Wendy's 2009 Annual Report Download - page 83

Wendy’s/Arby’s Group, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
January 3,
2010
December 28,
2008
December 30,
2007
Year Ended
Cash flows from continuing operating activities:
Net income (loss)............................................ $ 5,062 $(479,741) $ 16,081
Adjustments to reconcile net income (loss) to net cash provided
by continuing operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,251 88,315 66,277
Impairment of other long-lived assets . . . . . . . . . . . . . . . . . . . . . 82,132 19,203 7,045
Write-off and amortization of deferred financing costs . . . . . . 15,820 8,885 2,038
Share-based compensation provision . . . . . . . . . . . . . . . . . . . . . . . 15,294 9,129 9,990
Distributions received from joint venture . . . . . . . . . . . . . . . . . . 14,583 2,864 —
Non-cash rent expense ................................... 12,618 3,103 1,528
Accretion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,400 2,452 179
Provision for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,169 670 631
Operating investment adjustments, net (see below) . . . . . . . . . 2,484 105,357 (33,525)
Deferred income tax benefit, net . . . . . . . . . . . . . . . . . . . . . . . . . . (40,127) (105,276) (10,777)
Equity in earnings in joint venture . . . . . . . . . . . . . . . . . . . . . . . (8,499) (1,974) —
Income from discontinued operations . . . . . . . . . . . . . . . . . . . . . . (1,546) (2,217) (995)
Net receipt (recognition) of vendor incentive . . . . . . . . . . . . . . . (791) (6,459) (990)
Goodwill impairment.................................... — 460,075 —
Gain on sale of consolidated business. . . . . . . . . . . . . . . . . . . . . . — — (40,193)
Other, net.............................................. (4,317) (3,886) 47
Changes in operating assets and liabilities:
Accounts and notes receivable . . . . . . . . . . . . . . . . . . . . . . . . (6,074) (4,187) 15,022
Inventories ......................................... 1,879 (140) (987)
Prepaid expenses and other current assets. . . . . . . . . . . . . . 3,987 8,808 (3,123)
Accounts payable, accrued expenses, and other current
liabilities ........................................ (2,527) (31,376) (7,444)
Net cash provided by continuing operating
activities .................................... 298,798 73,605 20,804
Cash flows from continuing investing activities:
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (101,914) (106,989) (72,990)
Investment activities, net (see below) . . . . . . . . . . . . . . . . . . . . . . . . . . 38,141 51,066 51,531
Proceeds from dispositions.................................... 10,882 1,322 2,734
Cost of acquisitions, less cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . (2,357) (9,622) (4,094)
Increase in cash from merger with Wendy’s International, Inc.
(“Wendy’s”)............................................... — 199,785 —
Cost of merger with Wendy’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (608) (18,403) (2,017)
Decrease in cash related to the sale of a consolidated business . . . . — — (15,104)
Other, net................................................... 237 (228) 16
Net cash (used in) provided by continuing
investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,619) 116,931 (39,924)
Cash flows from continuing financing activities:
Proceeds from long-term debt ................................. 607,507 37,753 23,060
Repayments of notes payable and long-term debt . . . . . . . . . . . . . . . (210,371) (177,883) (24,505)
Repurchases of common stock................................. (72,927) — —
Deferred financing costs ...................................... (38,399) — —
Dividends paid .............................................. (27,976) (30,538) (32,117)
Distributions to non-controlling interests. . . . . . . . . . . . . . . . . . . . . . . (156) (1,144) (13,494)
Other, net................................................... 1,715 (1,113) (3,147)
Net cash provided by (used in) continuing
financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 259,393 (172,925) (50,203)
Net cash provided by (used in) continuing operations before effect of
exchange rate changes on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502,572 17,611 (69,323)
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,725 (4,123) —
Net cash provided by (used in) continuing operations . . . . . . . . . . . . . . . . 505,297 13,488 (69,323)
Net cash used in operating activities of discontinued operations. . . . . . . (3,668) (1,514) (713)
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . 501,629 11,974 (70,036)
Cash and cash equivalents at beginning of year. . . . . . . . . . . . . . . . . . . . . . 90,090 78,116 148,152
Cash and cash equivalents at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 591,719 $ 90,090 $ 78,116
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