Wendy's 2015 Annual Report Download - page 111

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
(a) Excludes $275, $187 and $155 of pre-tax share-based compensation and $106, $72 and $60 of related income
tax benefits for 2015, 2014 and 2013, respectively, which are included in “Net income (loss) from discontinued
operations.”
As of January 3, 2016, there was $18,239 of total unrecognized share-based compensation, which will be
recognized over a weighted average amortization period of 2.2 years.
(17) Impairment of Long-Lived Assets
During the years ended January 3, 2016, December 28, 2014 and December 29, 2013, the Company recorded
impairment charges on long-lived assets as a result of (1) the Company’s decision to lease and/or sublease properties to
franchisees in connection with the sale or anticipated sale of company-owned restaurants, (2) the deterioration in
operating performance of certain company-owned restaurants and charges for capital improvements in restaurants
impaired in prior years which did not subsequently recover and (3) closing company-owned restaurants and
classifying such properties as held for sale. The Company may recognize additional impairment charges resulting from
leasing or subleasing additional properties to franchisees in connection with sales of company-owned restaurants to
franchisees.
During 2013, the Company decided to sell its company-owned aircraft and recorded an impairment charge of
$5,327 to reflect the aircraft at fair value based on current market values. The aircraft were sold during 2014 resulting
in a net loss of $261.
The following is a summary of impairment losses recorded, which represent the excess of the carrying amount
over the fair value of the affected assets and are included in “Impairment of long-lived assets.”
Year Ended
2015 2014 2013
Restaurants leased or subleased to franchisees ................... $19,214 $11,993 $20,506
Company-owned restaurants ................................ 3,132 5,146 9,094
Surplus properties ........................................ 2,655 2,474 1,458
Aircraft ................................................ — — 5,327
$25,001 $19,613 $36,385
(18) Investment Income, Net
Year Ended
2015 2014 2013
Distributions, including dividends (a) .......................... $54,911 $ 184 $24,113
Gain (loss) on sale of investments, net .......................... 335 975 (799)
Other than temporary loss on cost method investment ............. (3,150) — —
Other, net ............................................... 118 40 251
$52,214 $1,199 $23,565
(a) During 2015, we received a dividend of $54,911 from our investment in Arby’s, which was recognized in
“Investment income, net.” During 2013, we received a dividend of $40,145 from our investment in Arby’s, of
which $21,145 was recognized in “Investment income, net,” with the remainder recorded as a reduction to the
carrying value of our investment in Arby’s. See Note 8 for further information.
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