Wendy's 2015 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2015 Wendy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

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 at Target during 2015:
Performance Condition Awards Market Condition Awards
Shares
Weighted
Average Grant
Date Fair
Value Shares
Weighted
Average Grant
Date Fair
Value
Non-vested at December 28, 2014 ....................... 933 $ 8.81 668 $ 6.04
Granted ........................................... 172 11.15 112 17.08
Dividend equivalent units issued (a) ...................... 20 — 8 —
Vested (b) .......................................... (104) 8.56 (664) 6.05
Forfeited ........................................... (104) 9.33 (20) 11.81
Non-vested at January 3, 2016 .......................... 917 $ 9.23 104 $17.08
(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.
(b) Excludes the vesting of an additional 306 shares, which resulted from the performance of market condition
awards exceeding Target.
The total fair value of performance condition awards that vested in 2015, 2014 and 2013 was $1,156, $104
and $1,767, respectively. The total fair value of market condition awards that vested in 2015, 2014 and 2013 was
$10,073, $6,382 and $289, respectively.
Modifications of Share-Based Awards
During 2015, 2014 and 2013, the Company modified the terms of awards granted to 25, 45 and 20
employees, respectively, in connection with its system optimization initiative and G&A realignment plan discussed in
Note 5 as well as the Bakery sale discussed in Note 2. These modifications resulted in the accelerated vesting of
certain stock options and performance-based awards upon termination of such employees. As a result, during 2015,
the Company recognized net increases in share-based compensation of $5,977, of which $5,624, $181 and $172 was
included in “Reorganization and realignment costs,” “General and administrative” and “Net income (loss) from
discontinued operations,” respectively, as a result of the modifications. During 2014 and 2013, the Company
recognized net increases in share-based compensation of $2,376 and $986, respectively, of which $4,472 and
$1,253 was included in “Reorganization and realignment costs” respectively, with offsetting reductions to “General
and administrative” of $2,096 and $267 during 2014 and 2013, respectively.
Share-Based Compensation
Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated
statements of operations were as follows:
Year Ended
2015 2014 2013
Stock options ...................................................... $10,081 $ 13,692 $ 7,223
Restricted Shares ................................................... 4,834 4,495 3,907
Performance shares:
Performance condition awards ..................................... 888 7,456 2,007
Market condition awards ......................................... 1,348 37 5,279
Modifications, net .................................................. 5,805 2,376 1,042
Share-based compensation (a) .......................................... 22,956 28,056 19,458
Less: Income tax benefit (a) ........................................... (8,380) (10,357) (7,235)
Share-based compensation, net of income tax benefit ........................ $14,576 $ 17,699 $12,223
107