Wendy's 2011 Annual Report Download - page 137

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THE WENDY’S COMPANY AND SUBSIDIARIES
WENDY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended January 1, 2012
Parent
Guarantor
Subsidiaries
Non-guarantor
Subsidiaries Eliminations Total
Cash flows from operating activities:
Net income (loss) ................................. $ 12,933 $ 105,557 $ (8,550) $(97,007) $ 12,933
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Equity in (income) loss from operations of
subsidiaries ................................ (106,218) 9,211 — 97,007 —
Depreciation and amortization .................. 10,826 100,994 32,855 — 144,675
Share-based compensation provision .............. 9,301 6,694 672 — 16,667
Distributions received from joint venture .......... — — 14,942 — 14,942
Impairment of long-lived assets .................. — 12,346 2,095 — 14,441
Deferred income tax provision (benefit), net ........ 11,307 852 (441) — 11,718
Loss on disposal of Arby’s ...................... 8,799 — — — 8,799
Accretion of long-term debt ..................... 2,102 5,854 164 — 8,120
Non-cash rent expense (credit) .................. — 7,892 (341) — 7,551
Net (recognition) receipt of deferred vendor
incentives ................................. — (17) 7,087 — 7,070
Write-off and amortization of deferred financing
costs ..................................... 6,204 — — — 6,204
Tax sharing (receivable from) payable to affiliate,
net ...................................... (66,808) 69,245 — — 2,437
Provision for doubtful accounts .................. — 113 2,321 — 2,434
Tax sharing receipt from (payment to) affiliate, net . . . 52,000 (52,000) — — —
Other operating transactions with affiliates ......... 78,148 (28,885) (55,294) — (6,031)
Equity in earnings in joint ventures, net ........... — — (9,465) — (9,465)
Tax sharing payment to The Wendy’s Company ..... (13,078) — — — (13,078)
Other, net .................................. (1,794) 3,806 (1,678) — 334
Changes in operating assets and liabilities: ..........
Accounts and notes receivable ............... 22 1,152 (4,074) — (2,900)
Inventories .............................. (6) 856 (1,367) — (517)
Prepaid expenses and other current assets ...... (2,715) (1,953) (3,193) — (7,861)
Accounts payable ......................... 3,554 3,069 4,463 — 11,086
Accrued expenses and other current liabilities . . . 15,802 1,003 (1,259) — 15,546
Net cash provided by (used in) operating
activities .......................... 20,379 245,789 (21,063) — 245,105
Cash flows from investing activities:
Capital expenditures .......................... (9,742) (119,827) (17,194) — (146,763)
Restaurant acquisitions ........................ — (11,210) — — (11,210)
Franchise incentive loans ....................... — (4,003) — — (4,003)
Investment in joint venture ..................... — (1,183) — — (1,183)
Proceeds from sale of Arby’s, net of Arby’s cash ...... 105,001 — (7,076) — 97,925
Proceeds from other dispositions ................. 11 6,113 836 — 6,960
Other, net .................................. — — (265) — (265)
Net cash provided by (used in) investing
activities .......................... 95,270 (130,110) (23,699) — (58,539)
Cash flows from financing activities:
Repayments of long-term debt ................... (30,309) (671) (6,354) — (37,334)
Capital contribution from Parent ................. (30,000) — 30,000 — —
Dividend paid to Parent ....................... 40,000 (40,000) — — —
Deferred financing costs ....................... (57) — — — (57)
Net cash (used in) provided by financing
activities .......................... (20,366) (40,671) 23,646 — (37,391)
Net cash provided by (used in) operations before effect of
exchange rate changes on cash ......................... 95,283 75,008 (21,116) — 149,175
Effect of exchange rate changes on cash .................... — — (1,213) — (1,213)
Net increase (decrease) in cash and cash equivalents .......... 95,283 75,008 (22,329) — 147,962
Cash and cash equivalents at beginning of period ............ 79,355 53,810 65,521 — 198,686
Cash and cash equivalents at end of period ................. $174,638 $ 128,818 $ 43,192 $ — $ 346,648
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