Facilities Relocation and Other Transition Costs

As announced in December 2011, we are relocating the Companies’ Atlanta restaurant support center to Ohio. Wendy’s Restaurants expects to expense costs aggregating approximately $28,000 in 2012 and $2,600 in 2013 related to its relocation and other transition activities which are anticipated to be substantially complete by the end of 2012. The costs expected to be expensed in 2013 primarily relate to severance and other costs for employees who will be assisting in the transition activities through the early part of 2013.

The components of “Facilities relocation and other transition costs” for the three months ended April 1, 2012, as well as the total expected to be incurred and total incurred since inception are presented in the table below:



	Three Months Ended		Total Incurred		Total Expected
	April 1, 2012		Since Inception		to be Incurred
Severance, retention and other payroll costs	$	2,999	$	8,344	$	12,849
Relocation costs	576		576		6,652
Existing facilities closure costs	—		—		5,537
Consulting and professional fees	885		885		6,042
Other	430		415		3,090
	4,890		10,220		34,170
Accelerated depreciation	641		838		1,925
Total	$	5,531	$	11,058	$	36,095

The increase in the Total Expected to be Incurred noted above as compared to our 2011 year end estimate relates primarily to professional fees that became determinable during our 2012 first quarter.

An analysis of related activity in the facilities relocation and other transition costs accrual which is included in “Accrued expenses and other current liabilities” is as follows:



	Balance January 1, 2012		Charges		Payments			Balance April 1, 2012
Severance, retention and other payroll costs	$	5,345	$	2,999	$	(770	)	$	7,574
Relocation costs	—		576		(290		)	286
Consulting and professional fees	—		885		(403		)	482
Other	—		430		(159		)	271
	$	5,345	$	4,890	$	(1,622	)	$	8,613