Wendy's 2013 Annual Report Download - page 106

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Share-Based Compensation Expense
Total share-based compensation expense and the related income tax benefit recognized in the Company’s
consolidated statements of operations were as follows:
Year Ended
2013 2012 2011
Stock options (a) .................................................... $ 7,300 $ 5,578 $ 9,898
Restricted Shares .................................................... 3,985 2,730 1,943
Performance Shares:
Performance Condition Shares ..................................... 2,007 — 820
Market Condition Shares (b) ....................................... 5,279 3,210 4,688
Compensation adjustments, net (c) ...................................... 1,042 (45) (361)
Compensation expense credited to “Stockholders’ Equity” (d) .................. 19,613 11,473 16,988
Interest on Restricted Share dividends .................................... — — 2
Total share-based compensation expense .................................. 19,613 11,473 16,990
Less: Income tax benefit ............................................... (7,295) (4,286) (6,338)
Share-based compensation expense, net of income tax benefit .................. $12,318 $7,187 $10,652
(a) 2011 includes expense of $3,068 for the accelerated vesting of awards in conjunction with the sale of Arby’s and
the announcement of the relocation of the Company’s Atlanta restaurant support center to Ohio.
(b) 2011 includes expense of $2,347 for the accelerated vesting of awards partially offset by a credit of $384 for
awards that were forfeited in conjunction with the sale of Arby’s and the announcement of the relocation of the
Company’s Atlanta restaurant support center to Ohio.
(c) Adjustments relate to modifications of share-based compensation awards.
(d) Excludes $700 for 2011 which is included in discontinued operations.
As of December 29, 2013, there was $26,842 of total unrecognized share-based compensation, which will be
recognized over a weighted average amortization period of 2.1 years.
(15) Impairment of Long-Lived Assets
Our company-owned restaurant impairment losses included in the table below predominantly reflect
impairment charges on restaurant-level assets resulting from the deterioration in operating performance of certain
restaurants and additional charges for capital improvements in restaurants impaired in prior years which did not
subsequently recover. Additionally, in 2013 and 2012 our impairment losses included the remeasurement of certain
surplus properties and properties held for sale.
During 2013, the Company decided to sell two company-owned aircraft and recorded an impairment charge of
$5,327 to reflect the aircraft at fair value based on current market values. The aircraft are classified as held for sale and
included in “Prepaid expenses and other current assets” in our consolidated balance sheet as of December 29, 2013.
During 2012, we closed 15 company-owned restaurants in connection with our review of certain
underperforming locations, which resulted in an impairment charge of $3,270. In addition, we incurred costs related
to these restaurant closings of $1,477, primarily for continuing lease obligations, which are included in “Other
operating expense, net.” In addition, during the first quarter of 2012, we recorded an impairment charge of $1,628 to
reflect a company-owned aircraft at fair value as a result of classifying the aircraft as held for sale. During the second
quarter of 2012, the Company decided to lease the aircraft and as a result reclassified the aircraft to held and used.
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