Wendy's 2008 Annual Report Download - page 142

Wendy’s shareholders. Subsequent to the merger, we only have Class A common stock; therefore, the
summarized activity in the table below presents Class A common stock subsequent to the date of the Wendy’s
Merger in 2008 and Class B common stock from 2006 through the date of the Wendy’s Merger. Our common
stock and common stock held in treasury activity for 2008, 2007 and 2006 is as follows:
Class B prior to
September 29, 2008
Class A subsequent to
September 29, 2008
Class
A
Class
B
Class
A
Class
B
Class
A
Class
B
2008 2007 2006 2008 2007 2006
Common Stock Treasury Stock
Number of shares at beginning of year . . 64,025 63,656 59,101 667 174 805 486 6,192 8,216
Net effect of combining Class B
common stock and Class A common
stock presentation . . . ................ 29,551 2 (2)
Stock issuance related to Wendy’s
Merger (Note 3) .................... 376,776 — — — — — — — —
Common shares issued:
Upon exercises of stock options
(Note 16) ...................... — 329 11,394 (5) — (43) (190) (3,494) (257)
In connection with the Convertible
Notes Conversions (Note 10) .... — — 1,623 — — — — (4,323) (7,320)
Upon vesting of restricted stock
(Note 16) ...................... 8 — — — — (99) (482) (50) (243)
For time-vesting restricted stock
(Note 16) ...................... 7 226 — (48) (211) — — — —
For directors’ fees . ................ 1 — — (15) (2) (3) (1) (3) (1)
Common shares received or withheld:
As payment in connection with
exercises of stock options (Notes
16 and 27)..................... — (152) (6,464) — — 6 114 1,720 2
For forfeitures of restricted stock . . . 8 — — 28 16
As payment for withholding taxes
on capital stock transactions
(Notes 16 and 27) .............. — (34) (1,998) 591 25 1 247 763 89
Other ................................ 48 — — — — — — — —
Number of shares at end of year ........ 470,424 64,025 63,656 1,220 — 667 174 805 486
Adjustments to Beginning Retained Earnings
As disclosed in Note 1, the SEC issued SAB 108 during 2006, which was adopted by the Company as of
December 31, 2006. Prior to adopting SAB 108, the Company used only the Rollover approach to quantify
unrecorded adjustments and considered all unrecorded adjustments to be immaterial. However, when
quantifying unrecorded adjustments under the Iron Curtain approach, the Company concluded that one of the
unrecorded adjustments resulting from income deferred in years prior to 2004 was material. Additionally,
when applying this Iron Curtain approach the Company identified two accruals provided in years prior to 2004
that were also no longer required although not material. The Company previously recorded the cumulative
effect of these unrecorded adjustments, one of which was then considered to be material, as an adjustment
increasing retained earnings as of the beginning of 2006, as permitted under the transition provisions of
SAB 108.
134
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)