Tim Hortons 8-K Entry into a Material Definitive Agreement

Exhibit 99.2

Tim Hortons

Debt Offering

Presentation

Agenda and Introductions

Agenda

Business & Industry Overview

Financial Highlights

Transaction Highlights

Management Participants

Don Schroeder

President and CEO

Cynthia Devine

Chief Financial Officer

Diana Fife

Treasurer

Scott Bonikowsky

Vice-President, Investor Relations

2

Confidentiality & Notice

Information set forth in this presentation and that you otherwise obtain during the course of meetings

today, whether orally, in writing, electronically, or through other media or medium, is confidential

information of Tim Hortons

Inc. and its affiliates (the “Company”). 

This information is being provided to you on the express understanding that you will not disclose the

information to any individual or entity, whether inside or outside the Company, and you will maintain

any such information in strict confidence, as required by the terms of this understanding.  In addition,

you

may

not

make

copies

or

extracts

from

any

of

these

materials,

or

otherwise

make

use

of

these

materials. 

If you are not willing to accept and/or obtain such information from the Company today on the terms

set forth above, please immediately notify any Company representative of your refusal to accept

these terms.

This presentation does not constitute an offer to sell, or the solicitation of an offer to buy in the

United States, the securities referenced herein.  Such securities have not been and will not be

registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or applicable

state securities laws and may not be offered or sold in the United States absent registration or an

exemption

from

the

registration

requirement

under

the

Securities

Act

and

applicable

state

securities

laws.

*    *    *

3

Safe Harbor Statement

Certain information in this presentation, particularly information regarding future economic performance, finances, and plans,

expectations and objectives of management, constitutes forward-looking information within the meaning of Canadian securities

laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  We refer to all

of these as forward-looking statements. Various factors, including competition in the quick service segment of the food service

industry, general economic conditions and others described as "risk factors" in the Company's 2009 Annual Report on Form

10-K,

filed

March

4

th

,

2010,

could

affect

the

Company's

actual

results

and

cause

such

results

to

differ

materially

from

those

expressed in forward-looking statements. As such, readers are cautioned not to place undue reliance on forward-looking

statements contained in this presentation, which speak only as of the date hereof. 

Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited

to, assumptions about: the absence of a material increase in competition within the quick service restaurant segment of the

food service industry; the absence of an adverse event or condition that damages our strong brand position and reputation;

continuing positive working relationships with the majority of the Company’s franchisees; there being no significant change in

the Company’s ability to comply with current or future regulatory requirements; the absence of any material adverse effects

arising as a result of litigation; and general worldwide economic conditions.  We are presenting this information for the purpose

of informing you of management’s current expectations regarding these matters, and this information may not be appropriate

for any other purpose.  We assume no obligation to update or alter any forward-looking statements after they are made,

whether as a result of new information, future events, or otherwise, except as required by applicable law.  Please also review

the Company's Safe Harbor

Statement at www.timhortons.com/en/about/safeharbor.html.  Other than the Safe Harbor

Statement, other information available on our web site is not incorporated by reference herein.

Please note that this presentation includes “adjusted”

financial information, metrics, and/or analysis that are non-GAAP

measures. We are required under applicable securities law to provide a reconciliation of non-GAAP measures to the nearest

GAAP measure. All of these reconciliations are included in the attached Appendix.

4

Overview

5

Long and Proven History

6

A long record

of healthy

relationships

with

franchisees,

suppliers and

partners

Iconic brand

and market

leadership in

Canada with

unparalleled

customer

loyalty

Financial

performance

among leaders

in the North

American

restaurant

sector

46-year history: 

4 years as a

publicly-traded

company

Financial Summary

$6.1 Billion (As May 18, 2010)

Market

Capitalization,

4

th

largest

of

public

North American restaurant chains

$5.0+ Billion

2009

systemwide

sales

(1)

$2.2

Billion

(2)

2009

total

revenues,

an

increase

of

9.7% 

from 2008

$398

Million

(2)

2009

free

cash

flow

(1)

before

investments

$595

Million

(2)

EBITDA

(1)

attributable to THI in 2009, an

increase of 11.3% from 2008

7

(1) Refer to the Appendix for non-GAAP information on systemwide sales on slide 29, free cash flow and EBITDA on slide 30

(2) Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FASB No. 46(R), now codified within ASC 810 –

Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.

