Wendy's 2010 Annual Report Download - page 126

WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES
WENDY’S/ARBY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Share-Based Compensation Expense
(Wendy’s/Arby’s)
Total share-based compensation expense and related income tax benefit recognized in Wendy’s/Arby’s
consolidated statements of operations were as follows:
2010 2009 2008
Compensation expense related to stock options ............................. $ 9,782 $12,497 $ 5,953
Compensation expense related to the effect of the Conversion on Wendy’s stock
options .......................................................... — — 1,923
Compensation expense related to Restricted Shares .......................... 3,229 2,797 1,247
Compensation expense related to Market Condition Performance Shares .......... 693 — —
Compensation expense credited to “Stockholders’ Equity” ..................... 13,704 15,294 9,123
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) ........................................................ 3 13 6
Total share-based compensation expense included in “General and
administrative” .................................................... 13,707 15,467 9,129
Less: Income tax benefit ............................................... (4,995) (5,629) (3,363)
Share-based compensation expense, net of income tax benefit .................. $ 8,712 $ 9,838 $ 5,766
(a) Represents amounts paid to terminated employees in lieu of receiving vested Restricted Shares to which they
were entitled.
(b) Dividends of $38, $25, and $65 that accrued on the Restricted Shares were charged to “Accumulated deficit” in
2010, 2009, and 2008, respectively.
As of January 2, 2011, there was $16,544 of total unrecognized compensation cost related to non-vested share-
based compensation grants for Wendy’s/Arby’s. The unrecognized expense for Wendy’s/Arby’s will be recognized
over a weighted average period of 1.85 years.
(Wendy’s/Arby’s Restaurants)
Total share-based compensation expense and related income tax benefit recognized in Wendy’s/Arby’s
Restaurants consolidated statements of operations were as follows:
2010 2009 2008
Compensation expense related to Wendy’s/Arby’s stock options ................ $ 9,648 $11,139 $ 7,523
Compensation expense related to Restricted Shares .......................... 2,458 2,431 1,247
Compensation expense related to Market Condition Performance Shares .......... 684 — —
Compensation expense related to Restricted Shares that was not credited to
“Stockholder’s Equity” (a) ........................................... — 160 —
Total share-based compensation expense included in “General and
administrative” .................................................... 12,790 13,730 8,770
Less: Income tax benefit ............................................... (4,646) (4,969) (3,231)
Share-based compensation expense, net of income tax benefit .................. $ 8,144 $ 8,761 $ 5,539
(a) Represents amounts paid to terminated employees in lieu of receiving vested Restricted Shares to which they
were entitled.
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