Wendy's 2011 Annual Report Download - page 58

Dividends
(The Wendy’s Company)
The Wendy’s Company paid quarterly cash dividends of $0.02 per share on its common stock during 2011,
aggregating $32.4 million. During the 2012 first quarter, The Wendy’s Company declared dividends of $0.02 per
share to be paid on March 15, 2012 to shareholders of record as of March 1, 2012. If The Wendy’s Company pays
regular quarterly cash dividends for the remainder of 2012 at the same rate as declared in our 2012 first quarter, The
Wendy’s Company’s total cash requirement for dividends for all of 2012 would be approximately $31.2 million based
on the number of shares of its common stock outstanding at February 24, 2012. The Wendy’s Company currently
intends to continue to declare and pay quarterly cash dividends; however, there can be no assurance that any quarterly
dividends will be declared or paid in the future or of the amount or timing of such dividends, if any.
(Wendy’s Restaurants)
During 2010, $443.7 million of intercompany dividends were paid to The Wendy’s Company. During 2009,
$115.0 million of dividends were paid to The Wendy’s Company. No dividends were paid to The Wendy’s
Company during 2011.
As of January 1, 2012, under the terms of the Wendy’s Restaurants’ credit agreement, there was $77.7 million
available for the payment of dividends directly to The Wendy’s Company.
Stock Repurchases
(The Wendy’s Company)
For the year ended January 1, 2012, we repurchased 31.0 million shares with an aggregate purchase price of
$157.0 million, excluding commissions of $0.6 million. At the end of fiscal 2011, the authorization for the repurchase
program expired.
Guarantees and Other Contingencies
Year End
2011
Lease guarantees and contingent rent on leases (a) .................................... $54.8
Recourse on loans (b) ......................................................... 13.7
Letters of credit (c) ........................................................... 20.7
Total Wendy’s Restaurants ................................................. 89.2
Letters of credit (c) ........................................................... 0.6
Total The Wendy’s Company ............................................... $89.8
(a) Wendy’s is contingently liable for certain leases and other obligations primarily from company-owned restaurant
locations now operated by franchises amounting to $46.8 million as of January 1, 2012. These leases extend
through 2048. In addition, Wendy’s is contingently liable for certain leases which have been assigned to
unrelated third parties, who have indemnified Wendy’s against future liabilities arising under the leases of $8.0
million. These leases expire on various dates through 2021.
(b) Wendy’s provided loan guarantees to various lenders on behalf of franchisees under debt arrangements for new
store development and equipment financing. Recourse on the majority of these loans is limited, generally to a
percentage of the original loan amount or the current loan balance on individual franchisee loans or an aggregate
minimum for the entire loan arrangement.
(c) Wendy’s Restaurants has outstanding letters of credit of $20.7 million with various parties. Additionally, The
Wendy’s Company has a $0.6 million letter of credit outstanding. Our management does not expect any
material loss to result from these letters of credit because we do not believe performance will be required.
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