Wendy's 2011 Annual Report Download - page 112

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THE WENDY’S COMPANY AND SUBSIDIARIES
WENDY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The following table summarizes the activity of The Wendy’s Company non-vested performance shares for
2011:
Performance Condition Awards Market Condition Awards
Shares
Weighted
Average Fair
Value Shares
Weighted
Average Fair
Value
Non-vested at January 2, 2011 ........................... 1,207 $3.91 832 $5.56
Granted ............................................ — $— 1,292 $6.91
Dividend equivalent units issued (a) ....................... 17 $— 21 $—
Vested ............................................. (215) $3.91 (431) $6.56
Forfeited ............................................ (354) $3.91 (273) $5.72
Non-vested at January 1, 2012 ........................... 655 $3.91 1,441 $6.46
(a) Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no
weighted average fair value associated with dividend equivalent units.
The total fair value of awards that were accelerated to vest during 2011 was $3,615.
Modifications of Share-Based Awards
During 2011, the Company modified the terms of awards granted to 168 employees in connection with the
sale of Arby’s and the relocation of the Companies’ Atlanta headquarters and restaurant support center to Ohio.
These modifications resulted in (1) the accelerated vesting of stock options and restricted share units upon the
termination of such employees and (2) a reduction in share-based compensation expense of $614. Of this amount,
$253 is included in discontinued operations and $361 is included in “Transaction related and other costs.”
Share-Based Compensation Expense
(The Wendy’s Company)
Total share-based compensation expense and related income tax benefit recognized in The Wendy’s Company
consolidated statements of operations were as follows:
2011 2010 2009
Stock options ....................................................... $ 9,898 $ 7,700 $10,515
Restricted Shares .................................................... 1,943 2,311 1,567
Performance Shares:
Performance Condition Shares ..................................... 820 — —
Market Condition Shares (a) ....................................... 4,688 478 —
Compensation adjustments (b) ......................................... (361) — —
Compensation expense credited to “Stockholders’ Equity” (c) .................. 16,988 10,489 12,082
Dividends and related interest on the Restricted Shares ....................... 2 3 13
Total share-based compensation expense .................................. 16,990 10,492 12,095
Less: Income tax benefit ............................................... (6,338) (3,773) (4,380)
Share-based compensation expense, net of income tax benefit .................. $10,652 $ 6,719 $ 7,715
(a) Includes expense of $2,347 for the accelerated vesting of awards partially offset by a credit of $384 for awards
that were canceled in conjunction with the sale of Arby’s and the relocation of the Companies’ Atlanta
headquarters and restaurant support center to Ohio.
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