Wendy's 2008 Annual Report Download - page 157

Current liabilities relating to discontinued operations as of December 28, 2008 and December 30, 2007
consisted of the following:
2008 2007
Year-End
Accrued expenses, including accrued income taxes, of the Beverage
Discontinued Operations (see Note 14) ................................... $3,805 $6,639
Liabilities relating to the SEPSCO Discontinued Operations .................. 362 573
Liabilities relating to the Arby’s Restaurant Discontinued Operations.......... 83 67
$4,250 $7,279
We expect that the liquidation of the remaining liabilities associated with our discontinued operations as
of December 28, 2008 will not have a material adverse impact on our consolidated financial position or results
of operations. To the extent any estimated amounts included in the current liabilities relating to the
discontinued operations are determined to be in excess of the requirement to liquidate the associated liability,
any such excess will be released at that time as a component of gain or loss on disposal of discontinued
operations.
(24) Retirement Benefit Plans
401(k) Plans
Subject to certain restrictions, the Company has 401(k) defined contribution plans (the “401(k) Plans”) for
all of its employees who meet certain minimum requirements and elect to participate. Under the provisions of
the 401(k) Plans, employees may contribute various percentages of their compensation ranging up to a
maximum of 20%, 50%, 75% or 100%, depending on the respective plan, subject to certain limitations. The
401(k) Plans provide for Company matching contributions of employee contributions up to 6% depending on
the respective plan. Some of these 401(k) Plans also permit or require profit sharing contributions.
In connection with the matching and profit sharing contributions, the Company provided $4,829, $600
and $874 as compensation expense in 2008, 2007 and 2006, respectively.
Pension Plans
The Company has two domestic defined benefit plans which were assumed in connection with the
Wendy’s Merger. The account balance defined benefit pension plan (the “ABP Plan”) and the Crew defined
benefit plan (the “Crew Plan”, together referred to as the “Wendy’s Plans”), covered all eligible employees of
Wendy’s.
The benefits under the Wendy’s Plans were frozen prior to the Wendy’s Merger. Wendy’s received
approval for the termination of the Wendy’s Plans by the Pension Benefit Guaranty Corporation and the
Internal Revenue Service by the fourth quarter of 2008. In accordance with the terms of the Merger, Wendy’s
obtained an updated actuarial valuation of the unfunded pension liability as of September 28, 2008. We made
lump sum distributions and purchased annuities for the approved termination of the Wendy’s Plans in the
fourth quarter of 2008 and paid $304 for certain plan settlements in the first quarter of 2009.
The Company maintains two other defined benefit plans, the benefits under which were frozen in 1992
and for which the Company has no unrecognized prior service cost. The measurement date used by the
Company in determining amounts related to its defined benefit plans is its current fiscal year end based on the
rollforward of an actuarial report.
A reconciliation of the beginning and ending balances of the accumulated benefit obligations and the fair
value of these two plans’ assets and a reconciliation of the resulting funded status of the plans to the net
amount recognized are:
149
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)