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(30) Guarantor/Non-Guarantor
12 Months Ended
Jan. 01, 2012
Guarantor Non-Guarantor [Abstract]  
Guarantor Non-Guarantor
Guarantor/Non-Guarantor

(Wendy’s Restaurants)

Wendy’s Restaurants is the issuer of, and certain of its domestic subsidiaries have guaranteed amounts outstanding under, the Senior Notes. Each of the guaranteeing subsidiaries is a direct or indirect 100% owned subsidiary of Wendy’s Restaurants and each has fully and unconditionally guaranteed the Senior Notes on a joint and several basis.

As a result of the closing of the sale of Arby’s on July 4, 2011 as described in Note 2, Arby’s and its subsidiaries are no longer guaranteeing subsidiaries of the amounts outstanding under the Senior Notes. Accordingly, the condensed consolidating financial statements presented below have been retroactively revised to reflect Arby’s and its subsidiaries as non-guarantors for all periods presented. Information related to Arby’s has been reflected as discontinued operations in the condensed consolidating statements of operations for the period from January 3, 2011 through July 3, 2011 and the years ended January 2, 2011 and January 3, 2010. Arby’s cash flows prior to its sale (for the period from January 3, 2011 through July 3, 2011 and for the years ended January 2, 2011 and January 3, 2010) have been included in, and not separately reported from, all our cash flows.

The following are included in the presentation of our: (1) Condensed Consolidating Balance Sheets as of January 1, 2012 and January 2, 2011, (2) Condensed Consolidating Statements of Operations for the years ended January 1, 2012, January 2, 2011, and January 3, 2010, and (3) Condensed Consolidating Statements of Cash Flows for the years ended January 1, 2012, January 2, 2011, and January 3, 2010 to reflect:

(a)Wendy’s Restaurants (the “Parent”);
(b)the Senior Notes guarantor subsidiaries as a group;
(c)the Senior Notes non-guarantor subsidiaries as a group;
(d)elimination entries necessary to combine the Parent with the guarantor and non-guarantor subsidiaries; and
(e)Wendy’s Restaurants on a consolidated basis.

Substantially all of our domestic restricted subsidiaries are guarantors of the Senior Notes. Certain of our subsidiaries, including our foreign subsidiaries and national advertising funds, do not guarantee the Senior Notes.
  
For purposes of presentation of such consolidating information, investments in subsidiaries are accounted for by the Parent on the equity method. The elimination entries are principally necessary to eliminate intercompany balances and transactions.


CONDENSED CONSOLIDATING BALANCE SHEET
January 1, 2012

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
     Cash and cash equivalents
$
174,638

 
$
128,818

 
$
43,192

 
$
—

 
$
346,648

     Accounts and notes receivable
2,682

 
59,137

 
5,634

 
—

 
67,453

     Inventories
—

 
11,766

 
1,137

 
—

 
12,903

     Prepaid expenses and other current assets
5,446

 
11,732

 
1,230

 
—

 
18,408

     Deferred income tax benefit
59,737

 
34,226

 
1,000

 
—

 
94,963

     Advertising funds restricted assets
—

 
—

 
69,672

 
—

 
69,672

               Total current assets
242,503

 
245,679

 
121,865

 
—

 
610,047

Properties
12,431

 
1,120,383

 
59,382

 
—

 
1,192,196

Goodwill
—

 
828,411

 
145,133

 
(97,836
)
 
875,708

Other intangible assets
18,011

 
1,262,070

 
24,207

 
—

 
1,304,288

Investments
19,000

 
—

 
95,651

 
—

 
114,651

Deferred costs and other assets
26,446

 
40,131

 
250

 
—

 
66,827

Net investment in subsidiaries
2,253,006

 
348,931

 
—

 
(2,601,937
)
 
—

Deferred income tax benefit
29,269

 
—

 
—

 
(29,269
)
 
—

Due from affiliate
295,080

 
—

 
—

 
(295,080
)
 
—

               Total assets
$
2,895,746

 
$
3,845,605

 
$
446,488

 
$
(3,024,122
)
 
$
4,163,717

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND INVESTED EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
     Current portion of long-term debt
$
3,952

