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Supplemental Financial Information
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
On February 17, 2017, 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into an amended credit agreement, as amended from time to time, that provides for obligations under the Credit Facilities. On April 7, 2020, the Issuers entered into the 2020 5.750% Senior Notes Indenture with respect to the 2020 5.750% Senior Notes. On November 19, 2019, the Issuers entered into the 2019 4.375% Senior Notes Indenture with respect to the 2019 4.375% Senior Notes. On September 24, 2019, the Issuers entered into the 2019 3.875% Senior Notes Indenture with respect to the 2019 3.875% Senior Notes. On August 28, 2017, the Issuers entered into the 2017 5.000% Senior Notes Indenture with respect to the 2017 5.000% Senior Notes. On May 17, 2017, the Issuers entered into the 2017 4.25% Senior Notes Indenture with respect to the 2017 4.250% Senior Notes.
The agreement governing our Credit Facilities, the 2020 5.750% Senior Notes Indenture, the 2019 4.375% Senior Notes Indenture, the 2019 3.875% Senior Notes Indenture, the 2017 5.000% Senior Notes Indenture, and the 2017 4.25% Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis.
The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities.
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
(In millions of U.S. dollars)
As of June 30, 2020
 Consolidated BorrowersRBILPEliminationsConsolidated
ASSETS
Current assets:
Cash and cash equivalents$1,540  $—  $—  $1,540  
Accounts and notes receivable, net520  —  —  520  
Inventories, net96  —  —  96  
Prepaids and other current assets71  —  —  71  
Total current assets2,227  —  —  2,227  
Property and equipment, net1,958  —  —  1,958  
Operating lease assets, net1,117  —  —  1,117  
Intangible assets, net10,288  —  —  10,288  
Goodwill5,498  —  —  5,498  
Net investment in property leased to franchisees62  —  —  62  
Investment in subsidiaries—  3,852  (3,852) —  
Other assets, net866  —  —  866  
Total assets$22,016  $3,852  $(3,852) $22,016  
LIABILITIES AND EQUITY
Current liabilities:
Accounts and drafts payable$470  $—  $—  $470  
Other accrued liabilities596  —  —  596  
Gift card liability112  —  —  112  
Current portion of long-term debt and finance leases106  —  —  106  
Total current liabilities1,284  —  —  1,284  
Long-term debt, net of current portion12,310  —  —  12,310  
Finance leases, net of current portion299  —  —  299  
Operating lease liabilities, net of current portion1,046  —  —  1,046  
Other liabilities, net1,810  —  —  1,810  
Deferred income taxes, net1,415  —  —  1,415  
Total liabilities18,164  —  —  18,164  
Partners’ capital:
Class A common units—  7,947  —  7,947  
Partnership exchangeable units—  (2,526) —  (2,526) 
Common shares3,334  —  (3,334) —  
Retained Earnings2,087  —  (2,087) —  
Accumulated other comprehensive income (loss)(1,572) (1,572) 1,572  (1,572) 
Total Partners' capital/shareholders' equity3,849  3,849  (3,849) 3,849  
Noncontrolling interests3  3  (3) 3  
Total equity3,852  3,852  (3,852) 3,852  
Total liabilities and equity$22,016  $3,852  $(3,852) $22,016  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
(In millions of U.S. dollars)
As of December 31, 2019
 Consolidated BorrowersRBILPEliminationsConsolidated
ASSETS
Current assets:
Cash and cash equivalents$1,533  $—  $—  $1,533  
Accounts and notes receivable, net527  —  —  527  
Inventories, net84  —  —  84  
Prepaids and other current assets52  —  —  52  
Total current assets2,196  —  —  2,196  
Property and equipment, net2,007  —  —  2,007  
Operating lease assets. net1,176  —  —  1,176  
Intangible assets, net10,563  —  —  10,563  
Goodwill5,651  —  —  5,651  
Net investment in property leased to franchisees48  —  —  48  
Intercompany receivable—  232  (232) —  
Investment in subsidiaries—  4,259  (4,259) —  
Other assets, net719  —  —  719  
Total assets$22,360  $4,491  $(4,491) $22,360  
LIABILITIES AND EQUITY
Current liabilities:
Accounts and drafts payable$644  $—  $—  $644  
Other accrued liabilities558  232  —  790  
Gift card liability168  —  —  168  
Current portion of long-term debt and finance leases101  —  —  101  
Total current liabilities1,471  232  —  1,703  
Long-term debt, net of current portion11,759  —  —  11,759  
Finance leases, net of current portion288  —  —  288  
Operating lease liabilities, net of current portion1,089  —  —  1,089  
Other liabilities, net1,698  —  —  1,698  
Payables to affiliates232  —  (232) —  
Deferred income taxes, net1,564  —  —  1,564  
Total liabilities18,101  232  (232) 18,101  
