Cover Page
Cover Page - CAD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36787 | ||
Entity Registrant Name | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Tax Identification Number | 98-1206431 | ||
Entity Address, Address Line One | 130 King Street West, Suite 300 | ||
Entity Address, City or Town | Toronto, | ||
Entity Address, State or Province | ON | ||
Entity Address, Postal Zip Code | M5X 1E1 | ||
City Area Code | 905 | ||
Local Phone Number | 339-6011 | ||
Title of 12(b) Security | Class B Exchangeable Limited Partnership Units | ||
Trading Symbol | QSP | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 669,061,305 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement of Restaurant Brands International Inc., the registrant’s general partner, for the 2023 Annual General Meeting of Shareholders of Restaurant Brands International Inc., which is to be filed no later than 120 days after December 31, 2022, are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001618755 | ||
Partnership exchangeable units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 142,996,640 | ||
Class A common units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 202,006,067 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Miami, FL |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,178 | $ 1,087 |
Accounts and notes receivable, net of allowance of $36 and $18, respectively | 614 | 547 |
Inventories, net | 133 | 96 |
Prepaids and other current assets | 123 | 86 |
Total current assets | 2,048 | 1,816 |
Property and equipment, net of accumulated depreciation and amortization of $1,061 and $979, respectively | 1,950 | 2,035 |
Operating lease assets, net | 1,082 | 1,130 |
Intangible assets, net | 10,991 | 11,417 |
Goodwill | 5,688 | 6,006 |
Net investment in property leased to franchisees | 82 | 80 |
Other assets, net | 905 | 762 |
Total assets | 22,746 | 23,246 |
Current liabilities: | ||
Accounts and drafts payable | 758 | 614 |
Other accrued liabilities | 1,001 | 947 |
Gift card liability | 230 | 221 |
Current portion of long-term debt and finance leases | 127 | 96 |
Total current liabilities | 2,116 | 1,878 |
Long-term debt, net of current portion | 12,839 | 12,916 |
Finance leases, net of current portion | 311 | 333 |
Operating lease liabilities, net of current portion | 1,027 | 1,070 |
Other liabilities, net | 872 | 1,822 |
Deferred income taxes, net | 1,313 | 1,374 |
Total liabilities | 18,478 | 19,393 |
Commitments and contingencies (Note 17) | ||
Partners’ capital: | ||
Accumulated other comprehensive income (loss) | (973) | (1,024) |
Total Partners’ capital | 4,266 | 3,850 |
Noncontrolling interests | 2 | 3 |
Total equity | 4,268 | 3,853 |
Total liabilities and equity | 22,746 | 23,246 |
Class A common units | ||
Partners’ capital: | ||
Class A common units - 202,006,067 units issued and outstanding at December 31, 2022 and December 31, 2021 | 8,735 | 8,421 |
Partnership exchangeable units | ||
Partners’ capital: | ||
Partnership exchangeable units - 142,996,640 units issued and outstanding at December 31, 2022; 144,993,458 units issued and outstanding at December 31, 2021 | $ (3,496) | $ (3,547) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financing receivable, allowance for credit loss, current | $ 36 | $ 18 |
Accumulated depreciation and amortization, property, plant, and equipment | $ 1,061 | $ 979 |
Class A common units | ||
Class A common units, issued (in shares) | 202,006,067 | 202,006,067 |
Class A common units, outstanding (in shares) | 202,006,067 | 202,006,067 |
Partnership exchangeable units | ||
Partnership exchangeable units, issued (in shares) | 142,996,640 | 144,993,458 |
Partnership exchangeable units, outstanding (in shares) | 142,996,640 | 144,993,458 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||||
Revenues: | $ 6,505 | $ 5,739 | $ 4,968 | |
Operating costs and expenses: | ||||
Cost of sales | 2,312 | 1,890 | 1,610 | |
Franchise and property expenses | 518 | 489 | 515 | |
Advertising expenses and other services | 1,077 | 986 | 870 | |
General and administrative expenses | 631 | 484 | 407 | |
(Income) loss from equity method investments | 44 | 4 | 39 | |
Other operating expenses (income), net | 25 | 7 | 105 | |
Total operating costs and expenses | 4,607 | 3,860 | 3,546 | |
Income from operations | 1,898 | 1,879 | 1,422 | |
Interest expense, net | 533 | 505 | 508 | |
Loss on early extinguishment of debt | 0 | 11 | 98 | $ 98 |
Income before income taxes | 1,365 | 1,363 | 816 | |
Income tax (benefit) expense | (117) | 110 | 66 | |
Net income | 1,482 | 1,253 | 750 | |
Net income attributable to noncontrolling interests | 3 | 4 | 2 | |
Net income attributable to common unitholders | 1,479 | 1,249 | 748 | |
Class A common units | ||||
Operating costs and expenses: | ||||
Net income attributable to common unitholders | $ 1,008 | $ 838 | $ 486 | |
Earnings per unit - basic and diluted (Note 4): | ||||
Earnings per unit, basic (in shares) | $ 4.99 | $ 4.15 | $ 2.41 | |
Earnings per unit, diluted (in shares) | $ 4.99 | $ 4.15 | $ 2.41 | |
Weighted average units outstanding - basic and diluted (in millions) (Note 4): | ||||
Weighted average number of unit outstanding, basic (in dollars per share) | 202 | 202 | 202 | |
Weighted average number of units outstanding, diluted (in dollars per share) | 202 | 202 | 202 | |
Partnership exchangeable units | ||||
Operating costs and expenses: | ||||
Net income attributable to common unitholders | $ 471 | $ 411 | $ 262 | |
Earnings per unit - basic and diluted (Note 4): | ||||
Earnings per unit, basic (in shares) | $ 3.28 | $ 2.72 | $ 1.62 | |
Earnings per unit, diluted (in shares) | $ 3.28 | $ 2.72 | $ 1.62 | |
Weighted average units outstanding - basic and diluted (in millions) (Note 4): | ||||
Weighted average number of unit outstanding, basic (in dollars per share) | 144 | 151 | 162 | |
Weighted average number of units outstanding, diluted (in dollars per share) | 144 | 151 | 162 | |
Sales | ||||
Revenues: | ||||
Revenues: | $ 2,819 | $ 2,378 | $ 2,013 | |
Franchise and property revenues | ||||
Revenues: | ||||
Revenues: | 2,661 | 2,443 | 2,121 | |
Advertising revenues and other services | ||||
Revenues: | ||||
Revenues: | $ 1,025 | $ 918 | $ 834 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,482 | $ 1,253 | $ 750 |
Foreign currency translation adjustment | (703) | (67) | 332 |
Net change in fair value of net investment hedges, net of tax of $(77), $15, and $60 | 332 | 111 | (242) |
Net change in fair value of cash flow hedges, net of tax of $(141), $(36), and $91 | 382 | 96 | (244) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(12), $(36), and $(27) | 34 | 96 | 73 |
Gain (loss) recognized on defined benefit pension plans and other items, net of tax of $(2), $(3), and $3 | 6 | 15 | (16) |
Other comprehensive income (loss) | 51 | 251 | (97) |
Comprehensive income (loss) | 1,533 | 1,504 | 653 |
Comprehensive income (loss) attributable to noncontrolling interests | 3 | 4 | 2 |
Comprehensive income (loss) attributable to common unitholders | $ 1,530 | $ 1,500 | $ 651 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net change in fair value of net investment hedges, tax | $ (77) | $ 15 | $ 60 |
Net change in fair value of cash flow hedges, tax | (141) | (36) | 91 |
Amounts reclassified to earnings of cash flow hedges, tax | (12) | (36) | (27) |
Gain (loss) recognized on defined benefit pension plans and other items, tax | $ (2) | $ (3) | $ 3 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Class A common units | Class A common units Class A Common Units | Partnership exchangeable units | Partnership exchangeable units Partnership Exchangeable units |
Class A beginning balance (in shares) at Dec. 31, 2019 | 202,006,067 | ||||||
Beginning balance at Dec. 31, 2019 | $ 4,259 | $ (1,178) | $ 4 | $ 7,786 | $ (2,353) | ||
Partnership exchangeable units beginning balance (in shares) at Dec. 31, 2019 | 165,507,199 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on class A common units | (631) | (631) | |||||
Distributions declared on partnership exchangeable units | (336) | $ (336) | |||||
Exchange of Partnership exchangeable units for RBI common shares | $ 0 | 195 | $ (195) | ||||
Exchange of partnership exchange units for RBI common shares (in shares) | (10,393,861) | (3,636,169) | (3,636,169) | ||||
Repurchase of partnership exchangeable units (in shares) | (6,757,692) | ||||||
Distributions to RBI for repurchase of RBI common shares | $ (380) | $ (380) | |||||
Capital contribution from RBI Inc. | 158 | 158 | |||||
Restaurant VIE distributions | (2) | (2) | |||||
Net income | 750 | 2 | $ 486 | 262 | |||
Other comprehensive income (loss) | (97) | (97) | |||||
Class A ending balance (in shares) at Dec. 31, 2020 | 202,006,067 | ||||||
Ending balance at Dec. 31, 2020 | 3,721 | (1,275) | 4 | $ 7,994 | $ (3,002) | ||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2020 | 155,113,338 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on class A common units | (658) | (658) | |||||
Distributions declared on partnership exchangeable units | (318) | $ (318) | |||||
Exchange of Partnership exchangeable units for RBI common shares | $ 0 | 638 | $ (638) | ||||
Exchange of partnership exchange units for RBI common shares (in shares) | (10,119,880) | (10,119,880) | (10,119,880) | ||||
Distribution to RBI for repurchase of RBI common shares | $ (551) | (551) | |||||
Capital contribution from RBI Inc. | 160 | 160 | |||||
Restaurant VIE distributions | (5) | (5) | |||||
Net income | 1,253 | 4 | $ 838 | $ 411 | |||
Other comprehensive income (loss) | 251 | 251 | |||||
Class A ending balance (in shares) at Dec. 31, 2021 | 202,006,067 | 202,006,067 | |||||
Ending balance at Dec. 31, 2021 | 3,853 | (1,024) | 3 | $ 8,421 | $ (3,547) | ||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2021 | 144,993,458 | 144,993,458 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on class A common units | (664) | (664) | |||||
Distributions declared on partnership exchangeable units | (309) | $ (309) | |||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 111 | $ (111) | ||||
Exchange of partnership exchange units for RBI common shares (in shares) | (1,996,818) | (1,996,818) | |||||
Distribution to RBI for repurchase of RBI common shares | (326) | (326) | |||||
Capital contribution from RBI Inc. | 185 | 185 | |||||
Restaurant VIE distributions | (4) | (4) | |||||
Net income | 1,482 | 3 | $ 1,008 | $ 471 | |||
Other comprehensive income (loss) | 51 | 51 | |||||
Class A ending balance (in shares) at Dec. 31, 2022 | 202,006,067 | 202,006,067 | |||||
Ending balance at Dec. 31, 2022 | $ 4,268 | $ (973) | $ 2 | $ 8,735 | $ (3,496) | ||
Partnership exchangeable units ending balance (in shares) at Dec. 31, 2022 | 142,996,640 | 142,996,640 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class A common units | |||
Cash dividend declared by board (in dollars per share) | $ 3.28 | $ 3.26 | $ 3.12 |
Partnership exchangeable units | |||
Cash dividend declared by board (in dollars per share) | $ 2.16 | $ 2.12 | $ 2.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,482 | $ 1,253 | $ 750 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 190 | 201 | 189 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 11 | 97 |
Amortization of deferred financing costs and debt issuance discount | 28 | 27 | 26 |
(Income) loss from equity method investments | 44 | 4 | 39 |
Loss (gain) on remeasurement of foreign denominated transactions | (4) | (76) | 100 |
Net (gains) losses on derivatives | (9) | 87 | 32 |
Share-based compensation and non-cash incentive compensation expense | 136 | 102 | 84 |
Deferred income taxes | (60) | (5) | (208) |
Other | 19 | (16) | 28 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | (110) | 8 | (30) |
Inventories and prepaids and other current assets | (61) | 12 | (10) |
Accounts and drafts payable | 169 | 149 | (183) |
Other accrued liabilities and gift card liability | 37 | 67 | 6 |
Tenant inducements paid to franchisees | (26) | (20) | (22) |
Other long-term assets and liabilities | (345) | (78) | 23 |
Net cash provided by operating activities | 1,490 | 1,726 | 921 |
Cash flows from investing activities: | |||
Payments for property and equipment | (100) | (106) | (117) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 12 | 16 | 12 |
Net payment for purchase of Firehouse Subs, net of cash acquired | (12) | (1,004) | 0 |
Settlement/sale of derivatives, net | 71 | 5 | 33 |
Other investing activities, net | (35) | (14) | (7) |
Net cash used for investing activities | (64) | (1,103) | (79) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 2 | 1,335 | 5,235 |
Repayments of revolving line of credit, long-term debt and finance leases | (94) | (889) | (4,708) |
Payment of financing costs | 0 | (19) | (43) |
Distributions on Class A common and Partnership exchangeable units | (971) | (974) | (959) |
Repurchase of Partnership exchangeable units | 0 | 0 | (380) |
Distributions to RBI for repurchase of RBI common shares | (326) | (551) | 0 |
Capital contribution from RBI | 51 | 60 | 82 |
(Payments) proceeds from derivatives | 34 | ||
(Payments) proceeds from derivatives | (51) | (46) | |
Other financing activities, net | (3) | (4) | (2) |
Net cash used for financing activities | (1,307) | (1,093) | (821) |
Effect of exchange rates on cash and cash equivalents | (28) | (3) | 6 |
Increase (decrease) in cash and cash equivalents | 91 | (473) | 27 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 | 1,533 |
Cash and cash equivalents at end of period | 1,178 | 1,087 | 1,560 |
Supplemental cash flow disclosures: | |||
Interest paid | 487 | 404 | 463 |
Income taxes paid, net | $ 275 | $ 256 | $ 267 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Description of Business Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “our”) is a Canadian limited partnership. On December 15, 2021 we acquired FRG, LLC (“Firehouse Subs”). We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons ® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King ® brand (“Burger King” or “BK”), chicken under the Popeyes ® brand (“Popeyes” or “PLK”) and sandwiches under the Firehouse Subs ® brand (“Firehouse” or “FHS”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of December 31, 2022, we franchised or owned 5,600 Tim Hortons restaurants, 19,789 Burger King restaurants, 4,091 Popeyes restaurants, and 1,242 Firehouse restaurants, for a total of 30,722 restaurants, and operate in more than 100 countries. Approximately 100% of current system-wide restaurants are franchised. We are a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner, and as such, RBI has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership in accordance with the partnership agreement of Partnership (“partnership agreement”) and applicable laws. All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Fiscal Year We operate on a monthly calendar, with a fiscal year that ends on December 31. Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Principles of Consolidation The consolidated financial statements (the "Financial Statements") include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consolidate marketing funds we control. All material intercompany balances and transactions have been eliminated in consolidation. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, investment balances, outstanding loan guarantees and future lease payments, where applicable. As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant, but Tim Hortons owns the restaurant’s assets. In these arrangements, Tim Hortons has the ability to determine which operators manage the restaurants and for what duration. We perform an analysis to determine if the legal entity in which operations are conducted is a VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). As of December 31, 2022 and 2021, we determined that we are the primary beneficiary of 41 and 46 Restaurant VIEs, respectively, and accordingly, have consolidated the results of operations, assets and liabilities, and cash flows of these Restaurant VIEs in our Financial Statements. Assets and liabilities related to consolidated VIEs are not significant to our total consolidated assets and liabilities. Liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our general assets. Reclassifications Certain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been reclassified in order to be comparable with the current year classifications. These consist of the 2021 reclassification of $9 million of technology fee revenues from Franchise and property revenues to Advertising revenues and other services and $24 million of technology expenses from General and administrative expenses to Advertising expenses and other services. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. Foreign Currency Translation and Transaction Gains and Losses Our functional currency is the U.S. dollar, since our term loans and senior secured notes are denominated in U.S. dollars. The functional currency of each of our operating subsidiaries is generally the currency of the economic environment in which the subsidiary primarily does business. Our foreign subsidiaries’ financial statements are translated into U.S. dollars using the foreign exchange rates applicable to the dates of the financial statements. Assets and liabilities are translated using the end-of-period spot foreign exchange rates. Income, expenses and cash flows are translated at the average foreign exchange rates for each period. Equity accounts are translated at historical foreign exchange rates. The effects of these translation adjustments are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in the consolidated statements of equity. For any transaction that is denominated in a currency different from the entity’s functional currency, we record a gain or loss based on the difference between the foreign exchange rate at the transaction date and the foreign exchange rate at the transaction settlement date (or rate at period end, if unsettled) which is included within other operating expenses (income), net in the consolidated statements of operations. Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less and credit card receivables are considered cash equivalents. Accounts and Notes Receivable, net Our credit loss exposure is mainly concentrated in our accounts and notes receivable portfolio, which consists primarily of amounts due from franchisees, including royalties, rents, franchise fees, contributions due to advertising funds we manage and, in the case of our TH segment, amounts due for supply chain sales. Accounts and notes receivable are reported net of an allowance for expected credit losses over the estimated life of the receivable. Credit losses are estimated based on aging, historical collection experience, financial position of the franchisee and other factors, including those related to current economic conditions and reasonable and supportable forecasts of future conditions. Bad debt expense recognized for expected credit losses is classified in our consolidated statement of operations as Cost of sales, Franchise and property expenses or Advertising expenses and other services, based on the nature of the underlying receivable. Net bad debt expense (recoveries) totaled $19 million in 2022, $(9) million in 2021 and $33 million in 2020. Inventories Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials such as green coffee beans and finished goods such as new equipment, parts, paper supplies and restaurant food items. The moving average method is used to determine the cost of raw materials and finished goods inventories held for sale to Tim Hortons franchisees. Property and Equipment, net We record property and equipment at historical cost less accumulated depreciation and amortization, which is recognized using the straight-line method over the following estimated useful lives: (i) buildings and improvements – up to 40 years; (ii) restaurant equipment – up to 17 years; (iii) furniture, fixtures and other – up to 10 years; and (iv) manufacturing equipment – up to 25 years. Leasehold improvements to properties where we are the lessee are amortized over the lesser of the remaining term of the lease or the estimated useful life of the improvement. Major improvements are capitalized, while maintenance and repairs are expensed when incurred. Capitalized Software and Cloud Computing Costs We record capitalized software at historical cost less accumulated amortization, which is recognized using the straight-line method. Amortization expense is based on the estimated useful life of the software, which is primarily up to five years, once the asset is available for its intended use. Implementation costs incurred in connection with Cloud Computing Arrangements (“CCA”) are capitalized consistently with costs capitalized for internal-use software. Capitalized CCA implementation costs are included in “Other assets” in the consolidated balance sheets and are amortized over the term of the related hosting agreement, including renewal periods that are reasonably certain to be exercised. Amortization expense of CCA implementation costs is classified as “General and administrative expenses” in the consolidated statements of operations. Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. Goodwill and Intangible Assets Not Subject to Amortization Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in connection with the acquisition of Firehouse Subs in 2021, the acquisition of Popeyes in 2017, the acquisition of Tim Hortons in 2014 and the acquisition of Burger King Holdings, Inc. by 3G Capital Partners Ltd. in 2010. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, the Popeyes brand and the Firehouse Subs brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of October 1 of each year and more often if an event occurs or circumstances change which indicate impairment might exist. Our annual impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit or Brand in any period. We can resume the qualitative assessment for any reporting unit or Brand in any subsequent period. Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a quantitative goodwill impairment test that requires us to estimate the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying amount, we will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-likely-than-not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for a Brand, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand exceeds its fair value, we estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount exceeds fair value, an impairment loss is recognized in an amount equal to that excess. We completed our impairment tests for goodwill and the Brands as of October 1, 2022, 2021 and 2020 and no impairment resulted. Long-Lived Assets Long-lived assets, such as property and equipment, intangible assets subject to amortization and lease right-of-use assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, bankruptcy proceedings or other significant financial distress of a lessee; significant negative industry or economic trends; knowledge of transactions involving the sale of similar property at amounts below the carrying value; or our expectation to dispose of long-lived assets before the end of their estimated useful lives. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from use and eventual disposition of the assets or asset group. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows, we record an impairment charge equal to the excess, if any, of the net carrying value over fair value. Other Comprehensive Income (Loss) Other comprehensive income (loss) (“OCI”) refers to revenues, expenses, gains and losses that are included in comprehensive income (loss), but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to equity, net of tax. Our other comprehensive income (loss) is primarily comprised of unrealized gains and losses on foreign currency translation adjustments and unrealized gains and losses on hedging activity, net of tax. Derivative Financial Instruments We recognize and measure all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. Derivative instruments accounted for as net investments hedges are classified as long term assets and liabilities in the consolidated balance sheets. We may enter into derivatives that are not designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings, depending on the purpose of the derivatives and whether they qualify for, and we have applied, hedge accounting treatment. When applying hedge accounting, we designate at a derivative’s inception, the specific assets, liabilities or future commitments being hedged, and assess the hedge’s effectiveness at inception and on an ongoing basis. We discontinue hedge accounting when: (i) we determine that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designation of the derivatives as a hedge instrument is no longer appropriate. We do not enter into or hold derivatives for speculative purposes. Disclosures about Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). The fair value is based on assumptions that market participants would use when pricing the asset or liability. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation, as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. We carry all of our derivatives at fair value and value them using various pricing models or discounted cash flow analysis that incorporate observable market parameters, such as interest rate yield curves and currency rates, which are Level 2 inputs. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For disclosures about the fair value measurements of our derivative instruments, see Note 12, Derivative Instruments . The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of December 31, 2022 2021 Fair value of our variable term debt and senior notes $ 11,885 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,890 12,943 The determinations of fair values of certain tangible and intangible assets for purposes of the application of the acquisition method of accounting to the acquisition of Firehouse Subs were based on Level 3 inputs. The determination of fair values of our reporting units and the determination of the fair value of the Brands for impairment testing using a quantitative approach during 2022 and 2020 were based upon Level 3 inputs. Revenue Recognition Sales Sales consist primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and are presented net of any related sales tax. Orders placed by customers specify the goods to be delivered and transaction prices for supply chain sales. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Shipping and handling costs associated with outbound freight for supply chain sales are accounted for as fulfillment costs and classified as cost of sales. To a much lesser extent, sales also include Company restaurant sales (including Restaurant VIEs), which consist of sales to restaurant guests. Revenue from Company restaurant sales is recognized at the point of sale. Taxes assessed by a governmental authority that we collect are excluded from revenue. Franchise and property revenues Franchise revenues consist primarily of royalties, initial and renewal franchise fees and upfront fees from development agreements and master franchise and development agreements (“MFDAs”). Under franchise agreements, we provide franchisees with (i) a franchise license, which includes a license to use our intellectual property, (ii) pre-opening services, such as training and inspections, and (iii) ongoing services, such as development of training materials and menu items and restaurant monitoring and inspections. These services are highly interrelated and dependent upon the franchise license and we concluded these services do not represent individually distinct performance obligations. Consequently, we bundle the franchise license performance obligation and promises to provide these services into a single performance obligation (the “Franchise PO”), which we satisfy by providing a right to use our intellectual property over the term of each franchise agreement. Royalties are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee upon a new restaurant opening or renewal of an existing franchise agreement. Our franchise agreement royalties represent sales-based royalties that are related entirely to the Franchise PO and are recognized as franchise sales occur. Initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements other than MFDAs generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee. We have a distinct performance obligation under our MFDAs to grant subfranchising rights over a stated term. Under the terms of MFDAs, we typically either receive an upfront fee paid in cash and/or receive noncash consideration in the form of an equity interest in the master franchisee or an affiliate of the master franchisee. We account for noncash consideration as investments in the applicable equity method investee and recognize revenue in an amount equal to the fair value of the equity interest received. Upfront fees from master franchisees, including the fair value of noncash consideration, are deferred and amortized over the MFDA term on a straight-line basis. We may recognize unamortized upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage. We recognize gift card breakage income proportionately as each gift card is redeemed using an estimated breakage rate based on our historical experience. Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted for in accordance with applicable accounting guidance for leases and are excluded from the scope of revenue recognition guidance. In certain instances, we provide incentives to franchisees in connection with restaurant renovations or other initiatives. These incentives may consist of cash consideration or non-cash consideration such as restaurant equipment. In general, these incentives are designed to support system-wide sales growth to increase our future revenues. The costs of these incentives are capitalized and amortized as a reduction in franchise and property revenue over the term of the contract to which the incentive relates. Advertising revenues and other services Advertising revenues consist primarily of franchisee contributions to advertising funds in those markets where our subsidiaries manage an advertising fund and are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing, and related activities. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the Franchise PO. Other services revenues consist primarily of fees from digital sales that partially offset expenses related to technology initiatives. These services are distinct from the Franchise PO because they are not dependent upon the franchise license or highly interrelated with the franchise license. Cost of Sales Cost of sales consists primarily of costs associated with the management of our TH supply chain, including cost of goods, direct labor, depreciation and bad debt expense (recoveries) from supply chain sales. Cost of sales also includes food, paper and labor costs of Company restaurants. Franchise and Property Expenses Franchise and property expenses consist primarily of depreciation of properties leased to franchisees, rental expense associated with properties subleased to franchisees, amortization of franchise agreements, and bad debt expense (recoveries) from franchise and property revenues. Advertising Expenses and Other Services Advertising expenses and other services consist primarily of expenses relating to marketing, advertising and promotion, including market research, production, advertising costs, sales promotions, social media campaigns, technology initiatives, bad debt expense (recoveries) from franchisee contributions to advertising funds we manage, depreciation and amortization and other related support functions for the respective brands. Additionally, we may incur discretionary expenses to fund advertising programs in connection with periodic initiatives. Company restaurants and franchise restaurants contribute to advertising funds that our subsidiaries manage in the United States and Canada and certain other international markets. The advertising funds expense the production costs of advertising when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. The advertising contributions by Company restaurants (including Restaurant VIEs) are eliminated in consolidation. Consolidated advertising expense totaled $1,032 million, $962 million and $870 million in 2022, 2021 and 2020, respectively. Deferred Financing Costs Deferred financing costs are amortized over the term of the related debt agreement into interest expense using the effective interest method. Income Taxes Amounts in the Financial Statements related to income taxes are calculated using the principles of ASC Topic 740, Income Taxes . Under these principles, deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as well as tax credit carry-forwards and loss carry-forwards. These deferred taxes are measured by applying currently enacted tax rates. A deferred tax asset is recognized when it is considered more-likely-than-not to be realized. The effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the year in which the law is enacted. A valuation allowance reduces deferred tax assets when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We recognize positions taken or expected to be taken in a tax return in the Financial Statements when it is more-likely-than-not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. Translation gains and losses resulting from the remeasurement of foreign deferred tax assets or liabilities denominated in a currency other than the functional currency are classified as other operating expenses (income), net in the consolidated statements of operations. Share-based Compensation Compensation expense related to the issuance of share-based awards to our employees is measured at fair value on the grant date. We use the Black-Scholes option pricing model to value stock options. The fair value of restricted stock units (“RSUs”) is generally based on the closing price of RBI's common shares on the trading day preceding the date of grant. Our total shareholder return and if applicable our total shareholder return relative to our peer group is incorporated into the underlying assumptions using a Monte Carlo simulation valuation model to calculate grant date fair value for performance based awards with a market condition. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis, adjusted for estimated forfeitures of awards that are not expected to vest. We use historical data to estimate forfeitures for share-based awards. Upon the end of the service period, compensation expense is adjusted to account for the actual forfeiture rate. The compensation expense for awards that contain performance conditions is recognized when it is probable that the performance conditions will be achieved. New Accounting Pronouncements Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021 and December 2022, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2024. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedgi |
Firehouse Acquisition
Firehouse Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Firehouse Acquisition | Firehouse Acquisition We acquired Firehouse Subs on December 15, 2021 (the “Firehouse Acquisition”) which complements RBI's existing portfolio. Like RBI's other brands, the Firehouse Subs brand is managed independently, while benefiting from the global scale and resources of RBI. The Firehouse Acquisition was accounted for as a business combination using the acquisition method of accounting. Total consideration in connection with the Firehouse Acquisition was $1,016 million. The consideration was funded through cash on hand and $533 million of incremental borrowings under our Term Loan Facility - See Note 9, Long-Term Debt . Fees and expenses related to the Firehouse Acquisition and related financings totaled $1 million during 2022 and $18 million during 2021, consisting primarily of professional fees and compensation related expenses which are classified as general and administrative expenses in the accompanying consolidated statements of operations. During 2022, we adjusted our preliminary estimate of the fair value of net assets acquired. The final allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 816 Franchise agreements 19 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 821 Goodwill 195 Total consideration $ 1,016 The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding decrease in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price (in millions): 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) The Firehouse Subs brand has been assigned an indefinite life and, therefore, will not be amortized, but rather tested annually for impairment. Franchise agreements have a weighted average amortization period of 18 years. Goodwill attributable to the Firehouse Acquisition will be deductible and amortized for tax purposes. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company. We have allocated goodwill related to the Firehouse Acquisition to our FHS operating segment and to one reporting unit for goodwill impairment testing purposes. In the event that actual results vary from the estimates or assumptions used in the valuation or allocation process, we may be required to record an impairment charge or an increase in depreciation or amortization in future periods, or both. We completed our impairment reviews for goodwill and the Firehouse Subs brand as of October 1, 2022 and no impairment resulted. |
Earnings Per Unit
Earnings Per Unit | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Unit | Earnings Per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as the exercise of stock options and vesting of RSUs will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): 2022 2021 2020 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 1,008 $ 838 $ 486 Net income allocated to Partnership exchangeable unitholders 471 411 262 Net income attributable to common unitholders $ 1,479 $ 1,249 $ 748 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 Weighted average Partnership exchangeable units 144 151 162 Earnings per unit - basic and diluted: Class A common units (a) $ 4.99 $ 4.15 $ 2.41 Partnership exchangeable units (a) $ 3.28 $ 2.72 $ 1.62 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net, consist of the following (in millions): As of December 31, 2022 2021 Land $ 985 $ 1,011 Buildings and improvements 1,165 1,200 Restaurant equipment 192 193 Furniture, fixtures, and other 300 257 Finance leases 317 323 Construction in progress 52 30 3,011 3,014 Accumulated depreciation and amortization (1,061) (979) Property and equipment, net $ 1,950 $ 2,035 Depreciation and amortization expense on property and equipment totaled $135 million for 2022, $148 million for 2021 and $140 million for 2020. Included in our property and equipment, net at December 31, 2022 and 2021 are $227 million and $246 million, respectively, of assets leased under finance leases (mostly buildings and improvements), net of accumulated depreciation and amortization of $90 million and $77 million, respectively. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible assets, net and goodwill consist of the following (in millions): As of December 31, 2022 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 720 $ (313) $ 407 $ 722 $ (290) $ 432 Favorable leases 90 (57) 33 104 (63) 41 Subtotal 810 (370) 440 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,293 $ — $ 6,293 $ 6,695 $ — $ 6,695 Burger King brand 2,088 — 2,088 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 815 — 815 768 — 768 Subtotal 10,551 — 10,551 10,944 — 10,944 Intangible assets, net $ 10,991 $ 11,417 Goodwill Tim Hortons segment $ 4,059 $ 4,306 Burger King segment 590 601 Popeyes segment 846 846 Firehouse segment 193 253 Total $ 5,688 $ 6,006 Amortization expense on intangible assets totaled $39 million for 2022, $41 million for 2021, and $43 million for 2020. The change in the franchise agreements, brands and goodwill balances during 2022 was due to the impact of foreign currency translation and the impact of final adjustments to the preliminary allocation of consideration to the net tangible and intangible assets acquired in the Firehouse Acquisition. As of December 31, 2022, the estimated future amortization expense on identifiable assets subject to amortization is as follows (in millions): Twelve-months ended December 31, Amount 2023 $ 37 2024 36 2025 34 2026 34 2027 34 Thereafter 265 Total $ 440 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amount of our equity method investments was $167 million and $194 million as of December 31, 2022 and 2021, respectively, and is included as a component of Other assets, net in our consolidated balance sheets. Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 15.2% equity interest in Carrols Restaurant Group, Inc. (“Carrols”) based on the quoted market price on December 31, 2022 is approximately $13 million. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on December 31, 2022 is approximately $27 million. The aggregate market value of our 3.8% equity interest in TH International Limited based on the quoted market price on December 31, 2022 was approximately $16 million. We have evaluated recent declines in the market value of these equity method investments and recognized an impairment of $15 million as a result of a sustained decline in Carrols' share price and market capitalization during 2022. We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Franchise and property revenue recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): 2022 2021 2020 Revenues from affiliates: Royalties $ 353 $ 350 $ 239 Advertising revenues 71 67 50 Property revenues 31 32 32 Franchise fees and other revenue 18 21 14 Sales 18 10 3 Total $ 491 $ 480 $ 338 At December 31, 2022 and 2021, we had $42 million and $48 million, respectively, of accounts receivable, net from our equity method investments which were recorded in accounts and notes receivable, net in our consolidated balance sheets. With respect to our TH business, the most significant equity method investment is our 50.0% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $13 million, $16 million and $8 million during 2022, 2021 and 2020, respectively. We recognized rent expense associated with the TIMWEN Partnership of $19 million, $18 million, and $15 million during 2022, 2021 and 2020, respectively. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities | Other Accrued Liabilities and Other Liabilities Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions): As of December 31, 2022 2021 Current: Distributions payable $ 243 $ 241 Interest payable 89 63 Accrued compensation and benefits 124 99 Taxes payable 190 106 Deferred income 43 48 Accrued advertising expenses 37 43 Restructuring and other provisions 29 90 Current portion of operating lease liabilities 137 140 Other 109 117 Other accrued liabilities $ 1,001 $ 947 Non-current: Taxes payable $ 139 $ 533 Contract liabilities (see Note 15) 540 531 Derivatives liabilities 34 575 Unfavorable leases 50 65 Accrued pension 40 47 Deferred income 44 37 Other 25 34 Other liabilities, net $ 872 $ 1,822 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): As of December 31, 2022 2021 Term Loan B $ 5,190 $ 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 155 173 Less: unamortized deferred financing costs and deferred issuance discount (111) (138) Total debt, net 12,934 12,978 Less: current maturities of debt (95) (62) Total long-term debt $ 12,839 $ 12,916 Credit Facilities On December 13, 2021, two of our subsidiaries (the “Borrowers”) entered into a fifth incremental facility amendment and a sixth amendment (the “2021 Amendment”) to the credit agreement governing our senior secured term loan A facility (the “Term Loan A”), our senior secured term loan B facility (the “Term Loan B” and together with the Term Loan A the “Term Loan Facilities”) and our $1,000 million senior secured revolving credit facility (including revolving loans, swingline loans and letters of credit) (the “Revolving Credit Facility” and together with the Term Loan Facilities, the “Credit Facilities”). The 2021 Amendment increased the existing Term Loan A to $1,250 million and extended the maturity date of the Term Loan A and Revolving Credit Facility to December 13, 2026 (subject to earlier maturity in specified circumstances). The security and guarantees under the Revolving Credit Facility and Term Loan A are the same as those under the existing facilities. The proceeds from the increase in the Term Loan A were used with cash on hand to complete the Firehouse Acquisition. In connection with the 2021 Amendment, we capitalized approximately $12 million in debt issuance costs. The 2021 Amendment also amended the interest rate applicable to the Revolving Credit Facility and the Term Loan A to incorporate SOFR. The interest rate applicable to the Term Loan A and Revolving Credit Facility is, at our option, either (a) a base rate, subject to a floor of 1.00%, plus an applicable margin varying from 0.00% to 0.50%, or (b) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a 0.10% adjustment), subject to a floor of 0.00%, plus an applicable margin varying between 0.75% and 1.50%, in each case, determined by reference to a net first lien leverage-based pricing grid. The commitment fee on the unused portion of the Revolving Credit Facility is 0.15%. At December 31, 2022, the interest rate on the Term Loan A was 5.44%. The principal amount of the Term Loan A amortizes in quarterly installments equal to $8 million beginning March 31, 2023 until September 30, 2024 and thereafter in quarterly installments equal to $16 million until maturity, with the balance payable at maturity. The 2021 Amendment includes amendments to certain negative covenants to provide increased flexibility. The 2021 Amendment made no other material changes to the terms of the Credit Agreement. The maturity date of our Term Loan B is November 19, 2026 and the interest rate applicable to our Term Loan B is, at our option, either (a) a base rate, subject to a floor of 1.00%, plus an applicable margin of 0.75%, or (b) a Eurocurrency rate, subject to a floor of 0.00%, plus an applicable margin of 1.75%. At December 31, 2022, the interest rate on the Term Loan B was 6.13%. The principal amount of the Term Loan B amortizes in quarterly installments equal to $13 million until maturity, with the balance payable at maturity. Revolving Credit Facility As of December 31, 2022, we had no amounts outstanding under our Revolving Credit Facility. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt, RBI share repurchases or partnership exchangeable unit repurchases, to fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. The interest rate applicable to amounts drawn under each letter of credit is 0.75% to 1.50%, depending on our net first lien leverage ratio. As of December 31, 2022, we had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability was $998 million. Obligations under the Credit Facilities are guaranteed on a senior secured basis, jointly and severally, by the direct parent company of one of the Borrowers and substantially all of its Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Company LLC, Popeyes Louisiana Kitchen, Inc., FRG, LLC and substantially all of their respective Canadian and U.S. subsidiaries (the “Credit Guarantors”). Amounts borrowed under the Credit Facilities are secured on a first priority basis by a perfected security interest in substantially all of the present and future property (subject to certain exceptions) of each Borrower and Credit Guarantor. 3.875% First Lien Senior Notes due 2028 On September 24, 2019, the Borrowers entered into an indenture (the “3.875% First Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 3.875% first lien senior notes due January 15, 2028 (the “2019 3.875% Senior Notes”). On July 6, 2021, the Borrowers issued an additional $800 million under the 3.875% First Lien Senior Notes Indenture (the “Additional Notes” and together with the 2019 3.875% Senior Notes, the “3.875% First Lien Senior Notes due 2028”). No principal payments are due until maturity and interest is paid semi-annually. The Additional Notes were priced at 100.250% of their face value. The net proceeds from the offering of the Additional Notes were used to redeem the remaining $775 million principal amount outstanding of 4.25% first lien senior notes, plus any accrued and unpaid interest thereon, and pay related redemption premiums, fees and expenses. In connection with the issuance of the Additional Notes, we capitalized approximately $7 million in debt issuance costs. In connection with the redemption of the remaining $775 million principal amount outstanding of the 4.25% first lien senior notes, we recorded a loss on early extinguishment of debt of $11 million that primarily reflects the payment of redemption premiums and the write-off of unamortized debt issuance costs. Obligations under the 3.875% First Lien Senior Notes due 2028 are guaranteed on a senior secured basis, jointly and severally, by the Borrowers and substantially all of the Borrower's Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Company LLC, Popeyes Louisiana Kitchen, Inc., FRG, LLC and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The 3.875% First Lien Senior Notes due 2028 are first lien senior secured obligations and rank equal in right of payment with all of the existing and future first lien senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees under our Credit Facilities. The 3.875% First Lien Senior Notes due 2028 may be redeemed in whole or in part at any time at the redemption prices set forth in the 3.875% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 3.875% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 5.75% First Lien Senior Notes due 2025 On April 7, 2020, the Borrowers entered into an indenture (the “5.75% First Lien Senior Notes Indenture”) in connection with the issuance of $500 million of 5.75% first lien notes due April 15, 2025 (the “5.75% First Lien Senior Notes due 2025”). No principal payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 5.75% First Lien Senior Notes due 2025 were used for general corporate purposes. In connection with the issuance of the 5.75% First Lien Senior Notes due 2025, we capitalized approximately $10 million in debt issuance costs. Obligations under the 5.75% First Lien Senior Notes due 2025 are guaranteed on a senior secured basis, jointly and severally, by the Note Guarantors. The 5.75% First Lien Senior Notes due 2025 are first lien senior secured obligations and rank equal in right of payment with all of the existing and future first lien senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities. Our 5.75% First Lien Senior Notes due 2025 may be redeemed in whole or in part at any time at the redemption prices set forth in the 5.75% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 5.75% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 3.50% First Lien Senior Notes due 2029 On November 9, 2020, the Borrowers entered into an indenture (the “3.50% First Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 3.50% first lien notes due February 15, 2029 (the “3.50% First Lien Senior Notes due 2029”). No principal payments are due until maturity and interest is paid semi-annually. The proceeds from the offering of the 3.50% First Lien Senior Notes due 2029, together with cash on hand, were used to redeem $725 million of 4.25% first lien senior notes and pay related redemption premiums, fees and expenses. In connection with the issuance of the 3.50% First Lien Senior Notes due 2029, we capitalized approximately $7 million in debt issuance costs. In connection with the redemption of the 4.25% first lien senior notes, we recorded a loss on early extinguishment of debt of $19 million that primarily reflects the payment of premiums to redeem the notes and the write-off of unamortized debt issuance costs. Obligations under the 3.50% First Lien Senior Notes due 2029 are guaranteed on a senior secured basis, jointly and severally, by the Note Guarantors. The 3.50% First Lien Senior Notes due 2029 are first lien senior secured obligations and rank equal in right of payment with all of the existing and future first lien senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities. Our 3.50% First Lien Senior Notes due 2029 may be redeemed in whole or in part, on or after February 15, 2024 at the redemption prices set forth in the 3.50% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 3.50% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 4.375% Second Lien Senior Notes due 2028 On November 19, 2019, the Borrowers entered into an indenture (the “4.375% Second Lien Senior Notes Indenture”) in connection with the issuance of $750 million of 4.375% second lien senior notes due January 15, 2028 (the “4.375% Second Lien Senior Notes due 2028”). No principal payments are due until maturity and interest is paid semi-annually. Obligations under the 4.375% Second Lien Senior Notes due 2028 are guaranteed on a second priority senior secured basis, jointly and severally, by the Note Guarantors. The 4.375% Second Lien Senior Notes due 2028 are second lien senior secured obligations and rank equal in right of payment with all of the existing and future senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities, and effectively subordinated to all of the existing and future first lien senior debt of the Borrowers and Note Guarantors. Our 4.375% Second Lien Senior Notes due 2028 may be redeemed in whole or in part at any time at the redemption prices set forth in the 4.375% Second Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 4.375% Second Lien Senior Notes Indenture also contains redemption provisions related to tender offers, change of control and equity offerings, among others. 4.00% Second Lien Senior Notes due 2030 During 2020, the Borrowers entered into an indenture (the “4.00% Second Lien Senior Notes Indenture”) in connection with the issuance of $2,900 million of 4.00% second lien notes due October 15, 2030 (the “4.00% Second Lien Senior Notes due 2030”). No principal payments are due until maturity and interest is paid semi-annually. The proceeds from the offering of the 4.00% Second Lien Senior Notes due 2030 were used to redeem the entire outstanding principal balance of $2,800 million of 5.00% second lien senior notes due October 15, 2025 (the “5.00% Second Lien Senior Notes due 2025”), pay related redemption premiums, fees and expenses. In connection with the issuance of the 4.00% Second Lien Senior Notes due 2030, we capitalized approximately $26 million in debt issuance costs. In connection with the full redemption of the 5.00% Second Lien Senior Notes due 2025, we recorded a loss on early extinguishment of debt of $79 million that primarily reflects the payment of premiums to redeem the notes and the write-off of unamortized debt issuance costs. Obligations under the 4.00% Second Lien Senior Notes due 2030 are guaranteed on a second priority senior secured basis, jointly and severally, by the Note Guarantors. The 4.00% Second Lien Senior Notes due 2030 are second lien senior secured obligations and rank equal in right of payment will all of the existing and future senior debt of the Borrowers and Note Guarantors and effectively subordinated to all of the existing and future first lien senior debt of the Borrowers and Note Guarantors. Our 4.00% Second Lien Senior Notes due 2030 may be redeemed in whole or in part, on or after October 15, 2025 at the redemption prices set forth in the 4.00% Second Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 4.00% Second Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. Restrictions and Covenants Our Credit Facilities, as well as the 3.875% First Lien Senior Notes Indenture, 5.75% First Lien Senior Notes Indenture, 3.50% First Lien Senior Notes Indenture, 4.375% Second Lien Senior Notes Indenture and 4.00% Second Lien Senior Notes Indenture (all together the “Senior Notes Indentures”) contain a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability and the ability of certain of our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers, consolidations, liquidations and dissolutions; sell assets; pay dividends and make other payments in respect of capital stock; make investments, loans and advances; pay or modify the terms of certain indebtedness; and engage in certain transactions with affiliates. In addition, under the Credit Facilities, the Borrowers are not permitted to exceed a first lien senior secured leverage ratio of 6.50 to 1.00 when, as of the end of any fiscal quarter beginning with the first fiscal quarter of 2020, (1) any amounts are outstanding under the Term Loan A and/or (2) the sum of (i) the amount of letters of credit outstanding exceeding $50 million (other than those that are cash collateralized); (ii) outstanding amounts under the Revolving Credit Facility and (iii) outstanding amounts of swing line loans, exceeds 30.0% of the commitments under the Revolving Credit Facility. The restrictions under the Credit Facilities and the Senior Notes Indentures have resulted in substantially all of our consolidated assets being restricted. As of December 31, 2022, we were in compliance with applicable financial debt covenants under the Credit Facilities and the Senior Notes Indentures and there were no limitations on our ability to draw on the remaining availability under our Revolving Credit Facility. TH Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of December 31, 2022, we had approximately C$203 million outstanding under the TH Facility with a weighted average interest rate of 6.07%. RE Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of $50 million with a maturity date of October 12, 2028 (the “RE Facility”). The interest rate applicable to the RE Facility is, at our option, either (i) a base rate, subject to a floor of 0.50%, plus an applicable margin of 0.50% or (ii) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a margin based on duration), subject to a floor of 0.00%, plus an applicable margin of 1.50%. Obligations under the RE Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the RE Facility are secured by certain parcels of real estate. As of December 31, 2022, we had approximately $2 million outstanding under the RE Facility with a weighted average interest rate of 5.97%. Debt Issuance Costs During 2021 and 2020, we incurred aggregate deferred financing costs of $19 million and $43 million, respectively. We did not incur any significant deferred financing costs during 2022. Loss on Early Extinguishment of Debt During 2021, we recorded an $11 million loss on early extinguishment of debt that primarily reflects the payment of redemption premiums and the write-off of unamortized debt issuance costs in connection with the redemption of the remaining $775 million principal amount outstanding of the 4.25% first lien senior notes. During 2020, we recorded a $98 million loss on early extinguishment of debt that primarily reflects the payment of premiums and the write-off of unamortized debt issuance costs in connection with the full redemption of the 5.00% Second Lien Senior Notes due 2025 and the partial redemption of the 4.25% first lien senior notes. Maturities The aggregate maturities of our long-term debt as of December 31, 2022 are as follows (in millions): Year Ended December 31, Principal Amount 2023 $ 97 2024 107 2025 741 2026 6,148 2027 — Thereafter 5,952 Total $ 13,045 Interest Expense, net Interest expense, net consists of the following (in millions): 2022 2021 2020 Debt (a) $ 493 $ 461 $ 471 Finance lease obligations 19 20 20 Amortization of deferred financing costs and debt issuance discount 28 27 26 Interest income (7) (3) (9) Interest expense, net $ 533 $ 505 $ 508 (a) Amount includes $56 million, $45 million and $69 million benefit during 2022, 2021 and 2020, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 12, Derivative Instruments . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2022, we leased or subleased 4,978 restaurant properties to franchisees and 147 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2022 2021 Land $ 880 $ 899 Buildings and improvements 1,129 1,180 Restaurant equipment 16 18 2,025 2,097 Accumulated depreciation and amortization (625) (587) Property and equipment leased, net $ 1,400 $ 1,510 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2022 2021 Future rents to be received: Future minimum lease receipts $ 112 $ 113 Contingent rents (a) 5 7 Estimated unguaranteed residual value 6 5 Unearned income (36) (40) 87 85 Current portion included within accounts receivable (5) (5) Net investment in property leased to franchisees $ 82 $ 80 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2022 2021 2020 Rental income: Minimum lease payments $ 410 $ 455 $ 445 Variable lease payments 395 329 262 Amortization of favorable and unfavorable income lease contracts, net 1 3 6 Subtotal - lease income from operating leases 806 787 713 Earned income on direct financing and sales-type leases 7 6 5 Total property revenues $ 813 $ 793 $ 718 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2022 2021 2020 Operating lease cost $ 202 $ 202 $ 199 Operating lease variable lease cost 196 193 177 Finance lease cost: Amortization of right-of-use assets 27 31 29 Interest on lease liabilities 19 20 20 Sublease income (603) (587) (534) Total lease cost (income) $ (159) $ (141) $ (109) Lease Term and Discount Rate as of December 31, 2022 and 2021 As of December 31, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 9.8 years 10.1 years Finance leases 11.5 years 11.4 years Weighted-average discount rate: Operating leases 5.5 % 5.5 % Finance leases 5.8 % 6.0 % Other Information for 2022, 2021 and 2020 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 198 $ 200 $ 200 Operating cash flows from finance leases $ 19 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 31 $ 29 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 22 $ 52 $ 59 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 133 $ 118 As of December 31, 2022, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2023 $ 8 $ 355 $ 49 $ 195 2024 8 332 48 184 2025 8 306 44 170 2026 7 276 41 153 2027 7 246 38 139 Thereafter 74 1,217 244 697 Total minimum receipts / payments $ 112 $ 2,732 464 1,538 Less amount representing interest (121) (374) Present value of minimum lease payments 343 1,164 Current portion of lease obligations (32) (137) Long-term portion of lease obligations $ 311 $ 1,027 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,663 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2022, we leased or subleased 4,978 restaurant properties to franchisees and 147 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2022 2021 Land $ 880 $ 899 Buildings and improvements 1,129 1,180 Restaurant equipment 16 18 2,025 2,097 Accumulated depreciation and amortization (625) (587) Property and equipment leased, net $ 1,400 $ 1,510 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2022 2021 Future rents to be received: Future minimum lease receipts $ 112 $ 113 Contingent rents (a) 5 7 Estimated unguaranteed residual value 6 5 Unearned income (36) (40) 87 85 Current portion included within accounts receivable (5) (5) Net investment in property leased to franchisees $ 82 $ 80 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2022 2021 2020 Rental income: Minimum lease payments $ 410 $ 455 $ 445 Variable lease payments 395 329 262 Amortization of favorable and unfavorable income lease contracts, net 1 3 6 Subtotal - lease income from operating leases 806 787 713 Earned income on direct financing and sales-type leases 7 6 5 Total property revenues $ 813 $ 793 $ 718 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2022 2021 2020 Operating lease cost $ 202 $ 202 $ 199 Operating lease variable lease cost 196 193 177 Finance lease cost: Amortization of right-of-use assets 27 31 29 Interest on lease liabilities 19 20 20 Sublease income (603) (587) (534) Total lease cost (income) $ (159) $ (141) $ (109) Lease Term and Discount Rate as of December 31, 2022 and 2021 As of December 31, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 9.8 years 10.1 years Finance leases 11.5 years 11.4 years Weighted-average discount rate: Operating leases 5.5 % 5.5 % Finance leases 5.8 % 6.0 % Other Information for 2022, 2021 and 2020 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 198 $ 200 $ 200 Operating cash flows from finance leases $ 19 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 31 $ 29 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 22 $ 52 $ 59 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 133 $ 118 As of December 31, 2022, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2023 $ 8 $ 355 $ 49 $ 195 2024 8 332 48 184 2025 8 306 44 170 2026 7 276 41 153 2027 7 246 38 139 Thereafter 74 1,217 244 697 Total minimum receipts / payments $ 112 $ 2,732 464 1,538 Less amount representing interest (121) (374) Present value of minimum lease payments 343 1,164 Current portion of lease obligations (32) (137) Long-term portion of lease obligations $ 311 $ 1,027 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,663 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2022, we leased or subleased 4,978 restaurant properties to franchisees and 147 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2022 2021 Land $ 880 $ 899 Buildings and improvements 1,129 1,180 Restaurant equipment 16 18 2,025 2,097 Accumulated depreciation and amortization (625) (587) Property and equipment leased, net $ 1,400 $ 1,510 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2022 2021 Future rents to be received: Future minimum lease receipts $ 112 $ 113 Contingent rents (a) 5 7 Estimated unguaranteed residual value 6 5 Unearned income (36) (40) 87 85 Current portion included within accounts receivable (5) (5) Net investment in property leased to franchisees $ 82 $ 80 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2022 2021 2020 Rental income: Minimum lease payments $ 410 $ 455 $ 445 Variable lease payments 395 329 262 Amortization of favorable and unfavorable income lease contracts, net 1 3 6 Subtotal - lease income from operating leases 806 787 713 Earned income on direct financing and sales-type leases 7 6 5 Total property revenues $ 813 $ 793 $ 718 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2022 2021 2020 Operating lease cost $ 202 $ 202 $ 199 Operating lease variable lease cost 196 193 177 Finance lease cost: Amortization of right-of-use assets 27 31 29 Interest on lease liabilities 19 20 20 Sublease income (603) (587) (534) Total lease cost (income) $ (159) $ (141) $ (109) Lease Term and Discount Rate as of December 31, 2022 and 2021 As of December 31, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 9.8 years 10.1 years Finance leases 11.5 years 11.4 years Weighted-average discount rate: Operating leases 5.5 % 5.5 % Finance leases 5.8 % 6.0 % Other Information for 2022, 2021 and 2020 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 198 $ 200 $ 200 Operating cash flows from finance leases $ 19 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 31 $ 29 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 22 $ 52 $ 59 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 133 $ 118 As of December 31, 2022, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2023 $ 8 $ 355 $ 49 $ 195 2024 8 332 48 184 2025 8 306 44 170 2026 7 276 41 153 2027 7 246 38 139 Thereafter 74 1,217 244 697 Total minimum receipts / payments $ 112 $ 2,732 464 1,538 Less amount representing interest (121) (374) Present value of minimum lease payments 343 1,164 Current portion of lease obligations (32) (137) Long-term portion of lease obligations $ 311 $ 1,027 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,663 million due in the future under non-cancelable subleases |
