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Section 1: 8-K (8-K)

Document


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

 

FORM 8-K

 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 11, 2019

 

 RESTAURANT BRANDS INTERNATIONAL INC.
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
 
 
Canada
 
001-36786
 
98-1202754
Ontario
 
001-36787
 
98-1206431
(State or other jurisdiction of
 
(Commission
 
(I.R.S. Employer
incorporation)
 
File Number)
 
Identification No.)

Restaurant Brands International Inc.
Restaurant Brands International Limited Partnership
130 King Street West, Suite 300
Toronto, Ontario M5X 1E1
(Address of principal executive offices, including Zip Code)

(905) 845-6511
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)





☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐
 
 








Item 2.02     Results of Operations and Financial Condition.

On February 11, 2019, Restaurant Brands International Inc. (the “Company”) issued a press release and supplemental financial and operational information regarding results for the full year and three months ended December 31, 2018. The press release and supplemental financial and operational information are furnished as Exhibit 99 hereto.

Item 9.01     Financial Statements and Exhibits

Exhibit
Number
  
Description
 






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
RESTAURANT BRANDS INTERNATIONAL INC.
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP, by its general partner RESTAURANT BRANDS INTERNATIONAL INC.
 
 
 
Date: February 11, 2019
 
/s/ Matthew Dunnigan
 
 
Name:
Matthew Dunnigan
 
 
Title:
Chief Financial Officer



(Back To Top)

Section 2: EX-99 (EXHIBIT 99)

Exhibit


EXHIBIT 99
396687300_rbilogoa26.jpg
Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2018 Results
RBI achieves consolidated 2018 system-wide sales growth of 7.4%, and increases 2019 dividend target by 11%
TIM HORTONS® comparable sales in Canada accelerates in Q4 to 2.2%, driven by the 'Winning Together' plan
BURGER KING® delivers strong global net restaurant growth, with 2018 net openings of over 1,000 restaurants
POPEYES® continues double-digit profitability growth through accelerated restaurant expansion
 
Toronto, Ontario – February 11, 2019 – Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2018.
 
Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. (“RBI”) commented, “I am pleased to report that our business continued to deliver strong system-wide sales growth in 2018, driven by acceleration of net restaurant growth at Burger King and Popeyes and improved momentum in comparable sales at Tim Hortons through our 'Winning Together' plan. We have demonstrated our increased focus on technology and made notable progress against many of our initiatives including delivery, kiosks, and mobile app development. Throughout the year, we continued to maintain a balanced approach to capital allocation through our increased dividend, share repurchases, and reinvestment in our brands, illustrating our confidence in the long-term growth potential of our business. We remain focused on further growing franchisee profitability and improving guest experience, which we believe will drive value for all of our stakeholders for many years to come.”

2018 Growth and Profitability Highlights:

System-wide Sales Growth of 7.4%
Net Restaurant Growth of 5.5%
Diluted EPS of $2.42 versus $2.54 in prior year
Adjusted Diluted EPS of $2.63 versus $2.10 in prior year
Net Income Attributable to Common Shareholders and Noncontrolling Interests of $1,143 million versus $1,211 million in prior year
Adjusted EBITDA of $2,212 million increased 4.1% organically versus the prior year on a combined basis (including a full year of Popeyes in both periods)

Dividend Update:

RBI announced that its board of directors declared a dividend of $0.50 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership (“RBI LP”) for the first quarter of 2019
In connection with the declared dividend, RBI also announced that it is targeting a total of $2.00 in dividends per common share and partnership exchangeable unit of RBI LP for 2019
















1





Consolidated Operational Highlights
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2018
 
2017
 
2018
 
2017
 
(unaudited)
 
(unaudited)
System-wide Sales Growth
 
 
 
 
 
 
 
 
 
 
 
    TH
 
2.4
%
 
 
2.4
 %
 
 
2.4
%
 
 
3.0
 %
    BK
 
8.4
%
 
 
12.3
 %
 
 
8.9
%
 
 
10.1
 %
    PLK
 
6.3
%
 
 
6.8
 %
 
 
8.9
%
 
 
5.1
 %
Consolidated
 
6.8
%
 
 
9.3
 %
 
 
7.4
%
 
 
7.9
 %
System-wide Sales (in US$ millions)
 
 
 
 
 
 
 
 
 
 
 
    TH
$
1,727
 
$
1,745
 
$
6,869
 
$
6,717
    BK
$
5,528
 
$
5,302
 
$
21,624
 
$
20,075
    PLK
$
934
 
$
888
 
$
3,732
 
$
3,512
Consolidated
$
8,188
 
$
7,935
 
$
32,225
 
$
30,304
Net Restaurant Growth
 
 
 
 
 
 
 
 
 
 
 
    TH
 
2.1
%
 
 
2.9
 %
 
 
2.1
%
 
 
2.9
 %
    BK
 
6.1
%
 
 
6.5
 %
 
 
6.1
%
 
 
6.5
 %
    PLK
 
7.3
%
 
 
6.1
 %
 
 
7.3
%
 
 
6.1
 %
Consolidated
 
5.5
%
 
 
5.8
 %
 
 
5.5
%
 
 
5.8
 %
System Restaurant Count at Period End
 
 
 
 
 
 
 
 
 
 
 
