RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP, 10-Q filed on 10/24/2016
Quarterly Report
v3.5.0.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2016
Oct. 20, 2016
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
Trading Symbol QSP  
Entity Registrant Name Restaurant Brands International Limited Partnership  
Entity Central Index Key 0001618755  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Partnerships Exchangeable Units [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   227,049,533
Class A Common Units [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   202,006,067
v3.5.0.2
Condensed Consolidated Balance Sheets (unaudited) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Current assets:        
Cash and cash equivalents $ 1,228.6 $ 753.7 $ 971.7 $ 1,803.2
Trade and notes receivable, net of allowance of $14.1 million and $14.2 million, respectively 374.3 421.7    
Inventories and other current assets, net 170.8 132.2    
Advertising fund restricted assets 57.7 57.5    
Total current assets 1,831.4 1,365.1    
Property and equipment, net of accumulated depreciation of $446.6 million and $339.3 million, respectively 2,095.8 2,150.6    
Intangible assets, net 9,434.0 9,147.8    
Goodwill 4,762.0 4,574.4    
Net investment in property leased to franchisees 100.1 117.2    
Other assets, net 942.0 1,053.4    
Total assets 19,165.3 18,408.5    
Current liabilities:        
Accounts and drafts payable 352.1 361.5    
Other accrued liabilities 506.8 438.3    
Gift card liability 124.2 168.5    
Advertising fund liabilities 112.7 93.6    
Current portion of long term debt and capital leases 94.1 56.1    
Total current liabilities 1,189.9 1,118.0    
Term debt, net of current portion 8,421.3 8,462.3    
Capital leases, net of current portion 213.9 203.4    
Other liabilities, net 903.5 795.9    
Deferred income taxes, net 1,648.7 1,618.8    
Total liabilities 12,377.3 12,198.4    
Partnership preferred units; $43.775848 par value; 68,530,939 authorized, issued and outstanding at September 30, 2016 and December 31, 2015 3,297.0 3,297.0    
Partners' capital:        
Accumulated other comprehensive income (loss) (1,151.9) (1,467.8)    
Total Partners' capital 3,486.6 2,912.4    
Noncontrolling interests 4.4 0.7    
Total equity 3,491.0 2,913.1    
Total liabilities, Partnership preferred units and equity 19,165.3 18,408.5    
Class A Common Units [Member]        
Partners' capital:        
Class A common units; 202,006,067 issued and outstanding at September 30, 2016 and December 31, 2015 3,235.9 2,876.7    
Total equity 3,235.9 2,876.7    
Partnerships Exchangeable Units [Member]        
Partners' capital:        
Partnership exchangeable units; 227,049,533 issued and outstanding at September 30, 2016; 233,739,648 issued and outstanding at December 31, 2015 1,402.6 1,503.5    
Total equity $ 1,402.6 $ 1,503.5    
v3.5.0.2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Allowances for trade and notes receivable $ 14.1 $ 14.2
Property and equipment, accumulated depreciation $ 446.6 $ 339.3
Partnership preferred units, par value $ 43.775848 $ 43.775848
Partnership preferred units, authorized 68,530,939 68,530,939
Partnership preferred units, issued 68,530,939 68,530,939
Partnership preferred units; outstanding 68,530,939 68,530,939
Class A Common Units [Member]    
Class A common units, issued 202,006,067 202,006,067
Class A common units, outstanding 202,006,067 202,006,067
Partnerships Exchangeable Units [Member]    
Partnership exchangeable units, issued 227,049,533 233,739,648
Partnership exchangeable units, outstanding 227,049,533 233,739,648
v3.5.0.2
Condensed Consolidated Statements of Operations (unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues:        
Sales $ 586.4 $ 545.9 $ 1,635.5 $ 1,613.2
Franchise and property revenues 489.3 473.8 1,398.9 1,382.0
Total revenues 1,075.7 1,019.7 3,034.4 2,995.2
Cost of sales 455.0 446.6 1,279.0 1,354.6
Franchise and property expenses 111.9 114.4 330.2 365.2
Selling, general and administrative expenses 82.2 104.3 228.5 317.3
(Income) loss from equity method investments (2.6) 1.0 (16.6) 5.7
Other operating expenses (income), net 8.7 9.4 38.2 82.2
Total operating costs and expenses 655.2 675.7 1,859.3 2,125.0
Income from operations 420.5 344.0 1,175.1 870.2
Interest expense, net 117.3 116.0 349.6 362.3
(Gain) loss on early extinguishment of debt   0.4   40.0
Income before income taxes 303.2 227.6 825.5 467.9
Income tax expense 64.6 44.7 171.0 140.7
Net income 238.6 182.9 654.5 327.2
Net income attributable to noncontrolling interests (Note 12) 1.0 0.9 2.8 2.9
Partnership preferred unit distributions 67.5 67.5 202.5 203.7
Net income (loss) attributable to common unitholders / shareholders $ 170.1 $ 114.5 $ 449.2 $ 120.6
Weighted average units outstanding - basic and diluted (Note 4)        
Weighted average units outstanding - basic and diluted 429.1 467.0 430.0 467.0
Class A Common Units [Member]        
Revenues:        
Net income     $ 329.4  
Partnership preferred unit distributions     102.2  
Net income (loss) attributable to common unitholders / shareholders $ 86.3 $ 49.6 $ 227.2 $ 52.2
Earnings per unit - basic and diluted (Note 4)        
Earnings per unit - basic and diluted $ 0.43 $ 0.25 $ 1.12 $ 0.26
Weighted average units outstanding - basic and diluted (Note 4)        
Weighted average units outstanding - basic and diluted 202.0 202.0 202.0 202.0
Distributions per unit        
Distributions per unit $ 0.19 $ 0.12 $ 0.52 $ 0.31
Partnerships Exchangeable Units [Member]        
Revenues:        
Net income     $ 322.3  
Partnership preferred unit distributions     100.3  
Net income (loss) attributable to common unitholders / shareholders $ 83.8 $ 64.9 $ 222.0 $ 68.4
Earnings per unit - basic and diluted (Note 4)        
Earnings per unit - basic and diluted $ 0.37 $ 0.25 $ 0.97 $ 0.26
Weighted average units outstanding - basic and diluted (Note 4)        
Weighted average units outstanding - basic and diluted 227.1 265.0 228.0 265.0
Distributions per unit        
Distributions per unit $ 0.16 $ 0.12 $ 0.45 $ 0.31
v3.5.0.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]        
Net income $ 238.6 $ 182.9 $ 654.5 $ 327.2
Foreign currency translation adjustment (131.7) (644.8) 538.8 (1,543.5)
Net change in fair value of net investment hedges, net of tax of $(2.7), $(51.8), $25.9 and $(94.6) 17.4 345.9 (173.7) 572.0
Net change in fair value of cash flow hedges, net of tax of $(0.7), $11.8, $20.7 and $33.1 2.4 (33.6) (58.6) (92.6)
Amounts reclassified to earnings of cash flow hedges, net of tax of $(1.9), $0, $(3.7) and $(7.3) 5.4 0.2 10.5 19.2
Pension and post-retirement benefit plans, net of tax of $0, $0, $0 and $0.1       (0.1)
Amortization of prior service (credits) costs, net of tax of $0.3, $0.3, $0.9 and $0.8 (0.4) (0.4) (1.3) (1.3)
Amortization of actuarial (gains) losses, net of tax of $0, $(0.3), $(0.1) and $(0.8) 0.1 0.4 0.2 1.3
Other comprehensive income (loss) (106.8) (332.3) 315.9 (1,045.0)
Comprehensive income (loss) 131.8 (149.4) 970.4 (717.8)
Comprehensive income (loss) attributable to noncontrolling interests 1.0 0.9 2.8 2.9
Comprehensive income attributable to preferred unitholders 67.5 67.5 202.5 203.7
Comprehensive income (loss) attributable to common unitholders $ 63.3 $ (217.8) $ 765.1 $ (924.4)
v3.5.0.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]        
Tax effect on change in fair value of investment hedges $ 2.7 $ (51.8) $ 25.9 $ (94.6)
Tax effect on change in fair value of interest rate caps/swaps (0.7) 11.8 20.7 33.1
Tax effect on amounts reclassified to earnings of cash flow hedges (1.9) 0.0 (3.7) (7.3)
Tax effect on pension and post-retirement benefit plans 0.0 0.0 0.0 0.1
Tax effect on amortization prior service costs 0.3 0.3 0.9 0.8
Tax effect on amortization of actuarial (gain) loss $ 0.0 $ (0.3) $ (0.1) $ (0.8)
v3.5.0.2
Condensed Consolidated Statement of Equity (unaudited) - 9 months ended Sep. 30, 2016 - USD ($)
$ in Millions
Total
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interest [Member]
Class A Common Units [Member]
Partnerships Exchangeable Units [Member]
Beginning Balance at Dec. 31, 2015 $ 2,913.1 $ (1,467.8) $ 0.7 $ 2,876.7 $ 1,503.5
Beginning Balance, shares at Dec. 31, 2015       202,006,067  
Beginning Balance, shares at Dec. 31, 2015         233,739,648
Distributions declared on Class A common units (105.0)     $ (105.0)  
Distributions declared on partnership exchangeable units (102.3)       $ (102.3)
Preferred unit distributions $ (202.5)     (102.2) (100.3)
Exchange of Partnership exchangeable units for RBI common shares       220.6 $ (220.6)
Exchange of Partnership exchange units for RBI common shares, shares (6,690,115)       (6,690,115)
Capital contribution from RBI Inc. $ 44.9     44.9  
Distribution to RBI Inc. (28.5)     (28.5)  
Restaurant VIE contributions 0.9   0.9    
Net income 654.5   2.8 329.4 $ 322.3
Other comprehensive income (loss) 315.9 315.9      
Ending Balance at Sep. 30, 2016 $ 3,491.0 $ (1,151.9) $ 4.4 $ 3,235.9 $ 1,402.6
Ending Balance, shares at Sep. 30, 2016       202,006,067  
Ending Balance, shares at Sep. 30, 2016         227,049,533
v3.5.0.2
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net income $ 654.5 $ 327.2
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 129.0 137.8
(Gain) loss on early extinguishment of debt   40.0
Amortization of deferred financing costs and debt issuance discount 29.1 25.0
(Income) loss from equity method investments (16.6) 5.7
Loss (gain) on remeasurement of foreign denominated transactions 16.1 31.1
Amortization of defined benefit pension and postretirement items (1.9)  
Net losses (gains) on derivatives 15.3 50.1
Net losses (gains) on refranchisings and dispositions of assets 10.0 (5.8)
Bad debt expense (recoveries), net (0.1) 0.9
Share-based compensation expense 25.9 36.9
Acquisition accounting impact on cost of sales   0.5
Deferred income taxes 34.6 (114.8)
Changes in current assets and liabilities, excluding acquisitions and dispositions:    
Reclassification of restricted cash to cash and cash equivalents   79.2
Trade and notes receivable 20.0 35.4
Inventories and other current assets (3.0) (5.1)
Accounts and drafts payable 11.8 138.8
Accrued advertising 4.0 29.8
Other accrued liabilities (23.8) 172.2
Other long-term assets and liabilities 0.9 (34.5)
Net cash provided by operating activities 905.8 950.4
Cash flows from investing activities:    
Payments for property and equipment (18.2) (82.9)
Proceeds from refranchisings, disposition of assets and restaurant closures 18.1 16.9
Return of investment on direct financing leases 12.5 12.1
Settlement of derivatives, net 4.9 11.8
Other investing activities, net 2.0 2.1
Net cash provided by (used for) investing activities 19.3 (40.0)
Cash flows from financing activities:    
Proceeds from Senior Notes   1,250.0
Repayments of term debt, Tim Hortons Notes and capital leases (52.7) (2,610.6)
Payment of financing costs   (81.3)
Distributions on partnership units (396.9) (238.8)
Capital contribution from RBI Inc. 12.5  
Distributions to RBI Inc. (28.5) (0.1)
Other financing activities, net 0.8 (3.9)
Net cash provided by (used for) financing activities (464.8) (1,684.7)
Effect of exchange rates on cash and cash equivalents 14.6 (57.2)
Increase (decrease) in cash and cash equivalents 474.9 (831.5)
Cash and cash equivalents at beginning of period 753.7 1,803.2
Cash and cash equivalents at end of period 1,228.6 971.7
Supplemental cashflow disclosures:    
Interest paid 285.9 285.8
Income taxes paid 93.3 91.8
Non-cash investing and financing activities:    
Acquisition of property with capital lease obligations $ 22.5 $ 10.4
v3.5.0.2
Description of Business and Organization
 9 Months Ended
Sep. 30, 2016
Accounting Policies [Abstract]  
Description of Business and Organization

Note 1. Description of Business and Organization

Description of Business

Restaurant Brands International Limited Partnership (“Partnership,” “we,” “us” or “our”) was formed on August 25, 2014 as a general partnership and was registered on October 27, 2014 as a limited partnership in accordance with the laws of the Province of Ontario. Pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended, Partnership is a successor issuer to Burger King Worldwide, Inc. Partnership is the indirect parent of The TDL Group Corp. (f/k/a Tim Hortons ULC and Tim Hortons Inc.), a limited company existing under the laws of British Columbia that franchises and operates quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons® brand (“Tim Hortons” or “TH”), and Burger King Worldwide, Inc., a Delaware corporation that franchises and operates fast food hamburger restaurants principally under the Burger King® brand (“Burger King Worldwide”, “Burger King” or “BK”). On December 12, 2014, a series of transactions (the “Transactions”) were completed resulting in Burger King Worldwide and Tim Hortons becoming indirect subsidiaries of Partnership. We are one of the world’s largest quick service restaurant, or QSR, chains as measured by total number of restaurants. As of September 30, 2016, we franchised or owned 4,492 Tim Hortons restaurants and 15,243 Burger King restaurants, for a total of 19,735 restaurants, in more than 100 countries and U.S. territories worldwide. Approximately 100% of current Tim Hortons and Burger King system-wide restaurants are franchised.

We are a limited partnership organized under the laws of Ontario, Canada and a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner. As our general partner, 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. There is no board of directors of Partnership. RBI has established a conflicts committee composed entirely of “independent directors” (as such term is defined in the partnership agreement) in order to consent to, approve or direct various enumerated actions on behalf of RBI (in its capacity as our general partner) in accordance with the terms of the partnership agreement.

All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “C$” or “Canadian dollars” are to the currency of Canada unless otherwise indicated.
v3.5.0.2
Basis of Presentation and Consolidation
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Consolidation

Note 2. Basis of Presentation and Consolidation

We have prepared the accompanying unaudited condensed consolidated financial statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 26, 2016.

The Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries. We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. All material intercompany balances and transactions have been eliminated in consolidation. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method.

We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our most significant variable interests are in entities that operate restaurants under our subsidiaries’ franchise arrangements and certain equity method investees that operate as master franchisees. Our maximum exposure to loss resulting from involvement with potential VIEs is attributable to trade and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable.

 

We do not have any ownership interests in our franchisees’ businesses, except for investments in various entities that are accounted for under the equity method. 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. Tim Hortons previously also entered into interest-free financing in connection with a Franchise Incentive Program (“FIP”) with certain U.S. restaurant owners whereby restaurant owners finance the initial franchise fee and purchase of restaurant assets. In both operator and FIP arrangements, 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”). Additionally, Tim Hortons participates in advertising funds which, on behalf of Tim Hortons Company and franchise restaurants, collect contributions and administer funds for advertising and promotional programs. Tim Hortons is the sole shareholder (Canada) and sole member (U.S.) in these funds, and is the primary beneficiary of these funds (the “Advertising VIEs”). As Burger King franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our Financial Statements and notes to the Financial Statements. Management adjusts such estimates and assumptions when facts and circumstances dictate. Such estimates and assumptions may be affected by volatile credit, equity, foreign currency, energy markets and declines in consumer spending. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Certain prior year amounts in the accompanying Financial Statements and notes to the Financial Statements have been reclassified in order to be comparable with the current year classifications. These reclassifications had no effect on previously reported net income.
v3.5.0.2
New Accounting Pronouncements
 9 Months Ended
Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
New Accounting Pronouncements

Note 3. New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that amended accounting guidance on revenue recognition. In August 2015, the FASB deferred adoption of the new standard by one year. Several updates have been issued since to clarify the implementation guidance including, on principal versus agent considerations and on performance obligations and licensing. The new standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is allowed as of the original effective date, which is for fiscal years, and interim periods within those years, beginning after December 15, 2016. The accounting standards update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the impact of this accounting standards update on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the accounting standards update on our ongoing financial reporting.

In February 2016, the FASB issued an accounting standards update which sets out the principles for the recognition, measurement, presentation and disclosure of leases applicable to both lessors and lessees. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact that the adoption of this accounting standards update will have on our financial statements, but we expect this new guidance will have a material impact on our consolidated financial statements since the Company has a significant number of operating lease arrangements for which it is the lessee and others for which it is the lessor.

In March 2016, the FASB issued an accounting standards update that clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under existing accounting guidance does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. Amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments can be applied either prospectively or retrospectively on a modified basis. We do not expect the adoption of this new guidance to have a material impact on our consolidated financial statements.

 

In March 2016, the FASB issued an accounting standards update that amends certain aspects of the equity method of accounting. Amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. We do not expect the adoption of this new guidance to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions. Amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We expect this new guidance to have an impact on our consolidated financial statements since the Company has share-based compensation arrangements. We are currently evaluating the impact that the adoption of this accounting standards update will have on our financial statements.

In August 2016, the FASB issued an accounting standards update to reduce the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. We are currently evaluating the impact that the adoption of this accounting standards update will have on our financial statements.
v3.5.0.2
Earnings (Loss) Per Unit
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Earnings (Loss) Per Unit

Note 4. Earnings (Loss) 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 Partnership’s Class A common units (“Class A common units”) is entitled to receive distributions from Partnership in an amount per Class A common unit equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Partnership’s Class B exchangeable limited partnership units (“Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per Partnership exchangeable 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 and Partnership preferred unit distributions. 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.

