Wendy's 2011 Annual Report Download - page 139

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 3, 2010
Parent
Guarantor
Subsidiaries
Non-guarantor
Subsidiaries Eliminations Total
Cash flows from operating activities:
Net income (loss) .............................. $ 9,649 $ (51,028) $(127,724) $ 178,752 $ 9,649
Adjustments to reconcile net income (loss) to net cash
(used in) provided by operating activities: .........
Equity in loss from operations of subsidiaries .... 52,890 125,862 — (178,752) —
Depreciation and amortization ............... 4,270 117,824 66,412 — 188,506
Impairment of long-lived assets ............... — 23,443 56,513 — 79,956
Tax sharing (receivable from) payable to affiliate,
net ................................... (9,648) 53,923 (3,862) — 40,413
Write-off and amortization of deferred financing
costs .................................. 1,632 4,600 9,564 — 15,796
Distributions received from joint venture ....... — — 14,583 — 14,583
Other operating transactions with affiliates ...... (33,506) 15,848 31,772 — 14,114
Share-based compensation provision ........... 3,550 6,648 3,372 — 13,570
Non-cash rent expense ...................... — 10,685 1,933 — 12,618
Accretion of long-term debt .................. 718 9,395 287 — 10,400
Provision for doubtful accounts ............... — 868 7,301 — 8,169
Net receipt (recognition) of deferred vendor
incentives .............................. — 524 (1,315) — (791)
Equity in earnings in joint venture ............ — — (8,499) — (8,499)
Tax sharing payment to affiliate, net ........... — (10,417) — — (10,417)
Deferred income tax (benefit) provision, net ..... (94,686) (48,238) 74,383 — (68,541)
Other, net ............................... (559) 10,110 (3,998) — 5,553
Changes in operating assets and liabilities net:
Accounts and notes receivable ............ (29) 2,787 (10,437) — (7,679)
Inventories ........................... — 517 1,362 — 1,879
Prepaid expenses and other current assets . . . (4,918) 5,597 442 — 1,121
Accounts payable ...................... 1,794 (43,205) (11,149) — (52,560)
Accrued expenses and other current
liabilities .......................... 41,301 41,730 (29,241) — 53,790
Net cash (used in) provided by
operating activities ............... (27,542) 277,473 71,699 — 321,630
Cash flows from investing activities:
Capital expenditures ....................... (17,113) (50,812) (33,989) — (101,914)
Cost of acquisitions, less cash acquired ......... — (664) (1,693) — (2,357)
Proceeds from dispositions .................. — 9,785 1,097 — 10,882
Other, net ............................... — (456) 648 — 192
Net cash used in investing activities .... (17,113) (42,147) (33,937) — (93,197)
Cash flows from financing activities:
Proceeds from long-term debt ................ 551,061 26,550 29,896 — 607,507
Repayments of long-term debt ................ (52) (39,107) (170,323) — (209,482)
Dividends paid to The Wendy’s Company ...... (115,000) — — — (115,000)
Capital contributions from Parent ............. (132,500) — 132,500 — —
Other, net ............................... (21,247) (3,951) (13,201) — (38,399)
Net cash provided by (used in)
financing activities ............... 282,262 (16,508) (21,128) — 244,626
Net cash provided by operations before effect of exchange
rate changes on cash .............................. 237,607 218,818 16,634 — 473,059
Effect of exchange rate changes on cash ................. — — 2,725 — 2,725
Net increase in cash and cash equivalents ............... 237,607 218,818 19,359 — 475,784
Cash and cash equivalents at beginning of period ......... — 36,412 26,668 — 63,080
Cash and cash equivalents at end of period .............. $237,607 $255,230 $ 46,027 $ — $ 538,864
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