Wendy's 2013 Annual Report Download - page 111

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
As of December 29, 2013, the Company’s future minimum rental payments and rental receipts for
non-cancelable leases, including rental receipts for leased properties owned by the Company having an initial or
remaining non-cancelable lease term in excess of one year, are as follows:
Rental Payments Rental Receipts
Fiscal Year
Capital
Leases
Operating
Leases
Capital
Leases
Operating
Leases
Owned
Properties
2014 ....................................... $ 5,476 $ 69,925 $ 2,045 $ 17,320 $ 11,190
2015 ....................................... 5,822 63,184 2,048 17,024 11,155
2016 ....................................... 5,244 59,277 2,088 16,875 11,116
2017 ....................................... 4,797 57,894 2,083 16,531 10,980
2018 ....................................... 5,717 55,649 1,881 15,495 11,114
Thereafter ................................... 70,035 735,224 32,526 211,260 202,614
Total minimum payments ....................... $97,091 $1,041,153 $42,671 $294,505 $258,169
Less amounts representing interest, with interest rates
between 3% and 63% ........................ (56,359)
Present value of minimum lease payments ........... $40,732
The present values of minimum lease obligation payments are included either in “Long-term debt” or “Current
portion of long-term debt,” as applicable.
Properties leased by the Company to third parties under operating leases as of December 29, 2013 and
December 30, 2012 include:
Year End
2013 2012
Land .......................................................... $ 69,500 $ 28,989
Buildings and improvements ........................................ 194,246 64,286
Office, restaurant and transportation equipment ......................... 6,715 4,337
270,461 97,612
Accumulated depreciation and amortization ............................ (79,536) (26,905)
$190,925 $ 70,707
(20) Guarantees and Other Commitments and Contingencies
Guarantees and Contingent Liabilities
Franchise Image Activation Incentive Programs
Wendy’s has an incentive program for franchisees that commence Image Activation restaurant remodels or open
newly constructed Image Activation design restaurants during 2014 and for franchisees that open newly constructed
Image Activation design restaurants during 2015. The incentive program provides reductions in royalty payments for
up to the first three years after the completion of construction. In addition, the program includes cash incentives for
new and remodeled restaurants in the Image Activation design during 2014. Wendy’s anticipates the payment of
approximately $4,500 for cash incentives under this program in 2014.
Wendy’s also had an incentive program for franchisees’ participation in Wendy’s Image Activation program
during 2013 for which the Company recognized $9,178 of incentive expense which is included in “General and
administrative” for the year ended December 29, 2013.
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