Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 28, 2016

Condensed Consolidating Statements of Income




	13 Weeks Ended June 28, 2016
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	250,388	$	53,597		$	—	$	—		$	303,985
Total costs and expenses	—		241,750		49,485			—		—			291,235
Operating income	—		8,638		4,112			—		—			12,750
Interest expense	—		11,205		—			—		—			11,205
Equity in net income of subsidiary	1,271		4,367		—			—		(5,638		)	—
Income before income taxes	1,271		1,800		4,112			—		(5,638		)	1,545
Income tax expense (benefit)	—		529		(255		)	—		—			274
Net income	$	1,271	$	1,271	$	4,367		$	—	$	(5,638	)	$	1,271




	13 Weeks Ended June 30, 2015
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	253,911		$	52,325		$	—	$	—		$	306,236
Total costs and expenses	—		247,557			49,328			—		—			296,885
Operating income	—		6,354			2,997			—		—			9,351
Interest expense	—		10,492			—			—		—			10,492
Equity in net income of subsidiary	72		3,643			—			—		(3,715		)	—
(Loss) income before income taxes	72		(495		)	2,997			—		(3,715		)	(1,141		)
Income tax benefit	—		(567		)	(646		)	—		—			(1,213		)
Net income	$	72	$	72		$	3,643		$	—	$	(3,715	)	$	72



	26 Weeks Ended June 28, 2016
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	518,982		$	104,537		$	—	$	—		$	623,519
Total costs and expenses	—		495,107			97,895			—		—			593,002
Operating income	—		23,875			6,642			—		—			30,517
Interest expense	—		22,542			—			—		—			22,542
Equity in net income of subsidiary	8,930		7,332			—			—		(16,262		)	—
Income before income taxes	8,930		8,665			6,642			—		(16,262		)	7,975
Income tax benefit	—		(265		)	(690		)	—		—			(955		)
Net income	$	8,930	$	8,930		$	7,332		$	—	$	(16,262	)	$	8,930




	26 Weeks Ended June 30, 2015
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	514,478		$	100,966		$	—	$	—		$	615,444
Total costs and expenses	—		493,409			96,497			—		—			589,906
Operating income	—		21,069			4,469			—		—			25,538
Interest expense	—		20,957			—			—		—			20,957
Equity in net income of subsidiary	5,047		4,923			—			—		(9,970		)	—
Income before income taxes	5,047		5,035			4,469			—		(9,970		)	4,581
Income tax benefit	—		(12		)	(454		)	—		—			(466		)
Net income	$	5,047	$	5,047		$	4,923		$	—	$	(9,970	)	$	5,047

Condensed Consolidating Balance Sheet



	June 28, 2016
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	77,028	$	1,920		$	—	$	—		$	78,948
Facilities and equipment, net	—		154,064		52,346			—		—			206,410
Franchise rights, net	—		569,079		42,799			—		—			611,878
Goodwill	—		290,502		4,124			—		—			294,626
Investment in subsidiary	282,619		78,073		—			—		(360,692		)	—
Other assets, net	—		26,433		1,568			—		—			28,001
Total assets	$	282,619	$	1,195,179	$	102,757		$	—	$	(360,692	)	$	1,219,863
Liabilities and member’s equity:
Current liabilities	$	—	$	93,951	$	16,571		$	—	$	—		$	110,522
Long-term debt	—		576,503		—			—		—			576,503
Other liabilities and deferred items	—		54,857		9,232			—		—			64,089
Deferred income taxes	—		187,249		(1,119		)	—		—			186,130
Member’s equity	282,619		282,619		78,073			—		(360,692		)	282,619
Total liabilities and member’s equity	$	282,619	$	1,195,179	$	102,757		$	—	$	(360,692	)	$	1,219,863



	December 29, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	58,620	$	4,495	$	—	$	—		$	63,115
Facilities and equipment, net	—		155,501		47,967		—		—			203,468
Franchise rights, net	—		577,097		43,421		—		—			620,518
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	273,689		76,784		—		—		(350,473		)	—
Other assets, net	—		27,233		1,736		—		—			28,969
Total assets	$	273,689	$	1,185,737	$	101,743	$	—	$	(350,473	)	$	1,210,696
Liabilities and member’s equity:
Current liabilities	$	—	$	91,472	$	16,724	$	—	$	—		$	108,196
Long-term debt	—		577,011		—		—		—			577,011
Other liabilities and deferred items	—		55,589		6,448		—		—			62,037
Deferred income taxes	—		187,976		1,787		—		—			189,763
Member’s equity	273,689		273,689		76,784		—		(350,473		)	273,689
Total liabilities and member’s equity	$	273,689	$	1,185,737	$	101,743	$	—	$	(350,473	)	$	1,210,696

Condensed Consolidating Statements of Cash Flows



	26 Weeks Ended June 28, 2016
	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	$	—	$	38,283		$	14,060		$	—	$	—		$	52,343
Investing activities:
Capital expenditures	—		(18,948		)	(6,445		)	—		—			(25,393		)
Return of investment in subsidiary	—		6,043			—			—		(6,043		)	—
Acquisition of Wendy’s business, net of cash acquired	—		—			(7,963		)	—		—			(7,963		)
Proceeds from sale-leaseback transactions	—		828			6,327			—		—			7,155
Proceeds from sale or disposition of assets	—		887			60			—		—			947
Net cash flows used in investing activities	—		(11,190		)	(8,021		)	—		(6,043		)	(25,254		)
Financing activities:
Net payments on debt	—		(4,326		)	—			—		—			(4,326		)
Distribution to parent	—		—			(6,043		)	—		6,043			—
Net cash flows used in financing activities	—		(4,326		)	(6,043		)	—		6,043			(4,326		)
Net change in cash and cash equivalents	—		22,767			(4		)	—		—			22,763
Beginning cash and cash equivalents	—		31,918			799			—		—			32,717
Ending cash and cash equivalents	$	—	$	54,685		$	795		$	—	$	—		$	55,480



	26 Weeks Ended June 30, 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	$	—	$	37,079		$	11,970		$	—	$	—		$	49,049
Investing activities:
Capital expenditures	—		(20,214		)	(6,252		)	—		—			(26,466		)
Return of investment in subsidiary	—		5,713			—			—		(5,713		)	—
Proceeds from sale-leaseback transactions	—		1,408			—			—		—			1,408
Proceeds from sale or disposition of assets	—		499			49			—		—			548
Net cash flows used in investing activities	—		(12,594		)	(6,203		)	—		(5,713		)	(24,510		)
Financing activities:
Net payments on debt	—		(3,119		)	—			—		—			(3,119		)
Distribution to parent	—		—			(5,713		)	—		5,713			—
Net cash flows used in financing activities	—		(3,119		)	(5,713		)	—		5,713			(3,119		)
Net change in cash and cash equivalents	—		21,366			54			—		—			21,420
Beginning cash and cash equivalents	—		11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—	$	32,644		$	839		$	—	$	—		$	33,483