Burger King 2011 Annual Report Download - page 40
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Table of Contents
Other operating income (expense), net
Our other operating income (expense), net was comprised of the following:
Successor Combined
2011 2010
Net (gains) losses on disposal of assets, restaurant closures and refranchisings $ 6.2 $ (0.8)
Litigation settlements and reserves, net 1.3 5.9
Foreign exchange net (gains) losses (4.6) (27.2)
Loss from unconsolidated affiliates 1.2 0.9
Other, net 7.2 3.1
Other operating (income) expenses, net $ 11.3 $ (18.1)
Interest expense, net
Interest expense, net increased, reflecting an increase in borrowings due to the Transactions, as well as higher interest rates.
The weighted average interest rate for 2011 on our long-term debt, including the Senior Notes, was 6.95%, which included the effect of interest rate caps.
The weighted average interest rate for 2010 on our long-term debt, including the Senior Notes, was 6.01%, which included a $13.5 million bridge loan fee
related to the Transactions, the effect of interest rate swaps of our Predecessor debt and interest rate caps on our Successor debt.
Loss on early extinguishment
We recorded a loss on early extinguishment of debt of $21.4 million reflecting the write off of deferred financing costs and original issue discount and fees
incurred in connection with the amendment of our credit facility in February 2011 and the early extinguishment of debt in December 2011.
Income tax expense
Our effective tax rate was 27.1% in 2011 compared to 39.2% in 2010 as a result of the current mix of income from multiple tax jurisdictions and the
Transactions.
Transition Period compared to the Six Months Ended December 31, 2009
The combined financial data for the Transition Period do not comply with generally accepted accounting principles and are not intended to represent
what our operating results would have been if the Transactions had occurred at the beginning of the period because the periods being combined are under two
different bases of accounting as a result of the Acquisition on October 19, 2010. See “Recent Events and Factors Affecting Comparability — The Transactions.”
Company restaurants
Company restaurant revenues decreased due to the net refranchising of 82 Company restaurants during the trailing 12-month period, principally in EMEA
and the U.S. and Canada, partially offset by acquisitions in APAC. Additionally, Company restaurant revenues decreased due to negative Company comparable
sales growth in three of our four segments and unfavorable FX impact. These factors were partially offset by Company NRG.
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