Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2015 | Jul. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WENDY'S CO | |
Entity Central Index Key | 30,697 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 290,282,990 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 1,197,567 | $ 267,112 | |
Accounts and notes receivable | 70,515 | 68,211 | |
Inventories | 5,791 | 6,861 | |
Prepaid expenses and other current assets | 115,543 | 72,258 | |
Deferred income tax benefit | 81,720 | 73,661 | |
Advertising funds restricted assets | 82,783 | 65,308 | |
Current assets of discontinued operations | 0 | 8,691 | |
Total current assets | 1,553,919 | 562,102 | |
Properties | 1,254,489 | 1,241,170 | |
Goodwill | 795,737 | 822,562 | |
Other intangible assets | 1,359,485 | 1,351,307 | |
Investments | 70,715 | 74,054 | |
Other assets | 72,200 | 56,272 | |
Noncurrent assets of discontinued operations | 0 | 30,132 | |
Total assets | 5,106,545 | 4,137,599 | |
Current liabilities: | |||
Current portion of long-term debt | [1] | 17,595 | 53,202 |
Accounts payable | 67,346 | 77,309 | |
Accrued expenses and other current liabilities | 130,176 | 125,880 | |
Advertising funds restricted liabilities | 82,783 | 65,308 | |
Current liabilities of discontinued operations | 0 | 18,525 | |
Total current liabilities | 297,900 | 340,224 | |
Long-term debt | 2,379,782 | 1,384,972 | |
Deferred income taxes | 473,450 | 493,843 | |
Other liabilities | 216,987 | 199,833 | |
Noncurrent liabilities of discontinued operations | 0 | 1,151 | |
Liabilities | $ 3,368,119 | $ 2,420,023 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued | $ 47,042 | $ 47,042 | |
Additional paid-in capital | 2,879,506 | 2,826,965 | |
Accumulated deficit | (418,410) | (445,917) | |
Common stock held in treasury, at cost; 106,336 and 104,614 shares, respectively | (723,279) | (679,220) | |
Accumulated other comprehensive loss | (46,433) | (31,294) | |
Total stockholders’ equity | 1,738,426 | 1,717,576 | |
Total liabilities and stockholders’ equity | $ 5,106,545 | $ 4,137,599 | |
[1] | Capital lease obligations as of December 28, 2014 and the related amounts payable within one year have been updated to exclude the Bakery’s capital lease obligations as a result of the sale of the Bakery during the second quarter of 2015 and the presentation as discontinued operations in our condensed consolidated balance sheet as of December 28, 2014. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Balance Sheet Parentheticals - $ / shares shares in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Common Stock, Shares Issued | 470,424 | 470,424 |
Treasury Stock, Shares | 106,336 | 104,614 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |||
Revenues: | ||||||
Sales | $ 385,048 | $ 407,651 | $ 742,617 | $ 825,722 | ||
Franchise revenues | 104,486 | 98,428 | 198,686 | 188,807 | ||
Revenues | 489,534 | 506,079 | 941,303 | 1,014,529 | ||
Costs and expenses: | ||||||
Cost of sales | 315,122 | 335,141 | 620,233 | 698,506 | ||
General and administrative | 60,771 | 66,433 | 120,469 | 136,044 | ||
Depreciation and amortization | 39,335 | 37,998 | 74,880 | 78,578 | ||
System optimization gains, net | (15,654) | (1,418) | [1] | (14,849) | (74,395) | [1] |
Reorganization and realignment costs | 6,279 | 1,276 | [2] | 10,892 | 15,987 | [2] |
Impairment of long-lived assets | 10,018 | 77 | 11,955 | 2,606 | ||
Other operating expense, net | 9,355 | 5,403 | 15,504 | 8,760 | ||
Costs and expenses | 425,226 | 444,910 | 839,084 | 866,086 | ||
Operating profit | 64,308 | 61,169 | 102,219 | 148,443 | ||
Interest expense | (17,201) | (13,083) | (29,944) | (26,025) | ||
Loss on early extinguishment of debt | (7,295) | 0 | (7,295) | 0 | ||
Other income, net | 272 | 856 | 511 | 1,377 | ||
Income from continuing operations before income taxes | 40,084 | 48,942 | 65,491 | 123,795 | ||
Provision for income taxes | (15,259) | (21,615) | (22,516) | (51,459) | ||
Income from continuing operations | 24,825 | 27,327 | 42,975 | 72,336 | ||
Income from discontinued operations, net of income taxes | 231 | 1,680 | 9,588 | 2,974 | ||
Gain on disposal of discontinued operations, net of income taxes | 15,139 | 0 | 15,139 | 0 | ||
Net income from discontinued operations | 15,370 | 1,680 | 24,727 | 2,974 | ||
Net income | $ 40,195 | $ 29,007 | $ 67,702 | $ 75,310 | ||
Basic net income per share: | ||||||
Continuing operations | $ 0.07 | $ 0.07 | $ 0.12 | $ 0.19 | ||
Discontinued operations | 0.04 | 0 | 0.07 | 0.01 | ||
Net income | 0.11 | 0.08 | 0.19 | 0.20 | ||
Diluted net income per share: | ||||||
Continuing operations | 0.07 | 0.07 | 0.12 | 0.19 | ||
Discontinued operations | 0.04 | 0 | 0.07 | 0.01 | ||
Net income | 0.11 | 0.08 | 0.18 | 0.20 | ||
Dividends per share | $ 0.055 | $ 0.05 | $ 0.11 | $ 0.10 | ||
[1] | Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. | |||||
[2] | Previously titled “Facilities action charges (income), net.” |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Net income | $ 40,195 | $ 29,007 | $ 67,702 | $ 75,310 |
Other comprehensive income (loss), net: | ||||
Foreign currency translation adjustment | 4,901 | 8,195 | (12,494) | 975 |
Change in unrecognized pension loss, net of income tax benefit (provision) of $124 and $(213), respectively | 0 | 0 | (203) | 338 |
Change in unrealized loss on cash flow hedges, net of income tax (provision) benefit of $(12) and $1,234 for the three months and $1,490 and $1,521 for the six months ended June 28, 2015 and June 29, 2014, respectively | 24 | (1,960) | (2,442) | (2,418) |
Other comprehensive income (loss), net | 4,925 | 6,235 | (15,139) | (1,105) |
Comprehensive income | $ 45,120 | $ 35,242 | $ 52,563 | $ 74,205 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrecognized pension loss, income tax benefit (provision) | $ 0 | $ 0 | $ 124 | $ (213) |
Change in unrealized loss on cash flow hedges, income tax benefit | $ (12) | $ 1,234 | $ 1,490 | $ 1,521 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Cash flows from operating activities: | |||||
Net income | $ 40,195 | $ 29,007 | $ 67,702 | $ 75,310 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 78,799 | 81,991 | |||
Share-based compensation | 12,242 | 15,158 | |||
Impairment of long-lived assets | 10,018 | 77 | 11,955 | 2,606 | $ 19,613 |
Deferred income tax | 19,730 | 47,855 | |||
Excess tax benefits from share-based compensation | (46,374) | (17,667) | |||
Non-cash rent expense, net | 2,607 | 2,528 | |||
Net receipt of deferred vendor incentives | 8,396 | 13,882 | |||
System optimization gains, net | (14,881) | (74,432) | |||
Gain on disposal of Bakery | (27,338) | 0 | |||
Distributions received from TimWen joint venture | 5,825 | 6,443 | |||
Equity in earnings in joint venture, net | (4,545) | (4,872) | |||
Payments for termination of cash flow hedges | (7,337) | 0 | |||
Loss on early extinguishment of debt | 7,295 | 0 | 7,295 | 0 | |
Accretion of long-term debt | 600 | 592 | |||
Amortization of deferred financing costs | 1,589 | 1,193 | |||
Other, net | 1,060 | (7,831) | |||
Changes in operating assets and liabilities: | |||||
Restricted cash | (27,190) | 0 | |||
Accounts and notes receivable | (14,876) | (9,650) | |||
Inventories | 168 | 1,200 | |||
Prepaid expenses and other current assets | (3,869) | (7,197) | |||
Accounts payable | 10,664 | (3,699) | |||
Accrued expenses and other current liabilities | (29,108) | (42,401) | |||
Net cash provided by operating activities | 53,114 | 81,009 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (130,548) | (114,521) | |||
Acquisitions | (1,232) | (2,335) | |||
Dispositions | 38,697 | 116,204 | |||
Proceeds from sale of Bakery | 78,408 | 0 | |||
Payments for cost method investments | (2,000) | (400) | |||
Change in restricted cash | 484 | 1,750 | |||
Other, net | 919 | 1,441 | |||
Net cash (used in) provided by investing activities | (15,272) | 2,139 | |||
Cash flows from financing activities: | |||||
Proceeds from long-term debt | 2,275,000 | 0 | |||
Repayments of long-term debt | (1,302,055) | (19,486) | |||
Deferred financing costs | (39,374) | 0 | |||
Repurchases of common stock | (63,206) | (277,275) | |||
Dividends | (40,189) | (36,648) | |||
Proceeds from stock option exercises | 19,688 | 23,800 | |||
Excess tax benefits from share-based compensation | 46,374 | 17,667 | |||
Net cash provided by (used in) financing activities | 896,238 | (291,942) | |||
Net cash provided by (used in) operations before effect of exchange rate changes on cash | 934,080 | (208,794) | |||
Effect of exchange rate changes on cash | (3,789) | 302 | |||
Net increase (decrease) in cash and cash equivalents | 930,291 | (208,492) | |||
Cash and cash equivalents at beginning of period | 267,276 | 580,152 | 580,152 | ||
Cash and cash equivalents at end of period | $ 1,197,567 | $ 371,660 | 1,197,567 | 371,660 | $ 267,276 |
Cash paid for: | |||||
Interest | 27,452 | 26,225 | |||
Income taxes, net of refunds | 11,845 | 6,699 | |||
Supplemental non-cash investing and financing activities: | |||||
Capital expenditures included in accounts payable | 30,927 | 39,273 | |||
Capitalized lease obligations | 20,210 | 9,113 | |||
Notes receivable | 2,023 | 0 | |||
Accrued debt issuance costs | $ 3,720 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments necessary to present fairly our financial position as of June 28, 2015 and the results of our operations for the three and six months ended June 28, 2015 and June 29, 2014 and cash flows for the six months ended June 28, 2015 and June 29, 2014 . The results of operations for the three and six months ended June 28, 2015 are not necessarily indicative of the results to be expected for the full 2015 fiscal year. These Financial Statements should be read in conjunction with the audited consolidated financial statements for The Wendy’s Company and notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2014 (the “Form 10-K”). The principal subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business geographically. The operation and franchising of Wendy’s ® restaurants in North America (defined as the United States of America (“U.S.”) and Canada) comprises virtually all of our current operations and represents a single reportable segment. The revenues and operating results of Wendy’s restaurants outside of North America are not material. We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to December 31. All three month and six month periods presented herein contain 13 weeks and 26 weeks, respectively. Our current 2015 fiscal year, ending on January 3, 2016, will contain 53 weeks and, accordingly, our fourth quarter of 2015 will contain 14 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. On May 31, 2015, Wendy’s completed the sale of its company-owned bakery, The New Bakery Company, LLC (the “Bakery”), a 100% owned subsidiary of Wendy’s. As a result of the sale of the Bakery, as further discussed in Note 2, the Bakery’s results of operations for all periods presented and the gain on disposal have been included in “Net income from discontinued operations” in our condensed consolidated statements of operations. Additionally, the Bakery’s assets and liabilities have been presented as discontinued operations in our condensed consolidated balance sheet as of December 28, 2014. Certain reclassifications have been made to the prior year presentation to conform to the current year presentation. During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs to be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. Refer to Note 7 and Note 16 for further information. Prior to fiscal 2015, the Company reported its system optimization initiative as a discrete event and separately included the related gain or loss on sales of restaurants, impairment losses and other associated costs, along with other restructuring initiatives, in “Facilities action charges (income), net.” In February 2015, the Company announced plans to reduce its ongoing company-owned restaurant ownership to approximately 5% of the total system and further emphasized that restaurant dispositions and acquisitions are a continuous and integrated part of the overall strategy to optimize its restaurant portfolio. As a result, commencing with the first quarter of 2015, all gains and losses on dispositions are included on a separate line in our condensed consolidated statements of operations, “System optimization gains, net” and impairment losses recorded in connection with the sale or anticipated sale of restaurants (“System Optimization Remeasurement”) are reclassified to “Impairment of long-lived assets.” In addition, the Company retitled the line, “Facilities action charges (income), net” to “Reorganization and realignment costs” in our condensed consolidated statements of operations to better describe the current and historical initiatives included given the reclassifications described above. The Company believes the new presentation will aid users in understanding its results of operations. The prior periods reflect reclassifications to conform to the current year presentation. All amounts being reclassified in our statements of operations were separately disclosed in the notes to our consolidated financial statements included in our Form 10-Q for the fiscal quarter ended June 29, 2014 and Form 10-K. Such reclassifications had no impact on operating profit, net income or net income per share. The following table illustrates the reclassifications made to the condensed consolidated statements of operations for the three and six months ended June 29, 2014 : Three Months Ended Reclassifications As Previously Reported (b) Gain on dispositions, net (c) System Optimization Remeasurement (d) As Currently Reported System optimization gains, net $ — $ (1,418 ) $ — $ (1,418 ) Reorganization and realignment costs (a) 883 470 (77 ) 1,276 Impairment of long-lived assets — — 77 77 Other operating (income) expense, net 4,455 948 — 5,403 $ 5,338 $ — $ — $ 5,338 Six Months Ended Reclassifications As Previously Reported (b) Gain on dispositions, net (c) System Optimization Remeasurement (d) As Currently Reported System optimization gains, net $ — $ (74,395 ) $ — $ (74,395 ) Reorganization and realignment costs (a) (43,150 ) 61,411 (2,274 ) 15,987 Impairment of long-lived assets 332 — 2,274 2,606 Other operating (income) expense, net (4,224 ) 12,984 — 8,760 $ (47,042 ) $ — $ — $ (47,042 ) _______________ (a) Previously titled “Facilities action charges (income), net.” (b) “As Previously Reported,” reflects adjustments to reclassify the Bakery’s gain on disposal of assets of $22 and $37 for the three and six months ended June 29, 2014 , respectively, from “Other operating (income) expense, net” to “Income from discontinued operations.” (c) Reclassified the gain on sales of restaurants, net, previously included in “Facilities action charges (income), net” and the gain on disposal of assets, net, which included sales of restaurants and other assets, and was previously reported in “Other operating (income) expense, net” to a separate line in our condensed consolidated statements of operations, “System optimization gains, net.” (d) Reclassified impairment losses recorded in connection with the sale or anticipated sale of restaurants (“System Optimization Remeasurement”), previously included in “Facilities action charges (income), net” to “Impairment of long-lived assets.” |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 6 Months Ended |
