Share-based Compensation

6 Months Ended

Jun. 30, 2011

Share-based Compensation [Abstract]

Share-based Compensation

Note 3. Share-based Compensation

Successor

     On February 2, 2011, the Board of Directors of Parent approved and adopted the Burger King Worldwide Holdings, Inc. 2011 Omnibus Incentive Plan (the “Omnibus Plan”). The Omnibus Plan generally provides for the grant of awards to employees, directors, consultants and other persons who provide services to Parent and its subsidiaries, with respect to an aggregate of 5,000 shares (5 million millishares or .001 of one full share) of common stock. The Omnibus Plan permits the grant of several types of awards with respect to the common stock, including stock options, restricted stock units, restricted stock and performance shares.

     During the six months ended June 30, 2011, Parent granted options to purchase up to 4,050,059 millishares to key employees and members of the Board of Directors of Parent. The exercise price per millishare is $15.82, and the options vest 100% on October 19, 2015, provided the employee is continuously employed by BKC or one of its subsidiaries or the director remains on the board of Parent, as applicable. The grant date fair value of the options granted was $1.96 per millishare and was estimated using the Black-Scholes option pricing model based on the following weighted-average input assumptions: exercise price of $15.82 per share; risk-free interest rate of 1.93%; expected term of 5.0 years; expected volatility of 35.0%; and expected dividend yield of zero. The compensation cost related to these granted options will be recognized ratably over the requisite service period.

     The Company recorded $0.4 million and $0.6 million of share-based compensation expense in selling, general and administrative expenses for the three and six months ended June 30, 2011, respectively. No stock options were exercised during the three and six months ended June 30, 2011.

Predecessor

     The Predecessor recorded $4.0 million and $8.3 million of share-based compensation expense for the three and six months ended June 30, 2010, respectively, in selling, general and administrative expenses. Excess tax benefits from stock options exercised of $2.6 million in the six months ended June 30, 2010 were reported as financing cash flows in the accompanying condensed consolidated statements of cash flows.