    TH
 
4,846
 
 
4,748
 
 
4,846
 
 
4,748
    BK
 
17,796
 
 
16,767
 
 
17,796
 
 
16,767
    PLK
 
3,102
 
 
2,892
 
 
3,102
 
 
2,892
Consolidated
 
25,744
 
 
24,407
 
 
25,744
 
 
24,407
Comparable Sales
 
 
 
 
 
 
 
 
 
 
 
    TH
 
1.9
%
 
 
0.1
 %
 
 
0.6
%
 
 
(0.1
)%
    BK
 
1.7
%
 
 
4.6
 %
 
 
2.0
%
 
 
3.1
 %
    PLK
 
0.1
%
 
 
(1.3
)%
 
 
1.6
%
 
 
(1.5
)%

Note: System-wide sales growth and comparable sales are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. System-wide sales are driven by sales at franchise restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales. For the twelve months ended December 31, 2017, PLK and consolidated figures are shown for informational purposes only.








2



Consolidated Financial Highlights
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions, except per share data)
2018
 
2018
 
2017
 
2018
 
2018
 
2017
 
New Standard
 
Previous Standards
 
Previous Standards
 
New Standard
 
Previous Standards
 
Previous Standards
 
(unaudited)
 
(unaudited)
Total Revenues
$
1,385

 
$
1,209

 
$
1,234

 
$
5,357

 
$
4,607

 
$
4,576

Net Income Attributable to Common Shareholders and Noncontrolling Interests
$
301

 
$
319

 
$
758

 
$
1,143

 
$
1,175

 
$
1,211

Diluted Earnings per Share
$
0.64

 
$
0.68

 
$
1.59

 
$
2.42

 
$
2.49

 
$
2.54

 
 
 
 
 
 
 
 
 
 
 
 
TH Adjusted EBITDA(1)
$
297

 
$
295

 
$
304

 
$
1,127

 
$
1,128

 
$
1,136

BK Adjusted EBITDA(1)
$
247

 
$
265

 
$
265

 
$
928

 
$
950

 
$
903

PLK Adjusted EBITDA(1)
$
37

 
$
42

 
$
37

 
$
157

 
$
169

 
$
107

Adjusted EBITDA(2)
$
581

 
$
602

 
$
606

 
$
2,212

 
$
2,247

 
$
2,146

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income(2)
$
318

 
$
334

 
$
314

 
$
1,242

 
$
1,267

 
$
1,002

Adjusted Diluted Earnings per Share(2)
$
0.68

 
$
0.71

 
$
0.66

 
$
2.63

 
$
2.68

 
$
2.10


(1)
TH Adjusted EBITDA, BK Adjusted EBITDA, and PLK Adjusted EBITDA are our measures of segment profitability.
(2)
Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" for further detail.

Since RBI’s consolidated results include Popeyes starting in Q2 of 2017 (post acquisition), RBI's consolidated year-over-year results for the twelve months ended December 31, 2018 are favorably impacted by the inclusion of a full year of Popeyes in 2018 and only a partial year in 2017.

Additionally, effective January 1, 2018, we adopted the new revenue recognition accounting standard ("New Standard"). Our consolidated financial statements for 2018 reflect the application of the New Standard, while our consolidated financial statements for 2017 were prepared under the guidance of previously applicable accounting standards ("Previous Standards"). Our results presented herein indicate which revenue recognition methodology applies in each respective period.
 
The implementation of the New Standard impacted our year-over-year results on a consolidated basis and for each segment as follows:
Total Revenues increased primarily as a result of the inclusion of advertising fund contributions
Selling, General, and Administrative Expenses increased as a result of the inclusion of advertising fund expenditures
 
The year-over-year change in Combined Total Revenues on an organic basis primarily reflects a decrease in company restaurant revenue (VIE deconsolidation at TH and refranchising activity at BK and PLK) and a decrease in supply chain related sales at TH in the first half of 2018, partially offset by growth in system-wide sales.

Under both the New Standard and Previous Standards, the decrease in Net Income Attributable to Common Shareholders and Noncontrolling Interests for the year and fourth quarter was driven by an increase in income tax expense, and for the fourth quarter, the redemption of our preferred shares in December of 2017.

The year-over year change in Combined Adjusted EBITDA on an organic basis primarily reflects growth in system-wide sales, partially offset by a decrease in supply chain related income at TH in the first half of 2018.







3



TH Segment Results
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
2018
 
2017
 
2018
 
2017
 
New Standard
 
Previous Standards
 
New Standard
 
Previous Standards
 
(unaudited)
 
(unaudited)
System-wide Sales Growth
 
2.4
%
 
 
2.4
%
 
 
2.4
%
 
 
3.0
 %
System-wide Sales
$
1,727
 
$
1,745
 
$
6,869
 
$
6,717
Comparable Sales
 
1.9
%
 
 
0.1
%
 
 
0.6
%
 
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
Net Restaurant Growth
 
2.1
%
 
 
2.9
%
 
 
2.1
%
 
 
2.9
 %
System Restaurant Count at Period End
 
4,846
 
 
4,748
 
 
4,846
 
 
4,748
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
574
 
$
562
 
$
2,201
 
$
2,229
Franchise and Property Revenues
$
278
 
$
260
 
$
1,091
 
$
926
Total Revenues
$
852
 
$
822
 
$
3,292
 
$
3,155
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Sales
$
438
 
$
433
 
$
1,688
 
$
1,707
Franchise and Property Expenses
$
69
 
$
95
 
$
279
 
$
336
Segment SG&A
$
76
 
$
20
 
$
314
 
$
91
Segment Depreciation and Amortization
$
24
 
$
27
 
$
102
 
$
103
Adjusted EBITDA(1)(3)
$
297
 
$
304
 
$
1,127
 
$
1,136

(3)
TH Adjusted EBITDA includes $5 million and $4 million of cash distributions received from equity method investments for the three months ended December 31, 2018 and 2017, respectively. TH Adjusted EBITDA includes $15 million and $13 million of cash distributions received from equity method investments for the twelve months ended December 31, 2018 and 2017, respectively.

