Investing and Financing Activities of Wendy's

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During the year of 2012, cash used for investing activities of Wendy’s totaled $189 million, increased $131 million from 2011. The two largest investing activities appeared in Wendy’s statement of cash flow are capital expenditures and acquisitions. Cash capital expenditures of Wendy’s in 2012 totaling $197.6 million, including $71.9 million for reimaged and new Image Activation restaurants, $13.5 million for new restaurants, $28.0 million for point-of-sale equipment, $23.2 million for the construction of a new building at its corporate headquarters and $61.0 million for various capital projects. In 2012, Wendy’s acquired 56 franchised restaurants. The purchase price was $38.1 million in cash. Wendy’s also agreed to lease the real estate, buildings and improvements related to some of the acquired restaurants which were considered part of the purchase transaction. Wendy’s did not incur any material acquisition-related costs. In addition, during the year ended December 30, 2012, Wendy’s acquired two other franchised restaurants along with certain other equipment and franchise rights. The total net cash consideration for this acquisition was $2,594. The total consideration was allocated to net tangible and identifiable intangible assets acquired, primarily properties, and liabilities assumed based on their estimated fair values, with the excess of $485 recognized as goodwill. Some other important investing activities involved the investment in limited partnerships of indirect 18.5% interest in Arby’s Restaurant Group, Inc., and approximately 11% cost method investment in Jurlique International Pty Ltd. On February 2, 2012, Wendy’s completed the sale its investment in Jurlique and received proceeds of $27.4 million. Wendy’s did this because prior to 2009, Wendy’s had determined that all of it’s remaining $8.5 million investment in Jurlique was impaired. Wendy’s

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