.5 | |||||||||||
Comprehensive income (loss) attributable to common unitholders | $ | 478.7 | $ | 63.3 | $ | 990.0 | $ | 765.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 346 | $ | 391 | $ | 616 | $ | 662 | |||||||||||||||
Foreign currency translation adjustment | (345) | 141 | (288) | 195 | |||||||||||||||||||
Net change in fair value of net investment hedges, net of tax of $(38), $21, $(13) and $41 | 226 | (71) | 191 | (42) | |||||||||||||||||||
Net change in fair value of cash flow hedges, net of tax of $(30), $5, $(90) and $(28) | 83 | (40) | 244 | 55 | |||||||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax of $(6), $(4), $(13) and $(12) | 16 | 29 | 37 | 53 | |||||||||||||||||||
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 1 | 1 | 2 | 2 | |||||||||||||||||||
Other comprehensive income (loss) | (19) | 60 | 186 | 263 | |||||||||||||||||||
Comprehensive income (loss) | 327 | 451 | 802 | 925 | |||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 2 | |||||||||||||||||||
Comprehensive income (loss) attributable to common unitholders | $ | 326 | $ | 450 | $ | 800 | $ | 923 |
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||
Balances at December 31, 2016 | 202,006,067 | $ | 3,364.1 | 226,995,404 | $ | 1,476.2 | $ | (1,355.4 | ) | $ | 4.1 | $ | 3,489.0 | ||||||||||||
Distributions declared on Class A common units | — | (134.5 | ) | — | — | — | — | (134.5 | ) | ||||||||||||||||
Distributions declared on partnership exchangeable units | — | — | — | (129.3 | ) | — | — | (129.3 | ) | ||||||||||||||||
Preferred unit distributions | — | (103.2 | ) | — | (99.3 | ) | — | — | (202.5 | ) | |||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 8.3 | (155,986 | ) | (8.3 | ) | — | — | — | ||||||||||||||||
Capital contribution from RBI Inc. | — | 61.8 | — | — | — | — | 61.8 | ||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||||||
Net income | — | 334.2 | — | 321.6 | — | 1.1 | 656.9 | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 536.7 | — | 536.7 | ||||||||||||||||||
Balances at September 30, 2017 | 202,006,067 | $ | 3,530.7 | 226,839,418 | $ | 1,560.9 | $ | (818.7 | ) | $ | 3.7 | $ | 4,276.6 |
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | 202,006,067 | $ | 8,421 | 144,993,458 | $ | (3,547) | $ | (1,024) | $ | 3 | $ | 3,853 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.83 per unit) | — | (167) | — | — | — | — | (167) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.54 per unit) | — | — | — | (78) | — | — | (78) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 84 | (1,525,900) | (84) | — | — | — | ||||||||||||||||||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (161) | — | — | — | — | (161) | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 40 | — | — | — | — | 40 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Net income | — | 183 | — | 86 | — | 1 | 270 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 205 | — | 205 | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | 202,006,067 | $ | 8,400 | 143,467,558 | $ | (3,623) | $ | (819) | $ | 3 | $ | 3,961 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.82 per unit) | — | (166) | — | — | — | — | (166) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.54 per unit) | — | — | — | (77) | — | — | (77) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 8 | (151,154) | (8) | — | — | — | ||||||||||||||||||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (165) | — | — | — | — | (165) | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 30 | — | — | — | — | 30 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Net income | — | 236 | — | 109 | — | 1 | 346 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (19) | — | (19) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | 202,006,067 | $ | 8,343 | 143,316,404 | $ | (3,599) | $ | (838) | $ | 3 | $ | 3,909 | |||||||||||||||||||||||||||||
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 202,006,067 | $ | 7,994 | 155,113,338 | $ | (3,002) | $ | (1,275) | $ | 4 | $ | 3,721 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.81 per unit) | — | (163) | — | — | — | — | (163) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.53 per unit) | — | — | — | (82) | — | — | (82) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 5 | (72,671) | (5) | — | — | — | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 51 | — | — | — | — | 51 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||
Net income | — | 179 | — | 91 | — | 1 | 271 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 203 | — | 203 | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | 202,006,067 | $ | 8,066 | 155,040,667 | $ | (2,998) | $ | (1,072) | $ | 6 | $ | 4,002 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.81 per unit) | — | (164) | — | — | — | — | (164) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.53 per unit) | — | — | — | (82) | — | — | (82) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 6 | (87,767) | (6) | — | — | — | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 55 | — | — | — | — | 55 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||
Net income | — | 259 | — | 131 | — | 1 | 391 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 60 | — | 60 | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 202,006,067 | $ | 8,222 | 154,952,900 | $ | (2,955) | $ | (1,012) | $ | 4 | $ | 4,259 | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||||
2017 | 2016 | 2022 | 2021 | |||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 656.9 | $ | 654.5 | Net income | $ | 616 | $ | 662 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 134.9 | 129.0 | Depreciation and amortization | 97 | 100 | |||||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | 75.9 | — | ||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 25.2 | 29.1 | Amortization of deferred financing costs and debt issuance discount | 14 | 13 | |||||||||||||
(Income) loss from equity method investments | (8.9 | ) | (16.6 | ) | (Income) loss from equity method investments | 22 | 5 | |||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 64.7 | 16.1 | ||||||||||||||||
Net losses on derivatives | 23.1 | 15.3 | ||||||||||||||||
Share-based compensation expense | 38.0 | 25.9 | ||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (Gain) loss on remeasurement of foreign denominated transactions | (52) | (35) | |||||||||||||||
Net (gains) losses on derivatives | Net (gains) losses on derivatives | 27 | 42 | |||||||||||||||
Share-based compensation and non-cash incentive compensation expense | Share-based compensation and non-cash incentive compensation expense | 59 | 46 | |||||||||||||||
Deferred income taxes | (3.1 | ) | 34.6 | Deferred income taxes | — | 24 | ||||||||||||
Other | 12.8 | 8.0 | Other | 2 | (12) | |||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||
Accounts and notes receivable | 0.3 | 20.0 | Accounts and notes receivable | 4 | 17 | |||||||||||||
Inventories and prepaids and other current assets | (12.5 | ) | (3.0 | ) | Inventories and prepaids and other current assets | (27) | (5) | |||||||||||
Accounts and drafts payable | (30.4 | ) | 11.8 | Accounts and drafts payable | 99 | 103 | ||||||||||||
Advertising fund restricted assets and fund liabilities | 18.1 | 4.0 | ||||||||||||||||
Other accrued liabilities and gift card liability | (161.4 | ) | (23.8 | ) | Other accrued liabilities and gift card liability | (199) | (129) | |||||||||||
Tenant inducements paid to franchisees | Tenant inducements paid to franchisees | (6) | (1) | |||||||||||||||
Other long-term assets and liabilities | (40.0 | ) | 0.9 | Other long-term assets and liabilities | 13 | (85) | ||||||||||||
Net cash provided by operating activities | 793.6 | 905.8 | Net cash provided by operating activities | 669 | 745 | |||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||
Payments for property and equipment | (16.9 | ) | (18.2 | ) | Payments for property and equipment | (28) | (46) | |||||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 19.6 | 18.1 | ||||||||||||||||
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9 | ) | — | |||||||||||||||
Return of investment on direct financing leases | 11.8 | 12.5 | ||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | Net proceeds from disposal of assets, restaurant closures, and refranchisings | 10 | 14 | |||||||||||||||
Net payments in connection with purchase of Firehouse Subs | Net payments in connection with purchase of Firehouse Subs | (12) | — | |||||||||||||||
Settlement/sale of derivatives, net | 771.8 | 4.9 | Settlement/sale of derivatives, net | 9 | 1 | |||||||||||||
Other investing activities, net | (2.3 | ) | 2.0 | Other investing activities, net | (25) | (5) | ||||||||||||
Net cash provided by (used for) investing activities | (851.9 | ) | 19.3 | |||||||||||||||
Net cash (used for) provided by investing activities | Net cash (used for) provided by investing activities | (46) | (36) | |||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuance of long-term debt | 4,350.0 | — | ||||||||||||||||
Repayments of long-term debt and capital leases | (1,690.0 | ) | (52.7 | ) | ||||||||||||||
Payment of financing costs | (57.0 | ) | — | |||||||||||||||
Distributions on common, preferred and Partnership exchangeable units | (451.9 | ) | (396.9 | ) | ||||||||||||||
Capital contribution from RBI Inc. | 17.5 | 12.5 | ||||||||||||||||
Distributions to RBI Inc. | — | (28.5 | ) | |||||||||||||||
Proceeds from long-term debt | Proceeds from long-term debt | 2 | — | |||||||||||||||
Repayments of long-term debt and finance leases | Repayments of long-term debt and finance leases | (47) | (54) | |||||||||||||||
Distributions on Class A common and Partnership exchangeable units | Distributions on Class A common and Partnership exchangeable units | (485) | (484) | |||||||||||||||
Distribution to RBI for repurchase of RBI common shares | Distribution to RBI for repurchase of RBI common shares | (326) | — | |||||||||||||||
Capital contribution from RBI | Capital contribution from RBI | 4 | 56 | |||||||||||||||
(Payments) proceeds from derivatives | (Payments) proceeds from derivatives | (6) | (32) | |||||||||||||||
Other financing activities, net | (6.2 | ) | 0.8 | Other financing activities, net | (2) | (2) | ||||||||||||
Net cash provided by (used for) financing activities | 2,162.4 | (464.8 | ) | |||||||||||||||
Net cash (used for) provided by financing activities | Net cash (used for) provided by financing activities | (860) | (516) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | 22.7 | 14.6 | Effect of exchange rates on cash and cash equivalents | (12) | 9 | |||||||||||||
Increase (decrease) in cash and cash equivalents | 2,126.8 | 474.9 | Increase (decrease) in cash and cash equivalents | (249) | 202 | |||||||||||||
Cash and cash equivalents at beginning of period | 1,420.4 | 753.7 | Cash and cash equivalents at beginning of period | 1,087 | 1,560 | |||||||||||||
Cash and cash equivalents at end of period | $ | 3,547.2 | $ | 1,228.6 | Cash and cash equivalents at end of period | $ | 838 | $ | 1,762 | |||||||||
Supplemental cashflow disclosures: | ||||||||||||||||||
Supplemental cash flow disclosures: | Supplemental cash flow disclosures: | |||||||||||||||||
