Wendy's 2010 Annual Report Download - page 133

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)
The Companies’ future minimum rental payments and rental receipts, for non-cancelable leases, including
rental receipts for leased properties owned by the Companies, having an initial lease term in excess of one year as of
January 2, 2011, are as follows:
Rental Payments Rental Receipts
Fiscal Year
Sale-
Leaseback
Obligations
Capitalized
Leases
Operating
Leases (a)
Sale-
Leaseback
Obligations
Capitalized
Leases
Operating
Leases (a)
Owned
Properties
2011 ............................. $ 14,948 $ 15,856 $ 150,465 $ 966 $ 291 $12,501 $ 7,064
2012 ............................. 15,406 12,372 140,592 966 291 11,271 7,001
2013 ............................. 14,824 12,729 131,518 946 291 9,541 6,590
2014 ............................. 14,814 12,899 120,996 931 291 8,493 6,393
2015 ............................. 15,640 13,912 112,363 887 291 7,551 6,113
Thereafter ......................... 137,459 108,766 1,032,878 3,440 1,279 36,175 45,731
Total minimum payments ............. 213,091 176,534 $1,688,812 $8,136 $2,734 $85,532 $78,892
Less amounts representing interest, with
interest rates of between 3% and 22% . . (91,207) (89,864)
Present value of minimum sale leaseback
and capitalized lease payments ........ $121,884 $ 86,670
(a) In addition to the amounts presented in the table above, Wendy’s/Arby’s has rental payments of $1,605 and
$673, and rental receipts of $1,360 and $567 in 2011 and 2012, both respectively, under the lease for Wendy’s/
Arby’s former corporate headquarters and of the sublease for office space on two of the floors covered under the
lease to personnel from a management company formed by our Chairman, who was our former Chief Executive
Officer, and our Vice Chairman, who was our former President and Chief Operating Officer, and a director,
who was our former Vice Chairman (the “Management Company”).
As of January 2, 2011, the Companies had $106,578 of “Favorable leases,” net of accumulated amortization,
included in “Other intangible assets” and $82,499 of unfavorable leases included in “Other liabilities,” or $24,079 of
net favorable leases. The future minimum rental payments set forth above reflect the rent expense to be recognized
over the lease terms and, accordingly, have been increased by the $24,079 of net favorable leases, net of (1) $40,941
of Straight-Line Rent and (2) $2,207 which represents amounts advanced by landlords for improvements of leased
facilities and reimbursed through future rent payments, less payments to lessees for the right to assume leases which
have below market rent. Estimated sublease future rental receipts exclude sublessor rental obligations for closed
locations.
Properties leased by the Companies to third parties under capitalized leases and operating leases as of January 2,
2011 and January 3, 2010 include:
Year End
2010 2009
Land ........................................................... $27,434 $26,325
Buildings and improvements ......................................... 64,825 58,450
Office, restaurant and transportation equipment .......................... 4,133 4,437
96,392 89,212
Accumulated depreciation and amortization ............................. (18,344) (9,885)
$ 78,048 $79,327
The present values of minimum sale-leaseback and capitalized lease payments are included either with “Long-
term debt” or “Current portion of long-term debt,” as applicable.
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