The holders of Partnership exchangeable units each have the right to require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units on a one-for-one basis for RBI common shares, subject to RBI’s right as the general partner of Partnership, at RBI’s sole discretion, to deliver a cash payment in lieu of RBI common shares. The allocation of net income attributable to common unitholders between Class A common units and Partnership exchangeable units is affected by the exchange of Partnership exchangeable units.

Since all stock options were issued by RBI, there are no dilutive securities for Partnership as the exercise of stock options will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Class A common units and Partnership exchangeable units.

 

The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts):

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2016      2015      2016      2015  

Allocation of net income among partner interests:

            

Net income allocated to Class A common unitholders

    $ 86.3       $ 49.6       $ 227.2       $ 52.2   

Net income allocated to Partnership exchangeable unitholders

      83.8         64.9         222.0         68.4   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income attributable to common unitholders

    $ 170.1       $ 114.5       $ 449.2       $ 120.6   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic and diluted partnership units:

            

Weighted average Class A common units

      202.0         202.0         202.0         202.0   

Weighted average Partnership exchangeable units

      227.1         265.0         228.0         265.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total weighted average basic and diluted units outstanding

      429.1         467.0         430.0         467.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings per unit - basic and diluted:

            

Class A common units

    $ 0.43       $ 0.25       $ 1.12       $ 0.26   

Partnership exchangeable units

    $ 0.37       $ 0.25       $ 0.97       $ 0.26   
v3.5.0.2
Inventories and Other Current Assets, net
 9 Months Ended
Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Inventories and Other Current Assets, net

Note 5. Inventories and Other Current Assets, net

Inventories and other current assets, net consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Raw materials

    $ 29.0       $ 22.7   

Finished goods

      56.2         58.6   
  

 

 

     

 

 

  

Total inventory

      85.2         81.3   

Refundable and prepaid income taxes

      51.7         21.5   

Prepaids and other current assets

      33.9         29.4   
  

 

 

     

 

 

  

Inventories and other current assets, net

    $ 170.8       $ 132.2   
  

 

 

     

 

 

  

v3.5.0.2
Intangible Assets, net and Goodwill
 9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill

Note 6. Intangible Assets, net and Goodwill

Intangible assets, net and goodwill consist of the following (in millions):

 

     As of  
     September 30, 2016      December 31, 2015  
     Gross      Accumulated
Amortization		     Net      Gross      Accumulated
Amortization		     Net  

Identifiable assets subject to amortization:

                

Franchise agreements

    $ 665.7       $ (128.4 )    $ 537.3       $ 653.0       $ (106.8 )    $ 546.2   

Favorable leases

      444.6         (142.0 )      302.6         436.5         (107.5 )      329.0   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      1,110.3         (270.4 )      839.9         1,089.5         (214.3 )      875.2   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Indefinite lived intangible assets:

                

Tim Hortons brand

    $ 6,476.1       $ —        $ 6,476.1       $ 6,175.4       $ —        $ 6,175.4   

Burger King brand

      2,118.0         —          2,118.0         2,097.2         —          2,097.2   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      8,594.1         —          8,594.1         8,272.6         —          8,272.6   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Intangible assets, net

         $ 9,434.0            $ 9,147.8   
       

 

 

          

 

 

  

Goodwill

    $ 4,762.0            $ 4,574.4        

We recorded amortization expense on intangible assets of $18.1 million for the three months ended September 30, 2016 and $19.2 million for the same period in the prior year. We recorded amortization expense on intangible assets of $54.2 million for the nine months ended September 30, 2016 and $58.8 million for the same period in the prior year. The change in the brands and goodwill balances during the nine months ended September 30, 2016 was due to the impact of foreign currency translation.

 
v3.5.0.2
Other Assets, net
 9 Months Ended
Sep. 30, 2016
Investments, All Other Investments [Abstract]  
Other Assets, net

Note 7. Other Assets, net

Other assets, net consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Derivative assets

    $ 672.1       $ 830.9   

Equity method investments

      152.8         139.0   

Other assets

      117.1         83.5   
  

 

 

     

 

 

  

Other assets, net

    $ 942.0       $ 1,053.4   
  

 

 

     

 

 

  

v3.5.0.2
Equity Method Investments
 9 Months Ended
Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments

Note 8. Equity Method Investments

The aggregate carrying amount of our equity method investments was $152.8 million as of September 30, 2016 and $139.0 million as of December 31, 2015 and is included as a component of other assets, net in our condensed consolidated balance sheets. Below are the names of the entities, country of operation and our equity interest in our significant equity method investments based on the carrying value as of September 30, 2016.

 

Entity

    Country    Equity
Interest		  

TIMWEN Partnership

    Canada      50.00 % 

Carrols Restaurant Group, Inc.

    United States      20.81 % 

Pangaea Foods (China) Holdings, Ltd.

    China      27.50 % 

With respect to our TH business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. During the three months ended September 30, 2016, TH received $2.7 million in cash distributions and recognized $5.1 million of contingent rent expense associated with this joint venture. During the nine months ended September 30, 2016, TH received $8.3 million in cash distributions and recognized $14.7 million of contingent rent expense associated with this joint venture.

The aggregate market value of our equity interest in Carrols Restaurant Group, Inc., based on the quoted market price on September 30, 2016, is approximately $124.4 million. No quoted market prices are available for our remaining equity method investments.

With respect to our BK operations, most of the entities in which we have an equity interest own or franchise BK restaurants. Franchise and property revenue we recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
         2016              2015              2016              2015      

Revenues from affiliates:

            

Franchise royalties

    $ 34.9       $ 23.0       $ 94.2       $ 67.3   

Property revenues

      6.9         6.7         21.1         20.9   

Franchise fees and other revenue

      6.8         2.4         14.7         5.8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 48.6       $ 32.1       $ 130.0       $ 94.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

At September 30, 2016 and December 31, 2015, we had $20.0 million and $23.9 million, respectively, of accounts receivable from our equity method investments which were recorded in trade and notes receivable, net in our condensed consolidated balance sheets.

(Income) loss from equity method investments reflects our share of investee net income or loss, non-cash dilution gains or losses from changes in our ownership interests in equity method investees and basis difference amortization. We recorded increases to the carrying value of our investment balances and non-cash dilution gains in the amounts of $11.6 million during the nine months ended September 30, 2016 and $10.9 million during the nine months ended September 30, 2015. The dilution gains resulted from the issuance of capital stock by Burger King France SAS (“France JV”) during the nine months ended September 30, 2016 and BK Brasil Operacao E Assesoria A Restaurantes S.A. (“Brazil JV”) during the nine months ended September 30, 2015, which reduced our ownership interests in these equity method investments. The dilution gains we recorded in connection with the issuance of capital stock by the France JV and Brazil JV reflect adjustments to the differences between the amount of underlying equity in the net assets of equity method investees before and after their issuances of capital stock.
v3.5.0.2
Other Accrued Liabilities and Other Liabilities, net
 9 Months Ended
Sep. 30, 2016
Other Liabilities Disclosure [Abstract]  
Other Accrued Liabilities and Other Liabilities, net

Note 9. Other Accrued Liabilities and Other Liabilities, net

Other accrued liabilities (current) and other liabilities, net (noncurrent) consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Current:

      

Dividend payable

    $ 141.3       $ 128.3   

Interest payable

      82.6         63.1   

Accrued compensation and benefits

      46.2         61.6   

Taxes payable - current

      79.3         46.9   

Deferred income - current

      48.6         33.5   

Closed property reserve

      10.1         14.0   

Restructuring and other provisions

      8.4         13.5   

Derivatives liabilities - current

      3.4         —     

Other

      86.9         77.4   
  

 

 

     

 

 

  

Other accrued liabilities

    $ 506.8       $ 438.3   
  

 

 

     

 

 

  

Noncurrent:

      

Unfavorable leases

    $ 292.1       $ 322.0   

Taxes payable - noncurrent

      256.2         236.7   

Accrued pension

      77.9         80.2   

Derivatives liabilities - noncurrent

      164.6         47.3   

Lease liability - noncurrent

      28.5         29.5   

Deferred income - noncurrent

      27.6         23.7   

Other

      56.6         56.5   
  

 

 

     

 

 

  

Other liabilities, net

    $ 903.5       $ 795.9   
  

 

 

     

 

 
v3.5.0.2
Long-Term Debt
 9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Long-Term Debt

Note 10. Long-Term Debt

Long-term debt consists of the following (in millions):

 

            As of  
            September 30,     December 31,  
     Maturity dates      2016     2015  

Term Loan Facility

      December 12, 2021       $ 5,059.0      $ 5,097.7   

2015 Senior Notes

      January 15, 2022         1,250.0        1,250.0   

2014 Senior Notes

      April 1, 2022         2,250.0        2,250.0   

Tim Hortons Notes

      various         41.6        39.4   

Other

      N/A         92.6        88.5   

Less: unamortized discount and deferred financing costs

         (196.5 )      (224.3 ) 
     

 

 

    

 

 

  

Total debt, net

         8,496.7        8,501.3   

Less: current maturities of debt

         (75.4 )      (39.0 ) 
     

 

 

    

 

 

  

Total long-term debt

       $ 8,421.3      $ 8,462.3   
     

 

 

    

 

 

  

As of September 30, 2016 and December 31, 2015, unamortized discount included $37.6 million and $43.2 million, respectively, related to our secured term loans (the “Term Loan Facility”) under our credit agreement dated May 22, 2015 (the “2015 Amended Credit Agreement”).

As of September 30, 2016, deferred financing costs included $114.4 million related to the Term Loan Facility, $7.8 million related to the first lien senior secured notes (the “2015 Senior Notes”) and $36.7 million related to the second lien senior secured notes (the “2014 Senior Notes”). As of December 31, 2015, deferred financing costs included $131.3 million related to the Term Loan Facility, $9.0 million related to the 2015 Senior Notes and $40.8 million related to the 2014 Senior Notes. Deferred financing costs are amortized over the term of the debt into interest expense using the effective interest method. The amortization of deferred financing costs included in interest expense, net was $7.9 million for the three months ended September 30, 2016 and $7.6 million for the three months ended September 30, 2015. The amortization of deferred financing costs included in interest expense, net was $23.5 million for the nine months ended September 30, 2016 and $18.7 million for the nine months ended September 30, 2015.

Revolving Credit Facility

As of September 30, 2016, we had no amounts outstanding under the revolving credit facility available under the 2015 Amended Credit Agreement (the “Revolving Credit Facility”). Funds available under the Revolving Credit Facility may be used to repay other debt, to finance debt or share repurchases, to fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125.0 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability under this facility by the cumulative amount of outstanding letters of credit. As of September 30, 2016, we had $1.5 million of letters of credit issued against the Revolving Credit Facility and our borrowing availability was $498.5 million.

 

Interest Expense, net

Interest expense, net consists of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Term Loan Facility

    $ 54.6       $ 52.6       $ 160.5       $ 197.8   

2015 Senior Notes

      14.5         14.4         43.4         20.7   

2014 Senior Notes

      33.8         33.8         101.3         101.3   

Tim Hortons Notes

      0.4         0.4         1.1         2.8   

Amortization of deferred financing costs and debt issuance discount

      9.8         9.7         29.1         25.0   

Capital lease obligations

      5.2         5.3         15.0         15.7   

Other

      0.3         0.7         2.0         2.3   

Interest income

      (1.3 )       (0.9 )       (2.8 )       (3.3 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense, net

    $ 117.3       $ 116.0       $ 349.6       $ 362.3   
  

 

 

     

 

 

     

 

 

     

 

 

  

v3.5.0.2
Income Taxes
 9 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11. Income Taxes

Our effective tax rate was 21.3% and 20.7% for the three and nine months ended September 30, 2016, respectively. The effective tax rate during these periods was primarily a result of the mix of income from multiple tax jurisdictions, partially offset by the favorable impact from intercompany financing.

Our effective tax rate was 19.6% and 30.1% for the three and nine months ended September 30, 2015, respectively. The effective tax rate during these periods was primarily a result of the mix of income from multiple tax jurisdictions and the revaluation of certain monetary assets and liabilities due to changes in foreign currency exchange rates, partially offset by the favorable impact from a restructuring of certain legal entities.
v3.5.0.2
Equity
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Equity

Note 12. Equity

Pursuant to the terms of the partnership agreement, RBI, as the holder of all 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 Partnership exchangeable units are entitled to receive distributions from Partnership in an amount per Partnership exchangeable unit equal to the dividend payable by RBI on each RBI common share. Additionally, if RBI proposes to redeem, repurchase or otherwise acquire any RBI common shares, the partnership agreement requires that Partnership, immediately prior to such redemption, repurchase or acquisition, make a distribution to RBI on the Class A common units in an amount sufficient for RBI to fund such redemption, repurchase or acquisition, as the case may be.

Each holder of a Partnership exchangeable unit is entitled to vote in respect of matters on which holders of RBI common shares are entitled to vote through one special voting share of RBI. Since December 12, 2015, the one year anniversary of the effective date of the Transactions, each 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 RBI 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 RBI 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 the nine months ended September 30, 2016, Partnership exchanged 6,690,115 Partnership exchangeable units pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of newly issued RBI common shares. The exchanges represented increases in RBI’s ownership interest in Partnership and were accounted for as equity transactions, with no gain or loss recorded in the condensed consolidated statement of operations. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit is automatically deemed cancelled concurrently with such exchange.

Noncontrolling Interests

The noncontrolling interest recognized in connection with the Restaurant VIEs of Tim Hortons was $4.4 million and $0.7 million at September 30, 2016 and December 31, 2015, respectively.

We adjust net income (loss) in our condensed consolidated statements of operations to exclude the noncontrolling interests’ proportionate share of results of operations. Also, we present the proportionate share of equity attributable to the noncontrolling interests as a separate component of equity within our condensed consolidated balance sheets.

Distributions Declared

As described above, the partnership agreement requires Partnership to make distributions to RBI as the holder of all of the Class A common units in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares. Additionally, the partnership agreement requires Partnership to make distributions to holders of Partnership exchangeable units in an amount per Partnership exchangeable unit equal to the dividend payable by RBI on each RBI common share. The terms of the Class A 9.0% cumulative compounding perpetual voting preferred shares of RBI (the “Preferred Shares”) and the 2015 Amended Credit Agreement, 2015 Senior Notes Indenture, 2014 Senior Notes Indenture and applicable Canadian law limit RBI’s ability to pay cash dividends in certain circumstances.

Accumulated Other Comprehensive Income (Loss)

The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions):

 

     Derivatives     Pensions     Foreign Currency
Translation		     AOCI  

Balances at December 31, 2015

    $ 637.0      $ (24.7 )    $ (2,080.1 )    $ (1,467.8 ) 

Foreign currency translation adjustment

      —          —          538.8        538.8   

Net change in fair value of derivatives, net of tax

      (232.3 )      —          —          (232.3 ) 

Amounts reclassified to earnings of cash flow hedges, net of tax

      10.5        —          —          10.5   

Amortization of prior service (credits) costs, net of tax

      —          (1.3 )      —          (1.3 ) 

Amortization of actuarial (gains) losses, net of tax

      —          0.2        —          0.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balances at September 30, 2016

    $ 415.2      $ (25.8 )    $ (1,541.3 )    $ (1,151.9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table displays the reclassifications out of AOCI (in millions):

 

        Amounts Reclassified from AOCI  
   

 

Affected Line Item in the

   Three Months Ended
September 30,		     Nine Months Ended
September 30,		  

Details about AOCI Components

  

Statements of Operations

       2016             2015             2016             2015      

Gains (losses) on cash flow hedges:

          

Interest rate derivative contracts

   Interest expense, net   $ (5.9 )    $ (3.5 )    $ (15.3 )    $ (8.5 ) 

Interest rate derivative contracts

   Other operating expenses (income), net     —          —          —          (27.6 ) 

Forward-currency contracts

   Cost of sales     (1.4 )      3.3        1.1        9.6   
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Total before tax

     (7.3 )      (0.2 )      (14.2 )      (26.5 ) 
 

Income tax (expense) benefit

     1.9        —          3.7        7.3   
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Net of tax

   $ (5.4 )    $ (0.2 )    $ (10.5 )    $ (19.2 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Defined benefit pension:

          

Amortization of prior service credits (costs)

   SG&A (a)     0.7        0.8        2.2        2.2   

Amortization of actuarial gains (losses)

   SG&A (a)     (0.1 )      (0.7 )      (0.3 )      (2.1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Total before tax

     0.6        0.1        1.9        0.1   
 

Income tax (expense) benefit

     (0.3 )      (0.1 )      (0.8 )      (0.1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Net of tax

   $ 0.3      $ —        $ 1.1      $ —     
   

 

 

    

 

 

    

 

 

    

 

 

  

Total reclassifications

   Net of tax   $ (5.1 )    $ (0.2 )    $ (9.4 )    $ (19.2 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations.
v3.5.0.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 13. Fair Value Measurements

The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments and derivatives designated as net investment hedges, as well as their location on our condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 (in millions):

 

         Fair Value Measurements      Fair Value Measurements  
         at September 30, 2016      at December 31, 2015  
   

Balance Sheet Location

        (Level 2)              Total              (Level 2)              Total      
Assets:              

Derivatives designated as cash flow hedges

              

Foreign currency

   Trade and notes receivable, net    $ 1.1       $ 1.1       $ 6.6       $ 6.6   

Derivatives designated as net investment hedges

              

Foreign currency

   Other assets, net      672.1         672.1         830.9         830.9   
    

 

 

     

 

 

     

 

 

     

 

 

  

Total assets at fair value

      $ 673.2       $ 673.2       $ 837.5       $ 837.5   
    

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:              

Derivatives designated as cash flow hedges

              

Interest rate

   Other liabilities, net    $ 106.7       $ 106.7       $ 40.9       $ 40.9   

Foreign currency

   Other accrued liabilities      3.4         3.4         —           —     

Derivatives designated as net investment hedges

              

Foreign currency

   Other liabilities, net      57.9         57.9         6.3         6.3   
    

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities at fair value

      $ 168.0       $ 168.0       $ 47.2       $ 47.2   
    

 

 

     

 

 

     

 

 

     

 

 

  

Our derivatives are valued using a discounted cash flow analysis that incorporates observable market parameters, such as interest rate yield curves and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by us or the counterparty.