Leases | Leases As of December 31, 2022, we leased or subleased 4,978 restaurant properties to franchisees and 147 non-restaurant properties to third parties under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes. We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes. Partnership as Lessor Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2022 2021 Land $ 880 $ 899 Buildings and improvements 1,129 1,180 Restaurant equipment 16 18 2,025 2,097 Accumulated depreciation and amortization (625) (587) Property and equipment leased, net $ 1,400 $ 1,510 Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2022 2021 Future rents to be received: Future minimum lease receipts $ 112 $ 113 Contingent rents (a) 5 7 Estimated unguaranteed residual value 6 5 Unearned income (36) (40) 87 85 Current portion included within accounts receivable (5) (5) Net investment in property leased to franchisees $ 82 $ 80 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2022 2021 2020 Rental income: Minimum lease payments $ 410 $ 455 $ 445 Variable lease payments 395 329 262 Amortization of favorable and unfavorable income lease contracts, net 1 3 6 Subtotal - lease income from operating leases 806 787 713 Earned income on direct financing and sales-type leases 7 6 5 Total property revenues $ 813 $ 793 $ 718 Partnership as Lessee Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2022 2021 2020 Operating lease cost $ 202 $ 202 $ 199 Operating lease variable lease cost 196 193 177 Finance lease cost: Amortization of right-of-use assets 27 31 29 Interest on lease liabilities 19 20 20 Sublease income (603) (587) (534) Total lease cost (income) $ (159) $ (141) $ (109) Lease Term and Discount Rate as of December 31, 2022 and 2021 As of December 31, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 9.8 years 10.1 years Finance leases 11.5 years 11.4 years Weighted-average discount rate: Operating leases 5.5 % 5.5 % Finance leases 5.8 % 6.0 % Other Information for 2022, 2021 and 2020 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 198 $ 200 $ 200 Operating cash flows from finance leases $ 19 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 31 $ 29 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 22 $ 52 $ 59 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 133 $ 118 As of December 31, 2022, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2023 $ 8 $ 355 $ 49 $ 195 2024 8 332 48 184 2025 8 306 44 170 2026 7 276 41 153 2027 7 246 38 139 Thereafter 74 1,217 244 697 Total minimum receipts / payments $ 112 $ 2,732 464 1,538 Less amount representing interest (121) (374) Present value of minimum lease payments 343 1,164 Current portion of lease obligations (32) (137) Long-term portion of lease obligations $ 311 $ 1,027 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,663 million due in the future under non-cancelable subleases |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes, classified by source of income, is as follows (in millions): 2022 2021 2020 Canadian $ 444 $ 457 $ 200 Foreign 921 906 616 Income before income taxes $ 1,365 $ 1,363 $ 816 Income tax (benefit) expense attributable to income from continuing operations consists of the following (in millions): 2022 2021 2020 Current: Canadian $ (284) $ 16 $ 45 U.S. Federal 105 (10) 125 U.S. state, net of federal income tax benefit 26 25 26 Other Foreign 96 84 78 $ (57) $ 115 $ 274 Deferred: Canadian $ 20 $ 32 $ (67) U.S. Federal (79) (37) (82) U.S. state, net of federal income tax benefit (9) (7) (27) Other Foreign 8 7 (32) $ (60) $ (5) $ (208) Income tax expense (benefit) $ (117) $ 110 $ 66 The statutory rate reconciles to the effective income tax rate as follows: 2022 2021 2020 Statutory rate 26.5 % 26.5 % 26.5 % Costs and taxes related to foreign operations 3.8 3.5 9.6 Foreign exchange gain (loss) — — 0.5 Foreign tax rate differential (13.7) (13.9) (15.6) Change in valuation allowance (0.7) 1.1 1.2 Change in accrual for tax uncertainties (26.7) (7.4) 3.9 Intercompany financing 1.2 (3.5) (6.1) Impact of Tax Act — — (7.8) Swiss Tax Reform — — (5.1) Benefit from stock option exercises (0.1) (0.8) (0.3) Litigation settlements and reserves — 1.4 — Other 1.1 1.2 1.2 Effective income tax rate (8.6) % 8.1 % 8.0 % In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that significantly revised the U.S. tax code. During 2020, various guidance was issued by the U.S. tax authorities relating to the Tax Act and, after review of such guidance, we recorded a favorable adjustment to our deferred tax assets of $64 million related to a tax attribute carryforward, which decreased our 2020 effective tax rate by 7.8%. In a referendum held on May 19, 2019, Swiss voters adopted the Federal Act on Tax Reform and AVS Financing (“TRAF”), under which certain long-standing preferential cantonal tax regimes were abolished effective January 1, 2020, which the canton of Zug formally adopted in November 2019. Company subsidiaries in the canton of Zug were subjected to TRAF and therefore the TRAF impacted our consolidated results of operations during 2020. In 2020, a deferred tax asset was recorded due to an election made under TRAF by one of our Swiss subsidiaries. The amounts impacting income tax expense for the effects of the changes from the TRAF was approximately $41 million in 2020, which decreased our 2020 effective tax rate by approximately 5.1%. Companies subject to the Global Intangible Low-Taxed Income provision (GILTI) have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for outside basis temporary differences expected to reverse as GILTI. We have elected to account for GILTI as a period cost. Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in millions): 2022 2021 2020 Income tax (benefit) expense from continuing operations $ (117) $ 110 $ 66 Cash flow hedge in accumulated other comprehensive income (loss) 153 72 (64) Net investment hedge in accumulated other comprehensive income (loss) 77 (15) (60) Foreign Currency Translation in accumulated other comprehensive income (loss) — (4) 12 Pension liability in accumulated other comprehensive income (loss) 2 3 (3) Total $ 115 $ 166 $ (49) The significant components of deferred income tax (benefit) expense attributable to income from continuing operations are as follows (in millions): 2022 2021 2020 Deferred income tax expense (benefit) $ 79 $ (22) $ (230) Change in valuation allowance (143) 14 22 Change in effective U.S. state income tax rate 3 3 1 Change in effective foreign income tax rate 1 — (1) Total $ (60) $ (5) $ (208) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in millions): As of December 31, 2022 2021 Deferred tax assets: Accounts and notes receivable $ 8 $ 4 Accrued employee benefits 56 48 Leases 105 115 Operating lease liabilities 304 317 Liabilities not currently deductible for tax 403 346 Tax loss and credit carryforwards 316 517 Derivatives — 164 Other 9 (1) Total gross deferred tax assets 1,201 1,510 Valuation allowance (194) (356) Net deferred tax assets 1,007 1,154 Less deferred tax liabilities: Property and equipment, principally due to differences in depreciation 15 15 Intangible assets 1,707 1,751 Leases 125 129 Operating lease assets 281 295 Statutory impairment 27 29 Derivatives 65 — Outside basis difference 13 38 Total gross deferred tax liabilities 2,233 2,257 Net deferred tax liability $ 1,226 $ 1,103 The valuation allowance had a net decrease of $162 million during 2022 primarily due to the change in estimates related to derivatives and the utilization of foreign tax credits and capital losses. Changes in the valuation allowance are as follows (in millions): 2022 2021 2020 Beginning balance $ 356 $ 364 $ 329 Change in estimates recorded to deferred income tax expense (9) 14 19 Changes in losses and credits (134) — 3 (Reductions) additions related to other comprehensive income (19) (22) 13 Ending balance $ 194 $ 356 $ 364 The gross amount and expiration dates of operating loss and tax credit carry-forwards as of December 31, 2022 are as follows (in millions): Amount Expiration Date Canadian net operating loss carryforwards $ 521 2036-2042 Canadian capital loss carryforwards 153 Indefinite Canadian tax credits 4 2023-2041 U.S. state net operating loss carryforwards 546 2023-2042 U.S. federal net operating loss carryforwards 19 Indefinite U.S. capital loss carryforwards 16 2040 U.S. foreign tax credits 69 2023-2031 Other foreign net operating loss carryforwards 249 Indefinite Other foreign net operating loss carryforwards 41 2023-2038 Other foreign capital loss carryforward 27 Indefinite Total $ 1,645 We are generally permanently reinvested on any potential outside basis differences except for unremitted earnings and profits and thus do not record a deferred tax liability for such outside basis differences. To the extent of unremitted earning and profits, we generally review various factors including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity and expected cash requirements to fund our various obligations and record deferred taxes to the extent we expect to distribute. We had $139 million and $437 million of unrecognized tax benefits at December 31, 2022 and December 31, 2021, respectively, which if recognized, would favorably affect the effective income tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): 2022 2021 2020 Beginning balance $ 437 $ 497 $ 506 Additions for tax positions related to the current year (5) 9 9 Additions for tax positions of prior years 3 23 7 Reductions for tax positions of prior years (15) (5) (25) Additions for settlement — 7 — Reductions due to statute expiration (281) (94) — Ending balance $ 139 $ 437 $ 497 Although the timing of the resolution, settlement, and closure of any audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. During the twelve months beginning January 1, 2023, it is reasonably possible we will reduce unrecognized tax benefits by up to approximately $48 million due to the expiration of statutes of limitations, anticipated closure of various tax matters currently under examination, and settlements with tax authorities all being possibly impacted in multiple jurisdictions. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of accrued interest and penalties was $27 million and $121 million at December 31, 2022 and 2021, respectively. Potential interest and penalties associated with uncertain tax positions in various jurisdictions recognized was $3 million during 2022, $2 million during 2021 and $31 million during 2020. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision. We file income tax returns with Canada and its provinces and territories. Generally, we are subject to routine examinations by the Canada Revenue Agency (“CRA”). The CRA is conducting examinations of the 2016 through 2018 taxation years. Additionally, income tax returns filed with various provincial jurisdictions are generally open to examination for periods up to six years subsequent to the filing and assessment of the respective return. We also file income tax returns, including returns for our subsidiaries, with U.S. federal, U.S. state, and other foreign jurisdictions. We are subject to routine examination by taxing authorities in the U.S. jurisdictions, as well as other foreign tax jurisdictions. Taxable years of such U.S. companies are closed through 2018 for U.S. federal income tax purposes. We have various U.S. state and other foreign income tax returns in the process of examination. From time to time, these audits result in proposed assessments where the ultimate resolution may result in owing additional taxes. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Disclosures about Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges and derivatives designated as net investment hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps At December 31, 2022, we had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $3,500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities, including any subsequent refinancing or replacement of the Term Loan Facilities, beginning August 31, 2021 through the termination date of October 31, 2028. Additionally, at December 31, 2022, we also had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities effective September 30, 2019 through the termination date of September 30, 2026. At inception, all of these interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in AOCI, net of tax, and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. The net amount of pre-tax gains in connection with these net unrealized gains in AOCI as of December 31, 2022 that we expect to be reclassified into interest expense within the next 12 months is $86 million. Cross-Currency Rate Swaps To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At December 31, 2022, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At December 31, 2022, we had outstanding cross-currency rate swaps that we entered into during 2022 to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as net investment hedges. These swaps are contracts in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $5,000 million through the maturity date of September 30, 2028. During 2022, we de-designated existing cross-currency rate swap hedges between the Canadian dollar and U.S. dollar with a total notional amount of $5,000 million for hedge accounting. As a result of these de-designations, changes in fair value of these un-designated hedges were recognized in earnings. Concurrently with these de-designations and to offset the changes in fair value recognized in earnings, we entered into off-setting cross-currency rate swaps, with a total notional amount of $5,000 million, that were not designated as a hedge for hedge accounting and as such changes in fair value were recognized in earnings. The balances in AOCI associated with the de-designated cross-currency rate swaps will remain in AOCI and will only be reclassified into earnings if and when the net investment in our Canadian subsidiaries is sold or substantially sold. The entire notional amount of the de-designated cross-currency rate swaps and the off-setting cross-currency rate swaps were cash settled during 2022 for approximately $35 million in net proceeds and included within operating activities in the consolidated statements of cash flows. At December 31, 2022, we had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest payments on the Euro notional amount of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $1,200 million. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. During 2018, we extended the term of the swaps from March 31, 2021 to the maturity date of February 17, 2024. The extension of the term resulted in a re-designation of the hedge and the swaps continue to be accounted for as a net investment hedge. Additionally, at December 31, 2022, we also had outstanding cross-currency rate swaps in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $400 million, entered during 2018, and $500 million, entered during 2019, through the maturity date of February 17, 2024 and $150 million, entered during 2021, through the maturity date of October 31, 2028. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. The fixed to fixed cross-currency rate swaps hedging Canadian dollar and Euro net investments utilized the forward method of effectiveness assessment prior to March 15, 2018. On March 15, 2018, we de-designated and subsequently re-designated the outstanding fixed to fixed cross-currency rate swaps to prospectively use the spot method of hedge effectiveness assessment. Additionally, as a result of adopting new hedge accounting guidance during 2018, we elected to exclude the interest component (the "Excluded Component") from the accounting hedge without affecting net investment hedge accounting and elected to amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component is recognized in Interest expense, net in the consolidated statement of operations. The change in fair value that is not related to the Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. Foreign Currency Exchange Contracts We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and payments, such as coffee purchases made by our Canadian Tim Hortons operations. At December 31, 2022, we had outstanding forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $197 million with maturities to February 2024. We have designated these instruments as cash flow hedges, and as such, the unrealized changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Credit Risk By entering into derivative contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty. Credit-Risk Related Contingent Features Our derivative instruments do not contain any credit-risk related contingent features. Quantitative Disclosures about Derivative Instruments and Fair Value Measurements The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our consolidated balance sheets (in millions): Gain or (Loss) Recognized in 2022 2021 2020 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 509 $ 132 $ (333) Forward-currency contracts $ 14 $ — $ (2) Derivatives designated as net investment hedges Cross-currency rate swaps $ 409 $ 96 $ (302) (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from AOCI into 2022 2021 2020 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (54) $ (125) $ (102) Forward-currency contracts Cost of sales $ 8 $ (7) $ 2 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) 2022 2021 2020 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 56 $ 45 $ 69 Fair Value as of 2022 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 280 $ — Other assets, net Foreign currency 7 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 78 23 Other assets, net Total assets at fair value $ 365 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ — $ 220 Other liabilities, net Derivatives designated as net investment hedges Foreign currency 34 355 Other liabilities, net Total liabilities at fair value $ 34 $ 575 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity Pursuant to the terms of the partnership agreement, RBI, as the holder of Class A common units, is entitled to distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Partnership exchangeable units are entitled to receive distributions from Partnership in an amount per unit equal to the dividend payable by RBI on each RBI common share. Additionally, if RBI proposes to redeem, repurchase or otherwise acquire any RBI common shares, the partnership agreement requires that Partnership, immediately prior to such redemption, repurchase or acquisition, make a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such redemption, repurchase or acquisition, as the case may be. Each holder of a Partnership exchangeable unit is entitled to vote in respect of matters on which holders of RBI common shares are entitled to vote through one special voting share of RBI. A holder of a Partnership exchangeable unit may require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units for RBI common shares at a ratio of one common share for each Partnership exchangeable unit, subject to RBI’s right as the general partner of Partnership, in its sole discretion, to deliver a cash payment in lieu of RBI common shares. If RBI elects to make a cash payment in lieu of issuing common shares, the amount of the payment will be the weighted average trading price of the RBI common shares on the New York Stock Exchange for the 20 consecutive trading days ending on the last business day prior to the exchange date. During 2022, Partnership exchanged 1,996,818 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging 1,996,818 Partnership exchangeable units for the same number of newly issued RBI common shares. During 2021, Partnership exchanged 10,119,880 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging 10,119,880 Partnership exchangeable units for the same number of newly issued RBI common shares. During 2020, Partnership exchanged 10,393,861 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by repurchasing 6,757,692 Partnership exchangeable units for approximately $380 million in cash and exchanging 3,636,169 Partnership exchangeable units for the same number of newly issued RBI common shares. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partner’s capital in our consolidated balance sheets in an amount equal to the market value of the newly issued RBI common shares and a reduction to the Partnership exchangeable units balance within partner’s capital of our consolidated balance sheets in an amount equal to the cash paid by Partnership and the market value of the newly issued RBI common shares. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit was cancelled concurrently with the exchange. RBI Share Repurchase On July 28, 2021, the RBI Board of Directors approved a share repurchase program that allows RBI to purchase up to $1,000 million of RBI common shares until August 10, 2023. During 2022, RBI repurchased and cancelled 6,101,364 common shares for $326 million. During 2021, RBI repurchased and cancelled 9,247,648 common shares for $551 million. Pursuant to the terms of the partnership agreement, Partnership made a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such share repurchases. Accumulated Other Comprehensive Income (Loss) The following table displays the change in the components of AOCI (in millions): Derivatives Pensions Foreign Accumulated Balances at December 31, 2019 $ 306 $ (29) $ (1,455) $ (1,178) Foreign currency translation adjustment — — 332 332 Net change in fair value of derivatives, net of tax (486) — — (486) Amounts reclassified to earnings of cash flow hedges, net of tax 73 — — 73 Pension and post-retirement benefit plans, net of tax — (16) — (16) Balances at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — (67) (67) Net change in fair value of derivatives, net of tax 207 — — 207 Amounts reclassified to earnings of cash flow hedges, net of tax 96 — — 96 Pension and post-retirement benefit plans, net of tax — 15 — 15 Balances at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) Foreign currency translation adjustment — — (703) (703) Net change in fair value of derivatives, net of tax 714 — — 714 Amounts reclassified to earnings of cash flow hedges, net of tax 34 — — 34 Pension and post-retirement benefit plans, net of tax — 6 — 6 Balances at December 31, 2022 $ 944 $ (24) $ (1,893) $ (973) |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Share-based compensation expense associated with the participation of Partnership and its subsidiaries in RBI’s share-based compensation plans is recognized in Partnership’s Financial Statements. RBI's Amended and Restated 2014 Omnibus Incentive Plan as amended (the “Omnibus Plan”) provides for the grant of awards to employees, directors, consultants and other persons who provide services to RBI and its affiliates. RBI also has some outstanding awards under legacy plans for BK and TH, that were assumed in connection with the merger and amalgamation of those entities within the RBI group. No new awards may be granted under these legacy BK plans or legacy TH plans. RBI is currently issuing awards under the Omnibus Plan and the number of shares available for issuance under such plan as of December 31, 2022 was 3,714,406. The Omnibus Plan permits the grant of several types of awards with respect to RBI common shares, including stock options, time-vested RSUs, and performance-based RSUs, which may include RBI and/or individual performance based-vesting conditions. Under the terms of the Omnibus Plan, RSUs are generally entitled to dividend equivalents, which are not distributed unless the related awards vest. Upon vesting, the amount of the dividend equivalent, which is distributed in additional RSUs, except in the case of RSUs awarded to non-management members of RBI's board of directors, is equal to the equivalent of the aggregate dividends declared on common shares during the period from the date of grant of the award compounded until the date the shares underlying the award are delivered. Share-based compensation expense is generally classified as general and administrative expenses in the consolidated statements of operations and consists of the following for the periods presented (in millions): 2022 2021 2020 Total share-based compensation expense - RSUs and Stock options $ 121 $ 88 $ 74 As of December 31, 2022, total unrecognized compensation cost related to share-based compensation arrangements was $312 million and is expected to be recognized over a weighted-average period of approximately 3.1 years. Restricted Stock Units The fair value of the time-vested RSUs and performance-based RSUs is based on the closing price of RBI’s common shares on the trading day preceding the date of grant. Time-vested RSUs are expensed over the vesting period. Performance-based RSUs are expensed over the vesting period, based upon the probability that the performance target will be met. RBI grants fully vested RSUs, with dividend equivalent rights that accrue in cash, to non-employee members of our board of directors in lieu of a cash retainer and committee fees. All such RSUs will settle and common shares of RBI will be issued upon termination of service by the board member. Starting in 2021, grants of time-vested RSUs generally vest 25% per year on December 31 st over four years from the grant date and performance-based RSUs generally cliff vest three years from the grant date (the starting date for the applicable vesting period is referred to as the “Anniversary Date”). Time-vested RSUs and performance-based RSUs awarded prior to 2021 generally cliff vest five years from the original grant date. During 2022, RBI granted performance-based RSUs that cliff vest three years from the original grant date based on achievement of performance metrics with a multiplier that can increase or decrease the amount vested based on the achievement of contractually defined relative total shareholder return targets with respect to the S&P 500 Index. Performance-based RSUs granted in 2021 cliff vest three years from the original grant date based solely on defined relative total shareholder return targets with respect to the S&P 500 Index. The respective fair value of these performance-based RSU awards was based on a Monte Carlo Simulation valuation model and these market condition awards are expensed over the vesting period regardless of the value that the award recipients ultimately receive. For grants of time-vested RSUs beginning in 2021, if the employee is terminated for any reason prior to any vesting date, the employee will forfeit all of the RSUs that are unvested at the time of termination. For grants of performance-based RSUs beginning in 2021, if the employee is terminated within the first two years of the Anniversary Date, 100% of the performance-based RSUs will be forfeited. If we terminate the employment of a performance-based RSU holder without cause at least two years after the grant date, or if the employee retires, the employee will become vested in 67% of the performance-based RSUs that are earned based on the performance criteria. For grants prior to 2021, if the employee is terminated for any reason within the first two years of the Anniversary Date, 100% of the time-vested RSUs granted will be forfeited. If we terminate the employment of a time-vested RSU holder without cause two years after the Anniversary Date, or if the employee retires, the employee will become vested in the number of time-vested RSUs as if the time-vested RSUs vested 20% for each anniversary after the grant date. Also, for grants prior to 2021, if the employee is terminated for any reason within the first three years of the Anniversary Date, 100% of the performance-based RSUs granted will be forfeited. If we terminate the employment of a performance-based RSU holder without cause between three An alternate ratable vesting schedule applies to the extent the participant ends employment by reason of death or disability. Chairman Awards In connection with the appointment of the RBI Executive Chairman in November 2022, RBI made one-time grants of options, RSUs and performance-based RSUs with specific terms and conditions. RBI granted 2,000,000 options with an exercise price equal to the closing price of RBI common shares on the trading day preceding the date of grant that cliff vest five years from the date of grant and expire after ten years. RBI granted 500,000 RSUs that vest ratably over five years on the anniversary of the grant date. Lastly, RBI granted 750,000 performance-based RSUs that cliff vest five and a half years from the date of grant and may be earned from 50% for threshold performance to 200% for maximum performance, based on meeting performance targets tied to the appreciation of the price of RBI common shares, with none of the award being earned if the threshold is not met. The respective fair value of these performance-based RSU awards was based on a Monte Carlo Simulation valuation model and these market condition awards are expensed over the vesting period regardless of the value that the award recipient ultimately receives. Restricted Stock Units Activity The following is a summary of time-vested RSUs and performance-based RSUs activity for the year ended December 31, 2022: Time-vested RSUs Performance-based RSUs Total Number of Weighted Average Total Number of Weighted Average Outstanding at January 1, 2022 2,764 $ 57.47 3,895 $ 62.09 Granted 1,722 $ 57.24 2,693 $ 51.31 Vested and settled (852) $ 56.00 (153) $ 58.31 Dividend equivalents granted 103 $ — 160 $ — Forfeited (184) $ 58.66 (158) $ 64.78 Outstanding at December 31, 2022 3,553 $ 57.31 6,437 $ 57.43 The weighted-average grant date fair value of time-vested RSUs granted was $60.97 and $65.20 during 2021 and 2020, respectively. The weighted-average grant date fair value of performance-based RSUs granted was $57.60 and $62.69 during 2021 and 2020, respectively. The total fair value, determined as of the date of vesting, of RSUs vested and converted to common shares of RBI during 2022, 2021 and 2020 was $58 million, $99 million and $21 million, respectively. Stock Options Stock option awards are granted with an exercise price or market value equal to the closing price of RBI's common shares on the trading day preceding the date of grant. RBI satisfies stock option exercises through the issuance of authorized but previously unissued common shares. Stock option grants generally cliff vest 5 years from the original grant date, provided the employee is continuously employed by RBI or one of our affiliates, and the stock options expire 10 years following the grant date. Additionally, if RBI terminates the employment of a stock option holder without cause prior to the vesting date, or if the employee retires or becomes disabled, the employee will become vested in the number of stock options as if the stock options vested 20% on each anniversary of the grant date. If the employee dies, the employee will become vested in the number of stock options as if the stock options vested 20% on the first anniversary of the grant date, 40% on the second anniversary of the grant date and 100% on the third anniversary of the grant date. If an employee is terminated with cause or resigns before vesting, all stock options are forfeited. If there is an event such as a return of capital or dividend that is determined to be dilutive, the exercise price of the awards will be adjusted accordingly. The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards granted in 2022 and 2020 at the grant date. There were no significant stock option awards granted in 2021. 