Wendy's 2014 Annual Report Download - page 80

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Facilities Relocation and Other Transition Costs
As announced in December 2011, we commenced the relocation of the Company’s Atlanta restaurant support
center to Ohio, which was substantially completed during 2012. The Company did not incur any expenses during
2014 and does not expect to incur additional costs related to the relocation.
Year Ended Total Incurred
Since Inception2013 2012
Severance, retention and other payroll costs .................. $1,856 $ 9,952 $17,153
Relocation costs ....................................... 1,898 5,222 7,120
Atlanta facility closure costs .............................. 337 4,541 4,878
Consulting and professional fees ........................... 128 4,928 5,056
Other ............................................... 355 2,126 2,495
4,574 26,769 36,702
Accelerated depreciation expense........................... — 1,921 2,118
Share-based compensation ............................... — 300 271
Total ............................................ $4,574 $28,990 $39,091
As of December 28, 2014, our accruals for facilities relocation and other transition costs, which are included in
“Accrued expenses and other current liabilities” and “Other liabilities,” totaled $2,259 and related to Atlanta facility
closure costs.
The table below presents a rollforward of our accruals for facilities relocation and other transition costs during
2013, which were included in “Accrued expenses and other current liabilities” and “Other liabilities.”
Balance
December 30,
2012 Charges Payments
Balance
December 29,
2013
Severance, retention and other payroll costs .................. $4,121 $1,856 $(5,038) $ 939
Relocation costs ....................................... 500 1,898 (2,398) —
Atlanta facility closure costs .............................. 4,170 337 (1,733) 2,774
Consulting and professional fees .......................... 80 128 (208) —
Other .............................................. 9 355 (364) —
$8,880 $4,574 $(9,741) $3,713
Breakfast Discontinuation
During 2013 and 2012, the Company reflected costs totaling $1,118 and $10,569, respectively, resulting from
the discontinuation of the breakfast daypart at certain restaurants. Costs during 2013 primarily consisted of the
remaining carrying value of breakfast related equipment no longer being used. Costs during 2012 consisted primarily
of (1) the remaining net carrying value of $5,277 for certain breakfast equipment and (2) amounts advanced to
franchisees of $3,544 for breakfast equipment which will not be reimbursed.
Arby’s Transaction Related Costs
As a result of the sale of Arby’s in July 2011, we expensed costs related to the Arby’s transaction during 2013
and 2012 of $263 and $1,472, respectively, and $41,919 since inception. The Company did not incur any expenses
during 2014 and does not expect to incur additional costs related to the transaction. Costs paid during 2013 totaled
$959 and were primarily for severance, retention and other payroll costs. As of December 29, 2013, no accrual
remained.
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