Interest paid | $ | 340.2 | $ | 285.9 | Interest paid | $ | 209 | $ | 198 | |||||||||
Income taxes paid | $ | 189.3 | $ | 93.3 | Income taxes paid | $ | 120 | $ | 142 | |||||||||
Non-cash investing and financing activities: | ||||||||||||||||||
Acquisition of property with capital lease obligations | $ | 23.0 | $ | 22.5 |
March 27, 2017 | |||
Total current assets | $ | 64.4 | |
Property and equipment | 115.2 | ||
Intangible assets | 1,405.2 | ||
Other assets | 0.7 | ||
Total current liabilities | (73.9 | ) | |
Total debt and capital lease obligations | (159.0 | ) | |
Deferred income taxes | (523.2 | ) | |
Other liabilities | (20.5 | ) | |
Total identifiable net assets | 808.9 | ||
Goodwill | 845.8 | ||
Total consideration | $ | 1,654.7 |
Increase (Decrease) in Goodwill | |||
Change in: | |||
Total current assets | $ | — | |
Property and equipment | (18.7 | ) | |
Intangible assets | (385.2 | ) | |
Total current liabilities | (0.8 | ) | |
Deferred income taxes | 164.9 | ||
Other liabilities | 7.3 | ||
Total decrease in goodwill | $ | (232.5 | ) |
December 15, 2021 | |||||
Total current assets | $ | 21 | |||
Property and equipment | 4 | ||||
Firehouse Subs brand | 816 | ||||
Franchise agreements | 19 | ||||
Operating lease assets | 9 | ||||
Total liabilities | (48) | ||||
Total identifiable net assets | 821 | ||||
Goodwill | 195 | ||||
Total consideration | $ | 1,016 |
Increase (Decrease) in Goodwill | |||||
Change in: | |||||
Operating lease assets | $ | (9) | |||
Firehouse Subs brand | (48) | ||||
Franchise agreements | (19) | ||||
Total liabilities | 35 | ||||
Total consideration | (17) | ||||
Total decrease in goodwill | $ | (58) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Lease income - operating leases | |||||||||||||||||||||||
Minimum lease payments | $ | 101 | $ | 117 | $ | 214 | $ | 230 | |||||||||||||||
Variable lease payments | 106 | 84 | 179 | 150 | |||||||||||||||||||
Amortization of favorable and unfavorable income lease contracts, net | 1 | 1 | 1 | 2 | |||||||||||||||||||
Subtotal - lease income from operating leases | 208 | 202 | 394 | 382 | |||||||||||||||||||
Earned income on direct financing and sales-type leases | 1 | 1 | 3 | 3 | |||||||||||||||||||
Total property revenues | $ | 209 | $ | 203 | $ | 397 | $ | 385 |
Contract Liabilities | TH | BK | PLK | FHS | Consolidated | |||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 65 | $ | 410 | $ | 56 | $ | — | $ | 531 | ||||||||||||||||||||||
Effect of business combination | — | — | — | 8 | 8 | |||||||||||||||||||||||||||
Recognized during period and included in the contract liability balance at the beginning of the year | (5) | (21) | (2) | (1) | (29) | |||||||||||||||||||||||||||
Increase, excluding amounts recognized as revenue during the period | 6 | 15 | 6 | 1 | 28 | |||||||||||||||||||||||||||
Impact of foreign currency translation | (1) | (13) | — | — | (14) | |||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 65 | $ | 391 | $ | 60 | $ | 8 | $ | 524 |
Contract liabilities expected to be recognized in | TH | BK | PLK | FHS | Consolidated | |||||||||||||||||||||||||||
Remainder of 2022 | $ | 5 | $ | 17 | $ | 2 | $ | 1 | $ | 25 | ||||||||||||||||||||||
2023 | 10 | 33 | 4 | 2 | 49 | |||||||||||||||||||||||||||
2024 | 9 | 32 | 4 | 1 | 46 | |||||||||||||||||||||||||||
2025 | 8 | 31 | 4 | 1 | 44 | |||||||||||||||||||||||||||
2026 | 7 | 30 | 4 | 1 | 42 | |||||||||||||||||||||||||||
Thereafter | 26 | 248 | 42 | 2 | 318 | |||||||||||||||||||||||||||
Total | $ | 65 | $ | 391 | $ | 60 | $ | 8 | $ | 524 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales | $ | 708 | $ | 590 | $ | 1,317 | $ | 1,097 | |||||||||||||||
Royalties | 438 | 389 | 841 | 735 | |||||||||||||||||||
Property revenues | 209 | 203 | 397 | 385 | |||||||||||||||||||
Franchise fees and other revenue | 29 | 20 | 53 | 40 | |||||||||||||||||||
Advertising revenues and other services | 255 | 236 | 482 | 441 | |||||||||||||||||||
Total revenues | $ | 1,639 | $ | 1,438 | $ | 3,090 | $ | 2,698 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Allocation of net income among partner interests: | |||||||||||||||||||||||
Net income allocated to Class A common unitholders | $ | 236 | $ | 259 | $ | 419 | $ | 438 | |||||||||||||||
Net income allocated to Partnership exchangeable unitholders | 109 | 131 | 195 | 222 | |||||||||||||||||||
Net income attributable to common unitholders | $ | 345 | $ | 390 | $ | 614 | $ | 660 | |||||||||||||||
Denominator - basic and diluted partnership units: | |||||||||||||||||||||||
Weighted average Class A common units | 202 | 202 | 202 | 202 | |||||||||||||||||||
Weighted average Partnership exchangeable units | 143 | 155 | 144 | 155 | |||||||||||||||||||
Earnings per unit - basic and diluted: | |||||||||||||||||||||||
Class A common units (a) | $ | 1.17 | $ | 1.28 | $ | 2.07 | $ | 2.17 | |||||||||||||||
Partnership exchangeable units (a) | $ | 0.77 | $ | 0.84 | $ | 1.36 | $ | 1.43 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Allocation of net income among partner interests: | |||||||||||||||
Net income allocated to Class A common unitholders | $ | 91.3 | $ | 86.3 | $ | 231.0 | $ | 227.2 | |||||||
Net income allocated to Partnership exchangeable unitholders | 87.7 | 83.8 | 222.3 | 222.0 | |||||||||||
Net income attributable to common unitholders | $ | 179.0 | $ | 170.1 | $ | 453.3 | $ | 449.2 | |||||||
Denominator - basic and diluted partnership units: | |||||||||||||||
Weighted average Class A common units | 202.0 | 202.0 | 202.0 | 202.0 | |||||||||||
Weighted average Partnership exchangeable units | 226.8 | 227.1 | 226.9 | 228.0 | |||||||||||
Total weighted average basic and diluted units outstanding | 428.8 | 429.1 | 428.9 | 430.0 | |||||||||||
Earnings per unit - basic and diluted: | |||||||||||||||
Class A common units | $ | 0.45 | $ | 0.43 | $ | 1.14 | $ | 1.12 | |||||||
Partnership exchangeable units | $ | 0.39 | $ | 0.37 | $ | 0.98 | $ | 0.97 |
As of | |||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||||||||||||
Franchise agreements | $ | 724 | $ | (298) | $ | 426 | $ | 722 | $ | (290) | $ | 432 | |||||||||||||||||||||||
Favorable leases | 94 | (57) | 37 | 104 | (63) | 41 | |||||||||||||||||||||||||||||
Subtotal | 818 | (355) | 463 | 826 | (353) | 473 | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Tim Hortons brand | $ | 6,586 | $ | — | $ | 6,586 | $ | 6,695 | $ | — | $ | 6,695 | |||||||||||||||||||||||
Burger King brand | 2,076 | — | 2,076 | 2,126 | — | 2,126 | |||||||||||||||||||||||||||||
Popeyes brand | 1,355 | — | 1,355 | 1,355 | — | 1,355 | |||||||||||||||||||||||||||||
Firehouse Subs brand | 816 | — | 816 | 768 | — | 768 | |||||||||||||||||||||||||||||
Subtotal | 10,833 | — | 10,833 | 10,944 | — | 10,944 | |||||||||||||||||||||||||||||
Intangible assets, net | $ | 11,296 | $ | 11,417 | |||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Tim Hortons segment | $ | 4,239 | $ | 4,306 | |||||||||||||||||||||||||||||||
Burger King segment | 587 | 601 | |||||||||||||||||||||||||||||||||
Popeyes segment | 846 | 846 | |||||||||||||||||||||||||||||||||
Firehouse Subs segment | 194 | 253 | |||||||||||||||||||||||||||||||||
Total | $ | 5,866 | $ | 6,006 |
As of | |||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||
Franchise agreements | $ | 724.3 | $ | (160.3 | ) | $ | 564.0 | $ | 655.1 | $ | (132.4 | ) | $ | 522.7 | |||||||||
Favorable leases | 460.1 | (184.9 | ) | 275.2 | 436.0 | (149.7 | ) | 286.3 | |||||||||||||||
Subtotal | 1,184.4 | (345.2 | ) | 839.2 | 1,091.1 | (282.1 | ) | 809.0 | |||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||
Tim Hortons brand | $ | 6,776.9 | $ | — | $ | 6,776.9 | $ | 6,341.6 | $ | — | $ | 6,341.6 | |||||||||||
Burger King brand | 2,150.8 | — | 2,150.8 | 2,077.4 | — | 2,077.4 | |||||||||||||||||
Popeyes brand | 1,354.9 | — | 1,354.9 | — | — | — | |||||||||||||||||
Subtotal | 10,282.6 | — | 10,282.6 | 8,419.0 | — | 8,419.0 | |||||||||||||||||
Intangible assets, net | $ | 11,121.8 | $ | 9,228.0 | |||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Tim Hortons segment | $ | 4,356.9 | $ | 4,087.8 | |||||||||||||||||||
Burger King segment | 607.6 | 587.3 | |||||||||||||||||||||
Popeyes segment | 845.8 | — | |||||||||||||||||||||
Total | $ | 5,810.3 | $ | 4,675.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues from affiliates: | |||||||||||||||||||||||
Royalties | $ | 86 | $ | 78 | $ | 174 | $ | 143 | |||||||||||||||
Advertising revenues and other services | 18 | 15 | 34 | 28 | |||||||||||||||||||
Property revenues | 8 | 8 | 15 | 16 | |||||||||||||||||||
Franchise fees and other revenue | 5 | 4 | 9 | 8 | |||||||||||||||||||
Total | $ | 117 | $ | 105 | $ | 232 | $ | 195 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues from affiliates: | |||||||||||||||
Franchise royalties | $ | 39.2 | $ | 34.9 | $ | 121.1 | $ | 94.2 | |||||||
Property revenues | 7.2 | 6.9 | 20.1 | 21.1 | |||||||||||
Franchise fees and other revenue | 3.7 | 6.8 | 14.7 | 14.7 | |||||||||||
Total | $ | 50.1 | $ | 48.6 | $ | 155.9 | $ | 130.0 |
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Current: | |||||||||||
Distribution payable | $ | 243 | $ | 241 | |||||||
Interest payable | 68 | 63 | |||||||||
Accrued compensation and benefits | 67 | 99 | |||||||||
Taxes payable | 88 | 106 | |||||||||
Deferred income | 47 | 48 | |||||||||
Accrued advertising expenses | 30 | 43 | |||||||||
Restructuring and other provisions | 20 | 90 | |||||||||
Current portion of operating lease liabilities | 141 | 140 | |||||||||
Other | 79 | 117 | |||||||||
Other accrued liabilities | $ | 783 | $ | 947 | |||||||
Noncurrent: | |||||||||||
Taxes payable | $ | 541 | $ | 533 | |||||||
Contract liabilities | 524 | 531 | |||||||||
Derivatives liabilities | 234 | 575 | |||||||||
Unfavorable leases | 58 | 65 | |||||||||
Accrued pension | 47 | 47 | |||||||||
Deferred income | 46 | 37 | |||||||||
Other | 27 | 34 | |||||||||
Other liabilities, net | $ | 1,477 | $ | 1,822 |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Current: | |||||||
Dividend payable | $ | 160.3 | $ | 146.1 | |||
Interest payable | 63.9 | 63.3 | |||||
Accrued compensation and benefits | 65.5 | 60.5 | |||||
Taxes payable | 83.2 | 43.3 | |||||
Deferred income | 49.7 | 54.7 | |||||
Closed property reserve | 11.1 | 11.0 | |||||
Restructuring and other provisions | 10.6 | 9.1 | |||||
Other | 86.3 | 81.3 | |||||
Other accrued liabilities | $ | 530.6 | $ | 469.3 | |||
Noncurrent: | |||||||
Unfavorable leases | $ | 264.7 | $ | 275.8 | |||
Taxes payable | 390.0 | 252.2 | |||||
Accrued pension | 77.5 | 82.9 | |||||
Derivatives liabilities | 479.2 | 55.1 | |||||
Lease liability | 26.0 | 27.2 | |||||
Deferred income | 40.5 | 27.1 | |||||
Other | 76.1 | 64.6 | |||||
Other liabilities, net | $ | 1,354.0 | $ | 784.9 |
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Term Loan B | $ | 5,216 | $ | 5,243 | |||||||
Term Loan A | 1,250 | 1,250 | |||||||||
3.875% First Lien Senior Notes due 2028 | 1,550 | 1,550 | |||||||||
3.50% First Lien Senior Notes due 2029 | 750 | 750 | |||||||||
5.75% First Lien Senior Notes due 2025 | 500 | 500 | |||||||||
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 | 168 | 173 | |||||||||
Less: unamortized deferred financing costs and deferred issue discount | (125) | (138) | |||||||||
Total debt, net | 12,959 | 12,978 | |||||||||
