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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-36786
 
 RESTAURANT BRANDS INTERNATIONAL INC.
(Exact Name of Registrant as Specified in its Charter)


Canada 98-1202754
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
130 King Street West, Suite 300 M5X 1E1
Toronto, Ontario
(Address of Principal Executive Offices) (Zip Code)
(905) 339-6011
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading SymbolsName of each exchange on which registered
Common Shares, without par value QSRNew York Stock Exchange
 Toronto Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of April 26, 2022, there were 308,777,102 common shares of the Registrant outstanding.



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
TABLE OF CONTENTS
 
3

PART I — Financial Information
Item 1. Financial Statements
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data)
(Unaudited)
 As of
March 31,
2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$895 $1,087 
Accounts and notes receivable, net of allowance of $27 and $18, respectively
593 547 
Inventories, net108 96 
Prepaids and other current assets90 86 
Total current assets1,686 1,816 
Property and equipment, net of accumulated depreciation and amortization of $1,014 and $979, respectively
2,023 2,035 
Operating lease assets, net1,137 1,130 
Intangible assets, net11,451 11,417 
Goodwill6,050 6,006 
Net investment in property leased to franchisees82 80 
Other assets, net743 762 
Total assets$23,172 $23,246 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and drafts payable$637 $614 
Other accrued liabilities917 947 
Gift card liability169 221 
Current portion of long-term debt and finance leases105 96 
Total current liabilities1,828 1,878 
Long-term debt, net of current portion12,903 12,916 
Finance leases, net of current portion337 333 
Operating lease liabilities, net of current portion1,074 1,070 
Other liabilities, net1,689 1,822 
Deferred income taxes, net1,380 1,374 
Total liabilities19,211 19,393 
Shareholders’ equity:
Common shares, no par value; Unlimited shares authorized at March 31, 2022 and December 31, 2021; 308,684,403 shares issued and outstanding at March 31, 2022; 309,025,068 shares issued and outstanding at December 31, 2021
2,059 2,156 
Retained earnings804 791 
Accumulated other comprehensive income (loss)(573)(710)
Total Restaurant Brands International Inc. shareholders’ equity2,290 2,237 
Noncontrolling interests1,671 1,616 
Total shareholders’ equity3,961 3,853 
Total liabilities and shareholders’ equity$23,172 $23,246 
See accompanying notes to condensed consolidated financial statements.
4

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data)
(Unaudited)

Three Months Ended
March 31,
20222021
Revenues:
Sales$609 $507 
Franchise and property revenues615 548 
Advertising revenues and other services227 205 
Total revenues1,451 1,260 
Operating costs and expenses:
Cost of sales494 401 
Franchise and property expenses130 116 
Advertising expenses and other services247 237 
General and administrative expenses133 104 
(Income) loss from equity method investments13 2 
Other operating expenses (income), net(16)(42)
Total operating costs and expenses1,001 818 
Income from operations450 442 
Interest expense, net127 124 
Income before income taxes323 318 
Income tax expense53 47 
Net income270 271 
Net income attributable to noncontrolling interests (Note 13)87 92 
Net income attributable to common shareholders$183 $179 
Earnings per common share
Basic$0.59 $0.59 
Diluted$0.59 $0.58 
Weighted average shares outstanding (in millions):
Basic309 306 
Diluted458 465 
See accompanying notes to condensed consolidated financial statements.

5

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In millions of U.S. dollars)
(Unaudited)

Three Months Ended
March 31,
 20222021
Net income$270 $271 
Foreign currency translation adjustment57 54 
Net change in fair value of net investment hedges, net of tax of $25 and $20
(35)29 
Net change in fair value of cash flow hedges, net of tax of $(60) and $(33)
161 95 
Amounts reclassified to earnings of cash flow hedges, net of tax of $(7) and $(8)
21 24 
Gain (loss) recognized on other, net of tax of $0 and $0
1 1 
Other comprehensive income (loss)205 203 
Comprehensive income (loss)475 474 
Comprehensive income (loss) attributable to noncontrolling interests152 160 
Comprehensive income (loss) attributable to common shareholders$323 $314 
See accompanying notes to condensed consolidated financial statements.