 
$
923

 
$
262

 
$
—

 
$
5,137

     Accounts payable
9,215

 
64,251

 
7,520

 
—

 
80,986

     Accrued expenses and other current liabilities
62,209

 
137,105

 
12,836

 
—

 
212,150

     Advertising funds restricted liabilities
—

 
—

 
69,672

 
—

 
69,672

               Total current liabilities
75,376

 
202,279

 
90,290

 
—

 
367,945

Long-term debt
1,017,401

 
319,643

 
3,515

 
—

 
1,340,559

Due to affiliates
—

 
308,654

 
1,794

 
(295,080
)
 
15,368

Deferred income
—

 
6,132

 
391

 
—

 
6,523

Deferred income taxes
—

 
551,579

 
15,379

 
(29,269
)
 
537,689

Other liabilities
3,305

 
84,647

 
8,017

 
—

 
95,969

Invested equity:
 
 
 
 
 
 
 
 
 
Member interest, $0.01 par value; 1,000
     shares authorized, one share issued and
     outstanding
—

 
—

 
—

 
—

 
—

Other capital
2,440,130

 
2,168,046

 
332,707

 
(2,500,753
)
 
2,440,130

(Accumulated deficit) retained earnings
(486,567
)
 
358,524

 
(6,706
)
 
(351,818
)
 
(486,567
)
Advances to The Wendy’s Company
(155,000
)
 
(155,000
)
 
—

 
155,000

 
(155,000
)
Accumulated other comprehensive income
1,101

 
1,101

 
1,101

 
(2,202
)
 
1,101

               Total invested equity
1,799,664

 
2,372,671

 
327,102

 
(2,699,773
)
 
1,799,664

               Total liabilities and invested equity
$
2,895,746

 
$
3,845,605

 
$
446,488

 
$
(3,024,122
)
 
$
4,163,717




CONDENSED CONSOLIDATING BALANCE SHEET
January 2, 2011

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
     Cash and cash equivalents
$
79,355

 
$
53,810

 
$
65,521

 
$
—

 
$
198,686

     Accounts and notes receivable
320

 
61,508

 
21,524

 
—

 
83,352

     Inventories
—

 
12,522

 
10,172

 
—

 
22,694

     Prepaid expenses and other current assets
3,900

 
12,434

 
7,698

 
—

 
24,032

     Deferred income tax benefit
17,634

 
20,926

 
6,507

 
—

 
45,067

     Advertising funds restricted assets
—

 
—

 
76,553

 
—

 
76,553

              Total current assets
101,209

 
161,200

 
187,975

 
—

 
450,384

Properties
13,748

 
1,084,546

 
443,559

 
—

 
1,541,853

Goodwill
—

 
823,539

 
65,382

 
—

 
888,921

Other intangible assets
21,453

 
1,285,615

 
51,506

 
—

 
1,358,574

Investments
—

 
—

 
102,406

 
—

 
102,406

Deferred costs and other assets
32,610

 
32,384

 
9,565

 
—

 
74,559

Net investment in subsidiaries
2,559,526

 
381,828

 
—

 
(2,941,354
)
 
—

Deferred income tax benefit
86,423

 
—

 
—

 
(86,423
)
 
—

Due from affiliate
59,618

 
—

 
—

 
(59,618
)
 
—

              Total assets
$
2,874,587

 
$
3,769,112

 
$
860,393

 
$
(3,087,395
)
 
$
4,416,697

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND INVESTED EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
     Current portion of long-term debt
$
5,228

 
$
687

 
$
11,132

 
$
—

 
$
17,047

     Accounts payable
4,624

 
52,242

 
24,282

 
—

 
81,148

     Accrued expenses and other current liabilities
38,871

 
128,089

 
77,340

 
—

 
244,300

     Advertising funds restricted liabilities
—

 
—

 
76,553

 
—

 
76,553

               Total current liabilities
48,723

 
181,018

 
189,307

 
—

 
419,048

Long-term debt
1,043,623

 
310,339

 
188,722

 
—

 
1,542,684

Due to affiliates
—

 
60,653

 
29,773

 
(59,618
)
 
30,808

Deferred income
—

 
6,291

 
5,169

 
—

 
11,460

Deferred income taxes
—

 
541,800

 
23,095

 
(86,423
)
 
478,472

Other liabilities
5,611

 
86,993

 
64,991

 
—

 
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

 
1,077,762

 
(4,322,250
)
 
