Wendy's 2008 Annual Report Download - page 168

Obligations to Former Executives
On June 29 and July 1, 2007, the Company funded the payment of the obligations due to the Former
Executives under the Contractual Settlements disclosed in Note 17, net of applicable withholding taxes of
$33,994, into the 2007 Trusts. The cash and investments in the 2007 Trusts, which included any related
investment income or loss, and additional amounts related to the applicable withholding taxes not funded into
the 2007 Trusts (see Note 17), was paid to the Former Executives on December 30, 2007, six months
following their June 29, 2007 separation date.
Sale of Assets Related to Corporate Restructuring
In July 2007, as part of the Corporate Restructuring, the Company sold substantially all of the properties
and other assets it owned and used at its former New York headquarters to the Management Company for an
aggregate purchase price of $1,808, including $140 of sales taxes. The assets sold included computers and
other electronic equipment and furniture and furnishings. The Company recognized a loss of $835, which is
included in “Facilities relocation and corporate restructuring” in the Consolidated Statements of Operations,
principally reflecting assets for which the fair value was less than book value.
Sublet of New York Office Space
In July 2008 and July 2007, the Company entered into agreements under which the Management
Company is subleasing (the “Subleases”) office space on two of the floors of the Company’s former New York
headquarters. Under the terms of the Subleases, the Management Company is paying the Company
approximately $153 and $113, respectively, per month which includes an amount equal to the rent the
Company pays plus a fixed amount reflecting a portion of the increase in the then fair market value of the
Company’s leasehold interest as well as amounts for property taxes and the other costs related to the use of the
space. Either the Management Company or the Company may terminate the Subleases upon sixty days notice.
The Company recognized $1,633 and $680 from the Management Company under the Subleases for 2008 and
2007 which has been recorded as a reduction of “General and administrative” expenses in the accompanying
Consolidated Statement of Operations.
Corporate Facility Lease Assignment
As of June 30, 2007, the Company assigned the lease for a corporate facility to the Management Company
such that after that date, other than with respect to the Company’s security deposit applicable to the lease, the
Company has no further rights or obligations with respect to the lease. The security deposit of $113 remains
the property of the Company and, upon the expiration of the lease on July 31, 2010, is to be returned to the
Company in full.
Executive Use of Corporate Aircraft
In August 2007, the Company entered into time share agreements whereby the Principals and the
Management Company may use the Company’s corporate aircraft in exchange for payment of the incremental
flight and related costs of such aircraft. Such reimbursements for 2008 and 2007 (the period from July 2, 2007
through December 30, 2007) amounted to $3,205 and $1,095 and have been recognized as a reduction of
“General and administrative” in the accompanying Consolidated Statements of Operations. As of December 28,
2008, the Company was owed $247 and $108 by the Principals and the Management Company, respectively,
which was received in 2009.
Sale of Helicopter Interest
The Management Company assumed the Company’s 25% fractional interest in a helicopter (the
“Helicopter Interest”) on October 1, 2008 for $1,860 which is the amount we would have received under the
relevant agreement, if we exercised our right to sell the Helicopter Interest on October 1, 2008, which is equal
to the then fair value, less a remarketing fee. The Management Company paid the monthly management fee
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WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES
(FORMERLY TRIARC COMPANIES, INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)