Variable Interest Entities

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Note 17. Variable Interest Entities

VIEs for Which We Are the Primary Beneficiary

At March 31, 2016, December 31, 2015 and March 31, 2015, we consolidated 119, 141 and 258 Restaurant VIEs, respectively, where TH is the restaurants’ primary beneficiary and Advertising VIEs. During the three months ended March 31, 2016, sales and operating costs and expenses associated with Restaurant VIEs were $32.5 million and $31.4 million, respectively, prior to consolidation adjustments. During the three months ended March 31, 2015, sales and operating costs and expenses associated with Restaurant VIEs were $61.6 million and $60.4 million, respectively, prior to consolidation adjustments.

The liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our general assets.

VIEs for Which We Are Not the Primary Beneficiary

We have investments in certain TH real estate ventures and certain BK master franchisees, which were determined to be VIEs of which we are not the primary beneficiary. We do not consolidate these entities as control is considered to be shared by both TH and the other joint owners in the case of the TH real estate ventures, or control rests with other parties in the case of BK master franchisee VIEs.