6

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders’ Equity
(In millions of U.S. dollars, except shares and per share data)
(Unaudited)
 Issued Common SharesRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
 SharesAmount
Balances at December 31, 2021309,025,068 $2,156 $791 $(710)$1,616 $3,853 
Stock option exercises87,177 3 — — — 3 
Share-based compensation— 24 — — — 24 
Issuance of shares906,260 13 — — — 13 
Dividends declared ($0.54 per share)
— — (167)— — (167)
Dividend equivalents declared on restricted stock units— 3 (3)— —  
Distributions declared by Partnership on Partnership exchangeable units ($0.54 per unit)
— — — — (78)(78)
Exchange of Partnership exchangeable units for RBI common shares1,525,900 21 — (3)(18) 
Repurchase of RBI common shares(2,860,002)(161)— — — (161)
Restaurant VIE contributions (distributions)— — — — (1)(1)
Net income— — 183 — 87 270 
Other comprehensive income (loss)— — — 140 65 205 
Balances at March 31, 2022308,684,403 $2,059 $804 $(573)$1,671 $3,961 
See accompanying notes to condensed consolidated financial statements.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders’ Equity
(In millions of U.S. dollars, except shares and per share data)
(Unaudited)
Issued Common SharesRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
SharesAmount
Balances at December 31, 2020304,718,749 $2,399 $622 $(854)$1,554 $3,721 
Stock option exercises530,963 20 — — — 20 
Share-based compensation— 22 — — — 22 
Issuance of shares1,636,858 9 — — — 9 
Dividends declared ($0.53 per share)
— — (163)— — (163)
Dividend equivalents declared on restricted stock units— 3 (3)— —  
Distributions declared by Partnership on Partnership exchangeable units ($0.53 per unit)
— — — — (82)(82)
Exchange of Partnership exchangeable units for RBI common shares72,671 1 — — (1) 
Restaurant VIE contributions (distributions)— — — — 1 1 
Net income— — 179 — 92 271 
Other comprehensive income (loss)— — — 135 68 203 
Balances at March 31, 2021306,959,241 $2,454 $635 $(719)$1,632 $4,002 
See accompanying notes to condensed consolidated financial statements.
7

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)
 Three Months Ended March 31,
 20222021
Cash flows from operating activities:
Net income$270 $271 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization49 49 
Amortization of deferred financing costs and debt issuance discount7 7 
(Income) loss from equity method investments13 2 
(Gain) loss on remeasurement of foreign denominated transactions(21)(43)
Net (gains) losses on derivatives18 20 
Share-based compensation and non-cash incentive compensation expense27 26 
Deferred income taxes(16)14 
Other9 (8)
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable(46)24 
Inventories and prepaids and other current assets(22)(4)
Accounts and drafts payable18 19 
Other accrued liabilities and gift card liability(91)(117)
Tenant inducements paid to franchisees(2) 
Other long-term assets and liabilities21 6 
Net cash provided by operating activities234 266 
Cash flows from investing activities:
Payments for property and equipment(10)(15)
Net proceeds from disposal of assets, restaurant closures, and refranchisings4 11 
Settlement/sale of derivatives, net3 2 
Other investing activities, net4 (5)
Net cash (used for) provided by investing activities1 (7)
Cash flows from financing activities:
Proceeds from long-term debt1  
Repayments of long-term debt and finance leases(21)(27)
Payment of dividends on common shares and distributions on Partnership exchangeable units(241)(239)
Repurchase of common shares(161) 
Proceeds from stock option exercises3 20 
(Payments) proceeds from derivatives(6)(16)
Other financing activities, net(1)1 
Net cash (used for) provided by financing activities(426)(261)
Effect of exchange rates on cash and cash equivalents(1)5 
Increase (decrease) in cash and cash equivalents(192)3 
Cash and cash equivalents at beginning of period1,087 1,560 
Cash and cash equivalents at end of period$895 $1,563 
Supplemental cash flow disclosures:
Interest paid$75 $72 
Income taxes paid$42 $96 
See accompanying notes to condensed consolidated financial statements.
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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Description of Business and Organization
Restaurant Brands International Inc. (the “Company”, “RBI”, “we”, “us” or “our”) is a Canadian corporation that serves as the sole general partner of Restaurant Brands International Limited Partnership (“Partnership”). We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King® brand (“Burger King” or “BK”), chicken under the Popeyes® brand (“Popeyes” or “PLK”) and sandwiches under the Firehouse Subs® brand (“Firehouse” or “FHS”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of March 31, 2022, we franchised or owned 5,320 Tim Hortons restaurants, 19,266 Burger King restaurants, 3,771 Popeyes restaurants and 1,219 Firehouse Subs restaurants, for a total of 29,576 restaurants, and operate in more than 100 countries. Approximately 100% of current system-wide restaurants are franchised.
All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated.
Note 2. Basis of Presentation and Consolidation
We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 23, 2022.
The Financial Statements include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation.
We are the sole general partner of Partnership and, as such we have the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership, subject to the terms of the amended and restated limited partnership agreement of Partnership (the “partnership agreement”) and applicable laws. As a result, we consolidate the results of Partnership and record a noncontrolling interest in our condensed consolidated balance sheets and statements of operations with respect to the remaining economic interest in Partnership we do not hold.
We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable.
As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE.
Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant, but Tim Hortons owns the restaurant’s assets. We perform an analysis to determine if the legal entity in which operations are conducted is a VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). As of March 31, 2022 and December 31, 2021, we determined that we are the primary beneficiary of 45 and 46 Restaurant VIEs, respectively, and accordingly, have consolidated the results of operations, assets and
9

