Wendy's 2011 Annual Report Download - page 138

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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 2, 2011
Parent
Guarantor
Subsidiaries
Non-guarantor
Subsidiaries Eliminations Total
Cash flows from operating activities:
Net (loss) income ................................. $ (2,638) $ 41,944 $ (72,644) $ 30,700 $ (2,638)
Adjustments to reconcile net (loss) income to net cash (used
in) provided by operating activities:
Equity in (income) loss from operations of
subsidiaries ................................ (19,446) 50,152 — (30,706) —
Depreciation and amortization ................... 11,920 102,148 66,242 — 180,310
Impairment of long-lived assets .................. — 22,458 47,019 — 69,477
Accretion of long-term debt ..................... 1,705 13,022 289 — 15,016
Distributions received from joint venture ........... — — 13,980 — 13,980
Share-based compensation provision .............. 3,951 5,624 3,215 — 12,790
Write-off and amortization of deferred financing
costs ..................................... 4,518 — 7,245 — 11,763
Provision for doubtful accounts .................. — 1,703 7,991 — 9,694
Non-cash rent expense (credit) ................... — 9,375 (41) — 9,334
Tax sharing (receivable from) payable to affiliate,
net ...................................... (49,736) 50,788 — — 1,052
Tax sharing receipt from (payment to) affiliate, net . . . 56,000 (56,000) — — —
Net (recognition) receipt of deferred vendor
incentives ................................. — (1,495) 908 — (587)
Other operating transactions with affiliates ......... (20,370) (55,099) 67,437 — (8,032)
Equity in earnings in joint venture ................ — — (9,459) — (9,459)
Deferred income tax benefit, net ................. (18,351) (5,308) (2,093) — (25,752)
Other, net ................................... 2,406 4,792 (7,708) 6 (504)
Changes in operating assets and liabilities net: .......
Accounts and notes receivable ............... (61) 4,724 (8,856) — (4,193)
Inventories .............................. — (503) 897 — 394
Prepaid expenses and other current assets ....... 1,017 (2,148) 1,886 — 755
Accounts payable ......................... 2,341 (9,270) (7,255) — (14,184)
Accrued expenses and other current liabilities .... (3,808) (30,727) 6,573 — (27,962)
Net cash (used in) provided by operating
activities .......................... (30,552) 146,180 115,626 — 231,254
Cash flows from investing activities:
Capital expenditures ........................... (17,075) (66,817) (64,077) — (147,969)
Cost of acquisitions, less cash acquired ............. — (3,123) — — (3,123)
Proceeds from dispositions ...................... — 3,405 2,255 — 5,660
Other, net ................................... — — 1,263 — 1,263
Net cash used in investing activities ....... (17,075) (66,535) (60,559) — (144,169)
Cash flows from financing activities: ......................
Proceeds from long-term debt ................... 497,500 — 161 — 497,661
Repayments of long-term debt ................... (2,716) (200,708) (263,037) — (466,461)
Dividends paid to The Wendy’s Company ......... (443,700) — — — (443,700)
Deferred financing costs ........................ (16,353) — — — (16,353)
Dividends paid to Parent ....................... 375,000 (361,000) (14,000) — —
Capital contributions from Parent ................ (520,335) 260,766 259,569 — —
Redemption of preferred stock ................... — 19,877 (19,877) — —
Other, net ................................... (21) — — — (21)
Net cash used in financing activities ....... (110,625) (281,065) (37,184) — (428,874)
Net cash (used in) provided by operations before effect of
exchange rate changes on cash ......................... (158,252) (201,420) 17,883 — (341,789)
Effect of exchange rate changes on cash .................... — — 1,611 — 1,611
Net (decrease) increase in cash and cash equivalents ........... (158,252) (201,420) 19,494 — (340,178)
Cash and cash equivalents at beginning of period ............. 237,607 255,230 46,027 — 538,864
Cash and cash equivalents at end of period .................. $ 79,355 $ 53,810 $ 65,521 $ — $ 198,686
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