(As at  January 3, 2010, CAD   –   unless otherwise noted. 2009 results consist of 53 weeks)

Food Service Industry is Large &

Growing

Source:  NPD Group, 12 months ended November  2009, Canadian data, unless otherwise noted.

QSR Represents 62% of Sector Traffic

62%

1%

11%

11%

15%

QSR

Fine

Retail

Casual

Family/

Midscale

Cdn. Food Service

Sector is $45 Billion

Industry

QSR Industry Represents:

CDN

$20 Billion

USD

$164 Billion

8

We Enjoy a Commanding Market

Position in the Canadian Market

Source:  NPD Group, 12 months ended November  2009, Canadian data, unless otherwise noted.  All trademarks of the companies listed above are reserved by their respective

owners.

QSR Represents 62% of Sector Traffic

62%

1%

11%

11%

15%

QSR

Fine

Retail

Casual

Family/

Midscale

Tim Hortons represents ~40% of QSR Traffic

QSR Indep

39.7%

13.8%

3.9%

2.9%

2.5%

2.3%

2.2%

2.1%

1.9%

11.6%

9

The QSR Industry is Relatively

Recession Resistant

05/04

06/05

07/06

08/07

09/08

Tim Hortons has outperformed the QSR Industry

due to our brand value position and convenience

Based on Canadian systemwide sales, refer to the Appendix for information regarding systemwide sales on slide 29

Source: Canadian Restaurant and Food Services Association, 2009 industry sales based on forecast

% Change in Canadian Food Service Sales

10

Proven business model creates

recurring streams of income

Real

Estate

Vertical

Integration

Typical model

is rent based

on 8.5% to

10% of sales

(1)

Franchising

Typical royalty

model is

based on 3.0%

to 4.5% of

sales

Distribution

centres, coffee

roasters, JV

bakery

(2)

etc.

11

(1)

Rent owed to Tim Hortons when a franchisee leases from the Company.  (2)  Tim Hortons announced that its bakery joint venture partner has invoked the buy/sell 

provisions of the joint venture.  As a result, the Company has the right to either sell its interest or acquire the interest of our joint venture partner.  The joint venture 

documentation provides for supply rights and other protections.  Refer to the 10-Q 1Q10 for additional information.

Commitment to Growth –

Store Count

(As at  January 3, 2010)

2005

2006

2007

2008

2009

2,885

3,047

3,221

3,437

Canada

U.S.

99.5% Franchised

288

2,597

336

2,711

398

2,823

520

2,917

563

3,015

3,578

12

CAGR

5.5%

13

Strategic Plan:  2010 –

2013

More than a Great Brand

Attacking daypart,

category and

marketing

opportunities to

drive same-store

sales

Growing differently

in ways we haven’t

grown before

Leveraging our

core business

strengths and

franchise system

Investing to build

our scale and

brand in new and

existing markets

Our Strategic Plan Drives Aspirational

Long-Term EPS CAGR of 12% to 15%

8%

-

10%

~2% -

3%

12%

-

15%

Operating

Income

Financial

Initiatives

(Share Repurchase/

Interest Leverage)

Canadian

Public Company

Reorganization

EPS

Growth

14

~2%

Note:  See Appendix for detail regarding our aspirational targets on slide 28

Financial Highlights

15

16

Same-Store Sales Growth

Revenues

(3)

CAGR

11.7%

($ in millions, CDN)

(1)

(2)

(1)

Long-Term Track Record of Revenue

and Same-Store Sales Growth

(1)

2004 and 2009 results consist of 53 weeks   (2) Sales include distribution sales, Company-operated restaurant sales and sales from certain non-owned consolidated restaurants. 

(3)

Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – Consolidations.  This standard relates 

        to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.

