Wendy's 2009 Annual Report Download - page 121

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aggregate estimated fair value of the Equity Interests which vested, including the amount related to the
accelerated vesting, during 2007 was $2,240.
Share-Based Compensation Expense
Total share-based compensation expense and related income tax benefit recognized in the Company’s
consolidated statements of operations were as follows:
2009 2008 2007
Compensation expense related to stock options . . . . . . . . . . . . . . . . . $12,497 $ 5,953 $ 4,271
Compensation expense related to the effect of the Conversion on
Wendy’s stock options..................................... — 1,923 —
Compensation expense related to Restricted Shares. . . . . . . . . . . . . . 2,797 1,247 3,479
Compensation expense related to the Equity Interests . . . . . . . . . . . — — 2,007
Compensation expense credited to “Stockholders’ Equity”. . . . . . . . 15,294 9,123 9,757
Compensation expense related to Restricted Shares that was not
credited to “Stockholders’ Equity” (a) . . . . . . . . . . . . . . . . . . . . . . . 160 — —
Compensation expense related to dividends and related interest
on the Restricted Shares (b)................................ 13 6 26
Total share-based compensation expense included in
“General and administrative” . . . . . . . . . . . . . . . . . . . . . . 15,467 9,129 9,783
Less:
Income tax benefit...................................... (5,629) (3,363) (2,946)
Share-based compensation expense, net of income tax
benefit.......................................... $ 9,838 $5,766 $ 6,837
(a) This amount represents amounts paid to terminated employees in lieu of receiving vested Restricted Shares
to which they were entitled.
(b) Dividends of $25, $65, and $148 that accrued on the Restricted Shares were charged to “Accumulated
deficit/Retained earnings” in 2009, 2008 and 2007, respectively.
(14) Facilities Relocation and Corporate Restructuring
The facilities relocation and corporate restructuring charges are summarized below:
2009 2008 2007
Wendy’s Restaurants segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,096 $3,101 $ —
Arby’s Restaurants segment................................... (72) 120 652
General corporate............................................ — 692 84,765
$11,024 $3,913 $85,417
The Company incurred corporate restructuring charges primarily related to severance in conjunction with
the Wendy’s Merger in 2009 and 2008. We do not expect to incur any additional corporate restructuring
charges with respect to the Wendy’s Merger in 2010.
The facilities relocation charges incurred and recognized in our Arby’s restaurant segment for 2008 and
2007 represent additional costs principally related to the now completed Company combination of its existing
restaurant operations with those of the RTM Restaurant Group (“RTM”) following the acquisition of RTM in
2005.
The general corporate charges for 2008 and 2007 principally relate to the transfer of substantially all of
our senior executive responsibilities to the ARG executive team (the “Corporate Restructuring”). In
114
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)