Wendy's 2010 Annual Report Download - page 66

Contractual Obligations
The following table summarizes the expected payments under our outstanding contractual obligations at
January 2, 2011:
Fiscal Years
2011 2012-2013 2014-2015 After 2015 Total
Long-term debt (a) ................................ $114.9 $228.5 $438.7 $1,316.1 $2,098.2
Sale-leaseback obligations (b) ......................... 14.9 30.2 30.5 137.5 213.1
Capitalized lease obligations (b) ....................... 15.9 25.1 26.8 108.7 176.5
Operating leases (c) ................................ 150.5 272.1 233.3 1,032.9 1,688.8
Purchase obligations (d) ............................ 90.4 70.1 56.8 77.7 295.0
Other (e) ........................................ 4.1 0.7 — — 4.8
Total Wendy’s/Arby’s Restaurants ................. 390.7 626.7 786.1 2,672.9 4,476.4
Corporate long-term debt (a) ......................... 1.4 11.3 — — 12.7
Corporate operating leases (c) ........................ 1.6 0.7 — — 2.3
Other Corporate .................................. 0.2 0.1 — — 0.3
Total Wendy’s/Arby’s (f) ........................ $393.9 $638.8 $786.1 $2,672.9 $4,491.7
(a) Excludes sale-leaseback and capitalized lease obligations, which are shown separately in the table. The table above
includes interest of approximately $709.4 million for Wendy’s/Arby’s. 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 our 6.20% Wendy’s senior notes. 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.
Should our strategic alternatives for Arby’s result in a sale of the brand, we may be required to utilize a portion of
the sale proceeds to reduce the Term Loan.
(b) Excludes related sublease rental receipts of $8.1 million on sale-leaseback obligations and $2.7 million on
capitalized lease obligations. The table above includes interest of approximately $91.2 million for sale-leaseback
obligations and $89.8 million for capitalized lease obligations.
(c) Represents the minimum lease cash payments. Excludes related sublease rental receipts of $85.5 million for
Wendy’s/Arby’s Restaurants and additional sublease rental receipts for Wendy’s/Arby’s of $1.9 million.
(d) Includes (1) $215.0 million remaining for beverage purchase requirements for Wendy’s and Arby’s restaurants,
(2) $2.8 million for advertising commitments, (3) $33.5 million for capital expenditures and (4) $43.7 million
of other purchase obligations.
(e) Represents (1) $0.3 million for funding of QSCC, (2) $3.0 million for funding related to SSG, (3) $1.4 million
for potential additional capital investment requirements, and (4) $0.1 million and $0.3 million in severance for
Wendy’s/Arby’s Restaurants and Wendy’s/Arby’s, respectively.
(f) Excludes obligations for uncertain income tax positions of $26.3 million and $36.4 million for Wendy’s/Arby’s
Restaurants and Wendy’s/Arby’s, respectively. We are unable to predict when, and if, cash payments on any of
this accrual will be required.
Capital Expenditures
In 2010, cash capital expenditures amounted to $148.0 million and non-cash capital expenditures, consisting of
capitalized leases and certain sale-leaseback obligations, amounted to $5.7 million. In 2011, we expect that cash
capital expenditures will amount to approximately $184 million, principally relating to (1) remodeling approximately
100 Wendy’s company-owned restaurants, (2) ongoing maintenance capital expenditures for our company-owned
restaurants, (3) the opening of an estimated 21 new Wendy’s company-owned restaurants, and (4) various capital
projects. We have $18.2 million of outstanding commitments for capital expenditures as of January 2, 2011, of which
we expect $14.5 million to be paid in 2011.
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