Fair Value Measurements

6 Months Ended

Jun. 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 June 30, 2016 and December 31, 2015 (in millions):

	Balance Sheet Location		Fair Value Measurements at June 30, 2016				Fair Value Measurements at December 31, 2015
			(Level 2)		Total		(Level 2)		Total
Assets:
Derivatives designated as cash flow hedges
Foreign currency		Trade and notes receivable, net	$	0.4	$	0.4	$	6.6	$	6.6
Derivatives designated as net investment hedges
Foreign currency		Other assets, net		629.8		629.8		830.9		830.9
Total assets at fair value			$	630.2	$	630.2	$	837.5	$	837.5
Liabilities:
Derivatives designated as cash flow hedges
Interest rate		Other liabilities, net	$	110.5	$	110.5	$	40.9	$	40.9
Foreign currency		Other accrued liabilities		6.5		6.5		—		—
Derivatives designated as net investment hedges
Foreign currency		Other liabilities, net		29.5		29.5		6.3		6.3
Total liabilities at fair value			$	146.5	$	146.5	$	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 June 30, 2016, 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. 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, the Burger King brand and other intangible assets.