2,423,459

Accumulated deficit
(499,500
)
 
(515,141
)
 
(726,097
)
 
1,241,238

 
(499,500
)
Advances to The Wendy’s Company
(155,000
)
 
(155,000
)
 
—

 
155,000

 
(155,000
)
Accumulated other comprehensive income
7,671

 
7,671

 
7,671

 
(15,342
)
 
7,671

                Total invested equity
1,776,630

 
2,582,018

 
359,336

 
(2,941,354
)
 
1,776,630

                Total liabilities and invested equity
$
2,874,587

 
$
3,769,112

 
$
860,393

 
$
(3,087,395
)
 
$
4,416,697




CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the year ended January 1, 2012



 
Guarantor
 
Non-guarantor
 

 


Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total

 
 
 
 
 
 
 
 
 
 Revenues:
 
 
 
 
 
 
 
 
 
      Sales
$
—

 
$
1,891,033

 
$
235,598

 
$
(87
)
 
$
2,126,544

      Franchise revenues
—

 
285,743

 
19,085

 
(14
)
 
304,814


—

 
2,176,776

 
254,683

 
(101
)
 
2,431,358


 
 
 
 
 
 
 
 
 
 Costs and expenses:
 
 
 
 
 
 
 
 
 
      Cost of sales
—

 
1,608,896

 
207,213

 
—

 
1,816,109

      General and administrative
—

 
248,793

 
32,798

 
—

 
281,591

      Depreciation and amortization
10,629

 
100,994

 
10,742

 
—

 
122,365

      Impairment of long-lived assets
—

 
12,346

 
537

 
—

 
12,883

      Transaction related and other costs
38,349

 
6,128

 
—

 
—

 
44,477

      Other operating expense (income), net
1,005

 
10,971

 
(7,935
)
 
—

 
4,041


49,983

 
1,988,128

 
243,355

 
—

 
2,281,466

                   Operating (loss) profit
(49,983
)
 
188,648

 
11,328

 
(101
)
 
149,892

 Interest expense
(89,999
)
 
(22,734
)
 
(510
)
 
—

 
(113,243
)
 Other income (expense), net
282

 
17,282

 
(16,621
)
 
—

 
943

 Equity in income (loss) of subsidiaries
106,218

 
(9,211
)
 
—

 
(97,007
)
 
—

(Loss) income from continuing operations
     before income taxes
(33,482
)
 
173,985

 
(5,803
)
 
(97,108
)
 
37,592

Benefit from (provision for) income taxes
55,214

 
(68,428
)
 
(3,408
)
 
—

 
(16,622
)
Income (loss) from continuing operations
21,732

 
105,557

 
(9,211
)
 
(97,108
)
 
20,970

Discontinued operations:
 
 
 
 
 
 
 
 
 
Income from discontinued operations, net
     of income taxes
—

 
—

 
661

 
101

 
762

Loss on disposal of discontinued operations, net
     of income taxes
(8,799
)
 
—

 
—

 
—

 
(8,799
)
(Loss) income from discontinued operations,
     net of income taxes
(8,799
)
 
—

 
661

 
101

 
(8,037
)
                   Net income (loss)
$
12,933

 
$
105,557

 
$
(8,550
)
 
$
(97,007
)
 
$
12,933




CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the year ended January 2, 2011

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
 
 
 Revenues:
 
 
 
 
 
 
 
 
 
      Sales
$
—

 
$
1,853,269

 
$
225,837

 
$
(25
)
 
$
2,079,081

      Franchise revenues
—

 
277,496

 
18,899

 
(37
)
 
296,358

 
—

 
2,130,765

 
244,736

 
(62
)
 
2,375,439

 
 
 
 
 
 
 
 
 
 
 Costs and expenses:
 
 
 
 
 
 
 
 
 
      Cost of sales
—

 
1,562,141

 
194,813

 
—

 
1,756,954

      General and administrative
—

 
258,289

 
45,035

 
—

 
303,324

      Depreciation and amortization
11,920

 
102,148

 
10,916

 
—

 
124,984

      Impairment of long-lived assets
—

 
22,458

 
3,868

 
—

 
26,326

      Other operating expense (income), net
—

 
10,887

 
(7,393
)
 
