Burger King 2012 Annual Report Download - page 60

Table of Contents
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
 
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  
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

Term debt, including current portion, interest and interest rate cap premiums(1) $2,033.1 $101.0 $ 273.9 $952.6 $705.6
Senior Notes, including interest 1,245.6 78.5 156.9 156.9 853.3
Discount Notes, including PIK interest 691.1 — — — 691.1
Operating lease obligations 1,188.0 133.3 244.6 209.8 600.3
Capital lease obligations 99.1 18.2 34.1 28.3 18.5
Purchase commitments(2) 180.5 172.8 7.7 — —
Severance and severance-related costs 11.0 11.0 — — —
Unrecognized tax benefits(3) 23.3 — — — —
Total $5,471.7 $514.8 $ 717.2 $1,347.6 $2,868.8
(1) We have estimated our interest payments through the maturity of our 2012 Credit Facilities based on current LIBOR rates and the terms of our interest
rate caps.
(2) Includes open purchase orders, as well as commitments to purchase advertising and other marketing services from third parties in advance on behalf of
the system and obligations related to information technology and service agreements.
(3) We have provided only a total in the table above since the timing of the unrecognized tax benefit payments is unknown.

During the fiscal year ended June 30, 2000, we entered into long-term, exclusive contracts with soft drink vendors to supply Company and franchise
restaurants with their products and obligating Burger King restaurants in the United States to purchase a specified number of gallons of soft drink syrup.
These volume commitments are not subject to any time limit and as of December 31, 2012, we estimate it will take approximately 12 years for these purchase
commitments to be completed. In the event of early termination of this arrangement, we may be required to make termination payments that could be material to
our financial position, results of operations and cash flows.
From time to time, we enter into agreements under which we guarantee loans made by third parties to qualified franchisees. As of December 31, 2012,
there were $81.9 million of loans outstanding to franchisees that we had guaranteed under three such programs, with additional franchisee borrowing capacity
of approximately $104.0 million remaining. Our maximum guarantee liability under these three programs is limited to an aggregate of $25.3 million, assuming
full utilization of all borrowing capacity. As of December 31, 2012, the liability we recorded to reflect the fair value of these guarantee obligations was $2.7
million. No significant payments have been made by us in connection with these guarantees through December 31, 2012.
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On October 28, 2012, our Board of Directors approved a cash dividend of $0.04 per share that was paid on November 29, 2012 to shareholders of
record at the close of business on November 9, 2012. On December 16, 2011, we paid a dividend to our shareholders, principally 3G, in the amount of
$393.4 million, representing the net proceeds from the sale of the Discount Notes. We paid a cash dividend of $0.0625 per share on September 30, 2010 to the
Predecessor’s shareholders of record at the close of business on September 14, 2010. Total dividends paid by the Predecessor during the period July 1, 2010 to
October 18, 2010 were $8.6 million. Total dividends paid to the Predecessor’s shareholders were $34.2 million in fiscal 2010.
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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