Jun. 28, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On May 31, 2015, Wendy’s completed the sale of 100% of its membership interest in The New Bakery Company, LLC (the “Bakery”), its 100% owned subsidiary, to East Balt US, LLC (the “Buyer”) for $78,500 in cash (subject to customary purchase price adjustments). The Company also assigned certain capital leases for transportation equipment to the Buyer but retained the related obligation. Pursuant to the sale agreement, the Company is obligated to continue to provide health insurance benefits to the Bakery’s employees at the Company’s expense through December 31, 2015. The Company recorded a pre-tax gain on the disposal of the Bakery of $27,338 in the second quarter of 2015 which included transaction closing costs and a reduction of goodwill. The Company recognized income tax expense associated with the gain on disposal of $12,199 during the second quarter of 2015 which included the impact of the disposal of non-deductible goodwill. In conjunction with the Bakery sale, Wendy’s entered into a transition services agreement with the Buyer, pursuant to which Wendy’s will provide certain continuing corporate and shared services to the Buyer through March 31, 2016 for no additional consideration. A purchasing cooperative, Quality Supply Chain Co-op, Inc. (“QSCC”), established by Wendy’s and its franchisees, agreed to continue to source sandwich buns from the Bakery, for a specified time period in connection with the sale of the Bakery. As a result, Wendy’s paid the Buyer $996 for the purchase of sandwich buns during the period from June 1, 2015 through the end of the second quarter of 2015 , which has been recorded to “Cost of sales.” Information related to the Bakery has been reflected in the accompanying condensed consolidated financial statements as follows: • Balance sheets - As a result of our sale of the Bakery on May 31, 2015, there are no remaining Bakery assets and liabilities. The Bakery’s assets and liabilities as of December 28, 2014 have been presented as discontinued operations. • Statements of operations - The Bakery’s results of operations for the period from December 29, 2014 through May 31, 2015 and the three and six months ended June 29, 2014 have been presented as discontinued operations. In addition, the gain on disposal of the Bakery has been included in “Net income from discontinued operations” for the three and six months ended June 28, 2015. • Statements of cash flows - The Bakery’s cash flows prior to its sale (for the period from December 29, 2014 through May 31, 2015 and for the six months ended June 29, 2014) have been included in, and not separately reported from, our consolidated cash flows. The consolidated statement of cash flows for the six months ended June 28, 2015 also includes the effects of the sale of the Bakery. The following table presents the Bakery’s results of operations and the gain on disposal which have been included in discontinued operations: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Revenues (a) $ 11,408 $ 17,348 $ 25,885 $ 32,094 Cost of sales (b) (9,175 ) (12,639 ) (7,336 ) (23,464 ) 2,233 4,709 18,549 8,630 General and administrative (483 ) (549 ) (1,097 ) (1,304 ) Depreciation and amortization (c) (962 ) (1,497 ) (2,297 ) (2,938 ) Other expense, net (d) (12 ) (24 ) (34 ) (59 ) Income from discontinued operations before income taxes 776 2,639 15,121 4,329 Provision for income taxes (545 ) (959 ) (5,533 ) (1,355 ) Income from discontinued operations, net of income taxes 231 1,680 9,588 2,974 Gain on disposal of discontinued operations before income taxes 27,338 — 27,338 — Provision for income taxes on gain on disposal (12,199 ) — (12,199 ) — Gain on disposal of discontinued operations, net of income taxes 15,139 — 15,139 — Net income from discontinued operations $ 15,370 $ 1,680 $ 24,727 $ 2,974 _______________ (a) Includes sales of sandwich buns and related products previously reported in “Sales” as well as rental income. (b) The three and six months ended June 28, 2015 include employee separation related costs of $791 as a result of the sale of the Bakery. In addition, the six months ended June 28, 2015, includes a reduction to cost of sales of $12,486 resulting from the reversal of a liability associated with the Bakery’s withdrawal from a multiemployer pension plan. See Note 15 for further discussion. (c) Included in “Depreciation and amortization” in our condensed consolidated statements of cash flows for the periods presented. (d) Includes net gains on sales of other assets. During the three and six months ended June 28, 2015, the Bakery received cash proceeds of $41 and $50 , respectively, resulting in net gains on sales of other assets of $40 and $32 , respectively. During the three and six months ended June 29, 2014, the Bakery received cash proceeds of $22 and $37 , resulting in net gains on sales of other assets of $22 and $37 , respectively. The Bakery’s capital expenditures were $2,106 and $2,693 for the three and six months ended June 28, 2015 , respectively, and $803 and $1,553 for the three and six months ended June 29, 2014 , respectively, which are included in “Capital expenditures” in our condensed consolidated statements of cash flows. The following table summarizes the gain on the disposal of our Bakery, which has been included in discontinued operations: Three and Six Months Ended June 28, Proceeds from sale of the Bakery (a) $ 78,408 Net working capital (b) (5,655 ) Net properties sold (c) (30,664 ) Goodwill allocated to the sale of the Bakery (12,067 ) Other (d) (2,684 ) 27,338 Provision for income taxes (e) (12,199 ) Gain on disposal of discontinued operations, net of income taxes $ 15,139 _______________ (a) Represents net proceeds received, which includes the purchase price of $78,500 less transaction closing costs paid directly by the Buyer on the Company’s behalf. (b) Primarily represents accounts receivable, inventory, prepaid expenses and accounts payable. (c) Net properties sold consisted primarily of buildings, equipment and capital leases for transportation equipment. (d) Primarily includes the recognition of the Company’s obligation, pursuant to the sale agreement, to provide health insurance benefits to the Bakery’s employees through December 31, 2015 of $1,993 and transaction closing costs paid directly by the Company. (e) Includes the impact of non-deductible goodwill disposed of as a result of the sale. |
System Optimization Gains, Net
System Optimization Gains, Net | 6 Months Ended |
Jun. 28, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | System Optimization Gains, Net In July 2013, the Company announced a system optimization initiative, as part of its brand transformation, which includes opportunistic acquisitions and dispositions, as well as a shift from company-owned restaurants to franchised restaurants over time. During 2013 and 2014, the Company completed the sale of 244 and 255 company-owned restaurants to franchisees, respectively. During the second quarter of 2015, the Company completed its plan to sell all of its company-owned restaurants in Canada to franchisees, with the sale of 83 Canadian restaurants, bringing the aggregate total of Canadian restaurants sold to franchisees to 129 during 2014 and 2015. In February 2015, the Company announced plans to sell approximately 540 additional restaurants to franchisees and reduce its ongoing company-owned restaurant ownership to approximately 5% of the total system by the middle of 2016. Gains and losses recognized on dispositions are recorded to “ System optimization gains, net ” in our condensed consolidated statements of operations. Costs related to our system optimization initiative are recorded to “Reorganization and realignment costs,” and include severance and employee related costs, professional fees and other associated costs, which are further described in Note 5. The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, 2014 (f) Number of restaurants sold to franchisees 83 — 100 178 Proceeds from sales of restaurants $ 31,468 $ — $ 36,049 $ 101,560 Net assets sold (a) (15,158 ) — (17,380 ) (42,016 ) Goodwill related to sales of restaurants (6,840 ) — (7,863 ) (13,658 ) Net (unfavorable) favorable leases (b) 7,923 — 7,395 24,981 Other (c) (2,822 ) — (3,224 ) 300 14,571 — 14,977 71,167 Post-closing adjustments on sales of restaurants (d) 934 470 (639 ) (1,117 ) Gain on sales of restaurants, net 15,505 470 14,338 70,050 Gain on sales of other assets, net (e) 149 948 511 4,345 System optimization gains, net $ 15,654 $ 1,418 $ 14,849 $ 74,395 _______________ (a) Net assets sold consisted primarily of cash, inventory and equipment. (b) During the three and six months ended June 28, 2015 , the Company recorded favorable lease assets of $23,428 and $25,807 , respectively, and unfavorable lease liabilities of $15,505 and $18,412 , respectively, as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. During the first quarter of 2014, the Company recorded favorable lease assets of $47,392 and unfavorable lease liabilities of $22,411 . (c) The three and six months ended June 28, 2015 includes a deferred gain of $2,387 related to the sale of 14 Canadian restaurants to a franchisee, as a result of certain contingencies related to the extension of lease terms. The deferred gain is included in “Other liabilities.” The three and six months ended June 28, 2015 also includes a note receivable of $1,801 from a franchisee in connection with the sale of 16 Canadian restaurants, which has been recognized as part of the overall loss on sale. (d) During the three months ended June 28, 2015 , notes receivable from franchisees in connection with sales of restaurants in 2014 were repaid and as a result, we recognized the related gain on sale of $2,450 . (e) During the three and six months ended June 28, 2015 , Wendy’s received cash proceeds of $905 and $2,598 , respectively, primarily from the sale of surplus properties. During the three and six months ended June 29, 2014 , Wendy’s received cash proceeds of $7,725 and $14,607 , respectively, primarily from the sale of surplus properties and the sale of a company-owned aircraft. (f) Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. Assets Held for Sale June 28, December 28, 2014 (a) Number of restaurants classified as held for sale 97 106 Net restaurant assets held for sale $ 37,050 $ 25,266 Other assets held for sale $ 8,381 $ 13,469 _______________ (a) Reclassifications have been made to the prior year presentation to include restaurants previously excluded from our system optimization initiative to conform to the current year presentation. See Note 1 for further details. Net restaurant assets held for sale include company-owned restaurants and consist primarily of cash, inventory, equipment and an estimate of allocable goodwill. Other assets held for sale primarily consist of surplus properties. Assets held for sale are included in “ Prepaid expenses and other current assets .” |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 28, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions The following is a summary of the acquisition activity recorded for acquisitions of franchised restaurants during the periods presented and includes adjustments to the allocation of the purchase price for prior acquisitions within the one year measurement period: Six Months Ended June 28, June 29, Restaurants acquired from franchisees 4 3 Properties $ 1,303 $ 1,791 Acquired franchise rights 760 1,200 Goodwill 395 — Deferred taxes and other assets (40 ) 23 Capital leases obligations (706 ) — Unfavorable leases (440 ) — Other liabilities (40 ) (63 ) Gain on acquisition of restaurants — (616 ) Total consideration paid, net of cash received $ 1,232 $ 2,335 |
Realignment and reorganization
Realignment and reorganization costs (Notes) | 6 Months Ended |
Jun. 28, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, G&A realignment $ 4,372 $ — $ 8,535 $ — System optimization initiative 1,907 1,276 2,357 15,987 Reorganization and realignment costs $ 6,279 $ 1,276 $ 10,892 $ 15,987 G&A Realignment In November 2014, the Company initiated a plan to reduce its general and administrative expenses. The plan includes a realignment and reinvestment of resources to focus primarily on accelerated restaurant development and consumer-facing restaurant technology to drive long-term growth. The Company expects to achieve the majority of the expense reductions through the realignment of its U.S. field operations and savings at its Restaurant Support Center in Dublin, Ohio, which was substantially completed by the end of the second quarter of 2015. The Company recognized costs totaling $8,535 during the first six months of 2015 and $21,461 in aggregate since inception. The Company expects to incur additional costs aggregating approximately $4,500 during the remainder of 2015, comprised of recruitment and relocation costs of $3,500 for the reinvestment in resources to drive long-term growth and share-based compensation of $1,000 . The following is a summary of the activity recorded as a result of our G&A realignment plan: Three Months Ended Six Months Ended Total Incurred Since Inception June 28, June 28, Severance and related employee costs $ 637 $ 2,619 $ 14,536 Recruitment and relocation costs 514 984 1,193 Other 9 41 129 1,160 3,644 15,858 Share-based compensation (a) 3,212 4,891 5,603 Total G&A realignment $ 4,372 $ 8,535 $ 21,461 _______________ (a) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our G&A realignment plan. The table below presents a rollforward of our accruals for our G&A realignment plan, which are included in “Accrued expenses and other current liabilities” and “Other liabilities.” Balance December 28, 2014 Charges Payments Balance June 28, 2015 Severance and related employee costs $ 11,609 $ 2,619 $ (5,974 ) $ 8,254 Recruitment and relocation costs 149 984 (902 ) 231 Other 5 41 (46 ) — $ 11,763 $ 3,644 $ (6,922 ) $ 8,485 System Optimization Initiative The Company has recognized costs related to its system optimization initiative which includes the sale of restaurants to franchisees. In connection with reducing its ongoing company-owned restaurant ownership to approximately 5% of the total system, the Company expects to incur additional costs of approximately $11,000 in aggregate during the remainder of 2015 and 2016. Such costs are primarily comprised of accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be sold to franchisees of approximately $7,000 and professional fees of approximately $4,000 . The following is a summary of the costs recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended Total Incurred Since Inception June 28, June 29, June 28, June 29, Severance and related employee costs $ 303 $ 393 $ 629 $ 5,926 $ 17,887 Professional fees 110 558 151 3,189 5,964 Other (a) (128 ) 325 (45 ) 2,762 4,496 285 1,276 735 11,877 28,347 Accelerated depreciation and amortization (b) 1,622 — 1,622 475 19,036 Share-based compensation (c) — — — 3,635 5,013 Total system optimization initiative $ 1,907 $ 1,276 $ 2,357 $ 15,987 $ 52,396 _______________ (a) The three and six months ended June 28, 2015 includes a reversal of an accrual of $210 as a result of a change in estimate. (b) Primarily includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be or have been sold in connection with our system optimization initiative. (c) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. The table below presents a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.” Balance December 28, 2014 Charges Payments Balance June 28, 2015 Severance and related employee costs $ 2,235 $ 629 $ (2,438 ) $ 426 Professional fees 146 151 (159 ) 138 Other 423 (45 ) (254 ) 124 $ 2,804 $ 735 $ (2,851 ) $ 688 |