At September 30, 2016, the fair value of our variable rate term debt and bonds was estimated at $8.8 billion, compared to a principal carrying amount of $8.6 billion. At December 31, 2015, the fair value of our variable rate term debt and bonds was estimated at $8.7 billion, compared to a principal carrying amount of $8.6 billion. The fair value of our variable rate term debt and bonds was estimated using inputs based on bid and offer prices and are Level 2 inputs within the fair value hierarchy.

Certain nonfinancial assets and liabilities are measured at fair value on a non-recurring basis. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to periodic impairment tests. These items primarily include long-lived assets, goodwill, the Tim Hortons brand, theBurger King brand and other intangible assets.
v3.5.0.2
Derivative Instruments
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments

Note 14. Derivative Instruments

Disclosures about Derivative Instruments and Hedging Activities

We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges, derivatives designated as net investment hedges and those utilized as economic hedges. We use derivatives to manage exposure to fluctuations in interest rates and currency exchange rates. See Note 13 for fair value measurements of our derivative instruments.

Interest Rate Swaps – Outstanding as of September 30, 2016

During May 2015, we entered into a series of receive-variable, pay-fixed interest rate swaps to hedge the variability in the interest payments on $2,500.0 million of our Term Loan Facility beginning May 28, 2015, through the expiration of the final swap on March 31, 2021. The notional value of the swaps is $2,500.0 million. There are six sequential interest rate swaps to achieve the hedged position. Each year on March 31, the existing interest rate swap is scheduled to expire and be immediately replaced with a new interest rate swap until the expiration of the final swap on March 31, 2021. At inception, these interest rate swaps were designated as a cash flow hedge for hedge accounting, and as such, the effective portion of unrealized changes in market value are recorded in AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Interest Rate Swaps – Settled During 2015

The following derivative instruments were settled during May 2015. During November 2014, we entered into a series of receive-variable, pay-fixed interest rate swaps to hedge the variability in the interest payments associated with our Term Loan Facility beginning April 1, 2015, through the expiration of the final swap on March 31, 2021. The initial notional value of the swaps was $6,733.1 million, which initially aligned with the outstanding principal balance of the Term Loan Facility as of April 1, 2015, and was to be reduced quarterly in accordance with the principal repayments of the Term Loan Facility. There were six sequential interest rate swaps to achieve the hedged position. Each year on March 31, the existing interest rate swap was scheduled to expire and be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. At inception, these interest rate swaps were designated as a cash flow hedge for hedge accounting, and as such, the effective portion of unrealized changes in market value were recorded in AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Gains and losses from hedge ineffectiveness were recognized in earnings. During the first quarter of 2015, we temporarily discontinued hedge accounting on the entire balance of these interest rate swaps as a result of a $42.7 million mandatory prepayment of our Term Loan Facility as well as changes to forecasted cash flows, and settled $42.7 million of these instruments equal to the amount of the mandatory prepayment of our Term Loan Facility. During this same period, of the remaining $6,690.4 million of notional outstanding, we re-designated $5,690.4 million of notional amount as a cash flow hedge for hedge accounting and $1,000.0 million of notional amount was not designated for hedge accounting and as such changes in fair value on this portion of the interest rate swaps were recognized in earnings. During April 2015, in order to offset the cash flows associated with our $1,000.0 million notional value receive-variable, pay-fixed interest rate swap that was not designated for hedge accounting, we entered into a pay-variable, receive-fixed mirror interest rate swap with a notional value of $1,000.0 million and a maturity date of March 31, 2021.

The following derivative instruments were also settled during May 2015. During October 2014, we entered into a series of receive-variable, pay-fixed interest rate swaps with a combined initial notional value of $6,750.0 million that was amortized each quarter at the same rate of the Term Loan Facility. To offset the cash flows associated with these interest rate swaps, in November 2014 we entered into a series of receive-fixed, pay-variable mirror interest rate swaps with a combined initial notional value of $6,750.0 million that was amortized each quarter at the same rate of the Term Loan Facility. For all of these derivative instruments, each year on March 31, the existing interest rate swap was scheduled to expire and be immediately replaced with a new interest rate swap until the expiration of the arrangement on March 31, 2021. These interest rate swaps were not designated for hedge accounting and as such changes in fair value were recognized in earnings.

In connection with the interest rate swaps settled during May 2015, we paid $36.2 million, which is reflected as a use of cash from investing activities in the condensed consolidated statement of cash flows for the nine months ended September 30, 2015. The net unrealized loss remaining in AOCI totaled $84.6 million at the date of settlement and is being reclassified into interest expense, net as the original hedged forecasted transaction affects earnings. The amount of pre-tax losses in AOCI as of September 30, 2016 that we expect to be reclassified into interest expense within the next 12 months is $12.5 million.

 

Cross-Currency Rate Swaps

To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we may, from time to time, hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. We have designated cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically offset by movements in the fair value of our cross currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations.

At September 30, 2016, we had outstanding cross-currency rate swaps in which we pay quarterly between 4.802% and 7.002% on a tiered payment structure per annum on the Canadian dollar notional amount of C$5,641.7 million and receive quarterly between 3.948% and 6.525% on a tiered payment structure per annum on the U.S. dollar notional amount of $5,000.0 million through the maturity date of March 31, 2021. At inception, these derivative instruments were not designated for hedge accounting and, as such, changes in fair value were initially recognized in earnings. Beginning with the closing of the Transactions on December 12, 2014, we designated these cross-currency rate swaps as hedges and began accounting for these derivative instruments as net investment hedges.

At September 30, 2016, we also had outstanding a cross-currency rate swap in which we pay quarterly fixed-rate interest payments on the Euro notional amount of €1,107.8 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $1,200.0 million through the maturity date of March 31, 2021. At inception, this cross-currency rate swap was designated as a hedge and is accounted for as a net investment hedge.

During the nine months ended September 30, 2015, we terminated our cross-currency rate swaps entered into prior to the Transactions with an aggregate notional value of $315.0 million. In connection with this termination, we received $52.1 million, which is reflected as a source of cash provided by investing activities in the condensed consolidated statement of cash flows for the nine months ended September 30, 2015. The net unrealized gains totaled $31.8 million as of the termination date. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At inception, these cross-currency rate swaps were designated as a hedge and were accounted for as net investment hedges. A total notional value of $115.0 million of these swaps were contracts to exchange quarterly fixed-rate interest payments we make in Euros for quarterly fixed-rate interest payments we receive in U.S. dollars and had an original maturity of October 19, 2016. A total notional value of $200.0 million of these swaps were contracts to exchange quarterly floating-rate interest payments we make in Euros based on EURIBOR for quarterly floating-rate interest payments we receive in U.S. dollars based on LIBOR and had an original maturity of September 28, 2017. These cross-currency rate swaps also required the exchange of Euros and U.S. dollar principal payments upon maturity.

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 made by our Canadian Tim Hortons operations. At September 30, 2016, 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 $149.2 million with maturities to December 2017. We have designated these instruments as cash flow hedges, and as such, the effective portion of unrealized changes in market value are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Credit Risk

By entering into derivative instrument 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.

The following tables present the required quantitative disclosures for our derivative instruments (in millions):

 

     Gain (Loss) Recognized in Other Comprehensive Income (Loss)
(effective portion)		  
     Three Months Ended September 30,     Nine Months Ended September 30,  
             2016                     2015                     2016                     2015          

Derivatives designated as cash flow hedges:

         

Forward-starting interest rate swaps

    $ 1.0      $ (53.4 )    $ (71.6 )    $ (139.3 ) 

Forward-currency contracts

    $ 2.1      $ 8.0      $ (7.7 )    $ 13.5   

Derivatives designated as net investment hedges:

         

Cross-currency rate swaps

    $ 20.1      $ 397.7      $ (199.6 )    $ 666.7   

Classification on Condensed Consolidated 

Statements of Operations

    Gain (Loss) Reclassified from AOCI into Earnings  
     Three Months Ended September 30,     Nine Months Ended September 30,  
     2016     2015     2016     2015  

Interest expense, net

    $ (5.9 )    $ (3.5 )    $ (15.3 )    $ (8.5 ) 

Other operating expenses (income), net

    $ —        $ —        $ —        $ (27.6 ) 

Cost of sales

    $ (1.4 )    $ 3.3      $ 1.1      $ 9.6   
     Gain (Loss) Recognized in Other Operating Expenses (Income), net  
     Three Months Ended September 30,     Nine Months Ended September 30,  
     2016     2015     2016     2015  

Derivatives not designated as hedging instruments:

         

Interest rate swaps

    $ —        $ —        $ —        $ (12.4 ) 

Forward-currency contracts

    $ —        $ 1.5      $ —        $ 4.3   

Ineffectiveness of cash flow hedges:

         

Interest rate swaps

    $ —        $ —        $ —        $ (1.6 ) 

v3.5.0.2
Franchise and Property Revenues
 9 Months Ended
Sep. 30, 2016
Other Industries [Abstract]  
Franchise and Property Revenues

Note 15. Franchise and Property Revenues

Franchise and property revenues consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
         2016              2015              2016              2015      

Franchise royalties

    $ 261.1       $ 242.8       $ 738.7       $ 697.8   

Property revenues

      194.6         191.7         563.9         567.7   

Franchise fees and other revenue

      33.6         39.3         96.3         116.5   
  

 

 

     

 

 

     

 

 

     

 

 

  

Franchise and property revenues

    $ 489.3       $ 473.8       $ 1,398.9       $ 1,382.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

 
v3.5.0.2
Other Operating Expenses (Income), net
 9 Months Ended
Sep. 30, 2016
Other Income and Expenses [Abstract]  
Other Operating Expenses (Income), net

Note 16. Other Operating Expenses (Income), net

Other operating expenses (income), net consist of the following (in millions):

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2016      2015     2016      2015  

Net losses (gains) on disposal of assets, restaurant closures and refranchisings

    $ 3.3       $ 0.2      $ 19.6       $ (3.2 ) 

Litigation settlements and reserves, net

      0.4         (0.1 )      2.0         1.8   

Net losses (gains) on derivatives

      —           (1.5 )      —           37.3   

Net losses (gains) on foreign exchange

      4.1         10.8        16.1         45.1   

Other, net

      0.9         —          0.5         1.2   
  

 

 

     

 

 

    

 

 

     

 

 

  

Other operating expenses (income), net

    $ 8.7       $ 9.4      $ 38.2       $ 82.2   
  

 

 

     

 

 

    

 

 

     

 

 

  

Net losses (gains) on disposal of assets, restaurant closures and refranchisings for the nine months ended September 30, 2016 primarily reflects losses in connection with refranchisings in our TH business.

Net losses (gains) on derivatives for the nine months ended September 30, 2015 is primarily due to changes in fair value related to interest rate swaps not designated for hedge accounting. These interest rate swaps were settled during May 2015.

Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities.
v3.5.0.2
Variable Interest Entities
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities

Note 17. Variable Interest Entities

VIEs for Which We Are the Primary Beneficiary

The number of Restaurant VIEs where TH is the restaurants’ primary beneficiary was as follows:

 

     As of  
     September 30,
2016		      December 31,
2015		      September 30,
2015		  

Number of consolidated Restaurant VIEs

      104         141         198   

Sales and operating costs and expenses associated with Restaurant VIEs, prior to consolidation adjustments, were as follows (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Sales

    $ 32.4       $ 54.6       $ 98.1       $ 180.2   

Operating costs and expenses

    $ 31.3       $ 53.5       $ 94.8       $ 176.6   

The 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.

VIEs for Which We Are Not the Primary Beneficiary

We have investments in certain TH real estate ventures and certain TH and BK master franchisees, which were determined to be VIEs of which we are not the primary beneficiary. We do not consolidate these entities as control is considered to be shared by both TH and the other joint owners in the case of the TH real estate ventures, or control rests with other parties in the case of TH and BK master franchisee VIEs.
v3.5.0.2
Segment Reporting
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting

Note 18. Segment Reporting

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. We generate revenue from four sources: (i) sales exclusive to Tim Hortons franchisees related to our supply chain operations, including manufacturing, procurement, warehousing and distribution, as well as sales to retailers; (ii) property revenues from properties we lease or sublease to franchisees; (iii) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; and (iv) sales at Company restaurants.

We have two operating segments: (1) TH, which includes all operations of our Tim Hortons brand, and (2) BK, which includes all operations of our Burger King brand. We also determined that our two operating segments represent our reportable segments.

Revenues by operating segment and country consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Revenues by operating segment:

            

TH

    $ 789.9       $ 737.7       $ 2,207.5       $ 2,185.4   

BK

      285.8         282.0         826.9         809.8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,075.7       $ 1,019.7       $ 3,034.4       $ 2,995.2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues by country:

            

Canada

    $ 708.8       $ 658.1       $ 1,973.0       $ 1,943.1   

United States

      249.2         244.3         725.0         726.2   

Other

      117.7         117.3         336.4         325.9   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,075.7       $ 1,019.7       $ 3,034.4       $ 2,995.2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Only Canada and the United States represented 10% or more of our total revenues in each period presented.

 

Our measure of segment income is Adjusted EBITDA. Adjusted EBITDA represents earnings (net income or loss) before interest, (gain) loss on early extinguishment of debt, taxes, depreciation and amortization, adjusted to exclude the impact of share-based compensation and non-cash incentive compensation expense, other operating expenses (income), net, (income) loss from equity method investments, net of cash distributions received from equity method investments, and all other specifically identified items that management believes are not relevant to management’s assessment of operating performance or the performance of an acquired business. Adjusted EBITDA assists management in comparing segment performance by removing the impact of such items, including acquisition accounting impact on cost of sales, TH transaction and restructuring costs, and integration costs. A reconciliation of segment income to net income consists of the following (in millions):

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2016      2015     2016     2015  

Segment Income:

          

TH

    $ 287.1       $ 244.0      $ 793.9      $ 663.3   

BK

      201.8         196.7        581.9        560.3   
  

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      488.9         440.7        1,375.8        1,223.6   

Share-based compensation and non-cash incentive compensation expense

      11.8         15.5        31.0        37.5   

Acquisition accounting impact on cost of sales

      —           (0.3 )      —          0.5   

TH transaction and restructuring costs

      —           24.3        —          79.7   

Integration costs

      4.4         —          10.4        —     

Impact of equity method investments (a)

      0.3         4.7        (7.6 )      15.7   

Other operating expenses (income), net

      8.7         9.4        38.2        82.2   
  

 

 

     

 

 

    

 

 

    

 

 

  

EBITDA

      463.7         387.1        1,303.8        1,008.0   

Depreciation and amortization

      43.2         43.1        128.7        137.8   
  

 

 

     

 

 

    

 

 

    

 

 

  

Income from operations

      420.5         344.0        1,175.1        870.2   

Interest expense, net

      117.3         116.0        349.6        362.3   

(Gain) loss on early extinguishment of debt

      —           0.4        —          40.0   

Income tax expense

      64.6         44.7        171.0        140.7   
  

 

 

     

 

 

    

 

 

    

 

 

  

Net income

    $ 238.6       $ 182.9      $ 654.5      $ 327.2   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

(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.
v3.5.0.2
Supplemental Financial Information
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information

Note 19. Supplemental Financial Information

On May 22, 2015, 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 the 2015 Amended Credit Agreement. On May 22, 2015, the Issuers entered into an indenture (the “2015 Senior Notes Indenture”) with respect to the 2015 Senior Notes. On October 8, 2014, the Issuers entered into an indenture (the “2014 Senior Notes Indenture”) with respect to the 2014 Senior Notes.

The 2015 Amended Credit Agreement, the 2015 Senior Notes Indenture and the 2014 Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis.

The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities.

