Wendy's 2012 Annual Report Download - page 66

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THE WENDY’S COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Year Ended
December 30,
2012
January 1,
2012
January 2,
2011
Cash flows from operating activities:
Net income (loss) ......................................... $ 9,467 $ 9,875 $ (4,325)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization ........................... 154,174 145,302 182,172
Loss on early extinguishment of debt ...................... 75,076 — —
Distributions received from TimWen joint venture ........... 15,274 14,942 13,980
Share-based compensation .............................. 11,473 17,688 13,704
Impairment of long-lived assets ........................... 21,097 14,441 69,477
Net (recognition) receipt of deferred vendor incentives ......... (920) 7,070 (587)
Accretion of long-term debt ............................. 7,973 8,120 15,016
Amortization of deferred financing costs .................... 4,241 6,216 11,779
Non-cash rent expense ................................. 7,210 7,554 9,334
Loss on disposal of Arby’s ............................... 442 8,799 —
Equity in earnings in joint ventures, net .................... (8,724) (9,465) (9,459)
Deferred income tax ................................... (31,598) 1,624 (29,779)
Operating investment adjustments, net (see below) ............ (27,769) (145) (5,201)
Other, net ........................................... 3,093 2,999 8,264
Changes in operating assets and liabilities:
Accounts and notes receivable ........................ 3,999 (2,690) (4,730)
Inventories ...................................... (561) (517) 394
Prepaid expenses and other current assets ............... (1,360) (7,580) 1,514
Accounts payable ................................. (9,266) 11,364 (15,795)
Accrued expenses and other current liabilities ............ (42,906) 11,120 (29,508)
Net cash provided by operating activities ........... 190,415 246,717 226,250
Cash flows from investing activities:
Capital expenditures ................................... (197,590) (146,763) (147,969)
Acquisitions ......................................... (40,608) (11,210) (3,123)
Franchise loans, net ................................... 3,092 (4,003) —
Sale of Arby’s, net ..................................... — 97,925 —
Dispositions ......................................... 21,023 6,960 5,660
Investment activities, net (see below) ...................... 27,949 (841) 32,158
Other, net ........................................... (3,251) (265) 352
Net cash used in investing activities ............... (189,385) (58,197) (112,922)
Cash flows from financing activities:
Proceeds from long-term debt ............................ 1,113,750 — 497,661
Repayments of long-term debt ........................... (1,044,310) (38,702) (474,791)
Deferred financing costs ................................ (15,566) (57) (16,353)
Premium payments on redemption/purchase of notes .......... (43,151) — —
Repurchases of common stock ........................... — (157,556) (173,537)
Dividends ........................................... (39,043) (32,366) (27,621)
Distribution to noncontrolling interests .................... (3,667) — —
Proceeds from stock option exercises ....................... 7,806 6,359 1,444
Other, net ........................................... 52 (2,262) (953)
Net cash used in financing activities ............... (24,129) (224,584) (194,150)
Net cash used in operations before effect of exchange rate changes on
cash ..................................................... (23,099) (36,064) (80,822)
Effect of exchange rate changes on cash ............................ 1,229 (1,213) 1,611
Net decrease in cash and cash equivalents ........................... (21,870) (37,277) (79,211)
Cash and cash equivalents at beginning of period ..................... 475,231 512,508 591,719
Cash and cash equivalents at end of period .......................... $ 453,361 $ 475,231 $ 512,508
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