Investments
Investments | 6 Months Ended |
Jun. 28, 2015 | |
Investments [Abstract] | |
Investments | Investments Investment in TimWen Wendy’s is a partner in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons ® brand. (Tim Hortons is a registered trademark of The TDL Group Corp./Groupe TDL Corporation.) Wendy’s 50% share of the joint venture is accounted for using the equity method of accounting. Our equity in earnings from TimWen is included in “ Other operating expense, net .” As described in Note 3, the Company completed its plan to sell all of its company-owned restaurants in Canada to franchisees during the second quarter of 2015; however the Company plans to retain its ownership in TimWen. Presented below is an unaudited summary of activity related to our investment in TimWen included in “Investments” in our condensed consolidated financial statements: Six Months Ended June 28, June 29, Balance at beginning of period $ 69,790 $ 79,810 Equity in earnings for the period 5,712 6,197 Amortization of purchase price adjustments (a) (1,167 ) (1,325 ) 4,545 4,872 Distributions received (5,825 ) (6,443 ) Foreign currency translation adjustment included in “Other comprehensive income (loss), net” (3,971 ) 314 Balance at end of period $ 64,539 $ 78,553 _______________ (a) Based upon an average original aggregate life of 21 years. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Long-Term Debt Long-term debt consisted of the following: June 28, December 28, 2014 Series 2015-1 Class A-2 Notes: Series 2015-1 Class A-2-I Notes $ 875,000 $ — Series 2015-1 Class A-2-II Notes 900,000 — Series 2015-1 Class A-2-III Notes 500,000 — Term A Loans, repaid in June 2015 — 541,733 Term B Loans, repaid in June 2015 — 759,758 7% debentures, due in 2025 86,453 85,853 Capital lease obligations, due through 2042 (a) 78,467 59,073 Unamortized debt issuance costs (b) (42,543 ) (8,243 ) 2,397,377 1,438,174 Less amounts payable within one year (a) (17,595 ) (53,202 ) Total long-term debt $ 2,379,782 $ 1,384,972 _______________ (a) Capital lease obligations as of December 28, 2014 and the related amounts payable within one year have been updated to exclude the Bakery’s capital lease obligations as a result of the sale of the Bakery during the second quarter of 2015 and the presentation as discontinued operations in our condensed consolidated balance sheet as of December 28, 2014. (b) During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 1 and Note 16 for further information. Aggregate annual maturities of long-term debt, excluding the effect of purchase accounting adjustments, as of June 28, 2015 were as follows: Fiscal Year 2015 (a) $ 5,837 2016 23,229 2017 23,420 2018 24,532 2019 862,906 Thereafter 1,513,543 $ 2,453,467 _______________ (a) Represents maturities of long-term debt for the remainder of our 2015 fiscal year, from June 29, 2015 through January 3, 2016. Except as described below, the Company did not have any significant changes to its long-term debt as disclosed in the notes to our consolidated financial statements included in the Form 10-K. On June 1, 2015, Wendy’s Funding, LLC (“Wendy’s Funding” or the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of The Wendy’s Company, entered into a base indenture and a related supplemental indenture (collectively, the “Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2015-1 3.371% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) with an initial principal amount of $875,000 , Series 2015-1 4.080% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes”) with an initial principal amount of $900,000 and the Series 2015-1 4.497% Fixed Rate Senior Secured Notes, Class A-2-III, (the “Class A-2-III Notes”) with an initial principal amount of $500,000 (collectively the “Series 2015-1 Class A-2 Notes”). In addition, the Master Issuer entered into a revolving financing facility of Series 2015-1 Variable Funding Senior Secured Notes, Class A-1 (the “Series 2015-1 Class A-1 Notes” and, together with the Series 2015-1 Class A-2 Notes, the “Series 2015-1 Senior Notes”), which allows for the drawing of up to $150,000 under the Series 2015-1 Class A-1 Notes, which include certain credit instruments, including a letter of credit facility. The Series 2015-1 Class A-1 Notes were issued under the Indenture and allow for drawings on a revolving basis. The Series 2015-1 Senior Notes were issued in a securitization transaction pursuant to which certain of the Company’s domestic and foreign revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, were contributed or otherwise transferred to the Master Issuer and certain other limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of the Company that act as guarantors (the “Guarantors”) of the Series 2015-1 Senior Notes and that have pledged substantially all of their assets, excluding certain real estate assets and subject to certain limitations, to secure the Series 2015-1 Senior Notes. The Company has guaranteed the obligations of the Master Issuer under the Indenture and the Series 2015-I Senior Notes and pledged substantially all of its assets to secure such obligations. Interest and principal payments on the Series 2015-1 Class A-2 Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Series 2015-1 Class A-2 Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the Series 2015-I Class A-2 Notes is in June 2045, but, unless earlier prepaid to the extent permitted under the Indenture, the anticipated repayment dates of the Class A-2-I Notes, the Class A-2-II Notes and the Class A-2-III Notes will be 4.25 , 7 and 10 years, respectively (the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Series 2015-1 Class A-2 Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture. The Series 2015-1 Class A-1 Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered rate for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the Series 2015-1 Class A-1 note agreement. There is a commitment fee on the unused portion of the Series 2015-1 Class A-1 Notes which ranges from 0.50% to 0.85% based on utilization. It is anticipated that the principal and interest on the Series 2015-1 Class A-1 Notes will be repaid in full on or prior to June 2020, subject to two additional one-year extensions. Following the anticipated repayment date (and any extensions thereof) additional interest will accrue on the Series 2015-1 Class A-1 Notes equal to 5.0% per year. As of June 28, 2015, $22,000 of letters of credit were outstanding against the Series 2015-1 Class A-1 Notes, which relate primarily to interest reserves required under the Indenture. During the six months ended June 28, 2015, the Company incurred debt issuance costs of $43,094 in connection with the issuance of the Series 2015-1 Senior Notes. The debt issuance costs are being amortized to “Interest expense” through the Anticipated Repayment Dates of the Series 2015-1 Senior Notes utilizing the effective interest rate method. As of June 28, 2015, the effective interest rates, including the amortization of debt issuance costs, were 3.783% , 4.334% and 4.678% for the Class A-2-I Notes, Class A-2-II Notes and Class A-2-III Notes, respectively. The Series 2015-1 Senior Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Series 2015-1 Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Series 2015-1 Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Series 2015-1 Senior Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Series 2015-1 Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of global gross sales for specified restaurants being below certain levels on certain measurement dates, certain manager termination events, an event of default, and the failure to repay or refinance the Series 2015-1 Class A-2 Notes on the applicable scheduled maturity date. The Series 2015-1 Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Series 2015-1 Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the trustee and the noteholders, and are restricted in their use. As of June 28, 2015 , Wendy’s Funding had restricted cash of $27,190 , which primarily represented cash collections and interest and commitment fee reserves held by the trustee. Such restricted cash is included in “ Prepaid expenses and other current assets ” in the condensed consolidated balance sheet as of June 28, 2015 . Changes in such restricted cash has been presented as a component of cash flows from operating activities in the condensed consolidated statement of cash flows since the cash is restricted to the payment of interest. The proceeds from the issuance of the Series 2015-1 Class A-2 Notes, were used to repay all amounts outstanding on the Term A Loans and Term B Loans under the Company’s May 16, 2013 Restated Credit Agreement amended on September 24, 2013 (the “2013 Restated Credit Agreement”). In connection with the repayment of the Term A Loans and Term B Loans, Wendy’s terminated the related interest rate swaps with notional amounts totaling $350,000 and $100,000 , respectively, which had been designated as cash flow hedges. See Note 8 for more information on the interest rate swaps. As a result, the Company recorded a loss on early extinguishment of debt of $7,295 , primarily consisting of the write-off of deferred costs related to the 2013 Restated Credit Agreement and fees paid to terminate the related interest rate swaps of $62 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy: Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets. Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: June 28, December 28, Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 124,214 $ 124,214 $ 61,450 $ 61,450 Level 1 Non-current cost method investments (a) 6,176 154,324 4,264 147,760 Level 3 Financial liabilities Series 2015-1 Class A-2-I Notes (b) 875,000 868,875 — — Level 2 Series 2015-1 Class A-2-II Notes (b) 900,000 892,350 — — Level 2 Series 2015-1 Class A-2-III Notes (b) 500,000 491,150 — — Level 2 Term A Loans, repaid in June 2015 (b) — — 541,733 540,717 Level 2 Term B Loans, repaid in June 2015 (b) — — 759,758 752,160 Level 2 7% debentures, due in 2025 (b) 86,453 106,000 85,853 104,250 Level 2 Cash flow hedges (c) — — 3,343 3,343 Level 2 Guarantees of franchisee loan obligations (d) 1,028 1,028 968 968 Level 3 _______________ (a) The fair value of our indirect investment in Arby’s Restaurant Group, Inc. (“Arby’s”) is based on applying a multiple to Arby’s earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. (b) The fair values were based on quoted market prices in markets that are not considered active markets. (c) The fair values were developed using market observable data for all significant inputs. (d) Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for new restaurant development and equipment financing. In addition during 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. The carrying amounts of cash, accounts payable and accrued expenses approximated fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable (both current and non-current) approximated fair value due to the effect of the related allowance for doubtful accounts. Our derivative instruments, cash and cash equivalents and guarantees are the only financial assets and liabilities measured and recorded at fair value on a recurring basis. Derivative Instruments The Company’s primary objective for entering into interest rate swap agreements is to manage its exposure to changes in interest rates, as well as to maintain an appropriate mix of fixed and variable rate debt. Our derivative instruments for the periods presented included seven forward starting interest rate swaps designated as cash flow hedges to change the floating rate interest payments associated with $350,000 and $100,000 in borrowings under the Term A Loans and Term B Loans, respectively, to fixed rate interest payments beginning June 30, 2015 and maturing on December 31, 2017. In May 2015, the Company terminated these interest rate swaps and paid $7,275 , which was recorded against the derivative liability. In addition, the Company incurred $62 in fees to terminate the interest rate swaps which was included in “Loss on early extinguishment of debt.” See Note 7 for further information. The unrealized loss on the cash flow hedges of $7,275 will be reclassified on a straight line basis from “Accumulated other comprehensive loss” to “Interest expense” beginning June 30, 2015, the original effective date of the interest rate swaps through December 31, 2017, the original maturity date of the interest rate swaps. As of December 28, 2014 , the fair value of the cash flow hedges of $3,343 was included in “Other liabilities” and a corresponding offset to “Accumulated other comprehensive loss.” All of the Company’s financial instruments were in a liability position as of December 28, 2014 and therefore presented gross in the condensed consolidated balance sheet. There was no hedge ineffectiveness from these cash flows hedges through their termination in May 2015. Non-Recurring Fair Value Measurements Assets and liabilities remeasured to fair value on a non-recurring basis during the six months ended June 28, 2015 and the year ended December 28, 2014 resulted in impairment which we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations. Total losses for the six months ended June 28, 2015 and the year ended December 28, 2014 reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements and favorable lease assets) to fair value as a result of (1) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants and (2) declines in operating performance at company-owned restaurants. The fair value of long-lived assets held and used presented in the tables below represents the remaining carrying value and was estimated based on either discounted cash flows of future anticipated lease and sublease income or current market values. Total losses for the six months ended June 28, 2015 and the year ended December 28, 2014 also include the impact of remeasuring long-lived assets held for sale which primarily include surplus properties. The fair values of long-lived assets held for sale presented in the tables below represent the remaining carrying value and were estimated based on current market values. See Note 9 for more information on impairment of our long-lived assets. Fair Value Measurements Six Months Ended June 28, 2015 Total Losses June 28, 2015 Level 1 Level 2 Level 3 Held and used $ 3,402 $ — $ — $ 3,402 $ 10,803 Held for sale 2,353 — — 2,353 1,152 Total $ 5,755 $ — $ — $ 5,755 $ 11,955 Fair Value Measurements 2014 Total Losses December 28, 2014 Level 1 Level 2 Level 3 Held and used $ 8,651 $ — $ — $ 8,651 $ 17,139 Held for sale 4,967 — — 4,967 2,474 Total $ 13,618 $ — $ — $ 13,618 $ 19,613 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets (Notes) | 6 Months Ended |
