Wendy's 2013 Annual Report Download - page 53

Contractual Obligations
The following table summarizes the expected payments under our outstanding contractual obligations at
December 29, 2013:
Fiscal Years
2014 2015-2016 2017-2018 After 2018 Total
Long-term debt obligations (a) ....................... $ 81.5 $219.9 $585.9 $ 895.9 $1,783.2
Capital lease obligations (b) .......................... 5.5 11.1 10.5 70.0 97.1
Operating lease obligations (c) ........................ 69.9 122.5 113.6 735.2 1,041.2
Purchase obligations (d) ............................ 72.1 34.6 25.8 39.7 172.2
Other .......................................... 11.4 1.4 0.4 — 13.2
Total (e) .................................... $240.4 $389.5 $736.2 $1,740.8 $3,106.9
(a) Excludes capital lease obligations, which are shown separately in the table. The table includes interest of
approximately $344.7 million. These amounts exclude the fair value adjustment related to Wendy’s 7%
debentures assumed in the Wendy’s merger.
(b) Excludes related sublease rental receipts of $42.7 million on capital lease obligations. The table includes interest
of approximately $56.4 million for capital lease obligations.
(c) Represents the minimum lease cash payments. Excludes aggregate related sublease rental receipts of
$294.5 million.
(d) Includes (1) $103.0 million for the remaining beverage purchase requirement under the beverage agreement,
(2) $41.7 million for capital expenditures, (3) $13.7 million for utility commitments and (4) $13.8 million of
other purchase obligations.
(e) Excludes obligation for unrecognized tax benefits, including interest and penalties, of $27.5 million. We are
unable to predict when and if cash payments will be required.
Capital Expenditures
In 2013, cash capital expenditures amounted to $224.2 million and non-cash capital expenditures, consisting of
capitalized lease obligations, amounted to $10.8 million. In 2014, we expect that cash capital expenditures will
amount to approximately $285.0 million, principally relating to (1) reimaging approximately 200 company-owned
restaurants, (2) the opening of an estimated 15 new Image Activation company-owned restaurants, (3) maintenance
capital expenditures for our company-owned restaurants and (4) various other capital projects. We have $41.7 million
of outstanding commitments for capital expenditures as of December 29, 2013 which will be paid in 2014.
Dividends
The Wendy’s Company paid quarterly cash dividends of $0.04 per share on its common stock aggregating
$31.4 million in the first and second quarters of 2013. In the third and fourth quarters of 2013, The Wendy’s
Company paid quarterly cash dividends of $0.05 per share on its common stock aggregating $39.3 million. During
the first quarter of 2014, The Wendy’s Company declared a dividend of $0.05 per share to be paid on March 17,
2014 to shareholders of record as of March 3, 2014. If The Wendy’s Company pays regular quarterly cash dividends
for the remainder of 2014 at the same rate as declared in the first quarter of 2014, The Wendy’s Company’s total cash
requirement for dividends for all of 2014 would be approximately $73.2 million based on the number of shares of its
common stock outstanding at February 21, 2014. The Wendy’s Company currently intends to continue to declare
and pay quarterly cash dividends; however, there can be no assurance that any additional quarterly dividends will be
declared or paid or of the amount or timing of such dividends, if any.
Stock Repurchases
In November 2012, our Board of Directors authorized the repurchase of up to $100.0 million of our common
stock through December 29, 2013. No repurchases were made during 2012. During the year ended December 29, 2013,
we repurchased 8.7 million shares for an aggregate purchase price of $69.2 million, excluding commissions of
$0.1 million. The authorization for the repurchase program expired at the end of the 2013 fiscal year.
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