U.S. business a Leader in Same-Store

Sales Percentage Growth

17

2005

2006

2007

2008

2009

Q1

Q2

Q3

Q4

Source: Thomson Reuters.  Blended quarterly average U.S. restaurant industry same-store sales growth rate.

6.9% 10-YR

SSS Average

Strong Adjusted EBITDA

and Free Cash Flow Growth

CAGR

9.7%

18

28.0%*

27.2%*

26.8%*

27.2%*

26.8%*

$53.1

$7.3

$21.3

($ in millions, CDN)

*Adjusted EBITDA

Margins

Free Cash Flow Before Investments

(2)(3)

(1)

Adjusted EBITDA

(2)(3)

(1) 2009 results consist of 53 weeks  (2) Refer to Appendix for information regarding the non-GAAP measures on slide 30  (3)  Results do not incorporate adoption of new accounting standard SFAS

No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form

10-Q 1Q10 for additional information.  Historical free cash flow before investments equals net income attributable to THI before depreciation and amortization

Met Most 2009 Performance Targets in

Tough Economic Conditions

19

(1) 2009 targets and results consist of 53 weeks    (2) Adjusted Operating Income is a non-GAAP measure; refer to the Appendix on slide 33  (3) Results do not incorporate adoption of 

new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – Consolidations.  This standard relates to consolidation of certain variable interest

entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.  (4) See Appendix for detail regarding our aspirational targets on slide 28

20

Cash and cash equivalents

$ 100,123

$ 79,779

$ 121,653

$ 124,717

Restricted cash and cash equivalents and

Restricted Investments

$ 50,086

$ 34,286

$ 80,815

$ 62,329

Total Assets

$ 2,013,036

$ 2,035,562

$ 2,094,291

$ 2,097,694

Long-term debt

$ 411,272

$ 404,044

$ 411,694

$ 405,500

Total liabilities

$ 779,133

$ 766,534

$ 838,605

$ 865,891

Total Equity

$ 1,233,903

$ 1,269,028

$ 1,255,686

$ 1,231,803

($ in thousands, CDN)

Fiscal Quarter

Fiscal Year

Q1 2010

Q1 2009

2009

2008

Strong Balance Sheet

Results for 2010, and retroactively for 2009 and 2008, incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within

ASC 810 – Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional

information.  Long-term debt includes Current Portion debt.

21

($ in thousands, CDN)

Fiscal Quarter

Fiscal Year

Q1 2010

Q1 2009

2009

2008

Revenues

Sales

Franchise Revenues:

Rents & Royalties

Franchise Fees

Total Revenues

$ 405,948

159,960

16,704

582,612

$ 391,116

144,164

20,427

555,707

$ 1,704,065

644,755

90,033

2,438,853

$ 1,541,882

593,483

93,808

2,229,173

Asset impairment and related closure costs

Other costs and expenses

454,876

444,491

1,913,251

21,266

1,729,460

Total costs and expenses

Operating income (EBIT)

Interest expense, net

454,876

127,736

5,100

444,491

111,216

4,793

1,913,251

525,602

19,184

1,750,726

478,447

19,632

Income before income taxes

Income taxes

122,636

38,063

106,423

35,041

506,418

186,606

458,815

150,309

Net income

Net

income

attributable

to

noncontrolling

interest

$ 84,573

$ 5,684

$ 71,382

$ 4,943

$ 319,812

$ 23,445

$ 308,506

$ 23,828

Net

income

attributable

to

Tim

Hortons

Inc.

$ 78,889

$ 66,439

$ 296,367

$ 284,678

Summary Income Statement

Results for 2010, and retroactively for 2009 and 2008, incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 –

Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.

Solid Credit Metrics

(1)

Adjusted Total Debt

(2)

/

Adjusted EBITDAR

(2)

Adjusted EBITDAR

(2)

/

Adjusted Interest

(2)

Total Debt

(2)

/

Total Capital

(2)

22

(1)  Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – Consolidations.  This standard

relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.  (2) Please refer to the Appendix for

information regarding non-GAAP measures on slide 32

Transaction Highlights

23

Organization Structure

Tim Hortons

Inc.