2022 2020 Risk-free interest rate 3.92% 1.29% Expected term (in years) 7.50 5.88 Expected volatility 30.0% 23.9% Expected dividend yield 3.24% 3.14% The risk-free interest rate was based on the U.S. Treasury or Canadian Sovereign bond yield with a remaining term equal to the expected option life assumed at the date of grant. The expected term was calculated based on the analysis of a five-year vesting period coupled with RBI's expectations of exercise activity. Expected volatility was based on the historical and implied equity volatility of RBI. The expected dividend yield is based on the annual dividend yield at the time of grant. Stock Options Activity The following is a summary of stock option activity under our plans for the year ended December 31, 2022: Total Number of Weighted Aggregate Weighted Outstanding at January 1, 2022 6,207 $ 54.80 Granted 2,018 $ 66.62 Exercised (484) $ 43.42 Forfeited (247) $ 64.83 Outstanding at December 31, 2022 7,494 $ 58.00 $ 55,682 6.1 Exercisable at December 31, 2022 2,724 $ 46.72 $ 48,953 3.0 Vested or expected to vest at December 31, 2022 7,125 $ 57.75 $ 54,835 6.0 (a) The intrinsic value represents the amount by which the fair value of RBI's stock exceeds the option exercise price at December 31, 2022. The weighted-average grant date fair value per stock option granted was $17.52, $10.15, and $10.38 during 2022, 2021 and 2020, respectively. The total intrinsic value of stock options exercised was $10 million during 2022, $46 million during 2021, and $55 million during 2020. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Liabilities Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized franchise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2021 and December 31, 2022 (in millions): Contract Liabilities Balance at December 31, 2021 $ 531 Effect of business combination 8 Recognized during period and included in the contract liability balance at the beginning of the year (57) Increase, excluding amounts recognized as revenue during the period 71 Impact of foreign currency translation (13) Balance at December 31, 2022 $ 540 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of December 31, 2022 (in millions): Contract liabilities expected to be recognized in 2023 $ 52 2024 50 2025 47 2026 44 2027 42 Thereafter 305 Total $ 540 Disaggregation of Total Revenues The following tables disaggregate revenue by segment (in millions): 2022 TH BK PLK FHS Total Sales $ 2,631 $ 70 $ 78 $ 40 $ 2,819 Royalties 320 1,064 287 66 1,737 Property revenues 577 224 12 — 813 Franchise fees and other revenue 28 54 10 19 111 Advertising revenues and other services 267 485 260 13 1,025 Total revenues $ 3,823 $ 1,897 $ 647 $ 138 $ 6,505 2021 TH BK PLK FHS Total Sales $ 2,249 $ 64 $ 64 $ 1 $ 2,378 Royalties 287 1,008 264 2 1,561 Property revenues 556 224 13 — 793 Franchise fees and other revenue 21 60 6 2 89 Advertising revenues and other services 229 457 232 — 918 Total revenues $ 3,342 $ 1,813 $ 579 $ 5 $ 5,739 2020 TH BK PLK FHS Total Sales $ 1,876 $ 64 $ 73 $ — $ 2,013 Royalties 240 842 245 — 1,327 Property revenues 486 219 13 — 718 Franchise fees and other revenue 19 52 5 — 76 Advertising revenues and other services 189 425 220 — 834 Total revenues $ 2,810 $ 1,602 $ 556 $ — $ 4,968 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Other Operating Expenses (Income), net Other operating expenses (income), net, consist of the following (in millions): 2022 2021 2020 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ 4 $ 2 $ 6 Litigation settlements and reserves, net 11 81 7 Net losses (gains) on foreign exchange (4) (76) 100 Other, net 14 — (8) Other operating expenses (income), net $ 25 $ 7 $ 105 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods. Litigation settlements and reserves, net primarily reflects accruals and payments made and proceeds received in connection with litigation and arbitration matters and other business disputes. In early 2022, we entered into negotiations to resolve business disputes that arose during 2021 with counterparties to the master franchise agreements for Burger King and Popeyes in China. Based on these discussions, we paid approximately $100 million in 2022, of which $5 million and $72 million was recorded as Litigation settlements and reserves, net in 2022 and 2021, respectively. The majority of this amount related to Popeyes, resolved our disputes, and allowed us to move forward in the market with a new master franchisee. Additionally, pursuant to this agreement we and our partners have made equity contributions to the Burger King business in China. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of December 31, 2022, we had $11 million in irrevocable standby letters of credit outstanding, which were issued primarily to certain insurance carriers to guarantee payments of deductibles for various insurance programs, such as health and commercial liability insurance. Of these letters of credit outstanding, $2 million are secured by the collateral under our Revolving Credit Facility and the remainder are secured by cash collateral. As of December 31, 2022, no amounts had been drawn on any of these irrevocable standby letters of credit. Purchase Commitments We have arrangements for information technology and telecommunication services with an aggregate contractual obligation of $23 million over the next two years, some of which have early termination fees. We also enter into commitments to purchase advertising. As of December 31, 2022, these commitments totaled $212 million and run through 2025. Litigation From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property. On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King Company, successor in interest, (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of all others similarly situated. On October 18, 2018, a second class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On November 2, 2018, a fourth class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Sandra Munster, individually and on behalf of all others similarly situated. These complaints have been consolidated and allege that the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages for himself or herself and other members of the class. On March 24, 2020, the Court granted BKC’s motion to dismiss for failure to state a claim and on April 20, 2020 the plaintiffs filed a motion for leave to amend their complaint. On April 27, 2020, BKC filed a motion opposing the motion for leave to amend. The court denied the plaintiffs motion for leave to amend their complaint in August 2020 and the plaintiffs appealed this ruling. In August 2022, the federal appellate court reversed the lower court's decision to dismiss the case and remanded the case to the lower court for further proceedings. While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. On June 30, 2020, a class action complaint was filed against RBI, Partnership and The TDL Group Corp. in the Quebec Superior Court by Steve Holcman, individually and on behalf of all Quebec residents who downloaded the Tim Hortons mobile application. On July 2, 2020, a Notice of Action related to a second class action complaint was filed against RBI, in the Ontario Superior Court by Ashley Sitko and Ashley Cadeau, individually and on behalf of all Canadian residents who downloaded the Tim Hortons mobile application. On August 31, 2020, a notice of claim was filed against RBI in the Supreme Court of British Columbia by Wai Lam Jacky Law on behalf of all persons in Canada who downloaded the Tim Hortons mobile application or the Burger King mobile application. On September 30, 2020, a notice of action was filed against RBI, Partnership, The TDL Group Corp., BKW and Popeyes Louisiana Kitchen, Inc. in the Ontario Superior Court of Justice by William Jung on behalf of a to be determined class. All of the complaints alleged that the defendants violated the plaintiff’s privacy rights, the Personal Information Protection and Electronic Documents Act, consumer protection and competition laws or app-based undertakings to users, in each case in connection with the collection of geolocation data through the Tim Hortons mobile application, and in certain cases, the Burger King and Popeyes mobile applications. Each plaintiff sought injunctive relief and monetary damages for himself or herself and other members of the class. The parties have reached a national settlement of all cases, which has been approved by the applicable courts, pursuant to which The TDL Group Corp. is providing each member of the class a voucher for one hot beverage and one baked good and will pay plaintiffs legal fees, in an amount which we believe is immaterial. On October 26, 2020, City of Warwick Municipal Employees Pension Fund, a purported stockholder of RBI, individually and putatively on behalf of all other stockholders similarly situated, filed a lawsuit in the Supreme Court of the State of New York County of New York naming RBI and certain of our officers, directors and shareholders as defendants alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, in connection with certain offerings of securities by an affiliate in August and September 2019. The complaint alleges that the shelf registration statement used in connection with such offering contained certain false and/or misleading statements or omissions. The complaint seeks, among other relief, class certification of the lawsuit, unspecified compensatory damages, rescission, pre-judgement and post-judgement interest, costs and expenses. On December 18, 2020 the plaintiffs filed an amended complaint and on February 16, 2021 RBI filed a motion to dismiss the complaint. The plaintiffs filed a brief in opposition to the motion on April 19, 2021 and RBI filed a reply in May 2021. The motion to dismiss was heard in April 2022 and the motion to dismiss was denied in May 2022. On June 6, 2022, we filed an answer to the complaint and on July 8, 2022, we filed an appeal of the denial of the motion to dismiss. On November 10, 2022, the appellate division reversed the trial court and ordered that the complaint be dismissed. Plaintiffs have moved for leave to appeal to the Court of Appeals of the State of New York and we filed an opposition to their motion. The parties are awaiting a decision as to whether the Court of Appeals will accept the appeal. We intend to vigorously defend. While we believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. |
Segment Reporting and Geographi
Segment Reporting and Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographical Information | Segment Reporting and Geographical Information As stated in Note 1, Description of Business and Organization , we manage four brands. Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, we operate in the chicken category of the quick service segment of the restaurant industry. Under the Firehouse Subs brand, we operate in the specialty subs category of the quick service segment of the restaurant industry. Our business generates revenue from the following sources: (i) sales, consisting primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and sales at restaurants owned by us (“Company restaurants”); (ii) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (iii) property revenues from properties we lease or sublease to franchisees; and (iv) advertising revenues and other services, consisting primarily of advertising fund contributions based on a percentage of sales reported by franchise restaurants. We manage each of our brands as an operating segment and each operating segment represents a reportable segment. Our management structure and financial reporting is organized around our four brands, including the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker. Therefore, we have four operating segments: (1) TH, which includes all operations of our Tim Hortons brand, (2) BK, which includes all operations of our Burger King brand, (3) PLK, which includes all operations of our Popeyes brand, and (4) FHS, which includes all operations of our Firehouse Subs brand. Our four operating segments represent our reportable segments. FHS revenues and segment income for the period from the acquisition date of December 15, 2021 through December 26, 2021 (the fiscal year end for FHS) are included in our consolidated statement of operations for 2021. The following tables present revenues, by segment and by country, depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions): 2022 2021 2020 Revenues by operating segment: TH $ 3,823 $ 3,342 $ 2,810 BK 1,897 1,813 1,602 PLK 647 579 556 FHS 138 5 — Total $ 6,505 $ 5,739 $ 4,968 Revenues by country (a): Canada $ 3,458 $ 3,035 $ 2,546 United States 2,273 2,005 1,889 Other 774 699 533 Total $ 6,505 $ 5,739 $ 4,968 Depreciation and amortization: TH $ 114 $ 132 $ 119 BK 66 62 62 PLK 8 7 8 FHS 2 — — Total $ 190 $ 201 $ 189 (Income) loss from equity method investments: TH $ (8) $ (13) $ (4) BK 51 17 43 PLK 1 — — Total $ 44 $ 4 $ 39 Capital expenditures: TH $ 30 $ 61 $ 92 BK 63 34 18 PLK 6 11 7 FHS 1 — — Total $ 100 $ 106 $ 117 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. Total assets by segment, and long-lived assets by segment and country are as follows (in millions): Assets Long-Lived Assets As of December 31, As of December 31, 2022 2021 2022 2021 By operating segment: TH $ 13,279 $ 13,995 $ 1,819 $ 1,963 BK 5,007 4,946 1,140 1,137 PLK 2,572 2,563 143 141 FHS 1,098 1,103 12 4 Unallocated 790 639 — — Total $ 22,746 $ 23,246 $ 3,114 $ 3,245 By country: Canada $ 1,531 $ 1,670 United States 1,558 1,556 Other 25 19 Total $ 3,114 $ 3,245 Long-lived assets include property and equipment, net, finance and operating lease right of use assets, net and net investment in property leased to franchisees. Only Canada and the United States represented 10% or more of our total long-lived assets as of December 31, 2022 and December 31, 2021. Our measure of segment income is Adjusted EBITDA. Adjusted EBITDA represents earnings (net income or loss) before interest expense, net, loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization, adjusted to exclude (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) income/expenses from non-recurring projects and non-operating activities. For the periods referenced, income/expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expense incurred in connection with the Firehouse Acquisition consisting of professional fees, compensation-related expenses and integration costs (“FHS Transaction costs”); and (ii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements, including services related to significant tax reform legislation, regulations and related restructuring initiatives (“Corporate restructuring and tax advisory fees”). Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of segment income to net income consists of the following (in millions): 2022 2021 2020 Segment income: TH $ 1,073 $ 997 $ 823 BK 1,007 1,021 823 PLK 242 228 218 FHS 56 2 — Adjusted EBITDA 2,378 2,248 1,864 Share-based compensation and non-cash incentive compensation expense 136 102 84 FHS Transaction costs 24 18 — Corporate restructuring and tax advisory fees 46 16 16 Impact of equity method investments (a) 59 25 48 Other operating expenses (income), net 25 7 105 EBITDA 2,088 2,080 1,611 Depreciation and amortization 190 201 189 Income from operations 1,898 1,879 1,422 Interest expense, net 533 505 508 Loss on early extinguishment of debt — 11 98 Income tax (benefit) expense (117) 110 66 Net income $ 1,482 $ 1,253 $ 750 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into an amended credit agreement, as amended from time to time, that provides for obligations under the Credit Facilities. The Issuers entered into the 3.875% First Lien Senior Notes Indenture with respect to the 3.875% First Lien Senior Notes due 2028. The Issuers entered into the 5.75% First Lien Senior Notes Indenture with respect to the 5.75% First Lien Senior Notes due 2025. The Issuers entered into the 3.50% First Lien Senior Notes Indenture with respect to the 3.50% First Lien Senior Notes due 2029. The Issuers entered into the 4.375% Second Lien Senior Notes Indenture with respect to the 4.375% Second Lien Senior Notes due 2028. The Issuers entered into the 4.00% Second Lien Senior Notes Indenture with respect to the 4.00% Second Lien Senior Notes Due 2030. The agreement governing our Credit Facilities, the 3.875% First Lien Senior Notes Indenture, the 5.75% First Lien Senior Notes Indenture, the 3.50% First Lien Senior Notes Indenture, the 4.375% Second Lien Senior Notes Indenture and the 4.00% Second Lien Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis. The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2022 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,178 $ — $ — $ 1,178 Accounts and notes receivable, net 614 — — 614 Inventories, net 133 — — 133 Prepaids and other current assets 123 — — 123 Total current assets 2,048 — — 2,048 Property and equipment, net 1,950 — — 1,950 Operating lease assets, net 1,082 — — 1,082 Intangible assets, net 10,991 — — 10,991 Goodwill 5,688 — — 5,688 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 243 (243) — Investment in subsidiaries — 4,268 (4,268) — Other assets, net 905 — — 905 Total assets $ 22,746 $ 4,511 $ (4,511) $ 22,746 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 758 $ — $ — $ 758 Other accrued liabilities 758 243 — 1,001 Gift card liability 230 — — 230 Current portion of long term debt and finance leases 127 — — 127 Total current liabilities 1,873 243 — 2,116 Term debt, net of current portion 12,839 — — 12,839 Finance leases, net of current portion 311 — — 311 Operating lease liabilities, net of current portion 1,027 — — 1,027 Other liabilities, net 872 — — 872 Payables to affiliates 243 — (243) — Deferred income taxes, net 1,313 — — 1,313 Total liabilities 18,478 243 (243) 18,478 Partners’ capital: Class A common units — 8,735 — 8,735 Partnership exchangeable units — (3,496) — (3,496) Common shares 2,494 — (2,494) — Retained earnings 2,745 — (2,745) — Accumulated other comprehensive income (loss) (973) (973) 973 (973) Total Partners’ capital/shareholders’ equity 4,266 4,266 (4,266) 4,266 Noncontrolling interests 2 2 (2) 2 Total equity 4,268 4,268 (4,268) 4,268 Total liabilities and equity $ 22,746 $ 4,511 $ (4,511) $ 22,746 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2021 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets, net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners’ capital/shareholders’ equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2022 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,819 $ — $ — $ 2,819 Franchise and property revenues 2,661 — — 2,661 Advertising revenues and other services 1,025 — — 1,025 Total revenues 6,505 — — 6,505 Operating costs and expenses: Cost of sales 2,312 — — 2,312 Franchise and property expenses 518 — — 518 Advertising expenses and other services 1,077 — — 1,077 General and administrative expenses 631 — — 631 (Income) loss from equity method investments 44 — — 44 Other operating expenses (income), net 25 — — 25 Total operating costs and expenses 4,607 — — 4,607 Income from operations 1,898 — — 1,898 Interest expense, net 533 — — 533 Income before income taxes 1,365 — — 1,365 Income tax (benefit) expense (117) — — (117) Net income 1,482 — — 1,482 Equity in earnings of consolidated subsidiaries — 1,482 (1,482) — Net income (loss) 1,482 1,482 (1,482) 1,482 Net income (loss) attributable to noncontrolling interests 3 3 (3) 3 Net income (loss) attributable to common unitholders $ 1,479 $ 1,479 $ (1,479) $ 1,479 Total comprehensive income (loss) $ 1,533 $ 1,533 $ (1,533) $ 1,533 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,378 $ — $ — $ 2,378 Franchise and property revenues 2,443 — — 2,443 Advertising revenues and other services 918 — — 918 Total revenues 5,739 — — 5,739 Operating costs and expenses: Cost of sales 1,890 — — 1,890 Franchise and property expenses 489 — — 489 Advertising expenses and other services 986 — — 986 General and administrative expenses 484 — — 484 (Income) loss from equity method investments 4 — — 4 Other operating expenses (income), net 7 — — 7 Total operating costs and expenses 3,860 — — 3,860 Income from operations 1,879 — — 1,879 Interest expense, net 505 — — 505 Loss on early extinguishment of debt 11 — — 11 Income before income taxes 1,363 — — 1,363 Income tax expense 110 — — 110 Net income 1,253 — — 1,253 Equity in earnings of consolidated subsidiaries — 1,253 (1,253) — Net income (loss) 1,253 1,253 (1,253) 1,253 Net income (loss) attributable to noncontrolling interests 4 4 (4) 4 Net income (loss) attributable to common unitholders $ 1,249 $ 1,249 $ (1,249) $ 1,249 Total comprehensive income (loss) $ 1,504 $ 1,504 $ (1,504) $ 1,504 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,013 $ — $ — $ 2,013 Franchise and property revenues 2,121 — — 2,121 Advertising revenues and other services 834 — — 834 Total revenues 4,968 — — 4,968 Operating costs and expenses: Cost of sales 1,610 — — 1,610 Franchise and property expenses 515 — — 515 Advertising expenses and other services 870 — — 870 General and administrative expenses 407 — — 407 (Income) loss from equity method investments 39 — — 39 Other operating expenses (income), net 105 — — 105 Total operating costs and expenses 3,546 — — 3,546 Income from operations 1,422 — — 1,422 Interest expense, net 508 — — 508 Loss on early extinguishment of debt 98 — — 98 Income before income taxes 816 — — 816 Income tax expense 66 — — 66 Net income 750 — — 750 Equity in earnings of consolidated subsidiaries — 750 (750) — Net income (loss) 750 750 (750) 750 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 748 $ 748 $ (748) $ 748 Total comprehensive income (loss) $ 653 $ 653 $ (653) $ 653 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2022 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,482 $ 1,482 $ (1,482) $ 1,482 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,482) 1,482 — Depreciation and amortization 190 — — 190 Amortization of deferred financing costs and debt issuance discount 28 — — 28 (Income) loss from equity method investments 44 — — 44 Loss (gain) on remeasurement of foreign denominated transactions (4) — — (4) Net (gains) losses on derivatives (9) — — (9) Share-based compensation and non-cash incentive compensation expense 136 — — 136 Deferred income taxes (60) — — (60) Other 19 — — 19 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (110) — — (110) Inventories and prepaids and other current assets (61) — — (61) Accounts and drafts payable 169 — — 169 Other accrued liabilities and gift card liability 37 — — 37 Tenant inducements paid to franchisees (26) — — (26) Other long-term assets and liabilities (345) — — (345) Net cash provided by operating activities 1,490 — — 1,490 Cash flows from investing activities: Payments for property and equipment (100) — — (100) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Net payments in connection with purchase of Firehouse Subs (12) — — (12) Settlement/sale of derivatives, net 71 — — 71 Other investing activities, net (35) — — (35) Net cash used for investing activities (64) — — (64) Cash flows from financing activities: Proceeds from long-term debt 2 — — 2 Repayments of long-term debt and finance leases (94) — — (94) Distributions on Class A and Partnership exchangeable units — (971) — (971) Distributions to RBI for repurchase of RBI common shares — (326) — (326) Capital contribution from RBI 51 — — 51 Distributions from subsidiaries (1,297) 1,297 — — (Payments) proceeds from derivatives 34 — — 34 Other financing activities, net (3) — — (3) Net cash used for financing activities (1,307) — — (1,307) Effect of exchange rates on cash and cash equivalents (28) — — (28) Increase (decrease) in cash and cash equivalents 91 — — 91 Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 1,178 $ — $ — $ 1,178 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,253 $ 1,253 $ (1,253) $ 1,253 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,253) 1,253 — Depreciation and amortization 201 — — 201 Premiums paid and non-cash loss on early extinguishment of debt 11 — — 11 Amortization of deferred financing costs and debt issuance discount 27 — — 27 (Income) loss from equity method investments 4 — — 4 Loss (gain) on remeasurement of foreign denominated transactions (76) — — (76) Net (gains) losses on derivatives 87 — — 87 Share-based compensation and non-cash incentive compensation expense 102 — — 102 Deferred income taxes (5) — — (5) Other (16) — — (16) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 8 — — 8 Inventories and prepaids and other current assets 12 — — 12 Accounts and drafts payable 149 — — 149 Other accrued liabilities and gift card liability 67 — — 67 Tenant inducements paid to franchisees (20) — — (20) Other long-term assets and liabilities (78) — — (78) Net cash provided by operating activities 1,726 — — 1,726 Cash flows from investing activities: Payments for property and equipment (106) — — (106) Net proceeds from disposal of assets, restaurant closures and refranchisings 16 — — 16 Net payment for purchase of Firehouse Subs, net of cash acquired (1,004) — — (1,004) Settlement/sale of derivatives, net 5 — — 5 Other investing activities, net (14) — — (14) Net cash used for investing activities (1,103) — — (1,103) Cash flows from financing activities: Proceeds from long-term debt 1,335 — — 1,335 Repayments of long-term debt and finance leases (889) — — (889) Payment of financing costs (19) — — (19) Distributions on Class A and Partnership exchangeable units — (974) — (974) Repurchase of Partnership exchangeable units — — — — Distributions to RBI for repurchase of RBI common shares — (551) — (551) Capital contribution from RBI 60 — — 60 Distributions from subsidiaries (1,525) 1,525 — — (Payments) proceeds from derivatives (51) — — (51) Other financing activities, net (4) — — (4) Net cash used for financing activities (1,093) — — (1,093) Effect of exchange rates on cash and cash equivalents (3) — — (3) Increase (decrease) in cash and cash equivalents (473) — — (473) Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,087 $ — $ — $ 1,087 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 750 $ 750 $ (750) $ 750 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (750) 750 — Depreciation and amortization 189 — — 189 Premiums paid and non-cash loss on early extinguishment of debt 97 — — 97 Amortization of deferred financing costs and debt issuance discount 26 — — 26 (Income) loss from equity method investments 39 — — 39 Loss (gain) on remeasurement of foreign denominated transactions 100 — — 100 Net (gains) losses on derivatives 32 — — 32 Share-based compensation and non-cash incentive compensation expense 84 — — 84 Deferred income taxes (208) — — (208) Other 28 — — 28 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (30) — — (30) Inventories and prepaids and other current assets (10) — — (10) Accounts and drafts payable (183) — — (183) Other accrued liabilities and gift card liability 6 — — 6 Tenant inducements paid to franchisees (22) — — (22) Other long-term assets and liabilities 23 — — 23 Net cash provided by operating activities 921 — — 921 Cash flows from investing activities: Payments for property and equipment (117) — — (117) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Settlement/sale of derivatives, net 33 — — 33 Other investing activities, net (7) — — (7) Net cash used for investing activities (79) — — (79) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 5,235 — — 5,235 Repayments of revolving line of credit, long-term debt and finance leases (4,708) — — (4,708) Payment of financing costs (43) — — (43) Distributions on Class A and Partnership exchangeable units — (959) — (959) Repurchase of Partnership exchangeable units — (380) — (380) Capital contribution from RBI 82 — — 82 Distributions from subsidiaries (1,339) 1,339 — — (Payments) proceeds from derivatives (46) — — (46) Other financing activities, net (2) — — (2) Net cash used for financing activities (821) — — (821) Effect of exchange rates on cash and cash equivalents 6 — — 6 Increase (decrease) in cash and cash equivalents 27 — — 27 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,560 $ — $ — $ 1,560 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions/Dividends On January 4, 2023, RBI paid a cash dividend of $0.54 per RBI common share to common shareholders of record on December 21, 2022. Partnership made a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares and also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.54 per exchangeable unit to holders of record on December 21, 2022. On February 14, 2023, we announced that the RBI board of directors had declared a cash dividend of $0.55 per RBI common share for the first quarter of 2023. The dividend will be paid on April 5, 2023 to RBI common shareholders of record on March 22, 2023. Partnership will make a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares. Partnership will also make a distribution in respect of each Partnership exchangeable unit in the amount of $0.55 per Partnership exchangeable unit, and the record date and payment date for such distribution will be the same as the record date and payment date for the cash dividend per RBI common share set forth above. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal YearWe operate on a monthly calendar, with a fiscal year that ends on December 31. |
Basis of Presentation | Basis of Presentation The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements (the "Financial Statements") include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consolidate marketing funds we control. All material intercompany balances and transactions have been eliminated in consolidation. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, investment balances, outstanding loan guarantees and future lease payments, where applicable. As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant, but Tim Hortons owns the restaurant’s assets. In these arrangements, Tim Hortons has the ability to determine which operators manage the restaurants and for what duration. We perform an analysis to determine if the legal entity in which operations are conducted is a VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). As of December 31, 2022 and 2021, we determined that we are the primary beneficiary of 41 and 46 Restaurant VIEs, respectively, and accordingly, have consolidated the results of operations, assets and liabilities, and cash flows of these Restaurant VIEs in our Financial Statements. Assets and liabilities related to consolidated VIEs are not significant to our total consolidated assets and liabilities. Liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our general assets. |
Reclassifications | ReclassificationsCertain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been reclassified in order to be comparable with the current year classifications. These consist of the 2021 reclassification of $9 million of technology fee revenues from Franchise and property revenues to Advertising revenues and other services and $24 million of technology expenses from General and administrative expenses to Advertising expenses and other services. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. |