Less: current maturities of debt | (78) | (62) | |||||||||
Total long-term debt | $ | 12,881 | $ | 12,916 |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Term Loan Facility (due February 17, 2024) | $ | 6,404.8 | $ | 5,046.1 | |||
2017 4.25% Senior Notes (due May 15, 2024) | 1,500.0 | — | |||||
2015 4.625% Senior Notes (due January 15, 2022) | 1,250.0 | 1,250.0 | |||||
2017 5.00% Senior Notes (due October 15, 2025) | 1,300.0 | — | |||||
2014 6.00% Senior Notes (due April 1, 2022) | 1,000.0 | 2,250.0 | |||||
Tim Hortons Notes (a) | 5.2 | 40.6 | |||||
Other | 86.1 | 85.4 | |||||
Less: unamortized deferred financing costs and deferred issue discount | (185.8 | ) | (187.1 | ) | |||
Total debt, net | 11,360.3 | 8,485.0 | |||||
Less: current maturities of debt | (56.7 | ) | (74.8 | ) | |||
Total long-term debt | $ | 11,303.6 | $ | 8,410.2 |
As of | |||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Fair value of our variable term debt and senior notes | $ | 11,697 | $ | 12,851 | |||||||
Principal carrying amount of our variable term debt and senior notes | 12,916 | 12,943 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Debt (a) | $ | 118 | $ | 115 | $ | 233 | $ | 228 | |||||||||||||||
Finance lease obligations | 5 | 5 | 10 | 10 | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | 6 | 14 | 13 | |||||||||||||||||||
Interest income | (1) | — | (1) | (1) | |||||||||||||||||||
Interest expense, net | $ | 129 | $ | 126 | $ | 256 | $ | 250 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Debt | $ | 131.2 | $ | 103.6 | $ | 350.1 | $ | 308.3 | |||||||
Capital lease obligations | 5.4 | 5.2 | 15.4 | 15.0 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.8 | 25.2 | 29.1 | |||||||||||
Interest income | (9.1 | ) | (1.3 | ) | (15.3 | ) | (2.8 | ) | |||||||
Interest expense, net | $ | 136.0 | $ | 117.3 | $ | 375.4 | $ | 349.6 |
Derivatives | Pensions | Foreign Currency Translation | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance at December 31, 2021 | $ | 196 | $ | (30) | $ | (1,190) | $ | (1,024) | |||||||||||||||
Foreign currency translation adjustment | — | — | (288) | (288) | |||||||||||||||||||
Net change in fair value of derivatives, net of tax | 435 | — | — | 435 | |||||||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 37 | — | — | 37 | |||||||||||||||||||
Gain (loss) recognized on other, net of tax | — | 2 | — | 2 | |||||||||||||||||||
Balance at June 30, 2022 | $ | 668 | $ | (28) | $ | (1,478) | $ | (838) |
Derivatives | Pensions | Foreign Currency Translation | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balances at December 31, 2016 | $ | 533.1 | $ | (32.8 | ) | $ | (1,855.7 | ) | $ | (1,355.4 | ) | ||||
Foreign currency translation adjustment | — | — | 884.2 | 884.2 | |||||||||||
Net change in fair value of derivatives, net of tax | (365.5 | ) | — | — | (365.5 | ) | |||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 17.9 | — | — | 17.9 | |||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||
Amortization of prior service (credits) costs, net of tax | — | (1.3 | ) | — | (1.3 | ) | |||||||||
Amortization of actuarial (gains) losses, net of tax | — | 1.5 | — | 1.5 | |||||||||||
Balances at September 30, 2017 | $ | 185.5 | $ | (32.7 | ) | $ | (971.5 | ) | $ | (818.7 | ) |
Amounts Reclassified from AOCI | ||||||||||||||||||
Affected Line Item in the Statement of Operations | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Details about AOCI Components | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (8.2 | ) | $ | (5.9 | ) | $ | (23.1 | ) | $ | (15.3 | ) | |||||
Forward-currency contracts | Cost of sales | (1.2 | ) | (1.4 | ) | (1.1 | ) | 1.1 | ||||||||||
Total before tax | (9.4 | ) | (7.3 | ) | (24.2 | ) | (14.2 | ) | ||||||||||
Income tax (expense) benefit | 2.5 | 1.9 | 6.3 | 3.7 | ||||||||||||||
Net of tax | $ | (6.9 | ) | $ | (5.4 | ) | $ | (17.9 | ) | $ | (10.5 | ) | ||||||
Defined benefit pension: | ||||||||||||||||||
Amortization of prior service credits (costs) | SG&A (a) | $ | 0.7 | $ | 0.7 | $ | 2.1 | $ | 2.2 | |||||||||
Amortization of actuarial gains (losses) | SG&A (a) | (0.3 | ) | (0.1 | ) | (0.8 | ) | (0.3 | ) | |||||||||
Total before tax | 0.4 | 0.6 | 1.3 | 1.9 | ||||||||||||||
Income tax (expense) benefit | (0.2 | ) | (0.3 | ) | (1.5 | ) | (0.8 | ) | ||||||||||
Net of tax | $ | 0.2 | $ | 0.3 | $ | (0.2 | ) | $ | 1.1 | |||||||||
Total reclassifications | Net of tax | $ | (6.7 | ) | $ | (5.1 | ) | $ | (18.1 | ) | $ | (9.4 | ) |
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Derivatives designated as cash flow hedges(1) | |||||||||||||||||||||||
Interest rate swaps | $ | 107 | $ | (44) | $ | 330 | $ | 85 | |||||||||||||||
Forward-currency contracts | $ | 6 | $ | (1) | $ | 4 | $ | (2) | |||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Cross-currency rate swaps | $ | 264 | $ | (92) | $ | 204 | $ | (83) |
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | Location of Gain or (Loss) Reclassified from AOCI into Earnings | Gain or (Loss) Reclassified from AOCI into Earnings | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||
Forward-starting interest rate swaps | $ | (0.1 | ) | $ | 1.0 | $ | (20.5 | ) | $ | (71.6 | ) | ||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | Interest expense, net | $ | (23) | $ | (31) | $ | (52) | $ | (61) | |||||||||||||||||||||||||||||||||||||
Forward-currency contracts | $ | (5.2 | ) | $ | 2.1 | $ | (10.7 | ) | $ | (7.7 | ) | Forward-currency contracts | Cost of sales | $ | 1 | $ | (2) | $ | 2 | $ | (4) | ||||||||||||||||||||||||||
Location of Gain or (Loss) Recognized in Earnings | Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as net investment hedges | Derivatives designated as net investment hedges | ||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency rate swaps | $ | (171.5 | ) | $ | 20.1 | $ | (349.8 | ) | $ | (199.6 | ) | Cross-currency rate swaps | Interest expense, net | $ | 12 | $ | 11 | $ | 23 | $ | 23 |
Classification on Condensed Consolidated Statements of Operations | Gain (Loss) Reclassified from AOCI into Earnings | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest expense, net | $ | (8.2 | ) | $ | (5.9 | ) | $ | (23.1 | ) | $ | (15.3 | ) | |||
Cost of sales | $ | (1.2 | ) | $ | (1.4 | ) | $ | (1.1 | ) | $ | 1.1 |
Fair Value as of | |||||||||||
September 30, 2017 | December 31, 2016 | Balance Sheet Location | |||||||||
Assets: | |||||||||||
Derivatives designated as cash flow hedges | |||||||||||
Foreign currency | $ | 0.4 | $ | 2.8 | Prepaids and other current assets | ||||||
Derivatives designated as net investment hedges | |||||||||||
Foreign currency | — | 717.9 | Derivative assets | ||||||||
Total assets at fair value | $ | 0.4 | $ | 720.7 | |||||||
Liabilities: | |||||||||||
Derivatives designated as cash flow hedges | |||||||||||
Interest rate | $ | 61.8 | $ | 55.1 | Other liabilities, net | ||||||
Foreign currency | 8.6 | 1.1 | Other accrued liabilities | ||||||||
Derivatives designated as net investment hedges | |||||||||||
Foreign currency | 417.4 | — | Other liabilities, net | ||||||||
Total liabilities at fair value | $ | 487.8 | $ | 56.2 |
Fair Value as of | |||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | Balance Sheet Location | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||
Interest rate | $ | 131 | $ | — | Other assets, net | ||||||||||||||||||
Foreign currency | 4 | 2 | Prepaids and other current assets | ||||||||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Foreign currency | 107 | 23 | Other assets, net | ||||||||||||||||||||
Total assets at fair value | $ | 242 | $ | 25 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||
Interest rate | $ | — | $ | 220 | Other liabilities, net | ||||||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Foreign currency | 234 | 355 | Other liabilities, net | ||||||||||||||||||||
Total liabilities at fair value | $ | 234 | $ | 575 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Franchise royalties | $ | 332.8 | $ | 261.1 | $ | 883.5 | $ | 738.7 | |||||||
Property revenues | 204.1 | 194.6 | 568.4 | 563.9 | |||||||||||
Franchise fees and other revenue | 40.1 | 33.6 | 105.9 | 96.3 | |||||||||||
Franchise and property revenues | $ | 577.0 | $ | 489.3 | $ | 1,557.8 | $ | 1,398.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 3.4 | $ | 3.3 | $ | 14.9 | $ | 19.6 | Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | (1) | $ | 1 | $ | 1 | $ | (1) | |||||||||||||||||||||
Litigation settlements and reserves, net | 0.6 | 0.4 | 1.7 | 2.0 | ||||||||||||||||||||||||||||||||||
Litigation settlements (gains) and reserves, net | Litigation settlements (gains) and reserves, net | 2 | 1 | 3 | 3 | |||||||||||||||||||||||||||||||||
Net losses (gains) on foreign exchange | 17.7 | 4.1 | 64.9 | 16.1 | Net losses (gains) on foreign exchange | (31) | 8 | (52) | (35) | |||||||||||||||||||||||||||||
Other, net | (0.2 | ) | 0.9 | 0.6 | 0.5 | Other, net | 5 | (2) | 7 | (1) | ||||||||||||||||||||||||||||
Other operating expenses (income), net | $ | 21.5 | $ | 8.7 | $ | 82.1 | $ | 38.2 | Other operating expenses (income), net | $ | (25) | $ | 8 | $ | (41) | $ | (34) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues by operating segment: | |||||||||||||||||||||||
TH | $ | 968 | $ | 831 | $ | 1,797 | $ | 1,541 | |||||||||||||||
BK | 473 | 459 | 916 | 866 | |||||||||||||||||||
PLK | 165 | 148 | 313 | 291 | |||||||||||||||||||
FHS | 33 | — | 64 | — | |||||||||||||||||||
Total revenues | $ | 1,639 | $ | 1,438 | $ | 3,090 | $ | 2,698 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues by operating segment: | |||||||||||||||
TH | $ | 827.0 | $ | 789.9 | $ | 2,332.9 | $ | 2,207.5 | |||||||
BK | 313.6 | 285.8 | 874.3 | 826.9 | |||||||||||
PLK | 68.0 | — | 134.7 | — | |||||||||||
Total revenues | $ | 1,208.6 | $ | 1,075.7 | $ | 3,341.9 | $ | 3,034.4 | |||||||
Revenues by country (a): | |||||||||||||||
Canada | $ | 748.7 | $ | 708.8 | $ | 2,093.6 | $ | 1,973.0 | |||||||
United States | 310.5 | 249.2 | 856.1 | 725.0 | |||||||||||
Other | 149.4 | 117.7 | 392.2 | 336.4 | |||||||||||
Total revenues | $ | 1,208.6 | $ | 1,075.7 | $ | 3,341.9 | $ | 3,034.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues by country (a): | |||||||||||||||||||||||
Canada | $ | 878 | $ | 754 | $ | 1,625 | $ | 1,392 | |||||||||||||||
United States | 571 | 515 | 1,092 | 993 | |||||||||||||||||||
Other | 190 | 169 | 373 | 313 | |||||||||||||||||||
Total revenues | $ | 1,639 | $ | 1,438 | $ | 3,090 | $ | 2,698 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Segment income: | |||||||||||||||||||||||
TH | $ | 274 | $ | 253 | $ | 505 | $ | 460 | |||||||||||||||
BK | 270 | 266 | 499 | 483 | |||||||||||||||||||
PLK | 61 | 58 | 117 | 114 | |||||||||||||||||||
FHS | 13 | — | 27 | — | |||||||||||||||||||
Adjusted EBITDA | 618 | 577 | 1,148 | 1,057 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 32 | 20 | 59 | 46 | |||||||||||||||||||
FHS Transaction costs | 4 | — | 5 | — | |||||||||||||||||||
Corporate restructuring and tax advisory fees | 6 | 3 | 9 | 4 | |||||||||||||||||||
Impact of equity method investments (a) | 12 | 7 | 28 | 11 | |||||||||||||||||||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | |||||||||||||||||||
EBITDA | 589 | 539 | 1,088 | 1,030 | |||||||||||||||||||
