Wendy's 2013 Annual Report Download - page 107

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
These impairment losses, as detailed in the following table, represented the excess of the carrying amount over
the fair value of the affected assets and are included in “Impairment of long-lived assets.”
Year Ended
2013 2012 2011
Properties and intangible assets .............................. $10,552 $19,469 $12,883
Aircraft ................................................ 5,327 1,628 —
$15,879 $21,097 $12,883
(16) Investment Income, Net
Year Ended
2013 2012 2011
(Loss) gain on sale of investments, net (a) ...................... $ (799) $27,769 $250
Distributions, including dividends (b) ......................... 24,113 8,463 234
Other, net .............................................. 251 11 —
$23,565 $36,243 $484
(a) In 2012, we recorded a gain on the sale of our investment in Jurlique of $27,407, which included a loss of
$2,913 on the settlement of the derivative transaction. During 2013, we determined that $799 of the remaining
escrow would not be received and recorded the reduction of our escrow receivable to “Investment income, net.”
See Note 6 for further information.
(b) During 2013, we received a dividend of $40,145 from our investment in Arby’s, of which $21,145 was
recognized in “Investment income, net,” with the remainder recorded as a reduction to the carrying value of our
investment in Arby’s. During 2012, we received a dividend of $4,625 from our investment in Arby’s, which was
included in “Investment income, net.” See Note 6 for further information.
(17) Discontinued Operations
On July 4, 2011, Wendy’s Restaurants completed the sale of 100% of the common stock of Arby’s, its then
wholly-owned subsidiary, to ARG IH Corporation (“Buyer”), a wholly-owned subsidiary of ARG Holding
Corporation (“Buyer Parent”), for $130,000 in cash (subject to customary purchase price adjustments) and 18.5% of
the common stock of Buyer Parent (through which Wendy’s Restaurants indirectly retained an 18.5% interest in
Arby’s) with a fair value of $19,000. Buyer and Buyer Parent were formed for purposes of this transaction. The Buyer
also assumed approximately $190,000 of Arby’s debt, consisting primarily of capital lease and sale-leaseback
obligations.
Wendy’s Restaurants also entered into a stockholders agreement with Buyer Parent and ARG Investment
Corporation, an entity affiliated with Buyer Parent, which sets forth certain agreements among the parties thereto
concerning, among other things, the governance of Buyer Parent and transfer rights, information rights and
registration rights with respect to the equity securities of Buyer Parent. In addition, Wendy’s Restaurants entered into
a transition services agreement with Buyer, pursuant to which it provided and was reimbursed for continuing
corporate and shared services to Buyer for a limited period of time; such services were completed in the fourth quarter
of 2011.
Information related to Arby’s has been reflected in the accompanying consolidated financial statements as
follows:
• Balance sheets - As a result of our sale of Arby’s on July 4, 2011, there are no remaining Arby’s assets and
liabilities included in our consolidated balance sheets.
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