Burger King 2012 Annual Report Download - page 45

Table of Contents
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Our effective tax rate was 26.3% in 2012, primarily as a result of the current mix of income from multiple tax jurisdictions, the release of valuation
allowance and the impact of costs on refranchisings primarily in foreign jurisdictions.
Our effective tax rate was 23.2% in 2011 compared to 45.5% in 2010 as a result of the current mix of income from multiple tax jurisdictions and the
2010 Transactions.
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The table below contains information regarding EBITDA and Adjusted EBITDA, which are non-GAAP measures. EBITDA is defined as net income
(loss) before depreciation and amortization, interest expense, net, loss on early extinguishment of debt and income tax expense. Adjusted EBITDA is defined as
EBITDA excluding the impact of share-based compensation and non-cash incentive compensation expense, other operating (income) expenses, net, and all
other specifically identified costs associated with non-recurring projects, including 2010 Transaction costs, global restructuring and related professional fees,
field optimization project costs, global portfolio realignment project costs and business combination agreement expenses. Adjusted EBITDA is used by
management to measure operating performance of the business, excluding specifically identified items that management believes do not directly reflect our core
operations, and represents our measure of segment income.
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Segment income:
U.S. and Canada $471.0 $459.9 $ 77.2 $145.0 $219.7 2.4% 4.1%
EMEA 166.1 146.0 20.1 30.8 36.9 13.8% 66.3%
Latin America 73.2 63.9 9.5 12.3 22.3 14.6% 44.9%
APAC 41.1 26.7 4.9 7.1 9.5 53.9% 24.2%
Total 751.4 696.5 111.7 195.2 288.4 7.9% 17.0%
Unallocated Management G&A (99.3) (111.5) (16.5) (60.3) (64.9) 10.9% 21.3%
Adjusted EBITDA 652.1 585.0 95.2 134.9 223.5 11.5% 29.0%
Share-based compensation and non-cash incentive compensation
expense 10.2 6.4 — 5.8 8.3 (59.4)% 54.6%
2010 Transaction costs — 3.7 94.9 — — 100.0% 96.1%
Global restructuring and related professional fees — 46.5 67.2 — — 100.0% 30.8%
Field optimization project costs — 10.6 — — — 100.0% NM
Global portfolio realignment project costs 30.2 7.6 — — — (297.4)% NM
Business combination agreement expenses 27.0 — — — — NM NM
Other operating (income) expenses, net 53.3 11.3 (8.7) (3.6) (5.8) (371.7)% 162.4%
EBITDA 531.4 498.9 (58.2) 132.7 221.0 6.5% 68.8%
Depreciation and amortization 113.7 136.4 27.6 31.2 59.3 16.6% (15.5)%
Income (loss) from operations 417.7 362.5 (85.8) 101.5 161.7 15.2% 104.3%
Interest expense, net 223.8 226.7 58.1 14.6 23.9 1.3% (134.7)%
Loss on early extinguishment of debt 34.2 21.1 — — — (62.1)% NM
Income tax expense (benefit) 42.0 26.6 (28.2) 15.8 47.8 (57.9)% 24.9%
Net income (loss) $117.7 $ 88.1 $(115.7) $ 71.1 $90.0 33.6% 94.1%
NM — Not Meaningful
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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