Wendy's 2013 Annual Report Download - page 50

2012 Compared with 2011
Cash provided by operating activities decreased $56.3 million during the year ended December 30, 2012 as
compared to the year ended January 1, 2012, primarily due to the following:
• a $54.0 million unfavorable impact in accrued expenses and other current liabilities for the comparable
periods. This unfavorable impact was primarily due to (1) an increase in payments and a decrease in charges
for Arby’s transaction related costs and facilities relocation and transition costs related to the relocation of the
Company’s Atlanta restaurant support center to Ohio, (2) a decrease in interest expense and the
corresponding accrual primarily due to the purchase and redemption of the Senior Notes and (3) a decrease
in accrued income taxes; and
• a $20.6 million unfavorable impact in accounts payable for the comparable periods. This unfavorable impact
was primarily due to (1) higher payments in 2012 in comparison to 2011 for capital expenditures accrued at
the end of 2011 and 2010, respectively and (2) changes in accounts payable due to the timing of payments
between the comparable periods.
These decreases were partially offset by increases in cash related to accounts and notes receivable of
$6.7 million, prepaid expenses and other current assets of $6.2 million and a cash dividend received from our
investment in Arby’s of $4.6 million in 2012.
Cash used in investing activities increased $131.2 million during the year ended December 30, 2012 as
compared to the year ended January 1, 2012, primarily due to the following:
• a decrease in proceeds from investing activities primarily due to proceeds from the sale of Arby’s of
$97.9 million in 2011 in comparison to proceeds from the sale of our cost investment in Jurlique of
$27.3 million in 2012;
• an increase of $50.8 million in capital expenditures primarily for our Image Activation program; and
• an increase in cash used for the acquisition of franchised restaurants of $29.4 million, partially offset by an
increase in proceeds from dispositions.
Cash used in financing activities decreased $200.5 million during the year ended December 30, 2012 as
compared to the year ended January 1, 2012, primarily due to the following:
• repurchases of common stock of $157.6 million during 2011 under a stock repurchase program which
expired at the end of 2011;
• a net decrease in cash used for long-term debt activities of $49.5 million primarily resulting from the
execution of the Credit Agreement and the related purchase/redemption of the Senior Notes; partially offset
by
• an increase in dividend payments of $6.7 million.
The net cash used in our business before the effect of exchange rate changes on cash was approximately
$23.1 million.
Sources and Uses of Cash for 2014
Our anticipated consolidated sources of cash and cash requirements for 2014 exclusive of operating cash flow
requirements consist principally of:
• Capital expenditures of approximately $285.0 million as discussed below in “Capital Expenditures;”
• Stock repurchases of approximately $275.0 million in a modified Dutch auction tender offer to repurchase
shares of our common stock which was completed on February 19, 2014;
• Estimated proceeds from restaurant dispositions under our system optimization initiative of approximately
$95.0 million, and other potential restaurant acquisitions and dispositions; and
• Quarterly cash dividends aggregating up to approximately $73.2 million as discussed below in “Dividends.”
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