Burger King 2013 Annual Report Download - page 75

Table of Contents
funds, held for the sole benefit of participants, which are invested by the trust funds. For defined benefit pension plans, the benefit obligation represents the
actuarial present value of benefits expected to be paid upon retirement. For postretirement benefit plans, the benefit obligation represents the actuarial present
value of postretirement benefits attributed to employee services already rendered. Gains or losses and prior service costs or credits related to our pension plans
are being recognized as they arise as a component of other comprehensive income (loss) to the extent they have not been recognized as a component of net
periodic benefit cost.
We sponsor the Burger King Savings Plan (the “Savings Plan”), a defined contribution plan under the provisions of Section 401(k) of the Internal
Revenue Code. The Savings Plan is voluntary and is provided to all employees who meet the eligibility requirements. A participant can elect to contribute up to
50% of their compensation, subject to IRS limits, and we match 100% of the first 4% of employee compensation.
We also maintain an Executive Retirement Plan (“ERP”) for all officers and senior management. Prior to December 31, 2011, officers and senior
management could elect to defer up to 75% of base pay once 401(k) limits were reached and up to 100% of incentive pay on a before-tax basis under the ERP.
BKC provided a dollar-for-dollar match up to the first 6% of base pay. In the quarter ended December 31, 2011, we elected to cease further participation
deferrals and contributions to the ERP.
We have a rabbi trust to invest compensation deferred under the ERP and fund future deferred compensation obligations. The rabbi trust is subject to
creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes and are classified as restricted
investments within other assets, net in our consolidated balance sheets. The rabbi trust is required to be consolidated into our consolidated financial
statements. Participants receive returns on amounts they deferred under the deferred compensation plan based on investment elections they make.
Aggregate amounts recorded in the consolidated statements of operations representing our contributions to the Savings Plan and ERP on behalf of
restaurant and corporate employees was $1.0 million for 2013, $1.8 million for 2012 and $4.2 million for 2011. Our contributions made on behalf of
restaurant employees are classified as payroll and employee benefit expenses in our consolidated statements of operations, while our contributions made on
behalf of corporate employees are classified as selling, general and administrative expenses in our consolidated statements of operations.
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During 2013, we adopted a Financial Accounting Standards Board (“FASB”) accounting standards update that amends accounting guidance to require
an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is
required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the
amounts reclassified are required by GAAP to be reclassified to net income in their entirety in the same reporting period. The disclosures required by this
accounting standards update are included in this report.
During 2013, we adopted an accounting standards update that amends accounting guidance for the release of the cumulative translation adjustment into
net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a
business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the
complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The adoption of this accounting
standard update did not have a significant impact on our consolidated financial position, results of operations or cash flows.
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Trade and notes receivable, net, consists of the following (in millions):
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 
Trade accounts receivable $ 190.6 $195.6
Notes receivable, current portion 4.9 3.1
195.5 198.7
Allowance for doubtful accounts (15.8) (19.7)
Total, net $179.7 $ 179.0
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Source: Burger King Worldwide, Inc., 10-K, February 21, 2014 Powered by Morningstar® Document Research℠
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