Burger King 2006 Annual Report Download - page 112

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BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements Ì (Continued)
New Global Headquarters
In May 2005, the Company entered into an agreement to lease a building in Coral Gables, Florida, to
serve as the Company's new global headquarters beginning in fiscal 2009. Under this agreement, the estimated
annual rent for the 15 year initial term is expected to be approximately $7 million a year, which will be
finalized upon the completion of the building's construction and will escalate based on the annual inflation
rate.
Other
The Company is self-insured for most domestic workers' compensation, general liability, and automotive
liability losses subject to per occurrence and aggregate annual liability limitations. The Company is also self-
insured for healthcare claims for eligible participating employees subject to certain deductibles and limita-
tions. The Company determines its liability for claims incurred but not reported based on an actuarial analysis.
The Company has claims for certain years which are insured by a third party carrier, which is currently
insolvent. The Company is currently reviewing its options to replace this carrier with another insurance carrier.
If the Company is unable to successfully replace the carrier and the existing carrier goes into receivership,
then there is the possibility for the State, in which the claim is reported, to take over the pending and potential
claims. This may result in an increase in premiums for claims related to this period.
Note 20. Segment Reporting
The Company operates in the fast food hamburger restaurant industry. Revenues include retail sales at
Company-owned restaurants and franchise revenues. The business is managed as distinct geographic
segments: United States and Canada, Europe, Middle East and Africa and Asia Pacific (""EMEA/APAC''),
and Latin America.
Unallocated amounts reflected in certain tables below included corporate support costs in areas such as
facilities, finance, human resources, information technology, legal, marketing, and supply chain management.
The following tables present revenues, operating income, depreciation and amortization, total assets,
long-lived assets and capital expenditures information by geographic segment (in millions):
Years Ended June 30,
2006 2005 2004
Revenues:
United States and Canada ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,382 $1,275 $1,117
EMEA/APAC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 576 586 566
Latin America ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 90 79 71
Total revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,048 $1,940 $1,754
Other than the United States and Germany, no other individual country represented 10% or more of the
Company's total revenues. Revenues in the United States totaled $1,239 million for the year ended June 30,
2006, $1,146 million for the year ended June 30, 2005 and $997 million for the year ended June 30, 2004.
Revenues in Germany totaled $269 million for the year ended June 30, 2006, $262 million for the year ended
June 30, 2005 and $236 million for the year ended June 30, 2004.
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