liabilities, and cash flows of these Restaurant VIEs in our Financial Statements. Material intercompany accounts and transactions have been eliminated in consolidation.
In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year.
The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.
The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts.
Certain prior year amounts in the accompanying Financial Statements and notes to the Financial Statements have been reclassified in order to be comparable with the current year classification. These consist of the year-to-date March 31, 2021 reclassification of technology fee revenues from Franchise and property revenues to Advertising revenues and other services and technology expenses from General and administrative expenses to Advertising expenses and other services, both of which were not significant for the three months ended March 31, 2021. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income.
Note 3. New Accounting Pronouncements
Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships.
Lessors—Certain Leases with Variable Lease Payments – In July 2021, the FASB issued guidance that requires lessors to classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if (a) the lease would have been classified as a sales-type lease or a direct financing lease in accordance with lease classification criteria and (b) the lessor would have otherwise recognized a day-one loss. This amendment is effective in 2022 with early adoption permitted. This guidance may be applied either retrospectively to leases that commenced or were modified on or after the adoption of lease guidance we adopted in 2019 or prospectively to leases that commence or are modified on or after the date that this new guidance is applied. The adoption of this new guidance during the three months ended March 31, 2022 did not have a material impact on our Financial Statements.

Note 4. Firehouse Acquisition
On December 15, 2021, we completed the acquisition of Firehouse Subs (the “Firehouse Acquisition”) which complements RBI's existing portfolio. Like RBI's other brands, the Firehouse Subs brand is managed independently, while benefiting from the global scale and resources of RBI. The Firehouse Acquisition was accounted for as a business combination using the acquisition method of accounting.
Total consideration in connection with the Firehouse Acquisition was $1,018 million, subject to potential further post-closing adjustments. The consideration was funded through cash on hand and $533 million of incremental borrowings under our senior secured term loan facility.
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Fees and expenses related to the Firehouse Acquisition and related financings (“FHS Transaction costs”) totaled $1 million during the three months ended March 31, 2022, consisting of professional fees, compensation related expenses and integration costs which are classified as general and administrative expenses in the accompanying condensed consolidated statements of operations.
During the three months ended March 31, 2022, we adjusted our preliminary estimate of the fair value of net assets acquired. The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions):
December 15, 2021
Total current assets$21 
Property and equipment4 
Firehouse Subs brand
768 
Operating lease assets9 
Total liabilities(48)
Total identifiable net assets754 
Goodwill264 
Total consideration$1,018 
The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding increase in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price (in millions):
Increase (Decrease) in Goodwill
Change in:
Operating lease assets$(9)
Total liabilities35 
Total consideration(15)
   Total increase in goodwill$11 
The purchase price allocation reflects preliminary fair value estimates based on management's analysis, including preliminary work performed by third-party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period.
The Firehouse Subs brand has been assigned an indefinite life and, therefore, will not be amortized, but rather tested annually for impairment. Goodwill attributable to the Firehouse Acquisition will be amortized and deductible for tax purposes. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company. We have not yet allocated goodwill related to the Firehouse Acquisition to reporting units for goodwill impairment testing purposes. Goodwill will be allocated to reporting units when the purchase price allocation is finalized during the measurement period.
The results of operations of Firehouse Subs have been included in our unaudited condensed consolidated financial statements for the three months ended March 31, 2022. The Firehouse Acquisition is not material to our unaudited condensed consolidated financial statements, and therefore, supplemental pro forma financial information for 2021 related to the acquisition is not included herein.
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Note 5. Leases
Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions):
Three Months Ended
March 31,
20222021
Lease income - operating leases
Minimum lease payments$113 $113 
Variable lease payments73 66 
Amortization of favorable and unfavorable income lease contracts, net 1 
Subtotal - lease income from operating leases186 180 
Earned income on direct financing and sales-type leases2 2 
Total property revenues$188 $182 
Note 6. Revenue Recognition
Contract Liabilities
Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities between December 31, 2021 and March 31, 2022 (in millions):
Contract LiabilitiesTHBKPLKFHSConsolidated
Balance at December 31, 2021$65 $410 $56 $ $531 
Effect of business combination   8 8 
Recognized during period and included in the contract liability balance at the beginning of the year(2)(11)(2) (15)
Increase, excluding amounts recognized as revenue during the period3 9 3  15 
Impact of foreign currency translation (4)  (4)
Balance at March 31, 2022$66 $404 $57 $8 $535 
The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 (in millions):
Contract liabilities expected to be recognized inTHBKPLKFHSConsolidated
Remainder of 2022$8 $26 $3 $1 $38 
202310 33 4 2 49 
20249 32 4 1 46 
20258 32 4 1 45 
20267 31 3 1 42 
Thereafter24 250 39 2 315 
Total$66 $404 $57 $8 $535 