—

 
3,494

 
11,920

 
1,955,923

 
247,239

 
—

 
2,215,082

                   Operating (loss) profit
(11,920
)
 
174,842

 
(2,503
)
 
(62
)
 
160,357

Interest expense
(78,737
)
 
(29,044
)
 
(9,568
)
 
—

 
(117,349
)
Loss on early extinguishment of debt
—

 
(20,430
)
 
(5,767
)
 
—

 
(26,197
)
Other income (expense), net
158

 
16,051

 
(14,892
)
 
—

 
1,317

Equity in income (loss) of subsidiaries
19,446

 
(50,152
)
 
—

 
30,706

 
—

(Loss) income from continuing operations
     before income taxes
(71,053
)
 
91,267

 
(32,730
)
 
30,644

 
18,128

Benefit from (provision for) income taxes
68,415

 
(49,323
)
 
(17,422
)
 
—

 
1,670

(Loss) income from continuing operations
(2,638
)
 
41,944

 
(50,152
)
 
30,644

 
19,798

Discontinued operations:
 
 
 
 
 
 
 
 
 
Loss from discontinued operations, net
     of income taxes
—

 
—

 
(22,492
)
 
56

 
(22,436
)
                   Net (loss) income
$
(2,638
)
 
$
41,944

 
$
(72,644
)
 
$
30,700

 
$
(2,638
)



CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the year ended January 3, 2010

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
 
 
 
 
 
 
 
 
 
 
 Revenues:
 
 
 
 
 
 
 
 
 
      Sales
$
—


$
1,918,781


$
215,461


$
—


$
2,134,242

      Franchise revenues
—


284,955


17,898


—


302,853

 
—


2,203,736


233,359


—


2,437,095

 









 Costs and expenses:









      Cost of sales
—


1,619,733


192,319


—


1,812,052

      General and administrative
—


290,755


52,366


—


343,121

      Depreciation and amortization
4,270


117,824


10,224


—


132,318

      Impairment of long-lived assets
—


23,443


—


—


23,443

      Merger restructuring
4,283


3,402


403


—


8,088

      Other operating expense (income), net
—


10,201


(7,748
)

—


2,453

 
8,553


2,065,358


247,564


—


2,321,475

                   Operating (loss) profit
(8,553
)

138,378


(14,205
)

—


115,620

Interest expense
(32,064
)

(42,323
)

(31,175
)

—


(105,562
)
Other income (expense), net
24


10,411


(15,035
)

—


(4,600
)
Equity in loss of subsidiaries
(52,890
)

(125,862
)

—


178,752


—

(Loss) income from continuing operations
     before income taxes
(93,483
)

(19,396
)

(60,415
)

178,752


5,458

Benefit from (provision for) income taxes
103,132


(31,632
)

(65,447
)

—


6,053

Income (loss) from continuing operations
9,649


(51,028
)

(125,862
)

178,752


11,511

Discontinued operations:
 
 
 
 
 
 
 
 
 
Loss from discontinued operations, net
     of income taxes
—


—


(1,862
)

—


(1,862
)
                   Net income (loss)
$
9,649


$
(51,028
)

$
(127,724
)

$
178,752


$
9,649



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended January 1, 2012

 

 
Guarantor
 
Non-guarantor
 

 

 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
Cash flows from operating activities:

 

 

 

 

Net income (loss)
$
12,933

 
$
105,557

 
$
(8,550
)
 
$
(97,007
)
 
$
12,933

Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:

 

 

 

 

Equity in (income) loss from operations of subsidiaries
(106,218
)
 
9,211

 
—

 
97,007

 
—

Depreciation and amortization
10,826

 
100,994

 
32,855

 
—

 
144,675

Share-based compensation provision
9,301

 
6,694

 
672

 
—

 
16,667

Distributions received from joint venture
—

 
—

 
14,942

 
—

 
14,942

Impairment of long-lived assets
—

 
12,346

 
2,095

 
—

 
14,441

Deferred income tax provision (benefit), net
11,307

 
852

 
(441
)
 
—

 
11,718

Loss on disposal of Arby’s
8,799

 
—

 
—

 
—

 
8,799

Accretion of long-term debt
2,102

 
5,854

 
164

 
—

 
8,120

Non-cash rent expense (credit)
—

 
7,892

 
(341
)
 