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Balance Sheets

(In millions)

As of September 30, 2016

 

    Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  
ASSETS        

Current assets:

        

Cash and cash equivalents

   $ 1,228.6      $ —        $ —        $ 1,228.6   

Trade and notes receivable, net

     374.3        —          —          374.3   

Inventories and other current assets, net

     170.8        —          —          170.8   

Advertising fund restricted assets

     57.7        —          —          57.7   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total current assets

     1,831.4        —          —          1,831.4   

Property and equipment, net

     2,095.8        —          —          2,095.8   

Intangible assets, net

     9,434.0        —          —          9,434.0   

Goodwill

     4,762.0        —          —          4,762.0   

Net investment in property leased to franchisees

     100.1        —          —          100.1   

Intercompany receivable

     —          141.3        (141.3 )      —     

Investment in subsidiaries

     —          6,788.0        (6,788.0 )      —     

Other assets, net

     942.0        —          —          942.0   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

   $ 19,165.3      $ 6,929.3      $ (6,929.3 )    $ 19,165.3   
 

 

 

    

 

 

    

 

 

    

 

 

  
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY        

Current liabilities:

        

Accounts and drafts payable

   $ 352.1      $ —        $ —        $ 352.1   

Other accrued liabilities

     365.5        141.3        —          506.8   

Gift card liability

     124.2        —          —          124.2   

Advertising fund liabilities

     112.7        —          —          112.7   

Current portion of long term debt and capital leases

     94.1        —          —          94.1   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total current liabilities

     1,048.6        141.3        —          1,189.9   

Term debt, net of current portion

     8,421.3        —          —          8,421.3   

Capital leases, net of current portion

     213.9        —          —          213.9   

Other liabilities, net

     903.5        —          —          903.5   

Payables to affiliates

     141.3        —          (141.3 )      —     

Deferred income taxes, net

     1,648.7        —          —          1,648.7   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

     12,377.3        141.3        (141.3 )      12,377.3   
 

 

 

    

 

 

    

 

 

    

 

 

  

Partnership preferred units

     —          3,297.0        —          3,297.0   

Partners’ capital:

        

Class A common units

     —          3,235.9        —          3,235.9   

Partnership exchangeable units

     —          1,402.6        —          1,402.6   

Common shares

     6,953.2        —          (6,953.2 )      —     

Retained earnings

     982.3        —          (982.3 )      —     

Accumulated other comprehensive income (loss)

     (1,151.9 )      (1,151.9 )      1,151.9        (1,151.9 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Partners’ capital/shareholders’ equity

     6,783.6        3,486.6        (6,783.6 )      3,486.6   

Noncontrolling interests

     4.4        4.4        (4.4 )      4.4   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total equity

     6,788.0        3,491.0        (6,788.0 )      3,491.0   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities, Partnership preferred units and equity

   $ 19,165.3      $ 6,929.3      $ (6,929.3 )    $ 19,165.3   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Balance Sheets

(In millions)

As of December 31, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  
ASSETS         

Current assets:

         

Cash and cash equivalents

    $ 753.7      $ —        $ —        $ 753.7   

Trade and notes receivable, net

      421.7        —          —          421.7   

Inventories and other current assets, net

      132.2        —          —          132.2   

Advertising fund restricted assets

      57.5        —          —          57.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total current assets

      1,365.1        —          —          1,365.1   

Property and equipment, net

      2,150.6        —          —          2,150.6   

Intangible assets, net

      9,147.8        —          —          9,147.8   

Goodwill

      4,574.4        —          —          4,574.4   

Net investment in property leased to franchisees

      117.2        —          —          117.2   

Intercompany receivable

      —          128.3        (128.3 )      —     

Investment in subsidiaries

      —          6,210.1        (6,210.1 )      —     

Other assets, net

      1,053.4        —          —          1,053.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 18,408.5      $ 6,338.4      $ (6,338.4 )    $ 18,408.5   
  

 

 

    

 

 

    

 

 

    

 

 

  
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY         

Current liabilities:

         

Accounts and drafts payable

    $ 361.5      $ —        $ —        $ 361.5   

Other accrued liabilities

      310.0        128.3        —          438.3   

Gift card liability

      168.5        —          —          168.5   

Advertising fund liabilities

      93.6        —          —          93.6   

Current portion of long term debt and capital leases

      56.1        —          —          56.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total current liabilities

      989.7        128.3        —          1,118.0   

Term debt, net of current portion

      8,462.3        —          —          8,462.3   

Capital leases, net of current portion

      203.4        —          —          203.4   

Other liabilities, net

      795.9        —          —          795.9   

Payables to affiliates

      128.3        —          (128.3 )      —     

Deferred income taxes, net

      1,618.8        —          —          1,618.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      12,198.4        128.3        (128.3 )      12,198.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Partnership preferred units

      —          3,297.0        —          3,297.0   

Partners’ capital:

         

Class A common units

      —          2,876.7        —          2,876.7   

Partnership exchangeable units

      —          1,503.5        —          1,503.5   

Common shares

      7,318.1        —          (7,318.1 )      —     

Retained earnings

      359.1        —          (359.1 )      —     

Accumulated other comprehensive income (loss)

      (1,467.8 )      (1,467.8 )      1,467.8        (1,467.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Partners’ capital/shareholders’ equity

      6,209.4        2,912.4        (6,209.4 )      2,912.4   

Noncontrolling interests

      0.7        0.7        (0.7 )      0.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total equity

      6,210.1        2,913.1        (6,210.1 )      2,913.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities, Partnership preferred units and equity

    $ 18,408.5      $ 6,338.4      $ (6,338.4 )    $ 18,408.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Three Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP      Eliminations     Consolidated  

Revenues:

          

Sales

    $ 586.4      $ —         $ —        $ 586.4   

Franchise and property revenues

      489.3        —           —          489.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,075.7        —           —          1,075.7   

Cost of sales

      455.0        —           —          455.0   

Franchise and property expenses

      111.9        —           —          111.9   

Selling, general and administrative expenses

      82.2        —           —          82.2   

(Income) loss from equity method investments

      (2.6 )      —           —          (2.6 ) 

Other operating expenses (income), net

      8.7        —           —          8.7   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total operating costs and expenses

      655.2        —           —          655.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income from operations

      420.5        —           —          420.5   

Interest expense, net

      117.3        —           —          117.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes

      303.2        —           —          303.2   

Income tax expense

      64.6        —           —          64.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      238.6        —           —          238.6   

Equity in earnings of consolidated subsidiaries

      —          238.6         (238.6 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      238.6        238.6         (238.6 )      238.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      1.0        1.0         (1.0 )      1.0   

Partnership preferred unit distributions

      —          67.5         —          67.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 237.6      $ 170.1       $ (237.6 )    $ 170.1   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total comprehensive income (loss)

    $ 131.8      $ 131.8       $ (131.8 )    $ 131.8   
  

 

 

    

 

 

     

 

 

    

 

 

  

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Nine Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP      Eliminations     Consolidated  

Revenues:

          

Sales

    $ 1,635.5      $ —         $ —        $ 1,635.5   

Franchise and property revenues

      1,398.9        —           —          1,398.9   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      3,034.4        —           —          3,034.4   

Cost of sales

      1,279.0        —           —          1,279.0   

Franchise and property expenses

      330.2        —           —          330.2   

Selling, general and administrative expenses

      228.5        —           —          228.5   

(Income) loss from equity method investments

      (16.6 )      —           —          (16.6 ) 

Other operating expenses (income), net

      38.2        —           —          38.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total operating costs and expenses

      1,859.3        —           —          1,859.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income from operations

      1,175.1        —           —          1,175.1   

Interest expense, net

      349.6        —           —          349.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes

      825.5        —           —          825.5   

Income tax expense

      171.0        —           —          171.0   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      654.5        —           —          654.5   

Equity in earnings of consolidated subsidiaries

      —          654.5         (654.5 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      654.5        654.5         (654.5 )      654.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2.8        2.8         (2.8 )      2.8   

Partnership preferred unit distributions

      —          202.5         —          202.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 651.7      $ 449.2       $ (651.7 )    $ 449.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total comprehensive income (loss)

    $ 970.4      $ 970.4       $ (970.4 )    $ 970.4   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Three Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Revenues:

         

Sales

    $ 545.9      $ —        $ —        $ 545.9   

Franchise and property revenues

      473.8        —          —          473.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      1,019.7        —          —          1,019.7   

Cost of sales

      446.6        —          —          446.6   

Franchise and property expenses

      114.4        —          —          114.4   

Selling, general and administrative expenses

      104.3        —          —          104.3   

(Income) loss from equity method investments

      1.0        —          —          1.0   

Other operating expenses (income), net

      9.4        —          —          9.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

      675.7        —          —          675.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      344.0        —          —          344.0   

Interest expense, net

      116.0        —          —          116.0   

(Gain) loss on early extinguishment of debt

      0.4        —          —          0.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      227.6        —          —          227.6   

Income tax expense

      44.7        —          —          44.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      182.9        —          —          182.9   

Equity in earnings of consolidated subsidiaries

      —          182.9        (182.9 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      182.9        182.9        (182.9 )      182.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      0.9        0.9        (0.9 )      0.9   

Partnership preferred unit distributions

      —          67.5        —          67.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 182.0      $ 114.5      $ (182.0 )    $ 114.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ (149.4 )    $ (149.4 )    $ 149.4      $ (149.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Nine Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Revenues:

         

Sales

    $ 1,613.2      $ —        $ —        $ 1,613.2   

Franchise and property revenues

      1,382.0        —          —          1,382.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      2,995.2        —          —          2,995.2   

Cost of sales

      1,354.6        —          —          1,354.6   

Franchise and property expenses

      365.2        —          —          365.2   

Selling, general and administrative expenses

      317.3        —          —          317.3   

(Income) loss from equity method investments

      5.7        —          —          5.7   

Other operating expenses (income), net

      82.2        —          —          82.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

      2,125.0        —          —          2,125.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      870.2        —          —          870.2   

Interest expense, net

      362.3        —          —          362.3   

(Gain) loss on early extinguishment of debt

      40.0        —          —          40.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      467.9        —          —          467.9   

Income tax expense

      140.7        —          —          140.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      327.2        —          —          327.2   

Equity in earnings of consolidated subsidiaries

      —          327.2        (327.2 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      327.2        327.2        (327.2 )      327.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2.9        2.9        (2.9 )      2.9   

Partnership preferred unit distributions

      —          203.7        —          203.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 324.3      $ 120.6      $ (324.3 )    $ 120.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ (717.8 )    $ (717.8 )    $ 717.8      $ (717.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Cash Flows

(In millions)

Nine Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Cash flows from operating activities:

         

Net income

    $ 654.5      $ 654.5      $ (654.5 )    $ 654.5   

Adjustments to reconcile net income to net cash provided by operating activities:

         

Equity in loss (earnings) of consolidated subsidiaries

      —          (654.5 )      654.5        —     

Depreciation and amortization

      129.0        —          —          129.0   

Amortization of deferred financing costs and debt issuance discount

      29.1        —          —          29.1   

(Income) loss from equity method investments

      (16.6 )      —          —          (16.6 ) 

Loss (gain) on remeasurement of foreign denominated transactions

      16.1        —          —          16.1   

Amortization of defined pension and postretirement benefits

      (1.9 )      —          —          (1.9 ) 

Net losses (gains) on derivatives

      15.3        —          —          15.3   

Net losses (gains) on refranchisings and dispositions of assets

      10.0        —          —          10.0   

Bad debt expense (recoveries), net

      (0.1 )      —          —          (0.1 ) 

Share-based compensation expense

      25.9        —          —          25.9   

Deferred income taxes

      34.6        —          —          34.6   

Changes in current assets and liabilities, excluding acquisitions and dispositions:

         

Trade and notes receivable

      20.0        —          —          20.0   

Inventories and other current assets

      (3.0 )      —          —          (3.0 ) 

Accounts and drafts payable

      11.8        —          —          11.8   

Accrued advertising

      4.0        —          —          4.0   

Other accrued liabilities

      (23.8 )      —          —          (23.8 ) 

Other long-term assets and liabilities

      0.9        —          —          0.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      905.8        —          —          905.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

         

Payments for property and equipment

      (18.2 )      —          —          (18.2 ) 

Proceeds from refranchisings, disposition of assets and restaurant closures

      18.1        —          —          18.1   

Return of investment on direct financing leases

      12.5        —          —          12.5   

Settlement of derivatives, net

      4.9        —          —          4.9   

Other investing activities, net

      2.0        —          —          2.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) investing activities

      19.3        —          —          19.3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

         

Repayments of term debt and capital leases

      (52.7 )      —            (52.7 ) 

Distributions on partnership units

      —          (396.9 )      —          (396.9 ) 

Capital contribution from RBI Inc.

      —          12.5        —          12.5   

Distributions to RBI Inc.

      —          (28.5 )      —          (28.5 ) 

Other financing activities, net

      0.8        —          —          0.8   

Intercompany financing

      (412.9 )      412.9        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) financing activities

      (464.8 )      —          —          (464.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rates on cash and cash equivalents

      14.6        —          —          14.6   

Increase (decrease) in cash and cash equivalents

      474.9        —          —          474.9   

Cash and cash equivalents at beginning of period

      753.7        —          —          753.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 1,228.6      $ —        $ —        $ 1,228.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Cash Flows

(In millions)

Nine Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Cash flows from operating activities:

         

Net income

    $ 327.2      $ 327.2      $ (327.2 )    $ 327.2   

Adjustments to reconcile net income to net cash provided by operating activities:

         

Equity in loss (earnings) of consolidated subsidiaries

      —          (327.2 )      327.2        —     

Depreciation and amortization

      137.8        —          —          137.8   

Loss on early extinguishment of debt

      40.0        —          —          40.0   

Amortization of deferred financing costs and debt issuance discount

      25.0        —          —          25.0   

(Income) loss from equity method investments

      5.7        —          —          5.7   

Loss (gain) on remeasurement of foreign denominated transactions

      31.1        —          —          31.1   

Net losses (gains) on derivatives

      50.1        —          —          50.1   

Net losses (gains) on refranchisings and dispositions of assets

      (5.8 )      —          —          (5.8 ) 

Bad debt expense (recoveries), net

      0.9        —          —          0.9   

Share-based compensation expense

      36.9        —          —          36.9   

Acquisition accounting impact on cost of sales

      0.5            0.5   

Deferred income taxes

      (114.8 )      —          —          (114.8 ) 

Changes in current assets and liabilities, excluding acquisitions and dispositions:

         

Reclassification of restricted cash to cash and cash equivalents

      79.2        —          —          79.2   

Trade and notes receivable

      35.4        —          —          35.4   

Inventories and other current assets

      (5.1 )      —          —          (5.1 ) 

Accounts and drafts payable

      138.8        —          —          138.8   

Accrued advertising

      29.8        —          —          29.8   

Other accrued liabilities

      172.2        —          —          172.2   

Other long-term assets and liabilities

      (34.5 )        —          (34.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      950.4        —          —          950.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

         

Payments for property and equipment

      (82.9 )      —          —          (82.9 ) 

Proceeds from refranchisings, disposition of assets and restaurant closures

      16.9        —          —          16.9   

Return of investment on direct financing leases

      12.1        —          —          12.1   

Settlement of derivatives, net

      11.8        —          —          11.8   

Other investing activities, net

      2.1        —          —          2.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) investing activities

      (40.0 )      —          —          (40.0 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

         

Proceeds from Senior Notes

      1,250.0        —          —          1,250.0   

Repayments of term debt, Tim Hortons Notes and capital leases

      (2,610.6 )      —          —          (2,610.6 ) 

Payment of financing costs

      (81.3 )      —          —          (81.3 ) 

Distributions on partnership units

      —          (238.8 )      —          (238.8 ) 

Distributions to RBI Inc.

      —          (0.1 )      —          (0.1 ) 

Other financing activities, net

      (3.9 )      —          —          (3.9 ) 

Intercompany financing

      (238.9 )      238.9        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) financing activities

      (1,684.7 )      —          —          (1,684.7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rates on cash and cash equivalents

      (57.2 )      —          —          (57.2 ) 

Increase (decrease) in cash and cash equivalents

      (831.5 )      —          —          (831.5 ) 

Cash and cash equivalents at beginning of period

      1,803.2        —          —          1,803.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 971.7      $ —        $ —        $ 971.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

 
v3.5.0.2
Subsequent Event
 9 Months Ended
Sep. 30, 2016
Subsequent Events [Abstract]  
Subsequent Event

Note 20. Subsequent Event

Dividends

On October 4, 2016, RBI paid a cash dividend of $0.16 per RBI common share to common shareholders of record on September 6, 2016. On such date, Partnership made a distribution to RBI as holder of all of the 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 $0.16 per Partnership exchangeable unit to holders of record on September 6, 2016. On October 3, 2016, RBI paid a cash dividend of $0.98 per preferred share, for a total dividend of $67.5 million, to the holder of the preferred shares. The dividend on the preferred shares included the amount due for the third calendar quarter of 2016. Partnership made a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date.

On October 24, 2016, the RBI board of directors declared a cash dividend of $0.17 per RBI common share, which will be paid on January 4, 2017 to RBI common shareholders of record on December 8, 2016. Partnership will make a distribution to RBI as holder of all of the 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 $0.17 per Partnership exchangeable unit, and the record date and payment date for such distribution will be the same as the record date and payment date for the cash dividend per RBI common share set forth above. On October 24, 2016, the RBI board of directors declared a cash dividend of $0.98 per preferred share, for a total dividend of $67.5 million which will be paid to the holder of the preferred shares on January 3, 2017. The dividend on the preferred shares includes the amount due for the fourth calendar quarter of 2016. Partnership will make a distribution to RBI as holder of the Partnership preferred units in an equal amount on the same date.
v3.5.0.2
Earnings (Loss) Per Unit (Tables)
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Basic and Diluted Earnings Per Unit

The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts):

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2016      2015      2016      2015  

Allocation of net income among partner interests:

            

Net income allocated to Class A common unitholders

    $ 86.3       $ 49.6       $ 227.2       $ 52.2   

Net income allocated to Partnership exchangeable unitholders

      83.8         64.9         222.0         68.4   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income attributable to common unitholders

    $ 170.1       $ 114.5       $ 449.2       $ 120.6   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic and diluted partnership units:

            

Weighted average Class A common units

      202.0         202.0         202.0         202.0   

Weighted average Partnership exchangeable units

      227.1         265.0         228.0         265.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total weighted average basic and diluted units outstanding

      429.1         467.0         430.0         467.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings per unit - basic and diluted:

            

Class A common units

    $ 0.43       $ 0.25       $ 1.12       $ 0.26   

Partnership exchangeable units

    $ 0.37       $ 0.25       $ 0.97       $ 0.26   

v3.5.0.2
Inventories and Other Current Assets, net (Tables)
 9 Months Ended
Sep. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Inventories and Other Current Assets, Net

Inventories and other current assets, net consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Raw materials

    $ 29.0       $ 22.7   

Finished goods

      56.2         58.6   
  

 

 

     

 

 

  

Total inventory

      85.2         81.3   

Refundable and prepaid income taxes

      51.7         21.5   

Prepaids and other current assets

      33.9         29.4   
  

 

 

     

 

 

  

Inventories and other current assets, net

    $ 170.8       $ 132.2   
  

 

 

     

 

 

  

v3.5.0.2
Intangible Assets, net and Goodwill (Tables)
 9 Months Ended
Sep. 30, 2016
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  
     September 30, 2016      December 31, 2015  
     Gross      Accumulated
Amortization		     Net      Gross      Accumulated
Amortization		     Net  

Identifiable assets subject to amortization:

                

Franchise agreements

    $ 665.7       $ (128.4 )    $ 537.3       $ 653.0       $ (106.8 )    $ 546.2   

Favorable leases

      444.6         (142.0 )      302.6         436.5         (107.5 )      329.0   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      1,110.3         (270.4 )      839.9         1,089.5         (214.3 )      875.2   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Indefinite lived intangible assets:

                

Tim Hortons brand

    $ 6,476.1       $ —        $ 6,476.1       $ 6,175.4       $ —        $ 6,175.4   

Burger King brand

      2,118.0         —          2,118.0         2,097.2         —          2,097.2   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Subtotal

      8,594.1         —          8,594.1         8,272.6         —          8,272.6   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Intangible assets, net

         $ 9,434.0            $ 9,147.8   
       

 

 

          

 

 

  

Goodwill

    $ 4,762.0            $ 4,574.4        

v3.5.0.2
Other Assets, net (Tables)
 9 Months Ended
Sep. 30, 2016
Investments, All Other Investments [Abstract]  
Other Assets, Net

Other assets, net consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Derivative assets

    $ 672.1       $ 830.9   

Equity method investments

      152.8         139.0   

Other assets

      117.1         83.5   
  

 

 

     

 

 

  

Other assets, net

    $ 942.0       $ 1,053.4   
  

 

 

     

 

 

  

v3.5.0.2
Equity Method Investments (Tables)
 9 Months Ended
Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Summary of Equity Method Investment

Below are the names of the entities, country of operation and our equity interest in our significant equity method investments based on the carrying value as of September 30, 2016.

