Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014




	13 Weeks Ended September 30, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	251,827		$	47,772	$	—	$	—		$	299,599
Total costs and expenses	—		245,803			46,823		—		—			292,626
Operating income	—		6,024			949		—		—			6,973
Interest expense	—		10,344			—		—		—			10,344
Equity in net income of subsidiary	162		303			—		—		(465		)	—
Income (loss) before income taxes	162		(4,017		)	949		—		(465		)	(3,371		)
Income tax (benefit) expense	—		(4,179		)	646		—		—			(3,533		)
Net income	$	162	$	162		$	303	$	—	$	(465	)	$	162




	13 Weeks Ended September 24, 2013
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	252,798		$	8,007		$	—	$	—		$	260,805
Total costs and expenses	—		240,103			8,419			—		—			248,522
Operating income (loss)	—		12,695			(412		)	—		—			12,283
Interest expense	—		10,243			—			—		—			10,243
Equity in net income of subsidiary	2,562		—			—			—		(2,562		)	—
Income (loss) before income taxes	2,562		2,452			(412		)	—		(2,562		)	2,040
Income tax benefit	—		(427		)	(95		)	—		—			(522		)
Net income (loss)	$	2,562	$	2,879		$	(317	)	$	—	$	(2,562	)	$	2,562



	39 Weeks Ended September 30, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	771,042		$	110,716	$	—	$	—		$	881,758
Total costs and expenses	—		745,553			108,532		—		—			854,085
Operating income	—		25,489			2,184		—		—			27,673
Interest expense	—		30,548			—		—		—			30,548
Equity in net income of subsidiary	1,744		1,091			—		—		(2,835		)	—
Income (loss) before income taxes	1,744		(3,968		)	2,184		—		(2,835		)	(2,875		)
Income tax (benefit) expense	—		(5,712		)	1,093		—		—			(4,619		)
Net income	$	1,744	$	1,744		$	1,091	$	—	$	(2,835	)	$	1,744



	39 Weeks Ended September 24, 2013
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	793,725	$	8,007		$	—	$	—		$	801,732
Total costs and expenses	—		734,265		8,419			—		—			742,684
Operating income (loss)	—		59,460		(412		)	—		—			59,048
Interest expense	—		30,720		—			—		—			30,720
Equity in net income of subsidiary	23,894		—		—			—		(23,894		)	—
Income (loss) before income taxes	23,894		28,740		(412		)	—		(23,894		)	28,328
Income tax expense (benefit)	—		4,529		(95		)	—		—			4,434
Net income (loss)	$	23,894	$	24,211	$	(317	)	$	—	$	(23,894	)	$	23,894



	September 30, 2014
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	41,148	$	10,102	$	—	$	—		$	51,250
Facilities and equipment, net	—		164,728		31,883		—		—			196,611
Franchise rights, net	—		596,447		46,998		—		—			643,445
Goodwill	—		290,502		4,061		—		—			294,563
Investment in subsidiary	267,097		77,185		—		—		(344,282		)	—
Other assets, net	—		41,868		1,885		—		—			43,753
Total assets	$	267,097	$	1,211,878	$	94,929	$	—	$	(344,282	)	$	1,229,622
Liabilities and member’s equity:
Current liabilities	$	—	$	90,940	$	14,153	$	—	$	—		$	105,093
Long-term debt	—		591,263		—		—		—			591,263
Other liabilities and deferred items	—		54,806		3,226		—		—			58,032
Deferred income taxes	—		207,772		365		—		—			208,137
Member’s equity	267,097		267,097		77,185		—		(344,282		)	267,097
Total liabilities and member’s equity	$	267,097	$	1,211,878	$	94,929	$	—	$	(344,282	)	$	1,229,622



	December 31, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	53,364	$	3,740	$	—	$	—		$	57,104
Facilities and equipment, net	—		152,810		17,140		—		—			169,950
Franchise rights, net	—		607,880		32,271		—		—			640,151
Goodwill	—		290,502		2,121		—		—			292,623
Investment in subsidiary	265,326		50,978		—		—		(316,304		)	—
Other assets, net	—		44,273		1,011		—		—			45,284
Total assets	$	265,326	$	1,199,807	$	56,283	$	—	$	(316,304	)	$	1,205,112
Liabilities and member’s equity:
Current liabilities	$	—	$	100,766	$	4,302	$	—	$	—		$	105,068
Long-term debt	—		561,687		—		—		—			561,687
Other liabilities and deferred items	—		58,060		629		—		—			58,689
Deferred income taxes	—		214,081		374		—		—			214,455
Member’s equity	265,326		265,213		50,978		—		(316,304		)	265,213
Total liabilities and member’s equity	$	265,326	$	1,199,807	$	56,283	$	—	$	(316,304	)	$	1,205,112



	39 Weeks Ended September 30, 2014
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—	$	40,752		$	16,973		$	—	$	—		$	57,725
Investing activities:
Capital expenditures	—		(45,697		)	(4,810		)	—		—			(50,507		)
Acquisition of Wendy’s business, net of cash acquired	—		—			(56,803		)	—		—			(56,803		)
Investment in NPCQB	—		(57,002		)	—			—		57,002			—
Return of investment in NPCQB	—		31,886			—			—		(31,886		)	—
Proceeds from sale-leaseback transactions	—		—			19,429			—		—			19,429
Proceeds from sale or disposition of assets	—		2,843			45			—		—			2,888
Net cash flows used in investing activities	—		(67,970		)	(42,139		)	—		25,116			(84,993		)
Financing activities:
Investment from parent	—		—			57,002			—		(57,002		)	—
Payment of accrued purchase price to sellers	—		(10,875		)	—			—		—			(10,875		)
Net payments on debt	—		(9,704		)	—			—		—			(9,704		)
Issuance of debt	—		40,000			—			—		—			40,000
Distribution to parent	—		—			(31,886		)	—		31,886			—
Other	—		(553		)	—			—		—			(553		)
Net cash flows provided by financing activities	—		18,868			25,116			—		(25,116		)	18,868
Net change in cash and cash equivalents	—		(8,350		)	(50		)	—		—			(8,400		)
Beginning cash and cash equivalents	—		19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—	$	10,820		$	815		$	—	$	—		$	11,635



	39 Weeks Ended September 24, 2013
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—	$	75,002		$	2,599		$	—	$	—		$	77,601
Investing activities:
Capital expenditures	—		(35,776		)	(68		)	—		—			(35,844		)
Acquisition of Wendy’s business, net of cash acquired			—			(21,505		)	—		—			(21,505		)
Investment in NPCQB	—		(21,557		)	—			—		21,557			—
Proceeds from sale or disposition of assets	—		554			—			—		—			554
Net cash flows used in investing activities	—		(56,779		)	(21,573		)	—		21,557			(56,795		)
Financing activities:
Investment from parent	—		—			21,557			—		(21,557		)	—
Other	—		(2,936		)	—			—		—			(2,936		)
Net cash flows (used in) provided by financing activities	—		(2,936		)	21,557			—		(21,557		)	(2,936		)
Net change in cash and cash equivalents	—		15,287			2,583			—		—			17,870
Beginning cash and cash equivalents	—		25,493			—			—		—			25,493
Ending cash and cash equivalents	$	—	$	40,780		$	2,583		$	—	$	—		$	43,363