Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2017 | Feb. 22, 2017 | Jul. 01, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WENDY'S CO | ||
Entity Central Index Key | 30,697 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 1, 2017 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 246,926,773 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,938.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 198,240 | $ 327,216 |
Restricted cash | 57,612 | 42,869 |
Accounts and notes receivable, net | 98,825 | 104,854 |
Inventories | 2,851 | 4,312 |
Prepaid expenses and other current assets | 19,244 | 69,919 |
Advertising funds restricted assets | 75,760 | 67,399 |
Total current assets | 452,532 | 616,569 |
Properties | 1,192,339 | 1,227,944 |
Goodwill | 741,410 | 770,781 |
Other intangible assets | 1,322,531 | 1,339,587 |
Investments | 56,981 | 58,369 |
Other assets | 173,521 | 95,470 |
Total assets | 3,939,314 | 4,108,720 |
Current liabilities: | ||
Current portion of long-term debt | 24,652 | 23,290 |
Accounts payable | 27,635 | 53,681 |
Accrued expenses and other current liabilities | 102,034 | 124,404 |
Advertising funds restricted liabilities | 75,760 | 67,399 |
Total current liabilities | 230,081 | 268,774 |
Long-term debt | 2,487,630 | 2,402,823 |
Deferred income taxes | 446,513 | 459,713 |
Other liabilities | 247,354 | 224,496 |
Total liabilities | 3,411,578 | 3,355,806 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 246,574 and 272,315 shares outstanding, respectively | 47,042 | 47,042 |
Additional paid-in capital | 2,878,589 | 2,874,752 |
Accumulated deficit | (290,857) | (356,632) |
Common stock held in treasury, at cost | (2,043,797) | (1,741,425) |
Accumulated other comprehensive loss | (63,241) | (70,823) |
Total stockholders’ equity | 527,736 | 752,914 |
Total liabilities and stockholders’ equity | $ 3,939,314 | $ 4,108,720 |
Consolidated Balance Sheets Bal
Consolidated Balance Sheets Balance Sheet Parentheticals - $ / shares shares in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
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 |
Common Stock, Shares, Outstanding | 246,574 | 272,315 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Revenues: | |||
Sales | $ 920,758 | $ 1,438,802 | $ 1,608,455 |
Franchise royalty revenue and fees | 371,545 | 344,523 | 322,053 |
Franchise rental income | 143,115 | 86,972 | 67,994 |
Total revenues | 1,435,418 | 1,870,297 | 1,998,502 |
Costs and expenses: | |||
Cost of sales | 744,701 | 1,184,073 | 1,355,086 |
Franchise rental expense | 67,760 | 47,779 | 37,845 |
General and administrative | 245,869 | 256,553 | 260,732 |
Depreciation and amortization | 122,704 | 145,051 | 153,882 |
System optimization gains, net | (71,931) | (74,009) | (91,510) |
Reorganization and realignment costs | 10,083 | 21,910 | 31,903 |
Impairment of long-lived assets | 16,241 | 25,001 | 19,613 |
Other operating income, net | (14,789) | (10,531) | (11,637) |
Costs and expenses | 1,120,638 | 1,595,827 | 1,755,914 |
Operating profit | 314,780 | 274,470 | 242,588 |
Interest expense | (114,802) | (86,067) | (51,994) |
Loss on early extinguishment of debt | 0 | (7,295) | 0 |
Investment income, net | 723 | 52,214 | 1,199 |
Other income, net | 989 | 806 | 747 |
Income from continuing operations before income taxes | 201,690 | 234,128 | 192,540 |
Provision for income taxes | (72,066) | (94,149) | (76,116) |
Income from continuing operations | 129,624 | 139,979 | 116,424 |
Discontinued operations: | |||
Income from discontinued operations, net of income taxes | 0 | 10,494 | 5,010 |
Gain on disposal of discontinued operations, net of income taxes | 0 | 10,669 | 0 |
Net income from discontinued operations | 0 | 21,163 | 5,010 |
Net income | $ 129,624 | $ 161,142 | $ 121,434 |
Basic income per share: | |||
Continuing operations | $ 0.49 | $ 0.43 | $ 0.31 |
Discontinued operations | 0 | 0.07 | 0.01 |
Net income | 0.49 | 0.50 | 0.33 |
Diluted income per share: | |||
Continuing operations | 0.49 | 0.43 | 0.31 |
Discontinued operations | 0 | 0.06 | 0.01 |
Net income | $ 0.49 | $ 0.49 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Net income | $ 129,624 | $ 161,142 | $ 121,434 |
Other comprehensive income (loss), net: | |||
Foreign currency translation adjustment | 5,864 | (37,800) | (18,560) |
Change in unrecognized pension loss, net of income tax benefit (provision) of $34, $125 and $(160), respectively | (56) | (202) | 391 |
Effect of cash flow hedges, net of income tax (provision) benefit of $(1,120), $918 and $1,767, respectively | 1,774 | (1,527) | (2,788) |
Other comprehensive income (loss), net | 7,582 | (39,529) | (20,957) |
Comprehensive income | $ 137,206 | $ 121,613 | $ 100,477 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Change in unrecognized pension loss, net of income tax benefit (provision) of $34, $125 and $(160), respectively | $ 34 | $ 125 | $ (160) |
Effect of cash flow hedges, net of income tax (provision) benefit of $(1,120), $918 and $1,767, respectively | $ (1,120) | $ 918 | $ 1,767 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) |
Stockholders' Equity, beginning of period at Dec. 29, 2013 | $ 1,929,486 | $ 47,042 | $ 2,794,445 | $ (492,215) | $ (409,449) | $ (10,337) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 121,434 | 0 | 0 | 121,434 | 0 | 0 |
Other comprehensive (loss) income, net | (20,957) | 0 | 0 | 0 | 0 | (20,957) |
Cash dividends | (75,117) | 0 | 0 | (75,117) | 0 | 0 |
Repurchases of common stock | (301,216) | 0 | 0 | 0 | (301,216) | 0 |
Share-based compensation | 28,243 | 0 | 28,243 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 30,775 | 0 | 3,485 | 0 | 27,290 | 0 |
Common stock issued upon vesting of restricted shares | (3,806) | 0 | (7,812) | 0 | 4,006 | 0 |
Tax benefit (charge) from share-based compensation | 8,546 | 0 | 8,546 | 0 | 0 | 0 |
Other | 188 | 0 | 58 | (19) | 149 | 0 |
Stockholders' Equity, end of period at Dec. 28, 2014 | 1,717,576 | 47,042 | 2,826,965 | (445,917) | (679,220) | (31,294) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 161,142 | 0 | 0 | 161,142 | 0 | 0 |
Other comprehensive (loss) income, net | (39,529) | 0 | 0 | 0 | 0 | (39,529) |
Cash dividends | (71,845) | 0 | 0 | (71,845) | 0 | 0 |
Repurchases of common stock | (1,100,417) | 0 | 0 | 0 | (1,100,417) | 0 |
Share-based compensation | 23,231 | 0 | 23,231 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 23,235 | 0 | (6,719) | 0 | 29,954 | 0 |
Common stock issued upon vesting of restricted shares | (7,397) | 0 | (15,502) | 0 | 8,105 | 0 |
Tax benefit (charge) from share-based compensation | 46,718 | 0 | 46,718 | 0 | 0 | 0 |
Other | 200 | 0 | 59 | (12) | 153 | 0 |
Stockholders' Equity, end of period at Jan. 03, 2016 | 752,914 | 47,042 | 2,874,752 | (356,632) | (1,741,425) | (70,823) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 129,624 | 0 | 0 | 129,624 | 0 | 0 |
Other comprehensive (loss) income, net | 7,582 | 0 | 0 | 0 | 0 | 7,582 |
Cash dividends | (63,832) | 0 | 0 | (63,832) | 0 | 0 |
Repurchases of common stock | (335,258) | 0 | 0 | 0 | (335,258) | 0 |
Share-based compensation | 18,141 | 0 | 18,141 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 18,981 | 0 | (6,395) | 0 | 25,376 | 0 |
Common stock issued upon vesting of restricted shares | (3,862) | 0 | (11,195) | 0 | 7,333 | 0 |
Tax benefit (charge) from share-based compensation | 3,257 | 0 | 3,257 | 0 | 0 | 0 |
Other | 189 | 0 | 29 | (17) | 177 | 0 |
Stockholders' Equity, end of period at Jan. 01, 2017 | $ 527,736 | $ 47,042 | $ 2,878,589 | $ (290,857) | $ (2,043,797) | $ (63,241) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 129,624 | $ 161,142 | $ 121,434 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 124,304 | 153,732 | 159,860 |
Share-based compensation | 18,141 | 23,231 | 28,243 |
Impairment of long-lived assets | 16,241 | 25,001 | 19,613 |
Deferred income tax | (14,213) | 89,026 | 69,540 |
Excess tax benefits from share-based compensation | (3,082) | (49,613) | (9,363) |
Non-cash rent expense, net | (7,543) | 3,364 | 1,951 |
Net receipt (recognition) of deferred vendor incentives | 959 | (2,559) | 4,063 |
System optimization gains, net | (71,931) | (74,041) | (91,579) |
Gain on disposal of the Bakery | 0 | (25,529) | 0 |
Gain on sale of investments, net | (497) | (335) | (975) |
Distributions received from TimWen joint venture | 11,426 | 12,451 | 13,896 |
Equity in earnings in joint ventures, net | (8,351) | (9,205) | (10,176) |
Long-term debt-related activities, net (see below) | 11,767 | 8,075 | 3,625 |
Other, net | 4,172 | (4,318) | (11,686) |
Changes in operating assets and liabilities: | |||
Restricted cash | 228 | (23,640) | 0 |
Accounts and notes receivable, net | (38,657) | (52,620) | (2,763) |
Inventories | 34 | (62) | 706 |
Prepaid expenses and other current assets | (3,276) | (5,409) | (2,976) |
Accounts payable | (6,635) | (7,787) | (3,105) |
Accrued expenses and other current liabilities | 18,697 | (8,424) | (35,532) |
Net cash provided by operating activities | 181,408 | 212,480 | 254,776 |
Cash flows from investing activities: | |||
Capital expenditures | (150,023) | (251,622) | (298,471) |
Acquisitions | (2,209) | (1,232) | (53,954) |
Dispositions | 262,173 | 204,388 | 161,386 |
Proceeds from sale of the Bakery | 0 | 78,408 | 0 |
Changes in restricted cash | (14,971) | 3,634 | 1,750 |
Notes receivable, net | (3,581) | 3,289 | 434 |
Proceeds from Sale of Investment Projects | 890 | 621 | 2,193 |
Payments to Acquire Investments | 172 | 2,106 | 1,150 |
Net cash provided by (used in) investing activities | 92,107 | 35,380 | (187,812) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 0 | 2,294,000 | 0 |
Repayments of long-term debt | (24,617) | (1,327,223) | (38,380) |
Change in restricted cash | 0 | (5,687) | 0 |
Deferred financing costs | (1,983) | (43,817) | 0 |
Repurchases of common stock | (336,958) | (1,098,717) | (301,216) |
Dividends | (63,832) | (71,845) | (75,117) |
Proceeds from stock option exercises | 19,773 | 27,952 | 30,788 |
Excess tax benefits from share-based compensation | 3,082 | 49,613 | 9,363 |
Net cash used in financing activities | (404,535) | (175,724) | (374,562) |
Net cash (used in) provided by operations before effect of exchange rate changes on cash | (131,020) | 72,136 | (307,598) |
Effect of exchange rate changes on cash | 2,044 | (12,196) | (5,278) |
Net (decrease) increase in cash and cash equivalents | (128,976) | 59,940 | (312,876) |
Cash and cash equivalents at beginning of period | 327,216 | 267,276 | 580,152 |
Cash and cash equivalents at end of period | 198,240 | 327,216 | 267,276 |
Long-term debt-related activities, net: | |||
Accretion of long-term debt | 1,220 | 1,204 | 1,187 |
Amortization of deferred financing costs | 7,653 | 5,426 | 2,438 |
Loss on early extinguishment of debt | 0 | 7,295 | 0 |
Payments for termination of cash flow hedges | 0 | (7,337) | 0 |
Reclassification of unrealized losses on cash flow hedges | 2,894 | 1,487 | 0 |
Long-term debt-related activities, net: | 11,767 | 8,075 | 3,625 |
Cash paid for: | |||
Interest | 117,583 | 84,326 | 52,357 |
Income taxes, net of refunds | 77,620 | 41,275 | 15,826 |
Supplemental non-cash investing and financing activities: | |||
Capital expenditures included in accounts payable | 11,325 | 31,468 | 45,409 |
Capitalized lease obligations | 104,119 | 57,226 | 22,255 |
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | 512 | 0 | 0 |
Notes receivable | $ 0 | $ 0 | $ 3,934 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 01, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | Summary of Significant Accounting Policies Corporate Structure The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us,” or “our”) is the parent company of its 100% owned subsidiary holding company, Wendy’s Restaurants, LLC (“Wendy’s Restaurants”). Wendy’s Restaurants is the parent company of Wendy’s International, LLC and its subsidiaries (“Wendy’s”). Wendy’s franchises and operates Wendy’s ® quick-service restaurants specializing in hamburger sandwiches throughout North America (defined as the United States of America (“U.S.”) and Canada). Wendy’s also has franchised restaurants in 29 foreign countries and U.S. territories. At January 1, 2017 , Wendy’s operated and franchised 330 and 6,207 restaurants, respectively. On May 31, 2015, Wendy’s completed the sale of its Company-operated bakery, The New Bakery Company, LLC and its subsidiaries (collectively, the “Bakery”), a 100% owned subsidiary of Wendy’s. As a result of the sale of the Bakery, as further discussed in Note 18 , 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 consolidated statements of operations. The Company manages and internally reports its business geographically. The operation and franchising of Wendy’s restaurants in North America 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. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include all of the Company’s subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company participates in two national advertising funds established to collect and administer funds contributed for use in advertising and promotional programs for Company-operated and franchised restaurants. The revenue, expenses and cash flows of such advertising funds are not included in the Company’s consolidated statements of operations or consolidated statements of cash flows because the contributions to these advertising funds are designated for specific purposes and the Company acts as an agent, in substance, with regard to these contributions. The assets and liabilities of these funds are reported as “Advertising funds restricted assets” and “Advertising funds restricted liabilities.” The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Fiscal Year The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31 and are referred to herein as (1) “the year ended January 1, 2017 ” or “ 2016 ,” which consisted of 52 weeks, (2) “the year ended January 3, 2016 ” or “ 2015 ,” which consisted of 53 weeks, and (3) “the year ended December 28, 2014 ” or “ 2014 ,” which consisted of 52 weeks. Reclassifications Certain reclassifications have been made to prior year presentation to conform to the current year presentation. The Company has changed the presentation of franchise revenues to separately present “Franchise rental income” and “Franchise royalty revenue and fees” in our consolidated statements of operations. These reclassifications are due to the growth in rental income and royalty revenue received from franchisees primarily driven by the Company’s system optimization initiative (see Note 2 for additional information on our system optimization initiative). Also, the Company has separately presented the related “Franchise rental expense” for properties that are leased or subleased to franchisees, which was previously recorded to “Other operating expense, net.” The Company believes this new presentation will aid users in understanding its results of operations. The prior periods reflect the reclassifications of these revenues and expenses to conform to the current year presentation. There was no impact to total revenues, operating profit, income from continuing operations before income taxes or net income as a result of these reclassifications. Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less when acquired are considered cash equivalents. The Company’s cash and cash equivalents principally consist of cash in bank and money market mutual fund accounts and are primarily not in Federal Deposit Insurance Corporation insured accounts. We believe that our vulnerability to risk concentrations in our cash equivalents is mitigated by (1) our policies restricting the eligibility, credit quality and concentration limits for our placements in cash equivalents and (2) insurance from the Securities Investor Protection Corporation of up to $500 per account, as well as supplemental private insurance coverage maintained by substantially all of our brokerage firms, to the extent our cash equivalents are held in brokerage accounts. Restricted Cash In accordance with the Company’s securitized financing facility, certain cash accounts have been established with the trustee for the benefit of the trustee and the noteholders, and are restricted in their use. Such restricted cash primarily represents cash collections and cash reserves held by the trustee to be used for payments of principal, interest and commitment fees required for the Company’s senior secured notes. Changes in such restricted cash are presented as a component of cash flows from operating and financing activities in the consolidated statements of cash flows since the cash is restricted to the payment of interest and principal, respectively. Furthermore, certain cash receipts from asset dispositions and insurance proceeds held by the trustee are restricted for reinvestment in capital assets useful to the Company’s operations in accordance with the securitized financing facility. Changes in such restricted cash are presented as a component of cash flows from investing activities in the consolidated statement of cash flows since the cash is restricted for investing activities. In addition, the Company has outstanding letters of credit with various parties that are cash collateralized. The related cash collateral is classified as restricted cash in the consolidated balance sheets. Changes in such restricted cash are presented as a component of cash flows from investing activities in the consolidated statements of cash flows. Refer to Note 6 for further information. Accounts and Notes Receivable, Net Accounts and notes receivable, net, consist primarily of royalties, rents, property taxes and franchise fees due principally from franchisees and credit card receivables. The need for an allowance for doubtful accounts is reviewed on a specific identification basis based upon past due balances and the financial strength of the obligor. Inventories The Company’s inventories are stated at the lower of cost or market, with cost determined in accordance with the first-in, first-out method and consist primarily of restaurant food items and paper supplies. Properties and Depreciation and Amortization Properties are stated at cost, including internal costs of employees to the extent such employees are dedicated to specific restaurant construction projects, less accumulated depreciation and amortization. Depreciation and amortization of properties is computed principally on the straight-line basis using the following estimated useful lives of the related major classes of properties: five to 20 years for office and restaurant equipment (including technology), three to 15 years for transportation equipment and seven to 30 years for buildings and improvements. When the Company commits to a plan to cease using certain properties before the end of their estimated useful lives, depreciation expense is accelerated to reflect the use of the assets over their shortened useful lives. Capital leases and leasehold improvements are amortized over the shorter of their estimated useful lives or the terms of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising. The Company reviews properties for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If such review indicates an asset group may not be recoverable, an impairment loss is recognized for the excess of the carrying amount over the fair value of an asset group to be held and used or over the fair value less cost to sell of an asset to be disposed. See “Impairment of Long-Lived Assets” below for further information. The Company classifies assets as held for sale and ceases depreciation of the assets when there is a plan for disposal of the assets and those assets meet the held for sale criteria. Assets held for sale are included in “Prepaid expenses and other current assets” in the consolidated balance sheets. Goodwill Goodwill, representing the excess of the cost of an acquired entity over the fair value of the acquired net assets, is not amortized. Goodwill associated with our Company-operated restaurants is reduced as a result of restaurant dispositions based on the relative fair values and is included in the carrying value of the restaurant in determining the gain or loss on disposal. If a Company-operated restaurant is sold within two years of being acquired from a franchisee, the goodwill associated with the acquisition is written off in its entirety. For goodwill impairment testing purposes, we include two reporting units comprised of our (1) North America Company-operated and franchise restaurants and (2) international franchise restaurants. The Company tests goodwill for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test of goodwill may be completed through a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a two-step quantitative goodwill impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must perform step two of the impairment test (measurement). Step two of the impairment test, if necessary, requires the estimation of the fair value for the assets and liabilities of a reporting unit in order to calculate the implied fair value of the reporting unit’s goodwill. If the Company determines that impairment may exist, the amount of the impairment loss is measured as the excess, if any, of the carrying amount of the goodwill over its implied fair value. In determining the implied fair value of the reporting unit’s goodwill, the Company allocates the fair value of a reporting unit to all of the assets and liabilities of that unit as if the unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Our fair value estimates are subject to change as a result of many factors including, among others, any changes in our business plans, changing economic conditions and the competitive environment. Should actual cash flows and our future estimates vary adversely from those estimates we use, we may be required to recognize goodwill impairment charges in future years. Impairment of Long-Lived Assets Our long-lived assets include (1) properties and related definite-lived intangible assets (e.g., favorable leases) that are leased and/or subleased to franchisees and (2) Company-operated restaurant assets and related definite-lived intangible assets, which include favorable leases and reacquired rights under franchise agreements. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We assess the recoverability of our long-lived assets by comparing the carrying amount of the asset group to future undiscounted net cash flows expected to be generated through leases and/or subleases or by our individual Company-operated restaurants. If the carrying amount of the long-lived asset group is not recoverable on an undiscounted cash flow basis, then impairment is recognized to the extent that the carrying amount exceeds its fair value and is included in “Impairment of long-lived assets.” Our critical estimates in this review process include the anticipated future cash flows from leases and/or subleases or individual Company-operated restaurants, which is used in assessing the recoverability of the respective long-lived assets. Our impairment losses principally reflect impairment charges resulting from leasing and/or subleasing long-lived assets to franchisees in connection with the sale or anticipated sale of restaurants. Our fair value estimates are subject to change as a result of many factors including, among others, any changes in our business plans, changing economic conditions and the competitive environment. Should actual cash flows and our future estimates vary adversely from those estimates we used, we may be required to recognize additional impairment charges in future years. Other Intangible Assets Definite-lived intangible assets are amortized on a straight-line basis using the following estimated useful lives of the related classes of intangibles: for favorable leases, the terms of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising; three to five years for computer software; four to 20 years for reacquired rights under franchise agreements; and 20 years for franchise agreements. Trademarks have an indefinite life and are not amortized. The Company reviews definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Indefinite-lived intangible assets are tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that the assets may be impaired. Our annual impairment test for indefinite-lived intangible assets may be completed through a qualitative assessment to determine if the fair value of the indefinite-lived intangible assets is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value exceeds the fair value, we test for impairment using a quantitative process. If the Company determines that impairment of its intangible assets may exist, the amount of impairment loss is measured as the excess of carrying value over fair value. Our estimates in the determination of the fair value of indefinite-lived intangible assets include the anticipated future revenues of Company-operated and franchised restaurants and the resulting cash flows. Investments The Company has a 50% share in a partnership 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 Tim Hortons USA Inc.) In addition, the Company has a 20% share in a joint venture for the operation of Wendy’s restaurants in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method, under which our results of operations include our share of the income (loss) of the investees in “ Other operating income, net .” Investments in limited partnerships and other non-current investments in which the Company does not have significant influence over the investees, which includes our indirect 18.5% interest in Arby’s Restaurant Group, Inc. (“Arby’s”), are recorded at cost with related realized gains and losses reported as income or loss in the period in which the securities are sold or otherwise disposed. Our 18.5% equity interest as of January 1, 2017 has the potential to be diluted by stock options issued as incentives to Arby’s management. Cash distributions and dividends received that are determined to be returns of capital are recorded as a reduction of the carrying value of our investments and returns on our investments are recorded to “Investment income, net.” The difference between the carrying value of our TimWen equity investment and the underlying equity in the historical net assets of the investee is accounted for as if the investee were a consolidated subsidiary. Accordingly, the carrying value difference is amortized over the estimated lives of the assets of the investee to which such difference would have been allocated if the equity investment were a consolidated subsidiary. To the extent the carrying value difference represents goodwill, it is not amortized. Derivative Instruments The Company used interest rate swap agreements to manage its exposure to changes in interest rates as well as to maintain an appropriate mix of fixed and variable rate debt. In May 2015, the Company terminated its floating to fixed interest rate swap agreements which were accounted for as cash flow hedges. Changes in the fair value of the cash flow hedging instruments were recorded as an adjustment to “ Accumulated other comprehensive loss ” to the extent of the effectiveness of such hedging instruments and subsequently reclassified into “Interest expense” in the period that the hedged forecasted transaction affects earnings. Share-Based Compensation The Company has granted share-based compensation awards to certain employees under several equity plans. The Company measures the cost of employee services received in exchange for an equity award, which include grants of employee stock options and restricted shares, based on the fair value of the award at the date of grant. Share-based compensation expense is recognized net of estimated forfeitures, determined based on historical experience. The Company recognizes share-based compensation expense over the requisite service period unless the awards are subject to performance conditions, in which case we recognize compensation expense over the requisite service period to the extent performance conditions are considered probable. The Company determines the grant date fair value of stock options using a Black-Scholes-Merton option pricing model (the “Black-Scholes Model”). The grant date fair value of restricted share awards (“RSAs”), restricted share units (“RSUs”) and performance-based awards are determined using the average of the high and low trading prices of our common stock on the date of grant, unless the awards are subject to market conditions, in which case we use a Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. Foreign Currency Translation Substantially all of the Company’s foreign operations are in Canada where the functional currency is the Canadian dollar. Financial statements of foreign subsidiaries are prepared in their functional currency and then translated into U.S. dollars. Assets and liabilities are translated at the exchange rate as of the balance sheet date and revenues, costs and expenses are translated at a monthly average exchange rate. Net gains or losses resulting from the translation are recorded to the “Foreign currency translation adjustment” component of “ Accumulated other comprehensive loss .” Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in “General and administrative.” Income Taxes The Company accounts for income taxes under the asset and liability method. A deferred tax asset or liability is recognized whenever there are (1) future tax effects from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (2) operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the years in which those differences are expected to be recovered or settled. Deferred tax assets are recognized to the extent the Company believes these assets will more likely than not be realized. In evaluating the realizability of deferred tax assets, the Company considers all available positive and negative evidence, including the interaction and the timing of future reversals of existing temporary differences, projected future taxable income, recent operating results and tax-planning strategies. When considered necessary, a valuation allowance is recorded to reduce the carrying amount of the deferred tax assets to their anticipated realizable value. The Company records uncertain tax positions on the basis of a two-step process whereby we first determine if it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is then measured for purposes of financial statement recognition as the largest amount of benefit that is greater than 50% likely of being realized upon being effectively settled. Interest accrued for uncertain tax positions is charged to “Interest expense.” Penalties accrued for uncertain tax positions are charged to “General and administrative.” Restaurant Dispositions In connection with the sale of Company-operated restaurants to franchisees, the Company typically enters into several agreements, in addition to an asset purchase agreement, with franchisees including franchise, development, relationship and lease agreements. See “Franchised Restaurants” in Item 1 herein, for further information regarding these agreements. The Company typically sells restaurants’ cash, inventory and equipment and retains ownership or the leasehold interest to the real estate to lease and/or sublease to the franchisee. The Company has determined that its restaurant dispositions usually represent multiple-element arrangements, and as such, the cash consideration received is allocated to the separate elements based on their relative selling price. Cash consideration generally includes up-front consideration for the sale of the restaurants, technical assistance fees and development fees and future cash consideration for royalties and lease payments. The Company considers the future lease payments in allocating the initial cash consideration received. The Company obtains third-party evidence to estimate the relative selling price of the stated rent under the lease and/or sublease agreements which is primarily based upon comparable market rents. Based on the Company’s review of the third-party evidence, the Company records favorable or unfavorable lease assets/liabilities with a corresponding offset to the gain or loss on the sale of the restaurants. The cash consideration per restaurant for technical assistance fees and development fees is consistent with the amounts stated in the related franchise agreements which are charged for separate standalone arrangements. Therefore, the Company recognizes the technical assistance and development fees when earned. Future royalty income is also recognized in revenue as earned. See “Revenue Recognition” below for further information. Revenue Recognition “Sales” includes revenues recognized upon delivery of food to the customer at Company-operated restaurants. “Sales” excludes taxes collected from the Company’s customers. “Franchise royalty revenue and fees” includes royalties and franchise fees. Royalties from franchised restaurants are based on a percentage of net sales of the franchised restaurant and are recognized as earned. Initial franchise fees and development fees are recorded as deferred income when received and are recognized as revenue when a franchised restaurant is opened as all material services and conditions related to the franchise fee have been substantially performed upon the restaurant opening. Initial franchise fees received in connection with sales of Company-operated restaurants to franchisees and facilitating franchisee-to-franchisee restaurant transfers as well as renewal franchise fees are recognized as revenue when the license agreements are signed and the fee is paid since there are no remaining material services and conditions related to the franchise fees. Franchise fee deposits are forfeited and recognized as revenue upon the termination of the related commitments to open new franchised restaurants. “Franchise rental income” includes rental income from properties owned and leased by the Company and leased or subleased to franchisees. Rental income is recognized on a straight-line basis over the respective operating lease terms. Favorable and unfavorable lease amounts related to the leased and/or subleased properties are amortized to rental income on a straight-line basis over the remaining term of the leases. See “Leases” below for further information on rental income and favorable and unfavorable lease amounts. Cost of Sales Cost of sales includes food and paper, restaurant labor and occupancy, advertising and other operating costs. Cost of sales excludes depreciation and amortization expense. Vendor Incentives The Company receives incentives from certain vendors. These incentives are recognized as earned and are classified as a reduction of “Cost of sales.” Advertising Costs The Company incurs various advertising costs, including contributions to certain advertising cooperatives based upon a percentage of net sales by Company-operated restaurants. All advertising costs are expensed as incurred, with the exception of media development costs that are expensed beginning in the month that the advertisement is first communicated, and are included in “Cost of sales.” Franchise Support and Other Costs The Company incurs costs to provide direct support services to our franchisees, as well as certain other direct and incremental costs to the Company’s franchise operations. These costs primarily relate to franchise development services, system meetings, the provision for doubtful accounts and internal costs associated with our system optimization initiative, which are charged to “General and administrative,” and customer care and help desk support services, which are charged to “Other operating income, net,” as incurred. Self-Insurance The Company is self-insured for most workers’ compensation losses and health care claims and purchases insurance for general liability and automotive liability losses, all subject to a $500 per occurrence retention or deductible limit. The Company provides for their estimated cost to settle both known claims and claims incurred but not yet reported. Liabilities associated with these claims are estimated, in part, by considering the frequency and severity of historical claims, both specific to us, as well as industry-wide loss experience and other actuarial assumptions. We determine our insurance obligations with the assistance of actuarial firms. Since there are many estimates and assumptions involved in recording insurance liabilities and in the case of workers’ compensation a significant period of time elapses before the ultimate resolution of claims, differences between actual future events and prior estimates and assumptions could result in adjustments to these liabilities. Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns and leases sites from third parties, which it leases and/or subleases to franchisees. At inception, each lease or sublease is evaluated to determine whether the lease will be accounted for as an operating or capital lease, including the determination of direct financing leases based on its terms. Capital lease assets and related obligations are recorded at the lower of the present value of future minimum lease payments or fair market value at lease inception. When determining the lease term, we include option periods for which failure to renew the lease imposes a significant economic detriment. For properties used for Company-operated restaurants, the primary economic detriment relates to the existence of unamortized leasehold improvements which might be impaired if we choose not to exercise the available renewal options. The lease term for properties leased or subleased to franchisees, is determined based upon the economic detriment to the franchisee and includes consideration of the length of the franchise agreement, historical performance of the restaurant and the existence of bargain renewal options. For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense or income, as applicable, on a straight line basis (“Straight-Line Rent”) over the applicable lease terms. Lease terms are generally initially between 15 and 20 years and, in most cases, provide for rent escalations and renewal options. The term used for Straight-Line Rent is calculated initially from the date of possession of the leased premises through the expected lease termination date. We recognize rent expense or income, as applicable, from the possession date to the restaurant opening date. There is a period under certain lease agreements referred to as a rent holiday (“Rent Holiday”) that generally begins on the possession date and ends on the rent commencement date. During a Rent Holiday, no cash rent payments are typically due under the terms of the lease; however, expense or income, as applicable, is recorded for that period on a straight-line basis. For leases that contain rent escalations, we record the rent payable or receivable, as applicable, during the lease term, as determined above, on the straight-line basis over the term of the lease (including the Rent Holiday beginning upon possession of the premises), and record the excess of the Straight-Line Rent over the minimum rents paid or received as a deferred lease liability or asset which is included in “Other liabilities” or “Other assets,” as applicable. Certain leases contain provisions, referred to as contingent rent (“Contingent Rent”), that require additional rental payments based upon restaurant sales volume. Contingent Rent is recognized each period as the liability is incurred or the asset is earned. For direct financing leases, the Company records its investment in properties leased to franchisees on a net basis, which is comprised of its gross investment less unearned income. The current and long-term portions of our net investment in direct financing leases are included in “ Accounts and notes receivable, net ” and “ Other assets ,” respectively. Unearned income is recognized as interest income over the lease term and is included in “Interest expense.” Favorable and unfavorable lease amounts are recorded as components of “Other intangible assets” and “Other liabilities,” respectively. Favorable and unfavorable lease amounts are amortized on a straight-line basis over the term of the leases. When the expected term of a lease is determined to be shorter than the original amortization period, the favorable or unfavorable lease balance |
System Optimization Gains, Net
System Optimization Gains, Net | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Line Items] | |
System Optimization Gains, Net | Properties Year End January 1, 2017 January 3, 2016 Owned: Land $ 381,305 $ 379,982 Buildings and improvements 504,730 508,186 Office, restaurant and transportation equipment 234,275 308,274 Leasehold improvements 371,954 371,734 Leased: Capital leases (a) 115,541 65,873 1,607,805 1,634,049 Accumulated depreciation and amortization (b) (415,466 ) (406,105 ) $ 1,192,339 $ 1,227,944 _______________ (a) These assets principally include buildings and improvements. (b) Includes $13,705 and $9,827 of accumulated amortization related to capital leases at January 1, 2017 and January 3, 2016 , respectively. Depreciation and amortization expense related to properties was $92,286 , $114,961 and $127,528 during 2016 , 2015 and 2014 , respectively. Depreciation and amortization includes $2,598 , $8,607 and $19,353 of accelerated depreciation and amortization during 2016 , 2015 and 2014 , respectively, on certain long-lived assets to reflect their use over shortened estimated useful lives in connection with the reimaging of restaurants under our Image Activation program. |
System Optimization [Member] | |
Property, Plant and Equipment [Line Items] | |
