Wendy's 2012 Annual Report Download - page 102

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Arby’s company-owned impairment losses of $43,151 in 2010 are included in discontinued operations and not
included in the table above. Arby’s impairment losses in 2010 predominantly reflected 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. These
impairment losses represented the excess of the carrying amount over the fair value of the affected assets. Arby’s
impairment losses for the period from January 3, 2011 through July 3, 2011 were not significant. See Note 2 for
further information on discontinued operations.
(19) Investment Income, Net
Year Ended
2012 2011 2010
Gain on sale of investments, net (a) .............................. $27,769 $250 $ 179
Distributions, including dividends (b) ............................ 8,463 234 248
Gain on DFR Notes .......................................... — — 4,909
Other, net .................................................. 11 — (77)
$36,243 $484 $5,259
(a) In 2012, we recorded a gain on the sale of our investment in Jurlique of $27,407, which included a loss of
$2,913 on the settlement of the derivative transaction discussed in Note 8.
(b) During 2012, we received a $4,625 dividend from our investment in Arby’s.
(20) Retirement Benefit Plans
401(k) Plan
Subject to certain restrictions, the Company has a 401(k) defined contribution plan (the “401(k) Plan”) for all
of its employees who meet certain minimum requirements and elect to participate. The 401(k) Plan permits
employees to contribute up to 75% of their compensation, subject to certain limitations and provides for matching
employee contributions up to 4% of compensation and for discretionary profit sharing contributions.
In connection with the matching and profit sharing contributions, the Company recognized compensation
expense of $8,887, $7,944 and $10,179 in 2012, 2011 and 2010, respectively.
Pension Plans
The Wendy’s Company maintains two domestic qualified defined benefit plans, the benefits under which were
frozen in 1988 and for which The Wendy’s Company has no unrecognized prior service cost. Arby’s employees who
were eligible to participate through 1988 (the “Eligible Arby’s Employees”) are covered under one of these plans.
Pursuant to the terms of the Arby’s sale agreement, liabilities related to the Eligible Arby’s Employees under these
plans were retained by Wendy’s Restaurants. In addition, Wendy’s Restaurants received $400 from Buyer for the
unfunded liability related to the Eligible Arby’s Employees under the plans as of July 4, 2011. In conjunction with the
sale of Arby’s, Wendy’s Restaurants transferred the liabilities related to the Eligible Arby’s Employees to The Wendy’s
Company. The measurement date used by The Wendy’s Company in determining amounts related to its defined
benefit plans is the same as the Company’s fiscal year end.
The balance of the accumulated benefit obligations and the fair value of the plans’ assets at December 30, 2012
were $4,211 and $2,706, respectively. As of January 1, 2012, the balance of the accumulated benefit obligations and
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