Jun. 28, 2015 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets During the three and six months ended June 28, 2015 and six months ended June 29, 2014 , 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 and (2) closing company-owned restaurants and classifying such properties as held for sale. Additionally during the three and six months ended June 28, 2015 , the Company recorded impairment charges resulting from 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. 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. 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.” Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Restaurants leased or subleased to franchisees $ 7,551 $ 77 $ 8,256 $ 2,274 Company-owned restaurants 2,073 — 2,547 — Surplus properties 394 — 1,152 332 $ 10,018 $ 77 $ 11,955 $ 2,606 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate on income from continuing operations for the three months ended June 28, 2015 and June 29, 2014 was 38.1% and 44.2% , respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 35% due to the effect of (1) state income taxes net of federal benefits, primarily resulting from changes to state deferred taxes, (2) changes to valuation allowances on state net operating loss carryforwards due to the expected sale of restaurants under our system optimization initiative, (3) the impact of non-deductible goodwill disposed of in connection with our system optimization initiative, (4) employment credits and (5) foreign rate differential. The changes to state deferred taxes during the three months ended June 28, 2015 was primarily due to the deferred tax impact of an internal restructuring required to complete the securitized financing facility discussed in Note 7, partially offset by the expected sale of restaurants under our system optimization initiative described in Note 3. The changes to state deferred taxes during the three months ended June 29, 2014 was primarily due to the enactment of a mandatory consolidated return filing requirement in New York. The Company’s effective tax rate on income from continuing operations for the six months ended June 28, 2015 and June 29, 2014 was 34.4% and 41.6% , respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 35% due to the effect of (1) state income taxes net of federal benefits, primarily resulting from changes to state deferred taxes, (2) changes to valuation allowances on state net operating loss carryforwards due to the expected sale of restaurants under our system optimization initiative, (3) adjustments related to prior year tax matters including changes to unrecognized tax benefits, (4) the impact of non-deductible goodwill disposed of in connection with our system optimization initiative, (5) foreign rate differential and (6) employment credits. The changes to state deferred taxes during the six months ended June 28, 2015 was primarily due to the deferred tax impact of an internal restructuring required to complete the securitized financing facility discussed in Note 7, partially offset by the expected sale of restaurants under our system optimization initiative described in Note 3. The changes to state deferred taxes during the six months ended June 29, 2014 was primarily due to the enactment of a mandatory consolidated return filing requirement in New York. During the first quarter of 2015, we concluded two state income tax examinations which resulted in the recognition of a net tax benefit of $1,872 and the reduction of our unrecognized tax benefits by $3,686 . Additionally, during the second quarter of 2015, unfavorable state court decisions and audit experience led us to abandon certain refund claims, which resulted in a reduction of our unrecognized tax benefits by $1,274 . There were no other significant changes to unrecognized tax benefits or related interest and penalties for the Company during the six months ended June 28, 2015 . During the next twelve months it is reasonably possible the Company will reduce its unrecognized tax benefits by up to $964 , primarily due to the completion of state tax examinations. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share was computed by dividing net income amounts by the weighted average number of common shares outstanding. The weighted average number of shares used to calculate basic and diluted net income per share were as follows: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Common stock: Weighted average basic shares outstanding 363,766 366,712 365,175 374,132 Dilutive effect of stock options and restricted shares 6,776 5,460 6,700 6,630 Weighted average diluted shares outstanding 370,542 372,172 371,875 380,762 Diluted net income per share for the three and six months ended June 28, 2015 and June 29, 2014 was computed by dividing net income by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. We excluded potential common shares of 434 and 599 for the three and six months ended June 28, 2015 , respectively, and 4,758 and 5,306 for the three and six months ended June 29, 2014 , respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects. |
Equity
Equity | 6 Months Ended |
Jun. 28, 2015 | |
Equity [Abstract] | |
Equity | Stockholders’ Equity Stockholders’ Equity The following is a summary of the changes in stockholders’ equity: Six Months Ended June 28, June 29, Balance at beginning of period $ 1,717,576 $ 1,929,486 Comprehensive income 52,563 74,205 Dividends (40,189 ) (36,648 ) Repurchases of common stock (63,206 ) (277,275 ) Share-based compensation 12,242 15,158 Exercises of stock options 15,278 23,412 Vesting of restricted shares (1,393 ) (1,397 ) Tax benefit from share-based compensation 45,452 17,338 Other 103 87 Balance at end of period $ 1,738,426 $ 1,744,366 Repurchases of Common Stock On June 1, 2015, our Board of Directors authorized a new repurchase program for up to $1,400,000 of our common stock through January 1, 2017, when and if market conditions warrant and to the extent legally permissible. As part of the authorization, the Company commenced an $850,000 share repurchase program on June 3, 2015, which included (1) a modified Dutch auction tender offer to repurchase up to $639,000 of our common stock and (2) a separate stock purchase agreement to repurchase up to $211,000 of our common stock from the Trian Group (as defined below in Note 13). For additional information on the separate stock purchase agreement see Note 13. During the second quarter of 2015, the Company incurred costs of $1,489 in connection with the tender offer, which were recorded to treasury stock. Subsequent to the second quarter of 2015, on June 30, 2015, the tender offer expired and on July 8, 2015, the Company repurchased 55,808 shares for an aggregate purchase price of $639,000 . On July 17, 2015, the Company repurchased 18,416 shares, pursuant to the separate purchase agreement, for an aggregate purchase price of $210,867 . As a result, the $850,000 share repurchase prog ram that commenced on June 3, 2015 was completed. In August 2014, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through December 31, 2015, when and if market conditions warrant and to the extent legally permissible. For the six months ended June 28, 2015 , the Company repurchased 5,655 shares with an aggregate purchase price of $61,631 , excluding commissions of $86 . In January 2014, our Board of Directors authorized a repurchase program for up to $275,000 of our common stock through the end of fiscal year 2014. The Company utilized the full authorization upon completion of a modified Dutch auction tender offer on February 19, 2014 resulting in 29,730 shares repurchased for an aggregate purchase price of $275,000 . The Company incurred costs of $2,275 in connection with the tender offer, which were recorded to treasury stock. Accumulated Other Comprehensive Loss The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges Pension Total Balance at December 28, 2014 $ (28,363 ) $ (2,044 ) $ (887 ) $ (31,294 ) Current-period other comprehensive loss (12,494 ) (2,442 ) (203 ) (15,139 ) Balance at June 28, 2015 $ (40,857 ) $ (4,486 ) $ (1,090 ) $ (46,433 ) Balance at December 29, 2013 $ (9,803 ) $ 744 $ (1,278 ) $ (10,337 ) Current-period other comprehensive income (loss) 975 (2,418 ) 338 (1,105 ) Balance at June 29, 2014 $ (8,828 ) $ (1,674 ) $ (940 ) $ (11,442 ) The cumulative gains and losses on these items are included in “Accumulated other comprehensive loss” in the condensed consolidated balance sheets. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 28, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties Except as described below, the Company did not have any significant changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K. Stock Purchase Agreement On June 2, 2015, the Company entered into a stock purchase agreement to repurchase our common stock from Nelson Peltz, Peter W. May and Edward P. Garden (who are members of the Company ’s Board of Directors) and certain of their family members and affiliates, investment funds managed by Trian Fund Management, L.P. (an investment management firm controlled by Messrs. Peltz, May and Garden, “TFM”) and the general partner of certain of those funds (together with Messrs. Peltz, May and Garden, certain of their family members and affiliates and TFM, the “Trian Group”), who in the aggregate owned approximately 24.8% of the Company’s outstanding shares as of May 29, 2015. Pursuant to the agreement, the Trian Group agreed not to tender or sell any of its shares in the modified Dutch auction tender offer the Company commenced on June 3, 2015. Also pursuant to the agreement, the Company agreed, following completion of the tender offer, to purchase from the Trian Group a pro rata amount of its shares based on the number of shares the Company purchases in the tender offer, at the same price received by shareholders who participated in the tender offer. On July 17, 2015, after completion of the modified Dutch auction tender offer, the Company repurchased 18,416 shares of its common stock from the Trian Group at the price paid in the tender offer of $11.45 per share, for an aggregate purchase price of $210,867 . Transactions with QSCC Wendy’s received $92 of lease income from its purchasing cooperative, Quality Supply Chain Co-op, Inc. (“QSCC”) during both the six months ended June 28, 2015 and June 29, 2014 , which has been recorded as a reduction of “General and administrative.” TimWen Lease and Management Fee Payments A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen for the operation of Wendy’s/Tim Hortons combo units in Canada. Wendy’s paid TimWen $4,015 and $3,127 under leases for the operation of company-owned restaurants during the six months ended June 28, 2015 and June 29, 2014 , respectively, which have been included in “Cost of sales.” Wendy’s subleases some of the restaurant facilities to franchisees for which Wendy’s paid TimWen $1,877 during the six months ended June 28, 2015 , which has been included in “Other operating expense, net.” Prior to 2015, franchisees paid TimWen directly for these subleases. TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $112 and $125 during the six months ended June 28, 2015 and June 29, 2014 , respectively, which has been included as a reduction to “General and administrative.” |
Legal and Environmental Matters
Legal and Environmental Matters | 6 Months Ended |
Jun. 28, 2015 | |
Loss Contingency [Abstract] | |
Legal and Environmental Matters | Legal and Environmental Matters We are involved in litigation and claims incidental to our current and prior businesses. We provide accruals for such litigation and claims when payment is probable and reasonably estimable. As of June 28, 2015 , the Company had accruals for all of its legal and environmental matters aggregating $2,664 . We cannot estimate the aggregate possible range of loss due to most proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur, and significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult. Based on currently available information, including legal defenses available to us, and given the aforementioned accruals and our insurance coverage, we do not believe that the outcome of these legal and environmental matters will have a material effect on our consolidated financial position or results of operations. |
Multiemployer Pension Plan
Multiemployer Pension Plan | 6 Months Ended |
Jun. 28, 2015 | |
Loss Contingency [Abstract] | |
Multiemployer Pension Plan | Multiemployer Pension Plan As further described in the Form 10-K, in December 2013, The New Bakery Co. of Ohio, Inc. (the “Bakery Company”), a 100% owned subsidiary of Wendy’s, now known as The New Bakery Company, LLC, terminated its participation in the Bakery and Confectionery Union and Industry International Pension Fund (the “Union Pension Fund”) and formally notified the plan’s trustees of its withdrawal from the plan. The Union Pension Fund administrator acknowledged the withdrawal, which required Wendy’s to assume an estimated withdrawal liability of $13,500 based on the applicable requirements of the Employee Retirement Income Security Act, as amended, and which was included in “Cost of sales” during the fourth quarter of 2013. As a result, Wendy’s made payments to the Union Pension Fund aggregating $1,014 during 2014 and 2015 which were recorded as reductions to the withdrawal liability. The Bakers Local No. 57, Bakery, Confectionery, Tobacco Workers & Grain Millers International Union of America, AFL-CIO (the “Union”) filed a charge with the National Labor Relations Board (the “NLRB”) related to the Bakery Company’s withdrawal from the Union Pension Fund. On July 22, 2014, The New Bakery of Zanesville, LLC (“Zanesville”), a 100% owned subsidiary of Wendy’s, and the Union entered into a settlement agreement with the NLRB. The terms of the settlement include an agreement by Zanesville and the Union to recommence negotiations. On March 27, 2015, Zanesville and the Union signed a memorandum of agreement outlining the terms for a new collective bargaining agreement, including re-entering the Union Pension Fund and signing the collective bargaining agreement on or about May 15, 2015. The terms of the collective bargaining agreement were ratified by the Union and became effective upon execution of the collective bargaining agreement. During the first quarter of 2015, the Company began negotiating the potential sale of the Bakery Company which would result in the buyer signing the collective bargaining agreement and re-entering the Union Pension Fund. As a result, the Company concluded that its loss contingency for the pension withdrawal payments was no longer probable and, as such, reversed $12,486 of the outstanding withdrawal liability to “Cost of sales” during the first quarter of 2015. During the second quarter of 2015, with negotiations ongoing, Zanesville and the Union agreed to an extension of the May 15, 2015 deadline for re-entering the Union Pension Fund. On May 15, 2015, in preparation for the sale of the Bakery, Zanesville merged into the Bakery Company. The Bakery Company was sold on May 31, 2015 and subsequently the Bakery Company signed the collective bargaining agreement and re-entered the Union Pension Fund. As a result of the sale, Wendy’s no longer has any obligations related to the Union Pension Fund. See Note 2 for more information on the sale of the Bakery. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 28, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards New Accounting Standards In July 2015, the Financial Accounting Standards Board (the “FASB”) issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is now effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In April 2015, the FASB issued an amendment that clarifies the accounting for fees paid in a cloud computing arrangement. The amendment provides guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective commencing with our 2016 fiscal year. We are currently evaluating the impact of the adoption of this amendment on our consolidated financial statements. In February 2015, the FASB issued an amendment which revises the consolidation requirements and significantly changes the consolidation analysis required under current guidance. The amendment is effective commencing with our 2016 fiscal year. We are currently evaluating the impact of the adoption of this amendment on our consolidated financial statements. New Accounting Standards Adopted In April 2015, the FASB issued an amendment that modifies the presentation of debt issuance costs. The amendment requires debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The Company early adopted this amendment, which required retrospective application, during the second quarter of 2015. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 7 for more information. In April 2014, the FASB issued an amendment that modifies the criteria for reporting a discontinued operation. The amendment changes the definition of a discontinued operation including the implementation guidance and requires expanded disclosures. The Company adopted this amendment, prospectively, during the first quarter of 2015. |
