Wendy's 2013 Annual Report Download - page 89

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Sale of Investment in Jurlique International Pty Ltd.
On February 2, 2012, Jurl Holdings, LLC (“Jurl”), a 99.7% owned subsidiary completed the sale of our
investment in Jurlique International Pty Ltd. (“Jurlique”), an Australian manufacturer of skin care products, for
which we received proceeds of $27,287, net of the amount held in escrow. In connection with the anticipated
proceeds of the sale and in order to protect ourselves from a decrease in the Australian dollar through the closing date,
we entered into a foreign currency related derivative transaction for an equivalent notional amount in U.S. dollars of
the expected proceeds of A$28,500. During the year ended December 30, 2012, we recorded a gain on sale of this
investment of $27,407, which included a loss of $2,913 on the settlement of the derivative transaction discussed
above. The gain was included in “Investment income, net” in our consolidated statement of operations. During the
year ended December 29, 2013, we collected $1,166 of the escrow. We determined that $799 of the remaining
escrow would not be received and recorded the reduction of our escrow receivable to “Investment income, net.” The
remaining escrow of $964 as of December 29, 2013, which was adjusted for foreign currency translation and included
in “Deferred costs and other assets,” is considered collectible.
We have reflected net income attributable to noncontrolling interests of $2,384, net of an income tax benefit of
$1,283, for the year ended December 30, 2012 in connection with the equity and profit interests discussed below.
The net assets and liabilities of the subsidiary that held the investment were not material to the consolidated financial
statements. Therefore, the noncontrolling interest in those assets and liabilities was not previously reported separately.
As a result of this sale and distributions to the minority shareholders, there are no remaining noncontrolling interests
in this consolidated subsidiary.
Prior to 2009 when our predecessor entity was a diversified company active in investments, we had provided
our Chairman, who was also our then Chief Executive Officer, and our Vice Chairman, who was our then President
and Chief Operating Officer (the “Former Executives”), and certain other former employees, equity and profit
interests in Jurl. In connection with the gain on sale of Jurlique, we distributed, based on the related agreement,
approximately $3,667 to Jurl’s minority shareholders, including approximately $2,296 to the Former Executives.
(7) Properties
Year End
2013 2012
Owned:
Land ................................................... $ 384,847 $ 400,571
Buildings and improvements ................................ 454,805 421,127
Office, restaurant and transportation equipment ................. 389,161 446,022
Leasehold improvements .................................... 374,586 345,415
Leased:
Capital leases (a) .......................................... 36,126 36,551
1,639,525 1,649,686
Accumulated depreciation and amortization (b) ...................... (474,038) (399,348)
$1,165,487 $1,250,338
(a) These assets principally include buildings and improvements.
(b) Includes $38,190 of accelerated depreciation and amortization during the year ended December 29, 2013 on
certain long-lived assets to reflect their use over shortened estimated useful lives as a result of the reimaging of
restaurants as part of our Image Activation program. Also includes $14,911 and $10,273 of accumulated
amortization related to capital leases at December 29, 2013 and December 30, 2012, respectively.
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