Wendy's 2010 Annual Report Download - page 89

WENDY’S/ARBY’S RESTAURANTS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Year Ended
January 2,
2011
January 3,
2010
December 28,
2008
Cash flows from continuing operating activities:
Net (loss) income ................................................ $ (2,638) $ 9,649 $(365,086)
Adjustments to reconcile net (loss) income to net cash provided by continuing
operating activities:
Depreciation and amortization .................................. 180,310 188,506 85,058
Impairment of long-lived assets ................................. 69,477 79,956 9,580
Accretion of long-term debt .................................... 15,016 10,400 2,452
Distributions received from joint venture .......................... 13,980 14,583 2,864
Share-based compensation provision ............................. 12,790 13,570 8,770
Write-off and amortization of deferred financing costs ................ 11,763 15,796 3,753
Provision for doubtful accounts ................................. 9,694 8,169 670
Non-cash rent expense ........................................ 9,334 12,618 3,103
Tax sharing payable to Wendy’s/Arby’s, net ........................ 1,052 40,413 —
Tax sharing payments to Wendy’s/Arby’s ......................... — (10,417) (17,000)
Net recognition of deferred vendor incentive ....................... (587) (791) (6,459)
Other operating transactions with Wendy’s/Arby’s .................. (8,032) 14,114 5,263
Equity in earnings in joint venture ............................... (9,459) (8,499) (1,974)
Deferred income tax benefit .................................... (25,752) (68,541) (62,723)
Goodwill impairment ........................................ — — 460,075
Other, net ................................................. (504) 5,553 4,352
Changes in operating assets and liabilities:
Accounts and notes receivable .............................. (4,193) (7,679) (1,367)
Inventories ............................................. 394 1,879 (140)
Prepaid expenses and other current assets ...................... 755 1,121 19,800
Accounts payable ........................................ (14,184) (52,560) 14,532
Accrued expenses and other current liabilities .................. (27,962) 53,841 (64,558)
Net cash provided by continuing operating activities ......... 231,254 321,681 100,965
Cash flows from continuing investing activities:
Capital expenditures ............................................. (147,969) (101,914) (105,924)
Proceeds from dispositions ......................................... 5,660 10,882 1,322
Cost of acquisitions, less cash acquired ................................ (3,123) (2,357) (9,622)
Increase in cash from merger with Wendy’s ............................ — — 199,785
Other, net ..................................................... 1,263 192 (129)
Net cash (used in) provided by continuing investing
activities ......................................... (144,169) (93,197) 85,432
Cash flows from continuing financing activities:
Proceeds from long-term debt ...................................... 497,661 607,507 17,753
Repayments of notes payable and long-term debt ....................... (466,461) (209,482) (175,521)
Deferred financing costs ........................................... (16,353) (38,399) —
Capital contributions from Wendy’s/Arby’s ............................ — — 150,177
Dividends/advances to Wendy’s/Arby’s ............................... (443,700) (115,000) (155,000)
Other, net ..................................................... (21) — (659)
Net cash (used in) provided by continuing financing
activities ......................................... (428,874) 244,626 (163,250)
Net cash (used in) provided by continuing operations before effect of exchange rate
changes on cash ................................................... (341,789) 473,110 23,147
Effect of exchange rate changes on cash ................................... 1,611 2,725 (4,123)
Net cash (used in) provided by continuing operations ........................ (340,178) 475,835 19,024
Net cash used in operating activities of discontinued operations ................ — (51) —
Net (decrease) increase in cash and cash equivalents .......................... (340,178) 475,784 19,024
Cash and cash equivalents at beginning of year ............................. 538,864 63,080 44,056
Cash and cash equivalents at end of year .................................. $198,686 $ 538,864 $ 63,080
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