Wendy's 2011 Annual Report Download - page 113

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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)
(b) Adjustments related to modifications of share-based compensation awards.
(c) Excludes $700, $3,215 and $3,212 for 2011, 2010 and 2009, respectively, which is included in discontinued
operations.
As of January 1, 2012, there was $14,229 of total unrecognized compensation cost related to non-vested share-
based compensation grants for The Wendy’s Company. The unrecognized expense for The Wendy’s Company will
be recognized over a weighted average period of 2.4 years.
(Wendy’s Restaurants)
Total share-based compensation expense and related income tax benefit recognized in Wendy’s Restaurants
consolidated statements of operations were as follows:
2011 2010 2009
The Wendy’s Company stock options .................................... $ 9,733 $ 7,566 $ 9,157
Restricted Shares .................................................... 1,087 1,540 1,201
Performance Shares:
Performance Condition Shares ...................................... 820 — —
Market Condition Shares (a) ....................................... 4,688 469 —
Compensation adjustments (b) .......................................... (361) — —
Total share-based compensation expense (c) ................................ 15,967 9,575 10,358
Less: Income tax benefit ............................................... (5,949) (3,424) (3,720)
Share-based compensation expense, net of income tax benefit .................. $10,018 $ 6,151 $ 6,638
(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 the restaurant support center to Ohio.
(b) Adjustments related to modifications of share-based compensation awards.
(c) Excludes $700, $3,215 and $3,212 for 2011, 2010 and 2009, respectively, which is included in discontinued
operations.
As of January 1, 2012, there was $13,404 of total unrecognized compensation cost related to non-vested share-
based compensation grants for Wendy’s Restaurants. The unrecognized expense for Wendy’s Restaurants will be
recognized over a weighted average period of 2.2 years.
(17) Transaction Related and Other Costs
As a result of the sale of Arby’s in July 2011 and the related announcements (in July and December 2011) that
the Companies’ Atlanta headquarters and restaurant support center would be relocated to Ohio, we expensed costs for
severance, retention and other items during 2011 as detailed in the table below. Of such 2011 expenses, $20,806
(principally for required payments of $14,481 and vesting of previously issued stock awards of $6,325) was incurred
by Wendy’s Restaurants in accordance with the termination provisions of the employment agreements for three senior
executives.
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