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses Our functional currency is the U.S. dollar, since our term loans and senior secured notes are denominated in U.S. dollars. The functional currency of each of our operating subsidiaries is generally the currency of the economic environment in which the subsidiary primarily does business. Our foreign subsidiaries’ financial statements are translated into U.S. dollars using the foreign exchange rates applicable to the dates of the financial statements. Assets and liabilities are translated using the end-of-period spot foreign exchange rates. Income, expenses and cash flows are translated at the average foreign exchange rates for each period. Equity accounts are translated at historical foreign exchange rates. The effects of these translation adjustments are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in the consolidated statements of equity. For any transaction that is denominated in a currency different from the entity’s functional currency, we record a gain or loss based on the difference between the foreign exchange rate at the transaction date and the foreign exchange rate at the transaction settlement date (or rate at period end, if unsettled) which is included within other operating expenses (income), net in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with original maturities of three months or less and credit card receivables are considered cash equivalents. |
Accounts and Notes Receivable, net | Accounts and Notes Receivable, net Our credit loss exposure is mainly concentrated in our accounts and notes receivable portfolio, which consists primarily of amounts due from franchisees, including royalties, rents, franchise fees, contributions due to advertising funds we manage and, in the case of our TH segment, amounts due for supply chain sales. Accounts and notes receivable are reported net of an allowance for expected credit losses over the estimated life of the receivable. Credit losses are estimated based on aging, historical collection experience, financial position of the franchisee and other factors, including those related to current economic conditions and reasonable and supportable forecasts of future conditions. Bad debt expense recognized for expected credit losses is classified in our consolidated statement of operations as Cost of sales, Franchise and property expenses or Advertising expenses and other services, based on the nature of the underlying receivable. Net bad debt expense (recoveries) totaled $19 million in 2022, $(9) million in 2021 and $33 million in 2020. |
Inventories | Inventories Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials such as green coffee beans and finished goods such as new equipment, parts, paper supplies and restaurant food items. The moving average method is used to determine the cost of raw materials and finished goods inventories held for sale to Tim Hortons franchisees. |
Property and Equipment, net | Property and Equipment, net We record property and equipment at historical cost less accumulated depreciation and amortization, which is recognized using the straight-line method over the following estimated useful lives: (i) buildings and improvements – up to 40 years; (ii) restaurant equipment – up to 17 years; (iii) furniture, fixtures and other – up to 10 years; and (iv) manufacturing equipment – up to 25 years. Leasehold improvements to properties where we are the lessee are amortized over the lesser of the remaining term of the lease or the estimated useful life of the improvement. Major improvements are capitalized, while maintenance and repairs are expensed when incurred. Capitalized Software and Cloud Computing Costs We record capitalized software at historical cost less accumulated amortization, which is recognized using the straight-line method. Amortization expense is based on the estimated useful life of the software, which is primarily up to five years, once the asset is available for its intended use. |
Leases | Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. |
Leases | Leases In all leases, whether we are the lessor or lessee, we define lease term as the noncancellable term of the lease plus any renewals covered by renewal options that are reasonably certain of exercise based on our assessment of the economic factors relevant to the lessee. The noncancellable term of the lease commences on the date the lessor makes the underlying property in the lease available to the lessee, irrespective of when lease payments begin under the contract. Lessor Accounting We recognize lease payments for operating leases as property revenue on a straight-line basis over the lease term, and property revenue is presented net of any related sales tax. Lease incentive payments we make to lessees are amortized as a reduction in property revenue over the lease term. We account for reimbursements of maintenance and property tax costs paid to us by lessees as property revenue. We also have net investments in properties leased to franchisees, which meet the criteria of sales-type leases or met the criteria of direct financing leases under the previous accounting guidance. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-type leases is recognized at lease commencement and recorded in other operating expenses (income), net. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. We recognize variable lease payment income in the period when changes in facts and circumstances on which the variable lease payments are based occur. Lessee Accounting In leases where we are the lessee, we recognize a right-of-use (“ROU”) asset and lease liability at lease commencement, which are measured by discounting lease payments using our incremental borrowing rate as the discount rate. We determine the incremental borrowing rate applicable to each lease by reference to our outstanding secured borrowings and implied spreads over the risk-free discount rates that correspond to the term of each lease, as adjusted for the currency of the lease. Subsequent amortization of the ROU asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. Reductions of the ROU asset and the change in the lease liability are included in changes in Other long-term assets and liabilities in the Consolidated Statement of Cash Flows. A finance lease ROU asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. Operating lease and finance lease ROU assets are assessed for impairment in accordance with our long-lived asset impairment policy. We reassess lease classification and remeasure ROU assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate contract or upon certain other events that require reassessment. Maintenance and property tax expenses are accounted for on an accrual basis as variable lease cost. We recognize variable lease cost in the period when changes in facts and circumstances on which the variable lease payments are based occur. |
Goodwill and Intangible Assets Not Subject to Amortization | Goodwill and Intangible Assets Not Subject to Amortization Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in connection with the acquisition of Firehouse Subs in 2021, the acquisition of Popeyes in 2017, the acquisition of Tim Hortons in 2014 and the acquisition of Burger King Holdings, Inc. by 3G Capital Partners Ltd. in 2010. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, the Popeyes brand and the Firehouse Subs brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of October 1 of each year and more often if an event occurs or circumstances change which indicate impairment might exist. Our annual impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit or Brand in any period. We can resume the qualitative assessment for any reporting unit or Brand in any subsequent period. Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a quantitative goodwill impairment test that requires us to estimate the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying amount, we will measure any goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-likely-than-not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for a Brand, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand exceeds its fair value, we estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount exceeds fair value, an impairment loss is recognized in an amount equal to that excess. We completed our impairment tests for goodwill and the Brands as of October 1, 2022, 2021 and 2020 and no impairment resulted. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property and equipment, intangible assets subject to amortization and lease right-of-use assets, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, bankruptcy proceedings or other significant financial distress of a lessee; significant negative industry or economic trends; knowledge of transactions involving the sale of similar property at amounts below the carrying value; or our expectation to dispose of long-lived assets before the end of their estimated useful lives. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from use and eventual disposition of the assets or asset group. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows, we record an impairment charge equal to the excess, if any, of the net carrying value over fair value. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) (“OCI”) refers to revenues, expenses, gains and losses that are included in comprehensive income (loss), but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to equity, net of tax. Our other comprehensive income (loss) is primarily comprised of unrealized gains and losses on foreign currency translation adjustments and unrealized gains and losses on hedging activity, net of tax. |
Derivative Financial Instruments | Derivative Financial Instruments We recognize and measure all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets. Derivative instruments accounted for as net investments hedges are classified as long term assets and liabilities in the consolidated balance sheets. We may enter into derivatives that are not designated as hedging instruments for accounting purposes, but which largely offset the economic impact of certain transactions. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings, depending on the purpose of the derivatives and whether they qualify for, and we have applied, hedge accounting treatment. When applying hedge accounting, we designate at a derivative’s inception, the specific assets, liabilities or future commitments being hedged, and assess the hedge’s effectiveness at inception and on an ongoing basis. We discontinue hedge accounting when: (i) we determine that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or (iv) management determines that designation of the derivatives as a hedge instrument is no longer appropriate. We do not enter into or hold derivatives for speculative purposes. |
Disclosures about Fair Value | Disclosures about Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). The fair value is based on assumptions that market participants would use when pricing the asset or liability. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation, as follows: Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. |
Revenue Recognition and Cost of Sales | Revenue Recognition Sales Sales consist primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and are presented net of any related sales tax. Orders placed by customers specify the goods to be delivered and transaction prices for supply chain sales. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Shipping and handling costs associated with outbound freight for supply chain sales are accounted for as fulfillment costs and classified as cost of sales. To a much lesser extent, sales also include Company restaurant sales (including Restaurant VIEs), which consist of sales to restaurant guests. Revenue from Company restaurant sales is recognized at the point of sale. Taxes assessed by a governmental authority that we collect are excluded from revenue. Franchise and property revenues Franchise revenues consist primarily of royalties, initial and renewal franchise fees and upfront fees from development agreements and master franchise and development agreements (“MFDAs”). Under franchise agreements, we provide franchisees with (i) a franchise license, which includes a license to use our intellectual property, (ii) pre-opening services, such as training and inspections, and (iii) ongoing services, such as development of training materials and menu items and restaurant monitoring and inspections. These services are highly interrelated and dependent upon the franchise license and we concluded these services do not represent individually distinct performance obligations. Consequently, we bundle the franchise license performance obligation and promises to provide these services into a single performance obligation (the “Franchise PO”), which we satisfy by providing a right to use our intellectual property over the term of each franchise agreement. Royalties are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Initial and renewal franchise fees are payable by the franchisee upon a new restaurant opening or renewal of an existing franchise agreement. Our franchise agreement royalties represent sales-based royalties that are related entirely to the Franchise PO and are recognized as franchise sales occur. Initial and renewal franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Our performance obligation under development agreements other than MFDAs generally consists of an obligation to grant exclusive development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee. We have a distinct performance obligation under our MFDAs to grant subfranchising rights over a stated term. Under the terms of MFDAs, we typically either receive an upfront fee paid in cash and/or receive noncash consideration in the form of an equity interest in the master franchisee or an affiliate of the master franchisee. We account for noncash consideration as investments in the applicable equity method investee and recognize revenue in an amount equal to the fair value of the equity interest received. Upfront fees from master franchisees, including the fair value of noncash consideration, are deferred and amortized over the MFDA term on a straight-line basis. We may recognize unamortized upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. Advertising revenues and other services Advertising revenues consist primarily of franchisee contributions to advertising funds in those markets where our subsidiaries manage an advertising fund and are calculated as a percentage of franchise restaurant sales over the term of the franchise agreement. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing, and related activities. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the Franchise PO. Other services revenues consist primarily of fees from digital sales that partially offset expenses related to technology initiatives. These services are distinct from the Franchise PO because they are not dependent upon the franchise license or highly interrelated with the franchise license. Cost of Sales Cost of sales consists primarily of costs associated with the management of our TH supply chain, including cost of goods, direct labor, depreciation and bad debt expense (recoveries) from supply chain sales. Cost of sales also includes food, paper and labor costs of Company restaurants. |
Property revenues | Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted for in accordance with applicable accounting guidance for leases and are excluded from the scope of revenue recognition guidance.In certain instances, we provide incentives to franchisees in connection with restaurant renovations or other initiatives. These incentives may consist of cash consideration or non-cash consideration such as restaurant equipment. In general, these incentives are designed to support system-wide sales growth to increase our future revenues. The costs of these incentives are capitalized and amortized as a reduction in franchise and property revenue over the term of the contract to which the incentive relates. |
Advertising Expenses and Other Services | Company restaurants and franchise restaurants contribute to advertising funds that our subsidiaries manage in the United States and Canada and certain other international markets. The advertising funds expense the production costs of advertising when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred. Under our franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development, marketing and related activities. The advertising contributions by Company restaurants (including Restaurant VIEs) are eliminated in consolidation. Consolidated advertising expense totaled $1,032 million, $962 million and $870 million in 2022, 2021 and 2020, respectively. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are amortized over the term of the related debt agreement into interest expense using the effective interest method. |
Income Taxes | Income Taxes Amounts in the Financial Statements related to income taxes are calculated using the principles of ASC Topic 740, Income Taxes . Under these principles, deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as well as tax credit carry-forwards and loss carry-forwards. These deferred taxes are measured by applying currently enacted tax rates. A deferred tax asset is recognized when it is considered more-likely-than-not to be realized. The effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the year in which the law is enacted. A valuation allowance reduces deferred tax assets when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. We recognize positions taken or expected to be taken in a tax return in the Financial Statements when it is more-likely-than-not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement. Translation gains and losses resulting from the remeasurement of foreign deferred tax assets or liabilities denominated in a currency other than the functional currency are classified as other operating expenses (income), net in the consolidated statements of operations. |
Share-based Compensation | Share-based Compensation Compensation expense related to the issuance of share-based awards to our employees is measured at fair value on the grant date. We use the Black-Scholes option pricing model to value stock options. The fair value of restricted stock units (“RSUs”) is generally based on the closing price of RBI's common shares on the trading day preceding the date of grant. Our total shareholder return and if applicable our total shareholder return relative to our peer group is incorporated into the underlying assumptions using a Monte Carlo simulation valuation model to calculate grant date fair value for performance based awards with a market condition. The compensation expense for awards that vest over a future service period is recognized over the requisite service period on a straight-line basis, adjusted for estimated forfeitures of awards that are not expected to vest. We use historical data to estimate forfeitures for share-based awards. Upon the end of the service period, compensation expense is adjusted to account for the actual forfeiture rate. The compensation expense for awards that contain performance conditions is recognized when it is probable that the performance conditions will be achieved. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021 and December 2022, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2024. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships. Lessors—Certain Leases with Variable Lease Payments – In July 2021, the FASB issued guidance that requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if (a) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with lease classification criteria and (b) the lessor would have otherwise recognized a day-one loss. This amendment is effective in 2022 with early adoption permitted. This guidance may be applied either retrospectively to leases that commenced or were modified on or after the adoption of lease guidance we adopted in 2019 or prospectively to leases that commence or are modified on or after the date that this new guidance is applied. The adoption of this new guidance during the first quarter of 2022 did not have a material impact on our Financial Statements. |
Earnings Per Unit | Earnings Per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as the exercise of stock options and vesting of RSUs will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value Measurements | The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of December 31, 2022 2021 Fair value of our variable term debt and senior notes $ 11,885 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,890 12,943 |
Firehouse Acquisition (Tables)
Firehouse Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired | The final allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 816 Franchise agreements 19 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 821 Goodwill 195 Total consideration $ 1,016 |
Schedule of Business Acquisitions, by Acquisition | The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding decrease in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price (in millions): 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) |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Unit | The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): 2022 2021 2020 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 1,008 $ 838 $ 486 Net income allocated to Partnership exchangeable unitholders 471 411 262 Net income attributable to common unitholders $ 1,479 $ 1,249 $ 748 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 Weighted average Partnership exchangeable units 144 151 162 Earnings per unit - basic and diluted: Class A common units (a) $ 4.99 $ 4.15 $ 2.41 Partnership exchangeable units (a) $ 3.28 $ 2.72 $ 1.62 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consist of the following (in millions): As of December 31, 2022 2021 Land $ 985 $ 1,011 Buildings and improvements 1,165 1,200 Restaurant equipment 192 193 Furniture, fixtures, and other 300 257 Finance leases 317 323 Construction in progress 52 30 3,011 3,014 Accumulated depreciation and amortization (1,061) (979) Property and equipment, net $ 1,950 $ 2,035 |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net and Goodwill | Intangible assets, net and goodwill consist of the following (in millions): As of December 31, 2022 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 720 $ (313) $ 407 $ 722 $ (290) $ 432 Favorable leases 90 (57) 33 104 (63) 41 Subtotal 810 (370) 440 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,293 $ — $ 6,293 $ 6,695 $ — $ 6,695 Burger King brand 2,088 — 2,088 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 815 — 815 768 — 768 Subtotal 10,551 — 10,551 10,944 — 10,944 Intangible assets, net $ 10,991 $ 11,417 Goodwill Tim Hortons segment $ 4,059 $ 4,306 Burger King segment 590 601 Popeyes segment 846 846 Firehouse segment 193 253 Total $ 5,688 $ 6,006 |
Schedule of Estimated Future Amortization Expenses on Intangible Assets | As of December 31, 2022, the estimated future amortization expense on identifiable assets subject to amortization is as follows (in millions): Twelve-months ended December 31, Amount 2023 $ 37 2024 36 2025 34 2026 34 2027 34 Thereafter 265 Total $ 440 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Franchise and Property Revenue | Franchise and property revenue recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): 2022 2021 2020 Revenues from affiliates: Royalties $ 353 $ 350 $ 239 Advertising revenues 71 67 50 Property revenues 31 32 32 Franchise fees and other revenue 18 21 14 Sales 18 10 3 Total $ 491 $ 480 $ 338 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net | Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions): As of December 31, 2022 2021 Current: Distributions payable $ 243 $ 241 Interest payable 89 63 Accrued compensation and benefits 124 99 Taxes payable 190 106 Deferred income 43 48 Accrued advertising expenses 37 43 Restructuring and other provisions 29 90 Current portion of operating lease liabilities 137 140 Other 109 117 Other accrued liabilities $ 1,001 $ 947 Non-current: Taxes payable $ 139 $ 533 Contract liabilities (see Note 15) 540 531 Derivatives liabilities 34 575 Unfavorable leases 50 65 Accrued pension 40 47 Deferred income 44 37 Other 25 34 Other liabilities, net $ 872 $ 1,822 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (in millions): As of December 31, 2022 2021 Term Loan B $ 5,190 $ 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 155 173 Less: unamortized deferred financing costs and deferred issuance discount (111) (138) Total debt, net 12,934 12,978 Less: current maturities of debt (95) (62) Total long-term debt $ 12,839 $ 12,916 |
Schedule of Aggregate Maturities of Long-Term Debt | The aggregate maturities of our long-term debt as of December 31, 2022 are as follows (in millions): Year Ended December 31, Principal Amount 2023 $ 97 2024 107 2025 741 2026 6,148 2027 — Thereafter 5,952 Total $ 13,045 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): 2022 2021 2020 Debt (a) $ 493 $ 461 $ 471 Finance lease obligations 19 20 20 Amortization of deferred financing costs and debt issuance discount 28 27 26 Interest income (7) (3) (9) Interest expense, net $ 533 $ 505 $ 508 (a) Amount includes $56 million, $45 million and $69 million benefit during 2022, 2021 and 2020, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 12, Derivative Instruments . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Assets Leased, Property and Equipment, Net | Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions): As of December 31, 2022 2021 Land $ 880 $ 899 Buildings and improvements 1,129 1,180 Restaurant equipment 16 18 2,025 2,097 Accumulated depreciation and amortization (625) (587) Property and equipment leased, net $ 1,400 $ 1,510 |
Schedule of Net Investment, Direct Financing Leases | Our net investment in direct financing and sales-type leases is as follows (in millions): As of December 31, 2022 2021 Future rents to be received: Future minimum lease receipts $ 112 $ 113 Contingent rents (a) 5 7 Estimated unguaranteed residual value 6 5 Unearned income (36) (40) 87 85 Current portion included within accounts receivable (5) (5) Net investment in property leased to franchisees $ 82 $ 80 (a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting. |
Schedule of Property Revenue | Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions): 2022 2021 2020 Rental income: Minimum lease payments $ 410 $ 455 $ 445 Variable lease payments 395 329 262 Amortization of favorable and unfavorable income lease contracts, net 1 3 6 Subtotal - lease income from operating leases 806 787 713 Earned income on direct financing and sales-type leases 7 6 5 Total property revenues $ 813 $ 793 $ 718 |
Schedule of Lease Cost | Lease cost and other information associated with these lease commitments is as follows (in millions): Lease Cost (Income) 2022 2021 2020 Operating lease cost $ 202 $ 202 $ 199 Operating lease variable lease cost 196 193 177 Finance lease cost: Amortization of right-of-use assets 27 31 29 Interest on lease liabilities 19 20 20 Sublease income (603) (587) (534) Total lease cost (income) $ (159) $ (141) $ (109) |
Schedule of Lease Terms and Discount Rates | Lease Term and Discount Rate as of December 31, 2022 and 2021 As of December 31, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 9.8 years 10.1 years Finance leases 11.5 years 11.4 years Weighted-average discount rate: Operating leases 5.5 % 5.5 % Finance leases 5.8 % 6.0 % |
Schedule of Other Lease Information | Other Information for 2022, 2021 and 2020 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 198 $ 200 $ 200 Operating cash flows from finance leases $ 19 $ 20 $ 20 Financing cash flows from finance leases $ 31 $ 31 $ 29 Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: Right-of-use assets obtained in exchange for new finance lease obligations $ 22 $ 52 $ 59 Right-of-use assets obtained in exchange for new operating lease obligations $ 133 $ 133 $ 118 |
Schedule of Future Minimum Lease Receipts and Commitments | As of December 31, 2022, future minimum lease receipts and commitments are as follows (in millions): Lease Receipts Lease Commitments (a) Direct Operating Finance Operating 2023 $ 8 $ 355 $ 49 $ 195 2024 8 332 48 184 2025 8 306 44 170 2026 7 276 41 153 2027 7 246 38 139 Thereafter 74 1,217 244 697 Total minimum receipts / payments $ 112 $ 2,732 464 1,538 Less amount representing interest (121) (374) Present value of minimum lease payments 343 1,164 Current portion of lease obligations (32) (137) Long-term portion of lease obligations $ 311 $ 1,027 (a) Minimum lease payments have not been reduced by minimum sublease rentals of $1,663 million due in the future under non-cancelable subleases |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes, classified by source of income, is as follows (in millions): 2022 2021 2020 Canadian $ 444 $ 457 $ 200 Foreign 921 906 616 Income before income taxes $ 1,365 $ 1,363 $ 816 |
Schedule of Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax (benefit) expense attributable to income from continuing operations consists of the following (in millions): 2022 2021 2020 Current: Canadian $ (284) $ 16 $ 45 U.S. Federal 105 (10) 125 U.S. state, net of federal income tax benefit 26 25 26 Other Foreign 96 84 78 $ (57) $ 115 $ 274 Deferred: Canadian $ 20 $ 32 $ (67) U.S. Federal (79) (37) (82) U.S. state, net of federal income tax benefit (9) (7) (27) Other Foreign 8 7 (32) $ (60) $ (5) $ (208) Income tax expense (benefit) $ (117) $ 110 $ 66 |
Schedule of Statutory Rate Reconciles to Effective Income Tax Rate | The statutory rate reconciles to the effective income tax rate as follows: 2022 2021 2020 Statutory rate 26.5 % 26.5 % 26.5 % Costs and taxes related to foreign operations 3.8 3.5 9.6 Foreign exchange gain (loss) — — 0.5 Foreign tax rate differential (13.7) (13.9) (15.6) Change in valuation allowance (0.7) 1.1 1.2 Change in accrual for tax uncertainties (26.7) (7.4) 3.9 Intercompany financing 1.2 (3.5) (6.1) Impact of Tax Act — — (7.8) Swiss Tax Reform — — (5.1) Benefit from stock option exercises (0.1) (0.8) (0.3) Litigation settlements and reserves — 1.4 — Other 1.1 1.2 1.2 Effective income tax rate (8.6) % 8.1 % 8.0 % |
Schedule of Income Tax Expense Benefit Allocated to Continuing Operations and Amounts Separately Allocated to Other Items | Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in millions): 2022 2021 2020 Income tax (benefit) expense from continuing operations $ (117) $ 110 $ 66 Cash flow hedge in accumulated other comprehensive income (loss) 153 72 (64) Net investment hedge in accumulated other comprehensive income (loss) 77 (15) (60) Foreign Currency Translation in accumulated other comprehensive income (loss) — (4) 12 Pension liability in accumulated other comprehensive income (loss) 2 3 (3) Total $ 115 $ 166 $ (49) |
Schedule of Deferred Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | The significant components of deferred income tax (benefit) expense attributable to income from continuing operations are as follows (in millions): 2022 2021 2020 Deferred income tax expense (benefit) $ 79 $ (22) $ (230) Change in valuation allowance (143) 14 22 Change in effective U.S. state income tax rate 3 3 1 Change in effective foreign income tax rate 1 — (1) Total $ (60) $ (5) $ (208) |
Schedule of the Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (in millions): As of December 31, 2022 2021 Deferred tax assets: Accounts and notes receivable $ 8 $ 4 Accrued employee benefits 56 48 Leases 105 115 Operating lease liabilities 304 317 Liabilities not currently deductible for tax 403 346 Tax loss and credit carryforwards 316 517 Derivatives — 164 Other 9 (1) Total gross deferred tax assets 1,201 1,510 Valuation allowance (194) (356) Net deferred tax assets 1,007 1,154 Less deferred tax liabilities: Property and equipment, principally due to differences in depreciation 15 15 Intangible assets 1,707 1,751 Leases 125 129 Operating lease assets 281 295 Statutory impairment 27 29 Derivatives 65 — Outside basis difference 13 38 Total gross deferred tax liabilities 2,233 2,257 Net deferred tax liability $ 1,226 $ 1,103 |
Schedule of Changes in Valuation Allowance | Changes in the valuation allowance are as follows (in millions): 2022 2021 2020 Beginning balance $ 356 $ 364 $ 329 Change in estimates recorded to deferred income tax expense (9) 14 19 Changes in losses and credits (134) — 3 (Reductions) additions related to other comprehensive income (19) (22) 13 Ending balance $ 194 $ 356 $ 364 |
