Wendy's 2009 Annual Report Download - page 60

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The most recent credit ratings, assigned in June 2009, for Wendy’s/Arby’s Group, Inc., Wendy’s/Arby’s
Restaurants and the Wendy’s Notes were as follows:
S&P Moody’s
Corporate family/corporate credit
Entity. . . . . . . . . . . . . . . . . . . . . . . . . . . Wendy’s/Arby’s Group, Inc. Wendy’s/Arby’s Restaurants
Rating.......................... B+ B2
Outlook......................... Negative Stable
Wendy’s/Arby’s Restaurants Senior
Notes........................... B+ B2
Wendy’s/Arby’s Restaurants Term
Loan............................ BB Ba2
Wendy’s Notes..................... B- Caa1
There are many factors that could lead to future upgrades or downgrades of our credit ratings. Credit
rating upgrades or downgrades could lead to, among other things, changes in borrowing costs and changes in
our ability to access capital markets on acceptable terms.
A rating is not a recommendation to buy, sell or hold any security, and may be subject to revision or
withdrawal at any time by the rating agency. Each rating should be evaluated independently of any other
rating.
Contractual Obligations
The following table summarizes the expected payments under our outstanding contractual obligations at
January 3, 2010:
2010 2011-2012 2013-2014 After 2014 Total
Fiscal Years
(In Millions)
Long-term debt (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $115.9 $ 627.0 $378.8 $ 857.5 $1,979.2
Sale-leaseback obligations (b) . . . . . . . . . . . . . . . . . . . . . 14.7 30.1 29.5 152.2 226.5
Capitalized lease obligations (b) . . . . . . . . . . . . . . . . . . 17.7 27.1 24.2 110.4 179.4
Operating leases (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.7 261.5 225.8 1,125.2 1,759.2
Purchase obligations (d) . . . . . . . . . . . . . . . . . . . . . . . . . 51.5 62.0 60.1 106.6 280.2
Other (e)....................................... 25.9 1.4 0.1 — 27.4
Total (f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $372.4 $1,009.1 $718.5 $2,351.9 $4,451.9
(a) Excludes sale-leaseback and capitalized lease obligations, which are shown separately in the table. The table
above includes interest of approximately $611.1 million. We have estimated the interest on our variable-
rate debt based on current base rates, the current interest rate margin and the amortization schedule in our
Credit Agreement. The table above also reflects the effect of interest rate swaps entered into in 2009 which
lowered our interest rate on certain of our fixed-rate debt. These amounts exclude the effects of the original
issue discount on our Senior Notes and the fair value adjustments related to certain debt assumed in the
Wendy’s Merger.
(b) Excludes related sublease rental receipts of $9.4 million on sale-leaseback obligations and $3.5 million on
capitalized lease obligations. The table above includes interest of approximately $101.3 million for sale-
leaseback obligations and $89.5 million for capitalized lease obligations.
(c) Represents the present value of minimum lease cash payments. Excludes related sublease rental receipts of
$76.1 million.
(d) Includes (1) $249.7 million remaining for beverage purchase requirements for Wendy’s and Arby’s
restaurants, (2) $2.0 million for advertising commitments, (3) $18.6 million for capital expenditures and
(4) $9.9 million of other purchase obligations.
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