Wendy's 2013 Annual Report Download - page 79

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
(b) The Company recorded favorable lease assets of $37,749 and unfavorable lease liabilities of $37,806 as a result of
leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales
of restaurants.
The table below presents a rollforward of our accrual for our system optimization initiative, which is included
in “Accrued expenses and other current liabilities.”
Balance
December 30,
2012 Charges Payments
Balance
December 29,
2013
Severance and employee related costs ........................ $— $ 9,650 $(2,599) $7,051
Professional fees ........................................ — 2,389 (2,252) 137
Other ............................................... — 863 (603) 260
$— $12,902 $(5,454) $7,448
Restaurant Assets Held for Sale
Year End
2013
Number of restaurants classified as held for sale ..................................... 181
Restaurant net assets held for sale ................................................ $29,630
Restaurant net assets held for sale consist primarily of cash, inventory and equipment and are included in
“Prepaid expenses and other current assets” as of December 29, 2013.
Subsequent Events
Subsequent to December 29, 2013, the Company completed the sale of certain assets used in the operation of
70 Wendy’s restaurants for cash proceeds of approximately $33,300, subject to customary purchase price adjustments.
These sales are expected to result in an estimated pre-tax gain of approximately $14,700 in the first quarter of 2014.
Facilities Relocation and Other Transition Costs
As announced in December 2011, we commenced the relocation of the Company’s Atlanta restaurant support
center to Ohio, which was substantially completed during 2012. The Company does not expect to incur additional
costs related to the relocation.
Year Ended Total Incurred
Since Inception2013 2012 2011
Severance, retention and other payroll costs ...................... $1,856 $ 9,952 $5,345 $17,153
Relocation costs ........................................... 1,898 5,222 — 7,120
Atlanta facility closure costs .................................. 337 4,541 — 4,878
Consulting and professional fees .............................. 128 4,928 — 5,056
Other ................................................... 355 2,126 14 2,495
4,574 26,769 5,359 36,702
Accelerated depreciation expense .............................. — 1,921 197 2,118
Share-based compensation ................................... — 300 (29) 271
Total ................................................. $4,574 $28,990 $5,527 $39,091
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