Basis of Presentation Schedule
Basis of Presentation Schedule of Prior Period Adjustments (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Prior Period Adjustment [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following table illustrates the reclassifications made to the condensed consolidated statements of operations for the three and six months ended June 29, 2014 : Three Months Ended Reclassifications As Previously Reported (b) Gain on dispositions, net (c) System Optimization Remeasurement (d) As Currently Reported System optimization gains, net $ — $ (1,418 ) $ — $ (1,418 ) Reorganization and realignment costs (a) 883 470 (77 ) 1,276 Impairment of long-lived assets — — 77 77 Other operating (income) expense, net 4,455 948 — 5,403 $ 5,338 $ — $ — $ 5,338 Six Months Ended Reclassifications As Previously Reported (b) Gain on dispositions, net (c) System Optimization Remeasurement (d) As Currently Reported System optimization gains, net $ — $ (74,395 ) $ — $ (74,395 ) Reorganization and realignment costs (a) (43,150 ) 61,411 (2,274 ) 15,987 Impairment of long-lived assets 332 — 2,274 2,606 Other operating (income) expense, net (4,224 ) 12,984 — 8,760 $ (47,042 ) $ — $ — $ (47,042 ) _______________ (a) Previously titled “Facilities action charges (income), net.” (b) “As Previously Reported,” reflects adjustments to reclassify the Bakery’s gain on disposal of assets of $22 and $37 for the three and six months ended June 29, 2014 , respectively, from “Other operating (income) expense, net” to “Income from discontinued operations.” (c) Reclassified the gain on sales of restaurants, net, previously included in “Facilities action charges (income), net” and the gain on disposal of assets, net, which included sales of restaurants and other assets, and was previously reported in “Other operating (income) expense, net” to a separate line in our condensed consolidated statements of operations, “System optimization gains, net.” (d) Reclassified impairment losses recorded in connection with the sale or anticipated sale of restaurants (“System Optimization Remeasurement”), previously included in “Facilities action charges (income), net” to “Impairment of long-lived assets.” |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the gain on the disposal of our Bakery, which has been included in discontinued operations: Three and Six Months Ended June 28, Proceeds from sale of the Bakery (a) $ 78,408 Net working capital (b) (5,655 ) Net properties sold (c) (30,664 ) Goodwill allocated to the sale of the Bakery (12,067 ) Other (d) (2,684 ) 27,338 Provision for income taxes (e) (12,199 ) Gain on disposal of discontinued operations, net of income taxes $ 15,139 _______________ (a) Represents net proceeds received, which includes the purchase price of $78,500 less transaction closing costs paid directly by the Buyer on the Company’s behalf. (b) Primarily represents accounts receivable, inventory, prepaid expenses and accounts payable. (c) Net properties sold consisted primarily of buildings, equipment and capital leases for transportation equipment. (d) Primarily includes the recognition of the Company’s obligation, pursuant to the sale agreement, to provide health insurance benefits to the Bakery’s employees through December 31, 2015 of $1,993 and transaction closing costs paid directly by the Company. (e) Includes the impact of non-deductible goodwill disposed of as a result of the sale. The following table presents the Bakery’s results of operations and the gain on disposal which have been included in discontinued operations: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Revenues (a) $ 11,408 $ 17,348 $ 25,885 $ 32,094 Cost of sales (b) (9,175 ) (12,639 ) (7,336 ) (23,464 ) 2,233 4,709 18,549 8,630 General and administrative (483 ) (549 ) (1,097 ) (1,304 ) Depreciation and amortization (c) (962 ) (1,497 ) (2,297 ) (2,938 ) Other expense, net (d) (12 ) (24 ) (34 ) (59 ) Income from discontinued operations before income taxes 776 2,639 15,121 4,329 Provision for income taxes (545 ) (959 ) (5,533 ) (1,355 ) Income from discontinued operations, net of income taxes 231 1,680 9,588 2,974 Gain on disposal of discontinued operations before income taxes 27,338 — 27,338 — Provision for income taxes on gain on disposal (12,199 ) — (12,199 ) — Gain on disposal of discontinued operations, net of income taxes 15,139 — 15,139 — Net income from discontinued operations $ 15,370 $ 1,680 $ 24,727 $ 2,974 _______________ (a) Includes sales of sandwich buns and related products previously reported in “Sales” as well as rental income. (b) The three and six months ended June 28, 2015 include employee separation related costs of $791 as a result of the sale of the Bakery. In addition, the six months ended June 28, 2015, includes a reduction to cost of sales of $12,486 resulting from the reversal of a liability associated with the Bakery’s withdrawal from a multiemployer pension plan. See Note 15 for further discussion. (c) Included in “Depreciation and amortization” in our condensed consolidated statements of cash flows for the periods presented. (d) Includes net gains on sales of other assets. During the three and six months ended June 28, 2015, the Bakery received cash proceeds of $41 and $50 , respectively, resulting in net gains on sales of other assets of $40 and $32 , respectively. During the three and six months ended June 29, 2014, the Bakery received cash proceeds of $22 and $37 , resulting in net gains on sales of other assets of $22 and $37 , respectively. |
System Optimization Gains, Net
System Optimization Gains, Net (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, 2014 (f) Number of restaurants sold to franchisees 83 — 100 178 Proceeds from sales of restaurants $ 31,468 $ — $ 36,049 $ 101,560 Net assets sold (a) (15,158 ) — (17,380 ) (42,016 ) Goodwill related to sales of restaurants (6,840 ) — (7,863 ) (13,658 ) Net (unfavorable) favorable leases (b) 7,923 — 7,395 24,981 Other (c) (2,822 ) — (3,224 ) 300 14,571 — 14,977 71,167 Post-closing adjustments on sales of restaurants (d) 934 470 (639 ) (1,117 ) Gain on sales of restaurants, net 15,505 470 14,338 70,050 Gain on sales of other assets, net (e) 149 948 511 4,345 System optimization gains, net $ 15,654 $ 1,418 $ 14,849 $ 74,395 _______________ (a) Net assets sold consisted primarily of cash, inventory and equipment. (b) During the three and six months ended June 28, 2015 , the Company recorded favorable lease assets of $23,428 and $25,807 , respectively, and unfavorable lease liabilities of $15,505 and $18,412 , respectively, as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. During the first quarter of 2014, the Company recorded favorable lease assets of $47,392 and unfavorable lease liabilities of $22,411 . (c) The three and six months ended June 28, 2015 includes a deferred gain of $2,387 related to the sale of 14 Canadian restaurants to a franchisee, as a result of certain contingencies related to the extension of lease terms. The deferred gain is included in “Other liabilities.” The three and six months ended June 28, 2015 also includes a note receivable of $1,801 from a franchisee in connection with the sale of 16 Canadian restaurants, which has been recognized as part of the overall loss on sale. (d) During the three months ended June 28, 2015 , notes receivable from franchisees in connection with sales of restaurants in 2014 were repaid and as a result, we recognized the related gain on sale of $2,450 . (e) During the three and six months ended June 28, 2015 , Wendy’s received cash proceeds of $905 and $2,598 , respectively, primarily from the sale of surplus properties. During the three and six months ended June 29, 2014 , Wendy’s received cash proceeds of $7,725 and $14,607 , respectively, primarily from the sale of surplus properties and the sale of a company-owned aircraft. (f) Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. |
Schedule of Assets Held-for-sale [Table Text Block] | Assets Held for Sale June 28, December 28, 2014 (a) Number of restaurants classified as held for sale 97 106 Net restaurant assets held for sale $ 37,050 $ 25,266 Other assets held for sale $ 8,381 $ 13,469 _______________ (a) Reclassifications have been made to the prior year presentation to include restaurants previously excluded from our system optimization initiative to conform to the current year presentation. See Note 1 for further details. |
Acquisitions Schedule of Signif
Acquisitions Schedule of Significant Acquisitions and Disposals (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following is a summary of the acquisition activity recorded for acquisitions of franchised restaurants during the periods presented and includes adjustments to the allocation of the purchase price for prior acquisitions within the one year measurement period: Six Months Ended June 28, June 29, Restaurants acquired from franchisees 4 3 Properties $ 1,303 $ 1,791 Acquired franchise rights 760 1,200 Goodwill 395 — Deferred taxes and other assets (40 ) 23 Capital leases obligations (706 ) — Unfavorable leases (440 ) — Other liabilities (40 ) (63 ) Gain on acquisition of restaurants — (616 ) Total consideration paid, net of cash received $ 1,232 $ 2,335 |
Realignment and reorganizatio28
Realignment and reorganization costs (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, G&A realignment $ 4,372 $ — $ 8,535 $ — System optimization initiative 1,907 1,276 2,357 15,987 Reorganization and realignment costs $ 6,279 $ 1,276 $ 10,892 $ 15,987 |
General and Administrative Realignment and Reinvestment [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following is a summary of the activity recorded as a result of our G&A realignment plan: Three Months Ended Six Months Ended Total Incurred Since Inception June 28, June 28, Severance and related employee costs $ 637 $ 2,619 $ 14,536 Recruitment and relocation costs 514 984 1,193 Other 9 41 129 1,160 3,644 15,858 Share-based compensation (a) 3,212 4,891 5,603 Total G&A realignment $ 4,372 $ 8,535 $ 21,461 _______________ (a) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our G&A realignment plan. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The table below presents a rollforward of our accruals for our G&A realignment plan, which are included in “Accrued expenses and other current liabilities” and “Other liabilities.” Balance December 28, 2014 Charges Payments Balance June 28, 2015 Severance and related employee costs $ 11,609 $ 2,619 $ (5,974 ) $ 8,254 Recruitment and relocation costs 149 984 (902 ) 231 Other 5 41 (46 ) — $ 11,763 $ 3,644 $ (6,922 ) $ 8,485 |
System Optimization [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following is a summary of the costs recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended Total Incurred Since Inception June 28, June 29, June 28, June 29, Severance and related employee costs $ 303 $ 393 $ 629 $ 5,926 $ 17,887 Professional fees 110 558 151 3,189 5,964 Other (a) (128 ) 325 (45 ) 2,762 4,496 285 1,276 735 11,877 28,347 Accelerated depreciation and amortization (b) 1,622 — 1,622 475 19,036 Share-based compensation (c) — — — 3,635 5,013 Total system optimization initiative $ 1,907 $ 1,276 $ 2,357 $ 15,987 $ 52,396 _______________ (a) The three and six months ended June 28, 2015 includes a reversal of an accrual of $210 as a result of a change in estimate. (b) Primarily includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be or have been sold in connection with our system optimization initiative. (c) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The table below presents a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.” Balance December 28, 2014 Charges Payments Balance June 28, 2015 Severance and related employee costs $ 2,235 $ 629 $ (2,438 ) $ 426 Professional fees 146 151 (159 ) 138 Other 423 (45 ) (254 ) 124 $ 2,804 $ 735 $ (2,851 ) $ 688 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Investments [Abstract] | |
