Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 29, 2015

Condensed Consolidating Statements of Operations




	13 Weeks Ended September 29, 2015
	Parent			Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Total sales	$	—		$	249,891		$	50,761		$	—	$	—	$	300,652
Total costs and expenses	—			245,946			49,983			—		—		295,929
Operating income	—			3,945			778			—		—		4,723
Interest expense	—			10,240			—			—		—		10,240
Equity in net loss of subsidiary	(2,116		)	(1,440		)	—			—		3,556		—
(Loss) income before income taxes	(2,116		)	(7,735		)	778			—		3,556		(5,517		)
Income tax (benefit) expense	—			(5,619		)	2,218			—		—		(3,401		)
Net loss	$	(2,116	)	$	(2,116	)	$	(1,440	)	$	—	$	3,556	$	(2,116	)




	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		)	—
(Loss) income 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




	39 Weeks Ended September 29, 2015
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	764,369		$	151,727	$	—	$	—		$	916,096
Total costs and expenses	—		739,355			146,480		—		—			885,835
Operating income	—		25,014			5,247		—		—			30,261
Interest expense	—		31,197			—		—		—			31,197
Equity in net income of subsidiary	2,931		3,483			—		—		(6,414		)	—
(Loss) income before income taxes	2,931		(2,700		)	5,247		—		(6,414		)	(936		)
Income tax (benefit) expense	—		(5,631		)	1,764		—		—			(3,867		)
Net income	$	2,931	$	2,931		$	3,483	$	—	$	(6,414	)	$	2,931




	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		)	—
(Loss) income 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



	September 29, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	66,244	$	6,640	$	—	$	—		$	72,884
Facilities and equipment, net	—		160,629		43,726		—		—			204,355
Franchise rights, net	—		580,995		44,114		—		—			625,109
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	269,956		74,677		—		—		(344,633		)	—
Other assets, net	—		35,820		1,814		—		—			37,634
Total assets	$	269,956	$	1,208,867	$	100,418	$	—	$	(344,633	)	$	1,234,608
Liabilities and member’s equity:
Current liabilities	$	—	$	93,571	$	17,255	$	—	$	—		$	110,826
Long-term debt	—		588,144		—		—		—			588,144
Other liabilities and deferred items	—		54,716		5,924		—		—			60,640
Deferred income taxes	—		202,480		2,562		—		—			205,042
Member’s equity	269,956		269,956		74,677		—		(344,633		)	269,956
Total liabilities and member’s equity	$	269,956	$	1,208,867	$	100,418	$	—	$	(344,633	)	$	1,234,608



	December 30, 2014
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	51,700	$	10,210	$	—	$	—		$	61,910
Facilities and equipment, net	—		162,248		35,874		—		—			198,122
Franchise rights, net	—		592,633		46,412		—		—			639,045
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	267,025		75,902		—		—		(342,927		)	—
Other assets, net	—		40,794		1,858		—		—			42,652
Total assets	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355
Liabilities and member’s equity:
Current liabilities	$	—	$	90,701	$	16,440	$	—	$	—		$	107,141
Long-term debt	—		591,263		—		—		—			591,263
Other liabilities and deferred items	—		55,467		4,736		—		—			60,203
Deferred income taxes	—		209,323		1,400		—		—			210,723
Member’s equity	267,025		267,025		75,902		—		(342,927		)	267,025
Total liabilities and member’s equity	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355



	39 Weeks Ended September 29, 2015
	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	$	—	$	47,405		$	15,865		$	—	$	—		$	63,270
Investing activities:
Capital expenditures	—		(30,678		)	(11,319		)	—		—			(41,997		)
Return of investment in NPCQB	—		4,708			—			—		(4,708		)	—
Proceeds from sale-leaseback transactions	—		1,408			—			—		—			1,408
Proceeds from sale or disposition of assets	—		371			150			—		—			521
Net cash flows used in investing activities	—		(24,191		)	(11,169		)	—		(4,708		)	(40,068		)
Financing activities:
Net payments on debt	—		(3,119		)	—			—		—			(3,119		)
Distribution to parent	—		—			(4,708		)	—		4,708			—
Net cash flows used in financing activities	—		(3,119		)	(4,708		)	—		4,708			(3,119		)
Net change in cash and cash equivalents	—		20,095			(12		)	—		—			20,083
Beginning cash and cash equivalents	—		11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—	$	31,373		$	773		$	—	$	—		$	32,146



	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		)
Purchase of Wendy’s business assets, 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