(16) Guarantor/Non-Guarantor (Tables)

6 Months Ended

Jul. 03, 2011

Guarantor Non-Guarantor [Abstract]

Schedules of Condensed Consolidated Financial Information

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the six months ended July 3, 2011

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Revenues:
Sales	$	—		$	937,552		$	115,971		$	—		$	1,053,523
Franchise revenues	—			142,023			9,378			—			151,401
	—			1,079,575			125,349			—			1,204,924
Costs and expenses:
Cost of sales	—			800,591			103,078			—			903,669
General and administrative	—			138,012			6,629			—			144,641
Retention program and other transaction related costs	4,225			1,746			—			—			5,971
Depreciation and amortization	5,027			49,366			5,239			—			59,632
Impairment of long-lived assets	—			7,890			372			—			8,262
Other operating expense (income), net	—			5,545			(4,325		)	—			1,220
	9,252			1,003,150			110,993			—			1,123,395
Operating (loss) profit	(9,252		)	76,425			14,356			—			81,529
Interest expense	(45,524		)	(11,320		)	(239		)	—			(57,083		)
Other income (expense), net	—			8,031			(7,629		)	—			402
Equity in income of subsidiaries	47,062			5,551			—			(52,613		)	—
(Loss) income from continuing operations  before income taxes	(7,714		)	78,687			6,488			(52,613		)	24,848
Benefit from (provision for) income taxes	25,408			(33,324		)	(1,797		)	—			(9,713		)
Income from continuing operations	17,694			45,363			4,691			(52,613		)	15,135
Discontinued operations:
Income from discontinued operations, net      of income taxes	—			1,699			860			—			2,559
Loss on disposal of discontinued operations, net      of income tax benefit	(3,780		)	—			—			—			(3,780		)
Net (loss) income from discontinued       operations	(3,780		)	1,699			860			—			(1,221		)
Net income	$	13,914		$	47,062		$	5,551		$	(52,613	)	$	13,914

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	36,255		$	152,938		$	33,560	$	—		$	222,753
Accounts and notes receivable	3,677			61,896			4,491		(12		)	70,052
Inventories	—			11,963			1,201		—			13,164
Prepaid expenses and other current assets	4,720			26,479			1,590		—			32,789
Deferred income tax benefit	22,127			20,926			223		—			43,276
Advertising funds restricted assets	—			—			74,472		—			74,472
Current assets of discontinued operations	—			65,246			1,079		—			66,325
Total current assets	66,779			339,448			116,616		(12		)	522,831
Properties	11,477			1,070,660			59,430		—			1,141,567
Goodwill	—			827,228			50,415		—			877,643
Other intangible assets	18,973			1,272,425			26,844		—			1,318,242
Investments	—			—			106,195		—			106,195
Deferred costs and other assets	29,222			36,754			269		—			66,245
Noncurrent assets of discontinued operations	—			396,214			22,641		—			418,855
Net investment in subsidiaries	2,624,049			260,047			—		(2,884,096		)	—
Deferred income tax benefit	83,496			—			—		(83,496		)	—
Due from affiliate	51,593			—			—		(51,593		)	—
Total assets	$	2,885,589		$	4,202,776		$	382,410	$	(3,019,197	)	$	4,451,578
LIABILITIES AND INVESTED EQUITY
Current liabilities:
Current portion of long-term debt	$	5,692		$	909		$	280	$	—		$	6,881
Accounts payable	4,884			49,786			6,404		—			61,074
Accrued expenses and other current liabilities	47,757			139,103			7,417		—			194,277
Advertising funds restricted liabilities	—			—			74,472		—			74,472
Current liabilities of discontinued operations	—			110,636			288		(12		)	110,912
Total current liabilities	58,333			300,434			88,861		(12		)	447,616
Long-term debt	1,017,614			314,572			3,869		—			1,336,055
Due to affiliates	—			75,012			1,184		(51,593		)	24,603
Deferred income	—			18,378			432		—			18,810
Deferred income taxes	—			541,917			17,608		(83,496		)	476,029
Other liabilities	4,719			83,993			9,119		—			97,831
Noncurrent liabilities of discontinued operations	—			244,421			1,290		—			245,711
Invested equity:
Member interest, $0.01 par value; 1,000 shares authorized, one share issued and outstanding	—			—			—		—			—
Other capital	2,429,621			3,253,732			199,014		(3,452,746		)	2,429,621
(Accumulated deficit) retained earnings	(485,586		)	(490,571		)	45,145		445,426			(485,586		)
Advances to The Wendy’s Company	(155,000		)	(155,000		)	—		155,000			(155,000		)
Accumulated other comprehensive income	15,888			15,888			15,888		(31,776		)	15,888
Total invested equity	1,804,923			2,624,049			260,047		(2,884,096		)	1,804,923
Total liabilities and invested equity	$	2,885,589		$	4,202,776		$	382,410	$	(3,019,197	)	$	4,451,578

