Wendy's 2012 Annual Report Download - page 39

Our obligations, including the funding of anticipated future cash requirements of the Japan JV of
approximately $3.0 million, could total up to approximately $8.0 million if our joint venture partners are unable to
perform their reimbursement and indemnity obligations to us.
Presentation of Financial Information
The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to
December 31 and are referred to herein as (1) “the year ended December 30, 2012” or “2012,” (2) “the year ended
January 1, 2012” or “2011,” and (3) “the year ended January 2, 2011” or “2010,” all of which consisted of 52 weeks.
All references to years and quarters relate to fiscal periods rather than calendar periods.
Results of Operations
As a result of the sale of Arby’s as discussed above in “Executive Overview—Sale of Arby’s,” Arby’s results of
operations for all periods presented and the loss on sale have been included in “Net income (loss) from discontinued
operations” in the table below.
The tables included throughout Results of Operations set forth in millions the Company’s consolidated results
of operations for the years ended December 30, 2012, January 1, 2012 and January 2, 2011 (except company-owned
average unit volumes, which are in thousands):
2012 2011 2010
Amount Change Amount Change Amount
Revenues:
Sales .......................................... $2,198.3 $ 71.7 $2,126.6 $ 47.5 $2,079.1
Franchise revenues ............................... 306.9 2.1 304.8 8.5 296.3
2,505.2 73.8 2,431.4 56.0 2,375.4
Costs and expenses:
Cost of sales .................................... 1,881.2 65.1 1,816.1 59.1 1,757.0
General and administrative ........................ 287.8 (4.6) 292.4 (19.1) 311.5
Depreciation and amortization ...................... 147.0 24.0 123.0 (3.8) 126.8
Impairment of long-lived assets ..................... 21.1 8.2 12.9 (13.4) 26.3
Facilities relocation costs and other transactions ......... 41.0 (4.7) 45.7 45.7 —
Other operating expense, net ....................... 4.4 0.2 4.2 0.8 3.4
2,382.5 88.2 2,294.3 69.3 2,225.0
Operating profit ............................. 122.7 (14.4) 137.1 (13.3) 150.4
Interest expense ..................................... (98.6) 15.5 (114.1) 4.3 (118.4)
Loss on early extinguishment of debt ..................... (75.1) (75.1) — 26.2 (26.2)
Investment income, net ............................... 36.3 35.8 0.5 (4.8) 5.3
Other income, net ................................... 1.6 0.7 0.9 (1.6) 2.5
(Loss) income from continuing operations before income
taxes and noncontrolling interests ................. (13.1) (37.5) 24.4 10.8 13.6
Benefit from (provision for) income taxes .................. 21.1 27.6 (6.5) (11.0) 4.5
Income from continuing operations .................. 8.0 (9.9) 17.9 (0.2) 18.1
Net income (loss) from discontinued operations ............ 1.5 9.5 (8.0) 14.4 (22.4)
Net income (loss) ............................ 9.5 (0.4) 9.9 14.2 (4.3)
Net income attributable to noncontrolling
interests ................................. (2.4) (2.4) — — —
Net income (loss) attributable to The Wendy’s
Company ............................ $ 7.1 $ (2.8) $ 9.9 $ 14.2 $ (4.3)
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