XML 37 R26.htm IDEA: XBRL DOCUMENT v3.21.2
Supplemental Financial Information
 6 Months Ended
Jun. 30, 2021
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 November 9, 2020, the Issuers entered into the 2020 3.50% Senior Notes Indenture with respect to the 2020 3.50% Senior Notes. On October 5, 2020, the Issuers entered into the 2020 4.00% Senior Notes Indenture with respect to the 2020 4.00% Senior Notes. On April 7, 2020, the Issuers entered into the 2020 5.75% Senior Notes Indenture with respect to the 2020 5.75% 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 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 3.50% Senior Notes Indenture, the 2020 4.00% Senior Notes Indenture, the 2020 5.75% Senior Notes Indenture, the 2019 4.375% Senior Notes Indenture, the 2019 3.875% 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, 2021
 Consolidated BorrowersRBILPEliminationsConsolidated
ASSETS
Current assets:
Cash and cash equivalents$1,749 $— $— $1,749 
Accounts and notes receivable, net535 — — 535 
Inventories, net99 — — 99 
Prepaids and other current assets132 — — 132 
Total current assets2,515 — — 2,515 
Property and equipment, net2,033 — — 2,033 
Operating lease assets, net1,143 — — 1,143 
Intangible assets, net10,820 — — 10,820 
Goodwill5,831 — — 5,831 
Net investment in property leased to franchisees80 — — 80 
Intercompany receivable— 246 (246)— 
Investment in subsidiaries— 4,259 (4,259)— 
Other assets, net819 — — 819 
Total assets$23,241 $4,505 $(4,505)$23,241 
LIABILITIES AND EQUITY
Current liabilities:
Accounts and drafts payable$575 $— $— $575 
Other accrued liabilities566 246 — 812 
Gift card liability149 — — 149 
Current portion of long-term debt and finance leases113 — — 113 
Total current liabilities1,403 246 — 1,649 
Long-term debt, net of current portion12,375 — — 12,375 
Finance leases, net of current portion326 — — 326 
Operating lease liabilities, net of current portion1,078 — — 1,078 
Other liabilities, net2,110 — — 2,110 
Payables to affiliates246 — (246)— 
Deferred income taxes, net1,444 — — 1,444 
Total liabilities18,982 246 (246)18,982 
Partners’ capital:
Class A common units— 8,222 — 8,222 
Partnership exchangeable units— (2,955)— (2,955)
Common shares3,132 — (3,132)— 
Retained Earnings2,135 — (2,135)— 
Accumulated other comprehensive income (loss)(1,012)(1,012)1,012 (1,012)
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$23,241 $4,505 $(4,505)$23,241 
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
(In millions of U.S. dollars)
As of December 31, 2020
 Consolidated BorrowersRBILPEliminationsConsolidated
ASSETS
Current assets:
Cash and cash equivalents$1,560 $— $— $1,560 
Accounts and notes receivable, net536 — — 536 
Inventories, net96 — — 96 
Prepaids and other current assets72 — — 72 
Total current assets2,264 — — 2,264 
Property and equipment, net2,031 — — 2,031 
Operating lease assets. net1,152 — — 1,152 
Intangible assets, net10,701 — — 10,701 
Goodwill5,739 — — 5,739 
Net investment in property leased to franchisees66 — — 66 
Intercompany receivable— 239 (239)— 
Investment in subsidiaries— 3,721 (3,721)— 
Other assets, net824 — — 824 
Total assets$22,777 $3,960 $(3,960)$22,777 
LIABILITIES AND EQUITY
Current liabilities:
Accounts and drafts payable$464 $— $— $464 
Other accrued liabilities596 239 — 835 
Gift card liability191 — — 191 
Current portion of long-term debt and finance leases111 — — 111 
Total current liabilities1,362 239 — 1,601 
Long-term debt, net of current portion12,397 — — 12,397 
Finance leases, net of current portion315 — — 315 
Operating lease liabilities, net of current portion1,082 — — 1,082 
Other liabilities, net2,236 — — 2,236 
Payables to affiliates239 — (239)— 
Deferred income taxes, net1,425 — — 1,425 
Total liabilities19,056 239 (239)19,056 
Partners’ capital:
Class A common units— 7,994 — 7,994 
Partnership exchangeable units— (3,002)— (3,002)
Common shares3,026 — (3,026)— 
Retained Earnings1,966 — (1,966)— 
Accumulated other comprehensive income (loss)(1,275)(1,275)1,275 (1,275)
Total Partners' capital/shareholders' equity3,717 3,717 (3,717)3,717 
Noncontrolling interests4 4 (4)4 
Total equity3,721 3,721 (3,721)3,721 
Total liabilities and equity$22,777 $3,960 $(3,960)$22,777 
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)

Three Months Ended June 30, 2021
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$590 $— $— $590 
Franchise and property revenues614 — — 614 
Advertising revenues234 — — 234 
Total revenues1,438 — — 1,438 
Operating costs and expenses:
Cost of sales467 — — 467 
Franchise and property expenses121 — — 121 
Advertising expenses238 — — 238 