Schedule of Amount and Expiration Dates of Operating Loss and Tax Credit Carry-forwards | The gross amount and expiration dates of operating loss and tax credit carry-forwards as of December 31, 2022 are as follows (in millions): Amount Expiration Date Canadian net operating loss carryforwards $ 521 2036-2042 Canadian capital loss carryforwards 153 Indefinite Canadian tax credits 4 2023-2041 U.S. state net operating loss carryforwards 546 2023-2042 U.S. federal net operating loss carryforwards 19 Indefinite U.S. capital loss carryforwards 16 2040 U.S. foreign tax credits 69 2023-2031 Other foreign net operating loss carryforwards 249 Indefinite Other foreign net operating loss carryforwards 41 2023-2038 Other foreign capital loss carryforward 27 Indefinite Total $ 1,645 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): 2022 2021 2020 Beginning balance $ 437 $ 497 $ 506 Additions for tax positions related to the current year (5) 9 9 Additions for tax positions of prior years 3 23 7 Reductions for tax positions of prior years (15) (5) (25) Additions for settlement — 7 — Reductions due to statute expiration (281) (94) — Ending balance $ 139 $ 437 $ 497 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values | The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our consolidated balance sheets (in millions): Gain or (Loss) Recognized in 2022 2021 2020 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 509 $ 132 $ (333) Forward-currency contracts $ 14 $ — $ (2) Derivatives designated as net investment hedges Cross-currency rate swaps $ 409 $ 96 $ (302) (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from AOCI into 2022 2021 2020 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (54) $ (125) $ (102) Forward-currency contracts Cost of sales $ 8 $ (7) $ 2 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) 2022 2021 2020 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 56 $ 45 $ 69 |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of 2022 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 280 $ — Other assets, net Foreign currency 7 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 78 23 Other assets, net Total assets at fair value $ 365 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ — $ 220 Other liabilities, net Derivatives designated as net investment hedges Foreign currency 34 355 Other liabilities, net Total liabilities at fair value $ 34 $ 575 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Change in the Components of AOCI | The following table displays the change in the components of AOCI (in millions): Derivatives Pensions Foreign Accumulated Balances at December 31, 2019 $ 306 $ (29) $ (1,455) $ (1,178) Foreign currency translation adjustment — — 332 332 Net change in fair value of derivatives, net of tax (486) — — (486) Amounts reclassified to earnings of cash flow hedges, net of tax 73 — — 73 Pension and post-retirement benefit plans, net of tax — (16) — (16) Balances at December 31, 2020 $ (107) $ (45) $ (1,123) $ (1,275) Foreign currency translation adjustment — — (67) (67) Net change in fair value of derivatives, net of tax 207 — — 207 Amounts reclassified to earnings of cash flow hedges, net of tax 96 — — 96 Pension and post-retirement benefit plans, net of tax — 15 — 15 Balances at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) Foreign currency translation adjustment — — (703) (703) Net change in fair value of derivatives, net of tax 714 — — 714 Amounts reclassified to earnings of cash flow hedges, net of tax 34 — — 34 Pension and post-retirement benefit plans, net of tax — 6 — 6 Balances at December 31, 2022 $ 944 $ (24) $ (1,893) $ (973) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | 2022 2021 2020 Total share-based compensation expense - RSUs and Stock options $ 121 $ 88 $ 74 |
Schedule of Time-vested RSUs and Performance-based RSUs Activity | The following is a summary of time-vested RSUs and performance-based RSUs activity for the year ended December 31, 2022: Time-vested RSUs Performance-based RSUs Total Number of Weighted Average Total Number of Weighted Average Outstanding at January 1, 2022 2,764 $ 57.47 3,895 $ 62.09 Granted 1,722 $ 57.24 2,693 $ 51.31 Vested and settled (852) $ 56.00 (153) $ 58.31 Dividend equivalents granted 103 $ — 160 $ — Forfeited (184) $ 58.66 (158) $ 64.78 Outstanding at December 31, 2022 3,553 $ 57.31 6,437 $ 57.43 |
Schedule of the Significant Assumptions Used During the Year to Estimate the Fair Value of Stock Options | 2022 2020 Risk-free interest rate 3.92% 1.29% Expected term (in years) 7.50 5.88 Expected volatility 30.0% 23.9% Expected dividend yield 3.24% 3.14% |
Schedule of Option Activity under the Various Plan | The following is a summary of stock option activity under our plans for the year ended December 31, 2022: Total Number of Weighted Aggregate Weighted Outstanding at January 1, 2022 6,207 $ 54.80 Granted 2,018 $ 66.62 Exercised (484) $ 43.42 Forfeited (247) $ 64.83 Outstanding at December 31, 2022 7,494 $ 58.00 $ 55,682 6.1 Exercisable at December 31, 2022 2,724 $ 46.72 $ 48,953 3.0 Vested or expected to vest at December 31, 2022 7,125 $ 57.75 $ 54,835 6.0 (a) The intrinsic value represents the amount by which the fair value of RBI's stock exceeds the option exercise price at December 31, 2022. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Contract Liabilities | The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2021 and December 31, 2022 (in millions): Contract Liabilities Balance at December 31, 2021 $ 531 Effect of business combination 8 Recognized during period and included in the contract liability balance at the beginning of the year (57) Increase, excluding amounts recognized as revenue during the period 71 Impact of foreign currency translation (13) Balance at December 31, 2022 $ 540 |
Schedule of Estimated Revenues Expected to be Recognized | The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of December 31, 2022 (in millions): Contract liabilities expected to be recognized in 2023 $ 52 2024 50 2025 47 2026 44 2027 42 Thereafter 305 Total $ 540 |
Schedule of Disaggregation of Total Revenues | The following tables disaggregate revenue by segment (in millions): 2022 TH BK PLK FHS Total Sales $ 2,631 $ 70 $ 78 $ 40 $ 2,819 Royalties 320 1,064 287 66 1,737 Property revenues 577 224 12 — 813 Franchise fees and other revenue 28 54 10 19 111 Advertising revenues and other services 267 485 260 13 1,025 Total revenues $ 3,823 $ 1,897 $ 647 $ 138 $ 6,505 2021 TH BK PLK FHS Total Sales $ 2,249 $ 64 $ 64 $ 1 $ 2,378 Royalties 287 1,008 264 2 1,561 Property revenues 556 224 13 — 793 Franchise fees and other revenue 21 60 6 2 89 Advertising revenues and other services 229 457 232 — 918 Total revenues $ 3,342 $ 1,813 $ 579 $ 5 $ 5,739 2020 TH BK PLK FHS Total Sales $ 1,876 $ 64 $ 73 $ — $ 2,013 Royalties 240 842 245 — 1,327 Property revenues 486 219 13 — 718 Franchise fees and other revenue 19 52 5 — 76 Advertising revenues and other services 189 425 220 — 834 Total revenues $ 2,810 $ 1,602 $ 556 $ — $ 4,968 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expenses (Income), Net | Other operating expenses (income), net, consist of the following (in millions): 2022 2021 2020 Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ 4 $ 2 $ 6 Litigation settlements and reserves, net 11 81 7 Net losses (gains) on foreign exchange (4) (76) 100 Other, net 14 — (8) Other operating expenses (income), net $ 25 $ 7 $ 105 |
Segment Reporting and Geograp_2
Segment Reporting and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Segment and Country | The following tables present revenues, by segment and by country, depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions): 2022 2021 2020 Revenues by operating segment: TH $ 3,823 $ 3,342 $ 2,810 BK 1,897 1,813 1,602 PLK 647 579 556 FHS 138 5 — Total $ 6,505 $ 5,739 $ 4,968 Revenues by country (a): Canada $ 3,458 $ 3,035 $ 2,546 United States 2,273 2,005 1,889 Other 774 699 533 Total $ 6,505 $ 5,739 $ 4,968 |
Schedule of Segment Related Depreciation and Amortization Expense | Depreciation and amortization: TH $ 114 $ 132 $ 119 BK 66 62 62 PLK 8 7 8 FHS 2 — — Total $ 190 $ 201 $ 189 |
Schedule of Segment Related Income (Loss) from Equity Method Investments | (Income) loss from equity method investments: TH $ (8) $ (13) $ (4) BK 51 17 43 PLK 1 — — Total $ 44 $ 4 $ 39 |
Schedule of Segment Related Capital Expenditure | Capital expenditures: TH $ 30 $ 61 $ 92 BK 63 34 18 PLK 6 11 7 FHS 1 — — Total $ 100 $ 106 $ 117 |
Schedule of Segment Related Assets and Long Lived Assets | Total assets by segment, and long-lived assets by segment and country are as follows (in millions): Assets Long-Lived Assets As of December 31, As of December 31, 2022 2021 2022 2021 By operating segment: TH $ 13,279 $ 13,995 $ 1,819 $ 1,963 BK 5,007 4,946 1,140 1,137 PLK 2,572 2,563 143 141 FHS 1,098 1,103 12 4 Unallocated 790 639 — — Total $ 22,746 $ 23,246 $ 3,114 $ 3,245 By country: Canada $ 1,531 $ 1,670 United States 1,558 1,556 Other 25 19 Total $ 3,114 $ 3,245 |
Schedule of Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income consists of the following (in millions): 2022 2021 2020 Segment income: TH $ 1,073 $ 997 $ 823 BK 1,007 1,021 823 PLK 242 228 218 FHS 56 2 — Adjusted EBITDA 2,378 2,248 1,864 Share-based compensation and non-cash incentive compensation expense 136 102 84 FHS Transaction costs 24 18 — Corporate restructuring and tax advisory fees 46 16 16 Impact of equity method investments (a) 59 25 48 Other operating expenses (income), net 25 7 105 EBITDA 2,088 2,080 1,611 Depreciation and amortization 190 201 189 Income from operations 1,898 1,879 1,422 Interest expense, net 533 505 508 Loss on early extinguishment of debt — 11 98 Income tax (benefit) expense (117) 110 66 Net income $ 1,482 $ 1,253 $ 750 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2022 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,178 $ — $ — $ 1,178 Accounts and notes receivable, net 614 — — 614 Inventories, net 133 — — 133 Prepaids and other current assets 123 — — 123 Total current assets 2,048 — — 2,048 Property and equipment, net 1,950 — — 1,950 Operating lease assets, net 1,082 — — 1,082 Intangible assets, net 10,991 — — 10,991 Goodwill 5,688 — — 5,688 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 243 (243) — Investment in subsidiaries — 4,268 (4,268) — Other assets, net 905 — — 905 Total assets $ 22,746 $ 4,511 $ (4,511) $ 22,746 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 758 $ — $ — $ 758 Other accrued liabilities 758 243 — 1,001 Gift card liability 230 — — 230 Current portion of long term debt and finance leases 127 — — 127 Total current liabilities 1,873 243 — 2,116 Term debt, net of current portion 12,839 — — 12,839 Finance leases, net of current portion 311 — — 311 Operating lease liabilities, net of current portion 1,027 — — 1,027 Other liabilities, net 872 — — 872 Payables to affiliates 243 — (243) — Deferred income taxes, net 1,313 — — 1,313 Total liabilities 18,478 243 (243) 18,478 Partners’ capital: Class A common units — 8,735 — 8,735 Partnership exchangeable units — (3,496) — (3,496) Common shares 2,494 — (2,494) — Retained earnings 2,745 — (2,745) — Accumulated other comprehensive income (loss) (973) (973) 973 (973) Total Partners’ capital/shareholders’ equity 4,266 4,266 (4,266) 4,266 Noncontrolling interests 2 2 (2) 2 Total equity 4,268 4,268 (4,268) 4,268 Total liabilities and equity $ 22,746 $ 4,511 $ (4,511) $ 22,746 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2021 Consolidated RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets, net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners’ capital/shareholders’ equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 |
Condensed Income Statement | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2022 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,819 $ — $ — $ 2,819 Franchise and property revenues 2,661 — — 2,661 Advertising revenues and other services 1,025 — — 1,025 Total revenues 6,505 — — 6,505 Operating costs and expenses: Cost of sales 2,312 — — 2,312 Franchise and property expenses 518 — — 518 Advertising expenses and other services 1,077 — — 1,077 General and administrative expenses 631 — — 631 (Income) loss from equity method investments 44 — — 44 Other operating expenses (income), net 25 — — 25 Total operating costs and expenses 4,607 — — 4,607 Income from operations 1,898 — — 1,898 Interest expense, net 533 — — 533 Income before income taxes 1,365 — — 1,365 Income tax (benefit) expense (117) — — (117) Net income 1,482 — — 1,482 Equity in earnings of consolidated subsidiaries — 1,482 (1,482) — Net income (loss) 1,482 1,482 (1,482) 1,482 Net income (loss) attributable to noncontrolling interests 3 3 (3) 3 Net income (loss) attributable to common unitholders $ 1,479 $ 1,479 $ (1,479) $ 1,479 Total comprehensive income (loss) $ 1,533 $ 1,533 $ (1,533) $ 1,533 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,378 $ — $ — $ 2,378 Franchise and property revenues 2,443 — — 2,443 Advertising revenues and other services 918 — — 918 Total revenues 5,739 — — 5,739 Operating costs and expenses: Cost of sales 1,890 — — 1,890 Franchise and property expenses 489 — — 489 Advertising expenses and other services 986 — — 986 General and administrative expenses 484 — — 484 (Income) loss from equity method investments 4 — — 4 Other operating expenses (income), net 7 — — 7 Total operating costs and expenses 3,860 — — 3,860 Income from operations 1,879 — — 1,879 Interest expense, net 505 — — 505 Loss on early extinguishment of debt 11 — — 11 Income before income taxes 1,363 — — 1,363 Income tax expense 110 — — 110 Net income 1,253 — — 1,253 Equity in earnings of consolidated subsidiaries — 1,253 (1,253) — Net income (loss) 1,253 1,253 (1,253) 1,253 Net income (loss) attributable to noncontrolling interests 4 4 (4) 4 Net income (loss) attributable to common unitholders $ 1,249 $ 1,249 $ (1,249) $ 1,249 Total comprehensive income (loss) $ 1,504 $ 1,504 $ (1,504) $ 1,504 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Revenues: Sales $ 2,013 $ — $ — $ 2,013 Franchise and property revenues 2,121 — — 2,121 Advertising revenues and other services 834 — — 834 Total revenues 4,968 — — 4,968 Operating costs and expenses: Cost of sales 1,610 — — 1,610 Franchise and property expenses 515 — — 515 Advertising expenses and other services 870 — — 870 General and administrative expenses 407 — — 407 (Income) loss from equity method investments 39 — — 39 Other operating expenses (income), net 105 — — 105 Total operating costs and expenses 3,546 — — 3,546 Income from operations 1,422 — — 1,422 Interest expense, net 508 — — 508 Loss on early extinguishment of debt 98 — — 98 Income before income taxes 816 — — 816 Income tax expense 66 — — 66 Net income 750 — — 750 Equity in earnings of consolidated subsidiaries — 750 (750) — Net income (loss) 750 750 (750) 750 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 748 $ 748 $ (748) $ 748 Total comprehensive income (loss) $ 653 $ 653 $ (653) $ 653 |
Condensed Cash Flow Statement | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2022 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,482 $ 1,482 $ (1,482) $ 1,482 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,482) 1,482 — Depreciation and amortization 190 — — 190 Amortization of deferred financing costs and debt issuance discount 28 — — 28 (Income) loss from equity method investments 44 — — 44 Loss (gain) on remeasurement of foreign denominated transactions (4) — — (4) Net (gains) losses on derivatives (9) — — (9) Share-based compensation and non-cash incentive compensation expense 136 — — 136 Deferred income taxes (60) — — (60) Other 19 — — 19 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (110) — — (110) Inventories and prepaids and other current assets (61) — — (61) Accounts and drafts payable 169 — — 169 Other accrued liabilities and gift card liability 37 — — 37 Tenant inducements paid to franchisees (26) — — (26) Other long-term assets and liabilities (345) — — (345) Net cash provided by operating activities 1,490 — — 1,490 Cash flows from investing activities: Payments for property and equipment (100) — — (100) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Net payments in connection with purchase of Firehouse Subs (12) — — (12) Settlement/sale of derivatives, net 71 — — 71 Other investing activities, net (35) — — (35) Net cash used for investing activities (64) — — (64) Cash flows from financing activities: Proceeds from long-term debt 2 — — 2 Repayments of long-term debt and finance leases (94) — — (94) Distributions on Class A and Partnership exchangeable units — (971) — (971) Distributions to RBI for repurchase of RBI common shares — (326) — (326) Capital contribution from RBI 51 — — 51 Distributions from subsidiaries (1,297) 1,297 — — (Payments) proceeds from derivatives 34 — — 34 Other financing activities, net (3) — — (3) Net cash used for financing activities (1,307) — — (1,307) Effect of exchange rates on cash and cash equivalents (28) — — (28) Increase (decrease) in cash and cash equivalents 91 — — 91 Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 1,178 $ — $ — $ 1,178 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2021 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 1,253 $ 1,253 $ (1,253) $ 1,253 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (1,253) 1,253 — Depreciation and amortization 201 — — 201 Premiums paid and non-cash loss on early extinguishment of debt 11 — — 11 Amortization of deferred financing costs and debt issuance discount 27 — — 27 (Income) loss from equity method investments 4 — — 4 Loss (gain) on remeasurement of foreign denominated transactions (76) — — (76) Net (gains) losses on derivatives 87 — — 87 Share-based compensation and non-cash incentive compensation expense 102 — — 102 Deferred income taxes (5) — — (5) Other (16) — — (16) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 8 — — 8 Inventories and prepaids and other current assets 12 — — 12 Accounts and drafts payable 149 — — 149 Other accrued liabilities and gift card liability 67 — — 67 Tenant inducements paid to franchisees (20) — — (20) Other long-term assets and liabilities (78) — — (78) Net cash provided by operating activities 1,726 — — 1,726 Cash flows from investing activities: Payments for property and equipment (106) — — (106) Net proceeds from disposal of assets, restaurant closures and refranchisings 16 — — 16 Net payment for purchase of Firehouse Subs, net of cash acquired (1,004) — — (1,004) Settlement/sale of derivatives, net 5 — — 5 Other investing activities, net (14) — — (14) Net cash used for investing activities (1,103) — — (1,103) Cash flows from financing activities: Proceeds from long-term debt 1,335 — — 1,335 Repayments of long-term debt and finance leases (889) — — (889) Payment of financing costs (19) — — (19) Distributions on Class A and Partnership exchangeable units — (974) — (974) Repurchase of Partnership exchangeable units — — — — Distributions to RBI for repurchase of RBI common shares — (551) — (551) Capital contribution from RBI 60 — — 60 Distributions from subsidiaries (1,525) 1,525 — — (Payments) proceeds from derivatives (51) — — (51) Other financing activities, net (4) — — (4) Net cash used for financing activities (1,093) — — (1,093) Effect of exchange rates on cash and cash equivalents (3) — — (3) Increase (decrease) in cash and cash equivalents (473) — — (473) Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,087 $ — $ — $ 1,087 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) 2020 Consolidated RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 750 $ 750 $ (750) $ 750 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (750) 750 — Depreciation and amortization 189 — — 189 Premiums paid and non-cash loss on early extinguishment of debt 97 — — 97 Amortization of deferred financing costs and debt issuance discount 26 — — 26 (Income) loss from equity method investments 39 — — 39 Loss (gain) on remeasurement of foreign denominated transactions 100 — — 100 Net (gains) losses on derivatives 32 — — 32 Share-based compensation and non-cash incentive compensation expense 84 — — 84 Deferred income taxes (208) — — (208) Other 28 — — 28 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (30) — — (30) Inventories and prepaids and other current assets (10) — — (10) Accounts and drafts payable (183) — — (183) Other accrued liabilities and gift card liability 6 — — 6 Tenant inducements paid to franchisees (22) — — (22) Other long-term assets and liabilities 23 — — 23 Net cash provided by operating activities 921 — — 921 Cash flows from investing activities: Payments for property and equipment (117) — — (117) Net proceeds from disposal of assets, restaurant closures and refranchisings 12 — — 12 Settlement/sale of derivatives, net 33 — — 33 Other investing activities, net (7) — — (7) Net cash used for investing activities (79) — — (79) Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 5,235 — — 5,235 Repayments of revolving line of credit, long-term debt and finance leases (4,708) — — (4,708) Payment of financing costs (43) — — (43) Distributions on Class A and Partnership exchangeable units — (959) — (959) Repurchase of Partnership exchangeable units — (380) — (380) Capital contribution from RBI 82 — — 82 Distributions from subsidiaries (1,339) 1,339 — — (Payments) proceeds from derivatives (46) — — (46) Other financing activities, net (2) — — (2) Net cash used for financing activities (821) — — (821) Effect of exchange rates on cash and cash equivalents 6 — — 6 Increase (decrease) in cash and cash equivalents 27 — — 27 Cash and cash equivalents at beginning of period 1,533 — — 1,533 Cash and cash equivalents at end of period $ 1,560 $ — $ — $ 1,560 |
Description of Business and O_2
Description of Business and Organization - Additional Information (Details) | Dec. 31, 2022 brand country |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 30,722 |
Number of countries in which company and franchise restaurants operated (more than) | country | 100 |
Percentage of franchised restaurants (as a percent) | 100% |
TH | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 5,600 |
Burger King brand | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 19,789 |
Popeyes brand | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 4,091 |
Firehouse | |
Basis of Presentation [Line Items] | |
Number of franchised or owned restaurants | 1,242 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) brand | Dec. 31, 2021 USD ($) brand | Dec. 31, 2020 USD ($) | |
Summary Of Accounting Policies [Line Items] | |||
Advertising revenues | $ (6,505,000,000) | $ (5,739,000,000) | $ (4,968,000,000) |
Advertising expenses and other services | 1,032,000,000 | 962,000,000 | 870,000,000 |
Goodwill and brand impairment | 0 | 0 | 0 |
Financing Receivable, Credit Loss, Expense (Reversal) | 19,000,000 | (9,000,000) | 33,000,000 |
Revision of Prior Period, Reclassification, Adjustment | Technology Expense | |||
Summary Of Accounting Policies [Line Items] | |||
General and administrative expenses decrease | 24,000,000 | ||
Advertising expenses and other services | 24,000,000 | ||
Franchise and property revenues | |||
Summary Of Accounting Policies [Line Items] | |||
Advertising revenues | (2,661,000,000) | (2,443,000,000) | (2,121,000,000) |
Franchise and property revenues | Revision of Prior Period, Reclassification, Adjustment | Technology Fee | |||
Summary Of Accounting Policies [Line Items] | |||
Advertising revenues | 9,000,000 | ||
Advertising revenues and other services | |||
Summary Of Accounting Policies [Line Items] | |||
Advertising revenues | $ (1,025,000,000) | (918,000,000) | $ (834,000,000) |
Advertising revenues and other services | Revision of Prior Period, Reclassification, Adjustment | Technology Fee | |||
Summary Of Accounting Policies [Line Items] | |||
Advertising revenues | $ (9,000,000) | ||
Buildings and improvements | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 40 years | ||
Restaurant equipment | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 17 years | ||
Furniture, fixtures, and other | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 10 years | ||
Manufacturing equipment | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 25 years | ||
Corporate Systems | Maximum | |||
Summary Of Accounting Policies [Line Items] | |||
Estimated useful life of assets (up to) | 5 years | ||
Restaurant VIEs | |||
Summary Of Accounting Policies [Line Items] | |||
Number of consolidated restaurants | brand | 41 | 46 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Principal carrying amount of our variable term debt and senior notes | $ 12,934 | $ 12,978 |
Variable Term Debt and Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of our variable term debt and senior notes | 11,885 | 12,851 |
Principal carrying amount of our variable term debt and senior notes | $ 12,890 | $ 12,943 |
Firehouse Acquisition - Additio
Firehouse Acquisition - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Proceeds from revolving line of credit and long-term debt | $ 2 | $ 1,335 | $ 5,235 | |
Firehouse Subs brand | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 1,016 | |||
FH transaction costs | $ 24 | 18 | $ 0 | |
Firehouse Subs brand | Franchise agreements | ||||
Business Acquisition [Line Items] | ||||
Weighted average useful life of intangible assets | 18 years | |||
Firehouse Subs brand | Unallocated management G&A | Selling, general and administrative expenses | ||||
Business Acquisition [Line Items] | ||||
FH transaction costs | $ 1 | $ 18 | ||
Firehouse Subs brand | Secured Debt | ||||
Business Acquisition [Line Items] | ||||
Proceeds from revolving line of credit and long-term debt | $ 533 |
Firehouse Acquisition - Schedul
Firehouse Acquisition - Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,688 | $ 6,006 | |
Firehouse Subs brand | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 21 | ||
Property and equipment | 4 | ||
Operating lease assets | 9 | ||
Total liabilities | (48) | ||
Total identifiable net assets | 821 | ||
Goodwill | 195 | ||
Total consideration | 1,016 | ||
Firehouse Subs brand | Franchise agreements | |||
Business Acquisition [Line Items] | |||
Franchise agreements | 19 | ||
Firehouse Subs brand | Trade Names | |||
Business Acquisition [Line Items] | |||
Firehouse Subs brand | $ 816 |
Firehouse Acquisition - Sched_2
Firehouse Acquisition - Schedule of Adjustments to Net Assets (Details) - Firehouse Subs brand $ in Millions | 13 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Operating lease assets | $ (9) |
Total liabilities | 35 |
Total consideration | (17) |
Total decrease in goodwill | (58) |
Franchise agreements | |
Business Acquisition [Line Items] | |
Firehouse Subs brand and Franchise agreements | (19) |
Trade Names | |
Business Acquisition [Line Items] | |
Firehouse Subs brand and Franchise agreements | $ (48) |
Earnings Per Unit - Basic and D
Earnings Per Unit - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 1,479 | $ 1,249 | $ 748 |
Class A common units | |||
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 1,008 | $ 838 | $ 486 |
Denominator - basic and diluted partnership units: | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 202 | 202 | 202 |
Weighted average number of units outstanding, diluted (in dollars per share) | 202 | 202 | 202 |
Earnings per unit - basic and diluted: | |||
Earnings per unit, basic (in shares) | $ 4.99 | $ 4.15 | $ 2.41 |
Earnings per unit, diluted (in shares) | $ 4.99 | $ 4.15 | $ 2.41 |
Partnership exchangeable units | |||
Allocation of net income among partner interests: | |||
Net income attributable to common unitholders | $ 471 | $ 411 | $ 262 |
Denominator - basic and diluted partnership units: | |||
Weighted average number of unit outstanding, basic (in dollars per share) | 144 | 151 | 162 |
Weighted average number of units outstanding, diluted (in dollars per share) | 144 | 151 | 162 |
Earnings per unit - basic and diluted: | |||
Earnings per unit, basic (in shares) | $ 3.28 | $ 2.72 | $ 1.62 |
Earnings per unit, diluted (in shares) | $ 3.28 | $ 2.72 | $ 1.62 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | $ 3,011 | $ 3,014 |
Accumulated depreciation and amortization | (1,061) | (979) |
Property and equipment, net | 1,950 | 2,035 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 985 | 1,011 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 1,165 | 1,200 |
Restaurant equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 192 | 193 |
Furniture, fixtures, and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 300 | 257 |
Finance Lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | 317 | 323 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, including finance leases, gross | $ 52 | $ 30 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense on property and equipment | $ 135 | $ 148 | $ 140 |
Accumulated depreciation and amortization, finance leases | 90 | 77 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Assets leased under finance leases | $ 227 | $ 246 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 810 | $ 826 |
Accumulated Amortization | (370) | (353) |
Total | 440 | 473 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 10,551 | 10,944 |
Intangible assets, net | 10,991 | 11,417 |
Goodwill [Line Items] | ||
Goodwill | 5,688 | 6,006 |
TH | ||
Goodwill [Line Items] | ||
Goodwill | 4,059 | 4,306 |
Burger King brand | ||
Goodwill [Line Items] | ||
Goodwill | 590 | 601 |
Popeyes brand | ||
Goodwill [Line Items] | ||
Goodwill | 846 | 846 |
Firehouse Subs brand | ||
Goodwill [Line Items] | ||
Goodwill | 193 | 253 |
Trade Names | TH | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 6,293 | 6,695 |
Trade Names | Burger King brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 2,088 | 2,126 |
Trade Names | Popeyes brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 1,355 | 1,355 |
Trade Names | Firehouse Subs brand | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 815 | 768 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 720 | 722 |
Accumulated Amortization | (313) | (290) |
Total | 407 | 432 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 90 | 104 |
Accumulated Amortization | (57) | (63) |
Total | $ 33 | $ 41 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense on intangible assets | $ 39 | $ 41 | $ 43 |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Schedule of the Estimated Future Amortization Expenses on Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 37 | |
2024 | 36 | |
2025 | 34 | |
2026 | 34 | |
2027 | 34 | |
Thereafter | 265 | |
Total | $ 440 | $ 473 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 0 | $ 0 | |
Equity method investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable from equity method investments | 42 | 48 | |
Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | 13 | ||
Impairment of equity method investment | $ 15 | ||
BK Brasil | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 9.40% | ||
Quoted market price | $ 27 | ||
TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | 16 | ||
Wendy's Company TIMWEN Partnership | TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash distributions | 13 | 16 | $ 8 |
Rent expense | $ 19 | 18 | $ 15 |
United States | Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 15.20% | ||
United States | TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 3.80% | ||
Canadian | Wendy's Company TIMWEN Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (as a percent) | 50% | ||
Other assets, net | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 167 | $ 194 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Franchise and Property Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from affiliates: | |||
Property revenues | $ 813 | $ 793 | $ 718 |
Total revenues | 6,505 | 5,739 | 4,968 |
Royalties | |||
Revenues from affiliates: | |||
Sales | 1,737 | 1,561 | 1,327 |
Advertising revenues | |||
Revenues from affiliates: | |||
Sales | 1,025 | 918 | 834 |
Total revenues | 1,025 | 918 | 834 |
Franchise fees and other revenue | |||
Revenues from affiliates: | |||
Sales | 111 | 89 | 76 |
Affiliates | |||
Revenues from affiliates: | |||
Total revenues | 491 | 480 | 338 |
Affiliates | Royalties | |||
Revenues from affiliates: | |||
Sales | 353 | 350 | 239 |
Affiliates | Advertising revenues | |||
Revenues from affiliates: | |||
Sales | 71 | 67 | 50 |
Affiliates | Property revenues | |||
Revenues from affiliates: | |||
Property revenues | 31 | 32 | 32 |
Affiliates | Franchise fees and other revenue | |||
Revenues from affiliates: | |||
Sales | 18 | 21 | 14 |
Affiliates | Sales | |||
Revenues from affiliates: | |||
Sales | $ 18 | $ 10 | $ 3 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current: | ||
Distributions payable | $ 243 | $ 241 |
Interest payable | 89 | 63 |
Accrued compensation and benefits | 124 | 99 |
Taxes payable | 190 | 106 |
Deferred income | 43 | 48 |
Accrued advertising expenses | 37 | 43 |
Restructuring and other provisions | 29 | 90 |
Current portion of operating lease liabilities | $ 137 | $ 140 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Other | $ 109 | $ 117 |
Other accrued liabilities | 1,001 | 947 |
Non-current: | ||
Taxes payable | 139 | 533 |
Contract liabilities (see Note 15) | 540 | 531 |
Derivatives liabilities | 34 | 575 |
Unfavorable leases | 50 | 65 |
Accrued pension | 40 | 47 |
Deferred income | 44 | 37 |
Other | 25 | 34 |
