Wendy's 2012 Annual Report Download - page 77

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
(b) Included in “Other liabilities.”
(c) This goodwill is not deductible or amortizable for income tax purposes.
The preliminary fair values of the identifiable assets acquired were determined using one of the following
valuation approaches: market, income and cost. The selection of a particular method for a given asset depended on
the reliability of available data and the nature of the asset.
The unaudited pro forma revenue and earnings of the combined companies had the acquisition date been
January 3, 2011 are as follows:
Year Ended 2012 Year Ended 2011
As Reported As Adjusted As Reported As Adjusted
Revenues:
Sales ....................................... $2,198,323 $2,218,199 $2,126,544 $2,171,509
Franchise revenues ............................ 306,919 306,122 304,814 303,003
Total revenues ........................... 2,505,242 2,524,321 2,431,358 2,474,512
Operating profit .................................. 122,747 123,823 137,121 139,695
Net income ...................................... 9,467 10,342 9,875 11,834
Net income attributable to The Wendy’s Company ....... 7,083 7,958 9,875 11,834
Basic and diluted net income per share ................. $ 0.02 $ 0.02 $ 0.02 $ 0.03
This As Adjusted data is presented for comparative purposes only and does not purport to be indicative of the
Company’s actual results of operations had the Pisces Acquisition actually occurred as of January 3, 2011 or of the
Company’s future results of operations. Wendy’s did not have any material non-recurring adjustments associated with
the Pisces Acquisition.
Other acquisitions
On July 13, 2012, Wendy’s acquired 24 franchised restaurants in the Albuquerque, New Mexico area from
Double Cheese Corporation and Double Cheese Realty Corporation (“Double Cheese”). The purchase price was
$19,181 in cash, including closing adjustments. Wendy’s also agreed to lease the real estate, buildings and
improvements related to 12 of the acquired restaurants from Double Cheese which were considered part of the
purchase transaction. Wendy’s did not incur any material acquisition-related costs with this acquisition.
The operating results of the 24 franchised restaurants acquired have been included in our consolidated financial
statements beginning on the acquisition date. Such results were not material to our consolidated financial statements.
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