Wendy's 2009 Annual Report Download - page 127

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Wendy’s Executive Plans
In accordance with the Wendy’s Merger agreement, amounts due under key executive agreements and
supplemental executive retirement plans (the “SERP”) were funded into a restricted account. The corresponding
liabilities were included in “Accrued expenses and other current liabilities” and “Other liabilities” and in
aggregate, were approximately $6,397 and $26,725 as of January 3, 2010 and December 28, 2008,
respectively.
(20) Lease Commitments
The Company leases real property, leasehold interests, and restaurant, transportation, and office
equipment. Some leases which relate to restaurant operations provide for contingent rentals based on sales
volume. Certain leases also provide for payments of other costs such as real estate taxes, insurance and common
area maintenance which are not included in rental expense or the future minimum rental payments set forth
below.
Rental expense under operating leases consists of the following components:
2009 2008 2007
Minimum rentals ........................................... $151,360 $94,547 $79,484
Contingent rentals .......................................... 12,364 4,989 2,711
163,724 99,536 82,195
Less sublease income ........................................ (6,212) (4,771) (9,131)
$157,512 $94,765 $73,064
The Company’s future minimum rental payments and rental receipts, for noncancelable leases, including
rental receipts for leased properties owned by the Company, having an initial lease term in excess of one year as
of January 3, 2010, are as follows:
Sale-
Leaseback
Obligations
Capitalized
Leases
Operating
Leases (a)
Sale-
Leaseback
Obligations
Capitalized
Leases
Operating
Leases (a)
Owned
Properties
Rental Payments Rental Receipts
Fiscal Year
2010 . . . . . . . . . . . . . . . . . . . . . . . . $ 14,718 $ 17,709 $ 155,521 $1,022 $ 345 $13,080 $ 7,200
2011 . . . . . . . . . . . . . . . . . . . . . . . . 14,687 15,293 142,688 1,022 345 11,633 7,180
2012 . . . . . . . . . . . . . . . . . . . . . . . . 15,380 11,755 132,855 1,022 345 9,726 7,118
2013 . . . . . . . . . . . . . . . . . . . . . . . . 14,767 11,996 121,980 1,001 345 7,511 6,707
2014 . . . . . . . . . . . . . . . . . . . . . . . . 14,758 12,177 113,032 964 345 6,361 6,456
Thereafter . . . . . . . . . . . . . . . . . . . 152,185 110,451 1,093,355 4,347 1,754 27,792 50,761
Total minimum payments. . . . . 226,495 179,381 $1,759,431 $9,378 $3,479 $76,103 $85,422
Less amounts representing
interest, with interest rates
of between 3% and 22% . . . (101,319) (89,495)
Present value of minimum sale
leaseback and capitalized
lease payments . . . . . . . . . . . . . $ 125,176 $ 89,886
(a) Includes the rental payments under the lease for the Company’s former corporate headquarters and of the
sublease for office space on two of the floors covered under the lease to the Management Company.
As of January 3, 2010, the Company had $124,056 of “Favorable leases,” net of accumulated
amortization, included in “Other intangible assets” and $92,261 of unfavorable leases included in “Other
120
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)