(THI)

TDL Group

Partnership

(2)

TDL Group Corp.

(Guarantor)

TDL Marks Corp

(2)

~81%

(1)

of Tim Hortons

Consolidated Revenues

New Senior

Unsecured

Notes

24

Tim Hortons

USA Inc.

(2)

(1)

      As at Q1 2010 based on trailing twelve months.  (2) Three additional revenue generating guarantors under the current senior credit facility representing

~17%

(1)

of Tim Hortons Consolidated Revenues as at Q1 2010 on a trailing twelve month basis.

Summary

Disciplined

and profitable

growth track

record

Favourable

industry and

market trends

Superior real

estate

locations that

are

geographically

diverse

Strong and

flexible balance

sheet with

recurring

revenue

streams

25

Appendix

26

General information regarding financial

outlook, targets, and aspirational goals

1.

Operating income year-over-year growth rate for 2010 is based on 52 weeks to remove the

benefit from 2009 of approximately 1.5% associated with 53 weeks

of operations in 2009.

2.

The operational objectives, financial outlook, and aspirational goals (collectively, “targets”)

established for 2010 and long-term EPS growth are based on the accounting, tax, and other

legislative rules in place at the time the targets were issued and on the continuation of share

repurchase programs relatively consistent with historical levels.  The impact of future

changes in accounting, tax and/or other legislative rules that may or may not become

effective in fiscal 2010 and future years, changes to our share repurchase activities, and

other matters not contemplated at the time the targets were established that could affect our

business, are not included in the determination of these targets.  In addition, the targets are

forward-looking and are based on our expectations and outlook on, and shall be effective

only as of, the date the targets were originally issued.  Except

as required by applicable

securities laws, we do not intend to update these targets.  You should refer to the Company’s

public filings for any reported updates.  These targets and our performance generally are

subject to various risks and uncertainties and are based on certain underlying assumptions,

set forth in Item 1A of our Annual Report on Form 10-K, filed March 4, 2010 which may

impact future performance and our achievement of these targets.

27

Non-GAAP Measure

Systemwide

Sales

Canadian systemwide

sales growth includes restaurant-level sales at both Company and Franchise

restaurants. Approximately 99.6% of our Canadian restaurants were franchised as at January 3, 2010.

Systemwide

sales

impact

our

franchise

royalties

and

rental

income,

as

well

as

our

distribution

income.

Changes

in

systemwide

sales

are

driven

by

changes

in

average

same-store

sales

and

changes

in

the

number

of

systemwide

restaurants

and

in

the

case

of

2009

by

the

53

week

of

operations.

Management

believes

systemwide

sales data is useful and important in assessing the overall health and financial performance of the

brand and the Company’s franchisee base, and ultimately, the financial performance of the Company on a

consolidated and segmented basis.

28

Franchised

Restaurant Sales

(in millions)

2009

Full Year

2008

Full Year

2007

Full Year

2006

Full Year

2005

Full Year

Canada (C$)

$ 4,880.9

$ 4,546.0

$ 4,197.5

$ 3,821.9

$ 3,410.6

U.S. (US$)

$ 410.0

$ 345.4

$ 301.3

$ 246.3

$ 199.1

rd

EBITDA

($ in millions, CDN)

2009

(1)

2008

2007

2006

2005

Net income

$297.9

$286.9

$271.9

$261.6

$192.9

Interest expense, net

19.3

19.6

16.7

18.5

14.5

Income tax expense

178.2

139.8

139.5

101.6

84.9

Operating income

$495.4

$446.3

$428.1

$381.7

$292.3

Depreciation and amortization

101.5

91.3

83.6

72.7

72.0

EBITDA

$596.9

$537.6

$511.7

$454.4

$364.3

EBITDA attributable to noncontrolling interest

$2.2

$3.1

$3.4

$2.7

$2.4

EBITDA attributable to THI

$594.7

$534.5

$508.2

$451.7

$361.9

Adjusted EBITDA attributable to THI

$602.0

(2)

$555.8

(3)