 

Entity

    Country    Equity
Interest		  

TIMWEN Partnership

    Canada      50.00 % 

Carrols Restaurant Group, Inc.

    United States      20.81 % 

Pangaea Foods (China) Holdings, Ltd.

    China      27.50 % 

Summary of Franchise and Property Revenue

Franchise and property revenue we recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Revenues from affiliates:

            

Franchise royalties

    $ 34.9       $ 23.0       $ 94.2       $ 67.3   

Property revenues

      6.9         6.7         21.1         20.9   

Franchise fees and other revenue

      6.8         2.4         14.7         5.8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 48.6       $ 32.1       $ 130.0       $ 94.0   
  

 

 

     

 

 

     

 

 

     

 

 

  
v3.5.0.2
Other Accrued Liabilities and Other Liabilities, net (Tables)
 9 Months Ended
Sep. 30, 2016
Other Liabilities Disclosure [Abstract]  
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net

Other accrued liabilities (current) and other liabilities, net (noncurrent) consist of the following (in millions):

 

     As of  
     September 30,      December 31,  
     2016      2015  

Current:

      

Dividend payable

    $ 141.3       $ 128.3   

Interest payable

      82.6         63.1   

Accrued compensation and benefits

      46.2         61.6   

Taxes payable - current

      79.3         46.9   

Deferred income - current

      48.6         33.5   

Closed property reserve

      10.1         14.0   

Restructuring and other provisions

      8.4         13.5   

Derivatives liabilities - current

      3.4         —     

Other

      86.9         77.4   
  

 

 

     

 

 

  

Other accrued liabilities

    $ 506.8       $ 438.3   
  

 

 

     

 

 

  

Noncurrent:

      

Unfavorable leases

    $ 292.1       $ 322.0   

Taxes payable - noncurrent

      256.2         236.7   

Accrued pension

      77.9         80.2   

Derivatives liabilities - noncurrent

      164.6         47.3   

Lease liability - noncurrent

      28.5         29.5   

Deferred income - noncurrent

      27.6         23.7   

Other

      56.6         56.5   
  

 

 

     

 

 

  

Other liabilities, net

    $ 903.5       $ 795.9   
  

 

 

     

 

 
v3.5.0.2
Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Summary of Long-Term Debt

Long-term debt consists of the following (in millions):

 

            As of  
            September 30,     December 31,  
     Maturity dates      2016     2015  

Term Loan Facility

      December 12, 2021       $ 5,059.0      $ 5,097.7   

2015 Senior Notes

      January 15, 2022         1,250.0        1,250.0   

2014 Senior Notes

      April 1, 2022         2,250.0        2,250.0   

Tim Hortons Notes

      various         41.6        39.4   

Other

      N/A         92.6        88.5   

Less: unamortized discount and deferred financing costs

         (196.5 )      (224.3 ) 
     

 

 

    

 

 

  

Total debt, net

         8,496.7        8,501.3   

Less: current maturities of debt

         (75.4 )      (39.0 ) 
     

 

 

    

 

 

  

Total long-term debt

       $ 8,421.3      $ 8,462.3   
     

 

 

    

 

 

  

Schedule of Interest Expense, Net

Interest expense, net consists of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Term Loan Facility

    $ 54.6       $ 52.6       $ 160.5       $ 197.8   

2015 Senior Notes

      14.5         14.4         43.4         20.7   

2014 Senior Notes

      33.8         33.8         101.3         101.3   

Tim Hortons Notes

      0.4         0.4         1.1         2.8   

Amortization of deferred financing costs and debt issuance discount

      9.8         9.7         29.1         25.0   

Capital lease obligations

      5.2         5.3         15.0         15.7   

Other

      0.3         0.7         2.0         2.3   

Interest income

      (1.3 )       (0.9 )       (2.8 )       (3.3 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense, net

    $ 117.3       $ 116.0       $ 349.6       $ 362.3   
  

 

 

     

 

 

     

 

 

     

 

 

  

v3.5.0.2
Equity (Tables)
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss)

The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions):

 

     Derivatives     Pensions     Foreign Currency
Translation		     AOCI  

Balances at December 31, 2015

    $ 637.0      $ (24.7 )    $ (2,080.1 )    $ (1,467.8 ) 

Foreign currency translation adjustment

      —          —          538.8        538.8   

Net change in fair value of derivatives, net of tax

      (232.3 )      —          —          (232.3 ) 

Amounts reclassified to earnings of cash flow hedges, net of tax

      10.5        —          —          10.5   

Amortization of prior service (credits) costs, net of tax

      —          (1.3 )      —          (1.3 ) 

Amortization of actuarial (gains) losses, net of tax

      —          0.2        —          0.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balances at September 30, 2016

    $ 415.2      $ (25.8 )    $ (1,541.3 )    $ (1,151.9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table displays the reclassifications out of AOCI (in millions):

 

        Amounts Reclassified from AOCI  
   

 

Affected Line Item in the

   Three Months Ended
September 30,		     Nine Months Ended
September 30,		  

Details about AOCI Components

  

Statements of Operations

       2016             2015             2016             2015      

Gains (losses) on cash flow hedges:

          

Interest rate derivative contracts

   Interest expense, net   $ (5.9 )    $ (3.5 )    $ (15.3 )    $ (8.5 ) 

Interest rate derivative contracts

   Other operating expenses (income), net     —          —          —          (27.6 ) 

Forward-currency contracts

   Cost of sales     (1.4 )      3.3        1.1        9.6   
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Total before tax

     (7.3 )      (0.2 )      (14.2 )      (26.5 ) 
 

Income tax (expense) benefit

     1.9        —          3.7        7.3   
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Net of tax

   $ (5.4 )    $ (0.2 )    $ (10.5 )    $ (19.2 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Defined benefit pension:

          

Amortization of prior service credits (costs)

   SG&A (a)     0.7        0.8        2.2        2.2   

Amortization of actuarial gains (losses)

   SG&A (a)     (0.1 )      (0.7 )      (0.3 )      (2.1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Total before tax

     0.6        0.1        1.9        0.1   
 

Income tax (expense) benefit

     (0.3 )      (0.1 )      (0.8 )      (0.1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
 

Net of tax

   $ 0.3      $ —        $ 1.1      $ —     
   

 

 

    

 

 

    

 

 

    

 

 

  

Total reclassifications

   Net of tax   $ (5.1 )    $ (0.2 )    $ (9.4 )    $ (19.2 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Refers to selling, general and administrative expenses in the condensed consolidated statements of operations.
v3.5.0.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis and the levels of inputs used to measure fair value, which include derivatives designated as cash flow hedging instruments and derivatives designated as net investment hedges, as well as their location on our condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 (in millions):

 

         Fair Value Measurements      Fair Value Measurements  
         at September 30, 2016      at December 31, 2015  
   

Balance Sheet Location

        (Level 2)              Total              (Level 2)              Total      
Assets:              

Derivatives designated as cash flow hedges

              

Foreign currency

   Trade and notes receivable, net    $ 1.1       $ 1.1       $ 6.6       $ 6.6   

Derivatives designated as net investment hedges

              

Foreign currency

   Other assets, net      672.1         672.1         830.9         830.9   
    

 

 

     

 

 

     

 

 

     

 

 

  

Total assets at fair value

      $ 673.2       $ 673.2       $ 837.5       $ 837.5   
    

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:              

Derivatives designated as cash flow hedges

              

Interest rate

   Other liabilities, net    $ 106.7       $ 106.7       $ 40.9       $ 40.9   

Foreign currency

   Other accrued liabilities      3.4         3.4         —           —     

Derivatives designated as net investment hedges

              

Foreign currency

   Other liabilities, net      57.9         57.9         6.3         6.3   
    

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities at fair value

      $ 168.0       $ 168.0       $ 47.2       $ 47.2   
    

 

 

     

 

 

     

 

 

     

 

 

  

v3.5.0.2
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Quantitative Disclosures of Derivative Instruments

The following tables present the required quantitative disclosures for our derivative instruments (in millions):

 

     Gain (Loss) Recognized in Other Comprehensive Income (Loss)
(effective portion)		  
     Three Months Ended September 30,     Nine Months Ended September 30,  
             2016                     2015                     2016                     2015          

Derivatives designated as cash flow hedges:

         

Forward-starting interest rate swaps

    $ 1.0      $ (53.4 )    $ (71.6 )    $ (139.3 ) 

Forward-currency contracts

    $ 2.1      $ 8.0      $ (7.7 )    $ 13.5   

Derivatives designated as net investment hedges:

         

Cross-currency rate swaps

    $ 20.1      $ 397.7      $ (199.6 )    $ 666.7   

Classification on Condensed Consolidated 

Statements of Operations

    Gain (Loss) Reclassified from AOCI into Earnings  
     Three Months Ended September 30,     Nine Months Ended September 30,  
     2016     2015     2016     2015  

Interest expense, net

    $ (5.9 )    $ (3.5 )    $ (15.3 )    $ (8.5 ) 

Other operating expenses (income), net

    $ —        $ —        $ —        $ (27.6 ) 

Cost of sales

    $ (1.4 )    $ 3.3      $ 1.1      $ 9.6   
     Gain (Loss) Recognized in Other Operating Expenses (Income), net  
     Three Months Ended September 30,     Nine Months Ended September 30,  
     2016     2015     2016     2015  

Derivatives not designated as hedging instruments:

         

Interest rate swaps

    $ —        $ —        $ —        $ (12.4 ) 

Forward-currency contracts

    $ —        $ 1.5      $ —        $ 4.3   

Ineffectiveness of cash flow hedges:

         

Interest rate swaps

    $ —        $ —        $ —        $ (1.6 ) 

v3.5.0.2
Franchise and Property Revenues (Tables)
 9 Months Ended
Sep. 30, 2016
Other Industries [Abstract]  
Summary of Franchise and Property Revenues

Franchise and property revenues consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
         2016              2015              2016              2015      

Franchise royalties

    $ 261.1       $ 242.8       $ 738.7       $ 697.8   

Property revenues

      194.6         191.7         563.9         567.7   

Franchise fees and other revenue

      33.6         39.3         96.3         116.5   
  

 

 

     

 

 

     

 

 

     

 

 

  

Franchise and property revenues

    $ 489.3       $ 473.8       $ 1,398.9       $ 1,382.0   
  

 

 

     

 

 

     

 

 

     

 

 

  

 
v3.5.0.2
Other Operating Expenses (Income), net (Tables)
 9 Months Ended
Sep. 30, 2016
Other Income and Expenses [Abstract]  
Other Operating Expenses (Income), Net

Other operating expenses (income), net consist of the following (in millions):

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2016      2015     2016      2015  

Net losses (gains) on disposal of assets, restaurant closures and refranchisings

    $ 3.3       $ 0.2      $ 19.6       $ (3.2 ) 

Litigation settlements and reserves, net

      0.4         (0.1 )      2.0         1.8   

Net losses (gains) on derivatives

      —           (1.5 )      —           37.3   

Net losses (gains) on foreign exchange

      4.1         10.8        16.1         45.1   

Other, net

      0.9         —          0.5         1.2   
  

 

 

     

 

 

    

 

 

     

 

 

  

Other operating expenses (income), net

    $ 8.7       $ 9.4      $ 38.2       $ 82.2   
  

 

 

     

 

 

    

 

 

     

 

 

  

v3.5.0.2
Variable Interest Entities (Tables)
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Number of Restaurant VIEs Including Primary Beneficiary TH

The number of Restaurant VIEs where TH is the restaurants’ primary beneficiary was as follows:

 

     As of  
     September 30,
2016		      December 31,
2015		      September 30,
2015		  

Number of consolidated Restaurant VIEs

      104         141         198   
Schedule of Sales and Operating Costs and Expenses Associated with VIEs, Prior to Consolidation Adjustments

Sales and operating costs and expenses associated with Restaurant VIEs, prior to consolidation adjustments, were as follows (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Sales

    $ 32.4       $ 54.6       $ 98.1       $ 180.2   

Operating costs and expenses

    $ 31.3       $ 53.5       $ 94.8       $ 176.6   
v3.5.0.2
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Revenues by Operating Segment and Country

Revenues by operating segment and country consist of the following (in millions):

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2016      2015      2016      2015  

Revenues by operating segment:

            

TH

    $ 789.9       $ 737.7       $ 2,207.5       $ 2,185.4   

BK

      285.8         282.0         826.9         809.8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,075.7       $ 1,019.7       $ 3,034.4       $ 2,995.2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Revenues by country:

            

Canada

    $ 708.8       $ 658.1       $ 1,973.0       $ 1,943.1   

United States

      249.2         244.3         725.0         726.2   

Other

      117.7         117.3         336.4         325.9   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenues

    $ 1,075.7       $ 1,019.7       $ 3,034.4       $ 2,995.2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Reconciliation of Segment Income to Net Income

A reconciliation of segment income to net income consists of the following (in millions):

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2016      2015     2016     2015  

Segment Income:

          

TH

    $ 287.1       $ 244.0      $ 793.9      $ 663.3   

BK

      201.8         196.7        581.9        560.3   
  

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      488.9         440.7        1,375.8        1,223.6   

Share-based compensation and non-cash incentive compensation expense

      11.8         15.5        31.0        37.5   

Acquisition accounting impact on cost of sales

      —           (0.3 )      —          0.5   

TH transaction and restructuring costs

      —           24.3        —          79.7   

Integration costs

      4.4         —          10.4        —     

Impact of equity method investments (a)

      0.3         4.7        (7.6 )      15.7   

Other operating expenses (income), net

      8.7         9.4        38.2        82.2   
  

 

 

     

 

 

    

 

 

    

 

 

  

EBITDA

      463.7         387.1        1,303.8        1,008.0   

Depreciation and amortization

      43.2         43.1        128.7        137.8   
  

 

 

     

 

 

    

 

 

    

 

 

  

Income from operations

      420.5         344.0        1,175.1        870.2   

Interest expense, net

      117.3         116.0        349.6        362.3   

(Gain) loss on early extinguishment of debt

      —           0.4        —          40.0   

Income tax expense

      64.6         44.7        171.0        140.7   
  

 

 

     

 

 

    

 

 

    

 

 

  

Net income

    $ 238.6       $ 182.9      $ 654.5      $ 327.2   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

(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.
v3.5.0.2
Supplemental Financial Information (Tables)
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Condensed Consolidating Financial Statements

The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities.

