Wendy's 2014 Annual Report Download - page 52

Dividends
The Wendy’s Company paid quarterly cash dividends of $0.05 per share on its common stock aggregating
$55.0 million in the first three quarters of 2014. In the fourth quarter of 2014, The Wendy’s Company paid a
quarterly cash dividend of $0.055 per share on its common stock aggregating $20.1 million. During the first quarter
of 2015, The Wendy’s Company declared a dividend of $0.055 per share to be paid on March 16, 2015 to
shareholders of record as of March 2, 2015. If The Wendy’s Company pays regular quarterly cash dividends for the
remainder of 2015 at the same rate as declared in the first quarter of 2015, The Wendy’s Company’s total cash
requirement for dividends for all of 2015 would be approximately $80.9 million based on the number of shares of its
common stock outstanding at February 18, 2015. 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 August 2014, our Board of Directors authorized a repurchase program for up to $100.0 million of our
common stock through December 31, 2015, when and if market conditions warrant and to the extent legally
permissible. During 2014, the Company repurchased 3.0 million shares with an aggregate purchase price of
$23.9 million, excluding commissions. Subsequent to December 28, 2014 through February 18, 2015, we
repurchased 0.5 million shares for an aggregate purchase price of $6.0 million, excluding commissions.
In January 2014, our Board of Directors authorized a repurchase program for up to $275.0 million of our
common stock through the end of fiscal year 2014. As part of the repurchase program, the Board of Directors also
authorized the commencement of a modified Dutch auction tender offer to repurchase shares of our common stock
for an aggregate purchase price of up to $275.0 million. On February 11, 2014, the tender offer expired and on
February 19, 2014, the Company repurchased 29.7 million shares for an aggregate purchase price of $275.0 million.
As a result, the repurchase program authorized in January 2014 was completed. The Company incurred costs of
$2.3 million in connection with the tender offer, which were recorded to treasury stock.
In November 2012, our Board of Directors authorized the repurchase of up to $100.0 million of our common
stock through December 29, 2013. During 2013, the Company 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. No repurchases were made during 2012.
Guarantees and Other Contingencies
Year End
2014
Lease guarantees and contingent rent on leases (a) .................................... $41.4
Recourse on loans (b) ......................................................... 13.2
Letters of credit (c) ........................................................... 17.1
Total .................................................................. $71.7
(a) Wendy’s is contingently liable for certain leases and other obligations primarily from former company-owned
restaurant locations now operated by franchisees amounting to $38.2 million as of December 28, 2014. These
leases extend through 2050. In addition, Wendy’s is contingently liable for certain other leases which have been
assigned to unrelated third parties, who have indemnified Wendy’s against future liabilities amounting to
$3.2 million as of December 28, 2014. These leases expire on various dates through 2021.
(b) Wendy’s provides loan guarantees to various lenders on behalf of franchisees under debt arrangements for new
restaurant development and equipment financing to promote systemwide initiatives. 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. During 2014, Wendy’s
provided a $2.0 million guarantee to a lender on behalf of a franchisee, in connection with the sale of restaurants
to the franchisee under the Company’s system optimization initiative. As a result, the total amount of the
guarantee was recorded as a deferred gain and included in “Other liabilities.” In addition during 2012, Wendy’s
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