Wendy's 2012 Annual Report Download - page 101

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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 accrual for Arby’s transaction related costs, which is included in
“Accrued expenses and other current liabilities.”
Balance
January 1,
2012 Charges Payments
Balance
December 30,
2012
Severance, retention and other payroll costs .................... $14,414 $ 615 $(14,333) $ 696
Relocation costs ......................................... 1,101 349 (1,450) —
Consulting and professional fees ............................. — 7 (7) —
Other ................................................. — 278 (278) —
$15,515 $ 1,249 $(16,068) $ 696
Balance
January 2,
2011 Charges Payments
Balance
January 1,
2012
Severance, retention and other payroll costs .................... $ — $29,194 $(14,780) $14,414
Relocation costs ......................................... — 1,670 (569) 1,101
Consulting and professional fees ............................. — 2,935 (2,935) —
Other ................................................. — 288 (288) —
$ — $34,087 $(18,572) $15,515
(18) Impairment of Long-Lived Assets
Our company-owned restaurant impairment losses included in the table below predominantly reflect
impairment charges on restaurant-level assets resulting from the deterioration in operating performance of certain
restaurants and additional charges for capital improvements in restaurants impaired in prior years which did not
subsequently recover. Additionally, in 2012 and 2010, our impairment losses included write-downs in the carrying
value of certain surplus properties and properties held for sale.
During 2012, we closed 15 company-owned restaurants in connection with our review of certain
underperforming locations. The closing of these restaurants resulted in an impairment charge of $3,270. In addition,
we incurred costs related to these restaurant closings of $1,477, primarily for continuing lease obligations, which are
included in “Other operating expense, net.”
Also during 2012, we reclassified a company-owned aircraft as held and used from its previous held for sale
classification. For the year ended December 30, 2012, the Company recorded an impairment charge of $1,628 on the
company-owned aircraft. As of December 30, 2012, the carrying value of the aircraft, which reflects current market
conditions, approximated its fair value and is included in “Properties.” See Note 23 for information regarding an
amended and restated lease agreement for the company-owned aircraft.
These impairment losses, as detailed in the following table, represented the excess of the carrying amount over
the fair value of the affected assets and are included in “Impairment of long-lived assets.”
Year Ended
2012 2011 2010
Properties .............................................. $17,712 $10,120 $21,201
Intangible assets .......................................... 1,757 2,763 5,125
Aircraft ................................................ 1,628 — —
$21,097 $12,883 $26,326
98