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Balance Sheets

(In millions)

As of September 30, 2016

 

    Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  
ASSETS        

Current assets:

        

Cash and cash equivalents

   $ 1,228.6      $ —        $ —        $ 1,228.6   

Trade and notes receivable, net

     374.3        —          —          374.3   

Inventories and other current assets, net

     170.8        —          —          170.8   

Advertising fund restricted assets

     57.7        —          —          57.7   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total current assets

     1,831.4        —          —          1,831.4   

Property and equipment, net

     2,095.8        —          —          2,095.8   

Intangible assets, net

     9,434.0        —          —          9,434.0   

Goodwill

     4,762.0        —          —          4,762.0   

Net investment in property leased to franchisees

     100.1        —          —          100.1   

Intercompany receivable

     —          141.3        (141.3 )      —     

Investment in subsidiaries

     —          6,788.0        (6,788.0 )      —     

Other assets, net

     942.0        —          —          942.0   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

   $ 19,165.3      $ 6,929.3      $ (6,929.3 )    $ 19,165.3   
 

 

 

    

 

 

    

 

 

    

 

 

  
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY        

Current liabilities:

        

Accounts and drafts payable

   $ 352.1      $ —        $ —        $ 352.1   

Other accrued liabilities

     365.5        141.3        —          506.8   

Gift card liability

     124.2        —          —          124.2   

Advertising fund liabilities

     112.7        —          —          112.7   

Current portion of long term debt and capital leases

     94.1        —          —          94.1   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total current liabilities

     1,048.6        141.3        —          1,189.9   

Term debt, net of current portion

     8,421.3        —          —          8,421.3   

Capital leases, net of current portion

     213.9        —          —          213.9   

Other liabilities, net

     903.5        —          —          903.5   

Payables to affiliates

     141.3        —          (141.3 )      —     

Deferred income taxes, net

     1,648.7        —          —          1,648.7   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

     12,377.3        141.3        (141.3 )      12,377.3   
 

 

 

    

 

 

    

 

 

    

 

 

  

Partnership preferred units

     —          3,297.0        —          3,297.0   

Partners’ capital:

        

Class A common units

     —          3,235.9        —          3,235.9   

Partnership exchangeable units

     —          1,402.6        —          1,402.6   

Common shares

     6,953.2        —          (6,953.2 )      —     

Retained earnings

     982.3        —          (982.3 )      —     

Accumulated other comprehensive income (loss)

     (1,151.9 )      (1,151.9 )      1,151.9        (1,151.9 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Partners’ capital/shareholders’ equity

     6,783.6        3,486.6        (6,783.6 )      3,486.6   

Noncontrolling interests

     4.4        4.4        (4.4 )      4.4   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total equity

     6,788.0        3,491.0        (6,788.0 )      3,491.0   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities, Partnership preferred units and equity

   $ 19,165.3      $ 6,929.3      $ (6,929.3 )    $ 19,165.3   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Balance Sheets

(In millions)

As of December 31, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  
ASSETS         

Current assets:

         

Cash and cash equivalents

    $ 753.7      $ —        $ —        $ 753.7   

Trade and notes receivable, net

      421.7        —          —          421.7   

Inventories and other current assets, net

      132.2        —          —          132.2   

Advertising fund restricted assets

      57.5        —          —          57.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total current assets

      1,365.1        —          —          1,365.1   

Property and equipment, net

      2,150.6        —          —          2,150.6   

Intangible assets, net

      9,147.8        —          —          9,147.8   

Goodwill

      4,574.4        —          —          4,574.4   

Net investment in property leased to franchisees

      117.2        —          —          117.2   

Intercompany receivable

      —          128.3        (128.3 )      —     

Investment in subsidiaries

      —          6,210.1        (6,210.1 )      —     

Other assets, net

      1,053.4        —          —          1,053.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 18,408.5      $ 6,338.4      $ (6,338.4 )    $ 18,408.5   
  

 

 

    

 

 

    

 

 

    

 

 

  
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY         

Current liabilities:

         

Accounts and drafts payable

    $ 361.5      $ —        $ —        $ 361.5   

Other accrued liabilities

      310.0        128.3        —          438.3   

Gift card liability

      168.5        —          —          168.5   

Advertising fund liabilities

      93.6        —          —          93.6   

Current portion of long term debt and capital leases

      56.1        —          —          56.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total current liabilities

      989.7        128.3        —          1,118.0   

Term debt, net of current portion

      8,462.3        —          —          8,462.3   

Capital leases, net of current portion

      203.4        —          —          203.4   

Other liabilities, net

      795.9        —          —          795.9   

Payables to affiliates

      128.3        —          (128.3 )      —     

Deferred income taxes, net

      1,618.8        —          —          1,618.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      12,198.4        128.3        (128.3 )      12,198.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Partnership preferred units

      —          3,297.0        —          3,297.0   

Partners’ capital:

         

Class A common units

      —          2,876.7        —          2,876.7   

Partnership exchangeable units

      —          1,503.5        —          1,503.5   

Common shares

      7,318.1        —          (7,318.1 )      —     

Retained earnings

      359.1        —          (359.1 )      —     

Accumulated other comprehensive income (loss)

      (1,467.8 )      (1,467.8 )      1,467.8        (1,467.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Partners’ capital/shareholders’ equity

      6,209.4        2,912.4        (6,209.4 )      2,912.4   

Noncontrolling interests

      0.7        0.7        (0.7 )      0.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total equity

      6,210.1        2,913.1        (6,210.1 )      2,913.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities, Partnership preferred units and equity

    $ 18,408.5      $ 6,338.4      $ (6,338.4 )    $ 18,408.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Three Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP      Eliminations     Consolidated  

Revenues:

          

Sales

    $ 586.4      $ —         $ —        $ 586.4   

Franchise and property revenues

      489.3        —           —          489.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      1,075.7        —           —          1,075.7   

Cost of sales

      455.0        —           —          455.0   

Franchise and property expenses

      111.9        —           —          111.9   

Selling, general and administrative expenses

      82.2        —           —          82.2   

(Income) loss from equity method investments

      (2.6 )      —           —          (2.6 ) 

Other operating expenses (income), net

      8.7        —           —          8.7   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total operating costs and expenses

      655.2        —           —          655.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income from operations

      420.5        —           —          420.5   

Interest expense, net

      117.3        —           —          117.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes

      303.2        —           —          303.2   

Income tax expense

      64.6        —           —          64.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      238.6        —           —          238.6   

Equity in earnings of consolidated subsidiaries

      —          238.6         (238.6 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      238.6        238.6         (238.6 )      238.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      1.0        1.0         (1.0 )      1.0   

Partnership preferred unit distributions

      —          67.5         —          67.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 237.6      $ 170.1       $ (237.6 )    $ 170.1   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total comprehensive income (loss)

    $ 131.8      $ 131.8       $ (131.8 )    $ 131.8   
  

 

 

    

 

 

     

 

 

    

 

 

  

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Nine Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP      Eliminations     Consolidated  

Revenues:

          

Sales

    $ 1,635.5      $ —         $ —        $ 1,635.5   

Franchise and property revenues

      1,398.9        —           —          1,398.9   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

      3,034.4        —           —          3,034.4   

Cost of sales

      1,279.0        —           —          1,279.0   

Franchise and property expenses

      330.2        —           —          330.2   

Selling, general and administrative expenses

      228.5        —           —          228.5   

(Income) loss from equity method investments

      (16.6 )      —           —          (16.6 ) 

Other operating expenses (income), net

      38.2        —           —          38.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total operating costs and expenses

      1,859.3        —           —          1,859.3   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income from operations

      1,175.1        —           —          1,175.1   

Interest expense, net

      349.6        —           —          349.6   
  

 

 

    

 

 

     

 

 

    

 

 

  

Income before income taxes

      825.5        —           —          825.5   

Income tax expense

      171.0        —           —          171.0   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      654.5        —           —          654.5   

Equity in earnings of consolidated subsidiaries

      —          654.5         (654.5 )      —     
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      654.5        654.5         (654.5 )      654.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2.8        2.8         (2.8 )      2.8   

Partnership preferred unit distributions

      —          202.5         —          202.5   
  

 

 

    

 

 

     

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 651.7      $ 449.2       $ (651.7 )    $ 449.2   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total comprehensive income (loss)

    $ 970.4      $ 970.4       $ (970.4 )    $ 970.4   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Three Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Revenues:

         

Sales

    $ 545.9      $ —        $ —        $ 545.9   

Franchise and property revenues

      473.8        —          —          473.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      1,019.7        —          —          1,019.7   

Cost of sales

      446.6        —          —          446.6   

Franchise and property expenses

      114.4        —          —          114.4   

Selling, general and administrative expenses

      104.3        —          —          104.3   

(Income) loss from equity method investments

      1.0        —          —          1.0   

Other operating expenses (income), net

      9.4        —          —          9.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

      675.7        —          —          675.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      344.0        —          —          344.0   

Interest expense, net

      116.0        —          —          116.0   

(Gain) loss on early extinguishment of debt

      0.4        —          —          0.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      227.6        —          —          227.6   

Income tax expense

      44.7        —          —          44.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      182.9        —          —          182.9   

Equity in earnings of consolidated subsidiaries

      —          182.9        (182.9 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      182.9        182.9        (182.9 )      182.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      0.9        0.9        (0.9 )      0.9   

Partnership preferred unit distributions

      —          67.5        —          67.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 182.0      $ 114.5      $ (182.0 )    $ 114.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ (149.4 )    $ (149.4 )    $ 149.4      $ (149.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Operations

(In millions)

Nine Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Revenues:

         

Sales

    $ 1,613.2      $ —        $ —        $ 1,613.2   

Franchise and property revenues

      1,382.0        —          —          1,382.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      2,995.2        —          —          2,995.2   

Cost of sales

      1,354.6        —          —          1,354.6   

Franchise and property expenses

      365.2        —          —          365.2   

Selling, general and administrative expenses

      317.3        —          —          317.3   

(Income) loss from equity method investments

      5.7        —          —          5.7   

Other operating expenses (income), net

      82.2        —          —          82.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

      2,125.0        —          —          2,125.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      870.2        —          —          870.2   

Interest expense, net

      362.3        —          —          362.3   

(Gain) loss on early extinguishment of debt

      40.0        —          —          40.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      467.9        —          —          467.9   

Income tax expense

      140.7        —          —          140.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      327.2        —          —          327.2   

Equity in earnings of consolidated subsidiaries

      —          327.2        (327.2 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      327.2        327.2        (327.2 )      327.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2.9        2.9        (2.9 )      2.9   

Partnership preferred unit distributions

      —          203.7        —          203.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to common unitholders / shareholders

    $ 324.3      $ 120.6      $ (324.3 )    $ 120.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ (717.8 )    $ (717.8 )    $ 717.8      $ (717.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Cash Flows

(In millions)

Nine Months Ended September 30, 2016

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Cash flows from operating activities:

         

Net income

    $ 654.5      $ 654.5      $ (654.5 )    $ 654.5   

Adjustments to reconcile net income to net cash provided by operating activities:

         

Equity in loss (earnings) of consolidated subsidiaries

      —          (654.5 )      654.5        —     

Depreciation and amortization

      129.0        —          —          129.0   

Amortization of deferred financing costs and debt issuance discount

      29.1        —          —          29.1   

(Income) loss from equity method investments

      (16.6 )      —          —          (16.6 ) 

Loss (gain) on remeasurement of foreign denominated transactions

      16.1        —          —          16.1   

Amortization of defined pension and postretirement benefits

      (1.9 )      —          —          (1.9 ) 

Net losses (gains) on derivatives

      15.3        —          —          15.3   

Net losses (gains) on refranchisings and dispositions of assets

      10.0        —          —          10.0   

Bad debt expense (recoveries), net

      (0.1 )      —          —          (0.1 ) 

Share-based compensation expense

      25.9        —          —          25.9   

Deferred income taxes

      34.6        —          —          34.6   

Changes in current assets and liabilities, excluding acquisitions and dispositions:

         

Trade and notes receivable

      20.0        —          —          20.0   

Inventories and other current assets

      (3.0 )      —          —          (3.0 ) 

Accounts and drafts payable

      11.8        —          —          11.8   

Accrued advertising

      4.0        —          —          4.0   

Other accrued liabilities

      (23.8 )      —          —          (23.8 ) 

Other long-term assets and liabilities

      0.9        —          —          0.9   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      905.8        —          —          905.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

         

Payments for property and equipment

      (18.2 )      —          —          (18.2 ) 

Proceeds from refranchisings, disposition of assets and restaurant closures

      18.1        —          —          18.1   

Return of investment on direct financing leases

      12.5        —          —          12.5   

Settlement of derivatives, net

      4.9        —          —          4.9   

Other investing activities, net

      2.0        —          —          2.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) investing activities

      19.3        —          —          19.3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

         

Repayments of term debt and capital leases

      (52.7 )      —            (52.7 ) 

Distributions on partnership units

      —          (396.9 )      —          (396.9 ) 

Capital contribution from RBI Inc.

      —          12.5        —          12.5   

Distributions to RBI Inc.

      —          (28.5 )      —          (28.5 ) 

Other financing activities, net

      0.8        —          —          0.8   

Intercompany financing

      (412.9 )      412.9        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) financing activities

      (464.8 )      —          —          (464.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rates on cash and cash equivalents

      14.6        —          —          14.6   

Increase (decrease) in cash and cash equivalents

      474.9        —          —          474.9   

Cash and cash equivalents at beginning of period

      753.7        —          —          753.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 1,228.6      $ —        $ —        $ 1,228.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES

Condensed Consolidating Statements of Cash Flows

(In millions)

Nine Months Ended September 30, 2015

 

     Consolidated
Borrowers		     RBILP     Eliminations     Consolidated  

Cash flows from operating activities:

         

Net income

    $ 327.2      $ 327.2      $ (327.2 )    $ 327.2   

Adjustments to reconcile net income to net cash provided by operating activities:

         

Equity in loss (earnings) of consolidated subsidiaries

      —          (327.2 )      327.2        —     

Depreciation and amortization

      137.8        —          —          137.8   

Loss on early extinguishment of debt

      40.0        —          —          40.0   

Amortization of deferred financing costs and debt issuance discount

      25.0        —          —          25.0   

(Income) loss from equity method investments

      5.7        —          —          5.7   

Loss (gain) on remeasurement of foreign denominated transactions

      31.1        —          —          31.1   

Net losses (gains) on derivatives

      50.1        —          —          50.1   

Net losses (gains) on refranchisings and dispositions of assets

      (5.8 )      —          —          (5.8 ) 

Bad debt expense (recoveries), net

      0.9        —          —          0.9   

Share-based compensation expense

      36.9        —          —          36.9   

Acquisition accounting impact on cost of sales

      0.5            0.5   

Deferred income taxes

      (114.8 )      —          —          (114.8 ) 

Changes in current assets and liabilities, excluding acquisitions and dispositions:

         

Reclassification of restricted cash to cash and cash equivalents

      79.2        —          —          79.2   

Trade and notes receivable

      35.4        —          —          35.4   

Inventories and other current assets

      (5.1 )      —          —          (5.1 ) 

Accounts and drafts payable

      138.8        —          —          138.8   

Accrued advertising

      29.8        —          —          29.8   

Other accrued liabilities

      172.2        —          —          172.2   

Other long-term assets and liabilities

      (34.5 )        —          (34.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      950.4        —          —          950.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

         

Payments for property and equipment

      (82.9 )      —          —          (82.9 ) 

Proceeds from refranchisings, disposition of assets and restaurant closures

      16.9        —          —          16.9   

Return of investment on direct financing leases

      12.1        —          —          12.1   

Settlement of derivatives, net

      11.8        —          —          11.8   

Other investing activities, net

      2.1        —          —          2.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) investing activities

      (40.0 )      —          —          (40.0 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

         

Proceeds from Senior Notes

      1,250.0        —          —          1,250.0   

Repayments of term debt, Tim Hortons Notes and capital leases

      (2,610.6 )      —          —          (2,610.6 ) 

Payment of financing costs

      (81.3 )      —          —          (81.3 ) 

Distributions on partnership units

      —          (238.8 )      —          (238.8 ) 

Distributions to RBI Inc.

      —          (0.1 )      —          (0.1 ) 

Other financing activities, net

      (3.9 )      —          —          (3.9 ) 

Intercompany financing

      (238.9 )      238.9        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used for) financing activities

      (1,684.7 )      —          —          (1,684.7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rates on cash and cash equivalents

      (57.2 )      —          —          (57.2 ) 

Increase (decrease) in cash and cash equivalents

      (831.5 )      —          —          (831.5 ) 

Cash and cash equivalents at beginning of period

      1,803.2        —          —          1,803.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 971.7      $ —        $ —        $ 971.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