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 2.1%. Comparable sales were 0.6% and 1.9%, including Canada comparable sales of 0.9% and 2.2%, for the year and fourth quarter, respectively.

The year-over-year change in Total Revenues on an organic basis reflects a decrease in company restaurant revenue (VIE deconsolidation) and a decrease in supply chain related sales in the first half of 2018, partially offset by growth in system-wide sales.

The year-over-year change in Adjusted EBITDA on an organic basis reflects growth in system-wide sales, partially offset by a decrease in supply chain related income in the first half of 2018.




4



BK Segment Results
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
2018
 
2017
 
2018
 
2017
 
New Standard
 
Previous Standards
 
New Standard
 
Previous Standards
 
(unaudited)
 
(unaudited)
System-wide Sales Growth
 
8.4
%
 
 
12.3
%
 
 
8.9
%
 
 
10.1
%
System-wide Sales
$
5,528
 
$
5,302
 
$
21,624
 
$
20,075
Comparable Sales
 
1.7
%
 
 
4.6
%
 
 
2.0
%
 
 
3.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Net Restaurant Growth
 
6.1
%
 
 
6.5
%
 
 
6.1
%
 
 
6.5
%
System Restaurant Count at Period End
 
17,796
 
 
16,767
 
 
17,796
 
 
16,767
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
19
 
$
23
 
$
75
 
$
94
Franchise and Property Revenues
$
408
 
$
322
 
$
1,576
 
$
1,125
Total Revenues
$
427
 
$
345
 
$
1,651
 
$
1,219
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Sales
$
17
 
$
20
 
$
67
 
$
86
Franchise and Property Expenses
$
34
 
$
37
 
$
131
 
$
135
Segment SG&A
$
144
 
$
33
 
$
577
 
$
143
Segment Depreciation and Amortization
$
12
 
$
9
 
$
48
 
$
47
Adjusted EBITDA(1)(4)
$
247
 
$
265
 
$
928
 
$
903

(4)
BK Adjusted EBITDA includes $4 million and $1 million of cash distributions received from equity method investments for the three months ended December 31, 2018 and 2017, respectively. BK Adjusted EBITDA includes $5 million and $1 million of cash distributions received from equity method investments for the twelve months ended December 31, 2018 and 2017, respectively.

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 6.1% as well as comparable sales of 2.0% and 1.7%, respectively, including US comparable sales of 1.4% and 0.8%, respectively.

The year-over-year change in Total Revenues on an organic basis reflects system-wide sales growth, partially offset by a decrease in company restaurant revenue (related to refranchisings) and a decrease in franchise related fees.

The year-over-year change in Adjusted EBITDA on an organic basis reflects growth in system-wide sales, partially offset by a decrease in franchise related fees.






5



PLK Segment Results
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
2018
 
2017
 
2018
 
2017
 
New Standard
 
Previous Standards
 
New Standard
 
Previous Standards
 
(unaudited)
 
(unaudited)
System-wide Sales Growth
 
6.3
%
 
 
6.8
 %
 
 
8.9
%
 
 
5.1
 %
System-wide Sales
$
934
 
$
888
 
$
3,732
 
$
3,512
Comparable Sales
 
0.1
%
 
 
(1.3
)%
 
 
1.6
%
 
 
(1.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
Net Restaurant Growth
 
7.3
%
 
 
6.1
 %
 
 
7.3
%
 
 
6.1
 %
System Restaurant Count at Period End
 
3,102
 
 
2,892
 
 
3,102
 
 
2,892
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
19
 
$
21
 
$
79
 
$
67
Franchise and Property Revenues
$
87
 
$
46
 
$
335
 
$
135
Total Revenues
$
106
 
$
67
 
$
414
 
$
202
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Sales
$
15
 
$
20
 
$
63
 
$
57
Franchise and Property Expenses
$
5
 
$
3
 
$
12
 
$
7
Segment SG&A
$
53
 
$
13
 
$
193
 
$
40
Segment Depreciation and Amortization
$
2
 
$
5
 
$
10
 
$
9
Adjusted EBITDA(1)
$
37
 
$
37
 
$
157
 
$
107

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 7.3%. For the year and fourth quarter, comparable sales were 1.6% and 0.1%, respectively, including US comparable sales of 0.9% and (0.1)%, respectively.

The year-over-year change in Combined Total Revenues on an organic basis reflects system-wide sales growth, partially offset by a decrease in company restaurant revenue (related to refranchisings).

The year-over-year change in Combined Adjusted EBITDA on an organic basis reflects growth in system-wide sales, and for the full year, effective cost management.




