Burger King 2012 Annual Report Download - page 99
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Table of Contents
Our total minimum obligations under capital leases are $145.0 million as of December 31, 2012 and $157.6 million as of December 31, 2011
including $45.9 million as of December 31, 2012 and $52.9 million as of December 31, 2011 which represented future interest expense. The remaining
balance was capital lease obligations of $99.1 million as of December 31, 2012 and $104.7 million as of December 31, 2011 which are all recorded on our
consolidated balance sheet. Of these balances, $10.7 million was classified as current portion of long-term debt and capital leases as of December 31, 2012
and $9.3 million as of December 31, 2011.
Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as
follows (in millions):
Rental income:
Minimum $108.1 $72.9 $ 16.0 $21.9 $73.1
Contingent 17.4 0.3 — 4.9 17.9
Amortization of favorable and unfavorable income lease contracts, net 6.3 6.6 1.3 — —
Total rental income 131.8 79.8 17.3 26.8 91.0
Earned income on direct financing leases 19.5 31.4 6.2 7.2 22.7
Total property revenues $151.3 $111.2 $ 23.5 $34.0 $113.7
Rent expense associated with the lease commitments is as follows (in millions):
Rental expense:
Minimum $148.8 $167.3 $ 27.8 $47.4 $168.9
Contingent 9.3 4.5 1.3 2.0 7.4
Amortization of favorable and unfavorable payable lease contracts, net (2.4) (3.4) (0.9) (3.9) (15.0)
Total rental expense $155.7 $168.4 $ 28.2 $45.5 $ 161.3
The impact of favorable and unfavorable lease amortization on operating income is as follows (in millions):
Franchise and property revenues $ 6.3 $6.6 $1.3 $ — $ —
Company restaurant expenses:
Occupancy and other operating costs 3.4 4.1 1.0 2.6 10.4
Franchise and property expenses (1.0) (0.7) (0.1) 1.3 4.6
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Source: Burger King Worldwide, Inc., 10-K, February 22, 2013 Powered by Morningstar® Document Research℠
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