Wendy's 2008 Annual Report Download - page 161

(a) Includes the rental payments under the lease for the Company’s former corporate headquarters and of the
sublease for office space on two of the floors covered under the lease to the Management Company (see Note
27). Under terms of the sublease, the Company receives approximately $153 per month which includes an
amount equal to the rent the Company pays plus a fixed amount reflecting a portion of the increase in the
fair market value, at the time the sublease was executed, of the Company’s leasehold interest as well as
amounts for property taxes and the other costs related to the use of the floor. Either may terminate the
sublease upon sixty days notice.
As of December 28, 2008, the Company had $138,231 of “Favorable leases,” net of accumulated
amortization, included in “Other intangible assets” (see Note 9) and $96,407 of unfavorable leases included in
“Other liabilities,” or $41,824 of net favorable leases. The future minimum rental payments set forth above
reflect the rent expense to be recognized over the lease terms and, accordingly, have been increased by (1) the
$41,824 of net favorable leases, and (2) $893 which represents amounts advanced by landlords for
improvements of leased facilities and reimbursed through future rent payments, less payments to lessees for the
right to assume leases which have below market rent, net of (1) $21,833 of Straight-Line Rent, and (2) $3,017
of other related items. Estimated sublease future rental receipts exclude sublessor rental obligations for closed
locations. All amounts include the effects of leases assumed in the Wendy’s Merger.
The Company leases properties it owns to third parties. Properties leased to third parties under operating
leases as of December 28, 2008 and December 30, 2007 include:
2008 2007
Land .................................................................. $ 21,434 $4,446
Buildings and improvements . ........................................... 68,663 2,816
Office, restaurant and transportation equipment ........................... 10,572 177
100,669 7,439
Accumulated depreciation ............................................... 47,232 635
$ 53,437 $6,804
The present values of minimum sale-leaseback and capitalized lease payments are included either with
“Long-term debt” or “Current portion of long-term debt,” as applicable, in the accompanying consolidated
balance sheet as of December 28, 2008 (see Note 10).
153
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)