Wendy's 2011 Annual Report Download - page 57

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Contractual Obligations
The following table summarizes the expected payments under our outstanding contractual obligations at
January 1, 2012:
Fiscal Years
2012 2013-2014 2015-2016 After 2016 Total
Long-term debt (a) ................................ $ 97.7 $418.8 $745.8 $ 617.6 $1,879.9
Capitalized lease and sale-leaseback obligations (b) ........ 2.9 5.1 4.8 22.5 35.3
Operating leases (c) ................................ 75.2 128.6 110.0 644.9 958.7
Purchase obligations (d) ............................ 60.6 43.7 40.9 48.4 193.6
Other (e) ........................................ 32.7 4.5 — — 37.2
Total Wendy’s Restaurants ...................... 269.1 600.7 901.5 1,333.4 3,104.7
Corporate long-term debt (a) ......................... 2.2 10.3 — — 12.5
Corporate operating leases (c) ........................ 0.7 — — — 0.7
Other Corporate (f) ................................ 3.1 0.1 — — 3.2
Total The Wendy’s Company (g) ................. $275.1 $611.1 $901.5 $1,333.4 $3,121.1
(a) Excludes sale-leaseback and capitalized lease obligations, which are shown separately in the table. The table above
includes interest of approximately $522.8 million. The table above also reflects the effect of interest rate swaps
entered into in 2009 which lowered our interest rate on our 6.20% Wendy’s senior notes. These amounts
exclude the effects of the original issue discount on our 10% Senior Notes and the fair value adjustments related
to certain debt assumed in the merger with Wendy’s.
(b) Excludes related sublease rental receipts of $7.3 million on capitalized lease obligations and $2.0 million on sale-
leaseback obligations. The table above includes interest of approximately $16.9 million for capitalized lease
obligations and $1.8 million for sale-leaseback obligations.
(c) Represents the minimum lease cash payments. Excludes aggregate related sublease rental receipts of $49.0
million for Wendy’s Restaurants and additional sublease rental receipts for The Wendy’s Company of $0.6
million.
(d) Includes (1) $150.7 million remaining for beverage purchase requirements for Wendy’s Restaurants, (2) $26.3
million for capital expenditures, (3) $14.5 million for utility commitments, and (4) $2.1 million of other
purchase obligations.
(e) Primarily represents anticipated payments for severance and employee retention in connection with the sale of
Arby’s and announcements that the Companies’ Atlanta headquarters and restaurant support center would be
relocated to Ohio.
(f) Includes (1) $2.9 million loss on a foreign currency derivative transaction in connection with the sale of Jurlique,
one of our investments, and (2) $0.3 million for other items.
(g) Excludes obligation for uncertain income tax positions of $20.4 million and $30.6 million for Wendy’s
Restaurants and The Wendy’s Company respectively. We are unable to predict when and if cash payments on
any of this accrual will be required.
Capital Expenditures
In 2011, cash capital expenditures amounted to $146.8 million and non-cash capital expenditures, consisting of
capitalized leases and certain sale-leaseback obligations, amounted to $2.3 million. In 2012, we expect that cash
capital expenditures will amount to approximately $225 million, principally relating to (1) remodeling approximately
50 Wendy’s company-owned restaurants, (2) the opening of an estimated 20 new Wendy’s company-owned
restaurants, (3) ongoing maintenance capital expenditures for our company-owned restaurants, and (4) various capital
projects. We have $26.3 million of outstanding commitments for capital expenditures as of January 1, 2012 to be
paid in 2012.
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