System Optimization Gains, Net | System Optimization Gains, Net In July 2013, the Company announced a system optimization initiative, as part of its brand transformation, which includes a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating franchisee-to-franchisee restaurant transfers. In February 2015, the Company announced plans to sell approximately 540 additional restaurants to franchisees and reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system by the end of 2016. During 2015, 2014 and 2013 the Company completed the sale of 327 , 255 and 244 Company-operated restaurants to franchisees, respectively, which included the sale of all of its Company-operated restaurants in Canada. In addition, during 2015 the Company facilitated the transfer of 71 restaurants between franchisees. During 2016, the Company completed the sale of 310 Company-operated restaurants to franchisees and recognized net gains totaling $71,931 on the sale of Company-operated restaurants and other assets. In addition, the Company facilitated the transfer of 144 restaurants between franchisees during 2016. With the sale of 310 restaurants during 2016, the Company completed its plan to reduce its Company-operated restaurant ownership to approximately 5% as of January 1, 2017. Wendy’s will continue to optimize its system by facilitating franchisee-to-franchisee transfers of restaurants, as well as evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees, to further strengthen the franchisee base, drive new restaurant development and accelerate Image Activation adoption. Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our 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 4 . The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Year Ended 2016 2015 2014 (a) Number of restaurants sold to franchisees 310 327 237 Proceeds from sales of restaurants $ 251,446 $ 193,860 $ 128,292 Net assets sold (b) (115,052 ) (86,493 ) (53,043 ) Goodwill related to sales of restaurants (c) (41,561 ) (29,970 ) (18,032 ) Net (unfavorable) favorable leases (d) (24,592 ) (846 ) 34,335 Other (e) (3,103 ) (5,499 ) (5,692 ) 67,138 71,052 85,860 Post-closing adjustments on sales of restaurants (f) (1,411 ) 1,285 (1,280 ) Gain on sales of restaurants, net 65,727 72,337 84,580 Gain on sales of other assets, net (g) 6,204 1,672 5,089 System optimization gains, net $ 71,931 $ 74,009 $ 89,669 _______________ (a) In addition, during 2014 Wendy’s acquired and immediately sold 18 restaurants to a franchisee for cash proceeds of $15,779 and recognized a gain on sale of $1,841 . No goodwill was recognized on this acquisition and as a result no goodwill was allocated to the sale. See Note 3 for further details. (b) Net assets sold consisted primarily of equipment. (c) Goodwill disposed of as a result of the sale of Company-operated restaurants during 2016 included goodwill of $11,429 that had been reclassified to assets held for sale during 2015. Goodwill disposed of during 2015 included goodwill of $8,457 that had been reclassified to assets held for sale during 2014. See Note 9 for further information. (d) During 2016 , 2015 and 2014 , the Company recorded favorable lease assets of $7,612 , $34,437 and $63,120 , respectively, and unfavorable lease liabilities of $32,204 , $35,283 and $28,785 , respectively, as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. (e) 2015 includes a deferred gain of $4,568 on the sale of 17 restaurants to franchisees during 2015 as a result of certain contingencies related to the extension of lease terms. 2014 includes a deferred gain of $1,995 ( C$2,300 ) on the sale of eight Canadian restaurants to a franchisee as a result of Wendy’s providing a guarantee to a lender on behalf of the franchisee. See Note 21 for further information on the guarantee. (f) 2015 includes the recognition of a gain on sale of $4,492 related to the repayment of notes receivable from franchisees in connection with sales of restaurants in 2014. (g) During 2016 , 2015 and 2014 , Wendy’s received cash proceeds of $10,727 , $10,478 and $17,263 , respectively, primarily from the sale of surplus properties as well as from the sale of a Company-operated aircraft during 2014. Assets Held for Sale January 1, January 3, 2016 Number of restaurants classified as held for sale — 99 Net restaurant assets held for sale (a) $ — $ 50,262 Other assets held for sale (a) $ 4,800 $ 7,124 _______________ (a) As of January 3, 2016 , net restaurant assets held for sale included Company-operated restaurants and consisted 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 | 12 Months Ended |
Jan. 01, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The table below presents the allocation of the total purchase price to the fair value of assets acquired and liabilities assumed for restaurants acquired from franchisees: Year Ended 2016 2015 2014 Restaurants acquired from franchisees 2 4 27 Total consideration paid, net of cash received $ 2,209 $ 1,232 $ 27,630 Identifiable assets acquired and liabilities assumed: Properties 2,218 1,303 9,498 Acquired franchise rights — 760 6,650 Other assets 9 — 941 Capital leases obligations — (438 ) — Unfavorable leases — (440 ) — Other liabilities (18 ) (80 ) (565 ) Total identifiable net assets 2,209 1,105 16,524 — 127 11,106 Gain on acquisition of restaurants (a) — — 349 Post-closing adjustments (b) — (1,535 ) — Goodwill $ — $ (1,408 ) $ 11,455 _______________ (a) The fair value of the assets acquired in connection with the acquisition of three franchised restaurants during 2014 exceeded the total consideration resulting in a gain, which was included in “ Other operating income, net .” (b) Post-closing adjustments in 2015 primarily represent an adjustment to the fair value of franchise rights acquired in connection with the acquisition of franchised restaurants during 2014. During the fourth quarter of 2014, Wendy’s also acquired 18 restaurants for total net cash consideration of $26,324 , which were immediately sold to a franchisee. As a result, no intangible assets or goodwill were recognized on this acquisition. The Company retained the land, building and leasehold improvements of $10,359 , which have been leased to the franchisee. |
Reorganization and Reorganizati
Reorganization and Reorganization Costs | 12 Months Ended |
Jan. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Realignment and Reorganization Costs | Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:” Year Ended 2016 2015 2014 G&A realignment $ 692 $ 10,342 $ 12,926 System optimization initiative 9,391 11,568 18,977 Reorganization and realignment costs $ 10,083 $ 21,910 $ 31,903 General and Administrative ( “ G&A ”) Realignment In November 2014, the Company initiated a plan to reduce its general and administrative expenses. The plan included 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 achieved 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 $692 during 2016 and $23,960 in aggregate since inception. No additional costs are expected to be incurred under the G&A realignment plan. The following is a summary of the activity recorded as a result of our G&A realignment plan: Year Ended Total 2016 2015 2014 Severance and related employee costs (a) $ (344 ) $ 3,011 $ 11,917 $ 14,584 Recruitment and relocation costs 992 1,658 209 2,859 Other 44 49 88 181 692 4,718 12,214 17,624 Share-based compensation (b) — 5,624 712 6,336 Total G&A realignment $ 692 $ 10,342 $ 12,926 $ 23,960 _______________ (a) 2016 includes a reversal of an accrual of $387 as a result of a change in estimate. (b) 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 tables below present 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 January 3, 2016 Charges Payments Balance January 1, 2017 Severance and related employee costs $ 3,431 $ (344 ) $ (2,855 ) $ 232 Recruitment and relocation costs 144 992 (1,136 ) — Other — 44 (44 ) — $ 3,575 $ 692 $ (4,035 ) $ 232 Balance December 28, 2014 Charges Payments Balance January 3, 2016 Severance and related employee costs $ 11,609 $ 3,011 $ (11,189 ) $ 3,431 Recruitment and relocation costs 149 1,658 (1,663 ) 144 Other 5 49 (54 ) — $ 11,763 $ 4,718 $ (12,906 ) $ 3,575 System Optimization Initiative The Company has recognized costs related to its system optimization initiative, which includes a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating franchisee-to-franchisee restaurant transfers. The Company expects to incur additional costs, primarily comprised of professional fees, of approximately $1,300 during 2017 in connection with an in-process transaction as of January 1, 2017. Costs incurred during 2017 related to facilitating franchisee-to-franchisee transfers of restaurants will be recorded to “Other operating income, net.” The following is a summary of the costs recorded as a result of our system optimization initiative: Year Ended Total Incurred Since Inception 2016 2015 2014 Severance and related employee costs $ 82 $ 894 $ 7,608 $ 18,234 Professional fees 7,437 3,360 3,424 16,610 Other 272 930 3,678 5,743 7,791 5,184 14,710 40,587 Accelerated depreciation and amortization (a) 1,600 6,384 507 25,398 Share-based compensation (b) — — 3,760 5,013 Total system optimization initiative $ 9,391 $ 11,568 $ 18,977 $ 70,998 _______________ (a) Primarily includes accelerated amortization of previously acquired franchise rights related to Company-operated restaurants in territories that have been sold in connection with our system optimization initiative. (b) 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 tables below present a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.” Balance January 3, 2016 Charges Payments Balance January 1, 2017 Severance and related employee costs $ 77 $ 82 $ (159 ) $ — Professional fees 708 7,437 (8,044 ) 101 Other 90 272 (362 ) — $ 875 $ 7,791 $ (8,565 ) $ 101 Balance December 28, 2014 Charges Payments Balance January 3, 2016 Severance and related employee costs $ 2,235 $ 894 $ (3,052 ) $ 77 Professional fees 146 3,360 (2,798 ) 708 Other 423 930 (1,263 ) 90 $ 2,804 $ 5,184 $ (7,113 ) $ 875 |
Income (Loss) Per Share
Income (Loss) Per Share | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | Income Per Share Basic income per share for 2016 , 2015 and 2014 was computed by dividing income amounts by the weighted average number of common shares outstanding. Income amounts used to calculate basic and diluted income per share were as follows: Year Ended 2016 2015 2014 Income from continuing operations $ 129,624 $ 139,979 $ 116,424 Net income from discontinued operations — 21,163 5,010 Net income $ 129,624 $ 161,142 $ 121,434 The weighted average number of shares used to calculate basic and diluted income per share were as follows: Year Ended 2016 2015 2014 Common stock: Weighted average basic shares outstanding 262,209 323,018 370,160 Dilutive effect of stock options and restricted shares 4,503 5,707 6,022 Weighted average diluted shares outstanding 266,712 328,725 376,182 Diluted income per share was computed by dividing 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 1,558 , 2,323 and 4,946 for 2016 , 2015 and 2014 , respectively, from our diluted income per share calculation as they would have had anti-dilutive effects. |
Cash and Receivables
Cash and Receivables | 12 Months Ended |
Jan. 01, 2017 | |
Cash and Receivables [Abstract] | |
Cash and Receivables Disclosure [Text Block] | Cash and Receivables Year End January 1, 2017 January 3, 2016 Cash and cash equivalents Cash $ 192,905 $ 281,877 Cash equivalents 5,335 45,339 $ 198,240 $ 327,216 Restricted cash Current Accounts held by trustee for the securitized financing facility $ 29,096 $ 29,327 Accounts held by trustee for reinvestment in capital assets 22,014 — Collateral supporting letters of credit 6,165 13,210 Trust for termination costs for former Wendy’s executives 168 168 Other 169 164 $ 57,612 $ 42,869 Non-current (a) Trust for termination costs for former Wendy’s executives $ 738 $ 1,191 _______________ (a) Included in “Other assets.” Year End January 1, 2017 January 3, 2016 Accounts and Notes Receivable, Net Current Accounts receivable: Franchisees $ 74,134 $ 71,158 Other (a) 25,732 34,828 99,866 105,986 Notes receivable from franchisees (b) (c) 2,989 2,356 102,855 108,342 Allowance for doubtful accounts (4,030 ) (3,488 ) $ 98,825 $ 104,854 Non-Current (d) Notes receivable from franchisees (b) $ 9,290 $ 5,158 Allowance for doubtful accounts (26 ) (257 ) $ 9,264 $ 4,901 _______________ (a) Includes income tax refund receivables of $18,111 and $23,508 as of January 1, 2017 and January 3, 2016 , respectively. (b) Non-current notes receivable include a note receivable from the Brazil JV of $6,810 and $1,700 as of January 1, 2017 and January 3, 2016 , respectively. See Note 7 for further information. Non-current notes receivable also include a note receivable from a franchisee in Indonesia of $2,454 as of January 1, 2017 . 2015 includes notes receivable from franchisees received in connection with the sale of Company-operated restaurants during 2014, of which $83 was included in current notes receivable and $331 was included in non-current notes receivable. During 2016, the notes receivable were paid in full. See Note 2 for further information. 2015 also includes a note receivable from a franchisee in connection with the termination of our investment in a joint venture in Japan, of which $701 was included in current notes receivable and $2,212 was included in non-current notes receivable. During 2016, the note receivable was paid in full. (c) Includes the current portion of direct financing lease receivables of $101 and $25 as of January 1, 2017 and January 3, 2016 , respectively. See Note 20 for further information. (d) Included in “Other assets.” The following is an analysis of the allowance for doubtful accounts: Year Ended 2016 2015 2014 Balance at beginning of year: Current $ 3,488 $ 2,343 $ 3,310 Non-current 257 246 256 Provision for doubtful accounts: Franchisees and other 390 979 (925 ) Uncollectible accounts written off, net of recoveries (79 ) 177 (52 ) Balance at end of year: Current 4,030 3,488 2,343 Non-current 26 257 246 Total $ 4,056 $ 3,745 $ 2,589 |
Investments
Investments | 12 Months Ended |
Jan. 01, 2017 | |
Investments [Abstract] | |
Investments | Investments The following is a summary of the carrying value of our investments: Year End January 1, January 3, Equity investments $ 54,545 $ 55,541 Cost investments 2,436 2,828 $ 56,981 $ 58,369 Equity Investments Wendy’s has a 50% share in the TimWen joint venture and a 20% share in the Brazil JV, both of which are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “ Other operating income, net .” A wholly-owned subsidiary of Wendy’s entered into the Brazil JV during the second quarter of 2015 for the operation of Wendy’s restaurants in Brazil. Wendy’s, Starbord International Holdings B.V. and Infinity Holding E Participações Ltda. contributed $1 , $2 and $2 , respectively, each receiving proportionate equity interests of 20% , 40% and 40% , respectively. The Company did not receive any distributions and our share of the Brazil JV’s net losses was $271 and $88 during 2016 and 2015 , respectively. The wholly-owned subsidiary of Wendy’s also agreed to lend the Brazil JV an aggregate amount up to, but not to exceed, $8,000 . The loan is denominated in U.S. Dollars, which is also the functional currency of the subsidiary; therefore, there is no exposure to changes in foreign currency rates. During 2016 and 2015 , the Company loaned the Brazil JV $5,110 and $1,700 , respectively. The loan is due October 20, 2020 and bears interest at 6.5% per year. See Note 6 for further discussion. The carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by $31,213 and $32,513 as of January 1, 2017 and January 3, 2016 , respectively, primarily due to purchase price adjustments from the Wendy’s merger. Presented below is activity related to our portion of TimWen and the Brazil JV included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 . Year Ended 2016 2015 2014 Balance at beginning of period $ 55,541 $ 69,790 $ 79,810 Investment 172 108 — Equity in earnings for the period 10,627 11,533 12,802 Amortization of purchase price adjustments (a) (2,276 ) (2,328 ) (2,626 ) 8,351 9,205 10,176 Distributions received (11,426 ) (12,451 ) (13,896 ) Foreign currency translation adjustment included in “Other comprehensive income (loss), net” 1,907 (11,111 ) (6,300 ) Balance at end of period $ 54,545 $ 55,541 $ 69,790 _______________ (a) Based upon an average original aggregate life of 21 years. Indirect Investment in Arby’s In connection with the sale of Arby’s, Wendy’s Restaurants obtained an 18.5% equity interest in ARG Holding Corporation (through which Wendy’s Restaurants indirectly retained an 18.5% interest in Arby’s), with a fair value of $19,000 . See Note 12 for further information on the fair value of our indirect investment in Arby’s as of January 1, 2017 and January 3, 2016 . Our 18.5% equity interest as of January 1, 2017 has the potential to be diluted by stock options issued as incentives to Arby’s management. We account for our interest in Arby’s as a cost method investment. The carrying value of our investment was reduced to zero during 2013 in connection with the receipt of a dividend that was determined to be a return of our investment. During 2015, the Company received a dividend of $54,911 from our investment in Arby’s, which was recognized in “Investment income, net.” |
