Wendy's 2009 Annual Report Download - page 133

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
and all other costs related to the Helicopter Interest to the owner on behalf of the Company from July 1, 2007
until October 1, 2008.
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 $157, $153 and $113, in 2009, 2008, and 2007 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. These agreements have been amended and, effective April 1, 2010, the
Management Company will pay the Company an amount equal to the Company’s rent and other costs related
to the use of the space. The Company recognized $1,886, $1,633 and $680 from the Management Company
under the Subleases for 2009, 2008 and 2007, respectively, which has been recorded as a reduction of “General
and administrative.”
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.
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 fixtures. The Company recognized a loss of $835, which is
included in “Facilities relocation and corporate restructuring”, principally reflecting assets for which the fair
value was less than book value.
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, 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, was paid
to the Former Executives on December 30, 2007, six months following their June 29, 2007 separation date.
All of the agreements set forth above with the Former Executives and the Management Company were
negotiated and approved by a special committee of independent members of the Company’s board of directors
(the “Special Committee”). The Special Committee was advised by independent outside counsel and worked
with the compensation committee and the performance compensation subcommittee of the Company’s board of
directors and its independent outside counsel and independent compensation consultant.
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Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)