v3.5.0.2
Description of Business and Organization - Additional Information (Detail)
Sep. 30, 2016
Restaurants
Country
Basis Of Presentation [Line Items]  
Number of franchised or owned 19,735
Number of countries in which company and franchise restaurants operated | Country 100
Percentage of franchised Tim Hortons and Burger King restaurants 100.00%
Tim Hortons [Member]  
Basis Of Presentation [Line Items]  
Number of franchised or owned 4,492
Burger King [Member]  
Basis Of Presentation [Line Items]  
Number of franchised or owned 15,243
v3.5.0.2
Earnings (Loss) Per Unit - Additional information (Detail)
 9 Months Ended
Sep. 30, 2016
Burger King Worldwide [Member]  
Earnings Per Share Disclosure [Line Items]  
Conversion basis One-for-one
v3.5.0.2
Earnings (Loss) Per Unit - Basic and Diluted Earnings Per Unit (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]        
Net income attributable to common unitholders $ 170.1 $ 114.5 $ 449.2 $ 120.6
Basic and diluted partnership units:        
Total weighted average basic and diluted units outstanding 429.1 467.0 430.0 467.0
Class A Common Units [Member]        
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]        
Net income attributable to common unitholders $ 86.3 $ 49.6 $ 227.2 $ 52.2
Basic and diluted partnership units:        
Total weighted average basic and diluted units outstanding 202.0 202.0 202.0 202.0
Earnings per unit - basic and diluted:        
Earnings per unit / share - basic and diluted $ 0.43 $ 0.25 $ 1.12 $ 0.26
Partnerships Exchangeable Units [Member]        
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]        
Net income attributable to common unitholders $ 83.8 $ 64.9 $ 222.0 $ 68.4
Basic and diluted partnership units:        
Total weighted average basic and diluted units outstanding 227.1 265.0 228.0 265.0
Earnings per unit - basic and diluted:        
Earnings per unit / share - basic and diluted $ 0.37 $ 0.25 $ 0.97 $ 0.26
v3.5.0.2
Inventories and Other Current Assets, Net - Schedule of Inventories and Other Current Assets, Net (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Inventories And Other Assets Current [Abstract]    
Raw materials $ 29.0 $ 22.7
Finished goods 56.2 58.6
Total inventory 85.2 81.3
Refundable and prepaid income taxes 51.7 21.5
Prepaids and other current assets 33.9 29.4
Inventories and other current assets, net $ 170.8 $ 132.2
v3.5.0.2
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Finite And Indefinite Lived Intangible Assets [Line Items]    
Identifiable assets, Gross $ 1,110.3 $ 1,089.5
Goodwill 4,762.0 4,574.4
Identifiable assets, accumulated amortization (270.4) (214.3)
Indefinite lived intangible assets, Net 8,594.1 8,272.6
Identifiable assets, Net 839.9 875.2
Intangible assets, net 9,434.0 9,147.8
Tim Hortons [Member] | Trade Names [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Indefinite lived intangible assets, Net 6,476.1 6,175.4
Burger King [Member] | Trade Names [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Indefinite lived intangible assets, Net 2,118.0 2,097.2
Franchise Agreements [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Identifiable assets, Gross 665.7 653.0
Identifiable assets, accumulated amortization (128.4) (106.8)
Identifiable assets, Net 537.3 546.2
Favorable Lease [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Identifiable assets, Gross 444.6 436.5
Identifiable assets, accumulated amortization (142.0) (107.5)
Identifiable assets, Net $ 302.6 $ 329.0
v3.5.0.2
Intangible Assets, Net and Goodwill - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense on intangible assets $ 18.1 $ 19.2 $ 54.2 $ 58.8
v3.5.0.2
Other Assets, Net - Other Assets, Net (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Inventories And Other Non Current Assets [Abstract]    
Derivative assets $ 672.1 $ 830.9
Equity method investments 152.8 139.0
Other assets 117.1 83.5
Other assets, net $ 942.0 $ 1,053.4
v3.5.0.2
Equity Method Investments - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]        
Equity method investments $ 152.8 $ 152.8   $ 139.0
Carrols Restaurant Group, Inc. [Member]        
Schedule of Equity Method Investments [Line Items]        
Quoted market price $ 124.4 $ 124.4    
TIMWEN Partnership [Member]        
Schedule of Equity Method Investments [Line Items]        
Joint-venture interest 50.00% 50.00%    
Cash distributions $ 2.7 $ 8.3    
Contingent rent expense 5.1 14.7    
Burger King France SAS [Member]        
Schedule of Equity Method Investments [Line Items]        
Increase in carrying value of investment and noncash dilution gain on the issuance of capital stock   11.6    
BK Brasil Operacao E Assesoria A Restaurantes S.A. ("Brazil JV") [Member]        
Schedule of Equity Method Investments [Line Items]        
Increase in carrying value of investment and noncash dilution gain on the issuance of capital stock     $ 10.9  
Equity Method Investee [Member]        
Schedule of Equity Method Investments [Line Items]        
Accounts receivable from equity method investments $ 20.0 $ 20.0   $ 23.9
v3.5.0.2
Equity Method Investments - Summary of Equity Method Investment (Detail)
Sep. 30, 2016
TIMWEN Partnership [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity method investment ownership percentage 50.00%
TIMWEN Partnership [Member] | Canada [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity method investment ownership percentage 50.00%
Carrols Restaurant Group, Inc. [Member] | United States [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity method investment ownership percentage 20.81%
Pangaea Foods (China) Holdings, Ltd. [Member] | China [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity method investment ownership percentage 27.50%
v3.5.0.2
Equity Method Investments - Summary of Franchise and Property Revenue (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues from affiliates:        
Franchise royalties $ 261.1 $ 242.8 $ 738.7 $ 697.8
Property revenues 194.6 191.7 563.9 567.7
Franchise fees and other revenue 33.6 39.3 96.3 116.5
Total 489.3 473.8 1,398.9 1,382.0
Affiliates [Member]        
Revenues from affiliates:        
Franchise royalties 34.9 23.0 94.2 67.3
Property revenues 6.9 6.7 21.1 20.9
Franchise fees and other revenue 6.8 2.4 14.7 5.8
Total $ 48.6 $ 32.1 $ 130.0 $ 94.0
v3.5.0.2
Other Accrued Liabilities and Other Liabilities, net - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Current:    
Dividend payable $ 141.3 $ 128.3
Interest payable 82.6 63.1
Accrued compensation and benefits 46.2 61.6
Taxes payable - current 79.3 46.9
Deferred income - current 48.6 33.5
Closed property reserve 10.1 14.0
Restructuring and other provisions 8.4 13.5
Derivatives liabilities - current 3.4  
Other 86.9 77.4
Other accrued liabilities 506.8 438.3
Noncurrent:    
Unfavorable leases 292.1 322.0
Taxes payable - noncurrent 256.2 236.7
Accrued pension 77.9 80.2
Derivatives liabilities - noncurrent 164.6 47.3
Lease liability - noncurrent 28.5 29.5
Deferred income - noncurrent 27.6 23.7
Other 56.6 56.5
Other liabilities, net $ 903.5 $ 795.9
v3.5.0.2
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]    
Other $ 92.6 $ 88.5
Less: unamortized discount and deferred financing costs (196.5) (224.3)
Total debt, net 8,496.7 8,501.3
Total debt, net 8,496.7 8,501.3
Less: current maturities of debt (75.4) (39.0)
Total long-term debt $ 8,421.3 8,462.3
Term Loan Facility [Member]    
Debt Instrument [Line Items]    
Maturity Dates Dec. 12, 2021  
Term Loan Facility $ 5,059.0 5,097.7
2015 Senior Notes [Member]    
Debt Instrument [Line Items]    
Maturity Dates Jan. 15, 2022  
Senior Notes $ 1,250.0 1,250.0
2014 Senior Notes [Member]    
Debt Instrument [Line Items]    
Maturity Dates Apr. 01, 2022  
Senior Notes $ 2,250.0 2,250.0
Tim Hortons Notes [Member]    
Debt Instrument [Line Items]    
Tim Hortons Notes $ 41.6 $ 39.4
v3.5.0.2
Long- Term Debt - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Interest Expense, Net [Member]          
Debt Instrument [Line Items]          
Amortization of deferred financing costs $ 7.9 $ 7.6 $ 23.5 $ 18.7  
2015 Senior Notes [Member]          
Debt Instrument [Line Items]          
Deferred financing costs 7.8   7.8   $ 9.0
2014 Senior Notes [Member]          
Debt Instrument [Line Items]          
Deferred financing costs 36.7   36.7   40.8
Term Loan Facility [Member]          
Debt Instrument [Line Items]          
Debt instrument unamortized discount 37.6   37.6   43.2
Deferred financing costs $ 114.4   $ 114.4   $ 131.3
v3.5.0.2
Long- Term Debt - Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility [Member]
Sep. 30, 2016
USD ($)
Line of Credit Facility [Line Items]  
Amount outstanding at the credit facility $ 0
Letter of credit sublimit as part of revolving credit facility 125,000,000
Amount withdrawn from revolving credit facility 1,500,000
Remaining borrowing capacity $ 498,500,000
v3.5.0.2
Long-Term Debt - Schedule of Interest Expense, Net (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Debt Instrument [Line Items]        
Amortization of deferred financing costs and debt issuance discount $ 9.8 $ 9.7 $ 29.1 $ 25.0
Capital lease obligations 5.2 5.3 15.0 15.7
Other 0.3 0.7 2.0 2.3
Interest income (1.3) (0.9) (2.8) (3.3)
Interest expense, net 117.3 116.0 349.6 362.3
Term Loan Facility [Member]        
Debt Instrument [Line Items]        
Interest expense 54.6 52.6 160.5 197.8
2015 Senior Notes [Member]        
Debt Instrument [Line Items]        
Interest expense 14.5 14.4 43.4 20.7
2014 Senior Notes [Member]        
Debt Instrument [Line Items]        
Interest expense 33.8 33.8 101.3 101.3
Tim Hortons Notes [Member]        
Debt Instrument [Line Items]        
Interest expense $ 0.4 $ 0.4 $ 1.1 $ 2.8
v3.5.0.2
Income Taxes - Additional Information (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Tax Disclosure [Abstract]        
Effective income tax rate 21.30% 19.60% 20.70% 30.10%
v3.5.0.2
Equity - Additional Information (Detail) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Stockholders Equity [Line Items]    
Partnership exchangeable units 6,690,115  
Noncontrolling interest recognized in connection with VIE restaurants $ 4.4 $ 0.7
Class A Common Units [Member]    
Stockholders Equity [Line Items]    
Preferred Stock, Dividend Rate, Percentage 9.00%  
v3.5.0.2
Equity - Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) ("AOCI") (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Accumulated other comprehensive income (loss), Beginning balance     $ (1,467.8)  
Foreign currency translation adjustment $ (131.7) $ (644.8) 538.8 $ (1,543.5)
Net change in fair value of derivatives, net of tax     (232.3)  
Amounts reclassified to earnings of cash flow hedges, net of tax 5.4 0.2 10.5 19.2
Amortization of prior service (credits) costs, net of tax (0.4) (0.4) (1.3) (1.3)
Amortization of actuarial (gains) losses, net of tax 0.1 0.4 0.2 1.3
Accumulated other comprehensive income (loss), Ending balance (1,151.9)   (1,151.9)  
Gains (Losses) on Cash Flow Hedges [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Accumulated other comprehensive income (loss), Beginning balance     637.0  
Net change in fair value of derivatives, net of tax     (232.3)  
Amounts reclassified to earnings of cash flow hedges, net of tax 5.4 $ 0.2 10.5 $ 19.2
Accumulated other comprehensive income (loss), Ending balance 415.2   415.2  
Defined Benefit Pension [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Accumulated other comprehensive income (loss), Beginning balance     (24.7)  
Amortization of prior service (credits) costs, net of tax     (1.3)  
Amortization of actuarial (gains) losses, net of tax     0.2  
Accumulated other comprehensive income (loss), Ending balance (25.8)   (25.8)  
Foreign Currency Translation Adjustments [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Accumulated other comprehensive income (loss), Beginning balance     (2,080.1)  
Foreign currency translation adjustment     538.8  
Accumulated other comprehensive income (loss), Ending balance $ (1,541.3)   $ (1,541.3)  
v3.5.0.2
Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate derivative contracts, Income tax (expense) benefit $ 1.9 $ 0.0 $ 3.7 $ 7.3
Total reclassifications, Net of tax (5.4) (0.2) (10.5) (19.2)
Total reclassifications, Net of tax (5.1) (0.2) (9.4) (19.2)
Gains (Losses) on Cash Flow Hedges [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Forward-currency contracts, Cost of sales (1.4) 3.3 1.1 9.6
Interest rate derivative contracts, Interest expense, net (7.3) (0.2) (14.2) (26.5)
Interest rate derivative contracts, Income tax (expense) benefit 1.9   3.7 7.3
Total reclassifications, Net of tax (5.4) (0.2) (10.5) (19.2)
Gains (Losses) on Cash Flow Hedges [Member] | Interest Expense, Net [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate derivative contracts, Interest expense, net (5.9) (3.5) (15.3) (8.5)
Gains (Losses) on Cash Flow Hedges [Member] | Other Operating Expenses (Income) , Net [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate derivative contracts, Interest expense, net       (27.6)
Defined Benefit Pension [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Amortization of prior service credits (costs), SG&A 0.7 0.8 2.2 2.2
Amortization of actuarial gains (losses), SG&A (0.1) (0.7) (0.3) (2.1)
Defined benefit pension plan expense before tax 0.6 0.1 1.9 0.1
Defined benefit, Income tax (expense) benefit (0.3) $ (0.1) (0.8) $ (0.1)
Total reclassifications, Net of tax $ 0.3   $ 1.1  
v3.5.0.2
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value $ 673.2 $ 837.5
Total liabilities at fair value 168.0 47.2
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 106.7 40.9
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Other Accrued Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 3.4  
Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable , Net [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 1.1 6.6
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 57.9 6.3
Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 672.1 830.9
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 673.2 837.5
Total liabilities at fair value 168.0 47.2
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate [Member] | Other Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 106.7 40.9
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Other Accrued Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 3.4  
Level 2 [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Foreign Currency [Member] | Trade and Notes Receivable , Net [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value 1.1 6.6
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other Liabilities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total liabilities at fair value 57.9 6.3
Level 2 [Member] | Derivatives Designated as Net Investment Hedges [Member] | Foreign Currency [Member] | Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets at fair value $ 672.1 $ 830.9
v3.5.0.2
Fair Value Measurements - Additional Information (Detail) - USD ($)
$ in Billions
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument Fair Value Carrying Value [Abstract]    
Fair value of variable rate term debt and bonds $ 8.8 $ 8.7
Carrying amount, net of original issue discount $ 8.6 $ 8.6
v3.5.0.2
Derivative Instruments - Additional Information (Detail)
 1 Months Ended 3 Months Ended 9 Months Ended
Oct. 31, 2014
USD ($)
Mar. 31, 2015
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2016
EUR (€)
Sep. 30, 2016
CAD
May 31, 2015
USD ($)
Interest_Rate_Swaps
Nov. 30, 2014
USD ($)
Interest_Rate_Swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Net cash provided by (used for) investing activities     $ 19,300,000 $ (40,000,000)        
Settlement of derivatives     (4,900,000) (11,800,000)        
Maximum [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount     149,200,000          
Fixed Income Interest Rate [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount       115,000,000        
Variable Income Interest Rate [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount       200,000,000        
Interest Expense, Net [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Amount of pre-tax losses in AOCI expect to be reclassified into interest expense     $ (12,500,000)          
Interest Rate Swaps [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Amount on 2014 term loan facility for interest payments             $ 2,500,000,000  
Cross-currency rate swaps, maturity date Mar. 31, 2021   Mar. 31, 2021          
Foreign currency forward contract notional amount $ 6,750,000,000   $ 6,690,400,000       $ 2,500,000,000 $ 6,733,100,000
Number of sequential interest rate swap | Interest_Rate_Swaps             6 6
Derivative, type of interest rate paid on swap     Fixed          
Settlement of derivative notional amount   $ 42,700,000            
Mandatory prepayment   $ 42,700,000            
Net cash provided by (used for) investing activities       $ 36,200,000        
Interest Rate Swaps [Member] | Interest Expense, Net [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Net unrealized loss remaining in AOCI     $ 84,600,000          
Interest Rate Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Cross-currency rate swaps, maturity date     Mar. 31, 2021          
Foreign currency forward contract notional amount     $ 1,000,000,000          
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount     $ 5,690,400,000          
Cross Currency Interest Rate Contract [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Cross-currency rate swaps, maturity date       Sep. 28, 2017        
Foreign currency forward contract notional amount       $ 315,000,000        
Foreign currency forward contract - net unrealized gains       31,800,000        
Settlement of derivatives       $ 52,100,000        
Cross Currency Interest Rate Contract [Member] | Maximum [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Outstanding cross currency rate swaps     6.525%          
Cross Currency Interest Rate Contract [Member] | Minimum [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Outstanding cross currency rate swaps     3.948%          
Cross Currency Interest Rate Contract [Member] | Fixed Income Interest Rate [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount     $ 1,200,000,000   € 1,107,800,000      
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Foreign currency forward contract notional amount | CAD           CAD 5,641,700,000    
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member] | Maximum [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Outstanding cross currency rate swaps     7.002%          
Cross Currency Interest Rate Contract [Member] | Canadian Dollar [Member] | Minimum [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Outstanding cross currency rate swaps     4.802%          
Cross Currency Interest Rate Contract [Member] | United States Dollar [Member]                
Derivative Instruments and Hedging Activities Disclosures [Line Items]                
Cross-currency rate swaps, maturity date     Mar. 31, 2021          
Foreign currency forward contract notional amount     $ 5,000,000,000          
v3.5.0.2
Derivative Instruments - Quantitative Disclosures of Derivative Instruments (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings     $ (15.3) $ (50.1)
Gain (Loss) Recognized in Other Operating Expenses (Income), net   $ 1.5   (37.3)
Interest Rate Swaps [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Operating Expenses (Income), net, Ineffectiveness of cash flow hedges       (1.6)
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Operating Expenses (Income), net       (12.4)
Derivatives Not Designated as Hedging Instruments [Member] | Forward Currency Contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Operating Expenses (Income), net   1.5   4.3
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Caps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Expense, Net [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings $ (5.9) (3.5) (15.3) (8.5)
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Swaps [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Comprehensive Income (Loss) 1.0 (53.4) (71.6) (139.3)