$508.2

$451.7

$415.0

(4)

Total Revenues

$2,242.1

$2,043.7

$1,895.9

$1,659.5

$1,482.0

Adjusted EBITDA Margins

26.8%

27.2%

26.8%

27.2%

28.0%

Non-GAAP Measure Reconciliation

EBITDA,

Adjusted

EBITDA

and

Free

Cash

Flow

(5)

29

Free

Cash

Flow

($

in

millions,

CDN)

2009

(1)

2008

2007

2006

2005

Net income attributable to THI

$296.4

$284.7

$269.6

$259.6

$191.1

Depreciation and amortization

101.5

91.3

83.6

72.7

72.0

Free Cash Flow Before Investments

$397.9

$376.0

$353.2

$332.3

$263.1

Capex

158.0

174.2

175.5

180.0

218.6

Free Cash Flow

$239.9

$201.8

$177.7

$152.3

$44.5

(1)  2009 results consist of 53 weeks    (2)  Excludes $7.3 million of costs related to the public company reorganization    (3) Excludes $21.3 million of costs related to asset impairment and related 

closure costs    (4)  Excludes $53.1 million of goodwill and asset impairment costs;   (5) Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FASB No. 46(R), now 

codified within ASC 810 – Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information. 

Non-GAAP Measure EBITDA

Disclosure on Non-GAAP Financial Measure EBITDA

EBITDA attributable to THI (“EBITDA”) is defined as net income before interest, taxes, depreciation and amortization, and

EBITDA Margin represents EBITDA expressed as a percentage of Total revenues. EBITDA and EBITDA Margin are used by

management

as

a

performance

measure

for

benchmarking

against

our

peers

and

our

competitors.

We

believe

EBITDA

and

EBITDA Margin are useful to investors because they are frequently used by securities analysts, investors and other interested

parties

to

evaluate

companies

in

our

industry.

EBITDA

and

EBITDA

Margin

are

not

recognized

terms

under

GAAP.

EBITDA

should not be viewed in isolation and does not purport to be an alternative to net income as an indicator of operating performance

or as an alternative to cash flows from operating activities as a measure of liquidity. There are material limitations associated with

making the adjustments to calculate EBITDA and using this non-GAAP financial measure as compared to the most directly

comparable GAAP financial measure. For instance, EBITDA does not

include:

•

interest expense, and because we have borrowed money to finance our operations, interest expense is a necessary

element of our costs and ability to generate revenue;

•

depreciation and amortization expense, and because we use property and equipment, depreciation and amortization

expense is a necessary element of our costs and ability to generate revenue; and

•

Income tax expense, and because the payment of taxes is part of our operations, tax expense is a necessary element

of our costs and ability to operate.

Additionally, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not

consider certain cash requirements such as capital expenditures,

contractual commitments, interest payments, tax payments and

debt service requirements. Because not all companies use identical calculations, this presentation of EBITDA may not be

comparable to other similarly titled measures of other companies.

30

Non-GAAP Measures

EBITDAR, Adjusted EBITDAR, Total Debt, Adjusted Total Debt

and Adjusted Interest

Disclosure on Non-GAAP Financial Measures

EBITDAR and Adjusted EBITDAR, Total Debt and Adjusted Total Debt, Adjusted Interest and Free Cash Flow are non-GAAP measures,

which do not have a standardized meaning prescribed by U.S. GAAP, and may not be comparable to similar measures presented by other

publicly-traded companies.  Therefore, EBITDAR and Adjusted EBITDAR, Total Debt, Adjusted Total Debt and Free Cash Flow should not

be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. 

EBITDAR

is

defined

as

net

income

before

interest,

taxes,

depreciation

and

amortization

and

rent

expense.

Adjusted

Total

Debt

is

defined

as total debt which includes long-term debt, capital leases and current portion of long-term obligations plus capitalized operating leases

calculated as minimum and contingent rent expense multiplied by a capitalization factor of 6.0x.  Using a capitalization factor we can

quantify the approximate impact of off balance sheet leasing arrangements to come to a fulsome leverage picture which is consistent with

the methodology commonly used.  As not all our peers disclose their rent expense, this value uses their publicly disclosed future contractual

commitments and add contingent rent paid, if applicable.  Adjusted Interest is defined as the gross interest expense plus minimum and

contingent

rent

expense.

