Wendy's 2012 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2012 Wendy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The tables below present a rollforward of our accruals for facility relocation costs, which are included in
“Accrued expenses and other current liabilities” and “Other liabilities.”
Balance
January 1,
2012 Charges Payments
Balance
December 30,
2012
Severance, retention and other payroll costs .................... $5,345 $ 9,952 $(11,176) $4,121
Relocation costs ......................................... — 5,222 (4,722) 500
Atlanta facility closure costs ................................ — 4,541 (371) 4,170
Consulting and professional fees ............................. — 4,928 (4,848) 80
Other ................................................. — 2,126 (2,117) 9
$5,345 $26,769 $(23,234) $8,880
Balance
January 2,
2011 Charges Payments
Balance
January 1,
2012
Severance, retention and other payroll costs .................... $ — $ 5,345 $ — $5,345
Other ................................................. — 14 (14) —
$ — $ 5,359 $ (14) $5,345
Breakfast Discontinuation
During the fourth quarter of 2012, the Company reflected costs totaling $10,569 resulting from the
discontinuation of the breakfast daypart at certain restaurants consisting primarily of (1) the remaining net carrying
value of $5,277 for certain breakfast equipment and (2) amounts advanced to franchisees of $3,544 for breakfast
equipment which will not be reimbursed.
Arby’s Transaction Related Costs
As a result of the sale of Arby’s in July 2011, we expensed costs related to the Arby’s transaction during 2012
and 2011 as detailed in the table below.
Year Ended Total Incurred
Since Inception
Total Expected
to Be Incurred2012 2011
Severance, retention and other payroll costs (a) ............... $ 615 $29,194 $29,809 $29,809
Relocation costs (b) .................................... 349 1,670 2,019 2,421
Consulting and professional fees .......................... 7 2,935 2,942 2,942
Other ............................................... 278 288 566 566
1,249 34,087 35,336 35,738
Share-based compensation (a)(b) .......................... 223 6,097 6,320 6,717
$1,472 $40,184 $41,656 $42,455
(a) 2011 transaction related costs included $20,806 of costs incurred by the Company in accordance with the
termination provisions of the employment agreements for three senior executives (principally for required
payments of $14,481 and vesting of previously issued stock awards of $6,325).
(b) Relocation costs are expensed as incurred. However, payments of $750 made due to the relocation of a corporate
executive will be expensed over the three year period following this executive’s relocation in accordance with the
terms of the agreement. The agreement also included a restricted share award with a grant date fair value of $750
which is being expensed over a three year requisite service period. These expenses are the only remaining Arby’s
transaction related costs expected to be incurred.
97