Wendy's 2013 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 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)
Total losses for the year ended December 29, 2013 also include the impact of remeasuring the following to fair
value (1) long-lived assets at company-owned restaurants of $9,094, (2) certain surplus properties and properties held
for sale of $1,458 and (3) company-owned aircraft of $5,327 as a result of the Company’s decision to sell the aircraft
and classify as held for sale. Such losses have been presented as “Impairment of long-lived assets” in our consolidated
statements of operations. The fair values of long-lived assets and the aircraft presented in the table below represent the
remaining carrying value and were estimated based on current market values. See Note 15 for more information on
the impairment of our long-lived assets.
Total losses for the year ended December 29, 2013 also include the impact of remeasuring goodwill associated
with our international franchise restaurants reporting unit in connection with our annual goodwill impairment test.
Such losses totaling $9,397 represent the total amount of goodwill recorded for our international franchise restaurants
reporting unit and have been presented as “Impairment of goodwill” in our consolidated statement of operations. See
Note 8 for more information on the impairment of goodwill.
Total losses for the year ended December 30, 2012 reflect the impact of remeasuring long-lived assets at
company-owned restaurants and a company-owned aircraft to fair value and were recorded to “Impairment of
long-lived assets” in the consolidated statements of operations. The fair value of long-lived assets presented in the
table below substantially represents the remaining carrying value of land for Wendy’s properties that were impaired in
2012 and were estimated based on current market values as determined by sales prices of comparable properties and
current market trends. As of December 30, 2012, the carrying value of the aircraft, which reflected current market
conditions, approximated its fair value.
Fair Value Measurements
December 29,
2013 Level 1 Level 2 Level 3
2013
Total Losses
Long-lived assets ................................... $14,788 $— $— $14,788 $31,058
Goodwill ......................................... — — — — 9,397
Aircraft .......................................... 8,500 — — 8,500 5,327
Total ........................................ $23,288 $— $— $23,288 $45,782
Fair Value Measurements
December 30,
2012 Level 1 Level 2 Level 3
2012
Total Losses
Long-lived assets ................................... $ 7,311 $— $— $ 7,311 $19,469
Aircraft .......................................... 5,926 — — 5,926 1,628
Total ........................................ $13,237 $— $— $13,237 $21,097
(12) Income Taxes
Income (loss) from continuing operations before income taxes and noncontrolling interests is set forth below:
Year Ended
2013 2012 2011
Domestic .............................................. $49,635 $(23,154) $11,967
Foreign ................................................ 9,417 10,029 12,473
$59,052 $(13,125) $24,440
93