Wendy's 2010 Annual Report Download - page 153

WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES
WENDY’S/ARBY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the year ended January 3, 2010
Parent
Guarantor
Subsidiaries
Non-
guarantor
Subsidiaries Eliminations Total
Cash flows from continuing operating activities:
Net income (loss) .............................. $ 9,649 $ (52,890) $16,213 $ 36,677 $ 9,649
Adjustments to reconcile net income (loss) to net cash
provided by continuing operating activities:
Equity in loss (income) from continuing operations
of subsidiaries ........................... 52,890 (16,213) — (36,677) —
Depreciation and amortization ................ 4,270 174,001 10,235 — 188,506
Impairment of other long-lived assets ........... — 79,956 — — 79,956
Tax sharing (receivable from) payable to Wendy’s/
Arby’s, net ............................. (9,648) 50,061 — — 40,413
Tax sharing payments to Wendy’s/Arby’s ........ — (10,417) — — (10,417)
Write-off and amortization of deferred financing
costs .................................. 1,632 14,164 — — 15,796
Distributions received from joint venture ........ — — 14,583 — 14,583
Share-based compensation provision ........... 3,550 10,020 — — 13,570
Non-cash rent expense ...................... — 12,618 — — 12,618
Accretion of long-term debt .................. 718 9,682 — — 10,400
Provision for doubtful accounts ............... — 8,279 (110) — 8,169
Deferred income tax (benefit) provision, net ...... (94,686) 28,906 (2,761) — (68,541)
Other operating transactions with affiliates ....... (33,506) 48,279 (659) — 14,114
Equity in earnings in joint venture ............. — — (8,499) — (8,499)
Net recognition of vendor incentive ............ — (791) — — (791)
Other, net ............................... (559) 11,429 (5,317) — 5,553
Changes in operating assets and liabilities:
Accounts and notes receivable ............. (29) (7,770) 120 — (7,679)
Inventories ........................... — 1,859 20 — 1,879
Prepaid expenses and other current assets .... (4,918) 5,307 732 — 1,121
Accounts payable, accrued expenses and other
current liabilities ..................... 43,095 (42,353) 539 — 1,281
Net cash (used in) provided by
continuing operating activities ...... (27,542) 324,127 25,096 — 321,681
Cash flows from continuing investing activities:
Capital expenditures ........................ (17,113) (80,458) (4,343) — (101,914)
Proceeds from dispositions ................... — 10,472 410 — 10,882
Cost of acquisitions, less cash acquired .......... — (2,357) — — (2,357)
Other, net ............................... — 192 — — 192
Net cash used in continuing investing
activities ....................... (17,113) (72,151) (3,933) — (93,197)
Cash flows from continuing financing activities:
Proceeds from long-term debt ................ 551,061 56,160 286 — 607,507
Repayments of long-term debt ................ (52) (209,198) (232) — (209,482)
Deferred financing costs ..................... (21,247) (17,152) — — (38,399)
Capital contributions from Parent ............. (132,500) 132,500 — — —
Dividends paid to Wendy’s/Arby’s ............. (115,000) — — — (115,000)
Net cash provided by (used in)
continuing financing activities ...... 282,262 (37,690) 54 — 244,626
Net cash provided by continuing operations .............. 237,607 214,286 21,217 — 473,110
Effect of exchange rate changes on cash ................. — 2,725 — 2,725
Net cash provided by continuing operations .............. 237,607 214,286 23,942 475,835
Net cash used in operating activities of discontinued
operations ...................................... — (51) — — (51)
Net increase in cash and cash equivalents ................ 237,607 214,235 23,942 — 475,784
Cash and cash equivalents at beginning of year ............ — 54,527 8,553 — 63,080
Cash and cash equivalents at end of year ................. $237,607 $ 268,762 $32,495 $ — $ 538,864
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