Depreciation and amortization | 48 | 51 | 97 | 100 | |||||||||||||||||||
Income from operations | 541 | 488 | 991 | 930 | |||||||||||||||||||
Interest expense, net | 129 | 126 | 256 | 250 | |||||||||||||||||||
Income tax expense | 66 | (29) | 119 | 18 | |||||||||||||||||||
Net income | $ | 346 | $ | 391 | $ | 616 | $ | 662 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment income: | |||||||||||||||
TH | $ | 294.4 | $ | 287.1 | $ | 831.7 | $ | 793.9 | |||||||
BK | 233.9 | 201.8 | 637.8 | 581.9 | |||||||||||
PLK | 36.8 | — | 70.0 | — | |||||||||||
Adjusted EBITDA | 565.1 | 488.9 | 1,539.5 | 1,375.8 | |||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | 42.9 | 31.0 | |||||||||||
PLK Transaction costs | 6.9 | — | 49.8 | — | |||||||||||
Integration costs | — | 4.4 | — | 10.4 | |||||||||||
Impact of equity method investments (a) | (1.3 | ) | 0.3 | (0.1 | ) | (7.6 | ) | ||||||||
Other operating expenses (income), net | 21.5 | 8.7 | 82.1 | 38.2 | |||||||||||
EBITDA | 525.5 | 463.7 | 1,364.8 | 1,303.8 | |||||||||||
Depreciation and amortization | 46.2 | 43.2 | 134.9 | 128.7 | |||||||||||
Income from operations | 479.3 | 420.5 | 1,229.9 | 1,175.1 | |||||||||||
Interest expense, net | 136.0 | 117.3 | 375.4 | 349.6 | |||||||||||
Loss on early extinguishment of debt | 58.2 | — | 78.6 | — | |||||||||||
Income tax expense | 38.3 | 64.6 | 119.0 | 171.0 | |||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 656.9 | $ | 654.5 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 838 | $ | — | $ | — | $ | 838 | |||||||||||||||
Accounts and notes receivable, net | 551 | — | — | 551 | |||||||||||||||||||
Inventories, net | 114 | — | — | 114 | |||||||||||||||||||
Prepaids and other current assets | 65 | — | — | 65 | |||||||||||||||||||
Total current assets | 1,568 | — | — | 1,568 | |||||||||||||||||||
Property and equipment, net | 1,984 | — | — | 1,984 | |||||||||||||||||||
Operating lease assets, net | 1,113 | — | — | 1,113 | |||||||||||||||||||
Intangible assets, net | 11,296 | — | — | 11,296 | |||||||||||||||||||
Goodwill | 5,866 | — | — | 5,866 | |||||||||||||||||||
Net investment in property leased to franchisees | 82 | — | — | 82 | |||||||||||||||||||
Intercompany receivable | — | 243 | (243) | — | |||||||||||||||||||
Investment in subsidiaries | — | 3,909 | (3,909) | — | |||||||||||||||||||
Other assets, net | 845 | — | — | 845 | |||||||||||||||||||
Total assets | $ | 22,754 | $ | 4,152 | $ | (4,152) | $ | 22,754 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts and drafts payable | $ | 705 | $ | — | $ | — | $ | 705 | |||||||||||||||
Other accrued liabilities | 540 | 243 | — | 783 | |||||||||||||||||||
Gift card liability | 163 | — | — | 163 | |||||||||||||||||||
Current portion of long-term debt and finance leases | 112 | — | — | 112 | |||||||||||||||||||
Total current liabilities | 1,520 | 243 | — | 1,763 | |||||||||||||||||||
Long-term debt, net of current portion | 12,881 | — | — | 12,881 | |||||||||||||||||||
Finance leases, net of current portion | 326 | — | — | 326 | |||||||||||||||||||
Operating lease liabilities, net of current portion | 1,053 | — | — | 1,053 | |||||||||||||||||||
Other liabilities, net | 1,477 | — | — | 1,477 | |||||||||||||||||||
Payables to affiliates | 243 | — | (243) | — | |||||||||||||||||||
Deferred income taxes, net | 1,345 | — | — | 1,345 | |||||||||||||||||||
Total liabilities | 18,845 | 243 | (243) | 18,845 | |||||||||||||||||||
Partners’ capital: | |||||||||||||||||||||||
Class A common units | — | 8,343 | — | 8,343 | |||||||||||||||||||
Partnership exchangeable units | — | (3,599) | — | (3,599) | |||||||||||||||||||
Common shares | 2,379 | — | (2,379) | — | |||||||||||||||||||
Retained earnings | 2,365 | — | (2,365) | — | |||||||||||||||||||
Accumulated other comprehensive income (loss) | (838) | (838) | 838 | (838) | |||||||||||||||||||
Total Partners' capital/shareholders' equity | 3,906 | 3,906 | (3,906) | 3,906 | |||||||||||||||||||
Noncontrolling interests | 3 | 3 | (3) | 3 | |||||||||||||||||||
Total equity | 3,909 | 3,909 | (3,909) | 3,909 | |||||||||||||||||||
Total liabilities and equity | $ | 22,754 | $ | 4,152 | $ | (4,152) | $ | 22,754 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 3,547.2 | $ | — | $ | — | $ | 3,547.2 | |||||||
Accounts and notes receivable, net | 421.9 | — | — | 421.9 | |||||||||||
Inventories, net | 91.9 | — | — | 91.9 | |||||||||||
Advertising fund restricted assets | 110.8 | — | — | 110.8 | |||||||||||
Prepaids and other current assets | 108.1 | — | — | 108.1 | |||||||||||
Total current assets | 4,279.9 | — | — | 4,279.9 | |||||||||||
Property and equipment, net | 2,158.2 | — | — | 2,158.2 | |||||||||||
Intangible assets, net | 11,121.8 | — | — | 11,121.8 | |||||||||||
Goodwill | 5,810.3 | — | — | 5,810.3 | |||||||||||
Net investment in property leased to franchisees | 76.1 | — | — | 76.1 | |||||||||||
Intercompany receivable | — | 160.3 | (160.3 | ) | — | ||||||||||
Investment in subsidiaries | — | 7,573.6 | (7,573.6 | ) | — | ||||||||||
Other assets, net | 481.6 | — | — | 481.6 | |||||||||||
Total assets | $ | 23,927.9 | $ | 7,733.9 | $ | (7,733.9 | ) | $ | 23,927.9 | ||||||
LIABILITIES, PREFERRED UNITS AND EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts and drafts payable | $ | 365.2 | $ | — | $ | — | $ | 365.2 | |||||||
Other accrued liabilities | 370.3 | 160.3 | — | 530.6 | |||||||||||
Gift card liability | 130.3 | — | — | 130.3 | |||||||||||
Advertising fund liabilities | 154.1 | — | — | 154.1 | |||||||||||
Current portion of long term debt and capital leases | 77.5 | — | — | 77.5 | |||||||||||
Total current liabilities | 1,097.4 | 160.3 | — | 1,257.7 | |||||||||||
Term debt, net of current portion | 11,303.6 | — | — | 11,303.6 | |||||||||||
Capital leases, net of current portion | 238.7 | — | — | 238.7 | |||||||||||
Other liabilities, net | 1,354.0 | — | — | 1,354.0 | |||||||||||
Payables to affiliates | 160.3 | — | (160.3 | ) | — | ||||||||||
Deferred income taxes, net | 2,200.3 | — | — | 2,200.3 | |||||||||||
Total liabilities | 16,354.3 | 160.3 | (160.3 | ) | 16,354.3 | ||||||||||
Partnership preferred units | — | 3,297.0 | — | 3,297.0 | |||||||||||
Partners’ capital: | |||||||||||||||
Class A common units | — | 3,530.7 | — | 3,530.7 | |||||||||||
Partnership exchangeable units | — | 1,560.9 | — | 1,560.9 | |||||||||||
Common shares | 6,887.6 | — | (6,887.6 | ) | — | ||||||||||
Retained Earnings | 1,501.0 | — | (1,501.0 | ) | — | ||||||||||
Accumulated other comprehensive income (loss) | (818.7 | ) | (818.7 | ) | 818.7 | (818.7 | ) | ||||||||
Total Partners' capital/shareholders' equity | 7,569.9 | 4,272.9 | (7,569.9 | ) | 4,272.9 | ||||||||||
Noncontrolling interests | 3.7 | 3.7 | (3.7 | ) | 3.7 | ||||||||||
Total equity | 7,573.6 | 4,276.6 | (7,573.6 | ) | 4,276.6 | ||||||||||
Total liabilities, Partnership preferred units and equity | $ | 23,927.9 | $ | 7,733.9 | $ | (7,733.9 | ) | $ | 23,927.9 |
Consolidated Borrowers | 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 | |||||||||||||||||||
Long-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 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,420.4 | $ | — | $ | — | $ | 1,420.4 | |||||||
Accounts and notes receivable, net | 403.5 | — | — | 403.5 | |||||||||||
Inventories, net | 71.8 | — | — | 71.8 | |||||||||||
Advertising fund restricted assets | 57.7 | — | — | 57.7 | |||||||||||
Prepaids and other current assets | 103.6 | — | — | 103.6 | |||||||||||
Total current assets | 2,057.0 | — | — | 2,057.0 | |||||||||||
Property and equipment, net | 2,054.7 | — | — | 2,054.7 | |||||||||||
Intangible assets, net | 9,228.0 | — | — | 9,228.0 | |||||||||||
Goodwill | 4,675.1 | — | — | 4,675.1 | |||||||||||
Net investment in property leased to franchisees | 91.9 | — | — | 91.9 | |||||||||||
Derivative assets | 717.9 | — | — | 717.9 | |||||||||||
Intercompany receivable | — | 146.1 | (146.1 | ) | — | ||||||||||
Investment in subsidiaries | — | 6,786.0 | (6,786.0 | ) | — | ||||||||||
Other assets, net | 300.7 | — | — | 300.7 | |||||||||||
Total assets | $ | 19,125.3 | $ | 6,932.1 | $ | (6,932.1 | ) | $ | 19,125.3 | ||||||
LIABILITIES, PREFERRED UNITS AND EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts and drafts payable | $ | 369.8 | $ | — | $ | — | $ | 369.8 | |||||||
Other accrued liabilities | 323.2 | 146.1 | — | 469.3 | |||||||||||
Gift card liability | 194.4 | — | — | 194.4 | |||||||||||
Advertising fund liabilities | 83.3 | — | — | 83.3 | |||||||||||
Current portion of long term debt and capital leases | 93.9 | — | — | 93.9 | |||||||||||
Total current liabilities | 1,064.6 | 146.1 | — | 1,210.7 | |||||||||||
Term debt, net of current portion | 8,410.2 | — | — | 8,410.2 | |||||||||||
Capital leases, net of current portion | 218.4 | — | — | 218.4 | |||||||||||
Other liabilities, net | 784.9 | — | — | 784.9 | |||||||||||
Payables to affiliates | 146.1 | — | (146.1 | ) | — | ||||||||||
Deferred income taxes, net | 1,715.1 | — | — | 1,715.1 | |||||||||||
Total liabilities | 12,339.3 | 146.1 | (146.1 | ) | 12,339.3 | ||||||||||
Partnership preferred units | — | 3,297.0 | — | 3,297.0 | |||||||||||
Partners’ capital: | |||||||||||||||
Class A common units | — | 3,364.1 | — | 3,364.1 | |||||||||||
Partnership exchangeable units | — | 1,476.2 | — | 1,476.2 | |||||||||||
Common shares | 6,825.8 | — | (6,825.8 | ) | — | ||||||||||
Retained Earnings | 1,311.5 | — | (1,311.5 | ) | — | ||||||||||
Accumulated other comprehensive income (loss) | (1,355.4 | ) | (1,355.4 | ) | 1,355.4 | (1,355.4 | ) | ||||||||
Total Partners' capital/shareholders' equity | 6,781.9 | 3,484.9 | (6,781.9 | ) | 3,484.9 | ||||||||||
Noncontrolling interests | 4.1 | 4.1 | (4.1 | ) | 4.1 | ||||||||||
Total equity | 6,786.0 | 3,489.0 | (6,786.0 | ) | 3,489.0 | ||||||||||
Total liabilities, Partnership preferred units and equity | $ | 19,125.3 | $ | 6,932.1 | $ | (6,932.1 | ) | $ | 19,125.3 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 708 | $ | — | $ | — | $ | 708 | |||||||||||||||
Franchise and property revenues | 676 | — | — | 676 | |||||||||||||||||||
Advertising revenues and other services | 255 | — | — | 255 | |||||||||||||||||||
Total revenues | 1,639 | — | — | 1,639 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 584 | — | — | 584 | |||||||||||||||||||
Franchise and property expenses | 125 | — | — | 125 | |||||||||||||||||||
Advertising expenses and other services | 259 | — | — | 259 | |||||||||||||||||||
General and administrative expenses | 146 | — | — | 146 | |||||||||||||||||||
(Income) loss from equity method investments | 9 | — | — | 9 | |||||||||||||||||||
Other operating expenses (income), net | (25) | — | — | (25) | |||||||||||||||||||
Total operating costs and expenses | 1,098 | — | — | 1,098 | |||||||||||||||||||
Income from operations | 541 | — | — | 541 | |||||||||||||||||||
Interest expense, net | 129 | — | — | 129 | |||||||||||||||||||
Income before income taxes | 412 | — | — | 412 | |||||||||||||||||||
Income tax expense | 66 | — | — | 66 | |||||||||||||||||||
Net income | 346 | — | — | 346 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 346 | (346) | — | |||||||||||||||||||
Net income (loss) | 346 | 346 | (346) | 346 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | 1 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 345 | $ | 345 | $ | (345) | $ | 345 | |||||||||||||||