6



Cash and Liquidity

As of December 31, 2018, total debt was $12.3 billion, net debt (total debt less cash and cash equivalents of $0.9 billion) was $11.4 billion, and net leverage was 5.1x. During the fourth quarter, we completed the previously announced repurchase of 10 million partnership exchangeable units for approximately $561 million. The RBI board of directors has declared a dividend of $0.50 per common share and partnership exchangeable unit of RBI LP for the first quarter of 2019. The dividend will be payable on April 3, 2019 to shareholders and unitholders of record at the close of business on March 15, 2019. In connection with the declared dividend, RBI also announced that it is targeting a total of $2.00 in dividends per common share and partnership exchangeable unit of RBI LP for 2019.

Investor Conference Call
 
We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Monday, February 11, 2019, to review financial results for the full year and fourth quarter ended December 31, 2018. The earnings call will be broadcast live via our investor relations website at http://investor.rbi.com and a replay will be available for 30 days following the release. The dial-in number is (877) 317-6711 for U.S. callers, (866) 450-4696 for Canadian callers, and (412) 317-5475 for callers from other countries.

Investor Day

We will hold an Investor Day Conference on May 15, 2019 in New York City. Attendance will be by invitation only, and the conference will be broadcast live via our investor relations website at http://investor.rbi.com. For additional information about the conference, please email investorday@rbi.com.

Contacts

Investors: investor@rbi.com
Media: media@rbi.com
 
About Restaurant Brands International Inc.
 
Restaurant Brands International Inc. (“RBI”) is one of the world’s largest quick service restaurant companies with more than $30 billion in system-wide sales and over 25,000 restaurants in more than 100 countries and U.S. territories. RBI owns three of the world’s most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, and POPEYES®. These independently operated brands have been serving their respective guests, franchisees and communities for over 45 years. To learn more about RBI, please visit the company’s website at www.rbi.com.

Forward-Looking Statements

This press release contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. These forward-looking statements include statements about our expectations regarding our confidence in the long-term growth potential of our business; our focus on growing franchisee profitability and improving guest experience as drivers of long-term value for all of our stakeholders; the incurrence of PLK transaction costs; and our target total dividend for 2019. The factors that could cause actual results to differ materially from RBI’s expectations are detailed in filings of RBI with the Securities and Exchange Commission and applicable Canadian securities regulatory authorities, such as its annual and quarterly reports and current reports on Form 8-K, and include the following: risks related to our ability to successfully implement our domestic and international growth strategy; risks related to our ability to compete domestically and internationally in an intensely competitive industry; and risks related to our ability to generate sufficient liquidity to achieve our target total dividend for 2019 and satisfy our debt service and other obligations. Other than as required under U.S. federal securities laws or Canadian securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, change in expectations or otherwise.


7



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 December 31,
 
2018
 
2018
 
2018
 
2017
 
New Standard
 
Total Adjustments
 
Previous Standards
 
Previous Standards
Revenues:
 
 
 
 
 
 
 
Sales
$
612

 
$

 
$
612

 
$
606

Franchise and property revenues
773

 
(176
)
 
597

 
628

Total revenues
1,385

 
(176
)
 
1,209

 
1,234

Operating costs and expenses:
 
 
 
 
 
 
 
Cost of sales
470

 

 
470

 
473

Franchise and property expenses
108

 

 
108

 
135

Selling, general and administrative expenses
297

 
(197
)
 
100

 
97

(Income) loss from equity method investments
(5
)
 
(1
)
 
(6
)
 
(3
)
Other operating expenses (income), net
(1
)
 
(1
)
 
(2
)
 
27

Total operating costs and expenses
869

 
(199
)
 
670

 
729

Income from operations
516

 
23

 
539

 
505

Interest expense, net
130

 

 
130

 
137

Loss on early extinguishment of debt

 

 

 
43

Income before income taxes
386

 
23

 
409

 
325

Income tax (benefit) expense
85

 
5

 
90

 
(253
)
Net income
301

 
18

 
319

 
578

Net income attributable to noncontrolling interests
138

 
8

 
146

 
364

Preferred shares dividends

 

 

 
53

Gain on redemption of preferred shares

 

 

 
(234
)
Net income attributable to common shareholders
$
163

 
$
10

 
$
173

 
$
395

Earnings per common share:
 
 
 
 
 
 
 
Basic
$
0.65

 
$
0.04

 
$
0.69

 
$
1.64

Diluted
$
0.64

 
$
0.04

 
$
0.68

 
$
1.59

Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
251

 

 
251

 
241

Diluted
469

 

 
469

 
476

Dividends per common share
$
0.45

 

 
$
0.45

 
$
0.21




8



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data)
(Unaudited)
 
Twelve Months Ended December 31,
 
2018
 
2018
 
2018
 
2017
 
New Standard
 
Total Adjustments
 
Previous Standards
 
Previous Standards
Revenues:
 
 
 
 
 
 
 
Sales
$
2,355

 
$

 
$
2,355

 
$
2,390

Franchise and property revenues
3,002

 
(750
)
 
2,252

 
2,186

Total revenues
5,357

 
(750
)
 
4,607

 
4,576

Operating costs and expenses:
 
 
 
 
 
 
 
Cost of sales
1,818

 

 
1,818

 
1,850

Franchise and property expenses
422

 

