Wendy's 2010 Annual Report Download - page 67

Dividends
(Wendy’s/Arby’s)
On March 15, 2010, June 15, 2010, and September 15, 2010, Wendy’s/Arby’s paid quarterly cash dividends of
$0.015 per share on its Common Stock, aggregating $19.3 million. On December 15, 2010, Wendy’s/Arby’s paid a
quarterly cash dividend of $0.02 per share on its Common Stock, aggregating to $8.3 million. During the 2011 first
quarter, Wendy’s/Arby’s declared dividends of $0.02 per share to be paid on March 15, 2011 to shareholders of
record as of March 1, 2011. If Wendy’s/Arby’s pays regular quarterly cash dividends for the remainder of 2011 at the
same rate as declared in our 2011 first quarter, Wendy’s/Arby’s’s total cash requirement for dividends for all of 2011
would be approximately $33.5 million based on the number of shares of its Common Stock outstanding at
February 25, 2011. Wendy’s/Arby’s currently intends to continue to declare and pay quarterly cash dividends;
however, there can be no assurance that any quarterly dividends will be declared or paid in the future or of the
amount or timing of such dividends, if any.
(Wendy’s/Arby’s Restaurants)
During 2010, $443.7 million of intercompany dividends were paid to Wendy’s/Arby’s. During 2009,
$115.0 million of dividends were paid to Wendy’s/Arby’s. No dividends were paid to Wendy’s/Arby’s during
2008. During the fourth quarter of 2008, Wendy’s advanced an aggregate of $155.0 million to Wendy’s/Arby’s,
which were used to fund $150.2 million of capital contributions to Arby’s. Arby’s used a portion of these capital
contributions to prepay the term loan under the prior Arby’s credit agreement in an aggregate principal amount of
$143.2 million. These advances do not bear interest and Wendy’s/Arby’s does not currently intend to repay such
advances.
As of January 2, 2011, under the terms of the Credit Agreement, there was $25.6 million available for the
payment of dividends directly to Wendy’s/Arby’s.
Stock Repurchases
(Wendy’s/Arby’s)
As of January 3, 2010, our Board of Directors had authorized the repurchase of up to a total of $125.0 million
of our Common Stock through January 2, 2011, when and if market conditions warrant and to the extent legally
permissible. On January 27, 2010, March 22, 2010 and May 27, 2010, our Board of Directors authorized the
repurchase of up to an additional $75.0 million, $50.0 million and $75.0 million, respectively, of our Common Stock
through January 2, 2011, when and if market conditions warrant and to the extent legally permissible. As of
January 2, 2011, Wendy’s/Arby’s had repurchased 52.3 million shares with an aggregate purchase price of
$245.5 million, excluding commissions of $1.0 million.
On November 11, 2010, our Board of Directors authorized the extension of the current stock repurchase
program through January 1, 2012 and authorized the repurchase of up to an additional $170.0 million of our
Common Stock, bringing the total amount currently authorized to approximately $250.0 million. The stock
repurchase program will allow Wendy’s/Arby’s to make repurchases as market conditions warrant and to the extent
legally permissible.
Guarantees and Other Contingencies
Year End
2010
Lease guarantees and contingent rent on leases (1) ................................... $ 81.3
Loan guarantees (2) ........................................................... 13.0
Letters of credit (3) ........................................................... 32.4
Total Wendy’s/Arby’s Restaurants ........................................... 126.7
Letters of credit (3) ........................................................... 0.7
Total Wendy’s/Arby’s ..................................................... $127.4
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