Comprehensive income (loss) | $ | 327 | $ | 327 | $ | (327) | $ | 327 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 631.6 | $ | — | $ | — | $ | 631.6 | |||||||
Franchise and property revenues | 577.0 | — | — | 577.0 | |||||||||||
Total revenues | 1,208.6 | — | — | 1,208.6 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 493.3 | — | — | 493.3 | |||||||||||
Franchise and property expenses | 118.5 | — | — | 118.5 | |||||||||||
Selling, general and administrative expenses | 100.1 | — | — | 100.1 | |||||||||||
(Income) loss from equity method investments | (4.1 | ) | — | — | (4.1 | ) | |||||||||
Other operating expenses (income), net | 21.5 | — | — | 21.5 | |||||||||||
Total operating costs and expenses | 729.3 | — | — | 729.3 | |||||||||||
Income from operations | 479.3 | — | — | 479.3 | |||||||||||
Interest expense, net | 136.0 | — | — | 136.0 | |||||||||||
Loss on early extinguishment of debt | 58.2 | — | — | 58.2 | |||||||||||
Income before income taxes | 285.1 | — | — | 285.1 | |||||||||||
Income tax expense | 38.3 | — | — | 38.3 | |||||||||||
Net income | 246.8 | — | — | 246.8 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 246.8 | (246.8 | ) | — | ||||||||||
Net income (loss) | 246.8 | 246.8 | (246.8 | ) | 246.8 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 0.3 | 0.3 | (0.3 | ) | 0.3 | ||||||||||
Partnership preferred unit distributions | — | 67.5 | — | 67.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 246.5 | $ | 179.0 | $ | (246.5 | ) | $ | 179.0 | ||||||
Comprehensive income (loss) | $ | 546.5 | $ | 546.5 | $ | (546.5 | ) | $ | 546.5 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 1,317 | $ | — | $ | — | $ | 1,317 | |||||||||||||||
Franchise and property revenues | 1,291 | — | — | 1,291 | |||||||||||||||||||
Advertising revenues and other services | 482 | — | — | 482 | |||||||||||||||||||
Total revenues | 3,090 | — | — | 3,090 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 1,078 | — | — | 1,078 | |||||||||||||||||||
Franchise and property expenses | 255 | — | — | 255 | |||||||||||||||||||
Advertising expenses and other services | 506 | — | — | 506 | |||||||||||||||||||
General and administrative expenses | 279 | — | — | 279 | |||||||||||||||||||
(Income) loss from equity method investments | 22 | — | — | 22 | |||||||||||||||||||
Other operating expenses (income), net | (41) | — | — | (41) | |||||||||||||||||||
Total operating costs and expenses | 2,099 | — | — | 2,099 | |||||||||||||||||||
Income from operations | 991 | — | — | 991 | |||||||||||||||||||
Interest expense, net | 256 | — | — | 256 | |||||||||||||||||||
Income before income taxes | 735 | — | — | 735 | |||||||||||||||||||
Income tax expense | 119 | — | — | 119 | |||||||||||||||||||
Net income | 616 | — | — | 616 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 616 | (616) | — | |||||||||||||||||||
Net income (loss) | 616 | 616 | (616) | 616 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 2 | 2 | (2) | 2 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 614 | $ | 614 | $ | (614) | $ | 614 | |||||||||||||||
Comprehensive income (loss) | $ | 802 | $ | 802 | $ | (802) | $ | 802 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 1,784.1 | $ | — | $ | — | $ | 1,784.1 | |||||||
Franchise and property revenues | 1,557.8 | — | — | 1,557.8 | |||||||||||
Total revenues | 3,341.9 | — | — | 3,341.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 1,376.9 | — | — | 1,376.9 | |||||||||||
Franchise and property expenses | 343.2 | — | — | 343.2 | |||||||||||
Selling, general and administrative expenses | 318.7 | — | — | 318.7 | |||||||||||
(Income) loss from equity method investments | (8.9 | ) | — | — | (8.9 | ) | |||||||||
Other operating expenses (income), net | 82.1 | — | — | 82.1 | |||||||||||
Total operating costs and expenses | 2,112.0 | — | — | 2,112.0 | |||||||||||
Income from operations | 1,229.9 | — | — | 1,229.9 | |||||||||||
Interest expense, net | 375.4 | — | — | 375.4 | |||||||||||
Loss on early extinguishment of debt | 78.6 | — | — | 78.6 | |||||||||||
Income before income taxes | 775.9 | — | — | 775.9 | |||||||||||
Income tax expense | 119.0 | — | — | 119.0 | |||||||||||
Net income | 656.9 | — | — | 656.9 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 656.9 | (656.9 | ) | — | ||||||||||
Net income (loss) | 656.9 | 656.9 | (656.9 | ) | 656.9 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 1.1 | 1.1 | (1.1 | ) | 1.1 | ||||||||||
Partnership preferred unit distributions | — | 202.5 | — | 202.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 655.8 | $ | 453.3 | $ | (655.8 | ) | $ | 453.3 | ||||||
Comprehensive income (loss) | $ | 1,193.6 | $ | 1,193.6 | $ | (1,193.6 | ) | $ | 1,193.6 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 590 | $ | — | $ | — | $ | 590 | |||||||||||||||
Franchise and property revenues | 612 | — | — | 612 | |||||||||||||||||||
Advertising revenues and other services | 236 | — | — | 236 | |||||||||||||||||||
Total revenues | 1,438 | — | — | 1,438 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 467 | — | — | 467 | |||||||||||||||||||
Franchise and property expenses | 121 | — | — | 121 | |||||||||||||||||||
Advertising expenses and other services | 243 | — | — | 243 | |||||||||||||||||||
General and administrative expenses | 108 | — | — | 108 | |||||||||||||||||||
(Income) loss from equity method investments | 3 | — | — | 3 | |||||||||||||||||||
Other operating expenses (income), net | 8 | — | — | 8 | |||||||||||||||||||
Total operating costs and expenses | 950 | — | — | 950 | |||||||||||||||||||
Income from operations | 488 | — | — | 488 | |||||||||||||||||||
Interest expense, net | 126 | — | — | 126 | |||||||||||||||||||
Income before income taxes | 362 | — | — | 362 | |||||||||||||||||||
Income tax expense (benefit) | (29) | — | — | (29) | |||||||||||||||||||
Net income | 391 | — | — | 391 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 391 | (391) | — | |||||||||||||||||||
Net income (loss) | 391 | 391 | (391) | 391 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | 1 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 390 | $ | 390 | $ | (390) | $ | 390 | |||||||||||||||
Comprehensive income (loss) | $ | 451 | $ | 451 | $ | (451) | $ | 451 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 586.4 | $ | — | $ | — | $ | 586.4 | |||||||
Franchise and property revenues | 489.3 | — | 489.3 | ||||||||||||
Total revenues | 1,075.7 | — | — | 1,075.7 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 457.1 | — | — | 457.1 | |||||||||||
Franchise and property expenses | 109.8 | — | — | 109.8 | |||||||||||
Selling, general and administrative expenses | 82.2 | — | — | 82.2 | |||||||||||
(Income) loss from equity method investments | (2.6 | ) | — | — | (2.6 | ) | |||||||||
Other operating expenses (income), net | 8.7 | — | — | 8.7 | |||||||||||
Total operating costs and expenses | 655.2 | — | — | 655.2 | |||||||||||
Income from operations | 420.5 | — | — | 420.5 | |||||||||||
Interest expense, net | 117.3 | — | — | 117.3 | |||||||||||
Income before income taxes | 303.2 | — | — | 303.2 | |||||||||||
Income tax expense | 64.6 | — | — | 64.6 | |||||||||||
Net income | 238.6 | — | — | 238.6 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 238.6 | (238.6 | ) | — | ||||||||||
Net income (loss) | 238.6 | 238.6 | (238.6 | ) | 238.6 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 1.0 | 1.0 | (1.0 | ) | 1.0 | ||||||||||
Partnership preferred unit distributions | — | 67.5 | — | 67.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 237.6 | $ | 170.1 | $ | (237.6 | ) | $ | 170.1 | ||||||
Comprehensive income (loss) | $ | 131.8 | $ | 131.8 | $ | (131.8 | ) | $ | 131.8 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 1,097 | $ | — | $ | — | $ | 1,097 | |||||||||||||||
Franchise and property revenues | 1,160 | — | — | 1,160 | |||||||||||||||||||
Advertising revenues and other services | 441 | 0 | 0 | 441 | |||||||||||||||||||
Total revenues | 2,698 | — | — | 2,698 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 868 | — | — | 868 | |||||||||||||||||||
Franchise and property expenses | 237 | — | — | 237 | |||||||||||||||||||
Advertising expenses and other services | 480 | — | — | 480 | |||||||||||||||||||
General and administrative expenses | 212 | — | — | 212 | |||||||||||||||||||
(Income) loss from equity method investments | 5 | — | — | 5 | |||||||||||||||||||
Other operating expenses (income), net | (34) | — | — | (34) | |||||||||||||||||||
Total operating costs and expenses | 1,768 | — | — | 1,768 | |||||||||||||||||||
Income from operations | 930 | — | — | 930 | |||||||||||||||||||
Interest expense, net | 250 | — | — | 250 | |||||||||||||||||||
Income before income taxes | 680 | — | — | 680 | |||||||||||||||||||
Income tax expense | 18 | — | — | 18 | |||||||||||||||||||
Net income | 662 | — | — | 662 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 662 | (662) | — | |||||||||||||||||||
Net income (loss) | 662 | 662 | (662) | 662 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 2 | 2 | (2) | 2 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 660 | $ | 660 | $ | (660) | $ | 660 | |||||||||||||||
Comprehensive income (loss) | $ | 925 | $ | 925 | $ | (925) | $ | 925 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 1,635.5 | $ | — | $ | — | $ | 1,635.5 | |||||||
Franchise and property revenues | 1,398.9 | — | — | 1,398.9 | |||||||||||
Total revenues | 3,034.4 | — | — | 3,034.4 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 1,285.7 | — | — | 1,285.7 | |||||||||||
Franchise and property expenses | 323.5 | — | — | 323.5 | |||||||||||
Selling, general and administrative expenses | 228.5 | — | — | 228.5 | |||||||||||
(Income) loss from equity method investments | (16.6 | ) | — | — | (16.6 | ) | |||||||||
Other operating expenses (income), net | 38.2 | — | — | 38.2 | |||||||||||
Total operating costs and expenses | 1,859.3 | — | — | 1,859.3 | |||||||||||
Income from operations | 1,175.1 | — | — | 1,175.1 | |||||||||||
Interest expense, net | 349.6 | — | — | 349.6 | |||||||||||
Income before income taxes | 825.5 | — | — | 825.5 | |||||||||||
Income tax expense | 171.0 | — | — | 171.0 | |||||||||||
Net income | 654.5 | — | — | 654.5 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 654.5 | (654.5 | ) | — | ||||||||||
Net income (loss) | 654.5 | 654.5 | (654.5 | ) | 654.5 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 2.8 | 2.8 | (2.8 | ) | 2.8 | ||||||||||
Partnership preferred unit distributions | — | 202.5 | — | 202.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 651.7 | $ | 449.2 | $ | (651.7 | ) | $ | 449.2 | ||||||
Comprehensive income (loss) | $ | 970.4 | $ | 970.4 | $ | (970.4 | ) | $ | 970.4 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 616 | $ | 616 | $ | (616) | $ | 616 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (616) | 616 | — | |||||||||||||||||||
Depreciation and amortization | 97 | — | — | 97�� | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 14 | — | — | 14 | |||||||||||||||||||
(Income) loss from equity method investments | 22 | — | — | 22 | |||||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (52) | — | — | (52) | |||||||||||||||||||