 
422

 
478

Selling, general and administrative expenses
1,214

 
(785
)
 
429

 
416

(Income) loss from equity method investments
(22
)
 
(6
)
 
(28
)
 
(12
)
Other operating expenses (income), net
8

 
(1
)
 
7

 
109

Total operating costs and expenses
3,440

 
(792
)
 
2,648

 
2,841

Income from operations
1,917

 
42

 
1,959

 
1,735

Interest expense, net
535

 
1

 
536

 
512

Loss on early extinguishment of debt

 

 

 
122

Income before income taxes
1,382

 
41

 
1,423

 
1,101

Income tax (benefit) expense
238

 
9

 
247

 
(134
)
Net income
1,144

 
32

 
1,176

 
1,235

Net income attributable to noncontrolling interests
532

 
15

 
547

 
587

Preferred shares dividends

 

 

 
256

Gain on redemption of preferred shares

 

 

 
(234
)
Net income attributable to common shareholders
$
612

 
$
17

 
$
629

 
$
626

Earnings per common share:
 
 
 
 
 
 
 
Basic
$
2.46

 
$
0.07

 
$
2.53

 
$
2.64

Diluted
$
2.42

 
$
0.07

 
$
2.49

 
$
2.54

Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
249

 

 
249

 
237

Diluted
473

 

 
473

 
477

Dividends per common share
$
1.80

 

 
$
1.80

 
$
0.78



9



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data)
(Unaudited)
 
As of
 
December 31, 2018
 
December 31, 2017
 
New Standard
 
Previous Standards
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
913

 
$
1,097

Accounts and notes receivable, net of allowance of $14 and $16, respectively
452

 
489

Inventories, net
75

 
78

Prepaids and other current assets
60

 
86

Total current assets
1,500

 
1,750

Property and equipment, net of accumulated depreciation and amortization of $704 and $623, respectively
1,996

 
2,133

Intangible assets, net
10,463

 
11,062

Goodwill
5,486

 
5,782

Net investment in property leased to franchisees
54

 
71

Other assets, net
642

 
426

Total assets
$
20,141

 
$
21,224

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts and drafts payable
$
513

 
$
496

Other accrued liabilities
637

 
866

Gift card liability
167

 
215

Current portion of long term debt and capital leases
91

 
78

Total current liabilities
1,408

 
1,655

Term debt, net of current portion
11,823

 
11,801

Capital leases, net of current portion
226

 
244

Other liabilities, net
1,547

 
1,455

Deferred income taxes, net
1,519

 
1,508

Total liabilities
16,523

 
16,663

 
 
 
 
Shareholders’ equity:
 
 
 
Common shares, no par value; unlimited shares authorized at December 31, 2018 and December 31, 2017; 251,532,493 shares issued and outstanding at December 31, 2018; 243,899,476 shares issued and outstanding at December 31, 2017
1,737

 
2,052

Retained earnings
674

 
651

Accumulated other comprehensive income (loss)
(800
)
 
(476
)
Total Restaurant Brands International Inc. shareholders’ equity
1,611

 
2,227

Noncontrolling interests
2,007

 
2,334

Total shareholders’ equity
3,618

 
4,561

Total liabilities and shareholders’ equity
$
20,141

 
$
21,224


10



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)
 
Twelve Months Ended December 31,
 
2018
 
2017
 
New Standard
 
Previous Standards
Cash flows from operating activities:
 
 
 
Net income
$
1,144

 
$
1,235

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
180

 
182

Premiums paid and non-cash loss on early extinguishment of debt

 
119

Amortization of deferred financing costs and debt issuance discount
29

 
33

(Income) loss from equity method investments
(22
)
 
(12
)
Loss (gain) on remeasurement of foreign denominated transactions
(33
)
 
77

Net (gains) losses on derivatives
(40
)
 
31

Share-based compensation expense
48

 
48

Deferred income taxes
29

 
(742
)
Other
5

 
18

Changes in current assets and liabilities, excluding acquisitions and dispositions:
 
 
 
Accounts and notes receivable
19

 
(30
)
Inventories and prepaids and other current assets
(7
)
 
19

Accounts and drafts payable
41

 
14

Other accrued liabilities and gift card liability
(219
)
 
360

Tenant inducements paid to franchisees
(52
)
 
(20
)
Other long-term assets and liabilities
43

 
59

Net cash provided by operating activities
1,165

 
1,391

Cash flows from investing activities:
 
 
 
Payments for property and equipment
(86
)
 
(37
)
Proceeds from disposal of assets, restaurant closures and refranchisings
8

 
26

Net payment for purchase of Popeyes, net of cash acquired

 
(1,636
)
Return of investment on direct financing leases
16

 
16

Settlement/sale of derivatives, net
17

 
772

Other investing activities, net
1

 
1

Net cash provided by (used for) investing activities
(44
)
 
(858
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of long-term debt
75

 
5,850

Repayments of long-term debt and capital leases
(74
)
 
(2,742
)
Payments in connection with redemption of preferred shares
(60
)
 
(3,006
)
Payment of financing costs
(3
)
 
(63
)
Payment of dividends on common and preferred shares and distributions on Partnership exchangeable units
(728
)
 
(664
)
Repurchase of Partnership exchangeable units
(561
)
 
(330
)
Proceeds from stock option exercises
61

 
29

Other financing activities, net
5

 
(10
)
Net cash provided by (used for) financing activities
(1,285
)
 
(936
)
Effect of exchange rates on cash and cash equivalents
(20
)
 
24

Increase (decrease) in cash and cash equivalents
(184
)
 
(379
)
Cash and cash equivalents at beginning of period
1,097

 
1,476

Cash and cash equivalents at end of period
$
913

 
$
1,097

Supplemental cashflow disclosures:
 
 
 
Interest paid
$
561

 
$
447

Income taxes paid
$
433

 
$
200


11



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Key Operating Metrics
 
We evaluate our restaurants and assess our business based on the following operating metrics.
 