Other liabilities, net | $ 872 | $ 1,822 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 |
Debt Instrument [Line Items] | ||||||||
TH Facility and other | $ 155 | $ 173 | ||||||
Less: unamortized deferred financing costs and deferred issuance discount | (111) | (138) | ||||||
Total debt, net | 12,934 | 12,978 | ||||||
Less: current maturities of debt | (95) | (62) | ||||||
Total long-term debt | 12,839 | 12,916 | ||||||
Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan facility | 5,190 | 5,243 | ||||||
Term Loan A | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan facility | $ 1,250 | 1,250 | $ 1,250 | |||||
3.875% First Lien Senior Notes due 2028 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||||||
Senior notes | $ 1,550 | 1,550 | ||||||
3.50% First Lien Senior Notes due 2029 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 3.50% | |||||||
Senior notes | 750 | 750 | ||||||
5.75% First Lien Senior Notes due 2025 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 5.75% | |||||||
Senior notes | $ 500 | 500 | ||||||
4.375% Second Lien Senior Notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.375% | |||||||
4.375% Second Lien Senior Notes due 2028 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||||
Senior notes | $ 750 | 750 | ||||||
4.00% Second Lien Senior Notes due 2030 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 4% | |||||||
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities (Details) $ in Millions | 12 Months Ended | |||
Dec. 13, 2021 USD ($) subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Capitalized debt issuance costs | $ 0 | $ 19 | $ 43 | |
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Senior secured revolving credit facility | 1,000 | |||
Commitment fee percentage (as a percent) | 0.15% | |||
Term Loan A | ||||
Line of Credit Facility [Line Items] | ||||
Number of subsidiaries | subsidiary | 2 | |||
Term loan facility | $ 1,250 | $ 1,250 | 1,250 | |
Interest rate, base rate floor (as a percent) | 1% | |||
Effective interest rate (as a percent) | 5.44% | |||
Term Loan A | Term loan A Quarterly Installment, One | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly installment payment | $ 8 | |||
Term Loan A | Term loan A Quarterly Installment, Thereafter | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly installment payment | $ 16 | |||
Term Loan A | Base rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument floor rate (as a percent) | 0% | |||
Term Loan A | Base rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument floor rate (as a percent) | 0.50% | |||
Term Loan A | Adjusted Term SOFR | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate, base rate floor (as a percent) | 0% | |||
Debt instrument adjustment (as a percent) | 0.10% | |||
Term Loan A | Adjusted Term SOFR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument floor rate (as a percent) | 0.75% | |||
Term Loan A | Adjusted Term SOFR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument floor rate (as a percent) | 1.50% | |||
Fifth Incremental Amendment | ||||
Line of Credit Facility [Line Items] | ||||
Capitalized debt issuance costs | 12 | |||
Term Loan B | ||||
Line of Credit Facility [Line Items] | ||||
Term loan facility | $ 5,190 | $ 5,243 | ||
Effective interest rate (as a percent) | 6.13% | |||
Term Loan B | Term loan A Quarterly Installment, One | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly installment payment | $ 13 | |||
Term Loan B | Base rate | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate, base rate floor (as a percent) | 1% | |||
Debt instrument floor rate (as a percent) | 0.75% | |||
Term Loan B | Eurodollar | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate, base rate floor (as a percent) | 0% | |||
Debt instrument floor rate (as a percent) | 1.75% |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Letter of Credit | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument floor rate (as a percent) | 0.75% |
Letter of Credit | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument floor rate (as a percent) | 1.50% |
Line of credit | Revolving credit facility | |
Line of Credit Facility [Line Items] | |
Letter of credit | $ 0 |
Remaining borrowing capacity | 998,000,000 |
Line of credit | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letter of credit | 2,000,000 |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - USD ($) | 12 Months Ended | ||||||||||
Jul. 15, 2021 | Jul. 06, 2021 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||||||||
Capitalized debt issuance costs | $ 0 | $ 19,000,000 | $ 43,000,000 | ||||||||
Loss on early extinguishment of debt | 0 | 11,000,000 | 98,000,000 | $ 98,000,000 | |||||||
Premiums paid and non-cash loss on early extinguishment of debt | $ 0 | $ 11,000,000 | 97,000,000 | ||||||||
4.375% Second Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.375% | ||||||||||
Senior notes | 3.875% First Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||||||
Aggregate principal amount of debt issued | $ 800,000,000 | $ 750,000,000 | |||||||||
Principal payments | 0 | ||||||||||
Debt instrument redemption price percentage (as a percent) | 100.25% | ||||||||||
Senior notes | 2017 4.25% Senior Notes (due May 15, 2024) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.25% | ||||||||||
Principal amount redeemed | $ 775,000,000 | $ 725,000,000 | |||||||||
Capitalized debt issuance costs | $ 7,000,000 | ||||||||||
Loss on early extinguishment of debt | $ 11,000,000 | $ 19,000,000 | |||||||||
Senior notes | 5.75% First Lien Senior Notes due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 5.75% | ||||||||||
Aggregate principal amount of debt issued | $ 500,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 10,000,000 | ||||||||||
Senior notes | 3.50% First Lien Senior Notes due 2029 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 3.50% | ||||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 7,000,000 | ||||||||||
Senior notes | 4.375% Second Lien Senior Notes due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | |||||||||
Aggregate principal amount of debt issued | $ 750,000,000 | ||||||||||
Principal payments | $ 0 | ||||||||||
Senior notes | 4.00% Second Lien Senior Notes due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 4% | ||||||||||
Aggregate principal amount of debt issued | $ 2,900,000,000 | ||||||||||
Principal payments | 0 | ||||||||||
Capitalized debt issuance costs | $ 26,000,000 | ||||||||||
Senior notes | Senior Notes 5.00 Due October 15, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate (as a percent) | 5% | ||||||||||
Principal amount redeemed | $ 2,800,000,000 | ||||||||||
Loss on early extinguishment of debt | 11,000,000 | ||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | $ 79,000,000 |
Long-Term Debt - Restrictions a
Long-Term Debt - Restrictions and Covenants (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 |
Line of Credit Facility [Line Items] | ||||||
Amount of letter of credit outstanding | $ 0 | |||||
4.375% Second Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | |||||
Senior notes | 3.875% First Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||||
Senior notes | 5.75% First Lien Senior Notes due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 5.75% | |||||
Senior notes | 3.50% First Lien Senior Notes due 2029 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 3.50% | |||||
Senior notes | 4.375% Second Lien Senior Notes due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||
Senior notes | 4.00% Second Lien Senior Notes due 2030 | ||||||
Line of Credit Facility [Line Items] | ||||||
Stated interest rate (as a percent) | 4% | |||||
Line of credit | ||||||
Line of Credit Facility [Line Items] | ||||||
First lien senior secured leverage ratio limit | 6.50 | |||||
Swingline loans outstanding percentage (as a percent) | 30% | |||||
Covenant, maximum amount of letters of credit outstanding | $ 50,000,000 |
Long-Term Debt - TH Facility an
Long-Term Debt - TH Facility and RE Facility (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) subsidiary | Dec. 31, 2022 CAD ($) subsidiary | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||
Principal carrying amount of our variable term debt and senior notes | $ 12,934,000,000 | $ 12,978,000,000 | |
TH Facility | Line of credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Maximum borrowing capacity | $ 225,000,000 | ||
Number of guaranteed subsidiaries | subsidiary | 4 | 4 | |
Principal carrying amount of our variable term debt and senior notes | $ 203,000,000 | ||
Effective interest rate (as a percent) | 6.07% | 6.07% | |
TH Facility | Line of credit | Canadian Bankers' Acceptance rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 1.40% | ||
TH Facility | Line of credit | Prime rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 0.40% | ||
RE Facility | Line of credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Maximum borrowing capacity | $ 50,000,000 | ||
Number of guaranteed subsidiaries | subsidiary | 4 | 4 | |
Principal carrying amount of our variable term debt and senior notes | $ 2,000,000 | ||
Effective interest rate (as a percent) | 5.97% | 5.97% | |
RE Facility | Line of credit | Base rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 0.50% | ||
RE Facility | Line of credit | Adjusted Term SOFR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 1.50% | ||
Interest rate, base rate floor (as a percent) | 0% |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs and Loss on Early Extinguishment of Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Jul. 15, 2021 | Nov. 09, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 24, 2019 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||
Capitalized debt issuance costs | $ 0 | $ 19 | $ 43 | |||||
Loss on early extinguishment of debt | $ 0 | $ 11 | 98 | $ 98 | ||||
Senior notes | Senior Notes 5.00 Due October 15, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | 11 | |||||||
Principal amount redeemed | $ 2,800 | |||||||
Stated interest rate (as a percent) | 5% | |||||||
Senior notes | 2017 4.25% Senior Notes (due May 15, 2024) | ||||||||
Debt Instrument [Line Items] | ||||||||
Capitalized debt issuance costs | $ 7 | |||||||
Loss on early extinguishment of debt | $ 11 | $ 19 | ||||||
Principal amount redeemed | $ 775 | $ 725 | ||||||
Stated interest rate (as a percent) | 4.25% |
Long-Term Debt - Schedule of Ag
Long-Term Debt - Schedule of Aggregate Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 97 |
2024 | 107 |
2025 | 741 |
2026 | 6,148 |
2027 | 0 |
Thereafter | 5,952 |
Total | $ 13,045 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Debt | $ 493 | $ 461 | $ 471 |
Finance lease obligations | 19 | 20 | 20 |
Amortization of deferred financing costs and debt issuance discount | 28 | 27 | 26 |
Interest income | (7) | (3) | (9) |
Interest expense, net | 533 | 505 | 508 |
Derivatives designated as net investment hedges | Interest expense, net | Cross-currency rate swaps | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain recognized in earnings (excluded from effectiveness testing) | $ 56 | $ 45 | $ 69 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 property restaurant | |
Leases [Abstract] | |
Restaurant properties to franchisees leased or subleased | restaurant | 4,978 |
Non restaurant properties to third parties under capital and operating leases | property | 147 |
Minimum lease term for assets given on lease | 10 years |
Maximum lease term for assets given on lease | 20 years |
Minimum lease term for assets taken on lease | 10 years |
Maximum lease term for assets taken on lease | 20 years |
Leases - Schedule of Assets Lea
Leases - Schedule of Assets Lease, Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | $ 2,025 | $ 2,097 |
Accumulated depreciation and amortization | (625) | (587) |
Property and equipment leased, net | 1,400 | 1,510 |
Land | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | 880 | 899 |
Buildings and improvements | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | 1,129 | 1,180 |
Restaurant equipment | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property and equipment, gross | $ 16 | $ 18 |
Leases - Schedule of Net Invest
Leases - Schedule of Net Investment, Direct Financing Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Future rents to be received: | ||
Future minimum lease receipts | $ 112 | $ 113 |
Contingent rents | 5 | 7 |
Estimated unguaranteed residual value | 6 | 5 |
Unearned income | (36) | (40) |
Net investment, direct financing leases | 87 | 85 |
Current portion included within accounts receivable | (5) | (5) |
Net investment in property leased to franchisees | $ 82 | $ 80 |
Leases - Schedule of Property R
Leases - Schedule of Property Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Rental income: | |||
Minimum lease payments | $ 410 | $ 455 | $ 445 |
Variable lease payments | 395 | 329 | 262 |
Amortization of favorable and unfavorable income lease contracts, net | 1 | 3 | 6 |
Subtotal - lease income from operating leases | 806 | 787 | 713 |
Earned income on direct financing and sales-type leases | 7 | 6 | 5 |
Total property revenues | $ 813 | $ 793 | $ 718 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 202 | $ 202 | $ 199 |
Operating lease variable lease cost | 196 | 193 | 177 |
Finance lease cost: | |||
Amortization of right-of-use assets | 27 | 31 | 29 |
Interest on lease liabilities | 19 | 20 | 20 |
Sublease income | (603) | (587) | (534) |
Total lease cost (income) | $ (159) | $ (141) | $ (109) |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 9 years 9 months 18 days | 10 years 1 month 6 days |
Finance leases | 11 years 6 months | 11 years 4 months 24 days |
Weighted-average discount rate: | ||
Operating leases | 5.50% | 5.50% |
Finance leases | 5.80% | 6% |
Leases - Other Information Asso
Leases - Other Information Associated With Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 198 | $ 200 | $ 200 |
Operating cash flows from finance leases | 19 | 20 | 20 |
Financing cash flows from finance leases | 31 | 31 | 29 |
Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: | |||
Right-of-use assets obtained in exchange for new finance lease obligations | 22 | 52 | 59 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 133 | $ 133 | $ 118 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Receipts and Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Direct Financing and Sales-Type Leases | ||
2023 | $ 8 | |
2024 | 8 | |
2025 | 8 | |
2026 | 7 | |
2027 | 7 | |
Thereafter | 74 | |
Total minimum receipts / payments | 112 | |
Operating Leases | ||
2023 | 355 | |
2024 | 332 | |
2025 | 306 | |
2026 | 276 | |
2027 | 246 | |
Thereafter | 1,217 | |
Total minimum receipts / payments | 2,732 | |
Finance Leases | ||
2023 | 49 | |
2024 | 48 | |
2025 | 44 | |
2026 | 41 | |
2027 | 38 | |
Thereafter | 244 | |
Total minimum receipts / payments | 464 | |
Less amount representing interest | (121) | |
Present value of minimum lease payments | $ 343 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases |
Current portion of lease obligations | $ (32) | |
Long-term portion of lease obligations | 311 | $ 333 |
Operating Leases | ||
2023 | 195 | |
2024 | 184 | |
2025 | 170 | |
2026 | 153 | |
2027 | 139 | |
Thereafter | 697 | |
Total minimum receipts / payments | 1,538 | |
Less amount representing interest | (374) | |
Present value of minimum lease payments | 1,164 | |
Current portion of lease obligations | (137) | (140) |
Long-term portion of lease obligations | 1,027 | $ 1,070 |
Minimum sublease rentals | $ 1,663 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax [Line Items] | |||
Foreign | $ 921 | $ 906 | $ 616 |
Income before income taxes | 1,365 | 1,363 | 816 |
Canadian | |||
Income Tax [Line Items] | |||
Foreign | $ 444 | $ 457 | $ 200 |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Current Income Tax Expense (Benefit) | $ (57) | $ 115 | $ 274 |
Deferred: | |||
Total | (60) | (5) | (208) |
Income tax expense (benefit) | (117) | 110 | 66 |
Canadian | |||
Current: | |||
Canadian | (284) | 16 | 45 |
Deferred: | |||
Canadian | 20 | 32 | (67) |
United States | |||
Current: | |||
U.S. Federal | 105 | (10) | 125 |
U.S. state, net of federal income tax benefit | 26 | 25 | 26 |
Deferred: | |||
U.S. Federal | (79) | (37) | (82) |
U.S. state, net of federal income tax benefit | (9) | (7) | (27) |
Other Foreign | |||
Current: | |||
Canadian | 96 | 84 | 78 |
Deferred: | |||
Canadian | $ 8 | $ 7 | $ (32) |
Income Taxes - Schedule of US F
Income Taxes - Schedule of US Federal Tax Statutory Rate Reconciles to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 26.50% | 26.50% | 26.50% |
Costs and taxes related to foreign operations | 3.80% | 3.50% | 9.60% |
Foreign exchange gain (loss) | 0% | 0% | 0.50% |
Foreign tax rate differential | (13.70%) | (13.90%) | (15.60%) |
Change in valuation allowance | (0.70%) | 1.10% | 1.20% |
Change in accrual for tax uncertainties | (26.70%) | (7.40%) | 3.90% |
Intercompany financing | 1.20% | (3.50%) | (6.10%) |
Impact of Tax Act | 0% | 0% | (7.80%) |
Swiss Tax Reform | 0% | 0% | (5.10%) |
Benefit from stock option exercises | (0.10%) | (0.80%) | (0.30%) |
Litigation settlements and reserves | 0% | 1.40% | 0% |
Other | 1.10% | 1.20% | 1.20% |
Effective income tax rate | (8.60%) | 8.10% | 8% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax [Line Items] | ||||
Impact from TCJA, favorable adjustment | $ 64 | |||
Decrease in effective tax rate (as a percent) | 7.80% | |||
Federal act on tax reform and AVS financing, change in tax rate, provisional income tax benefit | $ 41 | |||
Federal act on tax reform and AVS financing, decrease in effective rate (as a percent) | 5.10% | |||
Increase in valuation allowance | $ (162) | |||
Unrecognized tax benefits | 139 | $ 437 | $ 497 | $ 506 |
Possible reduction in unrecognized tax benefits in the next twelve months | 48 | |||
Total amount of accrued interest and penalties | 27 | 121 | ||
Potential interest and penalties associated with uncertain tax positions | $ 3 | $ 2 | $ 31 | |
Maximum | ||||
Income Tax [Line Items] | ||||
Income tax returns period subject to examination (up to) | 6 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax (Benefit) Expense Allocated to Continuing Operations and Amounts Separately Allocated to Other Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (117) | $ 110 | $ 66 |
Cash flow hedge in accumulated other comprehensive income (loss) | 153 | 72 | (64) |
Net investment hedge in accumulated other comprehensive income (loss) | 77 | (15) | (60) |
Foreign Currency Translation in accumulated other comprehensive income (loss) | 0 | (4) | 12 |
Pension liability in accumulated other comprehensive income (loss) | 2 | 3 | (3) |
Total | $ 115 | $ 166 | $ (49) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax (Benefit) Expense Attributable to Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Deferred income tax expense (benefit) | $ 79 | $ (22) | $ (230) |
Change in valuation allowance | (143) | 14 | 22 |
Change in effective U.S. state income tax rate | 3 | 3 | 1 |
Change in effective foreign income tax rate | 1 | 0 | (1) |
Total | $ (60) | $ (5) | $ (208) |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||||
Accounts and notes receivable | $ 8 | $ 4 | ||
Accrued employee benefits | 56 | 48 | ||
Leases | 105 | 115 | ||
Operating lease liabilities | 304 | 317 | ||
Liabilities not currently deductible for tax | 403 | 346 | ||
Tax loss and credit carryforwards | 316 | 517 | ||
Derivatives | 0 | 164 | ||
Other | 9 | (1) | ||
Total gross deferred tax assets | 1,201 | 1,510 | ||
Valuation allowance | (194) | (356) | $ (364) | $ (329) |
Net deferred tax assets | 1,007 | 1,154 | ||
Less deferred tax liabilities: | ||||
Property and equipment, principally due to differences in depreciation | 15 | 15 | ||
Intangible assets | 1,707 | 1,751 | ||
Leases | 125 | 129 | ||
Operating lease assets | 281 | 295 | ||
Statutory impairment | 27 | 29 | ||
Derivatives | 65 | 0 | ||
Outside basis difference | 13 | 38 | ||
Total gross deferred tax liabilities | 2,233 | 2,257 | ||
Net deferred tax liability | $ 1,226 | $ 1,103 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Valuation Allowance, beginning balance | $ 356 | $ 364 | $ 329 |
Change in estimates recorded to deferred income tax expense | (9) | 14 | 19 |
Changes in losses and credits | (134) | 0 | 3 |
(Reductions) additions related to other comprehensive income | (19) | (22) | 13 |
Valuation Allowance, ending balance | $ 194 | $ 356 | $ 364 |
Income Taxes - Schedule of Amou
Income Taxes - Schedule of Amount and Expiration Dates of Operating Loss and Tax Credit Carry-forwards (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Total | $ 1,645 |
Canadian net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 521 |
Canadian capital loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Capital loss carryforwards | 153 |
Canadian tax credits | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
U.S. foreign tax credits | 4 |
U.S. state net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 546 |
U.S. federal net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 19 |
U.S. capital loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Capital loss carryforwards | 16 |
U.S. foreign tax credits | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
U.S. foreign tax credits | 69 |
Foreign tax | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 249 |
Capital loss carryforwards | 27 |
Other foreign net operating loss carryforwards | |
Operating Loss And Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | $ 41 |
Income Taxes - A Reconciliation
Income Taxes - A Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 437 | $ 497 | $ 506 |
Additions for tax positions related to the current year | (5) | ||
Additions for tax positions related to the current year | 9 | 9 | |
Additions for tax positions of prior years | 3 | 23 | 7 |
Reductions for tax positions of prior years | (15) | (5) | (25) |
Additions for settlement | 0 | 7 | 0 |
Reductions due to statute expiration | (281) | (94) | 0 |
Ending balance | $ 139 | $ 437 | $ 497 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Settlement/sale of derivatives, net | $ 71,000,000 | $ 5,000,000 | $ 33,000,000 | |||
Interest Rate Swap - Period One | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 3,500,000,000 | |||||
Interest Rate Swap - Period Two | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 500,000,000 | |||||
Cross currency interest rate contract | Derivatives designated as net investment hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Settlement/sale of derivatives, net | 35,000,000 | |||||
Cross currency interest rate contract | Fixed income interest rate | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 5,000,000,000 | |||||
Derivative, notional amount, dedesignated | 5,000,000,000 | |||||
Cross currency interest rate contract | Fixed income interest rate | Derivatives designated as net investment hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | $ 150,000,000 | $ 500,000,000 | $ 400,000,000 | |||
Cross currency interest rate contract | Fixed income interest rate | Hedge Funds | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 1,200,000,000 | € 1,108 | ||||
Foreign Exchange Contract | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 197,000,000 | |||||
Interest rate | Interest expense, net | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Loss reclassified from OACI to Income | $ 86,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives designated as cash flow hedges | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ 509 | $ 132 | $ (333) |
Derivatives designated as cash flow hedges | Interest rate swaps | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Reclassified from AOCI into Earnings | (54) | (125) | (102) |
Derivatives designated as cash flow hedges | Forward-currency contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 14 | 0 | (2) |
Derivatives designated as cash flow hedges | Forward-currency contracts | Cost of sales | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Reclassified from AOCI into Earnings | 8 | (7) | 2 |
Derivatives designated as net investment hedges | Cross-currency rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 409 | 96 | (302) |
Derivatives designated as net investment hedges | Cross-currency rate swaps | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 56 | $ 45 | $ 69 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 365 | $ 25 |
Derivative liabilities | 34 | 575 |
Derivatives designated as cash flow hedges | Foreign currency | Prepaids and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 2 |
Derivatives designated as cash flow hedges | Interest rate | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 280 | 0 |
Derivatives designated as cash flow hedges | Interest rate | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 220 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 78 | 23 |
Derivatives designated as net investment hedges | Foreign currency | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 34 | $ 355 |
Equity - Additional Information
Equity - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) day brand shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Jul. 28, 2021 USD ($) | |
Stockholders Equity [Line Items] | ||||
Number of special voting share | brand | 1 | |||
Common share for partnership exchangeable unit | 1 | |||
Number of consecutive trading days | day | 20 | |||
Exchange of partnership exchange units for RBI common shares (in shares) | 10,119,880 | 10,393,861 | ||
Partners capital account exchanges and conversions (in shares) | 6,757,692 | |||
Partners capital account converted units, amount | $ | $ 380,000,000 | |||
Stock repurchase program, authorized amount (up to) | $ | $ 1,000,000,000 | |||
Shares repurchased and retired during period (in shares) | 6,101,364 | 9,247,648 | ||
Stock repurchased and retired during period | $ | $ 326,000,000 | $ 551,000,000 | ||
Partnership exchangeable units | ||||
Stockholders Equity [Line Items] | ||||
Exchange of partnership exchange units for RBI common shares (in shares) | 1,996,818 | 10,119,880 | 3,636,169 |
Equity - Schedule of Change in
Equity - Schedule of Change in the Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,853 | $ 3,721 | $ 4,259 |
Foreign currency translation adjustment | (703) | (67) | 332 |
Net change in fair value of derivatives, net of tax | 714 | 207 | (486) |
Amounts reclassified to earnings of cash flow hedges, net of tax | 34 | 96 | 73 |
Pension and post-retirement benefit plans, net of tax | 6 | 15 | (16) |
Ending balance | 4,268 | 3,853 | 3,721 |
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 196 | (107) | 306 |
Net change in fair value of derivatives, net of tax | 714 | 207 | (486) |
Amounts reclassified to earnings of cash flow hedges, net of tax | 34 | 96 | 73 |
Ending balance | 944 | 196 | (107) |
Pensions | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (30) | (45) | (29) |
Pension and post-retirement benefit plans, net of tax | 6 | 15 | (16) |
Ending balance | (24) | (30) | (45) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,190) | (1,123) | (1,455) |
Foreign currency translation adjustment | (703) | (67) | 332 |
Ending balance | (1,893) | (1,190) | (1,123) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,024) | (1,275) | (1,178) |
Ending balance | $ (973) | $ (1,024) | $ (1,275) |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, period for recognition | 3 years 1 month 6 days | |||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
New awards granted (in shares) | 2,000,000 | 2,018,000 | ||
Expected term of grant options | 7 years 6 months | 5 years 10 months 17 days | ||
Fair value of options granted (in usd per share) | $ 17.52 | $ 10.15 | $ 10.38 | |
Total intrinsic value of stock options exercised | $ 10 | $ 46 | $ 55 | |
United States Treasury yield | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term of grant options | 5 years | |||
First anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Second anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 40% | |||
Third anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 100% | |||
2016 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance under the Plan (in shares) | 3,714,406 | |||
Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 312 | |||
Time-vested RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 25% | |||
Vesting period | 4 years | |||
Employee service period | 2 years | |||
Percentage of RSU forfeited (as a percent) | 100% | |||
Granted (in dollars per share) | $ 57.24 | $ 60,970,000 | $ 65,200,000 | |
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 100% | 100% | ||
Vesting period | 5 years 6 months | 3 years | 3 years | |
Employee service period | 2 years | 3 years | ||
New awards granted (in shares) | 750,000 | |||
Granted (in dollars per share) | $ 51.31 | $ 57,600,000 | $ 62,690,000 | |
Performance-based RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service period | 3 years | |||
Performance-based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee service period | 5 years | |||
Performance-based RSUs | If employee retires | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 67% | 50% | ||
Time-vested RSUs and Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
New awards granted (in shares) | 500,000 | |||
Total intrinsic value of vested RSU's | $ 58 | $ 99 | $ 21 | |
Restricted Stock Units (RSUs) | If employee retires | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Restricted Stock Units (RSUs) | First anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Restricted Stock Units (RSUs) | Second anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Restricted Stock Units (RSUs) | Third anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Restricted Stock Units (RSUs) | Fifth anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 20% | |||
Time-Vested RSUs and Performance-Based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, expiration period | 10 years | |||
Time-Vested RSUs and Performance-Based RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 50% | |||
Time-Vested RSUs and Performance-Based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Portion of options vesting on each anniversary date, vesting percentage (as a percent) | 200% | |||
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Stock options, expiration period | 10 years |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Total share-based compensation expense - RSUs and Stock options | $ 121 | $ 88 | $ 74 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of the Significant Assumptions Used During the Year to Estimate the Fair Value of Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 3.92% | 1.29% |
Expected term (in years) | 7 years 6 months | 5 years 10 months 17 days |
Expected volatility | 30% | 23.90% |
Expected dividend yield | 3.24% | 3.14% |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Option Activity under the Various Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2022 | Dec. 31, 2022 | |
Total Number of Options | ||
Outstanding beginning balance (in shares) | 6,207 | |
Granted (in shares) | 2,000 | 2,018 |
Exercised (in shares) | (484) | |
Forfeited (in shares) | (247) | |
Outstanding ending balance (in shares) | 7,494 | |
Number of options, exercisable (in shares) | 2,724 | |
Number of options, vested or expected to vest (in shares) | 7,125 | |
Weighted Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 54.80 | |
Granted (in dollars per share) | 66.62 | |
Exercised (in dollars per share) | 43.42 | |
Forfeited (in dollars per share) | 64.83 | |
Outstanding ending balance (in dollars per share) | 58 | |
Weighted average exercise price, exercisable (in dollars per share) | 46.72 | |
Weighted average exercise price, vested or expected to vest (in dollars per share) | $ 57.75 | |
Stock Option Activity, Additional Disclosures | ||
Aggregate intrinsic value, outstanding | $ 55,682 | |
Weighted average remaining contractual term | 6 years 1 month 6 days | |
Aggregate intrinsic value, exercisable | $ 48,953 | |
Weighted average remaining contractual term, exercisable | 3 years | |
Aggregate intrinsic value, vested or expected to vest | $ 54,835 | |
Weighted average remaining contractual term, vested or expected to vest | 6 years |
Share-based Compensation - Sc_4
Share-based Compensation - Schedule of Time-vested RSUs and Performance-based RSUs Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Time-vested RSUs | |||
Total Number of Shares (in 000’s) | |||
Outstanding, beginning balance (in shares) | 2,764 | ||
Granted (in shares) | 1,722 | ||
Vested and settled (in shares) | (852) | ||
Dividend equivalents granted (in shares) | 103 | ||
Forfeited (in shares) | (184) | ||