Schedule of Equity Method Investments [Table Text Block] | Presented below is an unaudited summary of activity related to our investment in TimWen included in “Investments” in our condensed consolidated financial statements: Six Months Ended June 28, June 29, Balance at beginning of period $ 69,790 $ 79,810 Equity in earnings for the period 5,712 6,197 Amortization of purchase price adjustments (a) (1,167 ) (1,325 ) 4,545 4,872 Distributions received (5,825 ) (6,443 ) Foreign currency translation adjustment included in “Other comprehensive income (loss), net” (3,971 ) 314 Balance at end of period $ 64,539 $ 78,553 _______________ (a) Based upon an average original aggregate life of 21 years. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt consisted of the following: June 28, December 28, 2014 Series 2015-1 Class A-2 Notes: Series 2015-1 Class A-2-I Notes $ 875,000 $ — Series 2015-1 Class A-2-II Notes 900,000 — Series 2015-1 Class A-2-III Notes 500,000 — Term A Loans, repaid in June 2015 — 541,733 Term B Loans, repaid in June 2015 — 759,758 7% debentures, due in 2025 86,453 85,853 Capital lease obligations, due through 2042 (a) 78,467 59,073 Unamortized debt issuance costs (b) (42,543 ) (8,243 ) 2,397,377 1,438,174 Less amounts payable within one year (a) (17,595 ) (53,202 ) Total long-term debt $ 2,379,782 $ 1,384,972 _______________ (a) Capital lease obligations as of December 28, 2014 and the related amounts payable within one year have been updated to exclude the Bakery’s capital lease obligations as a result of the sale of the Bakery during the second quarter of 2015 and the presentation as discontinued operations in our condensed consolidated balance sheet as of December 28, 2014. (b) During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 1 and Note 16 for further information. |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregate annual maturities of long-term debt, excluding the effect of purchase accounting adjustments, as of June 28, 2015 were as follows: Fiscal Year 2015 (a) $ 5,837 2016 23,229 2017 23,420 2018 24,532 2019 862,906 Thereafter 1,513,543 $ 2,453,467 _______________ (a) Represents maturities of long-term debt for the remainder of our 2015 fiscal year, from June 29, 2015 through January 3, 2016. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: June 28, December 28, Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 124,214 $ 124,214 $ 61,450 $ 61,450 Level 1 Non-current cost method investments (a) 6,176 154,324 4,264 147,760 Level 3 Financial liabilities Series 2015-1 Class A-2-I Notes (b) 875,000 868,875 — — Level 2 Series 2015-1 Class A-2-II Notes (b) 900,000 892,350 — — Level 2 Series 2015-1 Class A-2-III Notes (b) 500,000 491,150 — — Level 2 Term A Loans, repaid in June 2015 (b) — — 541,733 540,717 Level 2 Term B Loans, repaid in June 2015 (b) — — 759,758 752,160 Level 2 7% debentures, due in 2025 (b) 86,453 106,000 85,853 104,250 Level 2 Cash flow hedges (c) — — 3,343 3,343 Level 2 Guarantees of franchisee loan obligations (d) 1,028 1,028 968 968 Level 3 _______________ (a) The fair value of our indirect investment in Arby’s Restaurant Group, Inc. (“Arby’s”) is based on applying a multiple to Arby’s earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. (b) The fair values were based on quoted market prices in markets that are not considered active markets. (c) The fair values were developed using market observable data for all significant inputs. (d) Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for new restaurant development and equipment financing. In addition during 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. |
Fair value of assets and liabilities (other than cash and cash equivalents) measure at fair value on a nonrecurring basis | Fair Value Measurements Six Months Ended June 28, 2015 Total Losses June 28, 2015 Level 1 Level 2 Level 3 Held and used $ 3,402 $ — $ — $ 3,402 $ 10,803 Held for sale 2,353 — — 2,353 1,152 Total $ 5,755 $ — $ — $ 5,755 $ 11,955 Fair Value Measurements 2014 Total Losses December 28, 2014 Level 1 Level 2 Level 3 Held and used $ 8,651 $ — $ — $ 8,651 $ 17,139 Held for sale 4,967 — — 4,967 2,474 Total $ 13,618 $ — $ — $ 13,618 $ 19,613 |
Impairment of Long-Lived Asse32
Impairment of Long-Lived Assets (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets by Type [Table Text Block] | 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.” Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Restaurants leased or subleased to franchisees $ 7,551 $ 77 $ 8,256 $ 2,274 Company-owned restaurants 2,073 — 2,547 — Surplus properties 394 — 1,152 332 $ 10,018 $ 77 $ 11,955 $ 2,606 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Weighted average number of shares used to calculate basic and diluted net income per share | The weighted average number of shares used to calculate basic and diluted net income per share were as follows: Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Common stock: Weighted average basic shares outstanding 363,766 366,712 365,175 374,132 Dilutive effect of stock options and restricted shares 6,776 5,460 6,700 6,630 Weighted average diluted shares outstanding 370,542 372,172 371,875 380,762 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Equity [Abstract] | |
Summary of Stockholders' Equity | The following is a summary of the changes in stockholders’ equity: Six Months Ended June 28, June 29, Balance at beginning of period $ 1,717,576 $ 1,929,486 Comprehensive income 52,563 74,205 Dividends (40,189 ) (36,648 ) Repurchases of common stock (63,206 ) (277,275 ) Share-based compensation 12,242 15,158 Exercises of stock options 15,278 23,412 Vesting of restricted shares (1,393 ) (1,397 ) Tax benefit from share-based compensation 45,452 17,338 Other 103 87 Balance at end of period $ 1,738,426 $ 1,744,366 |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges Pension Total Balance at December 28, 2014 $ (28,363 ) $ (2,044 ) $ (887 ) $ (31,294 ) Current-period other comprehensive loss (12,494 ) (2,442 ) (203 ) (15,139 ) Balance at June 28, 2015 $ (40,857 ) $ (4,486 ) $ (1,090 ) $ (46,433 ) Balance at December 29, 2013 $ (9,803 ) $ 744 $ (1,278 ) $ (10,337 ) Current-period other comprehensive income (loss) 975 (2,418 ) 338 (1,105 ) Balance at June 29, 2014 $ (8,828 ) $ (1,674 ) $ (940 ) $ (11,442 ) |
Basis of Presentation Schedul35
Basis of Presentation Schedule of Prior Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | Feb. 28, 2015 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Future company-owned restaurant ownership percentage | 5.00% | ||||||||
System optimization gains, net | $ (15,654) | $ (1,418) | [1] | $ (14,849) | $ (74,395) | [1] | |||
Reorganization and realignment costs | 6,279 | 1,276 | [2] | 10,892 | 15,987 | [2] | |||
Impairment of long-lived assets | 10,018 | 77 | 11,955 | 2,606 | $ 19,613 | ||||
Other operating (income) expense, net | $ 9,355 | 5,403 | $ 15,504 | 8,760 | |||||
Total of Income Statement Line Items Affected by Prior Period Reclassifications | 5,338 | (47,042) | |||||||
Prior Period Reclassifications of Gain on Property Plant Equipment, Net | [3] | 0 | 0 | ||||||
Prior Period Reclassification of System Optimization Measurement | [4] | 0 | 0 | ||||||
Scenario, Previously Reported [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
System optimization gains, net | 0 | 0 | |||||||
Reorganization and realignment costs | [2] | 883 | (43,150) | ||||||
Impairment of long-lived assets | 0 | 332 | |||||||
Other operating (income) expense, net | [5] | 4,455 | (4,224) | ||||||
Total of Income Statement Line Items Affected by Prior Period Reclassifications | [5] | 5,338 | (47,042) | ||||||
System optimization gains, net [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prior Period Reclassifications of Gain on Property Plant Equipment, Net | [3] | (1,418) | (74,395) | ||||||
Prior Period Reclassification of System Optimization Measurement | [4] | 0 | 0 | ||||||
Reorganization and realignment costs [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prior Period Reclassifications of Gain on Property Plant Equipment, Net | [2],[3] | 470 | 61,411 | ||||||
Prior Period Reclassification of System Optimization Measurement | [2],[4] | (77) | (2,274) | ||||||
Impairment of long-lived assets [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prior Period Reclassifications of Gain on Property Plant Equipment, Net | [3] | 0 | 0 | ||||||
Prior Period Reclassification of System Optimization Measurement | [4] | 77 | 2,274 | ||||||
Other operating (income) expense, net [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prior Period Reclassifications of Gain on Property Plant Equipment, Net | [3] | 948 | 12,984 | ||||||
Prior Period Reclassification of System Optimization Measurement | [4] | 0 | 0 | ||||||
Term Loan, 2013 [Member] | Other Debt Obligations [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Deferred Finance Costs, Net | [6] | $ 8,243 | |||||||
Discontinued Operations [Member] | Scenario, Previously Reported [Member] | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Other operating (income) expense, net | $ (22) | $ (37) | |||||||
[1] | Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. | ||||||||
[2] | Previously titled “Facilities action charges (income), net.” | ||||||||
[3] | Reclassified the gain on sales of restaurants, net, previously included in “Facilities action charges (income), net” and the gain on disposal of assets, net, which included sales of restaurants and other assets, and was previously reported in “Other operating (income) expense, net” to a separate line in our condensed consolidated statements of operations, “System optimization gains, net.” | ||||||||
[4] | Reclassified impairment losses recorded in connection with the sale or anticipated sale of restaurants (“System Optimization Remeasurement”), previously included in “Facilities action charges (income), net” to “Impairment of long-lived assets.” | ||||||||
[5] | “As Previously Reported,” reflects adjustments to reclassify the Bakery’s gain on disposal of assets of $22 and $37 for the three and six months ended June 29, 2014, respectively, from “Other operating (income) expense, net” to “Income from discontinued operations.” | ||||||||
[6] | During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 1 and Note 16 for further information. |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 28, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jun. 29, 2014 | Dec. 29, 2013 | Jun. 28, 2015 | Jun. 29, 2014 | May. 31, 2015 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Percentage of Membership Interests Sold | 100.00% | ||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 78,500 | ||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Revenues | [1] | $ 11,408 | $ 17,348 | $ 25,885 | $ 32,094 | ||||||||
Cost of sales | [2] | (9,175) | (12,639) | (7,336) | (23,464) | ||||||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 2,233 | 4,709 | 18,549 | 8,630 | |||||||||
General and administrative | (483) | (549) | (1,097) | (1,304) | |||||||||
Depreciation and amortization | [3] | (962) | (1,497) | (2,297) | (2,938) | ||||||||
Other expense, net | [4] | (12) | (24) | (34) | (59) | ||||||||
Income from discontinued operations before income taxes | 776 | 2,639 | 15,121 | 4,329 | |||||||||
Provision for income taxes | (545) | (959) | (5,533) | (1,355) | |||||||||
Income from discontinued operations, net of income taxes | 231 | 1,680 | 9,588 | 2,974 | |||||||||
Gain on disposal of discontinued operations before income taxes | 27,338 | 0 | 27,338 | 0 | |||||||||
Provision for income taxes on gain on disposal | 12,199 | [5] | 0 | 12,199 | [5] | 0 | |||||||
Gain on disposal of discontinued operations, net of income taxes | 15,139 | 0 | 15,139 | 0 | |||||||||
Net income from discontinued operations | 15,370 | 1,680 | 24,727 | 2,974 | |||||||||
Severance Related Costs Associated with Discontinued Operation | 791 | ||||||||||||
Dispositions | 38,697 | 116,204 | |||||||||||
Capital Expenditure, Discontinued Operations | 2,106 | 803 | 2,693 | 1,553 | |||||||||
Bakery [Member] | |||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Other income | 40 | 22 | 32 | 37 | |||||||||
Cost of Sales [Member] | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | $ 996 | ||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Severance Related Costs Associated with Discontinued Operation | 791 | ||||||||||||
Withdrawal from Multiemployer Defined Benefit Plan [Member] | Cost of Sales [Member] | |||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | $ 13,500 | |||||||||||
Sale of Other Assets [Member] | |||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Dispositions | 905 | 7,725 | [6] | 2,598 | 14,607 | [6] | |||||||
Sale of Other Assets [Member] | Bakery [Member] | |||||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||||
Dispositions | [6] | $ 41 | $ 22 | $ 50 | $ 37 | ||||||||
[1] | Includes sales of sandwich buns and related products previously reported in “Sales” as well as rental income. | ||||||||||||
[2] | The three and six months ended June 28, 2015 include employee separation related costs of $791 as a result of the sale of the Bakery. In addition, the six months ended June 28, 2015, includes a reduction to cost of sales of $12,486 resulting from the reversal of a liability associated with the Bakery’s withdrawal from a multiemployer pension plan. See Note 15 for further discussion. | ||||||||||||
[3] | Included in “Depreciation and amortization” in our condensed consolidated statements of cash flows for the periods presented. | ||||||||||||
[4] | Includes net gains on sales of other assets. During the three and six months ended June 28, 2015, the Bakery received cash proceeds of $41 and $50, respectively, resulting in net gains on sales of other assets of $40 and $32, respectively. During the three and six months ended June 29, 2014, the Bakery received cash proceeds of $22 and $37, resulting in net gains on sales of other assets of $22 and $37, respectively. | ||||||||||||
[5] | Includes the impact of non-deductible goodwill disposed of as a result of the sale. | ||||||||||||
[6] | Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. |
Discontinued Operations Gain on
Discontinued Operations Gain on Disposal (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | May. 31, 2015 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of Bakery | $ 78,408 | $ 0 | ||||||
Gain on disposal of discontinued operations before income taxes | $ 27,338 | $ 0 | 27,338 | 0 | ||||
Provision for income taxes | (12,199) | [1] | 0 | (12,199) | [1] | 0 | ||
Gain on disposal of discontinued operations, net of income taxes | 15,139 | $ 0 | 15,139 | $ 0 | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 78,500 | |||||||
Obligation for Employer Provided Health Insurance [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Other | (1,993) | |||||||
Bakery [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of Bakery | [2] | 78,408 | 78,408 | |||||
Net working capital | [3] | (5,655) | (5,655) | |||||
Net properties sold | [4] | (30,664) | (30,664) | |||||
Goodwill allocated to the sale of the Bakery | (12,067) | (12,067) | ||||||
Other | [5] | $ (2,684) | $ (2,684) | |||||
[1] | Includes the impact of non-deductible goodwill disposed of as a result of the sale. | |||||||
[2] | Represents net proceeds received, which includes the purchase price of $78,500 less transaction closing costs paid directly by the Buyer on the Company’s behalf. | |||||||
[3] | Primarily represents accounts receivable, inventory, prepaid expenses and accounts payable. | |||||||
[4] | Net properties sold consisted primarily of buildings, equipment and capital leases for transportation equipment. | |||||||
[5] | Primarily includes the recognition of the Company’s obligation, pursuant to the sale agreement, to provide health insurance benefits to the Bakery’s employees through December 31, 2015 of $1,993 and transaction closing costs paid directly by the Company. |
System Optimization Gains, Ne38
System Optimization Gains, Net System Optimization Gain on Sale of Restaurants, Net (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||||||||
Jun. 28, 2015USD ($)stores | Jun. 29, 2014USD ($)stores | [1] | Mar. 30, 2014USD ($) | [1] | Jun. 28, 2015USD ($)stores | Jun. 29, 2014USD ($)stores | Dec. 28, 2014stores | Dec. 29, 2013stores | Jun. 28, 2015USD ($)stores | Feb. 28, 2015stores | |||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Number of restaurants sold to franchisees | stores | 0 | 100 | 178 | [1] | 255 | 244 | |||||||||
Significant Changes, Planned Franchises to Sell | stores | 540 | ||||||||||||||
Future company-owned restaurant ownership percentage | 5.00% | ||||||||||||||
