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