General and administrative expenses113 — — 113 
(Income) loss from equity method investments3 — — 3 
Other operating expenses (income), net8 — — 8 
Total operating costs and expenses950 — — 950 
Income from operations488 — — 488 
Interest expense, net126 — — 126 
Income before income taxes362 — — 362 
Income tax (benefit) expense(29)— — (29)
Net income391 — — 391 
Equity in earnings of consolidated subsidiaries— 391 (391)— 
Net income (loss)391 391 (391)391 
Net income (loss) attributable to noncontrolling interests1 1 (1)1 
Net income (loss) attributable to common unitholders$390 $390 $(390)$390 
Comprehensive income (loss)$451 $451 $(451)$451 
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
(In millions of U.S. dollars)

Six Months Ended June 30, 2021
Consolidated BorrowersRBILPEliminationsConsolidated
Revenues:
Sales$1,097 $— $— $1,097 
Franchise and property revenues1,162 — — 1,162 
Advertising revenues439 — — 439 
Total revenues2,698 — — 2,698 
Operating costs and expenses:
Cost of sales868 — — 868 
Franchise and property expenses237 — — 237 
Advertising expenses474 — — 474 
General and administrative expenses218 — — 218 
(Income) loss from equity method investments5 — — 5 
Other operating expenses (income), net(34)— — (34)
Total operating costs and expenses1,768 — — 1,768 
Income from operations930 — — 930 
Interest expense, net250 — — 250 
Income before income taxes680 — — 680 
Income tax (benefit) expense18 — — 18 
Net income662 — — 662 
Equity in earnings of consolidated subsidiaries— 662 (662)— 
Net income (loss)662 662 (662)662 
Net income (loss) attributable to noncontrolling interests2 2 (2)2 
Net income (loss) attributable to common unitholders$660 $660 $(660)$660 
Comprehensive income (loss)$925 $925 $(925)$925 
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 revenues450 — — 450 
Advertising revenues192 — — 192 
Total revenues1,048 — — 1,048 
Operating costs and expenses:
Cost of sales339 — — 339 
Franchise and property expenses132 — — 132 
Advertising expenses203 — — 203 
General and administrative expenses94 — — 94 
(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 revenues975 — — 975 
Franchise contributions for advertising389 389 
Total revenues2,273 — — 2,273 
Operating costs and expenses:
Cost of sales738 — — 738 
Franchise and property expenses255 — — 255 
Franchise advertising and related expenses429 — — 429 
Selling, general and administrative expenses196 — — 196 
(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 Cash Flows
(In millions of U.S. dollars)
Six months ended June 30, 2021
Consolidated BorrowersRBILPEliminationsConsolidated
Cash flows from operating activities:
Net income$662 $662 $(662)$662 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Equity in loss (earnings) of consolidated subsidiaries— (662)662 — 
Depreciation and amortization100 — — 100 
Amortization of deferred financing costs and debt issuance discount13 — — 13 
(Income) loss from equity method investments5 — — 5 
(Gain) loss on remeasurement of foreign denominated transactions(35)— — (35)
Net (gains) losses on derivatives42 — — 42 
Share-based compensation expense40 — — 40 
Deferred income taxes24 — — 24 
Other(12)— — (12)
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable17 — — 17 
Inventories and prepaids and other current assets(5)— — (5)
Accounts and drafts payable103 — — 103 
Other accrued liabilities and gift card liability(123)— — (123)
Tenant inducements paid to franchisees(1)— — (1)
Other long-term assets and liabilities(98)— — (98)
Net cash provided by (used for) operating activities732 — — 732 
Cash flows from investing activities:
Payments for property and equipment(46)— — (46)
Net proceeds from disposal of assets, restaurant closures, and refranchisings14 — — 14 
Settlement/sale of derivatives, net1 — — 1 
Other investing activities, net(5)— — (5)
Net cash provided by (used for) investing activities(36)— — (36)
Cash flows from financing activities:
Repayments of long-term debt and finance leases(54)— — (54)
Distributions on Class A common and Partnership exchangeable units— (484)— (484)
Capital contribution from RBI56 — — 56 
Distributions from subsidiaries(484)484 — — 
(Payments) proceeds from derivatives(32)— — (32)
Other financing activities, net(2)— — (2)
Net cash provided by (used for) financing activities(516)— — (516)
Effect of exchange rates on cash and cash equivalents9 — — 9 
Increase (decrease) in cash and cash equivalents189 — — 189 
Cash and cash equivalents at beginning of period1,560 — — 1,560 
Cash and cash equivalents at end of period$1,749 $— $— $1,749 
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