Adjusted

EBITDAR

is

defined

as

Adjusted

EBITDA

plus

minimum

and

contingent

rent

expense.

Free

cash

flow

is

defined

as

net

income

adjusted

for

amortization

and

depreciation

net

of

capital

requirements

to

sustain

business

growth.

Total

capital

is

defined as total debt plus total equity.

Management

believes

these

measures

are

important

for

the

purpose

of

comparing

leverage

levels

amongst

our

peers

and

to

prior

periods

as they adjust for differences in asset financing strategies.  These measures provide a more fulsome view of management’s perspective on

leverage relative to our peers. Management believes free cash flow is an important tool to compare underlying cash flow generated from

core operating activities once capital investment requirements have been met. EBITDAR is not intended to be a measure of free cash flow

for management’s discretionary use, as it does not consider certain cash requirements such as capital expenditures, contractual

commitments, interest payments, tax payments and debt service requirements.  Because not all companies use identical calculation, this

presentation of EBTIDAR and Adjusted Total Debt may not be comparable to other similarly titled measure of other companies. 

31

Non-GAAP Measure Reconciliation

Adjusted Operating Income

(1)

32

($ in millions, CDN)

2009

Full Year

2008

Full Year

2007

Full Year

2006

Full Year

2005

Full Year

Reported Operating

Income

$ 495.4

$ 446.3

$ 428.1

$ 381.7

$ 292.3

Add:

Public company

reorganization costs

7.3

-

-

-

-

Add:

Asset impairment and

related closure costs

-

21.3

-

-

-

Add:

Goodwill and asset

impairment cost

-

-

-

-

53.1

Adjusted Operating

Income

$ 502.7

$ 467.6

$ 428.1

$ 381.7

$ 345.4

(1)  Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – Consolidations.  This standard relates to

consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.

($ in millions, CDN)

2009

(1)

2008

2007

2006

Adjusted EBITDA attributable to THI

Rent

Adjusted EBITDAR

602.0

148.2

750.2

555.8

138.8

694.6

508.2

129.2

637.4

451.7

118.9

570.6

Current Portion of LT Obligations

Capital Leases

Term Debt

7.6

67.2

336.0

6.7

59.0

332.5

6.1

52.5

328.0

5.5

44.8

325.6

Total Debt

Rent

Capitalization Factor

Capitalized Operating Leases

Adjusted Total Debt

410.8

148.2

x 6.0

889.2

1,300.0

398.2

138.8

x 6.0

832.8

1,231.0

386.6

129.2

x 6.0

775.2

1,161.8

375.9

118.9

x 6.0

713.4

1,089.3

Interest Expense

Rent

Adjusted Interest

21.2

148.2

169.4

24.6

138.8

163.4

24.1

129.2

153.3

22.3

118.9

141.2

Total Debt

Total Equity

Total Capital

410.8

1,170.9

1,581.7

398.2

1,142.0

1,540.2

386.6

1,004.4

1,391.0

375.9

1,020.5

1,396.4

Adjusted Total Debt / Adjusted EBITDAR

Adjusted EBITDAR / Adjusted Interest

Total Debt / Total Capital

1.7 x

4.4 x

0.3 x

1.8 x

4.3 x

0.3 x

1.8 x

4.2 x

0.3 x

1.9 x

4.0 x

0.3 x

Non-GAAP Measure Reconciliation Adjusted EBITDAR,

Adjusted

Total

Debt

and

Adjusted

Interest

(2)

33

(1)

2009 results consist of 53 weeks (2) Results do not incorporate adoption of new accounting standard SFAS No. 167 – Amendments to FIN 46(R), now codified within ASC 810 – 

Consolidations.  This standard relates to consolidation of certain variable interest entities.  Please refer to the Company’s Form 10-Q 1Q10 for additional information.