Burger King 2010 Annual Report Download - page 92

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Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
As of June 30,
2010 2009
Favorable leases up to 20 years 49.1 48.8
Accumulated amortization (14.6) (12.3)
Favorable leases, net 34.5 36.5
The Company recorded amortization expense on intangible assets of $8.7 million, $8.8 million, and $5.0 million in the fiscal years
ended June 30, 2010, 2009, and 2008, respectively.
As of June 30, 2010, estimated future amortization expense on intangible assets for each of the years ended June 30, is
$8.9 million in 2011, $8.8 million in 2012 and 2013, $8.6 million in 2014, $8.2 million in 2015 and $107.2 million thereafter.
Note 10. Earnings Per Share
Basic and diluted earnings per share were calculated as follows (in millions):
Years Ended June 30,
2010 2009 2008
Numerator:
Numerator for basic and diluted earnings per share:
Net income $ 186.8 $ 200.1 $ 189.6
Denominator:
Weighted average shares — basic 135.4 134.8 135.1
Effect of dilutive securities 1.8 2.0 2.5
Weighted average shares — diluted 137.2 136.8 137.6
Basic earnings per share $ 1.38 $ 1.48 $ 1.40
Diluted earnings per share $ 1.36 $ 1.46 $ 1.38
Antidilutive shares(1) 4.3 2.4 0.8
(1) These shares were not included in the computation of weighted average shares−diluted because they would have been
anti−dilutive for the periods presented.
Note 11. Other Accrued Liabilities and Other Liabilities
Included in other accrued liabilities (current) as of June 30, 2010 and 2009, were accrued payroll and employee−related benefit
costs totaling $58.5 million and $69.4 million, respectively. The decrease in payroll and employee−related benefit costs of $10.9 million
is primarily due to a decrease in annual incentive bonus accrual and timing of payroll periods during fiscal 2010, as compared to prior
fiscal year.
Included in other liabilities (non−current) as of June 30, 2010 and 2009, were accrued pension liabilities of $79.4 million and
$54.0 million, respectively; interest rate swap liabilities of $26.1 million and $32.4 million, respectively; casualty insurance reserves of
$25.5 million and $27.7 million, respectively; retiree health benefits of $25.0 million and $21.1 million, respectively; and liabilities for
unfavorable leases of $127.3 million and $155.5 million, respectively. The $28.2 million decrease in liabilities for unfavorable leases is
primarily attributable to amortization taken during the fiscal year, termination of leases as a result of refranchising of Company
restaurants and a $4.1 million impact from foreign currency translation.
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