Wendy's 2011 Annual Report Download - page 79

WENDY’S RESTAURANTS, LLC 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) ........................................... $ 12,933 $ (2,638) $ 9,649
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization ............................. 144,675 180,310 188,506
Share-based compensation provision ........................ 16,667 12,790 13,570
Distributions received from joint venture ..................... 14,942 13,980 14,583
Impairment of long-lived assets ............................ 14,441 69,477 79,956
Deferred income tax provision (benefit), net .................. 11,718 (25,752) (68,541)
Loss on disposal of Arby’s ................................ 8,799 — —
Accretion of long-term debt ............................... 8,120 15,016 10,400
Non-cash rent expense ................................... 7,551 9,334 12,618
Net receipt (recognition) of deferred vendor incentives .......... 7,070 (587) (791)
Write-off and amortization of deferred financing costs ........... 6,204 11,763 15,796
Tax sharing payable to parent, net .......................... 2,437 1,052 40,413
Provision for doubtful accounts ............................ 2,434 9,694 8,169
Other operating transactions with parent ..................... (6,031) (8,032) 14,114
Equity in earnings in joint ventures, net ...................... (9,465) (9,459) (8,499)
Tax sharing payment to parent ............................ (13,078) — (10,417)
Other, net ............................................ 334 (504) 5,553
Changes in operating assets and liabilities: ....................
Accounts and notes receivable ......................... (2,900) (4,193) (7,679)
Inventories ........................................ (517) 394 1,879
Prepaid expenses and other current assets ................. (7,861) 755 1,121
Accounts payable ................................... 11,086 (14,184) (52,560)
Accrued expenses and other current liabilities ............. 15,546 (27,962) 53,790
Net cash provided by operating activities ............. 245,105 231,254 321,630
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 in joint venture ............................... (1,183) — —
Proceeds from sale of Arby’s, net ........................... 97,925 — —
Proceeds from other dispositions ........................... 6,960 5,660 10,882
Other, net ............................................ (265) 1,263 192
Net cash used in investing activities ................. (58,539) (144,169) (93,197)
Cash flows from financing activities:
Proceeds from long-term debt ............................. — 497,661 607,507
Repayments of long-term debt ............................. (37,334) (466,461) (209,482)
Dividends paid to parent ................................. — (443,700) (115,000)
Deferred financing costs .................................. (57) (16,353) (38,399)
Other, net ............................................ — (21) —
Net cash (used in) provided by financing activities ...... (37,391) (428,874) 244,626
Net cash provided by (used in) operations before effect of exchange rate
changes on cash .............................................. 149,175 (341,789) 473,059
Effect of exchange rate changes on cash .............................. (1,213) 1,611 2,725
Net increase (decrease) in cash and cash equivalents ..................... 147,962 (340,178) 475,784
Cash and cash equivalents at beginning of year ........................ 198,686 538,864 63,080
Cash and cash equivalents at end of year ............................. $346,648 $ 198,686 $ 538,864
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