Wendy's 2011 Annual Report Download - page 73

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THE WENDY’S COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Year Ended
January 1,
2012
January 2,
2011
January 3,
2010
Cash flows from operating activities:
Net income (loss) ............................................. $ 9,875 $ (4,325) $ 5,062
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization ............................... 145,302 182,172 190,251
Share-based compensation provision........................... 17,688 13,704 15,294
Distributions received from joint venture ....................... 14,942 13,980 14,583
Impairment of long-lived assets ............................... 14,441 69,477 82,132
Loss on disposal of Arby’s ................................... 8,799 — —
Accretion of long-term debt ................................. 8,120 15,016 10,400
Non-cash rent expense ..................................... 7,554 9,334 12,618
Net receipt (recognition) of deferred vendor incentives ............. 7,070 (587) (791)
Write-off and amortization of deferred financing costs ............. 6,216 11,779 15,820
Provision for doubtful accounts .............................. 2,434 9,694 8,169
Deferred income tax provision (benefit), net ..................... 1,624 (29,779) (40,127)
Operating investment adjustments, net (see below) ............... (145) (5,201) 2,484
Equity in earnings in joint ventures, net ........................ (9,465) (9,459) (8,499)
Other, net ............................................... 565 (1,430) (4,317)
Changes in operating assets and liabilities:
Accounts and notes receivable ............................ (2,690) (4,730) (6,074)
Inventories .......................................... (517) 394 1,879
Prepaid expenses and other current assets ................... (7,580) 1,514 3,987
Accounts payable ..................................... 11,364 (15,795) (53,474)
Accrued expenses and other current liabilities ................ 11,120 (29,508) 45,733
Net cash provided by operating activities ............... 246,717 226,250 295,130
Cash flows from investing activities:
Capital expenditures ....................................... (146,763) (147,969) (101,914)
Restaurant acquisitions ..................................... (11,210) (3,123) (2,357)
Franchise incentive loans ................................... (4,003) — —
Investment activities, net (see below) .......................... (841) 32,158 38,141
Proceeds from sale of Arby’s, net ............................. 97,925 — —
Proceeds from other dispositions ............................. 6,960 5,660 10,882
Other, net ............................................... (265) 352 (371)
Net cash used in investing activities ................... (58,197) (112,922) (55,619)
Cash flows from financing activities:
Proceeds from long-term debt ................................ — 497,661 607,507
Repayments of long-term debt ............................... (38,702) (474,791) (210,371)
Repurchases of common stock ............................... (157,556) (173,537) (72,927)
Dividends paid ........................................... (32,366) (27,621) (27,976)
Proceeds from stock option exercises........................... 6,359 1,444 1,715
Deferred financing costs .................................... (57) (16,353) (38,399)
Other, net ............................................... (2,262) (953) (156)
Net cash (used in) provided by financing activities ........ (224,584) (194,150) 259,393
Net cash (used in) provided by operations before effect of exchange rate changes
on cash ....................................................... (36,064) (80,822) 498,904
Effect of exchange rate changes on cash ................................ (1,213) 1,611 2,725
Net (decrease) increase in cash and cash equivalents ....................... (37,277) (79,211) 501,629
Cash and cash equivalents at beginning of year ........................... 512,508 591,719 90,090
Cash and cash equivalents at end of year ................................ $475,231 $ 512,508 $ 591,719
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