Gain on Sale of Restaurants [Abstract] | |||||||||||||||
Proceeds from sale of restaurants | $ 38,697 | $ 116,204 | |||||||||||||
Gain on sales, net | $ 15,654 | $ 1,418 | 14,849 | 74,395 | [1] | ||||||||||
Sale of Company-Owned Restaurants to Franchiees [Member] | |||||||||||||||
Gain on Sale of Restaurants [Abstract] | |||||||||||||||
Proceeds from sale of restaurants | 31,468 | 0 | 36,049 | 101,560 | [1] | ||||||||||
Net assets sold | [2] | (15,158) | 0 | (17,380) | (42,016) | [1] | |||||||||
Goodwill related to sales of restaurants | (6,840) | 0 | (7,863) | (13,658) | [1] | ||||||||||
Net (unfavorable) favorable leases | [3] | 7,923 | 0 | 7,395 | 24,981 | [1] | |||||||||
Other | (2,822) | [4] | 0 | (3,224) | [4] | 300 | [1] | ||||||||
Gain on sales of restaurants, net, before post-closing adjustments | 14,571 | 0 | 14,977 | 71,167 | [1] | ||||||||||
Post-closing adjustments on sales of restaurants | 934 | [5] | 470 | (639) | [5] | (1,117) | [1] | ||||||||
Gain on sales, net | 15,505 | 470 | 14,338 | 70,050 | [1] | ||||||||||
Favorable Lease Assets | 23,428 | $ 47,392 | 25,807 | ||||||||||||
Unfavorable Lease Liabilities | 15,505 | $ 22,411 | 18,412 | ||||||||||||
Sale of Other Assets [Member] | |||||||||||||||
Gain on Sale of Restaurants [Abstract] | |||||||||||||||
Proceeds from sale of restaurants | 905 | 7,725 | 2,598 | 14,607 | [1] | ||||||||||
Gain on sales, net | [6] | $ 149 | $ 948 | $ 511 | $ 4,345 | [1] | |||||||||
System Optimization [Member] | |||||||||||||||
Gain on Sale of Restaurants [Abstract] | |||||||||||||||
Franchises Sold, Deferred Gain on Sale of Property | stores | 14 | 14 | |||||||||||||
Recognition of Note Receivable | [4] | $ 1,801 | $ 1,801 | ||||||||||||
Franchises Sold, Recognition of Note Receivable | stores | 16 | 16 | |||||||||||||
Recognition of deferred gain | [5] | $ 2,450 | |||||||||||||
System Optimization [Member] | Other Liabilities [Member] | |||||||||||||||
Gain on Sale of Restaurants [Abstract] | |||||||||||||||
Deferred Gain on Sale of Property | $ 2,387 | $ 2,387 | $ 2,387 | ||||||||||||
CANADA | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Number of restaurants sold to franchisees | stores | 83 | 129 | |||||||||||||
[1] | Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details. | ||||||||||||||
[2] | Net assets sold consisted primarily of cash, inventory and equipment. | ||||||||||||||
[3] | During the three and six months ended June 28, 2015, the Company recorded favorable lease assets of $23,428 and $25,807, respectively, and unfavorable lease liabilities of $15,505 and $18,412, respectively, as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. During the first quarter of 2014, the Company recorded favorable lease assets of $47,392 and unfavorable lease liabilities of $22,411. | ||||||||||||||
[4] | The three and six months ended June 28, 2015 includes a deferred gain of $2,387 related to the sale of 14 Canadian restaurants to a franchisee, as a result of certain contingencies related to the extension of lease terms. The deferred gain is included in “Other liabilities.” The three and six months ended June 28, 2015 also includes a note receivable of $1,801 from a franchisee in connection with the sale of 16 Canadian restaurants, which has been recognized as part of the overall loss on sale. | ||||||||||||||
[5] | During the three months ended June 28, 2015, notes receivable from franchisees in connection with sales of restaurants in 2014 were repaid and as a result, we recognized the related gain on sale of $2,450. | ||||||||||||||
[6] | During the three and six months ended June 28, 2015, Wendy’s received cash proceeds of $905 and $2,598, respectively, primarily from the sale of surplus properties. During the three and six months ended June 29, 2014, Wendy’s received cash proceeds of $7,725 and $14,607, respectively, primarily from the sale of surplus properties and the sale of a company-owned aircraft. |
System Optimization Gains, Ne39
System Optimization Gains, Net System Optimization Restaurant Assets Held-for-sale (Details) $ in Thousands | Jun. 28, 2015USD ($)stores | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($)stores | [1] |
Long Lived Assets Held-for-sale [Line Items] | ||||
Number of Restaurants Classified as Assets Held for Sale | stores | 97 | 106 | ||
Restaurant assets held for sale [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Assets held for sale | $ 37,050 | $ 25,266 | ||
Other assets held for sale [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Assets held for sale | $ 8,381 | $ 13,469 | ||
[1] | Reclassifications have been made to the prior year presentation to include restaurants previously excluded from our system optimization initiative to conform to the current year presentation. See Note 1 for further details. |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 6 Months Ended | ||
Jun. 28, 2015USD ($)stores | Jun. 29, 2014USD ($)stores | Dec. 28, 2014USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 795,737 | $ 822,562 | |
Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Restaurants acquired from franchisees | stores | 4 | 3 | |
Properties | $ 1,303 | $ 1,791 | |
Acquired franchise rights | 760 | 1,200 | |
Goodwill | 395 | 0 | |
Deferred taxes and other assets | (40) | 23 | |
Capital leases obligations | (706) | 0 | |
Unfavorable leases | (440) | 0 | |
Other liabilities | (40) | (63) | |
Gain on acquisition of restaurants | 0 | (616) | |
Total consideration paid, net of cash received | $ 1,232 | $ 2,335 |
Realignment and reorganizatio41
Realignment and reorganization costs Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 6,279 | $ 1,276 | [1] | $ 10,892 | $ 15,987 | [1] |
General and Administrative Realignment and Reinvestment [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 4,372 | 0 | 8,535 | 0 | ||
System Optimization [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 1,907 | $ 1,276 | $ 2,357 | $ 15,987 | ||
[1] | Previously titled “Facilities action charges (income), net.” |
Realignment and reorganizatio42
Realignment and reorganization costs G&A Realignment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | ||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Charges | $ 6,279 | $ 1,276 | [1] | $ 10,892 | $ 15,987 | [1] | |
General and Administrative Realignment and Reinvestment [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost Remaining | 4,500 | 4,500 | |||||
Restructuring and Related Cost, Incurred Cost | 1,160 | 3,644 | |||||
Restructuring Charges | 4,372 | $ 0 | 8,535 | $ 0 | |||
Restructuring and Related Cost, Cost Incurred to Date | 15,858 | 15,858 | |||||
Restructuring Charges, Incurred to Date | 21,461 | 21,461 | |||||
General and Administrative Realignment and Reinvestment [Member] | Severance and related employee costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 637 | 2,619 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 14,536 | 14,536 | |||||
General and Administrative Realignment and Reinvestment [Member] | Recruitment and relocation costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost Remaining | 3,500 | 3,500 | |||||
Restructuring and Related Cost, Incurred Cost | 514 | 984 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 1,193 | 1,193 | |||||
General and Administrative Realignment and Reinvestment [Member] | Other [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 9 | 41 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 129 | 129 | |||||
General and Administrative Realignment and Reinvestment [Member] | Share Based Compensation Expense [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost Remaining | 1,000 | 1,000 | |||||
Restructuring Charges | [2] | 3,212 | 4,891 | ||||
Restructuring Charges, Incurred to Date | [2] | $ 5,603 | $ 5,603 | ||||
[1] | Previously titled “Facilities action charges (income), net.” | ||||||
[2] | Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our G&A realignment plan. |
Realignment and reorganizatio43
Realignment and reorganization costs G&A Realignment Accrual Rollforward (Details) - Jun. 28, 2015 - General and Administrative Realignment and Reinvestment [Member] - USD ($) $ in Thousands | Total | Total |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 11,763 | |
Charges | $ 1,160 | 3,644 |
Payments | (6,922) | |
Ending balance | 8,485 | 8,485 |
Severance and related employee costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 11,609 | |
Charges | 637 | 2,619 |
Payments | (5,974) | |
Ending balance | 8,254 | 8,254 |
Recruitment and relocation costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 149 | |
Charges | 514 | 984 |
Payments | (902) | |
Ending balance | 231 | 231 |
Other [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 5 | |
Charges | 9 | 41 |
Payments | (46) | |
Ending balance | $ 0 | $ 0 |
Realignment and reorganizatio44
Realignment and reorganization costs System Optimization Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Feb. 28, 2015 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Future company-owned restaurant ownership percentage | 5.00% | |||||||||
Restructuring Charges | $ 6,279 | $ 1,276 | [1] | $ 10,892 | $ 15,987 | [1] | ||||
System Optimization [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Expected Cost Remaining | 11,000 | 11,000 | ||||||||
Restructuring and Related Cost, Incurred Cost | 285 | 1,276 | 735 | 11,877 | ||||||
Restructuring and Related Cost, Cost Incurred to Date | 28,347 | 28,347 | ||||||||
Restructuring Charges | 1,907 | 1,276 | 2,357 | 15,987 | ||||||
Restructuring Charges, Incurred to Date | 52,396 | 52,396 | ||||||||
System Optimization [Member] | Severance and related employee costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Incurred Cost | 303 | 393 | 629 | 5,926 | ||||||
Restructuring and Related Cost, Cost Incurred to Date | 17,887 | 17,887 | ||||||||
System Optimization [Member] | Professional fees [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Expected Cost Remaining | [2] | 4,000 | 4,000 | |||||||
Restructuring and Related Cost, Incurred Cost | 110 | 558 | 151 | 3,189 | ||||||
Restructuring and Related Cost, Cost Incurred to Date | 5,964 | 5,964 | ||||||||
System Optimization [Member] | Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Incurred Cost | (128) | [3] | 325 | (45) | [3] | 2,762 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 4,496 | 4,496 | ||||||||
Restructuring Reserve, Accrual Adjustment | 210 | 210 | ||||||||
System Optimization [Member] | Accelerated Depreciation and Amortization [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and Related Cost, Expected Cost Remaining | [2] | 7,000 | 7,000 | |||||||
Restructuring Charges | [2] | 1,622 | 0 | 1,622 | 475 | |||||
Restructuring Charges, Incurred to Date | [2] | 19,036 | 19,036 | |||||||
System Optimization [Member] | Share Based Compensation Expense [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | [4] | 0 | $ 0 | 0 | $ 3,635 | |||||
Restructuring Charges, Incurred to Date | [4] | $ 5,013 | $ 5,013 | |||||||
[1] | Previously titled “Facilities action charges (income), net.” | |||||||||
[2] | Primarily includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that will be or have been sold in connection with our system optimization initiative. | |||||||||
[3] | The three and six months ended June 28, 2015 includes a reversal of an accrual of $210 as a result of a change in estimate. | |||||||||
[4] | Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. |
Realignment and reorganizatio45
Realignment and reorganization costs System Optimization Accrual Rollforward (Details) - System Optimization [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 2,804 | |||||
Charges | $ 285 | $ 1,276 | 735 | $ 11,877 | ||
Payments | (2,851) | |||||
Ending balance | 688 | 688 | ||||
Severance and related employee costs [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 2,235 | |||||
Charges | 303 | 393 | 629 | 5,926 | ||
Payments | (2,438) | |||||
Ending balance | 426 | 426 | ||||
Professional fees [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 146 | |||||
Charges | 110 | 558 | 151 | 3,189 | ||
Payments | (159) | |||||
Ending balance | 138 | 138 | ||||
Other [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 423 | |||||
Charges | (128) | [1] | $ 325 | (45) | [1] | $ 2,762 |
Payments | (254) | |||||
Ending balance | $ 124 | $ 124 | ||||
[1] | The three and six months ended June 28, 2015 includes a reversal of an accrual of $210 as a result of a change in estimate. |
Investments TIMWEN (Details)
Investments TIMWEN (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015USD ($)yr | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($)yr | Jun. 29, 2014USD ($) | ||
Investment in Joint Venture [Roll Forward] | |||||
Equity in earnings for the period, net of amortization of purchase price adjustment | $ 4,545 | $ 4,872 | |||
Distributions received | (5,825) | (6,443) | |||
Foreign currency translation adjustment included in “Other comprehensive loss, net” | $ 4,901 | $ 8,195 | $ (12,494) | 975 | |
TimWen [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Investment in Joint Venture [Roll Forward] | |||||
Balance at beginning of period | $ 69,790 | 79,810 | |||
Equity in earnings for the period | 5,712 | 6,197 | |||
Amortization of purchase price adjustments | [1] | (1,167) | (1,325) | ||
Equity in earnings for the period, net of amortization of purchase price adjustment | 4,545 | 4,872 | |||
Distributions received | (5,825) | (6,443) | |||
Foreign currency translation adjustment included in “Other comprehensive loss, net” | (3,971) | 314 | |||
Balance at end of period | $ 64,539 | $ 78,553 | $ 64,539 | $ 78,553 | |
Purchase price adjustment, amortization period | yr | 21 | 21 | |||
[1] | Based upon an average original aggregate life of 21 years. |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 01, 2015 | May. 31, 2015 | Dec. 28, 2014 | ||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | $ 2,397,377 | $ 2,397,377 | $ 1,438,174 | |||||
Current portion of long-term debt | [1] | (17,595) | (17,595) | (53,202) | ||||
Long-term debt | 2,379,782 | 2,379,782 | 1,384,972 | |||||
Maturities of Long-term Debt [Abstract] | ||||||||
2,015 | [2] | 5,837 | 5,837 | |||||
2,016 | 23,229 | 23,229 | ||||||
2,017 | 23,420 | 23,420 | ||||||
2,018 | 24,532 | 24,532 | ||||||
2,019 | 862,906 | 862,906 | ||||||
Thereafter | 1,513,543 | 1,513,543 | ||||||
Long-term Debt, Gross | 2,453,467 | 2,453,467 | ||||||
Restricted Cash and Cash Equivalents | 27,190 | 27,190 | ||||||
Loss on early extinguishment of debt | (7,295) | $ 0 | (7,295) | $ 0 | ||||
Series 2015-1 Class A-2-I Notes [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | $ 875,000 | $ 875,000 | 0 | |||||
Maturities of Long-term Debt [Abstract] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.371% | |||||||
Anticipated Repayment Date | 4 years 3 months | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.783% | 3.783% | ||||||
Series 2015-1 Class A-2-II Notes [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | $ 900,000 | $ 900,000 | 0 | |||||
Maturities of Long-term Debt [Abstract] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.08% | |||||||
Anticipated Repayment Date | 7 years | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.334% | 4.334% | ||||||
