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(30) Guarantor/Non-Guarantor | 12 Months Ended
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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 |

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