Wendy's 2014 Annual Report Download - page 78

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Gain on Sales of Restaurants, Net
Year Ended
2014 2013
Number of restaurants sold to franchisees .............................. 203 244
Proceeds from sales of restaurants .................................... $107,833 $130,154
Net assets sold (a) ................................................ (46,874) (60,895)
Goodwill related to sales of restaurants ................................ (14,688) (20,578)
Net favorable (unfavorable) lease assets (liabilities) (b) .................... 28,105 (57)
Other (c) ...................................................... (3,465) (1,957)
70,911 46,667
Post-closing adjustments on sales of restaurants ......................... (1,280) —
Gain on sales of restaurants, net ................................. $ 69,631 $ 46,667
(a) Net assets sold consisted primarily of cash, inventory and equipment.
(b) During 2014 and 2013, the Company recorded favorable lease assets of $53,750 and $37,749, respectively, and
unfavorable lease liabilities of $25,645 and $37,806, respectively, as a result of leasing and/or subleasing land,
buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants.
(c) 2014 includes a deferred gain of $1,995 on the sale of eight Canadian restaurants to a franchisee, as a result of
Wendy’s providing a guarantee to a lender on behalf of the franchisee. This deferred gain is included in “Other
liabilities.” See Note 20 for further information.
The tables below present a rollforward of our accrual for our system optimization initiative, which is included
in “Accrued expenses and other current liabilities.”
Balance
December 29,
2013 Charges Payments
Balance
December 28,
2014
Severance and related employee costs ....................... $7,051 $ 7,608 $(12,424) $2,235
Professional fees ....................................... 137 3,424 (3,415) 146
Other .............................................. 260 3,678 (3,515) 423
$7,448 $14,710 $(19,354) $2,804
Balance
December 30,
2012 Charges Payments
Balance
December 29,
2013
Severance and related employee costs ........................ $— $ 9,650 $(2,599) $7,051
Professional fees ........................................ — 2,389 (2,252) 137
Other ............................................... — 863 (603) 260
$— $12,902 $(5,454) $7,448
Assets Held for Sale
Year End
2014 2013
Number of restaurants classified as held for sale ........................... 102 181
Net assets held for sale .............................................. $24,416 $29,630
74