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Disaggregation of Total Revenues
Total revenues consist of the following (in millions):
Three Months Ended
March 31,
20222021
Sales$609 $507 
Royalties403 346 
Property revenues188 182 
Franchise fees and other revenue24 20 
Advertising revenues and other services227 205 
Total revenues$1,451 $1,260 
Note 7. Earnings per Share
An economic interest in Partnership common equity is held by the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”), which is reflected as a noncontrolling interest in our equity. See Note 13, Shareholders’ Equity.
Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for the period. We apply the treasury stock method to determine the dilutive weighted average common shares represented by outstanding equity awards, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of noncontrolling interests.
The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts):

Three Months Ended March 31,
20222021
Numerator:
Net income attributable to common shareholders - basic$183 $179 
Add: Net income attributable to noncontrolling interests86 91 
Net income available to common shareholders and noncontrolling interests - diluted$269 $270 
Denominator:
Weighted average common shares - basic309 306 
Exchange of noncontrolling interests for common shares (Note 13)145 155 
Effect of other dilutive securities4 4 
Weighted average common shares - diluted458 465 
Basic earnings per share (a)$0.59 $0.59 
Diluted earnings per share (a)$0.59 $0.58 
Anti-dilutive securities outstanding4 5 
(a) Earnings per share may not recalculate exactly as it is calculated based on unrounded numbers.
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Note 8. Intangible Assets, net and Goodwill
Intangible assets, net and goodwill consist of the following (in millions):

As of
March 31, 2022December 31, 2021
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Identifiable assets subject to amortization:
   Franchise agreements$718 $(295)$423 $722 $(290)$432 
   Favorable leases101 (62)39 104 (63)41 
      Subtotal819 (357)462 826 (353)473 
Indefinite-lived intangible assets:
   Tim Hortons brand
$6,757 $— $6,757 $6,695 $— $6,695 
   Burger King brand
2,109 — 2,109 2,126 — 2,126 
   Popeyes brand
1,355 — 1,355 1,355 — 1,355 
   Firehouse Subs brand
768 — 768 768 — 768 
      Subtotal10,989 — 10,989 10,944 — 10,944 
Intangible assets, net$11,451 $11,417 
Goodwill
   Tim Hortons segment$4,344 $4,306 
   Burger King segment596 601 
   Popeyes segment846 846 
   Firehouse Subs segment 264 253 
      Total$6,050 $6,006 
Amortization expense on intangible assets totaled $10 million for the three months ended March 31, 2022 and 2021. The change in the brands and goodwill balances during the three months ended March 31, 2022 was due to the impact of foreign currency translation and the impact of adjustments to the preliminary allocation of consideration to the net tangible and intangible assets acquired in the Firehouse Acquisition.
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Note 9. Equity Method Investments
The aggregate carrying amount of our equity method investments was $181 million and $194 million as of March 31, 2022 and December 31, 2021, respectively, and is included as a component of Other assets, net in our accompanying condensed consolidated balance sheets.
Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 15.5% equity interest in Carrols Restaurant Group, Inc. based on the quoted market price on March 31, 2022 was approximately $21 million. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on March 31, 2022 was approximately $41 million. We have evaluated recent declines in the market value of these equity method investments and concluded they are not other than temporary and as such no impairments have been recognized at March 31, 2022.
We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions):

