Wendy's 2010 Annual Report Download - page 130

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)
Income from discontinued operations, net of taxes, for 2009 and 2008 consisted of the following:
2009 2008
Income from discontinued operations before income taxes .................... $ 671 $ 242
Reversals of tax reserves due to tax settlements ............................. 1,143 1,701
(Provision for) benefit from income taxes ................................. (268) 274
Income from discontinued operations, net of income taxes .................... $1,546 $2,217
(21) Retirement Benefit Plans
401(k) Plans
Subject to certain restrictions, the Companies have a 401(k) defined contribution plan (the “401(k) Plan”) for
all of its employees who meet certain minimum requirements and elect to participate. Effective January 1, 2010, there
were prior existing 401(k) Plans (the “Prior Plans”) that were combined into the 401(k) Plan. The 401(k) Plan
permits employees to contribute up to 75% of their compensation, subject to certain limitations and provides for
matching contributions of employee contributions up to 4% of compensation and for discretionary profit sharing
contributions.
Under the Prior Plans, employees could contribute various percentages of their compensation ranging up to a
maximum of 50% or 75%, depending on the respective plan, subject to certain limitations. The Prior Plans provided
for matching contributions of employee contributions up to 6% depending on the respective plan. Some of these
Prior Plans also permitted or required profit sharing contributions.
In connection with the matching and profit sharing contributions, the Companies provided compensation
expense in 2010, 2009 and 2008 as follows:
2010 2009 2008
Wendy’s/Arby’s Restaurants ................................. $12,467 $11,796 $4,616
Corporate ............................................... — 898 213
Wendy’s/Arby’s ........................................... $12,467 $12,694 $4,829
Pension Plans
Wendy’s had two domestic defined benefit plans which were assumed in connection with the Wendy’s Merger
(the “Wendy’s Pension Plans”). The benefits under the Wendy’s Pension Plans were frozen prior to the Wendy’s
Merger. In accordance with the terms of the Merger, Wendy’s obtained an actuarial valuation of the unfunded
pension liability as of September 28, 2008. Wendy’s received approval for the termination of the Wendy’s Pension
Plans by the Pension Benefit Guaranty Corporation and the Internal Revenue Service by the fourth quarter of
2008. We made lump sum distributions and purchased annuities for the approved termination of the Wendy’s
Pension Plans in the fourth quarter of 2008 and paid $304 for certain plan settlements in the first quarter of
2009. In December 2010, a final payment of $296 was made to the Pension Benefit Guaranty Corporation for one of
the pension plans.
(Wendy’s/Arby’s)
Wendy’s/Arby’s maintains two domestic defined benefit plans, the benefits under which were frozen in 1988
and for which Wendy’s/Arby’s has no unrecognized prior service cost. Arby’s employees who were eligible to
participate through 1988 (the “Eligible Arby’s Employees”) are covered under one of these plans. The measurement
date used by Wendy’s/Arby’s in determining amounts related to its defined benefit plans is its current fiscal year end
based on the roll forward of an actuarial report.
124