Net (gains) losses on derivatives | 27 | — | — | 27 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 59 | — | — | 59 | |||||||||||||||||||
Other | 2 | — | — | 2 | |||||||||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||||||||
Accounts and notes receivable | 4 | — | — | 4 | |||||||||||||||||||
Inventories and prepaids and other current assets | (27) | — | — | (27) | |||||||||||||||||||
Accounts and drafts payable | 99 | — | — | 99 | |||||||||||||||||||
Other accrued liabilities and gift card liability | (199) | — | — | (199) | |||||||||||||||||||
Tenant inducements paid to franchisees | (6) | — | — | (6) | |||||||||||||||||||
Other long-term assets and liabilities | 13 | — | — | 13 | |||||||||||||||||||
Net cash provided by operating activities | 669 | — | — | 669 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Payments for property and equipment | (28) | — | — | (28) | |||||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 10 | — | — | 10 | |||||||||||||||||||
Net payments in connection with purchase of Firehouse Subs | (12) | — | — | (12) | |||||||||||||||||||
Settlement/sale of derivatives, net | 9 | — | — | 9 | |||||||||||||||||||
Other investing activities, net | (25) | — | — | (25) | |||||||||||||||||||
Net cash (used for) provided by investing activities | (46) | — | — | (46) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from long-term debt | 2 | — | — | 2 | |||||||||||||||||||
Repayments of long-term debt and finance leases | (47) | — | — | (47) | |||||||||||||||||||
Distributions on Class A common and Partnership exchangeable units | — | (485) | — | (485) | |||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (326) | — | (326) | |||||||||||||||||||
Capital contribution from RBI | 4 | — | — | 4 | |||||||||||||||||||
Distributions from subsidiaries | (811) | 811 | — | — | |||||||||||||||||||
(Payments) proceeds from derivatives | (6) | — | — | (6) | |||||||||||||||||||
Other financing activities, net | (2) | — | — | (2) | |||||||||||||||||||
Net cash (used for) provided by financing activities | (860) | — | — | (860) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (12) | — | — | (12) | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (249) | — | — | (249) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,087 | — | — | 1,087 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 838 | $ | — | $ | — | $ | 838 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 656.9 | $ | 656.9 | $ | (656.9 | ) | $ | 656.9 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (656.9 | ) | 656.9 | — | ||||||||||
Depreciation and amortization | 134.9 | — | — | 134.9 | |||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | 75.9 | — | — | 75.9 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 25.2 | — | — | 25.2 | |||||||||||
(Income) loss from equity method investments | (8.9 | ) | — | — | (8.9 | ) | |||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 64.7 | — | — | 64.7 | |||||||||||
Net losses on derivatives | 23.1 | — | — | 23.1 | |||||||||||
Share-based compensation expense | 38.0 | — | — | 38.0 | |||||||||||
Deferred income taxes | (3.1 | ) | — | — | (3.1 | ) | |||||||||
Other | 12.8 | — | — | 12.8 | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||
Accounts and notes receivable | 0.3 | — | — | 0.3 | |||||||||||
Inventories and prepaids and other current assets | (12.5 | ) | — | — | (12.5 | ) | |||||||||
Accounts and drafts payable | (30.4 | ) | — | — | (30.4 | ) | |||||||||
Advertising fund restricted assets and fund liabilities | 18.1 | — | — | 18.1 | |||||||||||
Other accrued liabilities and gift card liability | (161.4 | ) | — | — | (161.4 | ) | |||||||||
Other long-term assets and liabilities | (40.0 | ) | — | — | (40.0 | ) | |||||||||
Net cash provided by operating activities | 793.6 | — | — | 793.6 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Payments for property and equipment | (16.9 | ) | — | — | (16.9 | ) | |||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 19.6 | — | — | 19.6 | |||||||||||
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9 | ) | — | — | (1,635.9 | ) | |||||||||
Return of investment on direct financing leases | 11.8 | — | — | 11.8 | |||||||||||
Settlement/sale of derivatives, net | 771.8 | — | — | 771.8 | |||||||||||
Other investing activities, net | (2.3 | ) | — | — | (2.3 | ) | |||||||||
Net cash provided by (used for) investing activities | (851.9 | ) | — | — | (851.9 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of long-term debt | 4,350.0 | — | — | 4,350.0 | |||||||||||
Repayments of long-term debt and capital leases | (1,690.0 | ) | — | — | (1,690.0 | ) | |||||||||
Payment of financing costs | (57.0 | ) | — | — | (57.0 | ) | |||||||||
Distributions on common, preferred and Partnership exchangeable units | — | (451.9 | ) | — | (451.9 | ) | |||||||||
Capital contribution from RBI Inc. | 17.5 | — | — | 17.5 | |||||||||||
Distributions from subsidiaries | (451.9 | ) | 451.9 | — | — | ||||||||||
Other financing activities, net | (6.2 | ) | — | — | (6.2 | ) | |||||||||
Net cash provided by (used for) financing activities | 2,162.4 | — | — | 2,162.4 | |||||||||||
Effect of exchange rates on cash and cash equivalents | 22.7 | — | — | 22.7 | |||||||||||
Increase (decrease) in cash and cash equivalents | 2,126.8 | — | — | 2,126.8 | |||||||||||
Cash and cash equivalents at beginning of period | 1,420.4 | — | — | 1,420.4 | |||||||||||
Cash and cash equivalents at end of period | $ | 3,547.2 | $ | — | $ | — | $ | 3,547.2 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 662 | $ | 662 | $ | (662) | $ | 662 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (662) | 662 | — | |||||||||||||||||||
Depreciation and amortization | 100 | — | — | 100 | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 13 | — | — | 13 | |||||||||||||||||||
(Income) loss from equity method investments | 5 | — | — | 5 | |||||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (35) | — | — | (35) | |||||||||||||||||||
Net (gains) losses on derivatives | 42 | — | — | 42 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 46 | — | — | 46 | |||||||||||||||||||
Deferred income taxes | 24 | — | — | 24 | |||||||||||||||||||
Other | (12) | — | — | (12) | |||||||||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||||||||
Accounts and notes receivable | 17 | — | — | 17 | |||||||||||||||||||
Inventories and prepaids and other current assets | (5) | — | — | (5) | |||||||||||||||||||
Accounts and drafts payable | 103 | — | — | 103 | |||||||||||||||||||
Other accrued liabilities and gift card liability | (129) | — | — | (129) | |||||||||||||||||||
Tenant inducements paid to franchisees | (1) | — | — | (1) | |||||||||||||||||||
Other long-term assets and liabilities | (85) | — | — | (85) | |||||||||||||||||||
Net cash provided by operating activities | 745 | — | — | 745 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Payments for property and equipment | (46) | — | — | (46) | |||||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 14 | — | — | 14 | |||||||||||||||||||
Settlement/sale of derivatives, net | 1 | — | — | 1 | |||||||||||||||||||
Other investing activities, net | (5) | — | — | (5) | |||||||||||||||||||
Net cash (used for) provided by investing activities | (36) | — | — | (36) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Repayments of long-term debt and finance leases | (54) | — | — | (54) | |||||||||||||||||||
Distributions on Class A common and Partnership exchangeable units | — | (484) | — | (484) | |||||||||||||||||||
Capital contribution from RBI | 56 | — | — | 56 | |||||||||||||||||||
Distributions from subsidiaries | (484) | 484 | — | — | |||||||||||||||||||
(Payments) proceeds from derivatives | (32) | — | — | (32) | |||||||||||||||||||
Other financing activities, net | (2) | — | — | (2) | |||||||||||||||||||
Net cash (used for) provided by financing activities | (516) | — | — | (516) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | 9 | — | — | 9 | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 202 | — | — | 202 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,560 | — | — | 1,560 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,762 | $ | — | $ | — | $ | 1,762 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 654.5 | $ | 654.5 | $ | (654.5 | ) | $ | 654.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (654.5 | ) | 654.5 | — | ||||||||||
Depreciation and amortization | 129.0 | — | — | 129.0 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 29.1 | — | — | 29.1 | |||||||||||
(Income) loss from equity method investments | (16.6 | ) | — | — | (16.6 | ) | |||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 16.1 | — | — | 16.1 | |||||||||||
Net losses on derivatives | 15.3 | — | — | 15.3 | |||||||||||
Share-based compensation expense | 25.9 | — | — | 25.9 | |||||||||||
Deferred income taxes | 34.6 | — | — | 34.6 | |||||||||||
Other | 8.0 | — | — | 8.0 | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||
Accounts and notes receivable | 20.0 | — | — | 20.0 | |||||||||||
Inventories and prepaids and other current assets | (3.0 | ) | — | — | (3.0 | ) | |||||||||
Accounts and drafts payable | 11.8 | — | — | 11.8 | |||||||||||
Advertising fund restricted assets and fund liabilities | 4.0 | — | — | 4.0 | |||||||||||
Other accrued liabilities and gift card liability | (23.8 | ) | — | — | (23.8 | ) | |||||||||
Other long-term assets and liabilities | 0.9 | — | — | 0.9 | |||||||||||
Net cash provided by operating activities | 905.8 | — | — | 905.8 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Payments for property and equipment | (18.2 | ) | — | — | (18.2 | ) | |||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 18.1 | — | — | 18.1 | |||||||||||
Return of investment on direct financing leases | 12.5 | — | — | 12.5 | |||||||||||
Settlement/sale of derivatives, net | 4.9 | — | — | 4.9 | |||||||||||
Other investing activities, net | 2.0 | — | — | 2.0 | |||||||||||
Net cash provided by (used for) investing activities | 19.3 | — | — | 19.3 | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayments of long-term debt and capital leases | (52.7 | ) | — | — | (52.7 | ) | |||||||||
Distributions on common, preferred and Partnership exchangeable units | — | (396.9 | ) | — | (396.9 | ) | |||||||||
Capital contribution from RBI Inc. | — | 12.5 | — | 12.5 | |||||||||||
Distributions to RBI Inc. | — | (28.5 | ) | — | (28.5 | ) | |||||||||
Distributions from subsidiaries | (412.9 | ) | 412.9 | — | — | ||||||||||
Other financing activities, net | 0.8 | — | — | 0.8 | |||||||||||
Net cash provided by (used for) financing activities | (464.8 | ) | — | — | (464.8 | ) | |||||||||
Effect of exchange rates on cash and cash equivalents | 14.6 | — | — | 14.6 | |||||||||||
Increase (decrease) in cash and cash equivalents | 474.9 | — | — | 474.9 | |||||||||||
Cash and cash equivalents at beginning of period | 753.7 | — | — | 753.7 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,228.6 | $ | — | $ | — | $ | 1,228.6 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
Key Business Metrics | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
System-wide sales growth | |||||||||||||||||||||||
TH | 16.3 | % | 33.0 | % | 14.7 | % | 12.5 | % | |||||||||||||||
BK | 14.6 | % | 37.9 | % | 15.5 | % | 18.2 | % | |||||||||||||||
