Wendy's 2010 Annual Report Download - page 61

• Payment of $215.0 million, including a premium of $15.0 million, to redeem the Wendy’s 6.25% senior
notes;
• Cash capital expenditures totaling $148.0 million, which included $50.1 million for the remodeling of
restaurants, $10.9 million for the construction of new restaurants, and $87.0 million for various capital
projects;
• Deferred financing costs of $16.4 million;
(Wendy’s/Arby’s)
• Repurchases of Common Stock of $167.7 million, including commissions of $0.7 million and excluding
$5.8 million of 2009 purchases that were not settled until 2010;
• Proceeds of $30.8 million, excluding interest, from the repayment and cancellation of the DFR Notes;
• Dividend payments of $27.6 million; and
(Wendy’s/Arby’s Restaurants)
• Intercompany dividend payments of $443.7 million to Wendy’s/Arby’s.
The net cash used in continuing operations before the effect of exchange rate changes on cash was
approximately $80.8 million and $341.8 million for Wendy’s/Arby’s and Wendy’s/Arby’s Restaurants, respectively.
2009 Compared with 2008
Net cash provided by operating activities for Wendy’s/Arby’s was $298.8 million for the year ended January 3,
2010 as compared to $73.6 million for the year ended December 28, 2008. Net cash provided by operating activities
for Wendy’s/Arby’s Restaurants was $321.7 million for the year ended January 3, 2010 as compared to $101.0
million for the year ended December 28, 2008. The significant components, which accounted for the overall increase
in net cash provided by operating activities of $225.2 million and $220.7 million for Wendy’s/Arby’s and Wendy’s/
Arby’s Restaurants, respectively, for the year ended January 3, 2010 as compared to the year ended December 28,
2008 were as follows:
Change
Wendy’s/Arby’s
Restaurants Corporate Wendy’s/Arby’s
Accrued expenses and other current liabilities:
Incentive compensation ......................... $ 31.2 $ 7.5 $ 38.7
Interest ..................................... 32.5 (0.6) 31.9
QSCC Co-op Agreement ....................... 15.4 — 15.4
Key executive agreements ....................... 13.4 — 13.4
Intercompany transactions ...................... 25.1 (25.1) —
Income taxes ................................. (11.0) 5.2 (5.8)
Accounts payable ................................. (67.1) 7.5 (59.6)
Tax sharing payment ............................... 47.0 (47.0) —
Net income (loss) and non-cash adjustments, net ......... 132.4 57.3 189.7
Other, net ....................................... 1.8 (0.3) 1.5
$220.7 $ 4.5 $225.2
The net increase in the comparative operating cash flow principally resulted from (1) an increase in amounts
accrued under incentive compensation plans in 2009 due to higher operating performance as compared to plan in
2009 versus 2008, partially offset by amounts paid under the plans in 2009 versus 2008 for fiscal 2008 and 2007,
respectively, (2) an increase in interest expense accruals on the Senior Notes issued in June 2009 and the debt
assumed as a result of the Wendy’s Merger in September 2008, partially offset by interest payments in 2009 primarily
for the debt assumed in the Wendy’s Merger, (3) amounts accrued during the 2009 fourth quarter related to funding
start-up costs and other operating expenses for the QSCC without similar accruals in 2008, and (4) amounts paid in
2008 under key executive agreements assumed in the Wendy’s Merger. These changes were partially offset by the net
impact of the following, which affected accounts payable: (1) a decrease in the amounts payable for non-recurring
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