Wendy's 2014 Annual Report Download - page 83

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
above, (2) $8,699 primarily from the sale of surplus properties and (3) $8,616 from the sale of company-owned
aircraft. These sales resulted in a net gain of $21,948 which is included in “Other operating expense, net,” and a
reduction to goodwill of $3,344 related to the sale of company-owned restaurants. In connection with certain sales of
the company-owned restaurants, we received notes receivable of $3,934 from franchisees. As a result we have deferred
the gains on such sales totaling $5,116, which will be recognized when the notes are repaid. The deferred gains on
these dispositions are included in “Accrued expenses and other current liabilities.”
During the year ended December 29, 2013, Wendy’s received cash proceeds of $18,958 from dispositions not
included in the system optimization initiative, consisting of (1) $10,305 primarily from the sale of surplus properties
and (2) $8,653 resulting from franchisees exercising options to purchase previously leased properties. These sales
resulted in a net gain of $4,705 which is included in “Other operating expense, net.”
During the year ended December 30, 2012, Wendy’s received cash proceeds of $21,023 from dispositions,
consisting of (1) $14,059 from the sale of 30 company-owned restaurants to franchisees, (2) $1,874 from the sale of a
restaurant to an unrelated third party, (3) $3,550 resulting from franchisees exercising options to purchase previously
subleased properties, (4) $941 related to the sale of surplus properties and (5) $599 related to other dispositions.
These sales resulted in a net loss of $22.
See Note 2 for discussion of restaurant dispositions in connection with our system optimization initiative.
(4) Income (Loss) Per Share
Basic income (loss) per share for 2014, 2013 and 2012 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
2014 2013 2012
Amounts attributable to The Wendy’s Company:
Income from continuing operations ....................... $121,434 $45,753 $5,574
Net (loss) income from discontinued operations ............. — (266) 1,509
Net income ......................................... $121,434 $45,487 $7,083
The weighted average number of shares used to calculate basic and diluted income (loss) per share were as
follows:
Year Ended
2014 2013 2012
Common stock:
Weighted average basic shares outstanding ................. 370,160 392,585 390,275
Dilutive effect of stock options and restricted shares .......... 6,022 6,095 1,865
Weighted average diluted shares outstanding ................ 376,182 398,680 392,140
Diluted income per share was computed by dividing income attributable to The Wendy’s Company by the
weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options
and restricted shares. For 2014, 2013 and 2012, we excluded 4,946, 10,823 and 23,406, respectively, of potential
common shares from our diluted income per share calculation as they would have had anti-dilutive effects.
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