System-wide sales growth refers to the percentage change in sales at all franchise and company-owned restaurants in one period from the same period in the prior year. Comparable sales refers to the percentage change in restaurant sales in one period from the same prior year period for restaurants that have been open for 13 months or longer for TH and BK and 17 months or longer for PLK. System-wide sales growth and comparable sales are measured on a constant currency basis, which means that results exclude the effect of foreign currency translation and are calculated by translating prior year results at current year monthly average exchange rates. We analyze key operating metrics on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements.
 
System-wide sales represent sales at all franchise restaurants and company-owned restaurants. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales.

Net restaurant growth refers to the net increase in restaurant count (openings, net of closures) over a trailing twelve month period, divided by the restaurant count at the beginning of the trailing twelve month period.

For 2017, PLK comparable sales, system-wide sales growth and system-wide sales are for the period from October 1, 2017 through December 31, 2017 and from December 26, 2016 through December 31, 2017 for the three and twelve months ended December 31, 2017, respectively. Comparable sales and system-wide sales growth are calculated using the same period in the prior year (October 1, 2016 through December 31, 2016 and December 26, 2015 through December 31, 2016). For 2017, PLK net restaurant growth is for the period from December 26, 2016 through December 31, 2017.

12



 
 
Three Months Ended December 31,
 
 
Twelve Months Ended December 31,
KPIs by Market
 
2018
 
 
2017
 
 
2018
 
 
2017
System-wide Sales Growth
 
 
 
 
 
 
 
 
 
 
 
TH - Canada
 
2.2
 %
 
 
3.0
 %
 
 
2.4
 %
 
 
2.9
 %
TH - Rest of World
 
3.6
 %
 
 
(2.1
)%
 
 
1.9
 %
 
 
3.7
 %
TH - Global
 
2.4
 %
 
 
2.4
 %
 
 
2.4
 %
 
 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
BK - US
 
3.0
 %
 
 
5.9
 %
 
 
3.3
 %
 
 
3.6
 %
BK - Rest of World
 
13.5
 %
 
 
18.5
 %
 
 
14.2
 %
 
 
17.0
 %
BK - Global
 
8.4
 %
 
 
12.3
 %
 
 
8.9
 %
 
 
10.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
PLK - US
 
5.0
 %
 
 
4.6
 %
 
 
7.0
 %
 
 
3.9
 %
PLK - Rest of World
 
14.7
 %
 
 
23.3
 %
 
 
22.0
 %
 
 
14.5
 %
PLK - Global
 
6.3
 %
 
 
6.8
 %
 
 
8.9
 %
 
 
5.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
System-wide Sales (in US$ millions)
 
 
 
 
 
 
 
 
 
 
 
TH - Canada
$
1,505
 
$
1,531
 
$
6,014
 
$
5,877
TH - Rest of World
$
222
 
$
214
 
$
855
 
$
840
TH - Global
$
1,727
 
$
1,745
 
$
6,869
 
$
6,717
 
 
 
 
 
 
 
 
 
 
 
 
BK - US
$
2,529
 
$
2,455
 
$
9,939
 
$
9,620
BK - Rest of World
$
2,999
 
$
2,847
 
$
11,685
 
$
10,455
BK - Global
$
5,528
 
$
5,302
 
$
21,624
 
$
20,075
 
 
 
 
 
 
 
 
 
 
 
 
PLK - US
$
802
 
$
764
 
$
3,221
 
$
3,064
PLK - Rest of World
$
132
 
$
124
 
$
511
 
$
448
PLK - Global
$
934
 
$
888
 
$
3,732
 
$
3,512
 
 
 
 
 
 
 
 
 
 
 
 
Comparable Sales
 
 
 
 
 
 
 
 
 
 
 
TH - Canada
 
2.2
 %
 
 
0.8
 %
 
 
0.9
 %
 
 
0.2
 %
TH - Rest of World
 
 %
 
 
(4.6
)%
 
 
(1.8
)%
 
 
(1.9
)%
TH - Global
 
1.9
 %
 
 
0.1
 %
 
 
0.6
 %
 
 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
BK - US
 
0.8
 %
 
 
5.1
 %
 
 
1.4
 %
 
 
2.5
 %
BK - Rest of World
 
2.4
 %
 
 
4.1
 %
 
 
2.5
 %
 
 
3.7
 %
BK - Global
 
1.7
 %
 
 
4.6
 %
 
 
2.0
 %
 
 
3.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
PLK - US
 
(0.1
)%
 
 
(2.5
)%
 
 
0.9
 %
 
 
(2.2
)%
PLK - Rest of World
 
1.4
 %
 
 
7.5
 %
 
 
7.1
 %
 
 
3.1
 %
PLK - Global
 
0.1
 %
 
 
(1.3
)%
 
 
1.6
 %
 
 
(1.5
)%
 
 
 
