Wendy's 2010 Annual Report Download - page 62

items more typically included in accrued expenses rather than accounts payable, (2) a decrease in amounts payable for
food costs in 2009 as compared to 2008 primarily due to lower commodity costs during the end of 2009 versus the
end of 2008, (3) an accumulation of certain payables associated with Arby’s lease agreements which were accrued at
the end of 2008 and paid in 2009, (4) an increase in amounts payable at the end of 2008 that were paid in 2009
related to the timing of receipt of vendor invoices, and (5) an increase in amounts paid to Wendy’s national
advertising cooperative in 2009, combined with a decrease in amounts payable to the Wendy’s national advertising
cooperative at the end of 2009 versus 2008. In addition, the net increase in comparative operating a cash flow was
partially offset by an increase in income tax payments in 2009 as compared to 2008. Wendy’s/Arby’s Restaurants’ net
increase in comparative operating cash flow was also impacted by (1) an increase in amounts accrued in 2009 versus
2008 for Federal and state income taxes under a tax sharing agreement with Wendy’s/Arby’s, combined with a
decrease in tax payments made in 2008 versus 2009 under this agreement, and (2) a decrease in certain non-recurring
intercompany transactions during 2008 which eliminate in the consolidation of Wendy’s/Arby’s.
Additionally, for the year ended January 3, 2010, the Companies had the following significant sources and uses
of cash other than from operating activities:
• Proceeds of $607.5 million primarily from the issuance of the Senior Notes discussed below under “Long-
term Debt”;
• Net repayments of other long-term debt of $209.5 million, including a prepayment of $132.5 million on our
senior secured term loan;
• Cash capital expenditures totaling $101.9 million, which included $19.1 million for the remodeling of
restaurants, $18.1 million for the construction of new restaurants, and $64.7 million for various capital
projects;
• Deferred financing costs of $38.4 million;
(Wendy’s/Arby’s)
• Net investment proceeds of $38.1 million;
• Repurchases of Common Stock of $72.9 million, including commissions of $0.3 million and excluding $5.8
million of repurchases that were not settled until after year end;
• Dividend payments of $28.0 million; and
(Wendy’s/Arby’s Restaurants)
• Intercompany dividend payments of $115.0 million to Wendy’s/Arby’s.
The net cash provided by continuing operations before the effect of exchange rate changes on cash was
approximately $502.6 million and $473.1 million for Wendy’s/Arby’s and Wendy’s/Arby’s Restaurants, respectively.
Sources and Uses of Cash for 2011
The Companies’ anticipated consolidated cash requirements for continuing operations for 2011, exclusive of
operating cash flow requirements, consist principally of:
• Cash capital expenditures of approximately $184 million as discussed below in “Capital Expenditures”;
• Scheduled debt principal repayments aggregating $18 million;
• Any potential business acquisitions or dispositions; and
• The costs of any potential business acquisitions or financing activities.
(Wendy’s/Arby’s)
• Quarterly cash dividends aggregating up to approximately $33.5 million as discussed below in “Dividends”;
• Potential repurchases of Common Stock of up to $250.0 million under the currently authorized stock
repurchase program; and
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