Properties (Notes)
Properties (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties [Text Block] | Properties Year End January 1, 2017 January 3, 2016 Owned: Land $ 381,305 $ 379,982 Buildings and improvements 504,730 508,186 Office, restaurant and transportation equipment 234,275 308,274 Leasehold improvements 371,954 371,734 Leased: Capital leases (a) 115,541 65,873 1,607,805 1,634,049 Accumulated depreciation and amortization (b) (415,466 ) (406,105 ) $ 1,192,339 $ 1,227,944 _______________ (a) These assets principally include buildings and improvements. (b) Includes $13,705 and $9,827 of accumulated amortization related to capital leases at January 1, 2017 and January 3, 2016 , respectively. Depreciation and amortization expense related to properties was $92,286 , $114,961 and $127,528 during 2016 , 2015 and 2014 , respectively. Depreciation and amortization includes $2,598 , $8,607 and $19,353 of accelerated depreciation and amortization during 2016 , 2015 and 2014 , respectively, on certain long-lived assets to reflect their use over shortened estimated useful lives in connection with the reimaging of restaurants under our Image Activation program. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Jan. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill activity for 2016 and 2015 was as follows: Year End January 1, 2017 January 3, 2016 Balance at beginning of year $ 770,781 $ 822,562 Sale of the Bakery — (12,067 ) Restaurant dispositions (30,132 ) (32,942 ) Restaurant acquisitions (a) — (1,408 ) Currency translation adjustment and other, net 761 (5,364 ) Balance at end of year $ 741,410 $ 770,781 _______________ (a) Restaurant acquisitions in 2015 primarily represents an adjustment to the fair value of franchise rights acquired in connection with the acquisition of franchised restaurants during 2014. See Note 3 for further information. Our annual goodwill impairment test was completed through a qualitative assessment performed in the fourth quarter of 2016, which indicated the fair value of goodwill of our Wendy’s North America restaurants was more likely than not greater than the carrying amount. The following is a summary of the components of other intangible assets and the related amortization expense: Year End January 1, 2017 January 3, 2016 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Indefinite-lived: Trademarks $ 903,000 $ — $ 903,000 $ 903,000 $ — $ 903,000 Definite-lived: Franchise agreements 348,403 (137,047 ) 211,356 347,970 (120,298 ) 227,672 Favorable leases 208,626 (57,440 ) 151,186 209,523 (50,750 ) 158,773 Reacquired rights under franchise agreements 1,690 (1,536 ) 154 8,753 (6,503 ) 2,250 Software 123,613 (66,778 ) 56,835 97,590 (49,698 ) 47,892 $ 1,585,332 $ (262,801 ) $ 1,322,531 $ 1,566,836 $ (227,249 ) $ 1,339,587 Aggregate amortization expense: Actual for fiscal year (a): 2014 $ 42,274 2015 54,686 2016 48,824 Estimate for fiscal year: 2017 $ 44,977 2018 43,237 2019 38,988 2020 34,826 2021 29,770 Thereafter 227,733 _______________ (a) Includes impairment charges on other intangible assets of $3,288 , $3,656 and $3,610 during 2016 , 2015 and 2014 , respectively. See Note 16 for more information on impairment of our long-lived assets. Also includes accelerated amortization on previously acquired franchise rights in territories that will be or have been sold as a part of our system optimization initiative of $1,600 , $6,384 and $474 during 2016 , 2015 and 2014 , respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 01, 2017 | |
Accrued Liabilities [Abstract] | |
Accrued Expenses [Text Block] | Accrued Expenses and Other Current Liabilities Year End January 1, 2017 January 3, 2016 Accrued compensation and related benefits $ 47,214 $ 60,566 Accrued taxes 21,571 19,925 Other 33,249 43,913 $ 102,034 $ 124,404 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 01, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: Year End January 1, January 3, Series 2015-1 Class A-2 Notes: (a) Series 2015-1 Class A-2-I Notes $ 864,063 $ 872,813 Series 2015-1 Class A-2-II Notes 888,750 897,750 Series 2015-1 Class A-2-III Notes 493,750 498,750 7% debentures, due in 2025 (b) 88,277 87,057 Capital lease obligations, due through 2045 211,714 109,173 Unamortized debt issuance costs (34,272 ) (39,430 ) 2,512,282 2,426,113 Less amounts payable within one year (24,652 ) (23,290 ) Total long-term debt $ 2,487,630 $ 2,402,823 Aggregate annual maturities of long-term debt, excluding the effect of purchase accounting adjustments, as of January 1, 2017 were as follows: Fiscal Year 2017 $ 24,652 2018 25,318 2019 862,464 2020 16,482 2021 18,079 Thereafter 1,611,282 $ 2,558,277 _______________ (a) 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. During 2015, the Company borrowed and repaid $19,000 under the Series 2015-1 Class A-1 Notes. 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. 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 , seven and 10 years, respectively, from the date of issuance (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 January 1, 2017 and January 3, 2016, $26,552 and $23,002 of letters of credit were outstanding against the Series 2015-1 Class A-1 Notes, respectively, which relate primarily to interest reserves required under the Indenture. During 2016 and 2015 , the Company incurred debt issuance costs of $2,495 and $43,817 , respectively, 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 January 1, 2017, the effective interest rates, including the amortization of debt issuance costs, were 3.791% , 4.340% and 4.682% 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. There were no events of default under the documents governing the Series 2015-1 Senior Notes as of January 1, 2017 . 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 January 1, 2017 and January 3, 2016 , Wendy’s Funding had restricted cash of $29,096 and $29,327 , respectively, which primarily represents cash collections and cash reserves held by the trustee to be used for payments of principal, interest and commitment fees required for the Series 2015-1 Class A-2 Notes. 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 12 for more information on the interest rate swaps. As a result, the Company recorded a loss on early extinguishment of debt of $7,295 during the second quarter of 2015, primarily consisting of the write-off of deferred costs related to the 2013 Restated Credit Agreement of $7,233 and fees paid to terminate the related interest rate swaps of $62 . (b) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the Wendy’s merger based on their outstanding principal of $100,000 and an effective interest rate of 8.6% . The fair value adjustment is being accreted and the related charge included in “Interest expense” until the debentures mature. These debentures contain covenants that restrict the incurrence of indebtedness secured by liens and certain capitalized lease transactions. Wendy’s was in compliance with these covenants as of January 1, 2017 . Wendy’s U.S. advertising fund has a revolving line of credit of $25,000 . Neither the Company, nor Wendy’s, is the guarantor of the debt. The advertising fund facility was established to fund the advertising fund operations. The full amount of the line was available under this line of credit as of January 1, 2017 . At January 1, 2017 , one of Wendy’s Canadian subsidiaries had a revolving credit facility of C $6,000 which bears interest at the Bank of Montreal Prime Rate. The debt is guaranteed by Wendy’s. The full amount of the line was available under this line of credit as of January 1, 2017 . The following is a summary of the Company’s assets pledged as collateral for certain debt: Year End January 1, Cash and cash equivalents $ 13,300 Accounts and notes receivable, net (including long-term) 48,644 Inventories 2,761 Properties 179,781 Other intangible assets 1,112,515 Restricted cash and other assets (including long-term) 51,211 $ 1,408,212 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 01, 2017 | |
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: January 1, 2017 January 3, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 5,335 $ 5,335 $ 45,339 $ 45,339 Level 1 Non-current cost method investments (a) 2,436 326,283 2,828 249,870 Level 3 Financial liabilities Series 2015-1 Class A-2-I Notes (b) 864,063 857,349 872,813 849,106 Level 2 Series 2015-1 Class A-2-II Notes (b) 888,750 880,005 897,750 879,795 Level 2 Series 2015-1 Class A-2-III Notes (b) 493,750 474,543 498,750 484,648 Level 2 7% debentures, due in 2025 (b) 88,277 99,750 87,057 100,500 Level 2 Guarantees of franchisee loan obligations (c) 280 280 851 851 Level 3 _______________ (a) The fair value of our indirect investment in Arby’s is based on applying a multiple to Arby’s adjusted 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. See Note 7 for more information. 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) 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, net (both current and non-current) approximated fair value due to the effect of the related allowance for doubtful accounts. Our 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 was 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 2015 included seven forward-starting interest rate swaps designated as cash flow hedges to change the floating rate interest payments for $350,000 and $100,000 in borrowings associated with the Term A Loans and Term B Loans, respectively, under the Company’s prior credit agreement, 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 11 for further information. The unrealized loss on the cash flow hedges at termination of $7,275 is being 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 a result, 2016 and 2015 include the reclassification of unrealized losses on the cash flow hedges of $2,894 and $1,487 , respectively, from “Accumulated other comprehensive loss” to “Interest expense.” 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 2016 and 2015 resulted in impairment that we have recorded to “ Impairment of long-lived assets ” in our consolidated statements of operations. Total losses for 2016 and 2015 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-operated 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 2016 and 2015 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 16 for more information on impairment of our long-lived assets. Fair Value Measurements 2016 Total Losses January 1, Level 1 Level 2 Level 3 Held and used $ 5,462 $ — $ — $ 5,462 $ 15,928 Held for sale 1,552 — — 1,552 313 Total $ 7,014 $ — $ — $ 7,014 $ 16,241 Fair Value Measurements 2015 Total Losses January 3, Level 1 Level 2 Level 3 Held and used $ 10,244 $ — $ — $ 10,244 $ 22,346 Held for sale 4,328 — — 4,328 2,655 Total $ 14,572 $ — $ — $ 14,572 $ 25,001 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes is set forth below: Year Ended 2016 2015 2014 Domestic $ 192,082 $ 208,827 $ 173,143 Foreign 9,608 25,301 19,397 $ 201,690 $ 234,128 $ 192,540 The (provision for) benefit from income taxes from continuing operations is set forth below: Year Ended 2016 2015 2014 Current: U.S. Federal $ (75,167 ) $ (12,414 ) $ 6,673 State (5,805 ) 3,346 (7,863 ) Foreign (5,307 ) (10,778 ) (8,093 ) Current tax provision (86,279 ) (19,846 ) (9,283 ) Deferred: U.S. Federal 7,975 (53,916 ) (67,977 ) State 6,733 (21,375 ) 671 Foreign (495 ) 988 473 Deferred tax benefit (provision) 14,213 (74,303 ) (66,833 ) Income tax provision $ (72,066 ) $ (94,149 ) $ (76,116 ) Deferred tax assets (liabilities) are set forth below: Year End January 1, 2017 January 3, 2016 Deferred tax assets: Unfavorable leases $ 50,771 $ 40,084 Net operating loss and credit carryforwards 44,733 51,782 Accrued compensation and related benefits 31,994 35,963 Deferred rent 19,552 17,661 Accrued expenses and reserves 16,486 18,156 Other 9,293 9,157 Valuation allowances (11,400 ) (17,097 ) Total deferred tax assets 161,429 155,706 Deferred tax liabilities: Intangible assets (495,505 ) (499,467 ) Owned and leased fixed assets net of related obligations (89,251 ) (95,619 ) Other (23,186 ) (20,333 ) Total deferred tax liabilities (607,942 ) (615,419 ) $ (446,513 ) $ (459,713 ) In March 2016, the FASB issued an amendment that simplifies certain aspects of the accounting for employee share-based payment transactions. See Note 1 for further details. Changes in the Company’s deferred tax asset and liability balances were primarily the result of the utilization of net operating loss and credit carryforwards and the impact of the system optimization initiative, as described in Note 2 , primarily related to state valuation allowances and favorable and unfavorable leases. The amounts and expiration dates of net operating loss and tax credit carryforwards are as follows: Amount Expiration Tax credit carryforwards: U.S. federal foreign tax credits $ 18,911 2021-2024 State tax credits 457 2020-2023 Foreign tax credits of non-U.S. subsidiaries 2,770 