Three Months Ended March 31,
20222021
Revenues from affiliates:
Royalties$88 $65 
Advertising revenues and other services16 13 
Property revenues7 8 
Franchise fees and other revenue4 4 
Total$115 $90 
At March 31, 2022 and December 31, 2021, we had $50 million and $48 million, respectively, of accounts receivable, net from our equity method investments which were recorded in Accounts and notes receivable, net in our condensed consolidated balance sheets.
With respect to our TH business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $3 million during the three months ended March 31, 2022 and 2021.
We recognized $4 million of rent expense associated with the TIMWEN Partnership during the three months ended March 31, 2022 and 2021.
(Income) loss from equity method investments reflects our share of investee net income or loss and non-cash dilution gains or losses from changes in our ownership interests in equity investees.
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Note 10. Other Accrued Liabilities and Other Liabilities, net
Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions):

As of
March 31,
2022
December 31,
2021
Current:
Dividend payable$244 $241 
Interest payable89 63 
Accrued compensation and benefits46 99 
Taxes payable127 106 
Deferred income45 48 
Accrued advertising expenses37 43 
Restructuring and other provisions91 90 
Current portion of operating lease liabilities144 140 
Other94 117 
Other accrued liabilities$917 $947 
Noncurrent:
Taxes payable$543 $533 
Contract liabilities535 531 
Derivatives liabilities422 575 
Unfavorable leases62 65 
Accrued pension48 47 
Deferred income47 37 
Other32 34 
Other liabilities, net$1,689 $1,822 

Note 11. Long-Term Debt
Long-term debt consists of the following (in millions):
As of
March 31,
2022
December 31,
2021
Term Loan B$5,230 $5,243 
Term Loan A1,250 1,250 
3.875% First Lien Senior Notes due 2028
1,550 1,550 
3.50% First Lien Senior Notes due 2029
750 750 
5.75% First Lien Senior Notes due 2025
500 500 
4.375% Second Lien Senior Notes due 2028
750 750 
4.00% Second Lien Senior Notes due 2030
2,900 2,900 
TH Facility and other175 173 
Less: unamortized deferred financing costs and deferred issue discount(131)(138)
Total debt, net12,974 12,978 
    Less: current maturities of debt(71)(62)
Total long-term debt$12,903 $12,916 

16

Revolving Credit Facility
As of March 31, 2022, we had no amounts outstanding under our senior secured revolving credit facility (the “Revolving Credit Facility”), had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $998 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or equity repurchases, fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit.
TH Facility
One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of March 31, 2022, we had outstanding C$214 million under the TH Facility with a weighted average interest rate of 2.33%.
RE Facility
One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of $50 million with a maturity date of October 12, 2028 (the “RE Facility”). The interest rate applicable to the RE Facility is, at our option, either (i) a base rate, subject to a floor of 0.50%, plus an applicable margin of 0.50% or (ii) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a margin based on duration), subject to a floor of 0.00%, plus an applicable margin of 1.50%. Obligations under the RE Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the RE Facility are secured by certain parcels of real estate. As of March 31, 2022, we had approximately $1 million outstanding under the RE Facility with a weighted average interest rate of 1.77%.
Restrictions and Covenants
As of March 31, 2022, we were in compliance with all applicable financial debt covenants under our senior secured term loan facilities and Revolving Credit Facility (together the "Credit Facilities"), the TH Facility, the RE Facility, and the indentures governing our Senior Notes.
Fair Value Measurement
The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions):
As of
March 31,
2022
December 31,
2021
Fair value of our variable term debt and senior notes$12,370 $12,851 
Principal carrying amount of our variable term debt and senior notes12,930 12,943 
Interest Expense, net
Interest expense, net consists of the following (in millions):
Three Months Ended March 31,
20222021
Debt (a)$115 $113 
Finance lease obligations