Wendy's 2011 Annual Report Download - page 119

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)
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 1, 2012, 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
2012 ....................... $ 95 $ 2,779 $ 75,161 $ 117 $ 536 $ 6,433 $ 3,968
2013 ....................... 103 2,480 67,035 117 536 5,231 3,666
2014 ....................... 106 2,442 61,581 117 536 4,645 3,576
2015 ....................... 120 2,464 57,115 117 536 4,159 3,539
2016 ....................... 111 2,073 52,890 117 536 3,665 3,492
Thereafter ................... 2,699 19,882 644,883 1,464 4,630 24,826 36,007
Total minimum payments ....... 3,234 32,120 $958,665 $2,049 $7,310 $48,959 $54,248
Less amounts representing interest,
with interest rates between 3%
and33% .................. (1,768) (16,898)
Present value of minimum sale
leaseback and capitalized lease
payments .................. $1,466 $ 15,222
(a) In addition to the amounts presented in the table above, The Wendy’s Company will have rental payments of
$711 and rental receipts of $580 in 2012 under the lease for The Wendy’s Company’s former corporate
headquarters and from the sublease for office space on two of the floors covered under the lease to a management
company formed by our Chairman, who was our former Chief Executive Officer, 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 1, 2012, the Companies had $83,343 of “Favorable leases,” net of accumulated amortization,
included in “Other intangible assets” and $49,430 of unfavorable leases included in “Other liabilities,” or $33,913 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 $33,913 of net favorable leases, net of (1) $23,582
of Straight-Line Rent and (2) $1,186 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 1,
2012 and January 2, 2011 include:
Year End
2011 2010
Land .......................................................... $24,211 $ 27,434
Buildings and improvements ........................................ 58,505 64,825
Office, restaurant and transportation equipment ......................... 4,377 4,133
87,093 96,392
Accumulated depreciation and amortization ............................. (20,019) (18,344)
$ 67,074 $ 78,048
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