PLK | 9.9 | % | 10.5 | % | 7.1 | % | 8.8 | % | |||||||||||||||
Consolidated (a) | 14.2 | % | 31.9 | % | 14.0 | % | 15.5 | % | |||||||||||||||
FHS (b) | 2.2 | % | 37.9 | % | 4.7 | % | 32.6 | % | |||||||||||||||
System-wide sales (in US$ millions) | |||||||||||||||||||||||
TH | $ | 1,838 | $ | 1,637 | $ | 3,394 | $ | 3,016 | |||||||||||||||
BK | $ | 6,444 | $ | 5,883 | $ | 12,262 | $ | 11,056 | |||||||||||||||
PLK | $ | 1,503 | $ | 1,386 | $ | 2,886 | $ | 2,730 | |||||||||||||||
FHS | $ | 292 | $ | — | $ | 564 | $ | — | |||||||||||||||
Consolidated (a) | $ | 10,077 | $ | 8,906 | $ | 19,106 | $ | 16,802 | |||||||||||||||
FHS (b) | $ | — | $ | 286 | $ | — | $ | 540 | |||||||||||||||
Comparable sales | |||||||||||||||||||||||
TH | 12.2 | % | 27.6 | % | 10.4 | % | 11.8 | % | |||||||||||||||
BK | 10.0 | % | 18.2 | % | 10.1 | % | 8.9 | % | |||||||||||||||
PLK | 1.4 | % | (0.3) | % | (0.8) | % | 0.6 | % | |||||||||||||||
Consolidated (a) | 9.0 | % | 16.5 | % | 8.4 | % | 8.0 | % | |||||||||||||||
FHS (b) | (1.4) | % | 31.2 | % | 1.3 | % | 27.8 | % | |||||||||||||||
As of June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Net restaurant growth | |||||||||||||||||||||||
TH | 5.7 | % | 2.7 | % | |||||||||||||||||||
BK | 2.8 | % | 0.1 | % | |||||||||||||||||||
PLK | 8.1 | % | 5.7 | % | |||||||||||||||||||
Consolidated (a) | 4.1 | % | 1.3 | % | |||||||||||||||||||
FHS (b) | 2.5 | % | 2.5 | % | |||||||||||||||||||
Restaurant count | |||||||||||||||||||||||
TH | 5,352 | 5,065 | |||||||||||||||||||||
BK | 19,311 | 18,776 | |||||||||||||||||||||
PLK | 3,851 | 3,562 | |||||||||||||||||||||
FHS | 1,233 | — | |||||||||||||||||||||
Consolidated | 29,747 | 27,403 | |||||||||||||||||||||
FHS (b) | — | 1,203 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
Key Business Metrics (excluding Russia) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
System-wide sales growth | |||||||||||||||||||||||
BK | 13.2 | % | 35.8 | % | 14.7 | % | 17.3 | % | |||||||||||||||
Consolidated (a) | 13.3 | % | 30.5 | % | 13.4 | % | 14.9 | % | |||||||||||||||
System-wide sales (in US$ millions) | |||||||||||||||||||||||
BK | $ | 6,134 | $ | 5,701 | $ | 11,781 | $ | 10,713 | |||||||||||||||
Consolidated (a) | $ | 9,767 | $ | 8,724 | $ | 18,625 | $ | 16,459 | |||||||||||||||
Comparable sales | |||||||||||||||||||||||
BK | 8.7 | % | 16.8 | % | 9.3 | % | 8.3 | % | |||||||||||||||
Consolidated (a) | 7.9 | % | 15.6 | % | 7.6 | % | 7.6 | % | |||||||||||||||
As of June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Net restaurant growth | |||||||||||||||||||||||
BK | 2.7 | % | 0.1 | % | |||||||||||||||||||
Consolidated (a) | 4.0 | % | 1.3 | % | |||||||||||||||||||
Restaurant count | |||||||||||||||||||||||
BK | 18,491 | 17,999 | |||||||||||||||||||||
Consolidated | 28,927 | 26,626 |
Consolidated | Three Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Six Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 708 | $ | 590 | $ | 118 | $ | (19) | $ | 137 | $ | 1,317 | $ | 1,097 | $ | 220 | $ | (19) | $ | 239 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 676 | 612 | 64 | (20) | 84 | 1,291 | 1,160 | 131 | (28) | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 255 | 236 | 19 | (3) | 22 | 482 | 441 | 41 | (3) | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,639 | 1,438 | 201 | (42) | 243 | 3,090 | 2,698 | 392 | (50) | 442 | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 584 | 467 | (117) | 15 | (132) | 1,078 | 868 | (210) | 15 | (225) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 125 | 121 | (4) | 3 | (7) | 255 | 237 | (18) | 3 | (21) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 259 | 243 | (16) | 3 | (19) | 506 | 480 | (26) | 3 | (29) | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 146 | 108 | (38) | 3 | (41) | 279 | 212 | (67) | 4 | (71) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from equity method investments | 9 | 3 | (6) | — | (6) | 22 | 5 | (17) | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses (income), net | (25) | 8 | 33 | 1 | 32 | (41) | (34) | 7 | (2) | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs and expenses | 1,098 | 950 | (148) | 25 | (173) | 2,099 | 1,768 | (331) | 23 | (354) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 541 | 488 | 53 | (17) | 70 | 991 | 930 | 61 | (27) | 88 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 129 | 126 | (3) | — | (3) | 256 | 250 | (6) | — | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 412 | 362 | 50 | (17) | 67 | 735 | 680 | 55 | (27) | 82 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 66 | (29) | (95) | 1 | (96) | 119 | 18 | (101) | 2 | (103) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 346 | $ | 391 | $ | (45) | $ | (16) | $ | (29) | $ | 616 | $ | 662 | $ | (46) | $ | (25) | $ | (21) |
TH Segment | Three Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Six Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 661 | $ | 556 | $ | 105 | $ | (19) | $ | 124 | $ | 1,227 | $ | 1,029 | $ | 198 | $ | (19) | $ | 217 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 238 | 219 | 19 | (8) | 27 | 444 | 409 | 35 | (8) | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 69 | 56 | 13 | (2) | 15 | 126 | 103 | 23 | (2) | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 968 | 831 | 137 | (29) | 166 | 1,797 | 1,541 | 256 | (29) | 285 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 537 | 434 | (103) | 15 | (118) | 990 | 804 | (186) | 15 | (201) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 84 | 86 | 2 | 3 | (1) | 165 | 167 | 2 | 3 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 71 | 68 | (3) | 2 | (5) | 138 | 130 | (8) | 2 | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 32 | 26 | (6) | 1 | (7) | 61 | 50 | (11) | 1 | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 28 | 32 | 4 | 1 | 3 | 57 | 63 | 6 | 1 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income (c) | 274 | 253 | 21 | (9) | 30 | 505 | 460 | 45 | (9) | 54 |
BK Segment | Three Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Six Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 17 | $ | 17 | $ | — | $ | — | $ | — | $ | 33 | $ | 33 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 335 | 322 | 13 | (11) | 24 | 653 | 611 | 42 | (19) | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 121 | 120 | 1 | (1) | 2 | 230 | 222 | 8 | (1) | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 473 | 459 | 14 | (12) | 26 | 916 | 866 | 50 | (20) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 19 | 17 | (2) | — | (2) | 36 | 33 | (3) | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 34 | 33 | (1) | — | (1) | 79 | 66 | (13) | — | (13) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 123 | 115 | (8) | 1 | (9) | 242 | 233 | (9) | 1 | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 40 | 41 | 1 | 1 | — | 85 | 76 | (9) | 2 | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 12 | 12 | — | — | — | 24 | 24 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | 270 | 266 | 4 | (11) | 15 | 499 | 483 | 16 | (18) | 34 |
PLK Segment (in millions of U.S. dollars) | Three months ended September 30, 2017 | Nine months ended September 30, 2017 | ||||
Revenues: | ||||||
Sales | $ | 22.7 | $ | 45.7 | ||
Franchise and property revenues | 45.3 | 89.0 | ||||
Total revenues | 68.0 | 134.7 | ||||
Cost of sales | 17.8 | 37.0 | ||||
Franchise and property expenses | 2.2 | 4.5 | ||||
Segment SG&A | 12.8 | 27.2 | ||||
Segment depreciation and amortization (a) | 1.6 | 4.0 | ||||
Segment income | 36.8 | 70.0 |
PLK Segment | Three Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Six Months Ended June 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 20 | $ | 17 | $ | 3 | $ | — | $ | 3 | $ | 37 | $ | 35 | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 81 | 71 | 10 | (1) | 11 | 152 | 140 | 12 | (1) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 64 | 60 | 4 | — | 4 | 124 | 116 | 8 | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 165 | 148 | 17 | (1) | 18 | 313 | 291 | 22 | (1) | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 19 | 16 | (3) | — | (3) | 35 | 31 | (4) | — | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 5 | 2 | (3) | — | (3) | 7 | 4 | (3) | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 64 | 60 | (4) | — | (4) | 125 | 117 | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 17 | 13 | (4) | — | (4) | 32 | 27 | (5) | — | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 1 | 2 | 1 | — | 1 | 3 | 4 | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | 61 | 58 | 3 | (1) | 4 | 117 | 114 | 3 | (1) | 4 |
FHS Segment | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||
Revenues: | |||||||||||
Sales | $ | 10 | $ | 20 | |||||||
Franchise and property revenues | 22 | 42 | |||||||||
Advertising revenues and other services | 1 | 2 | |||||||||
Total revenues | 33 | 64 | |||||||||
Cost of sales | 9 | 17 | |||||||||
Franchise and property expenses | 2 | 4 | |||||||||
Advertising expenses and other services | 1 | 1 | |||||||||
Segment G&A | 8 | 16 | |||||||||
Segment depreciation and amortization (b) | 1 | 1 | |||||||||
Segment income | 13 | 27 |
Consolidated | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 631.6 | $ | 586.4 | $ | 45.2 | $ | 20.6 | $ | 24.6 | $ | 1,784.1 | $ | 1,635.5 | $ | 148.6 | $ | 15.6 | $ | 133.0 | |||||||||||||||||||
Franchise and property revenues | 577.0 | 489.3 | 87.7 | 9.8 | 77.9 | 1,557.8 | 1,398.9 | 158.9 | 3.7 | 155.2 | |||||||||||||||||||||||||||||
Total revenues | 1,208.6 | 1,075.7 | 132.9 | 30.4 | 102.5 | 3,341.9 | 3,034.4 | 307.5 | 19.3 | 288.2 | |||||||||||||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 493.3 | 457.1 | (36.2 | ) | (16.0 | ) | (20.2 | ) | 1,376.9 | 1,285.7 | (91.2 | ) | (12.4 | ) | (78.8 | ) | |||||||||||||||||||||||
Franchise and property expenses | 118.5 | 109.8 | (8.7 | ) | (3.2 | ) | (5.5 | ) | 343.2 | 323.5 | (19.7 | ) | (1.9 | ) | (17.8 | ) | |||||||||||||||||||||||
Selling, general and administrative expenses | 100.1 | 82.2 | (17.9 | ) | (2.1 | ) | (15.8 | ) | 318.7 | 228.5 | (90.2 | ) | (1.4 | ) | (88.8 | ) | |||||||||||||||||||||||
(Income) loss from equity method investments | (4.1 | ) | (2.6 | ) | 1.5 | — | 1.5 | (8.9 | ) | (16.6 | ) | (7.7 | ) | (0.1 | ) | (7.6 | ) | ||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | (12.8 | ) | (0.6 | ) | (12.2 | ) | 82.1 | 38.2 | (43.9 | ) | 0.6 | (44.5 | ) | ||||||||||||||||||||||||
Total operating costs and expenses | 729.3 | 655.2 | (74.1 | ) | (21.9 | ) | (52.2 | ) | 2,112.0 | 1,859.3 | (252.7 | ) | (15.2 | ) | (237.5 | ) | |||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 58.8 | 8.5 | 50.3 | 1,229.9 | 1,175.1 | 54.8 | 4.1 | 50.7 | |||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | (18.7 | ) | 0.1 | (18.8 | ) | 375.4 | 349.6 | (25.8 | ) | (0.1 | ) | (25.7 | ) | ||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | (58.2 | ) | — | (58.2 | ) | 78.6 | — | (78.6 | ) | — | (78.6 | ) | |||||||||||||||||||||||||
Income before income taxes | 285.1 | 303.2 | (18.1 | ) | 8.6 | (26.7 | ) | 775.9 | 825.5 | (49.6 | ) | 4.0 | (53.6 | ) | |||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 26.3 | 1.5 | 24.8 | 119.0 | 171.0 | 52.0 | 0.2 | 51.8 | |||||||||||||||||||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 8.2 | $ | 10.1 | $ | (1.9 | ) | $ | 656.9 | $ | 654.5 | $ | 2.4 | $ | 4.2 | $ | (1.8 | ) | |||||||||||||||||
