Wendy's 2012 Annual Report Download - page 98

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The following table summarizes activity of performance shares during 2012:
Performance Condition Awards Market Condition Awards
Shares
Weighted
Average Grant
Date Fair
Value Shares
Weighted
Average Grant
Date Fair
Value
Non-vested at January 1, 2012 .......................... 655 $3.91 1,441 $6.46
Granted ............................................ — — 896 6.04
Dividend equivalent units issued (a) ...................... 11 — 39 —
Vested ............................................. — — — —
Forfeited ........................................... (155) 3.91 (229) 6.37
Non-vested at December 30, 2012 ....................... 511 $3.91 2,147 $6.38
(a) Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no
weighted average fair value associated with dividend equivalent units.
The total fair value of awards that were accelerated to vest during 2011 was $3,615.
Modifications of Share-Based Awards
During 2011, the Company modified the terms of awards granted to 168 employees in connection with the
sale of Arby’s and the announcement of the relocation of the Company’s Atlanta restaurant support center to Ohio.
These modifications resulted in (1) the accelerated vesting of stock options and restricted share units upon the
termination of such employees and (2) a reduction in share-based compensation expense of $614 for 2011. Of this
amount, $253 is included in discontinued operations and $361 is included in “Facilities relocation costs and other
transactions.”
Share-Based Compensation Expense
Total share-based compensation expense and the related income tax benefit recognized in the Company’s
consolidated statements of operations were as follows:
Year Ended
2012 2011 2010
Stock options (a) .................................................... $ 5,578 $ 9,898 $ 7,700
Restricted Shares .................................................... 2,730 1,943 2,311
Performance Shares: ..................................................
Performance Condition Shares ..................................... — 820 —
Market Condition Shares (b) ....................................... 3,210 4,688 478
Compensation adjustments, net (c) ...................................... (45) (361) —
Compensation expense credited to “Stockholders’ Equity” (d) .................. 11,473 16,988 10,489
Interest on Restricted Share dividends .................................... — 2 3
Total share-based compensation expense .................................. 11,473 16,990 10,492
Less: Income tax benefit ............................................... (4,286) (6,338) (3,773)
Share-based compensation expense, net of income tax benefit .................. $ 7,187 $10,652 $ 6,719
(a) 2011 includes expense of $3,068 for the accelerated vesting of awards in conjunction with the sale of Arby’s and
the announcement of the relocation of the Company’s Atlanta restaurant support center to Ohio.
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