Wendy's 2014 Annual Report Download - page 49

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Additionally in 2013, we received a cash dividend of $40.1 million from our investment in Arby’s, of which
$21.1 million was recognized in income, with the remainder recorded as a reduction to the carrying value of our
investment, as discussed below.
Cash used in investing activities increased $111.1 million during 2014 as compared to 2013, primarily due to
the following:
• an increase of $74.2 million in capital expenditures primarily for our Image Activation program;
• an increase in cash used for acquisitions of franchised restaurants of $49.3 million;
• a decrease of $20.6 million in cash provided by investment activities, net due to the dividend received from
Arby’s in 2013, of which $19.0 million was recorded as a return of our investment; partially offset by
• a favorable change in restricted cash of $20.3 million related to cash collateral for outstanding letters of
credit; and
• an increase of $12.3 million in proceeds from dispositions primarily related to our system optimization
initiative.
Cash used in financing activities increased $251.7 million during 2014 as compared to 2013, primarily due to
the following:
• an increase in repurchases of common stock of $231.9 million;
• a net increase in cash used for long-term debt activities of $12.7 million;
• a decrease in proceeds from the exercise of stock options of $11.6 million; and
• an increase in dividend payments of $4.4 million.
The net cash used in our business before the effect of exchange rate changes on cash was $307.6 million.
2013 Compared with 2012
Cash provided by operating activities increased $139.4 million during 2013 as compared to 2012, primarily
due to changes in our net income and non-cash items as well as the following:
• a $55.0 million favorable impact in accrued expenses and other current liabilities for the comparable periods.
This favorable impact was primarily due to (1) decreases in interest payments due to the net effect of the
May 15, 2012 Credit Agreement and the related purchase and redemption of the Senior Notes in May and
July 2012, respectively, (2) an increase in the incentive compensation accrual for the 2013 fiscal year due to
stronger operating performance partially offset by an increase in payments for the 2012 fiscal year,
(3) decreases in payments for income taxes, net of refunds and (4) a decrease in payments for severance and
an increase in accruals, including for our system optimization initiative; and
• a $8.9 million favorable impact in accounts payable for the comparable periods. This favorable impact was
primarily due to (1) an increase in accruals for capital expenditures primarily related to our Image Activation
program and (2) changes in accounts payable due to the timing of payments between comparable periods.
Additionally in 2013, we received a cash dividend from our investment in Arby’s, of which $21.1 million was
recognized in income, with the remainder recorded as a reduction to the carrying value of our investment.
Cash used in investing activities decreased $112.7 million during 2013 as compared to 2012, primarily due to
the following:
• an increase of $128.1 million in proceeds from dispositions primarily related to our system optimization
initiative;
• a decrease in cash used for acquisitions of franchised restaurants of $36.0 million; partially offset by
• an increase of $26.7 million in capital expenditures primarily for our Image Activation program; and
• an increase in restricted cash of $18.6 million related to cash collateral for outstanding letters of credit.
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