Derivatives Designated as Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Operating Income (Expense) Net [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings       (27.6)
Derivatives Designated as Cash Flow Hedges [Member] | Forward Currency Contracts [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Comprehensive Income (Loss) 2.1 8.0 (7.7) 13.5
Derivatives Designated as Cash Flow Hedges [Member] | Forward Currency Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings (1.4) 3.3 1.1 9.6
Derivatives Designated as Net Investment Hedges [Member] | Cross-Currency Rate Swaps [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ 20.1 $ 397.7 $ (199.6) $ 666.7
v3.5.0.2
Franchise and Property Revenues - Summary of Franchise and Property Revenues (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Franchisor Revenue [Abstract]        
Franchise royalties $ 261.1 $ 242.8 $ 738.7 $ 697.8
Property revenues 194.6 191.7 563.9 567.7
Franchise fees and other revenue 33.6 39.3 96.3 116.5
Franchise and property revenues $ 489.3 $ 473.8 $ 1,398.9 $ 1,382.0
v3.5.0.2
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Income and Expenses [Abstract]        
Net losses (gains) on disposal of assets, restaurant closures and refranchisings $ 3.3 $ 0.2 $ 19.6 $ (3.2)
Litigation settlements and reserves, net 0.4 (0.1) 2.0 1.8
Net losses (gains) on derivatives   (1.5)   37.3
Net losses (gains) on foreign exchange 4.1 10.8 16.1 45.1
Other, net 0.9   0.5 1.2
Other operating expenses (income), net $ 8.7 $ 9.4 $ 38.2 $ 82.2
v3.5.0.2
Variable Interest Entities - Schedule of Number of Restaurant VIEs Including Primary Beneficiary TH (Detail) - Restaurants
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Restaurant VIEs [Member]      
Variable Interest Entity [Line Items]      
Number of consolidated Restaurant VIEs 104 141 198
v3.5.0.2
Variable Interest Entities - Schedule of Sales and Operating Costs and Expenses Associated with VIEs, Prior to Consolidation Adjustments (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Variable Interest Entity [Line Items]        
Sales $ 586.4 $ 545.9 $ 1,635.5 $ 1,613.2
Restaurant VIEs [Member]        
Variable Interest Entity [Line Items]        
Sales 32.4 54.6 98.1 180.2
Operating costs and expenses $ 31.3 $ 53.5 $ 94.8 $ 176.6
v3.5.0.2
Segment Reporting - Additional Information (Detail) - Segment
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]        
Number of operating segments     2  
Number of reportable segments     2  
Tim Hortons [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Number of operating segments     1  
Burger King [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Number of operating segments     1  
Canada and United States [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Revenues percentage 10.00% 10.00% 10.00% 10.00%
v3.5.0.2
Segment Reporting - Revenues by Operating Segment and Country (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenue, Major Customer [Line Items]        
Total revenues $ 1,075.7 $ 1,019.7 $ 3,034.4 $ 2,995.2
Tim Hortons [Member]        
Revenue, Major Customer [Line Items]        
Total revenues 789.9 737.7 2,207.5 2,185.4
Burger King [Member]        
Revenue, Major Customer [Line Items]        
Total revenues 285.8 282.0 826.9 809.8
Canada [Member]        
Revenue, Major Customer [Line Items]        
Total revenues 708.8 658.1 1,973.0 1,943.1
United States [Member]        
Revenue, Major Customer [Line Items]        
Total revenues 249.2 244.3 725.0 726.2
Other [Member]        
Revenue, Major Customer [Line Items]        
Total revenues $ 117.7 $ 117.3 $ 336.4 $ 325.9
v3.5.0.2
Segment Reporting - Reconciliation of Segment Income to Net Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]        
Acquisition accounting impact on cost of sales       $ 0.5
Impact of equity method investments $ (2.6) $ 1.0 $ (16.6) 5.7
Other operating expenses (income), net 8.7 9.4 38.2 82.2
EBITDA 463.7 387.1 1,303.8 1,008.0
Depreciation and amortization 43.2 43.1 128.7 137.8
Income from operations 420.5 344.0 1,175.1 870.2
Interest expense, net 117.3 116.0 349.6 362.3
(Gain) loss on early extinguishment of debt   0.4   40.0
Income tax expense 64.6 44.7 171.0 140.7
Net income 238.6 182.9 654.5 327.2
Operating Segments [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Segment income 488.9 440.7 1,375.8 1,223.6
Operating Segments [Member] | Tim Hortons [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Segment income 287.1 244.0 793.9 663.3
Operating Segments [Member] | Burger King [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Segment income 201.8 196.7 581.9 560.3
Unallocated Management G&A [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Share-based compensation and non-cash incentive compensation expense 11.8 15.5 31.0 37.5
Acquisition accounting impact on cost of sales   (0.3)   0.5
Integration costs 4.4   10.4  
Impact of equity method investments 0.3 4.7 (7.6) 15.7
Other operating expenses (income), net $ 8.7 9.4 $ 38.2 82.2
Unallocated Management G&A [Member] | Tim Hortons [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
TH transaction and restructuring costs   $ 24.3   $ 79.7
v3.5.0.2
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Detail) - USD ($)
$ in Millions
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Current assets:        
Cash and cash equivalents $ 1,228.6 $ 753.7 $ 971.7 $ 1,803.2
Trade and notes receivable, net 374.3 421.7    
Inventories and other current assets, net 170.8 132.2    
Advertising fund restricted assets 57.7 57.5    
Total current assets 1,831.4 1,365.1    
Property and equipment, net 2,095.8 2,150.6    
Intangible assets, net 9,434.0 9,147.8    
Goodwill 4,762.0 4,574.4    
Net investment in property leased to franchisees 100.1 117.2    
Investment in subsidiaries 152.8 139.0    
Other assets, net 942.0 1,053.4    
Total assets 19,165.3 18,408.5    
Current liabilities:        
Accounts and drafts payable 352.1 361.5    
Other accrued liabilities 506.8 438.3    
Gift card liability 124.2 168.5    
Advertising fund liabilities 112.7 93.6    
Current portion of long term debt and capital leases 94.1 56.1    
Total current liabilities 1,189.9 1,118.0    
Term debt, net of current portion 8,421.3 8,462.3    
Capital leases, net of current portion 213.9 203.4    
Other liabilities, net 903.5 795.9    
Deferred income taxes, net 1,648.7 1,618.8    
Total liabilities 12,377.3 12,198.4    
Partnership preferred units 3,297.0 3,297.0    
Partners' capital:        
Accumulated other comprehensive income (loss) (1,151.9) (1,467.8)    
Total Partners' capital 3,486.6 2,912.4    
Noncontrolling interests 4.4 0.7    
Total equity 3,491.0 2,913.1    
Total liabilities, Partnership preferred units and equity 19,165.3 18,408.5    
Borrowers [Member]        
Current assets:        
Cash and cash equivalents 1,228.6 753.7 $ 971.7 $ 1,803.2
Trade and notes receivable, net 374.3 421.7    
Inventories and other current assets, net 170.8 132.2    
Advertising fund restricted assets 57.7 57.5    
Total current assets 1,831.4 1,365.1    
Property and equipment, net 2,095.8 2,150.6    
Intangible assets, net 9,434.0 9,147.8    
Goodwill 4,762.0 4,574.4    
Net investment in property leased to franchisees 100.1 117.2    
Other assets, net 942.0 1,053.4    
Total assets 19,165.3 18,408.5    
Current liabilities:        
Accounts and drafts payable 352.1 361.5    
Other accrued liabilities 365.5 310.0    
Gift card liability 124.2 168.5    
Advertising fund liabilities 112.7 93.6    
Current portion of long term debt and capital leases 94.1 56.1    
Total current liabilities 1,048.6 989.7    
Term debt, net of current portion 8,421.3 8,462.3    
Capital leases, net of current portion 213.9 203.4    
Other liabilities, net 903.5 795.9    
Payables to affiliates 141.3 128.3    
Deferred income taxes, net 1,648.7 1,618.8    
Total liabilities 12,377.3 12,198.4    
Partners' capital:        
Common shares 6,953.2 7,318.1    
Retained earnings 982.3 359.1    
Accumulated other comprehensive income (loss) (1,151.9) (1,467.8)    
Total Partners' capital 6,783.6 6,209.4    
Noncontrolling interests 4.4 0.7    
Total equity 6,788.0 6,210.1    
Total liabilities, Partnership preferred units and equity 19,165.3 18,408.5    
Restaurant Brands International Limited Partnership [Member]        
Current assets:        
Intercompany receivable 141.3 128.3    
Investment in subsidiaries 6,788.0      
Investment in subsidiaries   6,210.1    
Total assets 6,929.3 6,338.4    
Current liabilities:        
Other accrued liabilities 141.3 128.3    
Total current liabilities 141.3 128.3    
Total liabilities 141.3 128.3    
Partnership preferred units 3,297.0 3,297.0    
Partners' capital:        
Accumulated other comprehensive income (loss) (1,151.9) (1,467.8)    
Total Partners' capital 3,486.6 2,912.4    
Noncontrolling interests 4.4 0.7    
Total equity 3,491.0 2,913.1    
Total liabilities, Partnership preferred units and equity 6,929.3 6,338.4    
Class A Common Units [Member]        
Partners' capital:        
Class A common units 3,235.9 2,876.7    
Total equity 3,235.9 2,876.7    
Class A Common Units [Member] | Restaurant Brands International Limited Partnership [Member]        
Partners' capital:        
Class A common units 3,235.9 2,876.7    
Partnerships Exchangeable Units [Member]        
Partners' capital:        
Partnership exchangeable units 1,402.6 1,503.5    
Total equity 1,402.6 1,503.5    
Partnerships Exchangeable Units [Member] | Restaurant Brands International Limited Partnership [Member]        
Partners' capital:        
Partnership exchangeable units 1,402.6 1,503.5    
Eliminations [Member]        
Current assets:        
Intercompany receivable (141.3) (128.3)    
Investment in subsidiaries (6,788.0)      
Investment in subsidiaries   (6,210.1)    
Total assets (6,929.3) (6,338.4)    
Current liabilities:        
Payables to affiliates (141.3) (128.3)    
Total liabilities (141.3) (128.3)    
Partners' capital:        
Common shares (6,953.2) (7,318.1)    
Retained earnings (982.3) (359.1)    
Accumulated other comprehensive income (loss) 1,151.9 1,467.8    
Total Partners' capital (6,783.6) (6,209.4)    
Noncontrolling interests (4.4) (0.7)    
Total equity (6,788.0) (6,210.1)    
Total liabilities, Partnership preferred units and equity $ (6,929.3) $ (6,338.4)    
v3.5.0.2
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues:        
Sales $ 586.4 $ 545.9 $ 1,635.5 $ 1,613.2
Franchise and property revenues 489.3 473.8 1,398.9 1,382.0
Total revenues 1,075.7 1,019.7 3,034.4 2,995.2
Cost of sales 455.0 446.6 1,279.0 1,354.6
Franchise and property expenses 111.9 114.4 330.2 365.2
Selling, general and administrative expenses 82.2 104.3 228.5 317.3
(Income) loss from equity method investments (2.6) 1.0 (16.6) 5.7
Other operating expenses (income), net 8.7 9.4 38.2 82.2
Total operating costs and expenses 655.2 675.7 1,859.3 2,125.0
Income from operations 420.5 344.0 1,175.1 870.2
Interest expense, net 117.3 116.0 349.6 362.3
(Gain) loss on early extinguishment of debt   0.4   40.0
Income before income taxes 303.2 227.6 825.5 467.9
Income tax expense 64.6 44.7 171.0 140.7
Net income 238.6 182.9 654.5 327.2
Net income 238.6 182.9 654.5 327.2
Net income attributable to noncontrolling interests 1.0 0.9 2.8 2.9
Partnership preferred unit distributions 67.5 67.5 202.5 203.7
Net income (loss) attributable to common unitholders / shareholders 170.1 114.5 449.2 120.6
Total comprehensive income (loss) 131.8 (149.4) 970.4 (717.8)
Eliminations [Member]        
Revenues:        
Equity in earnings of consolidated subsidiaries (238.6) (182.9) (654.5) (327.2)
Net income (238.6) (182.9) (654.5) (327.2)
Net income attributable to noncontrolling interests (1.0) (0.9) (2.8) (2.9)
Net income (loss) attributable to common unitholders / shareholders (237.6) (182.0) (651.7) (324.3)
Total comprehensive income (loss) (131.8) 149.4 (970.4) 717.8
Borrowers [Member]        
Revenues:        
Sales 586.4 545.9 1,635.5 1,613.2
Franchise and property revenues 489.3 473.8 1,398.9 1,382.0
Total revenues 1,075.7 1,019.7 3,034.4 2,995.2
Cost of sales 455.0 446.6 1,279.0 1,354.6
Franchise and property expenses 111.9 114.4 330.2 365.2
Selling, general and administrative expenses 82.2 104.3 228.5 317.3
(Income) loss from equity method investments (2.6) 1.0 (16.6) 5.7
Other operating expenses (income), net 8.7 9.4 38.2 82.2
Total operating costs and expenses 655.2 675.7 1,859.3 2,125.0
Income from operations 420.5 344.0 1,175.1 870.2
Interest expense, net 117.3 116.0 349.6 362.3
(Gain) loss on early extinguishment of debt   0.4   40.0
Income before income taxes 303.2 227.6 825.5 467.9
Income tax expense 64.6 44.7 171.0 140.7
Net income 238.6 182.9 654.5 327.2
Net income 238.6 182.9 654.5 327.2
Net income attributable to noncontrolling interests 1.0 0.9 2.8 2.9
Net income (loss) attributable to common unitholders / shareholders 237.6 182.0 651.7 324.3
Total comprehensive income (loss) 131.8 (149.4) 970.4 (717.8)
Restaurant Brands International Limited Partnership [Member]        
Revenues:        
Equity in earnings of consolidated subsidiaries 238.6 182.9 654.5 327.2
Net income 238.6 182.9 654.5 327.2
Net income attributable to noncontrolling interests 1.0 0.9 2.8 2.9
Partnership preferred unit distributions 67.5 67.5 202.5 203.7
Net income (loss) attributable to common unitholders / shareholders 170.1 114.5 449.2 120.6
Total comprehensive income (loss) $ 131.8 $ (149.4) $ 970.4 $ (717.8)
v3.5.0.2
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:        
Net income $ 238.6 $ 182.9 $ 654.5 $ 327.2
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization     129.0 137.8
Loss on early extinguishment of debt       40.0
Amortization of deferred financing costs and debt issuance discount 9.8 9.7 29.1 25.0
(Income) loss from equity method investments (2.6) 1.0 (16.6) 5.7
Loss (gain) on remeasurement of foreign denominated transactions     16.1 31.1
Amortization of defined pension and postretirement benefits     (1.9)  
Net losses (gains) on derivatives     15.3 50.1
Net losses (gains) on refranchisings and dispositions of assets     10.0 (5.8)
Bad debt expense (recoveries), net     (0.1) 0.9
Share-based compensation expense     25.9 36.9
Acquisition accounting impact on cost of sales       0.5
Deferred income taxes     34.6 (114.8)
Changes in current assets and liabilities, excluding acquisitions and dispositions:        
Reclassification of restricted cash to cash and cash equivalents       79.2
Trade and notes receivable     20.0 35.4
Inventories and other current assets     (3.0) (5.1)
Accounts and drafts payable     11.8 138.8
Accrued advertising     4.0 29.8
Other accrued liabilities     (23.8) 172.2
Other long-term assets and liabilities     0.9 (34.5)
Net cash provided by operating activities     905.8 950.4
Cash flows from investing activities:        
Payments for property and equipment     (18.2) (82.9)
Proceeds from refranchisings, disposition of assets and restaurant closures     18.1 16.9
Proceeds from refranchisings, disposition of assets and restaurant closures     18.1  
Return of investment on direct financing leases     12.5 12.1
Settlement of derivatives, net     4.9 11.8
Other investing activities, net     2.0 2.1
Net cash provided by (used for) investing activities     19.3 (40.0)
Cash flows from financing activities:        
Proceeds from Senior Notes       1,250.0
Repayments of term debt, Tim Hortons Notes and capital leases     (52.7) (2,610.6)
Payment of financing costs       (81.3)
Distributions on partnership units     (396.9) (238.8)
Capital contribution from RBI Inc.     12.5  
Distributions to RBI Inc.     (28.5) (0.1)
Other financing activities, net     0.8 (3.9)
Net cash provided by (used for) financing activities     (464.8) (1,684.7)
Effect of exchange rates on cash and cash equivalents     14.6 (57.2)
Increase (decrease) in cash and cash equivalents     474.9 (831.5)
Cash and cash equivalents at beginning of period     753.7 1,803.2
Cash and cash equivalents at end of period 1,228.6 971.7 1,228.6 971.7
Eliminations [Member]        
Cash flows from operating activities:        
Net income (238.6) (182.9) (654.5) (327.2)
Adjustments to reconcile net income to net cash provided by operating activities:        
Equity in loss (earnings) of consolidated subsidiaries 238.6 182.9 654.5 327.2
Borrowers [Member]        
Cash flows from operating activities:        
Net income 238.6 182.9 654.5 327.2
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization     129.0 137.8
Loss on early extinguishment of debt       40.0
Amortization of deferred financing costs and debt issuance discount     29.1 25.0
(Income) loss from equity method investments (2.6) 1.0 (16.6) 5.7
Loss (gain) on remeasurement of foreign denominated transactions     16.1 31.1
Amortization of defined pension and postretirement benefits     (1.9)  
Net losses (gains) on derivatives     15.3 50.1
Net losses (gains) on refranchisings and dispositions of assets     10.0 (5.8)
Bad debt expense (recoveries), net     (0.1) 0.9
Share-based compensation expense     25.9 36.9
Acquisition accounting impact on cost of sales       0.5
Deferred income taxes     34.6 (114.8)
Changes in current assets and liabilities, excluding acquisitions and dispositions:        
Reclassification of restricted cash to cash and cash equivalents       79.2
Trade and notes receivable     20.0 35.4
Inventories and other current assets     (3.0) (5.1)
Accounts and drafts payable     11.8 138.8
Accrued advertising     4.0 29.8
Other accrued liabilities     (23.8) 172.2
Other long-term assets and liabilities     0.9 (34.5)
Net cash provided by operating activities     905.8 950.4
Cash flows from investing activities:        
Payments for property and equipment     (18.2) (82.9)
Proceeds from refranchisings, disposition of assets and restaurant closures       16.9
Proceeds from refranchisings, disposition of assets and restaurant closures     18.1  
Return of investment on direct financing leases     12.5 12.1
Settlement of derivatives, net     4.9 11.8
Other investing activities, net     2.0 2.1
Net cash provided by (used for) investing activities     19.3 (40.0)
Cash flows from financing activities:        
Proceeds from Senior Notes       1,250.0
Repayments of term debt, Tim Hortons Notes and capital leases     (52.7) (2,610.6)
Payment of financing costs       (81.3)
Other financing activities, net     0.8 (3.9)
Intercompany financing     (412.9) (238.9)
Net cash provided by (used for) financing activities     (464.8) (1,684.7)
Effect of exchange rates on cash and cash equivalents     14.6 (57.2)
Increase (decrease) in cash and cash equivalents     474.9 (831.5)
Cash and cash equivalents at beginning of period     753.7 1,803.2
Cash and cash equivalents at end of period 1,228.6 971.7 1,228.6 971.7
Restaurant Brands International Limited Partnership [Member]        
Cash flows from operating activities:        
Net income 238.6 182.9 654.5 327.2
Adjustments to reconcile net income to net cash provided by operating activities:        
Equity in loss (earnings) of consolidated subsidiaries $ (238.6) $ (182.9) (654.5) (327.2)
Cash flows from financing activities:        
Distributions on partnership units     (396.9) (238.8)
Capital contribution from RBI Inc.     12.5  
Distributions to RBI Inc.     (28.5) (0.1)
Intercompany financing     $ 412.9 $ 238.9
v3.5.0.2
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - USD ($)
$ / shares in Units, $ in Millions
Oct. 24, 2016
Oct. 04, 2016
Oct. 03, 2016
Subsequent Event [Line Items]      
Cash dividend paid per common share   $ 0.16  
Cash dividend paid per preferred share     $ 0.98
Dividend payable record date Dec. 08, 2016 Sep. 06, 2016  
Dividends paid preferred share     $ 67.5
Cash dividend declared by board $ 0.17    
Dividend to be paid date Jan. 04, 2017    
Preferred Share [Member]      
Subsequent Event [Line Items]      
Dividend payable record date Jan. 03, 2017    
Cash dividend declared by board $ 0.98    
Dividends Payable preferred share $ 67.5    
Partnerships Exchangeable Units [Member]      
Subsequent Event [Line Items]      
Partnership exchangeable unit $ 0.17 $ 0.16