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended July 4, 2010

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income	$	6,815		$	15,980		$	6,799		$	(22,779	)	$	6,815
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Equity in income from operations of subsidiaries	(15,980		)	(6,799		)	—			22,779			—
Depreciation and amortization	6,225			79,038			5,075			—			90,338
Net receipt of deferred vendor incentives	—			19,676			—			—			19,676
Impairment of long-lived assets	—			14,015			—			—			14,015
Accretion of long-term debt	734			10,281			—			—			11,015
Write-off and amortization of deferred financing costs	1,591			7,245			—			—			8,836
Share-based compensation provision	1,796			4,431			—			—			6,227
Distributions received from joint venture	—			—			5,793			—			5,793
Non-cash rent expense (credit)	—			5,096			(151		)	—			4,945
Provision for (recovery of) doubtful accounts	—			3,788			(212		)	—			3,576
Tax sharing receipt from (payment to) affiliate, net	32,000			(32,000		)	—			—			—
Tax sharing (receivable from) payable to affiliate, net	(25,735		)	26,715			—			—			980
Equity in earnings in joint venture	—			—			(4,480		)	—			(4,480		)
Deferred income tax benefit, net	—			(3,433		)	—			—			(3,433		)
Other operating transactions with affiliates	(37,830		)	36,476			(151		)	—			(1,505		)
Other, net	2,315			(529		)	(1,715		)	—			71
Changes in operating assets and liabilities net:													—
Accounts and notes receivable	(41		)	(6,793		)	67			—			(6,767		)
Inventories	—			552			64			—			616
Prepaid expenses and other current assets	(416		)	(6,505		)	(880		)	—			(7,801		)
Accounts payable	(229		)	(11,445		)	(1,262		)	—			(12,936		)
Accrued expenses and other current liabilities	(8,869		)	(14,406		)	(4,262		)	—			(27,537		)
Net cash (used in) provided by operating activities	(37,624		)	141,383			4,685			—			108,444
Cash flows from investing activities:
Capital expenditures	(7,918		)	(41,876		)	(2,936		)	—			(52,730		)
Proceeds from dispositions	—			4,111			—			—			4,111
Other, net	—			50			826			—			876
Net cash used in investing activities	(7,918		)	(37,715		)	(2,110		)	—			(47,743		)
Cash flows from financing activities:
Proceeds from long-term debt	497,500			161			—			—			497,661
Repayments of long-term debt	(107		)	(458,370		)	(99		)	—			(458,576		)
Deferred financing costs	(14,375		)	—			—			—			(14,375		)
Capital contributions from Parent	(474,569		)	474,569			—			—			—
Dividends paid to The Wendy’s Company	(148,700		)	(295,000		)	—			—			(443,700		)
Net cash used in financing activities	(140,251		)	(278,640		)	(99		)	—			(418,990		)
Net cash (used in) provided by operations before effect of exchange rate changes on cash	(185,793		)	(174,972		)	2,476			—			(358,289		)
Effect of exchange rate changes on cash	—			—			(262		)	—			(262		)
Net (decrease) increase in cash and cash equivalents	(185,793		)	(174,972		)	2,214			—			(358,551		)
Cash and cash equivalents at beginning of period	237,607			268,762			32,495			—			538,864
Cash and cash equivalents at end of period	$	51,814		$	93,790		$	34,709		$	—		$	180,313

