Wendy's 2013 Annual Report Download - page 69

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THE WENDY’S COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Year Ended
December 29,
2013
December 30,
2012
January 1,
2012
Cash flows from operating activities:
Net income ............................................. $ 44,632 $ 9,467 $ 9,875
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization .......................... 200,219 154,174 145,302
Loss on early extinguishment of debt ...................... 28,563 75,076 —
Distributions received from TimWen joint venture ........... 14,116 15,274 14,942
Share-based compensation ............................. 19,613 11,473 17,688
Impairment (see below) ................................ 45,782 21,097 14,441
Net receipt (recognition) of deferred vendor incentives ........ 6,318 (920) 7,070
Accretion of long-term debt ............................ 5,942 7,973 8,120
Amortization of deferred financing costs ................... 2,487 4,241 6,216
Non-cash rent expense ................................ 8,152 7,210 7,554
Equity in earnings in joint ventures, net ................... (9,722) (8,724) (9,465)
Deferred income tax .................................. 12,853 (31,598) 1,624
Loss (gain) on sale of investments, net ..................... 799 (27,769) —
(Gain) loss on dispositions, net (see below) ................. (49,714) 442 8,799
Other, net .......................................... (8,908) 3,093 2,854
Changes in operating assets and liabilities:
Accounts and notes receivable ....................... 174 3,999 (2,690)
Inventories ..................................... 1,477 (561) (517)
Prepaid expenses and other current assets .............. (4,626) (1,360) (7,580)
Accounts payable ................................. (380) (9,266) 11,364
Accrued expenses and other current liabilities ........... 12,070 (42,906) 11,120
Net cash provided by operating activities........... 329,847 190,415 246,717
Cash flows from investing activities:
Capital expenditures .................................. (224,245) (197,590) (146,763)
Dispositions ........................................ 149,112 21,023 6,960
Acquisitions ........................................ (4,612) (40,608) (11,210)
Franchise loans, net ................................... (43) 3,092 (4,003)
Sale of Arby’s, net .................................... — — 97,925
Change in restricted cash ............................... (18,593) — —
Investment activities, net (see below) ...................... 21,691 27,949 (841)
Other, net .......................................... — (3,251) (265)
Net cash used in investing activities ............... (76,690) (189,385) (58,197)
Cash flows from financing activities:
Proceeds from long-term debt ........................... 575,000 1,113,750 —
Repayments of long-term debt .......................... (590,293) (1,044,310) (38,702)
Deferred financing costs ............................... (7,684) (15,566) (57)
Premium payments on redemptions/purchases of notes ........ (8,439) (43,151) —
Proceeds from termination of interest rate swaps ............. 5,708 — —
Repurchases of common stock .......................... (69,320) — (157,556)
Dividends .......................................... (70,681) (39,043) (32,366)
Distribution to noncontrolling interests ................... — (3,667) —
Proceeds from stock option exercises ...................... 42,370 7,806 6,359
Other, net .......................................... 438 52 (2,262)
Net cash used in financing activities .............. (122,901) (24,129) (224,584)
Net cash provided by (used in) operations before effect of exchange rate
changes on cash ............................................ 130,256 (23,099) (36,064)
Effect of exchange rate changes on cash ............................ (3,465) 1,229 (1,213)
Net increase (decrease) in cash and cash equivalents .................. 126,791 (21,870) (37,277)
Cash and cash equivalents at beginning of period .................... 453,361 475,231 512,508
Cash and cash equivalents at end of period ......................... $580,152 $ 453,361 $ 475,231
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