Wendy's 2011 Annual Report Download - page 118

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THE WENDY’S COMPANY AND SUBSIDIARIES
WENDY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Wendy’s Executive Plans
In accordance with the agreement for the merger with Wendy’s, amounts due under key executive agreements
and supplemental executive retirement plans (the “SERP”) were funded into a restricted account. Effective January 1,
2011, participation in the SERP was frozen and current participants’ balances only earn interest. The corresponding
SERP liabilities have been included in “Accrued expenses and other current liabilities” and “Other liabilities” and, in
the aggregate, were approximately $4,450 and $5,391 as of January 1, 2012 and January 2, 2011, respectively.
(23) Lease Commitments
The Companies lease 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:
2011
Wendy’s
Restaurants Corporate
The Wendy’s
Company
Minimum rentals ...................................... $69,329 $ 1,149 $ 70,478
Contingent rentals ..................................... 10,468 — 10,468
79,797 1,149 80,946
Less sublease income ................................... (13,746) (1,338) (15,084)
$ 66,051 $ (189) $ 65,862
2010
Wendy’s
Restaurants Corporate
The Wendy’s
Company
Minimum rentals ...................................... $67,587 $ 1,262 $ 68,849
Contingent rentals ..................................... 10,033 — 10,033
77,620 1,262 78,882
Less sublease income ................................... (12,769) (1,506) (14,275)
$ 64,851 $ (244) $ 64,607
2009
Wendy’s
Restaurants Corporate
The Wendy’s
Company
Minimum rentals ...................................... $69,602 $ 1,723 $ 71,325
Contingent rentals ..................................... 10,664 — 10,664
80,266 1,723 81,989
Less sublease income ................................... (13,877) (1,580) (15,457)
$ 66,389 $ 143 $ 66,532
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