 
 
 
 
 
 
 
 
 

13



 
As of December 31,
KPIs by Market
2018
 
2017
Net Restaurant Growth
 
 
 
TH - Canada
1.1
%
 
2.9
%
TH - Rest of World
6.7
%
 
2.8
%
TH - Global
2.1
%
 
2.9
%
 
 
 
 
BK - US
1.4
%
 
1.0
%
BK - Rest of World
9.7
%
 
11.2
%
BK - Global
6.1
%
 
6.5
%
 
 
 
 
PLK - US
6.1
%
 
5.6
%
PLK - Rest of World
11.0
%
 
7.8
%
PLK - Global
7.3
%
 
6.1
%
 
 
 
 
Restaurant Count
 
 
 
TH - Canada
3,955
 
3,913
TH - Rest of World
891
 
835
TH - Global
4,846
 
4,748
 
 
 
 
BK - US
7,330
 
7,226
BK - Rest of World
10,466
 
9,541
BK - Global
17,796
 
16,767
 
 
 
 
PLK - US
2,347
 
2,212
PLK - Rest of World
755
 
680
PLK - Global
3,102
 
2,892

14



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Supplemental Disclosure
(Unaudited)
Selling, General and Administrative Expenses
 
 Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
2018
 
2017
 
2018
 
2017
 
New Standard
 
Previous Standards
 
New Standard
 
Previous Standards
Segment SG&A TH(1)
$
76

 
$
19

 
$
314

 
$
91

Segment SG&A BK(1)
144

 
33

 
577

 
143

Segment SG&A PLK(1)
53

 
13

 
193

 
40

Share-based compensation and non-cash incentive compensation expense
10

 
12

 
55

 
55

Depreciation and amortization(2)
4

 
6

 
20

 
23

PLK Transaction costs

 
12

 
10

 
62

Corporate restructuring and tax advisory fees
6

 
2

 
25

 
2

Office centralization and relocation costs
4

 

 
20

 

Selling, general and administrative expenses
$
297

 
$
97

 
$
1,214

 
$
416


(1)
Segment SG&A includes segment selling expenses and segment general and administrative expenses and excludes share-based compensation and non-cash incentive compensation expense, depreciation and amortization, PLK transaction costs, corporate restructuring and tax advisory fees, and office centralization and relocation costs.
(2)
Segment depreciation and amortization reflects depreciation and amortization included in the respective segment cost of sales and the respective segment franchise and property expenses. Depreciation and amortization included in selling, general and administrative expenses reflects all other depreciation and amortization.

Other Operating Expenses (Income), net
 
 Three Months Ended December 31,
 
Twelve Months Ended December 31,
(in US$ millions)
2018
 
2017
 
2018
 
2017
 
New Standard
 
Previous Standards
 
New Standard
 
Previous Standards
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings(3)
$
2

 
$
14

 
$
19

 
$
29

Litigation settlements and reserves, net(4)
12

 

 
11

 
2

Net losses (gains) on foreign exchange(5)
(14
)
 
12

 
(33
)
 
77

Other, net
(1
)
 
1

 
11

 
1

     Other operating expenses (income), net
$
(1
)
 
$
27

 
$
8

 
$
109


(3)
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods.
(4)
Litigation settlements and reserves, net primarily reflects accruals and proceeds received in connection with litigation matters.
(5)
Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities.



15



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)

Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), and discuss the reasons why we believe this information is useful to management and may be useful to investors. These measures do not have standardized meanings under GAAP and may differ from similarly captioned measures of other companies in our industry.

To supplement our condensed consolidated financial statements presented on a GAAP basis, RBI reports the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share (“Adjusted Diluted EPS”), Combined Total Revenues, Combined Adjusted EBITDA, Organic revenue growth, Organic Adjusted EBITDA growth, and Net Leverage. We believe that these non-GAAP measures are useful to investors in assessing our operating performance, as it provides them with the same tools that management uses to evaluate our performance and is responsive to questions we receive from both investors and analysts. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented.

EBITDA is defined as earnings (net income or loss) before interest expense, net, (gain) loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization and is used by management to measure operating performance of the business. Adjusted EBITDA is defined as EBITDA excluding the non-cash impact of share-based compensation and non-cash incentive compensation expense and (income) loss from equity method investments, net of cash distributions received from equity method investments, as well as other operating expenses (income), net. Other specifically identified costs associated with non-recurring projects are also excluded from Adjusted EBITDA, including PLK transaction costs associated with the acquisition of Popeyes, corporate restructuring and tax advisory fees, and office centralization and relocation costs. Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of operating performance or the performance of an acquired business. Adjusted EBITDA, as defined above, also represents our measure of segment income for each of our three operating segments.

Combined Total Revenues and Combined Adjusted EBITDA include results of PLK prior to the acquisition.

Adjusted Net Income is defined as net income excluding (i) franchise agreement amortization, which is a non-cash expense arising as a result of acquisition accounting that may hinder the comparability of our operating results to our industry peers, (ii) amortization of deferred financing costs and debt issuance discount, a non-cash component of interest expense, and (gains) losses on early extinguishment of debt, which are non-cash charges that vary by the timing, terms and size of debt financing transactions, (iii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iv) other operating expenses (income), net, and (v) other specifically identified costs associated with non-recurring projects. Adjusted Net Income includes preferred share dividends through December 2017.
 
Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the number of diluted shares of RBI during the reporting period. Adjusted Net Income and Adjusted Diluted EPS are used by management to evaluate the operating performance of the business, excluding certain non-cash and other specifically identified items that management believes are not relevant to management’s assessment of operating performance or the performance of an acquired business.

Net Leverage is defined as net debt (total debt less cash and cash equivalents) divided by Adjusted EBITDA. Net Leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

Revenue growth and Adjusted EBITDA growth, on an organic basis, are non-GAAP measures that exclude the impact of FX movements. Management believes that organic growth is an important metric for measuring the operating performance of our business as it helps identify underlying business trends, without distortion from the effects of FX movements. We calculate the impact of FX movements by translating prior year results at current year monthly average exchange rates. In
addition, for organic growth comparative purposes, we are presenting PLK pre- and post-combination results, including
Popeyes’ pre-combination Adjusted EBITDA determined in accordance with RBI’s methodology as reflected in the
reconciliation table. Additionally, for comparability purposes, we are calculating organic growth under Previous Standards for both periods presented.

16



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Organic Growth in Revenue and Adjusted EBITDA
(Unaudited)
Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Impact of FX
 
 
 
 
 
 
Actual
 
Q4 '18 vs. Q4 '17
 
Movements
 
Organic Growth
(in US$ millions)
 
Q4 '18
 
Q4 '17
 
$
 
%
 
$
 
$
 
%
 
 
Previous Standards
 
Previous Standards
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TH
 
$
798

 
$
822

 
$
(24
)
 
(2.8
)%
 
$
(29
)
 
$
5

 
0.7
%
BK
 
$
337

 
$
345

 
$
(8
)
 
(2.6
)%
 
$
(9
)
 
$
1

 
0.2
%
PLK(a)
 
$
74

 
$
67

 
$
7

 
10.2
 %
 
$

 
$
7

 
10.8
%
Combined Total Revenues(a)
 
$
1,209

 
$
1,234

 
$
(25
)
 
(2.0
)%
 
$
(38
)
 
$
13

 
1.1
%
Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TH
 
$
295

 
$
304

 
$
(9
)
 
(2.9
)%
 
$
(11
)
 
$
2

 
0.6
%
BK
 
$
265

 
$
265

 
$

 
(0.1
)%
 
$
(8
)
 
$
8

 
3.3
%
PLK(a)
 
$
42

 
$
37

 
$
5

 
12.5
 %
 
$

 
$
5

 
13.3
%
Combined Adjusted EBITDA(a)
 
$
602

 
$
606

 
$
(4
)
 
(0.8
)%
 
$
(19
)
 
$
15

 
2.6
%


Twelve Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Impact of FX
 
 
 
 
 
 
Actual
 
2018 vs. 2017
 
Movements
 
Organic Growth
(in US$ millions)
 
2018
 
2017
 
$
 
%
 
$
 
$
 
%
 
 
Previous Standards
 
Previous Standards
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TH
 
$
3,077

 
$
3,155

 
$
(78
)
 
(2.5
)%
 
$
(1
)
 
$
(77
)
 
(2.4
)%
BK
 
$
1,251

 
$
1,219

 
$
32

 
2.6
 %
 
$
(7
)
 
$
39

 
3.2
 %
PLK(a)
 
$
279

 
$
266

 
$
13

 
4.8
 %
 
$
(1
)
 
$
14

 
5.2
 %
Combined Total Revenues(a)
 
$
4,607

 
$
4,640

 
$
(33
)
 
(0.7
)%
 
$
(9
)
 
$
(24
)
 
(0.5
)%
Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TH
 
$
1,128

 
$
1,136

 
$
(8
)
 
(0.6
)%
 
$
(1
)
 
$
(7
)
 
(0.6
)%
BK
 
$
950

 
$
903

 
$
47

 
5.2
 %
 
$
(9
)
 
$
56

 
6.3
 %
PLK(a)
 
$
169

 
$
129

 
$
40

 
30.4
 %
 
$
(1
)
 
$
41

 
31.1
 %
Combined Adjusted EBITDA(a)
 
$
2,247

 
$
2,168

 
$
79

 
3.6
 %
 
$
(11
)
 
$
90

 
4.1
 %

 
(a) RBI acquired Popeyes Louisiana Kitchen, Inc. ("Popeyes") on March 27, 2017. Prior to its acquisition by RBI, Popeyes operated on a fiscal period basis consisting of a 16-week first fiscal quarter and 12-week second through fourth fiscal quarters. Subsequent to its acquisition by RBI, Popeyes commenced reporting on a calendar quarter basis consistent with RBI. Q4'17 and FY'17 for PLK represents the period from October 1, 2017 through December 31, 2017 and December 26, 2016 through December 31, 2017, respectively. Combined Total Revenues and Combined Adjusted EBITDA include results of PLK prior to the acquisition. Consequently, PLK results for the prior year period may not be comparable.

Note: Percentage changes may not recalculate due to rounding.


17



RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
(Unaudited)
 
 
Three Months Ended December 31,
(in US$ millions)
 
2018
 
2018
 
2018
 
2017
 
 
New Standard
 
Total Adjustments
 
Previous Standards