Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 27, 2016

Condensed Consolidating Statements of Operations




	13 Weeks Ended September 27, 2016
	Parent			Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Total sales	$	—		$	241,258		$	63,822		$	—	$	—	$	305,080
Total costs and expenses	—			240,366			60,170			—		—		300,536
Operating income	—			892			3,652			—		—		4,544
Interest expense	—			11,174			—			—		—		11,174
Equity in net (loss) income of subsidiary	(4,493		)	(614		)	—			—		5,107		—
(Loss) income before income taxes	(4,493		)	(10,896		)	3,652			—		5,107		(6,630		)
Income tax (benefit) expense	—			(6,403		)	4,266			—		—		(2,137		)
Net (loss) income	$	(4,493	)	$	(4,493	)	$	(614	)	$	—	$	5,107	$	(4,493	)




	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) income 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) income	$	(2,116	)	$	(2,116	)	$	(1,440	)	$	—	$	3,556	$	(2,116	)



	39 Weeks Ended September 27, 2016
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	760,240		$	168,359	$	—	$	—		$	928,599
Total costs and expenses	—		735,473			158,065		—		—			893,538
Operating income	—		24,767			10,294		—		—			35,061
Interest expense	—		33,716			—		—		—			33,716
Equity in net income of subsidiary	4,437		6,718			—		—		(11,155		)	—
Income (loss) before income taxes	4,437		(2,231		)	10,294		—		(11,155		)	1,345
Income tax (benefit) expense	—		(6,668		)	3,576		—		—			(3,092		)
Net income	$	4,437	$	4,437		$	6,718	$	—	$	(11,155	)	$	4,437



	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

Condensed Consolidating Balance Sheet



	September 27, 2016
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	37,277	$	4,233	$	—	$	—		$	41,510
Facilities and equipment, net	—		156,226		74,373		—		—			230,599
Franchise rights, net	—		565,225		57,967		—		—			623,192
Goodwill	—		290,502		5,624		—		—			296,126
Investment in subsidiary	280,565		113,546		—		—		(394,111		)	—
Other assets, net	—		27,008		2,189		—		—			29,197
Total assets	$	280,565	$	1,189,784	$	144,386	$	—	$	(394,111	)	$	1,220,624
Liabilities and member’s equity:
Current liabilities	$	—	$	98,395	$	17,941	$	—	$	—		$	116,336
Long-term debt	—		576,249		—		—		—			576,249
Other liabilities and deferred items	—		54,507		9,671		—		—			64,178
Deferred income taxes	—		180,068		3,228		—		—			183,296
Member’s equity	280,565		280,565		113,546		—		(394,111		)	280,565
Total liabilities and member’s equity	$	280,565	$	1,189,784	$	144,386	$	—	$	(394,111	)	$	1,220,624



	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



	39 Weeks Ended September 27, 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	$	—	$	47,822		$	21,529		$	—	$	—		$	69,351
Investing activities:
Capital expenditures	—		(32,040		)	(13,273		)	—		—			(45,313		)
Investment in subsidiary			(44,276		)						44,276			—
Return of investment in subsidiary	—		14,232			—			—		(14,232		)	—
Acquisition of Wendy’s business, net of cash acquired	—		—			(44,783		)	—		—			(44,783		)
Proceeds from sale-leaseback transactions	—		828			6,327			—		—			7,155
Proceeds from sale or disposition of assets	—		897			355			—		—			1,252
Net cash flows used in investing activities	—		(60,359		)	(51,374		)	—		30,044			(81,689		)
Financing activities:
Net payments on debt	—		(4,326		)	—			—		—			(4,326		)
Investment from parent						44,276					(44,276		)	—
Distribution to parent			—			(14,232		)	—		14,232			—
Net cash flows (used in) provided by financing activities	—		(4,326		)	30,044			—		(30,044		)	(4,326		)
Net change in cash and cash equivalents	—		(16,863		)	199			—		—			(16,664		)
Beginning cash and cash equivalents	—		31,918			799			—		—			32,717
Ending cash and cash equivalents	$	—	$	15,055		$	998		$	—	$	—		$	16,053



	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 subsidiary	—		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