—

 
7,551

Net (recognition) receipt of deferred vendor incentives
—

 
(17
)
 
7,087

 
—

 
7,070

Write-off and amortization of deferred financing costs
6,204

 
—

 
—

 
—

 
6,204

Tax sharing (receivable from) payable to affiliate, net
(66,808
)
 
69,245

 
—

 
—

 
2,437

Provision for doubtful accounts
—

 
113

 
2,321

 
—

 
2,434

Tax sharing receipt from (payment to) affiliate, net
52,000

 
(52,000
)
 
—

 
—

 
—

Other operating transactions with affiliates
78,148

 
(28,885
)
 
(55,294
)
 
—

 
(6,031
)
Equity in earnings in joint ventures, net
—

 
—

 
(9,465
)
 
—

 
(9,465
)
Tax sharing payment to The Wendy’s Company
(13,078
)
 
—

 
—

 
—

 
(13,078
)
Other, net
(1,794
)
 
3,806

 
(1,678
)
 
—

 
334

Changes in operating assets and liabilities:

 

 

 

 

Accounts and notes receivable
22

 
1,152

 
(4,074
)
 
—

 
(2,900
)
Inventories
(6
)
 
856

 
(1,367
)
 
—

 
(517
)
Prepaid expenses and other current assets
(2,715
)
 
(1,953
)
 
(3,193
)
 
—

 
(7,861
)
Accounts payable
3,554

 
3,069

 
4,463

 
—

 
11,086

Accrued expenses and other current liabilities
15,802

 
1,003

 
(1,259
)
 
—

 
15,546

Net cash provided by (used in) operating
    activities
20,379

 
245,789

 
(21,063
)
 
—

 
245,105

Cash flows from investing activities:

 

 

 

 

Capital expenditures
(9,742
)
 
(119,827
)
 
(17,194
)
 
—

 
(146,763
)
Restaurant acquisitions
—

 
(11,210
)
 
—

 
—

 
(11,210
)
Franchise incentive loans
—

 
(4,003
)
 
—

 
—

 
(4,003
)
Investment in joint venture
—

 
(1,183
)
 
—

 
—

 
(1,183
)
Proceeds from sale of Arby’s, net of Arby’s cash
105,001

 
—

 
(7,076
)
 
—

 
97,925

Proceeds from other dispositions
11

 
6,113

 
836

 
—

 
6,960

Other, net
—

 
—

 
(265
)
 
—

 
(265
)
Net cash provided by (used in) investing
     activities
95,270

 
(130,110
)
 
(23,699
)
 
—

 
(58,539
)
Cash flows from financing activities:

 

 

 

 

Repayments of long-term debt
(30,309
)
 
(671
)
 
(6,354
)
 
—

 
(37,334
)
Capital contribution from Parent
(30,000
)
 
—

 
30,000

 
—

 
—

Dividend paid to Parent
40,000


(40,000
)

—


—


—

Deferred financing costs
(57
)
 
—

 
—

 
—

 
(57
)
Net cash (used in) provided by financing
     activities
(20,366
)
 
(40,671
)
 
23,646

 
—

 
(37,391
)
Net cash provided by (used in) operations before effect of
     exchange rate changes on cash
95,283

 
75,008

 
(21,116
)
 
—

 
149,175

Effect of exchange rate changes on cash
—

 
—

 
(1,213
)
 
—

 
(1,213
)
Net increase (decrease) in cash and cash equivalents
95,283

 
75,008

 
(22,329
)
 
—

 
147,962

Cash and cash equivalents at beginning of period
79,355

 
53,810

 
65,521

 
—

 
198,686

Cash and cash equivalents at end of period
$
174,638

 
$
128,818

 
$
43,192

 
$
—

 
$
346,648


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended January 2, 2011

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net (loss) income
$
(2,638
)
 
$
41,944

 
$
(72,644
)
 
$
30,700

 
$
(2,638
)
Adjustments to reconcile net (loss) income to
     net cash (used in) provided by operating activities:
 
 
 
 
 
 
 
 
 
Equity in (income) loss from operations of subsidiaries
(19,446
)
 
50,152

 
—

 
(30,706
)
 