Series 2015-1 Class A-2-III Notes [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | $ 500,000 | $ 500,000 | 0 | |||||
Maturities of Long-term Debt [Abstract] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.497% | |||||||
Anticipated Repayment Date | 10 years | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.678% | 4.678% | ||||||
Term A Loan, 2018 [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | $ 0 | $ 0 | 541,733 | |||||
Term B Loan, 2019 [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | 0 | 0 | 759,758 | |||||
7% Debentures [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | 86,453 | 86,453 | 85,853 | |||||
Series 2015-1 Senior Notes [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Deferred Finance Costs, Gross | (43,094) | (43,094) | ||||||
Term Loan, 2013 [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Loss on early extinguishment of debt | 7,295 | |||||||
Interest Rate Swap [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Payments for fees to terminate cash flow hedge | $ 62 | |||||||
Series 2015-1 Class A-1 Notes [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Additional Interest On Debt | 5.00% | |||||||
Capital Lease Obligations [Member] | ||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||
Debt and Capital Lease Obligations | [1] | 78,467 | $ 78,467 | 59,073 | ||||
Series 2015-1 Senior Notes [Member] | Other Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred Finance Costs, Net | [3] | (42,543) | $ (42,543) | |||||
Term Loan, 2013 [Member] | Other Debt Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Deferred Finance Costs, Net | [3] | (8,243) | ||||||
Minimum [Member] | Series 2015-1 Class A-1 Notes [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||
Maximum [Member] | Series 2015-1 Class A-1 Notes [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.85% | |||||||
Letter of Credit [Member] | Series 2015-1 Class A-1 Notes [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | |||||||
Letters of Credit Outstanding, Amount | $ 22,000 | $ 22,000 | ||||||
Interest Rate Swap [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Payments for fees to terminate cash flow hedge | $ 62 | |||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Term A Loan, 2018 [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Derivative Liability, Notional Amount | $ 350,000 | 350,000 | ||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Term B Loan, 2019 [Member] | ||||||||
Maturities of Long-term Debt [Abstract] | ||||||||
Derivative Liability, Notional Amount | $ 100,000 | $ 100,000 | ||||||
[1] | Capital lease obligations as of December 28, 2014 and the related amounts payable within one year have been updated to exclude the Bakery’s capital lease obligations as a result of the sale of the Bakery during the second quarter of 2015 and the presentation as discontinued operations in our condensed consolidated balance sheet as of December 28, 2014. | |||||||
[2] | Represents maturities of long-term debt for the remainder of our 2015 fiscal year, from June 29, 2015 through January 3, 2016. | |||||||
[3] | During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 1 and Note 16 for further information. |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |||
Reported Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash equivalents | $ 124,214 | $ 61,450 | ||||
Non-current cost method investments | [1] | 6,176 | 4,264 | |||
Cash flow hedges | 0 | 3,343 | ||||
Guarantees of franchisee loan obligations | [2] | 1,028 | 968 | |||
Reported Value Measurement [Member] | Series 2015-1 Class A-2-I Notes [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 875,000 | 0 | ||||
Reported Value Measurement [Member] | Series 2015-1 Class A-2-II Notes [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 900,000 | 0 | ||||
Reported Value Measurement [Member] | Term A Loan, 2018 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 0 | 541,733 | ||||
Reported Value Measurement [Member] | Term B Loan, 2019 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 0 | 759,758 | ||||
Reported Value Measurement [Member] | 7% Debentures [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 86,453 | 85,853 | ||||
Reported Value Measurement [Member] | Series 2015-1 Class A-2-III Notes [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 500,000 | 0 | ||||
Reported Value Measurement [Member] | Arby's Restaurant Group, Inc [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Non-current cost method investments | $ 0 | |||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash equivalents | 124,214 | 61,450 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Non-current cost method investments | [1] | 154,324 | 147,760 | |||
Guarantees of franchisee loan obligations | [2] | 1,028 | 968 | |||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash flow hedges | 0 | 3,343 | [3] | |||
Estimate of Fair Value Measurement [Member] | Series 2015-1 Class A-2-I Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 868,875 | [4] | 0 | |||
Estimate of Fair Value Measurement [Member] | Series 2015-1 Class A-2-II Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 892,350 | [4] | 0 | |||
Estimate of Fair Value Measurement [Member] | Term A Loan, 2018 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 0 | 540,717 | [4] | |||
Estimate of Fair Value Measurement [Member] | Term B Loan, 2019 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | 0 | 752,160 | [4] | |||
Estimate of Fair Value Measurement [Member] | 7% Debentures [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | [4] | 106,000 | 104,250 | |||
Estimate of Fair Value Measurement [Member] | Series 2015-1 Class A-2-III Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt instrument | $ 491,150 | [4] | $ 0 | |||
[1] | The fair value of our indirect investment in Arby’s Restaurant Group, Inc. (“Arby’s”) is based on applying a multiple to Arby’s earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. | |||||
[2] | Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for new restaurant development and equipment financing. In addition during 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. | |||||
[3] | The fair values were developed using market observable data for all significant inputs. | |||||
[4] | The fair values were based on quoted market prices in markets that are not considered active markets. |
Fair Value Measurements Derivat
Fair Value Measurements Derivative Instruments (Details) $ in Thousands | 6 Months Ended | ||||
Jun. 28, 2015USD ($) | Jun. 29, 2014USD ($) | May. 31, 2015USD ($)cash_flow_hedge | Dec. 28, 2014USD ($)cash_flow_hedge | ||
Derivatives, Fair Value [Line Items] | |||||
Number of interest rate derivatives held | cash_flow_hedge | 7 | 7 | |||
Payments for termination of cash flow hedges | $ 7,337 | $ 0 | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 7,275 | ||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, net | 0 | ||||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Payments for termination of cash flow hedges | 7,275 | ||||
Payments for fees to terminate cash flow hedge | $ 62 | ||||
Interest Rate Swap [Member] | Other Liabilities [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash flow hedges | [1] | $ 3,343 | |||
Cash Flow Hedging [Member] | Term A Loan, 2018 [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Notional Amount | $ 350,000 | 350,000 | |||
Cash Flow Hedging [Member] | Term B Loan, 2019 [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Liability, Notional Amount | $ 100,000 | $ 100,000 | |||
[1] | The fair values were based on quoted market prices in markets that are not considered active markets. |
Fair Value Measurements Non-Rec
Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 10,803 | $ 17,139 | |||
Impairment of Long-Lived Assets to be Disposed of | $ 394 | $ 0 | 1,152 | $ 332 | 2,474 |
Impairment of long-lived assets | 10,018 | $ 77 | 11,955 | $ 2,606 | 19,613 |
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||
Assets Held and Used, Long Lived, Fair Value Disclosure | 3,402 | 3,402 | 8,651 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,353 | 2,353 | 4,967 | ||
Total | 5,755 | 5,755 | 13,618 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||
Assets Held and Used, Long Lived, Fair Value Disclosure | 0 | 0 | 0 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||
Assets Held and Used, Long Lived, Fair Value Disclosure | 0 | 0 | 0 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||||
Assets Held and Used, Long Lived, Fair Value Disclosure | 3,402 | 3,402 | 8,651 | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,353 | 2,353 | 4,967 | ||
Total | $ 5,755 | $ 5,755 | $ 13,618 |
Impairment of Long-Lived Asse51
Impairment of Long-Lived Assets Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 10,803 | $ 17,139 | |||
Impairment of Long-Lived Assets to be Disposed of | $ 394 | $ 0 | 1,152 | $ 332 | 2,474 |
Impairment of long-lived assets | 10,018 | 77 | 11,955 | 2,606 | $ 19,613 |
Restaurants leased or subleased to franchisees | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 7,551 | 77 | 8,256 | 2,274 | |
Company-owned restaurants | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 2,073 | $ 0 | $ 2,547 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 38.10% | 44.20% | 34.40% | 41.60% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
State Income Tax Benefit from Tax Examination | $ 1,872 | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 3,686 | |||
Unrecognized Tax Benefits, Decrease Resulting from Unfavorable Court Decisions | 1,274 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 964 | $ 964 |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Common Stock: | ||||
Weighted average basic shares outstanding | 363,766 | 366,712 | 365,175 | 374,132 |
Dilutive effect of stock options and restricted shares | 6,776 | 5,460 | 6,700 | 6,630 |
Weighted average diluted shares outstanding | 370,542 | 372,172 | 371,875 | 380,762 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 434 | 4,758 | 599 | 5,306 |
Equity Rollforward (Details)
Equity Rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ 1,717,576 | $ 1,929,486 |
Comprehensive Income | 52,563 | 74,205 |
Dividends | (40,189) | (36,648) |
Repurchases of common stock | (63,206) | (277,275) |
Share-based compensation | 12,242 | 15,158 |
Exercises of stock options | 15,278 | 23,412 |
Vesting of restricted shares | (1,393) | (1,397) |
Tax benefit from share-based compensation | 45,452 | 17,338 |
Other | 103 | 87 |
Balance at end of period | $ 1,738,426 | $ 1,744,366 |
Equity Repurchases of Common St
Equity Repurchases of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands | Jul. 17, 2015 | Jul. 08, 2015 | Feb. 19, 2014 | Jun. 28, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 03, 2015 | Jun. 01, 2015 | Aug. 31, 2014 | Jan. 31, 2014 |
$1.4 Billion Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,400,000 | |||||||||
Tender Offer and Purchase Agreement [Domain] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 850,000 | |||||||||
Tender Offer [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | 639,000 | |||||||||
Stock Repurchase Program, Cost Incurred | $ 1,489 | |||||||||
Tender Offer [Member] | Subsequent Event [Member] | ||||||||||
Treasury Stock, Shares, Acquired | 55,808 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 639,000 | |||||||||
Purchase agreement [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 211,000 | |||||||||
Purchase agreement [Member] | Subsequent Event [Member] | ||||||||||
Treasury Stock, Shares, Acquired | 18,416 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 210,867 | |||||||||
$100 Million Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||||||
Stock Repurchase Program, Cost Incurred | $ 86 | |||||||||
Treasury Stock, Shares, Acquired | 5,655 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 61,631 | |||||||||
$275 Million Repurchase Program [Member] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 275,000 | |||||||||
Stock Repurchase Program, Cost Incurred | $ 2,275 | |||||||||
Treasury Stock, Shares, Acquired | 29,730 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 275,000 |
Equity Accumulated Other Compre
Equity Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of year | $ (31,294) | $ (10,337) |
Current-period other comprehensive (loss) income | (15,139) | (1,105) |
Balance, end of the period | (46,433) | (11,442) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of year | (28,363) | (9,803) |
Current-period other comprehensive (loss) income | (12,494) | 975 |
Balance, end of the period | (40,857) | (8,828) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of year | (2,044) | 744 |
Current-period other comprehensive (loss) income | (2,442) | (2,418) |
Balance, end of the period | (4,486) | (1,674) |
Pension | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of year | (887) | (1,278) |
Current-period other comprehensive (loss) income | (203) | 338 |
Balance, end of the period | $ (1,090) | $ (940) |
Transactions with Related Par57
Transactions with Related Parties (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 17, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | May. 29, 2015 |
Related Party Transaction [Line Items] | ||||
Percentage of Outstanding Shares Owned | 24.80% | |||
QSCC [Member] | General and Administrative Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 92 | $ 92 | ||
TimWen [Member] | General and Administrative Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 112 | 125 | ||
TimWen [Member] | Cost of Sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 4,015 | $ 3,127 | ||
TimWen [Member] | Other operating (income) expense, net [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1,877 | |||
Purchase agreement [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Treasury Stock, Shares, Acquired | 18,416 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 11.45 | |||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 210,867 |
Legal and Environmental Matte58
Legal and Environmental Matters (Details) $ in Thousands | Jun. 28, 2015USD ($) |
Loss Contingency [Abstract] | |
Accruals for legal and environmental matters | $ 2,664 |
Multiemployer Pension Plan Mult
Multiemployer Pension Plan Multiemployer Plans (Details) - Withdrawal from Multiemployer Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 18 Months Ended | |
Mar. 29, 2015 | Dec. 29, 2013 | Jun. 28, 2015 | |
Loss Contingencies [Line Items] | |||
Withdrawal Obligation Payments | $ 1,014 | ||
Cost of Sales [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | $ 13,500 |
New Accounting Standards (Detai
New Accounting Standards (Details) $ in Thousands | Dec. 28, 2014USD ($) | |
Term Loan, 2013 [Member] | Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Deferred Finance Costs, Net | [1] | $ 8,243 |
[1] | During the second quarter of 2015, the Company early adopted an amendment requiring debt issuance costs be presented in the balance sheet as a direct reduction of the related debt liability rather than as an asset. The adoption of this guidance resulted in the reclassification of debt issuance costs of $8,243 from “Other assets” to “Long-term debt” in our condensed consolidated balance sheet as of December 28, 2014. See Note 1 and Note 16 for further information. |