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Revenues:
Sales	$	—		$	482,024		$	62,213		$	—		$	544,237
Franchise revenues	—			73,265			4,957			—			78,222
	—			555,289			67,170			—			622,459
Costs and expenses:
Cost of sales	—			410,566			54,232			—			464,798
General and administrative	—			69,520			3,182			—			72,702
Retention program and other transaction     related costs	2,946			1,746			—			—			4,692
Depreciation and amortization	2,439			24,769			2,575			—			29,783
Impairment of long-lived assets	—			347			18			—			365
Other operating expense (income), net	—			2,871			(2,393		)	—			478
	5,385			509,819			57,614			—			572,818
Operating (loss) profit	(5,385		)	45,470			9,556			—			49,641
Interest expense	(22,188		)	(5,557		)	(123		)	—			(27,868		)
Other income (expense), net	—			4,233			(4,044		)	—			189
Equity in income of subsidiaries	33,676			4,356			—			(38,032		)	—
Income from continuing operations      before income taxes	6,103			48,502			5,389			(38,032		)	21,962
Benefit from (provision for) income taxes	10,566			(18,045		)	(1,486		)	—			(8,965		)
Income from continuing operations	16,669			30,457			3,903			(38,032		)	12,997
Discontinued operations:
Income from discontinued operations, net      of income taxes	—			3,219			453			—			3,672
Loss on disposal of discontinued operations, net      of income tax benefit	(3,780		)	—			—			—			(3,780		)
Net (loss) income from discontinued       operations	(3,780		)	3,219			453			—			(108		)
Net income	$	12,889		$	33,676		$	4,356		$	(38,032	)	$	12,889

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the six months ended July 3, 2011

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating activities:
Net income	$	13,914		$	47,062		$	5,551		$	(52,613	)	$	13,914
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income from operations of subsidiaries	(47,062		)	(5,551		)	—			52,613			—
Depreciation and amortization	5,027			71,473			5,245			—			81,745
Net receipt of deferred vendor incentives	—			19,764			—			—			19,764
Impairment of long-lived assets	—			9,448			372			—			9,820
Tax sharing (receivable from) payable to affiliate, net	(26,857		)	33,572			—			—			6,715
Distributions received from joint venture	—			—			6,501			—			6,501
Share-based compensation provision	2,606			3,556			—			—			6,162
Accretion of long-term debt	1,087			3,076			—			—			4,163
Non-cash rent expense (credit)	—			4,265			(151		)	—			4,114
Write-off and amortization of deferred financing costs	3,503			—			—			—			3,503
Provision for (recovery of) doubtful accounts	—			1,659			(91		)	—			1,568
Tax sharing receipt from (payment to) affiliate, net	29,000			(29,000		)	—			—			—
Deferred income tax (benefit) provision, net	(1,121		)	1,003			—			—			(118		)
Other operating transactions with affiliates	51,211			(50,388		)	(1,920		)	—			(1,097		)
Equity in earnings in joint ventures, net	—						(5,100		)	—			(5,100		)
Tax sharing payment to The Wendy's Company	(13,078		)	—			—			—			(13,078		)
Other, net	(15		)	(295		)	(1,042		)	—			(1,352		)
Changes in operating assets and liabilities:
Accounts and notes receivable	22			(4,516		)	(1,115		)	—			(5,609		)
Inventories	—			(731		)	(19		)	—			(750		)
Prepaid expenses and other current assets	(977		)	(10,387		)	(862		)	—			(12,226		)
Accounts payable	1,343			10,930			1,875			—			14,148
Accrued expenses and other current liabilities	1,131			(5,799		)	(2,737		)	—			(7,405		)
Net cash provided by operating activities	19,734			99,141			6,507			—			125,382
Cash flows from investing activities:
Capital expenditures	(5,437		)	(47,862		)	(2,667		)	—			(55,966		)
Business acquisitions	—			(6,613		)	—			—			(6,613		)
Investment in international joint venture	—			—			(1,183		)	—			(1,183		)
Proceeds from dispositions	—			2,565			—			—			2,565
Other, net	—			(208		)	(17		)	—			(225		)
Net cash used in investing activities	(5,437		)	(52,118		)	(3,867		)	—			(61,422		)
Cash flows from financing activities:
Repayments of long-term debt	(27,361		)	(6,539		)	(81		)	—			(33,981		)
Capital contribution from Parent	(30,000		)	30,000			—			—			—
Deferred financing costs	(36		)	—			—			—			(36		)
Net cash (used in) provided by financing activities	(57,397		)	23,461			(81		)	—			(34,017		)
Net cash (used in) provided by operations before effect of exchange rate changes on cash	(43,100		)	70,484			2,559			—			29,943
Effect of exchange rate changes on cash	—			—			1,200			—			1,200
Net (decrease) increase in cash and cash equivalents	(43,100		)	70,484			3,759			—			31,143
Cash and cash equivalents at beginning of period	79,355			88,936			30,395			—			198,686
Cash and cash equivalents at end of period	$	36,255		$	159,420		$	34,154		$	—		$	229,829