—

Depreciation and amortization
11,920

 
102,148

 
66,242

 
—

 
180,310

Impairment of long-lived assets
—

 
22,458

 
47,019

 
—

 
69,477

Accretion of long-term debt
1,705

 
13,022

 
289

 
—

 
15,016

Distributions received from joint venture
—

 
—

 
13,980

 
—

 
13,980

Share-based compensation provision
3,951

 
5,624

 
3,215

 
—

 
12,790

Write-off and amortization of deferred financing costs
4,518

 
—

 
7,245

 
—

 
11,763

Provision for doubtful accounts
—

 
1,703

 
7,991

 
—

 
9,694

Non-cash rent expense (credit)
—

 
9,375

 
(41
)
 
—

 
9,334

Tax sharing (receivable from) payable to affiliate, net
(49,736
)
 
50,788

 
—

 
—

 
1,052

Tax sharing receipt from (payment to) affiliate, net
56,000

 
(56,000
)
 
—

 
—

 
—

Net (recognition) receipt of deferred vendor incentives
—

 
(1,495
)
 
908

 
—

 
(587
)
Other operating transactions with affiliates
(20,370
)
 
(55,099
)
 
67,437

 
—

 
(8,032
)
Equity in earnings in joint venture
—

 
—

 
(9,459
)
 
—

 
(9,459
)
Deferred income tax benefit, net
(18,351
)
 
(5,308
)
 
(2,093
)
 
—

 
(25,752
)
Other, net
2,406

 
4,792

 
(7,708
)
 
6

 
(504
)
Changes in operating assets and liabilities net:
 
 
 
 
 
 
 
 

Accounts and notes receivable
(61
)
 
4,724

 
(8,856
)
 
—

 
(4,193
)
Inventories
—

 
(503
)
 
897

 
—

 
394

Prepaid expenses and other current assets
1,017

 
(2,148
)
 
1,886

 
—

 
755

Accounts payable
2,341

 
(9,270
)
 
(7,255
)
 
—

 
(14,184
)
Accrued expenses and other current liabilities
(3,808
)
 
(30,727
)
 
6,573

 
—

 
(27,962
)
Net cash (used in) provided by operating
     activities
(30,552
)
 
146,180

 
115,626

 
—

 
231,254

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(17,075
)
 
(66,817
)
 
(64,077
)
 
—

 
(147,969
)
Cost of acquisitions, less cash acquired
—

 
(3,123
)
 
—

 
—

 
(3,123
)
Proceeds from dispositions
—

 
3,405

 
2,255

 
—

 
5,660

Other, net
—

 
—

 
1,263

 
—

 
1,263

Net cash used in investing activities
(17,075
)
 
(66,535
)
 
(60,559
)
 
—

 
(144,169
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
497,500

 
—

 
161

 
—

 
497,661

Repayments of long-term debt
(2,716
)
 
(200,708
)
 
(263,037
)
 
—

 
(466,461
)
Dividends paid to The Wendy’s Company
(443,700
)
 
—

 
—

 
—

 
(443,700
)
Deferred financing costs
(16,353
)
 
—

 
—

 
—

 
(16,353
)
Dividends paid to Parent
375,000

 
(361,000
)
 
(14,000
)
 
—

 
—

Capital contributions from Parent
(520,335
)
 
260,766

 
259,569

 
—

 
—

Redemption of preferred stock
—

 
19,877

 
(19,877
)
 
—

 
—

Other, net
(21
)
 
—

 
—

 
—

 
(21
)
Net cash used in financing activities
(110,625
)
 
(281,065
)
 
(37,184
)
 
—

 
(428,874
)
Net cash (used in) provided by operations before effect of
     exchange rate changes on cash
(158,252
)
 
(201,420
)
 
17,883

 
—

 
(341,789
)
Effect of exchange rate changes on cash
—

 
—

 
1,611

 
—

 
1,611

Net (decrease) increase in cash and cash equivalents
(158,252
)
 
(201,420
)
 
19,494

 
—

 
(340,178
)
Cash and cash equivalents at beginning of period
237,607

 
255,230

 
46,027

 
—

 
538,864

Cash and cash equivalents at end of period
$
79,355

 
$
53,810

 
$
65,521

 
$
—

 
$
198,686



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the year ended January 3, 2010

 
 
 
Guarantor
 
Non-guarantor
 
 
 
 
 
