Wendy's 2013 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2013 Wendy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
(b) Relocation costs are expensed as incurred. However, payments of $750 made due to the relocation of a corporate
executive were being expensed over the three year period following this executive’s relocation in accordance with
the terms of the agreement. The agreement also included a restricted share award with a grant date fair value of
$750 which was being expensed over a three year requisite service period. In accordance with the terms of a
separation agreement with such executive, the remaining unamortized costs were recorded to severance expense
and included in “General and administrative” during the second quarter of 2013.
As of December 30, 2012, our accrual for Arby’s transaction related costs, which was included in “Accrued
expenses and other current liabilities,” totaled $696 and related to severance, retention and other payroll costs. Arby’s
transaction related costs expensed during 2013, as well as amounts included in the accrual at December 30, 2012,
were paid during the year ended December 29, 2013. As a result, no accrual remains at December 29, 2013. The
table below presents a rollforward of the accrual for Arby’s transaction related costs, which was included in “Accrued
expenses and other current liabilities.”
Balance
January 1,
2012 Charges Payments
Balance
December 30,
2012
Severance, retention and other payroll costs ..................... $14,414 $ 615 $(14,333) $696
Relocation costs .......................................... 1,101 349 (1,450) —
Consulting and professional fees .............................. — 7 (7) —
Other .................................................. — 278 (278) —
$15,515 $1,249 $(16,068) $696
(3) Acquisitions and Dispositions
Acquisitions
On June 11, 2012, Wendy’s acquired 30 franchised restaurants in the Austin, Texas area from Pisces Foods,
L.P. (“Pisces”) and Near Holdings, L.P. (the “Pisces Acquisition”). The purchase price was $18,915 in cash, including
closing adjustments. Wendy’s also agreed to lease the real estate, buildings and improvements related to 23 of the
acquired restaurants from Pisces which were considered part of the purchase transaction and to assume ground leases
for five of the acquired restaurants and building leases for two of the acquired restaurants. Wendy’s did not incur any
material acquisition-related costs associated with the Pisces Acquisition.
The operating results of the 30 franchised restaurants acquired were included in our consolidated financial
statements beginning on the acquisition date through the subsequent sale during the fourth quarter of 2013 to a
franchisee in connection with our system optimization initiative. Such results were not material to our consolidated
financial statements.
77