Outstanding, ending balance (in shares) | 3,553 | 2,764 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in dollars per share) | $ 57.47 | ||
Granted (in dollars per share) | 57.24 | $ 60,970,000 | $ 65,200,000 |
Vested and settled (in dollars per share) | 56 | ||
Dividend equivalents granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 58.66 | ||
Outstanding, ending balance (in dollars per share) | $ 57.31 | $ 57.47 | |
Performance-based RSUs | |||
Total Number of Shares (in 000’s) | |||
Outstanding, beginning balance (in shares) | 3,895 | ||
Granted (in shares) | 2,693 | ||
Vested and settled (in shares) | (153) | ||
Dividend equivalents granted (in shares) | 160 | ||
Forfeited (in shares) | (158) | ||
Outstanding, ending balance (in shares) | 6,437 | 3,895 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance (in dollars per share) | $ 62.09 | ||
Granted (in dollars per share) | 51.31 | $ 57,600,000 | $ 62,690,000 |
Vested and settled (in dollars per share) | 58.31 | ||
Dividend equivalents granted (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 64.78 | ||
Outstanding, ending balance (in dollars per share) | $ 57.43 | $ 62.09 |
Revenue Recognition - Change in
Revenue Recognition - Change in Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | $ 531 |
Effect of business combination | 8 |
Recognized during period and included in the contract liability balance at the beginning of the year | (57) |
Increase, excluding amounts recognized as revenue during the period | 71 |
Impact of foreign currency translation | (13) |
Ending balance | $ 540 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Recognition (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 540 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 52 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 50 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 47 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 44 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 42 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Contract liabilities expected to be recognized in | $ 305 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Total Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | $ 813 | $ 793 | $ 718 |
Total revenues | 6,505 | 5,739 | 4,968 |
TH | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | 577 | 556 | 486 |
Total revenues | 3,823 | 3,342 | 2,810 |
BK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | 224 | 224 | 219 |
Total revenues | 1,897 | 1,813 | 1,602 |
PLK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | 12 | 13 | 13 |
Total revenues | 647 | 579 | 556 |
FHS | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Property revenues | 0 | 0 | 0 |
Total revenues | 138 | 5 | 0 |
Sales | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 2,819 | 2,378 | 2,013 |
Total revenues | 2,819 | 2,378 | 2,013 |
Sales | TH | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 2,631 | 2,249 | 1,876 |
Sales | BK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 70 | 64 | 64 |
Sales | PLK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 78 | 64 | 73 |
Sales | FHS | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 40 | 1 | 0 |
Royalties | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 1,737 | 1,561 | 1,327 |
Royalties | TH | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 320 | 287 | 240 |
Royalties | BK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 1,064 | 1,008 | 842 |
Royalties | PLK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 287 | 264 | 245 |
Royalties | FHS | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 66 | 2 | 0 |
Franchise fees and other revenue | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 111 | 89 | 76 |
Franchise fees and other revenue | TH | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 28 | 21 | 19 |
Franchise fees and other revenue | BK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 54 | 60 | 52 |
Franchise fees and other revenue | PLK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 10 | 6 | 5 |
Franchise fees and other revenue | FHS | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 19 | 2 | 0 |
Advertising revenues and other services | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 1,025 | 918 | 834 |
Total revenues | 1,025 | 918 | 834 |
Advertising revenues and other services | TH | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 267 | 229 | 189 |
Advertising revenues and other services | BK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 485 | 457 | 425 |
Advertising revenues and other services | PLK | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | 260 | 232 | 220 |
Advertising revenues and other services | FHS | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Sales | $ 13 | $ 0 | $ 0 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Net losses (gains) on disposal of assets, restaurant closures and refranchisings | $ 4 | $ 2 | $ 6 |
Litigation settlements and reserves, net | 11 | 81 | 7 |
Net losses (gains) on foreign exchange | (4) | (76) | 100 |
Other, net | 14 | 0 | (8) |
Other operating expenses (income), net | $ 25 | $ 7 | $ 105 |
Other Operating Expenses (Inc_4
Other Operating Expenses (Income), net - (Narratives) (Details) - Burger King And Popeyes - China - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Litigation settlement and reserves | $ 100 | $ 72 |
Other Operating Income (Expense) | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Litigation settlement and reserves | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended |
Apr. 30, 2022 case | Dec. 31, 2022 USD ($) | |
Commitments Contingencies And Litigation [Line Items] | ||
Amount withdrawn from standby letter of credit | $ 0 | |
Litigation settlement | $ 23,000,000 | |
Hussain Vs Burger King Corporation | Pending litigation | ||
Commitments Contingencies And Litigation [Line Items] | ||
New claims file | case | 2 | |
Purchase commitment | ||
Commitments Contingencies And Litigation [Line Items] | ||
Contractual obligation related with telecommunication | 2 years | |
Purchase of advertising | $ 212,000,000 | |
Standby letters of credit | ||
Commitments Contingencies And Litigation [Line Items] | ||
Amount withdrawn from standby letter of credit | 11,000,000 | |
Letter of credit secured by collateral | $ 2,000,000 |
Segment Reporting and Geograp_3
Segment Reporting and Geographical Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 segment brand | |
Segment Reporting [Abstract] | |
Number of brands | brand | 4 |
Number of operating segments | 4 |
Number of reportable segments | 4 |
Segment Reporting and Geograp_4
Segment Reporting and Geographical Information - Revenues by Geographic Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 6,505 | $ 5,739 | $ 4,968 |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 3,458 | $ 3,035 | $ 2,546 |
Canada | Sales revenue | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (as a percent) | 10% | 10% | 10% |
United States | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 2,273 | $ 2,005 | $ 1,889 |
United States | Sales revenue | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (as a percent) | 10% | 10% | 10% |
Other | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 774 | $ 699 | $ 533 |
TH | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 3,823 | 3,342 | 2,810 |
BK | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 1,897 | 1,813 | 1,602 |
PLK | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | 647 | 579 | 556 |
FHS | |||
Revenue, Major Customer [Line Items] | |||
Revenues: | $ 138 | $ 5 | $ 0 |
Segment Reporting and Geograp_5
Segment Reporting and Geographical Information - Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 190 | $ 201 | $ 189 |
TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 114 | 132 | 119 |
BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 66 | 62 | 62 |
PLK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | 8 | 7 | 8 |
FHS | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 2 | $ 0 | $ 0 |
Segment Reporting and Geograp_6
Segment Reporting and Geographical Information - (Income) Loss from Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | $ 44 | $ 4 | $ 39 |
TH | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | (8) | (13) | (4) |
BK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | 51 | 17 | 43 |
PLK | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
(Income) loss from equity method investments | $ 1 | $ 0 | $ 0 |
Segment Reporting and Geograp_7
Segment Reporting and Geographical Information - Capital Expenditure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | $ 100 | $ 106 | $ 117 |
TH | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | 30 | 61 | 92 |
BK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | 63 | 34 | 18 |
PLK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | 6 | 11 | 7 |
FHS | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Capital expenditures: | $ 1 | $ 0 | $ 0 |
Segment Reporting and Geograp_8
Segment Reporting and Geographical Information - Schedule of Segment Related Assets and Long Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | $ 22,746 | $ 23,246 |
Long-Lived Assets | 3,114 | 3,245 |
Canada | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 1,531 | $ 1,670 |
Canada | Geographic concentration risk | Assets, Total | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Percentage of revenue (as a percent) | 10% | 10% |
United States | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 1,558 | $ 1,556 |
United States | Geographic concentration risk | Assets, Total | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Percentage of revenue (as a percent) | 10% | 10% |
Other | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 25 | $ 19 |
Operating segments | TH | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 13,279 | 13,995 |
Long-Lived Assets | 1,819 | 1,963 |
Operating segments | BK | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 5,007 | 4,946 |
Long-Lived Assets | 1,140 | 1,137 |
Operating segments | PLK | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 2,572 | 2,563 |
Long-Lived Assets | 143 | 141 |
Operating segments | FHS | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 1,098 | 1,103 |
Long-Lived Assets | 12 | 4 |
Unallocated | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets | 790 | 639 |
Long-Lived Assets | $ 0 | $ 0 |
Segment Reporting and Geograp_9
Segment Reporting and Geographical Information - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | $ 2,378 | $ 2,248 | $ 1,864 | |
(Income) loss from equity method investments | 44 | 4 | 39 | |
Other operating expenses (income), net | 25 | 7 | 105 | |
EBITDA | 2,088 | 2,080 | 1,611 | |
Depreciation and amortization | 190 | 201 | 189 | |
Income from operations | 1,898 | 1,879 | 1,422 | |
Interest expense, net | 533 | 505 | 508 | |
Loss on early extinguishment of debt | 0 | 11 | 98 | $ 98 |
Income tax (benefit) expense | (117) | 110 | 66 | |
Net income | 1,482 | 1,253 | 750 | |
FHS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
FHS Transaction costs | 24 | 18 | 0 | |
TH | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
(Income) loss from equity method investments | (8) | (13) | (4) | |
BK | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
(Income) loss from equity method investments | 51 | 17 | 43 | |
PLK | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
(Income) loss from equity method investments | 1 | 0 | 0 | |
Operating segments | TH | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 1,073 | 997 | 823 | |
Operating segments | BK | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 1,007 | 1,021 | 823 | |
Operating segments | PLK | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 242 | 228 | 218 | |
Operating segments | FHS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Adjusted EBITDA | 56 | 2 | 0 | |
Unallocated management G&A | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Share-based compensation and non-cash incentive compensation expense | 136 | 102 | 84 | |
Corporate restructuring and tax advisory fees | 46 | 16 | 16 | |
(Income) loss from equity method investments | 59 | 25 | 48 | |
Other operating expenses (income), net | $ 25 | $ 7 | $ 105 |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) | Dec. 31, 2022 | Dec. 31, 2020 | Nov. 09, 2020 | Apr. 07, 2020 | Nov. 19, 2019 | Sep. 24, 2019 |
3.875% First Lien Senior Notes due 2028 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | ||||
5.75% First Lien Senior Notes due 2025 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 5.75% | |||||
3.50% First Lien Senior Notes due 2029 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 3.50% | |||||
4.375% Second Lien Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | |||||
4.375% Second Lien Senior Notes due 2028 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.375% | 4.375% | ||||
4.00% Second Lien Senior Notes due 2030 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Cash and cash equivalents | $ 1,178 | $ 1,087 | $ 1,560 | $ 1,533 |
Accounts and notes receivable, net | 614 | 547 | ||
Inventories, net | 133 | 96 | ||
Prepaids and other current assets | 123 | 86 | ||
Total current assets | 2,048 | 1,816 | ||
Property and equipment leased, net | 1,950 | 2,035 | ||
Operating lease assets, net | 1,082 | 1,130 | ||
Intangible assets, net | 10,991 | 11,417 | ||
Goodwill | 5,688 | 6,006 | ||
Net investment in property leased to franchisees | 82 | 80 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 905 | 762 | ||
Total assets | 22,746 | 23,246 | ||
Current liabilities: | ||||
Accounts and drafts payable | 758 | 614 | ||
Other accrued liabilities | 1,001 | 947 | ||
Gift card liability | 230 | 221 | ||
Current portion of long-term debt and finance leases | 127 | 96 | ||
Total current liabilities | 2,116 | 1,878 | ||
Long-term debt, net of current portion | 12,839 | 12,916 | ||
Long-term portion of lease obligations | 311 | 333 | ||
Operating lease liabilities, net of current portion | 1,027 | 1,070 | ||
Other liabilities, net | 872 | 1,822 | ||
Payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 1,313 | 1,374 | ||
Total liabilities | 18,478 | 19,393 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (973) | (1,024) | ||
Total Partners’ capital | 4,266 | 3,850 | ||
Noncontrolling interests | 2 | 3 | ||
Total equity | 4,268 | 3,853 | 3,721 | 4,259 |
Total liabilities and equity | 22,746 | 23,246 | ||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,735 | 8,421 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | (3,496) | (3,547) | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment leased, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Net investment in property leased to franchisees | 0 | 0 | ||
Intercompany receivable | (243) | (241) | ||
Investment in subsidiaries | (4,268) | (3,853) | ||
Other assets, net | 0 | 0 | ||
Total assets | (4,511) | (4,094) | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Long-term portion of lease obligations | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | 0 | ||
Payables to affiliates | (243) | (241) | ||
Deferred income taxes, net | 0 | 0 | ||
Total liabilities | (243) | (241) | ||
Partners’ capital: | ||||
Common shares | (2,494) | (2,635) | ||
Retained earnings | (2,745) | (2,239) | ||
Accumulated other comprehensive income (loss) | 973 | 1,024 | ||
Total Partners’ capital | (4,266) | (3,850) | ||
Noncontrolling interests | (2) | (3) | ||
Total equity | (4,268) | (3,853) | ||
Total liabilities and equity | (4,511) | (4,094) | ||
Eliminations | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Eliminations | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,178 | 1,087 | 1,560 | 1,533 |
Accounts and notes receivable, net | 614 | 547 | ||
Inventories, net | 133 | 96 | ||
Prepaids and other current assets | 123 | 86 | ||
Total current assets | 2,048 | 1,816 | ||
Property and equipment leased, net | 1,950 | 2,035 | ||
Operating lease assets, net | 1,082 | 1,130 | ||
Intangible assets, net | 10,991 | 11,417 | ||
Goodwill | 5,688 | 6,006 | ||
Net investment in property leased to franchisees | 82 | 80 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 905 | 762 | ||
Total assets | 22,746 | 23,246 | ||
Current liabilities: | ||||
Accounts and drafts payable | 758 | 614 | ||
Other accrued liabilities | 758 | 706 | ||
Gift card liability | 230 | 221 | ||
Current portion of long-term debt and finance leases | 127 | 96 | ||
Total current liabilities | 1,873 | 1,637 | ||
Long-term debt, net of current portion | 12,839 | 12,916 | ||
Long-term portion of lease obligations | 311 | 333 | ||
Operating lease liabilities, net of current portion | 1,027 | 1,070 | ||
Other liabilities, net | 872 | 1,822 | ||
Payables to affiliates | 243 | 241 | ||
Deferred income taxes, net | 1,313 | 1,374 | ||
Total liabilities | 18,478 | 19,393 | ||
Partners’ capital: | ||||
Common shares | 2,494 | 2,635 | ||
Retained earnings | 2,745 | 2,239 | ||
Accumulated other comprehensive income (loss) | (973) | (1,024) | ||
Total Partners’ capital | 4,266 | 3,850 | ||
Noncontrolling interests | 2 | 3 | ||
Total equity | 4,268 | 3,853 | ||
Total liabilities and equity | 22,746 | 23,246 | ||
Consolidated Borrowers | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
RBILP | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment leased, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Net investment in property leased to franchisees | 0 | 0 | ||
Intercompany receivable | 243 | 241 | ||
Investment in subsidiaries | 4,268 | 3,853 | ||
Other assets, net | 0 | 0 | ||
Total assets | 4,511 | 4,094 | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 243 | 241 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 243 | 241 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Long-term portion of lease obligations | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Total liabilities | 243 | 241 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (973) | (1,024) | ||
Total Partners’ capital | 4,266 | 3,850 | ||
Noncontrolling interests | 2 | 3 | ||
Total equity | 4,268 | 3,853 | ||
Total liabilities and equity | 4,511 | 4,094 | ||
RBILP | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,735 | 8,421 | ||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | $ (3,496) | $ (3,547) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||||
Total revenues | $ 6,505 | $ 5,739 | $ 4,968 | |
Operating costs and expenses: | ||||
Cost of sales | 2,312 | 1,890 | 1,610 | |
Franchise and property expenses | 518 | 489 | 515 | |
Advertising expenses and other services | 1,077 | 986 | 870 | |
General and administrative expenses | 631 | 484 | 407 | |
(Income) loss from equity method investments | 44 | 4 | 39 | |
Other operating expenses (income), net | 25 | 7 | 105 | |
Total operating costs and expenses | 4,607 | 3,860 | 3,546 | |
Income from operations | 1,898 | 1,879 | 1,422 | |
Interest expense, net | 533 | 505 | 508 | |
Loss on early extinguishment of debt | 0 | 11 | 98 | $ 98 |
Income before income taxes | 1,365 | 1,363 | 816 | |
Income tax (benefit) expense | (117) | 110 | 66 | |
Net income | 1,482 | 1,253 | 750 | |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | |
Net income | 1,482 | 1,253 | 750 | |
Net income attributable to noncontrolling interests | 3 | 4 | 2 | |
Net income attributable to common unitholders | 1,479 | 1,249 | 748 | |
Total comprehensive income (loss) | 1,533 | 1,504 | 653 | |
Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Operating costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | |
Franchise and property expenses | 0 | 0 | 0 | |
Advertising expenses and other services | 0 | 0 | 0 | |
General and administrative expenses | 0 | 0 | 0 | |
(Income) loss from equity method investments | 0 | 0 | 0 | |
Other operating expenses (income), net | 0 | 0 | 0 | |
Total operating costs and expenses | 0 | 0 | 0 | |
Income from operations | 0 | 0 | 0 | |
Interest expense, net | 0 | 0 | 0 | |
Loss on early extinguishment of debt | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | |
Income tax (benefit) expense | 0 | 0 | 0 | |
Net income | 0 | 0 | 0 | |
Equity in earnings of consolidated subsidiaries | (1,482) | (1,253) | (750) | |
Net income | (1,482) | (1,253) | (750) | |
Net income attributable to noncontrolling interests | (3) | (4) | (2) | |
Net income attributable to common unitholders | (1,479) | (1,249) | (748) | |
Total comprehensive income (loss) | (1,533) | (1,504) | (653) | |
Consolidated Borrowers | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 6,505 | 5,739 | 4,968 | |
Operating costs and expenses: | ||||
Cost of sales | 2,312 | 1,890 | 1,610 | |
Franchise and property expenses | 518 | 489 | 515 | |
Advertising expenses and other services | 1,077 | 986 | 870 | |
General and administrative expenses | 631 | 484 | 407 | |
(Income) loss from equity method investments | 44 | 4 | 39 | |
Other operating expenses (income), net | 25 | 7 | 105 | |
Total operating costs and expenses | 4,607 | 3,860 | 3,546 | |
Income from operations | 1,898 | 1,879 | 1,422 | |
Interest expense, net | 533 | 505 | 508 | |
Loss on early extinguishment of debt | 11 | 98 | ||
Income before income taxes | 1,365 | 1,363 | 816 | |
Income tax (benefit) expense | (117) | 110 | 66 | |
Net income | 1,482 | 1,253 | 750 | |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | |
Net income | 1,482 | 1,253 | 750 | |
Net income attributable to noncontrolling interests | 3 | 4 | 2 | |
Net income attributable to common unitholders | 1,479 | 1,249 | 748 | |
Total comprehensive income (loss) | 1,533 | 1,504 | 653 | |
RBILP | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Operating costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | |
Franchise and property expenses | 0 | 0 | 0 | |
Advertising expenses and other services | 0 | 0 | 0 | |
General and administrative expenses | 0 | 0 | 0 | |
(Income) loss from equity method investments | 0 | 0 | 0 | |
Other operating expenses (income), net | 0 | 0 | 0 | |
Total operating costs and expenses | 0 | 0 | 0 | |
Income from operations | 0 | 0 | 0 | |
Interest expense, net | 0 | 0 | 0 | |
Loss on early extinguishment of debt | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | |
Income tax (benefit) expense | 0 | 0 | 0 | |
Net income | 0 | 0 | 0 | |
Equity in earnings of consolidated subsidiaries | 1,482 | 1,253 | 750 | |
Net income | 1,482 | 1,253 | 750 | |
Net income attributable to noncontrolling interests | 3 | 4 | 2 | |
Net income attributable to common unitholders | 1,479 | 1,249 | 748 | |
Total comprehensive income (loss) | 1,533 | 1,504 | 653 | |
Sales | ||||
Revenues: | ||||
Total revenues | 2,819 | 2,378 | 2,013 | |
Sales | Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Sales | Consolidated Borrowers | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 2,819 | 2,378 | 2,013 | |
Sales | RBILP | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Franchise and property revenues | ||||
Revenues: | ||||
Total revenues | 2,661 | 2,443 | 2,121 | |
Franchise and property revenues | Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 2,661 | 2,443 | 2,121 | |
Franchise and property revenues | RBILP | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Advertising revenues and other services | ||||
Revenues: | ||||
Total revenues | 1,025 | 918 | 834 | |
Advertising revenues and other services | Eliminations | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | |
Advertising revenues and other services | Consolidated Borrowers | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | 1,025 | 918 | 834 | |
Advertising revenues and other services | RBILP | Reportable Legal Entities | ||||
Revenues: | ||||
Total revenues | $ 0 | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,482 | $ 1,253 | $ 750 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 |
Depreciation and amortization | 190 | 201 | 189 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 11 | 97 |
Amortization of deferred financing costs and debt issuance discount | 28 | 27 | 26 |
(Income) loss from equity method investments | 44 | 4 | 39 |
Loss (gain) on remeasurement of foreign denominated transactions | (4) | (76) | 100 |
Net (gains) losses on derivatives | (9) | 87 | 32 |
Share-based compensation and non-cash incentive compensation expense | 136 | 102 | 84 |
Deferred income taxes | (60) | (5) | (208) |
Other | 19 | (16) | 28 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | (110) | 8 | (30) |
Inventories and prepaids and other current assets | (61) | 12 | (10) |
Accounts and drafts payable | 169 | 149 | (183) |
Other accrued liabilities and gift card liability | 37 | 67 | 6 |
Tenant inducements paid to franchisees | (26) | (20) | (22) |
Other long-term assets and liabilities | (345) | (78) | 23 |
Net cash provided by operating activities | 1,490 | 1,726 | 921 |
Cash flows from investing activities: | |||
Payments for property and equipment | (100) | (106) | (117) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 12 | 16 | 12 |
Net payments in connection with purchase of Firehouse Subs | (12) | (1,004) | 0 |
Settlement/sale of derivatives, net | 71 | 5 | 33 |
Other investing activities, net | (35) | (14) | (7) |
Net cash used for investing activities | (64) | (1,103) | (79) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 2 | 1,335 | 5,235 |
Repayments of long-term debt and finance leases | (94) | (889) | (4,708) |
Payment of financing costs | 0 | (19) | (43) |
Distributions on Class A and Partnership exchangeable units | (971) | (974) | (959) |
Repurchase of Partnership exchangeable units | 0 | 0 | (380) |
Distributions to RBI for repurchase of RBI common shares | (326) | (551) | 0 |
Capital contribution from RBI | 51 | 60 | 82 |
Distributions from subsidiaries | 0 | 0 | 0 |
(Payments) proceeds from derivatives | 34 | ||
(Payments) proceeds from derivatives | (51) | (46) | |
Other financing activities, net | (3) | (4) | (2) |
Net cash used for financing activities | (1,307) | (1,093) | (821) |
Effect of exchange rates on cash and cash equivalents | (28) | (3) | 6 |
Increase (decrease) in cash and cash equivalents | 91 | (473) | 27 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 | 1,533 |
Cash and cash equivalents at end of period | 1,178 | 1,087 | 1,560 |
Eliminations | |||
Cash flows from operating activities: | |||
Net income | (1,482) | (1,253) | (750) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 1,482 | 1,253 | 750 |
Depreciation and amortization | 0 | 0 | 0 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 0 | |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Loss (gain) on remeasurement of foreign denominated transactions | 0 | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 0 | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 | 0 |
Accounts and drafts payable | 0 | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Payments for property and equipment | 0 | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 0 | 0 | 0 |
Net payments in connection with purchase of Firehouse Subs | 0 | 0 | |
Settlement/sale of derivatives, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash used for investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 0 | 0 | 0 |
Repayments of long-term debt and finance leases | 0 | 0 | 0 |
Payment of financing costs | 0 | 0 | |
Distributions on Class A and Partnership exchangeable units | 0 | 0 | 0 |
Repurchase of Partnership exchangeable units | 0 | 0 | |
Distributions to RBI for repurchase of RBI common shares | 0 | 0 | |
Capital contribution from RBI | 0 | 0 | 0 |
Distributions from subsidiaries | 0 | 0 | 0 |
(Payments) proceeds from derivatives | 0 | ||
(Payments) proceeds from derivatives | 0 | 0 | |
Other financing activities, net | 0 | 0 | 0 |
Net cash used for financing activities | 0 | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Consolidated Borrowers | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 1,482 | 1,253 | 750 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 |
Depreciation and amortization | 190 | 201 | 189 |
Premiums paid and non-cash loss on early extinguishment of debt | 11 | 97 | |
Amortization of deferred financing costs and debt issuance discount | 28 | 27 | 26 |
(Income) loss from equity method investments | 44 | 4 | 39 |
Loss (gain) on remeasurement of foreign denominated transactions | (4) | (76) | 100 |
Net (gains) losses on derivatives | (9) | 87 | 32 |
Share-based compensation and non-cash incentive compensation expense | 136 | 102 | 84 |
Deferred income taxes | (60) | (5) | (208) |
Other | 19 | (16) | 28 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | (110) | 8 | (30) |
Inventories and prepaids and other current assets | (61) | 12 | (10) |
Accounts and drafts payable | 169 | 149 | (183) |
Other accrued liabilities and gift card liability | 37 | 67 | 6 |
Tenant inducements paid to franchisees | (26) | (20) | (22) |
Other long-term assets and liabilities | (345) | (78) | 23 |
Net cash provided by operating activities | 1,490 | 1,726 | 921 |
Cash flows from investing activities: | |||
Payments for property and equipment | (100) | (106) | (117) |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 12 | 16 | 12 |
Net payments in connection with purchase of Firehouse Subs | (12) | (1,004) | |
Settlement/sale of derivatives, net | 71 | 5 | 33 |
Other investing activities, net | (35) | (14) | (7) |
Net cash used for investing activities | (64) | (1,103) | (79) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 2 | 1,335 | 5,235 |
Repayments of long-term debt and finance leases | (94) | (889) | (4,708) |
Payment of financing costs | (19) | (43) | |
Distributions on Class A and Partnership exchangeable units | 0 | 0 | 0 |
Repurchase of Partnership exchangeable units | 0 | 0 | |
Distributions to RBI for repurchase of RBI common shares | 0 | 0 | |
Capital contribution from RBI | 51 | 60 | 82 |
Distributions from subsidiaries | (1,297) | (1,525) | (1,339) |
(Payments) proceeds from derivatives | 34 | ||
(Payments) proceeds from derivatives | (51) | (46) | |
Other financing activities, net | (3) | (4) | (2) |
Net cash used for financing activities | (1,307) | (1,093) | (821) |
Effect of exchange rates on cash and cash equivalents | (28) | (3) | 6 |
Increase (decrease) in cash and cash equivalents | 91 | (473) | 27 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 | 1,533 |
Cash and cash equivalents at end of period | 1,178 | 1,087 | 1,560 |
RBILP | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 1,482 | 1,253 | 750 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in loss (earnings) of consolidated subsidiaries | (1,482) | (1,253) | (750) |
Depreciation and amortization | 0 | 0 | 0 |
Premiums paid and non-cash loss on early extinguishment of debt | 0 | 0 | |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 | 0 |
Loss (gain) on remeasurement of foreign denominated transactions | 0 | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
Accounts and notes receivable | 0 | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 | 0 |
Accounts and drafts payable | 0 | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 | 0 |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Payments for property and equipment | 0 | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures and refranchisings | 0 | 0 | 0 |
Net payments in connection with purchase of Firehouse Subs | 0 | 0 | |
Settlement/sale of derivatives, net | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash used for investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit and long-term debt | 0 | 0 | 0 |
Repayments of long-term debt and finance leases | 0 | 0 | 0 |
Payment of financing costs | 0 | 0 | |
Distributions on Class A and Partnership exchangeable units | (971) | (974) | (959) |
Repurchase of Partnership exchangeable units | 0 | (380) | |
Distributions to RBI for repurchase of RBI common shares | (326) | (551) | |
Capital contribution from RBI | 0 | 0 | 0 |
Distributions from subsidiaries | 1,297 | 1,525 | 1,339 |
(Payments) proceeds from derivatives | 0 | ||
(Payments) proceeds from derivatives | 0 | 0 | |
Other financing activities, net | 0 | 0 | 0 |
Net cash used for financing activities | 0 | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | 12 Months Ended | |||||
Apr. 05, 2023 | Feb. 14, 2023 | Jan. 04, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share (in dollars per share) | $ 0.55 | |||||
Partnership exchangeable units | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend declared by board (in dollars per share) | $ 2.16 | $ 2.12 | $ 2.08 | |||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend paid per common share (in dollars per share) | $ 0.54 | |||||
Cash dividend declared by board (in dollars per share) | $ 0.55 | |||||
Subsequent event | Partnership exchangeable units | Restaurant Brands International Limited Partnership | ||||||
Subsequent Event [Line Items] | ||||||
Partnership exchangeable unit (in dollars per share) | $ 0.55 | $ 0.54 |