Partners’ capital:
Class A common units—  7,786  —  7,786  
Partnership exchangeable units—  (2,353) —  (2,353) 
Common shares3,248  —  (3,248) —  
Retained Earnings2,185  —  (2,185) —  
Accumulated other comprehensive income (loss)(1,178) (1,178) 1,178  (1,178) 
Total Partners' capital/shareholders' equity4,255  4,255  (4,255) 4,255  
Noncontrolling interests4  4  (4) 4  
Total equity4,259  4,259  (4,259) 4,259  
Total liabilities and equity$22,360  $4,491  $(4,491) $22,360  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)
Three Months Ended June 30, 2020
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$406  $—  $—  $406  
Franchise and property revenues642  —  —  642  
Total revenues1,048  —  —  1,048  
Operating costs and expenses:
Cost of sales339  —  —  339  
Franchise and property expenses134  —  —  134  
Selling, general and administrative expenses295  —  —  295  
(Income) loss from equity method investments16  —  —  16  
Other operating expenses (income), net21  —  —  21  
Total operating costs and expenses805  —  —  805  
Income from operations243  —  —  243  
Interest expense, net128  —  —  128  
Income before income taxes115  —  —  115  
Income tax (benefit) expense(49) —  —  (49) 
Net income164  —  —  164  
Equity in earnings of consolidated subsidiaries—  164  (164) —  
Net income (loss)164  164  (164) 164  
Net income (loss) attributable to noncontrolling interests1  1  (1) 1  
Net income (loss) attributable to common unitholders$163  $163  $(163) $163  
Comprehensive income (loss)$313  $313  $(313) $313  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)
Six Months Ended June 30, 2020
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$909  $—  $—  $909  
Franchise and property revenues1,364  —  —  1,364  
Total revenues2,273  —  —  2,273  
Operating costs and expenses:
Cost of sales738  —  —  738  
Franchise and property expenses260  —  —  260  
Selling, general and administrative expenses620  —  —  620  
(Income) loss from equity method investments18  —  —  18  
Other operating expenses (income), net5  —  —  5  
Total operating costs and expenses1,641  —  —  1,641  
Income from operations632  —  —  632  
Interest expense, net247  —  —  247  
Income before income taxes385  —  —  385  
Income tax (benefit) expense(3) —  —  (3) 
Net income388  —  —  388  
Equity in earnings of consolidated subsidiaries—  388  (388) —  
Net income (loss)388  388  (388) 388  
Net income (loss) attributable to noncontrolling interests1  1  (1) 1  
Net income (loss) attributable to common unitholders$387  $387  $(387) $387  
Comprehensive income (loss)$(6) $(6) $6  $(6) 
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)
Three Months Ended June 30, 2019
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$589  $—  $—  $589  
Franchise and property revenues811  —  —  811  
Total revenues1,400  —  —  1,400  
Operating costs and expenses:
Cost of sales453  —  —  453  
Franchise and property expenses135  —  —  135  
Selling, general and administrative expenses316  —  —  316  
(Income) loss from equity method investments2  —  —  2  
Other operating expenses (income), net3  —  —  3  
Total operating costs and expenses909  —  —  909  
Income from operations491  —  —  491  
Interest expense, net137  —  —  137  
Income before income taxes354  —  —  354  
Income tax expense97  —  —  97  
Net income257  —  —  257  
Equity in earnings of consolidated subsidiaries—  257  (257) —  
Net income (loss)257  257  (257) 257  
Net income (loss) attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to common unitholders$257  $257  $(257) $257  
Comprehensive income (loss)$362  $362  $(362) $362  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)
Six Months Ended June 30, 2019
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$1,111  $—  $—  $1,111  
Franchise and property revenues1,555  —  —  1,555  
Total revenues2,666  —  —  2,666  
Operating costs and expenses:
Cost of sales859  —  —  859  
Franchise and property expenses268  —  —  268  
Selling, general and administrative expenses628  —  —  628  
(Income) loss from equity method investments—  —  —  —  
Other operating expenses (income), net(14) —  —  (14) 
Total operating costs and expenses1,741  —  —  1,741  
Income from operations925  —  —  925  
Interest expense, net269  —  —  269  
Income before income taxes656  —  —  656  
Income tax expense153  —  —  153  
Net income503  —  —  503  
Equity in earnings of consolidated subsidiaries—  503  (503) —  
Net income (loss)503  503  (503) 503  
Net income (loss) attributable to noncontrolling interests—  —  —  —  
