Wendy's 2013 Annual Report Download - page 80

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The tables below present a rollforward of our accruals for facility relocation costs, which are included in
“Accrued expenses and other current liabilities” and “Other liabilities.”
Balance
December 30,
2012 Charges Payments
Balance
December 29,
2013
Severance, retention and other payroll costs .................. $4,121 $1,856 $(5,038) $ 939
Relocation costs ....................................... 500 1,898 (2,398) —
Atlanta facility closure costs .............................. 4,170 337 (1,733) 2,774
Consulting and professional fees .......................... 80 128 (208) —
Other .............................................. 9 355 (364) —
$8,880 $4,574 $(9,741) $3,713
Balance
January 1,
2012 Charges Payments
Balance
December 30,
2012
Severance, retention and other payroll costs .................. $5,345 $ 9,952 $(11,176) $4,121
Relocation costs ....................................... — 5,222 (4,722) 500
Atlanta facility closure costs .............................. — 4,541 (371) 4,170
Consulting and professional fees .......................... — 4,928 (4,848) 80
Other .............................................. — 2,126 (2,117) 9
$5,345 $26,769 $(23,234) $8,880
Breakfast Discontinuation
During 2013 and 2012, the Company reflected costs totaling $1,118 and $10,569, respectively, resulting from
the discontinuation of the breakfast daypart at certain restaurants. Costs during 2013 primarily consisted of the
remaining carrying value of breakfast related equipment no longer being used. Costs during 2012 consisted primarily
of (1) the remaining net carrying value of $5,277 for certain breakfast equipment and (2) amounts advanced to
franchisees of $3,544 for breakfast equipment which will not be reimbursed.
Arby’s Transaction Related Costs
As a result of the sale of Arby’s in July 2011, we expensed costs related to the Arby’s transaction during 2013,
2012 and 2011 as detailed in the table below. The Company does not expect to incur additional costs related to the
sale of Arby’s.
Year Ended Total Incurred
Since Inception2013 2012 2011
Severance, retention and other payroll costs (a) ..................... $153 $ 615 $29,194 $29,962
Relocation costs (b) .......................................... — 349 1,670 2,019
Consulting and professional fees ................................ — 7 2,935 2,942
Other .................................................... 110 278 288 676
263 1,249 34,087 35,599
Share-based compensation (a)(b) ............................... — 223 6,097 6,320
$263 $1,472 $40,184 $41,919
(a) 2011 transaction related costs included $20,806 of costs incurred by the Company in accordance with the
termination provisions of the employment agreements for three senior executives (for required payments of
$14,481 and vesting of previously issued stock awards of $6,325).
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