				Guarantor			Non-guarantor
	Parent			Subsidiaries			Subsidiaries		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	79,355		$	88,936		$	30,395	$	—		$	198,686
Accounts and notes receivable	320			79,404			3,628		—			83,352
Inventories	—			21,558			1,136		—			22,694
Prepaid expenses and other current assets	3,900			19,446			686		—			24,032
Deferred income tax benefit	17,634			27,218			215		—			45,067
Advertising funds restricted assets	—			—			76,553		—			76,553
Total current assets	101,209			236,562			112,613		—			450,384
Properties	13,748			1,466,769			61,336		—			1,541,853
Goodwill	—			841,156			47,765		—			888,921
Other intangible assets	21,453			1,310,092			27,029		—			1,358,574
Investments	—			—			102,406		—			102,406
Deferred costs and other assets	32,610			41,274			675		—			74,559
Net investment in subsidiaries	2,559,526			246,578			—		(2,806,104		)	—
Deferred income tax benefit	86,423			—			97		(86,520		)	—
Due from affiliate	59,618			—			17,893		(77,511		)	—
Total assets	$	2,874,587		$	4,142,431		$	369,814	$	(2,970,135	)	$	4,416,697
LIABILITIES AND INVESTED EQUITY
Current liabilities:
Current portion of long-term debt	$	5,228		$	11,587		$	232	$	—		$	17,047
Accounts payable	4,624			70,901			5,623		—			81,148
Accrued expenses and other current liabilities	38,871			195,282			10,147		—			244,300
Advertising funds restricted liabilities	—			—			76,553		—			76,553
Total current liabilities	48,723			277,770			92,555		—			419,048
Long-term debt	1,043,623			495,505			3,556		—			1,542,684
Due to affiliates	—			108,319			—		(77,511		)	30,808
Deferred income	—			10,888			572		—			11,460
Deferred income taxes	—			548,088			16,904		(86,520		)	478,472
Other liabilities	5,611			142,335			9,649		—			157,595
Invested equity:
Member interest, $0.01 par value; 1,000 shares authorized, one share issued and outstanding	—			—			—		—			—
Other capital	2,423,459			3,244,488			199,014		(3,443,502		)	2,423,459
(Accumulated deficit) retained earnings	(499,500		)	(537,633		)	39,594		498,039			(499,500		)
Advances to The Wendy’s Company	(155,000		)	(155,000		)	—		155,000			(155,000		)
Accumulated other comprehensive income	7,671			7,671			7,970		(15,641		)	7,671
Total invested equity	1,776,630			2,559,526			246,578		(2,806,104		)	1,776,630
Total liabilities and invested equity	$	2,874,587		$	4,142,431		$	369,814	$	(2,970,135	)	$	4,416,697