Net income (loss) attributable to common unitholders$503  $503  $(503) $503  
Comprehensive income (loss)$656  $656  $(656) $656  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
(In millions of U.S. dollars)
Six months ended June 30, 2020
Consolidated BorrowersRBILPEliminationsConsolidated
Cash flows from operating activities:
Net income$388  $388  $(388) $388  
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Equity in loss (earnings) of consolidated subsidiaries—  (388) 388  —  
Depreciation and amortization91  —  —  91  
Amortization of deferred financing costs and debt issuance discount12  —  —  12  
(Income) loss from equity method investments18  —  —  18  
(Gain) loss on remeasurement of foreign denominated transactions10  —  —  10  
Net (gains) losses on derivatives(1) —  —  (1) 
Share-based compensation expense39  —  —  39  
Deferred income taxes(131) —  —  (131) 
Other20  —  —  20  
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable(36) —  —  (36) 
Inventories and prepaids and other current assets(28) —  —  (28) 
Accounts and drafts payable(158) —  —  (158) 
Other accrued liabilities and gift card liability(13) —  —  (13) 
Tenant inducements paid to franchisees(5) —  —  (5) 
Other long-term assets and liabilities(10) —  —  (10) 
Net cash provided by (used for) operating activities196  —  —  196  
Cash flows from investing activities:
Payments for property and equipment(39) —  —  (39) 
Net proceeds from disposal of assets, restaurant closures, and refranchisings5  —  —  5  
Settlement/sale of derivatives, net22  —  —  22  
Net cash provided by (used for) investing activities(12) —  —  (12) 
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term debt1,585  —  —  1,585  
Repayments of revolving line of credit, long-term debt and finance leases(1,045) —  —  (1,045) 
Payment of financing costs(10) —  —  (10) 
Distributions on Class A common and Partnership exchangeable units—  (716) —  (716) 
Capital contribution from RBI41  —  —  41  
Distributions from subsidiaries(716) 716  —  —  
(Payments) proceeds from derivatives(14) —  —  (14) 
Other financing activities, net(2) —  —  (2) 
Net cash provided by (used for) financing activities(161) —  —  (161) 
Effect of exchange rates on cash and cash equivalents(16) —  —  (16) 
Increase (decrease) in cash and cash equivalents7  —  —  7  
Cash and cash equivalents at beginning of period1,533  —  —  1,533  
Cash and cash equivalents at end of period$1,540  $—  $—  $1,540  
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
(In millions of U.S. dollars)
Six Months Ended June 30, 2019
Consolidated BorrowersRBILPEliminationsConsolidated
Cash flows from operating activities:
Net income$503  $503  $(503) $503  
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Equity in loss (earnings) of consolidated subsidiaries—  (503) 503  —  
Depreciation and amortization92  —  —  92  
Amortization of deferred financing costs and debt issuance discount15  —  —  15  
(Gain) loss on remeasurement of foreign denominated transactions(3) —  —  (3) 
Net (gains) losses on derivatives(34) —  —  (34) 
Share-based compensation expense39  —  —  39  
Deferred income taxes23  —  —  23  
Other(3) —  —  (3) 
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable(16) —  —  (16) 
Inventories and prepaids and other current assets(10) —  —  (10) 
Accounts and drafts payable(40) —  —  (40) 
Other accrued liabilities and gift card liability(166) —  —  (166) 
Tenant inducements paid to franchisees(8) —  —  (8) 
Other long-term assets and liabilities83  —  —  83  
Net cash provided by (used for) operating activities475  —  —  475  
Cash flows from investing activities:
Payments for property and equipment(14) —  —  (14) 
Net proceeds from disposal of assets, restaurant closures, and refranchisings22  —  —  22  
Settlement/sale of derivatives, net15  —  —  15  
Net cash provided by (used for) investing activities23  —  —  23  
Cash flows from financing activities:
Repayments of long-term debt and finance leases(48) —  —  (48) 
Distributions on Class A common and Partnership exchangeable units—  (437) —  (437) 
Capital contribution from RBI80  —  —  80  
Distributions from subsidiaries(437) 437  —  —  
(Payments) proceeds from derivatives11  —  —  11  
Other financing activities, net(1) —  —  (1) 
Net cash (used for) provided by financing activities(395) —  —  (395) 
Effect of exchange rates on cash and cash equivalents12  —  —  12  
Increase (decrease) in cash and cash equivalents115  —  —  115  
Cash and cash equivalents at beginning of period913  —  —  913  
Cash and cash equivalents at end of period$1,028  $—  $—  $1,028