Wendy's 2012 Annual Report Download - page 79

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
During the year ended January 1, 2012, Wendy’s received proceeds from dispositions of $6,113, consisting of
(1) $3,275 from the sale of five company-owned restaurants to franchisees, (2) $1,075 from the sale of land, building
and equipment related to the exercise of a purchase option by a franchisee, (3) $909 from the sale of surplus
properties and (4) $854 related to other dispositions. These sales resulted in a net gain of $885, which is included as a
reduction to “Depreciation and amortization.”
During the year ended January 2, 2011, Wendy’s received proceeds from dispositions of $3,405, consisting of
(1) $1,231 from the sale of land and a building related to the exercise of a purchase option by a franchisee, (2) $1,123
from the sale of surplus properties, (3) $821 from the sale of two company-owned restaurants and (4) $230 related to
other dispositions. These sales resulted in a net gain of $1,411, which is included as a reduction to “Depreciation and
amortization.”
Other acquisitions and dispositions by the Company for 2011 and 2010 and by Arby’s for 2010 and through
the date of its sale were not significant.
(4) DFR Notes
In June 2010, pursuant to a March 2010 agreement between the Company and Deerfield Capital Corp.
(“DFR”), The Wendy’s Company received cash proceeds of $31,330, including interest, in consideration for the
repayment and cancellation of the series A senior notes that The Wendy’s Company received from DFR (the “DFR
Notes”) in December 2007 in connection with the sale of Deerfield & Company to DFR. The proceeds represented
64.1% of the $47,986 aggregate principal amount of the DFR Notes.
The carrying amount of the DFR Notes in June 2010 was $24,983 and as a result, The Wendy’s Company
recognized income of $4,909 as the repayment proceeds exceeded the carrying value. This gain was included in
“Investment income, net” for the year ended January 2, 2011.
(5) Income (Loss) Per Share
Basic income (loss) per share for 2012, 2011 and 2010 was computed by dividing income (loss) amounts
attributable to The Wendy’s Company by the weighted average number of common shares outstanding. Income
(loss) amounts attributable to The Wendy’s Company used to calculate basic and diluted income (loss) per share were
as follows:
Year Ended
2012 2011 2010
Amounts attributable to The Wendy’s Company: ................
Income from continuing operations ....................... $5,574 $17,912 $ 18,111
Net income (loss) from discontinued operations .............. 1,509 (8,037) (22,436)
Net income (loss) ..................................... $7,083 $ 9,875 $ (4,325)
The weighted average number of shares used to calculate basic and diluted income (loss) per share were as
follows:
Year Ended
2012 2011 2010
Common stock:
Weighted average basic shares outstanding ................. 390,275 405,224 426,247
Dilutive effect of stock options and restricted shares .......... 1,865 1,956 948
Weighted average diluted shares outstanding ................ 392,140 407,180 427,195
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