Parent
 
Subsidiaries
 
Subsidiaries
 
Eliminations
 
Total
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
9,649

 
$
(51,028
)
 
$
(127,724
)
 
$
178,752

 
$
9,649

Adjustments to reconcile net income (loss) to
     net cash (used in) provided by operating activities:
 
 
 
 
 
 
 
 
 
Equity in loss from operations of subsidiaries
52,890

 
125,862

 
—

 
(178,752
)
 
—

Depreciation and amortization
4,270

 
117,824

 
66,412

 
—

 
188,506

Impairment of long-lived assets
—

 
23,443

 
56,513

 
—

 
79,956

Tax sharing (receivable from) payable to affiliate, net
(9,648
)
 
53,923

 
(3,862
)
 
—

 
40,413

Write-off and amortization of deferred financing costs
1,632

 
4,600

 
9,564

 
—

 
15,796

Distributions received from joint venture
—

 
—

 
14,583

 
—

 
14,583

Other operating transactions with affiliates
(33,506
)
 
15,848

 
31,772

 
—

 
14,114

Share-based compensation provision
3,550

 
6,648

 
3,372

 
—

 
13,570

Non-cash rent expense
—

 
10,685

 
1,933

 
—

 
12,618

Accretion of long-term debt
718

 
9,395

 
287

 
—

 
10,400

Provision for doubtful accounts
—

 
868

 
7,301

 
—

 
8,169

Net receipt (recognition) of deferred vendor incentives
—

 
524

 
(1,315
)
 
—

 
(791
)
Equity in earnings in joint venture
—

 
—

 
(8,499
)
 
—

 
(8,499
)
Tax sharing payment to affiliate, net
—

 
(10,417
)
 
—

 
—

 
(10,417
)
Deferred income tax (benefit) provision, net
(94,686
)
 
(48,238
)
 
74,383

 
—

 
(68,541
)
Other, net
(559
)
 
10,110

 
(3,998
)
 
—

 
5,553

Changes in operating assets and liabilities net:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable
(29
)
 
2,787

 
(10,437
)
 
—

 
(7,679
)
Inventories
—

 
517

 
1,362

 
—

 
1,879

Prepaid expenses and other current assets
(4,918
)
 
5,597

 
442

 
—

 
1,121

Accounts payable
1,794

 
(43,205
)
 
(11,149
)
 
—

 
(52,560
)
Accrued expenses and other current liabilities
41,301

 
41,730

 
(29,241
)
 
—

 
53,790

Net cash (used in) provided by operating
     activities
(27,542
)
 
277,473

 
71,699

 
—

 
321,630

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(17,113
)
 
(50,812
)
 
(33,989
)
 
—

 
(101,914
)
Cost of acquisitions, less cash acquired
—

 
(664
)
 
(1,693
)
 
—

 
(2,357
)
Proceeds from dispositions
—

 
9,785

 
1,097

 
—

 
10,882

Other, net
—

 
(456
)
 
648

 
—

 
192

Net cash used in investing activities
(17,113
)
 
(42,147
)
 
(33,937
)
 
—

 
(93,197
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
551,061

 
26,550

 
29,896

 
—

 
607,507

Repayments of long-term debt
(52
)
 
(39,107
)
 
(170,323
)
 
—

 
(209,482
)
Dividends paid to The Wendy’s Company
(115,000
)
 
—

 
—

 
—

 
(115,000
)
Capital contributions from Parent
(132,500
)
 
—

 
132,500

 
—

 
—

Other, net
(21,247
)
 
(3,951
)
 
(13,201
)
 
—

 
(38,399
)
Net cash provided by (used in) financing
     activities
282,262

 
(16,508
)
 
(21,128
)
 
—

 
244,626

Net cash provided by operations before effect of
     exchange rate changes on cash
237,607

 
218,818

 
16,634

 
—

 
473,059

Effect of exchange rate changes on cash
—

 
—

 
2,725

 
—

 
2,725

Net increase in cash and cash equivalents
237,607

 
218,818

 
19,359

 
—

 
475,784

Cash and cash equivalents at beginning of period
—

 
36,412

 
26,668

 
—

 
63,080

Cash and cash equivalents at end of period
$
237,607

 
$
255,230

 
$
46,027

 
$
—

 
$
538,864