Wendy's 2011 Annual Report Download - page 34

(3) As of December 29, 2008, The Wendy’s Company adopted new accounting guidance related to non-controlling
interests (formerly referred to as minority interests). This adoption resulted in the retrospective reclassification of
minority interests from its former presentation as a liability to “Stockholders’ equity.” The reclassifications were
$0.l million and $0.9 million for 2008 and 2007, respectively. Income attributable to non-controlling interests
in 2008 and 2007 was not material.
(4) Asset management and related fees were generated by the Company in its capacity as the investment manager for
various investment funds and private investment accounts and as the collateral manager for various collateralized
debt obligation vehicles through the date of the sale of its interest in Deerfield discussed above.
(5) (Loss) income from discontinued operations includes Arby’s income (loss) for the period from January 3, 2011
through July 3, 2011 and the years ended January 2, 2011, January 3, 2010, December 28, 2008, and
December 30, 2007. Loss from discontinued operations in 2011 includes a loss on disposal, net of income taxes,
of $8.8 million. (Loss) income from discontinued operations, net of income taxes, in 2009, 2008, and 2007
includes income from discontinued operations, net of income taxes, of our former premium beverage and soft
drink concentrate business segment and our former utility and municipal services and refrigeration business
segment of $1.6 million, $2.2 million and $1.0 million, respectively.
(6) For the purposes of calculating (loss) income per share amounts for 2008 and 2007, (loss) income was allocated
between The Wendy’s Company Class A common stock and The Wendy’s Company Class B common stock
proportionately based on weighted average basic shares outstanding.
(7) The weighted average number of shares used in the calculation of diluted income per share in 2011, 2010 and
2009 consists of the weighted average basic shares outstanding for common stock and potential shares of
common stock reflecting the effect of 2.0 million, 0.9 million and 0.5 million dilutive stock options and
non-vested restricted shares for 2011, 2010 and 2009, respectively. The weighted average number of shares used
in the calculation of diluted (loss) income per share for 2008 and 2007 is the same as basic (loss) income per
share since all potentially dilutive securities would have had an antidilutive effect based on the loss from
continuing operations for these years.
(8) Reflects certain significant charges recorded during 2011 as follows: $58.6 million charged to operating profit,
consisting of $45.7 million for transaction related and other costs for severance, relocation and other items
associated with the sale of Arby’s and the related announcements (in July and December 2011) that the
Companies’ Atlanta headquarters and restaurant support center would be relocated to Ohio and $12.9 million
for impairment of long-lived assets other than goodwill; and $36.4 million charged to income from continuing
operations and net income related to these charges.
(9) Reflects certain significant charges recorded during 2010 as follows: $26.3 million charged to operating profit for
impairment of long-lived assets other than goodwill; $16.3 million charged to income from continuing
operations and net loss related to these charges; and $16.2 million charged to income from continuing
operations and net loss related to costs incurred for the early extinguishment of debt, which was comprised of a
premium payment required to redeem the Wendy’s 6.25% senior notes, the write-off of the unaccreted discount
of the Wendy’s 6.25% senior notes, and the write-off of deferred costs associated with the repayment of the prior
senior secured term loan.
(10) Reflects significant charges recorded in 2009 of $25.6 million charged to operating profit for impairment of
long-lived assets other than goodwill and $15.9 million charged to income from continuing operations and net
income related to these charges.
(11) Reflects certain significant charges recorded during 2008 for other than temporary losses on investments of
$112.7 million partially offset by $20.3 million of income tax benefit related to the above charges.
(12) Reflects certain significant charges and credits recorded during 2007 as follows: $44.6 million charged to
operating loss, consisting of merger restructuring costs of $84.8 million less $40.2 million from the gain on sale
of The Wendy’s Company’s interest in Deerfield; $16.2 million charged to loss from continuing operations and
net income representing the aforementioned $44.6 million charged to operating loss offset by $15.6 million of
income tax benefit related to the above charge, and a $12.8 million previously unrecognized prior year
contingent tax benefit related to certain severance obligations to certain of The Wendy’s Company’s former
executives.
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