TH Segment | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 585.5 | $ | 563.0 | $ | 22.5 | $ | 20.4 | $ | 2.1 | $ | 1,666.8 | $ | 1,565.8 | $ | 101.0 | $ | 14.7 | $ | 86.3 | |||||||||||||||||||
Franchise and property revenues | 241.5 | 226.9 | 14.6 | 8.5 | 6.1 | 666.1 | 641.7 | 24.4 | 6.6 | 17.8 | |||||||||||||||||||||||||||||
Total revenues | 827.0 | 789.9 | 37.1 | 28.9 | 8.2 | 2,332.9 | 2,207.5 | 125.4 | 21.3 | 104.1 | |||||||||||||||||||||||||||||
Cost of sales | 454.2 | 436.7 | (17.5 | ) | (15.9 | ) | (1.6 | ) | 1,273.8 | 1,226.4 | (47.4 | ) | (11.7 | ) | (35.7 | ) | |||||||||||||||||||||||
Franchise and property expenses | 83.2 | 77.7 | (5.5 | ) | (3.0 | ) | (2.5 | ) | 240.7 | 224.8 | (15.9 | ) | (2.5 | ) | (13.4 | ) | |||||||||||||||||||||||
Segment SG&A | 24.1 | 17.0 | (7.1 | ) | (0.5 | ) | (6.6 | ) | 71.4 | 48.3 | (23.1 | ) | (0.4 | ) | (22.7 | ) | |||||||||||||||||||||||
Segment depreciation and amortization(a) | 26.1 | 25.7 | (0.4 | ) | (0.8 | ) | 0.4 | 75.9 | 76.9 | 1.0 | (0.7 | ) | 1.7 | ||||||||||||||||||||||||||
Segment income (b) | 294.4 | 287.1 | 7.3 | 10.5 | (3.2 | ) | 831.7 | 793.9 | 37.8 | 7.6 | 30.2 | ||||||||||||||||||||||||||||
BK Segment | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 23.4 | $ | 23.4 | $ | — | $ | 0.2 | $ | (0.2 | ) | $ | 71.6 | $ | 69.7 | $ | 1.9 | $ | 0.9 | $ | 1.0 | ||||||||||||||||||
Franchise and property revenues | 290.2 | 262.4 | 27.8 | 1.3 | 26.5 | 802.7 | 757.2 | 45.5 | (2.9 | ) | 48.4 | ||||||||||||||||||||||||||||
Total revenues | 313.6 | 285.8 | 27.8 | 1.5 | 26.3 | 874.3 | 826.9 | 47.4 | (2.0 | ) | 49.4 | ||||||||||||||||||||||||||||
Cost of sales | 21.3 | 20.4 | (0.9 | ) | (0.1 | ) | (0.8 | ) | 66.1 | 59.3 | (6.8 | ) | (0.7 | ) | (6.1 | ) | |||||||||||||||||||||||
Franchise and property expenses | 33.1 | 32.1 | (1.0 | ) | (0.2 | ) | (0.8 | ) | 98.0 | 98.7 | 0.7 | 0.6 | 0.1 | ||||||||||||||||||||||||||
Segment SG&A | 38.0 | 43.5 | 5.5 | (0.5 | ) | 6.0 | 110.3 | 122.9 | 12.6 | (0.1 | ) | 12.7 | |||||||||||||||||||||||||||
Segment depreciation and amortization (a) | 12.7 | 12.0 | (0.7 | ) | (0.1 | ) | (0.6 | ) | 37.9 | 35.9 | (2.0 | ) | — | (2.0 | ) | ||||||||||||||||||||||||
Segment income | 233.9 | 201.8 | 32.1 | 0.8 | 31.3 | 637.8 | 581.9 | 55.9 | (2.2 | ) | 58.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Key Business Metrics | 2017 | 2016 | 2017 | 2016 | |||||||||||
Comparable sales | |||||||||||||||
TH | 0.3 | % | 2.0 | % | (0.2 | )% | 3.3 | % | |||||||
BK | 3.6 | % | 1.7 | % | 2.6 | % | 2.2 | % | |||||||
PLK (c) | (1.8 | )% | 1.8 | % | (1.5 | )% | 1.4 | % | |||||||
System-wide sales growth | |||||||||||||||
TH | 3.0 | % | 4.8 | % | 3.0 | % | 6.1 | % | |||||||
BK | 11.2 | % | 7.0 | % | 9.4 | % | 7.5 | % | |||||||
PLK (c) | 4.5 | % | 8.3 | % | 4.6 | % | 7.0 | % | |||||||
System-wide sales | |||||||||||||||
TH | $ | 1,812.3 | $ | 1,690.4 | $ | 4,971.8 | $ | 4,783.0 | |||||||
BK | $ | 5,335.0 | $ | 4,776.7 | $ | 14,773.1 | $ | 13,557.6 | |||||||
PLK (c) | $ | 897.3 | $ | 781.6 | $ | 2,623.5 | $ | 2,519.0 | |||||||
As of | |||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||
Net restaurant growth | |||||||||||||||
TH | 4.2 | % | 3.4 | % | |||||||||||
BK | 6.6 | % | 3.9 | % | |||||||||||
PLK (d) | 5.9 | % | 5.9 | % | |||||||||||
Restaurant count | |||||||||||||||
TH | 4,680 | 4,492 | |||||||||||||
BK | �� | 16,253 | 15,243 | ||||||||||||
PLK (d) | 2,809 | 2,653 |
Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | 2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment SG&A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A: | Segment G&A: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TH | $ | 24.1 | $ | 17.0 | $ | (7.1 | ) | (41.8 | )% | $ | 71.4 | $ | 48.3 | $ | (23.1 | ) | (47.8 | )% | TH | $ | 32 | $ | 26 | $ | (6) | (23.1) | % | $ | 61 | $ | 50 | $ | (11) | (22.0) | % | |||||||||||||||||||||||||||||||||||||||||
BK | 38.0 | 43.5 | 5.5 | 12.6 | % | 110.3 | 122.9 | 12.6 | 10.3 | % | BK | 40 | 41 | 1 | 2.4 | % | 85 | 76 | (9) | (11.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK | 12.8 | — | (12.8 | ) | NM | 27.2 | — | (27.2 | ) | NM | PLK | 17 | 13 | (4) | (30.8) | % | 32 | 27 | (5) | (18.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS | FHS | 8 | — | (8) | NM | 16 | — | (16) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | (0.7 | ) | (5.9 | )% | 42.9 | 31.0 | (11.9 | ) | (38.4 | )% | Share-based compensation and non-cash incentive compensation expense | 32 | 20 | (12) | (60.0) | % | 59 | 46 | (13) | (28.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5.8 | 5.5 | (0.3 | ) | (5.5 | )% | 17.1 | 15.9 | (1.2 | ) | (7.5 | )% | Depreciation and amortization | 7 | 5 | (2) | (40.0) | % | 12 | 9 | (3) | (33.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK Transaction costs | 6.9 | — | (6.9 | ) | NM | 49.8 | — | (49.8 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration costs | — | 4.4 | 4.4 | NM | — | 10.4 | 10.4 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 100.1 | $ | 82.2 | $ | (17.9 | ) | (21.8 | )% | $ | 318.7 | $ | 228.5 | $ | (90.2 | ) | (39.5 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS Transaction costs | FHS Transaction costs | 4 | — | (4) | NM | 5 | — | (5) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate restructuring and tax advisory fees | Corporate restructuring and tax advisory fees | 6 | 3 | (3) | (100.0) | % | 9 | 4 | (5) | (125.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | General and administrative expenses | $ | 146 | $ | 108 | $ | (38) | (35.2) | % | $ | 279 | $ | 212 | $ | (67) | (31.6) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 3.4 | $ | 3.3 | $ | 14.9 | $ | 19.6 | Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | (1) | $ | 1 | $ | 1 | $ | (1) | |||||||||||||||||||||
Litigation settlements and reserves, net | 0.6 | 0.4 | 1.7 | 2.0 | ||||||||||||||||||||||||||||||||||
Litigation settlements (gains) and reserves, net | Litigation settlements (gains) and reserves, net | 2 | 1 | 3 | 3 | |||||||||||||||||||||||||||||||||
Net losses (gains) on foreign exchange | 17.7 | 4.1 | 64.9 | 16.1 | Net losses (gains) on foreign exchange | (31) | 8 | (52) | (35) | |||||||||||||||||||||||||||||
Other, net | (0.2 | ) | 0.9 | 0.6 | 0.5 | Other, net | 5 | (2) | 7 | (1) | ||||||||||||||||||||||||||||
Other operating expenses (income), net | $ | 21.5 | $ | 8.7 | $ | 82.1 | $ | 38.2 | Other operating expenses (income), net | $ | (25) | $ | 8 | $ | (41) | $ | (34) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Interest expense, net | $ | 136.0 | $ | 117.3 | $ | 375.4 | $ | 349.6 | Interest expense, net | $ | 129 | $ | 126 | $ | 256 | $ | 250 | |||||||||||||||||||||
Weighted average interest rate on long-term debt | 4.8 | % | 5.2 | % | 4.9 | % | 5.2 | % | Weighted average interest rate on long-term debt | 4.2 | % | 4.2 | % | 4.1 | % | 4.2 | % |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | Three Months Ended June 30, | Variance | Six Months Ended June 30, | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment income: | Segment income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TH | $ | 294.4 | $ | 287.1 | $ | 7.3 | 2.5 | % | $ | 831.7 | $ | 793.9 | $ | 37.8 | 4.8 | % | TH | $ | 274 | $ | 253 | $ | 21 | 8.4 | % | $ | 505 | $ | 460 | $ | 45 | 9.9 | % | |||||||||||||||||||||||||||||||||||||||||||
BK | 233.9 | 201.8 | 32.1 | 15.9 | % | 637.8 | 581.9 | 55.9 | 9.6 | % | BK | 270 | 266 | 4 | 1.6 | % | 499 | 483 | 16 | 3.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK | 36.8 | — | 36.8 | NM | 70.0 | — | 70.0 | NM | PLK | 61 | 58 | 3 | 4.4 | % | 117 | 114 | 3 | 2.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS | FHS | 13 | — | 13 | NM | 27 | — | 27 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | 565.1 | 488.9 | 76.2 | 15.6 | % | 1,539.5 | 1,375.8 | 163.7 | 11.9 | % | Adjusted EBITDA | 618 | 577 | 41 | 7.1 | % | 1,148 | 1,057 | 91 | 8.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | (0.7 | ) | (5.9 | )% | 42.9 | 31.0 | (11.9 | ) | (38.4 | )% | Share-based compensation and non-cash incentive compensation expense | 32 | 20 | (12) | (60.0) | % | 59 | 46 | (13) | (28.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK Transaction costs | 6.9 | — | (6.9 | ) | NM | 49.8 | — | (49.8 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration costs | — | 4.4 | 4.4 | NM | — | 10.4 | 10.4 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS Transaction costs | FHS Transaction costs | 4 | — | (4) | NM | 5 | — | (5) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate restructuring and tax advisory fees | Corporate restructuring and tax advisory fees | 6 | 3 | (3) | (100.0) | % | 9 | 4 | (5) | (125.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of equity method investments (a) | (1.3 | ) | 0.3 | 1.6 | NM | (0.1 | ) | (7.6 | ) | (7.5 | ) | 98.7 | % | Impact of equity method investments (a) | 12 | 7 | (5) | (71.4) | % | 28 | 11 | (17) | (154.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | (12.8 | ) | NM | 82.1 | 38.2 | (43.9 | ) | (114.9 | )% | Other operating expenses (income), net | (25) | 8 | 33 | NM | (41) | (34) | 7 | (20.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 525.5 | 463.7 | 61.8 | 13.3 | % | 1,364.8 | 1,303.8 | 61.0 | 4.7 | % | EBITDA | 589 | 539 | 50 | 9.3 | % | 1,088 | 1,030 | 58 | 5.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 46.2 | 43.2 | (3.0 | ) | (6.9 | )% | 134.9 | 128.7 | (6.2 | ) | (4.8 | )% | Depreciation and amortization | 48 | 51 | 3 | 5.9 | % | 97 | 100 | 3 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 58.8 | 14.0 | % | 1,229.9 | 1,175.1 | 54.8 | 4.7 | % | Income from operations | 541 | 488 | 53 | 10.9 | % | 991 | 930 | 61 | 6.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | (18.7 | ) | (15.9 | )% | 375.4 | 349.6 | (25.8 | ) | (7.4 | )% | Interest expense, net | 129 | 126 | (3) | (2.4) | % | 256 | 250 | (6) | (2.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | (58.2 | ) | NM | 78.6 | — | (78.6 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 26.3 | 40.7 | % | 119.0 | 171.0 | 52.0 | 30.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 66 | (29) | (95) | NM | 119 | 18 | (101) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 8.2 | 3.4 | % | $ | 656.9 | $ | 654.5 | $ | 2.4 | 0.4 | % | Net income | $ | 346 | $ | 391 | $ | (45) | (11.5) | % | $ | 616 | $ | 662 | $ | (46) | (6.9) | % |
Payment Due by Period | |||||||||||||||||||
Less Than | More Than | ||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||
(In millions) | |||||||||||||||||||
Credit Facilities, including interest (a) | $ | 7,821.2 | $ | 292.4 | $ | 578.6 | $ | 568.9 | $ | 6,381.3 | |||||||||
All Senior Notes, including interest (b) | 7,346.3 | 261.6 | 523.1 | 1,732.2 | 4,829.4 |
Exhibit Number | Description | |||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101) |
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | ||||||||||||||||||||||||||||||
By: | Restaurant Brands International Inc., its general partner | |||||||||||||||||||||||||||||
Date: | By: | /s/ | ||||||||||||||||||||||||||||
Name: | ||||||||||||||||||||||||||||||
Title: | Chief Financial Officer of Restaurant Brands International Inc. (principal financial officer) (duly authorized officer) |