2021-2025 Total $ 22,138 Net operating loss carryforwards: State net operating loss carryforwards $ 779,841 2017-2035 As of January 1, 2017 , the Company had a deferred tax asset of $46,612 related to the state net operating loss carryforwards and federal, foreign and state tax credits before reduction for unrecognized tax benefits related to excess share-based compensation deductions. In 2016 and prior years, the Company deducted $175,376 in excess of cumulative compensation costs relating to the exercise of stock options and vesting of restricted stock. The Company has recognized $3,082 , $49,613 and $9,363 in 2016, 2015 and 2014, respectively, of the $63,938 tax benefit as a reduction of current income taxes payable with an equal offsetting increase in “Additional paid-in capital.” The Company’s valuation allowances of $11,400 , $17,097 and $11,213 as of January 1, 2017 , January 3, 2016 and December 28, 2014 , respectively, relate to state net operating loss and foreign and state tax credit carryforwards. Valuation allowances decreased $5,697 during 2016 and increased $5,884 during 2015, primarily as a result of our system optimization initiative described in Note 2. The relative presence of company operated restaurants in various states impacts expected future state taxable income available to utilize state net operating loss carryforwards. As the system optimization initiative has changed the Company’s relative presence in various states, the Company’s judgment about the ability to utilize certain state net operating loss carryforwards has likewise changed. Valuation allowances increased $665 during 2014 primarily as a result of generating foreign tax credits with a limited carryforward period in 2014 that are in excess of what the Company expects to utilize prior to their expiration. Deferred income taxes have not been recorded for temporary differences related to investments in non-U.S. subsidiaries. These temporary differences were approximately $108,038 at January 1, 2017 and consisted primarily of undistributed earnings considered permanently invested in operations outside the U.S. Determination of the incremental income tax liability on these unremitted earnings is dependent on circumstances existing if, and when remittance occurs. However, we estimate that if unremitted earnings were to have been remitted, the additional tax liability would have been approximately $10,640 at January 1, 2017 . The reconciliation of income tax computed at the U.S. Federal statutory rate to reported income tax is set forth below: Year Ended 2016 2015 2014 Income tax provision at the U.S. Federal statutory rate $ (70,592 ) $ (81,945 ) $ (67,389 ) State income tax provision, net of U.S. Federal income tax effect (3,767 ) (7,234 ) (4,747 ) Non-deductible goodwill (a) (6,409 ) (7,435 ) (9,389 ) Valuation allowances (b) 4,915 (6,075 ) (665 ) Foreign and U.S. tax effects of foreign operations 2,278 4,389 4,089 Non-deductible expenses and other 1,509 4,151 1,985 $ (72,066 ) $ (94,149 ) $ (76,116 ) _______________ (a) Substantially all of the goodwill included in the gain on sales of restaurants in 2016, 2015 and 2014 under our system optimization initiative was non-deductible for tax purposes. See Notes 2 and 9 for further information. Included in the 2016 amount is a $3,837 federal benefit related to the correction to a prior year identified and recorded in the second quarter of 2016. The corresponding state benefit correction of $398 is included in the state income tax provision amount above. (b) Includes changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of the utilization of deferred tax assets. 2016 and 2015 primarily relate to changes in the likelihood of the utilization of deferred tax assets related to state net operating loss carryforwards. Included in the 2016 amount is a $2,878 benefit related to the correction to a prior year identified and recorded in the first quarter of 2016. The Company’s system optimization initiative described in Note 2 impacted our tax provision due to the following: (1) goodwill disposal and other non-deductible expenses incurred in connection with the sale of restaurants during 2016, 2015 and 2014 of $7,544 , $8,987 and $9,389 , respectively, (2) changes to the Canadian deferred tax rate of $70 in 2014, (3) a decrease in the state deferred tax rate of $2,692 in 2016 and an increase of $1,587 in 2015 and (4) a decrease in valuation allowances related to the likelihood of the utilization of state net operating loss carryforwards of $2,062 in 2016 and an increase of $4,542 in 2015. These amounts are included in the state income tax provision, the foreign provision, non-deductible goodwill and the valuation allowance amounts presented in the table above. The Company participates in the Internal Revenue Service (the “IRS”) Compliance Assurance Process (“CAP”). As part of CAP, tax years are examined on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return. As such, our tax returns for fiscal years 2009 through 2015 have been settled. Certain of the Company’s state income tax returns from its 2012 fiscal year and forward remain subject to examination. We believe that adequate provisions have been made for any liabilities, including interest and penalties that may result from the completion of these examinations. Unrecognized Tax Benefits As of January 1, 2017 , the Company had unrecognized tax benefits of $19,545 , which, if resolved favorably would reduce income tax expense by $14,752 . A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: Year End January 1, January 3, December 28, Beginning balance $ 21,224 $ 25,715 $ 23,897 Additions: Tax positions of current year 306 927 — Tax positions of prior years 440 476 2,678 Reductions: Tax positions of prior years (2,126 ) (5,182 ) (582 ) Settlements (42 ) (251 ) — Lapse of statute of limitations (257 ) (461 ) (278 ) Ending balance $ 19,545 $ 21,224 $ 25,715 The reduction of unrecognized tax benefits in 2016 was primarily related to a $1,822 revaluation of certain state net operating loss carryforwards as a result of the system optimization initiative which did not reduce tax expense. During 2017 , we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $714 , due to the lapse of statutes of limitations and expected settlements with taxing authorities. During 2016 , 2015 and 2014 , the Company recognized $75 , $(1,627) and $315 of expense (income) for interest and $25 , $(15) and $(330) of expense (income) for penalties, respectively, related to uncertain tax positions. The Company has approximately $1,296 and $1,223 accrued for interest and $615 and $642 accrued for penalties as of January 1, 2017 and January 3, 2016 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 01, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends During 2016 , 2015 and 2014 , The Wendy’s Company paid dividends per share of $0.245 , $0.225 and $0.205 , respectively. Treasury Stock There were 470,424 shares of common stock issued at the beginning and end of 2016 , 2015 and 2014 . Treasury stock activity for 2016 , 2015 and 2014 was as follows: Treasury Stock 2016 2015 2014 Number of shares at beginning of year 198,109 104,614 77,637 Repurchases of common stock 29,545 99,881 32,716 Common shares issued: Stock options, net (2,914 ) (5,043 ) (4,930 ) Restricted stock, net (796 ) (1,258 ) (732 ) Director fees (20 ) (21 ) (24 ) Other (74 ) (64 ) (53 ) Number of shares at end of year 223,850 198,109 104,614 Repurchases of Common Stock On June 1, 2015, our Board of Directors authorized a 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. In November 2016, the Company entered into an accelerated share repurchase agreement (the “2016 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the Company’s existing $1,400,000 share repurchase program. Under the 2016 ASR Agreement, the Company paid the financial institution an initial purchase price of $150,000 in cash and received an initial delivery of 11,087 shares of common stock, representing an estimate of 85% of the total shares expected to be delivered under the 2016 ASR Agreement. The total number of shares of common stock ultimately purchased by the Company under the 2016 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2016 ASR Agreement, less an agreed upon discount. On December 27, 2016, the Company completed the 2016 ASR Agreement and received an additional 316 shares of common stock. Additionally, during 2016, the Company repurchased 18,142 shares with an aggregate purchase price of $184,986 , excluding commissions of $272 . As a result, the Company completed substantially all of the $1,400,000 share repurchase program. In February, 2017, our Board of Directors authorized a repurchase program for up to $150,000 of our common stock through March 4, 2018. Subsequent to January 1, 2017 through February 22, 2017 , the Company repurchased 97 shares with an aggregate purchase price of $1,349 , excluding commissions of $2 . Also as part of the June 2015 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. For additional information on the separate stock purchase agreement see Note 22 . On June 30, 2015, the tender offer expired and on July 8, 2015, the Company repurchased 55,808 shares at $11.45 per share for an aggregate purchase price of $639,000 . On July 17, 2015, the Company repurchased 18,416 shares at $11.45 per share, pursuant to the separate stock purchase agreement, for an aggregate purchase price of $210,867 . As a result, the $850,000 share repurchase program that commenced on June 3, 2015 was completed during the third quarter of 2015. During 2015, the Company incurred costs of $2,288 in connection with the tender offer and Trian Group stock purchase agreement, which were recorded to treasury stock. In August 2015, the Company entered into an accelerated share repurchase agreement (the “2015 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the Company’s existing share repurchase programs. Under the 2015 ASR Agreement, the Company paid the financial institution an initial purchase price of $164,500 in cash and received an initial delivery of 14,385 shares of common stock, representing an estimate of 85% of the total shares expected to be delivered under the 2015 ASR Agreement. The total number of shares of common stock ultimately purchased by the Company under the 2015 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2015 ASR Agreement, less an agreed discount. On September 25, 2015, the Company completed the 2015 ASR Agreement and received an additional 3,551 shares of common stock. During 2015, the Company incurred costs of $58 in connection with the 2015 ASR Agreement, which were recorded to treasury stock. Also as part of the June 2015 authorization, the Company repurchased 2,066 shares during 2015 with an aggregate purchase price of $21,959 , of which $1,700 was accrued at January 3, 2016 and excluding commissions of $28 . 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. As part of the August 2014 authorization, $76,111 remained available as of December 28, 2014. During the first and second quarters of 2015, the Company repurchased 5,655 shares with an aggregate purchase price of $61,631 , excluding commissions of $86 . During the third quarter of 2015, the Company repurchased $14,480 through the 2015 ASR Agreement described above. As a result, the $100,000 share repurchase program authorized in August 2014 was completed. During 2014, the Company repurchased 2,986 shares with an aggregate purchase price of $23,889 , excluding commissions of $52 , as part of the August 2014 authorization. In January 2014, our Board of Directors authorized a repurchase program, which the Company fully utilized through 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. Preferred Stock There were 100,000 shares authorized and no shares issued of preferred stock throughout 2016 , 2015 and 2014 . Accumulated Other Comprehensive Loss The following table provides a rollforward of the components of accumulated other comprehensive income (loss) attributable to The Wendy’s Company, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges (a) Pension Total Balance at December 29, 2013 $ (9,803 ) $ 744 $ (1,278 ) $ (10,337 ) Current-period other comprehensive (loss) income (18,560 ) (2,788 ) 391 (20,957 ) Balance at December 28, 2014 (28,363 ) (2,044 ) (887 ) (31,294 ) Current-period other comprehensive (loss) income (37,800 ) (1,527 ) (202 ) (39,529 ) Balance at January 3, 2016 (66,163 ) (3,571 ) (1,089 ) (70,823 ) Current-period other comprehensive income (loss) 5,864 1,774 (56 ) 7,582 Balance at January 1, 2017 $ (60,299 ) $ (1,797 ) $ (1,145 ) $ (63,241 ) _______________ (a) Current-period other comprehensive income (loss) includes the effect of changes in unrealized losses on cash flow hedges, net of tax, for 2015 and 2014, respectively. In addition, 2016 and 2015 include the reclassification of unrealized losses on cash flow hedges of $1,774 and $915 , respectively, from “Accumulated other comprehensive loss” to our consolidated statements of operations consisting of $2,894 and $1,487 , respectively, recorded to “Interest expense,” net of the related income tax benefit of $1,120 and $572 , respectively, recorded to “Provision for income taxes.” See Note 12 for more information. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company maintains several equity plans (the “Equity Plans”) which collectively provide or provided for the grant of stock options, restricted shares, tandem stock appreciation rights, restricted share units and performance shares to certain officers, other key employees, non-employee directors and consultants. The Company has not granted any tandem stock appreciation rights. During 2010, the Company implemented the 2010 Omnibus Award Plan (as amended, the “2010 Plan”) for the issuance of equity awards as described above. In June 2015, the 2010 Plan was amended with shareholder approval, to increase the number of shares of common stock available for issuance under the plan by 20,000 . All equity grants during 2016 and 2015 were issued from the 2010 Plan and it is currently the only equity plan from which future equity awards may be granted. As of January 1, 2017 , there were approximately 34,516 shares of common stock available for future grants under the 2010 Plan. During the periods presented in the consolidated financial statements, the Company settled all exercises of stock options and vesting of restricted shares, including performance shares, with treasury shares. Stock Options The Company’s current outstanding stock options have maximum contractual terms of 10 years and vest ratably over three years or cliff vest after three years. The exercise price of options granted is equal to the market price of the Company’s common stock on the date of grant. The fair value of stock options on the date of grant is calculated using the Black-Scholes Model. The aggregate intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The following table summarizes stock option activity during 2016 : Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 3, 2016 16,841 $ 7.73 Granted 3,797 10.09 Exercised (3,218 ) 6.94 Forfeited and/or expired (723 ) 10.13 Outstanding at January 1, 2017 16,697 $ 8.31 7.6 $ 86,960 Vested or expected to vest at January 1, 2017 16,559 $ 8.30 7.6 $ 86,439 Exercisable at January 1, 2017 8,842 $ 7.07 6.4 $ 57,102 The total intrinsic value of options exercised during 2016 , 2015 and 2014 was $12,594 , $30,116 and $13,948 , respectively. The weighted average grant date fair value of stock options granted during 2016 , 2015 and 2014 was $2.12 , $2.27 and $2.34 , respectively. The weighted average grant date fair value of stock options was determined using the following assumptions: 2016 2015 2014 Risk-free interest rate 1.28 % 1.76 % 1.97 % Expected option life in years 5.62 5.62 6.35 Expected volatility 28.25 % 29.25 % 35.38 % Expected dividend yield 2.38 % 2.23 % 2.43 % The risk-free interest rate represents the U.S. Treasury zero-coupon bond yield correlating to the expected life of the stock options granted. The expected option life represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends for similar grants. The expected volatility is based on the historical market price volatility of our industry peer group. The expected dividend yield represents the Company’s annualized average yield for regular quarterly dividends declared prior to the respective stock option grant dates. The Black-Scholes Model has limitations on its effectiveness including that it was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable and that the model requires the use of highly subjective assumptions including expected stock price volatility. Employee stock option awards have characteristics significantly different from those of traded options and changes in the subjective input assumptions can materially affect the fair value estimates. Restricted Shares The Company grants RSAs and RSUs, which primarily cliff vest after one to three years. For the purposes of our disclosures, the term “Restricted Shares” applies to RSAs and RSUs collectively unless otherwise noted. The fair value of Restricted Shares granted is determined using the average of the high and low trading prices of our common stock on the date of grant. The following table summarizes activity of Restricted Shares during 2016 : Number of Restricted Shares Weighted Average Grant Date Fair Value Non-vested at January 3, 2016 1,799 $ 8.32 Granted 726 10.33 Vested (616 ) 7.65 Forfeited (92 ) 8.95 Non-vested at January 1, 2017 1,817 $ 9.30 The total fair value of Restricted Shares that vested in 2016 , 2015 and 2014 was $6,339 , $10,188 and $5,251 , respectively. Performance Shares The Company grants performance-based awards to certain officers and key employees. The vesting of these awards is contingent upon meeting one or more defined operational goals (a performance condition) or common stock share prices (a market condition). The quantity of shares awarded ranges from 0% to 200% of “Target,” as defined in the award agreement as the midpoint number of shares, based on the level of achievement of the performance and market conditions. The fair values of the performance condition awards granted in 2016, 2015 and 2014 were determined using the average of the high and low trading prices of our common stock on the date of grant. Share-based compensation expense recorded for performance condition awards is reevaluated at each reporting period based on the probability of the achievement of the goal. The fair value of market condition awards granted in 2016 and 2015 were estimated using the Monte Carlo simulation model. There were no market condition awards granted during 2014. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved and is applied to the average of the high and low trading prices of our common stock on the date of grant. The input variables are noted in the table below: 2016 2015 Risk-free interest rate 0.82 % 1.00 % Expected life in years 3.00 3.00 Expected volatility 27.03 % 25.56 % Expected dividend yield (a) 0.00 % 0.00 % _______________ (a) The Monte Carlo method assumes a reinvestment of dividends. Share-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. The following table summarizes activity of performance shares at Target during 2016 : Performance Condition Awards Market Condition Awards Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested at January 3, 2016 917 $ 9.23 104 $ 17.08 Granted 267 9.44 246 10.25 Dividend equivalent units issued (a) 18 — 7 — Vested (b) (385 ) 7.92 — — Forfeited (18 ) 10.03 (5 ) 17.08 Non-vested at January 1, 2017 799 $ 9.89 352 $ 12.17 _______________ (a) Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no weighted average fair value associated with dividend equivalent units. (b) Excludes the vesting of an additional 246 shares, which resulted from the performance of performance condition awards exceeding Target. The total fair value of performance condition awards that vested in 2016 , 2015 and 2014 was $5,954 , $1,156 and $104 , respectively. The total fair value of market condition awards that vested in 2015 and 2014 was $10,073 and $6,382 , respectively. No market condition awards vested in 2016. Modifications of Share-Based Awards During 2015 and 2014, the Company modified the terms of awards granted to 25 and 45 employees, respectively, in connection with its system optimization initiative and G&A realignment plan discussed in Note 4 as well as the Bakery sale discussed in Note 18. These modifications resulted in the accelerated vesting of certain stock options and performance-based awards upon termination of such employees. As a result, during 2015, the Company recognized net increases in share-based compensation of $5,977 , of which $5,624 , $181 and $172 was included in “Reorganization and realignment costs,” “General and administrative” and “ Net income from discontinued operations ,” respectively, as a result of the modifications. During 2014, the Company recognized a net increase in share-based compensation of $2,376 , of which $4,472 was included in “Reorganization and realignment costs” with an offsetting reduction to “General and administrative” of $2,096 . Share-Based Compensation Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated statements of operations were as follows: Year Ended 2016 2015 2014 Stock options $ 6,859 $ 10,081 $ 13,692 Restricted Shares 5,051 4,834 4,495 Performance shares: Performance condition awards 4,681 888 7,456 Market condition awards 1,550 1,348 37 Modifications, net — 5,805 2,376 Share-based compensation (a) 18,141 22,956 28,056 Less: Income tax benefit (a) (6,520 ) (8,380 ) (10,357 ) Share-based compensation, net of income tax benefit $ 11,621 $ 14,576 $ 17,699 _______________ (a) Excludes $275 and $187 of pre-tax share-based compensation and $106 and $72 of related income tax benefits for 2015 and 2014, respectively, which are included in “ Net income from discontinued operations .” As of January 1, 2017 , there was $20,888 of total unrecognized share-based compensation, which will be recognized over a weighted average amortization period of 2.0 years. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Jan. 01, 2017 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets During 2016 , 2015 and 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-operated restaurants, (2) the deterioration in operating performance of certain Company-operated restaurants and charges for capital improvements in restaurants impaired in prior years which did not subsequently recover and (3) closing Company-operated restaurants and classifying such surplus properties as held for sale. The Company may recognize additional impairment charges resulting from leasing or subleasing additional properties to franchisees in connection with sales of Company-operated 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 :” Year Ended 2016 2015 2014 Restaurants leased or subleased to franchisees $ 14,010 $ 19,214 $ 11,993 Company-operated restaurants 1,918 3,132 5,146 Surplus properties 313 2,655 2,474 $ 16,241 $ 25,001 $ 19,613 |
Investment Income, Net (Notes)
Investment Income, Net (Notes) | 12 Months Ended |
Jan. 01, 2017 | |
Investment Income, Net [Abstract] | |
Investment Income, Net [Text Block] | Investment Income, Net Year Ended 2016 2015 2014 Distributions, including dividends (a) $ — $ 54,911 $ 184 Gain on sale of investments, net 497 335 975 Other than temporary loss on cost method investment — (3,150 ) — Other, net 226 118 40 $ 723 $ 52,214 $ 1,199 _______________ (a) During 2015, the Company received a dividend of $54,911 from our investment in Arby’s. See Note 7 for further information. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jan. 01, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Sale of the Bakery On May 31, 2015, Wendy’s completed the sale of 100% of its membership interest in the Bakery 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, which was settled during 2015. Pursuant to the sale agreement, the Company was 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 $25,529 during 2015, which included transaction closing costs and a reduction of goodwill. The Company recognized income tax expense associated with the gain on disposal of $14,860 during 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 provided 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., established by Wendy’s and its franchisees, agreed to continue to source sandwich buns from the Bakery, for a specified time period following the sale of the Bakery. As a result, Wendy’s paid the Buyer $10,176 and $8,358 for the purchase of sandwich buns during 2016 and for the period from June 1, 2015 through January 3, 2016, respectively, which has been recorded to “Cost of sales.” Information related to the Bakery has been reflected in the accompanying 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. • Statements of operations - The Bakery’s results of operations for the period from December 29, 2014 through May 31, 2015 and the year ended December 28, 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 year ended January 3, 2016. • 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 year ended December 28, 2014) have been included in, and not separately reported from, our consolidated cash flows. The consolidated statement of cash flows for the year ended January 3, 2016 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: Year Ended 2015 2014 Revenues (a) $ 25,885 $ 62,561 Cost of sales (b) (7,543 ) (45,710 ) 18,342 16,851 General and administrative (1,093 ) (2,525 ) Depreciation and amortization (c) (2,297 ) (5,471 ) Other expense, net (d) (19 ) (126 ) Income from discontinued operations before income taxes 14,933 8,729 Provision for income taxes (4,439 ) (3,719 ) Income from discontinued operations, net of income taxes 10,494 5,010 Gain on disposal of discontinued operations before income taxes 25,529 — Provision for income taxes on gain on disposal (14,860 ) — Gain on disposal of discontinued operations, net of income taxes 10,669 — Net income from discontinued operations $ 21,163 $ 5,010 _______________ (a) Includes sales of sandwich buns and related products previously reported in “Sales” as well as rental income. (b) 2015 includes employee separation-related costs of $791 as a result of the sale of the Bakery. In addition, 2015 includes a reduction to cost of sales of $12,486 resulting from the reversal of a liability recorded during 2013 associated with the Bakery’s withdrawal from a multiemployer pension plan. See Note 19 for further discussion. (c) Included in “Depreciation and amortization” in our consolidated statements of cash flows for the periods presented. (d) Includes net gains on sales of other assets. During 2015 and 2014, the Bakery received cash proceeds of $50 and $52 , respectively, resulting in net gains on sales of other assets of $32 and $69 , respectively. The Bakery’s capital expenditures were $2,693 and $2,613 for 2015 and 2014, respectively, which are included in “Capital expenditures” in our consolidated statements of cash flows. The following table summarizes the gain on the disposal of the Bakery, which has been included in discontinued operations: Year Ended 2015 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 Post-closing adjustments on the sale of the Bakery (1,809 ) Gain on disposal of discontinued operations before income taxes 25,529 Provision for income taxes (e) (14,860 ) Gain on disposal of discontinued operations, net of income taxes $ 10,669 _______________ (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. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Jan. 01, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Benefit Plans 401(k) Plan Subject to certain restrictions, the Company has a 401(k) defined contribution plan (the “401(k) Plan”) for all of its employees who meet certain minimum requirements and elect to participate. The 401(k) Plan permits employees to contribute up to 75% of their compensation, subject to certain limitations and provides for matching employee contributions up to 4% of compensation and for discretionary profit sharing contributions. In connection with the matching and profit sharing contributions, the Company recognized compensation expense of $5,177 , $6,124 and $6,550 in 2016 , 2015 and 2014 , respectively. Pension Plans The Wendy’s Company maintains two domestic qualified defined benefit plans, the benefits under which were frozen in 1988 and for which The Wendy’s Company has no unrecognized prior service cost. Arby’s employees who were eligible to participate through 1988 (the “Eligible Arby’s Employees”) are covered under one of these plans. Pursuant to the terms of the Arby’s sale agreement, Wendy’s Restaurants retained the liabilities related to the Eligible Arby’s Employees under these plans and received $400 from the buyer for the unfunded liability related to the Eligible Arby’s Employees. In conjunction with the sale of Arby’s, Wendy’s Restaurants transferred the liabilities related to the Eligible Arby’s Employees to The Wendy’s Company. The measurement date used by The Wendy’s Company in determining amounts related to its defined benefit plans is the same as the Company’s fiscal year end. The balance of the accumulated benefit obligations and the fair value of the plans’ assets at January 1, 2017 were $3,609 and $2,641 , respectively. As of January 3, 2016 , the balance of the accumulated benefit obligations and the fair value of the plans’ assets were $3,809 and $2,699 , respectively. As of January 1, 2017 and January 3, 2016 , each of the plans had accumulated benefit obligations in excess of the fair value of the assets of the respective plan. The Wendy’s Company recognized $177 , $149 , and $126 in benefit plan expenses in 2016 , 2015 and 2014 , respectively, which were included in “General and administrative.” The Wendy’s Company’s future required contributions to the plan are expected to be insignificant. Multiemployer Pension Plan Prior to the fourth quarter of 2013, the unionized employees at The New Bakery Co. of Ohio, Inc. (the “Bakery Company”), a 100% owned subsidiary of Wendy’s, now known as The Bakery Company, LLC, were covered by the Bakery and Confectionery Union and Industry International Pension Fund (the “Union Pension Fund”), a multiemployer pension plan. The Bakery Company remitted contributions based on hours worked by covered, unionized employees pursuant to a collective bargaining agreement that expired on March 31, 2013 and the Rehabilitation Plan adopted by the Union Pension Fund in accordance with the provisions of the Pension Protection Act of 2006 due to the underfunded status of the plan. In December of 2013, the Bakery Company terminated its participation in 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 of its membership interest in the Bakery Company, Wendy’s no longer has any obligations related to the Union Pension Fund. The unionized employees were eligible to participate in the 401(k) Plan from December 5, 2013 through May 31, 2015, for which the Company has made contributions. As a result of the sale of the Bakery, the amounts described above have been included in “ Net income from discontinued operations .” See Note 18 for more information on the sale of the Bakery. Wendy’s Executive Plans In conjunction with the Wendy’s merger, amounts due under supplemental executive retirement plans (the “SERP”) were funded into a restricted account. As of January 1, 2011, participation in the SERP was frozen to new entrants and future contributions, and existing participants’ balances only earn annual interest. The corresponding SERP liabilities have been included in “Accrued expenses and other current liabilities” and “Other liabilities” and, in the aggregate, were approximately $3,101 and $3,396 as of January 1, 2017 and January 3, 2016 , respectively. Pursuant to the terms of the employment agreement that was entered into with our then Chief Executive Officer as of September 12, 2011, the Company implemented a non-qualified, unfunded, deferred compensation plan. The plan provided that the amount of the executive’s base salary in excess of $1,000 in a tax year will be deferred into the plan which accrues employer funded interest. The compensation deferred under the plan was distributed to our former Chief Executive Officer during 2016. As of January 3, 2016 , the deferred compensation liability was included in “Accrued expenses and other current liabilities” and was approximately $524 , including both employee contributions and employer funded interest. Effective January 1, 2017, the Company implemented a non-qualified, unfunded deferred compensation plan for management and highly compensated employees, whereby participants may defer all or a portion of their base compensation and certain incentive awards on a pre-tax basis. The Company credits the amounts deferred with earnings based on the investment options selected by the participants. The Company may also make discretionary contributions to the plan. |
Leases
Leases | 12 Months Ended |
Jan. 01, 2017 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases At January 1, 2017 , Wendy’s and its franchisees operated 6,537 Wendy’s restaurants. Of the 330 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 149 restaurants, owned the building and held long-term land leases for 128 restaurants and held leases covering land and building for 53 restaurants. Lease terms are generally initially between 15 and 20 years and, in most cases, provide for rent escalations and renewal options. Certain leases contain contingent rent provisions that require additional rental payments based upon restaurant sales volume in excess of specified amounts. The Company also leases restaurant, office and transportation equipment. Certain leases also provide for payments of other costs such as real estate taxes, insurance and common area maintenance, which have been excluded from rental expense and future minimum rental payments set forth in the tables below. As of January 1, 2017 , Wendy’s also owned 519 and leased 979 properties that were either leased or subleased principally to franchisees. Initial lease terms are generally 20 years and, in most cases, provide for rent escalations and renewal options. Certain leases to franchisees also include contingent rent provisions based on sales volume exceeding specified amounts. The lessee bears the cost of real estate taxes, insurance and common area maintenance, which have been excluded from rental income and future minimum rental receipts set forth in the tables below. Rental expense for operating leases consists of the following components: Year Ended 2016 2015 2014 Rental expense: Minimum rentals $ 77,952 $ 77,606 $ 76,178 Contingent rentals 18,291 18,270 19,967 Total rental expense (a) $ 96,243 $ 95,876 $ 96,145 _______________ (a) Amounts exclude sublease income of $95,072 , $61,618 , and $46,743 recognized during 2016 , 2015 and 2014 , respectively. Rental income for operating leases and subleases consists of the following components: Year Ended 2016 2015 2014 Rental income: Minimum rentals $ 123,171 $ 68,241 $ 50,249 Contingent rentals 19,944 18,731 17,745 Total rental income $ 143,115 $ 86,972 $ 67,994 The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of January 1, 2017 . Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease. Rental Payments Rental Receipts Fiscal Year Capital Leases Operating Leases Capital Leases Operating Leases Owned Properties 2017 $ 25,749 $ 74,400 $ 34,841 $ 64,562 $ 52,840 2018 26,226 72,080 35,024 64,155 53,013 2019 25,235 71,825 35,120 64,391 53,980 2020 25,727 70,831 35,753 64,144 54,573 2021 27,104 70,490 37,180 64,226 56,362 Thereafter 418,349 898,439 572,645 849,766 996,857 Total minimum payments $ 548,390 $ 1,258,065 $ 750,563 $ 1,171,244 $ 1,267,625 Less interest (336,676 ) Present value of minimum capital lease payments (a) $ 211,714 _______________ (a) The present value of minimum capital lease payments of $1,902 and $209,812 are included in “Current portion of long-term debt” and “Long-term debt,” respectively. Properties owned by the Company and leased to franchisees and other third parties under operating leases include: Year End January 1, 2017 January 3, 2016 Land $ 271,160 $ 165,667 Buildings and improvements 312,067 188,621 Office, restaurant and transportation equipment 1,507 1,162 584,734 355,450 Accumulated depreciation and amortization (110,166 ) (63,476 ) $ 474,568 $ 291,974 Our net investment in direct financing leases is as follows: Year End January 1, 2017 January 3, 2016 Future minimum rental receipts $ 401,452 $ 200,213 Unearned interest income (277,747 ) (135,426 ) Net investment in direct financing leases 123,705 64,787 Net current investment in direct financing leases (a) (101 ) (25 ) Net non-current investment in direct financing leases (b) $ 123,604 $ 64,762 _______________ (a) Included in “Accounts and notes receivable, net.” (b) Included in “Other assets.” |
Guarantees and Other Commitment
Guarantees and Other Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Other Commitments and Contingencies | Guarantees and Other Commitments and Contingencies Guarantees and Contingent Liabilities Franchisee Image Activation Incentive Programs In order to promote Image Activation new restaurant development, Wendy’s has an incentive program for franchisees that provides for reductions in royalty and national advertising payments for up to the first two years of operation for qualifying new restaurants opened by December 31, 2020, with the value of the incentives declining in the later years of the program. Wendy’s also has incentive programs for 2017 available to franchisees that commence Image Activation restaurant remodels by December 15, 2017. The remodel incentive programs provide for reductions in royalty payments for one year after the completion of construction. In addition, Wendy’s had incentive programs that included reductions in royalty payments in 2016, 2015 and 2014 as well as cash incentives for franchisees’ participation in Wendy’s Image Activation program throughout 2014. The Company recognized expense of $4,369 for cash incentives in “General and administrative” during 2014. Franchisee Image Activation Financing Program Wendy’s executed an agreement in 2013 to partner with a third-party lender to establish a financing program for franchisees that participate in our Image Activation program. Under the program, the lender agreed to provide loans to franchisees to be used for the reimaging of restaurants according to the guidelines and specifications under Wendy’s Image Activation program. To support the program, Wendy’s provided to the lender a $6,000 irrevocable stand-by letter of credit, which was issued on July 1, 2013 and was cash collateralized. During 2016, the Company executed an agreement to terminate the letter of credit agreement that had been previously executed as part of the financing program. Other Loan Guarantees Wendy’s provides loan guarantees to various lenders on behalf of franchisees entering into pooled debt facility arrangements for new restaurant development and equipment financing to promote systemwide initiatives. Wendy’s has accrued a liability for the fair value of these guarantees, the calculation for which was based upon a weighted average risk percentage established at the inception of each program which has been adjusted for a history of defaults. Wendy’s potential recourse for the aggregate amount of these loans amounted to $955 as of January 1, 2017 . As of January 1, 2017 , the fair value of these guarantees totaled $135 and is included in “Other liabilities.” During 2014, Wendy’s provided a C$2,300 guarantee to a lender on behalf of a franchisee, in connection with the sale of Canadian restaurants to the franchisee under the Company’s system optimization initiative. As a result, the total amount of the guarantee was recorded as a deferred gain in 2014 and is included in “Other liabilities.” During 2012, Wendy’s provided a $2,000 guarantee to a lender for a franchisee, in connection with the refinancing of the franchisee’s debt which originated in 2007. Pursuant to the agreement, the guarantee is subject to an annual reduction over a five year period. As of January 1, 2017 , the guarantee totaled $1,317 and Wendy’s has accrued a $145 liability for the fair value of this guarantee based upon a weighted average risk percentage established at the inception of the guarantee. Lease Guarantees Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $62,909 as of January 1, 2017 . These leases extend through 2050. We have not received any notice of default related to these leases as of January 1, 2017 . In the event of default by a franchise owner, Wendy’s generally retains the right to acquire possession of the related restaurant locations. Wendy’s is contingently liable for certain other leases which have been assigned to unrelated third parties who have indemnified Wendy’s against future liabilities amounting to $712 as of January 1, 2017 . These leases expire on various dates through 2021. Insurance Wendy’s is self-insured for most workers’ compensation losses and purchases insurance for general liability and automotive liability losses, all subject to a $500 per occurrence retention or deductible limit. Wendy’s determines its liability for claims incurred but not reported for the insurance liabilities on an actuarial basis. As of January 1, 2017 , the Company had $32,774 recorded for these insurance liabilities. Wendy’s is self-insured for health care claims for eligible participating employees subject to certain deductibles and limitations and determines its liability for health care claims incurred but not reported based on historical claims runoff data. As of January 1, 2017 , the Company had $3,265 recorded for these health care insurance liabilities. Letters of Credit As of January 1, 2017 , the Company had outstanding letters of credit with various parties totaling $33,004 , of which $6,165 were cash collateralized. The outstanding letters of credit include amounts outstanding against the Series 2015-1 Class A-1 Notes. The related cash collateral is classified as restricted cash and included in “Restricted cash” in the consolidated balance sheet. See Note 6 and Note 11 for further information. We do not expect any material loss to result from these letters of credit. Purchase and Capital Commitments Beverage Agreement The Company has an agreement with a beverage vendor, which provides fountain beverage products and certain marketing support funding to the Company and its franchisees. This agreement requires minimum purchases of fountain syrup (“Syrup”) by the Company and its franchisees at certain agreed upon prices until the total contractual gallon volume usage is reached. This agreement also provides for an annual advance to be paid to the Company based on the vendor’s expectation of the Company’s annual Syrup usage, which is amortized over actual usage during the year. The Company estimates future annual purchases to be approximately $8,900 in 2017, $9,200 in 2018 and $10,400 per year during the following three years. Based on current pricing and the expected ratio of usage at Company-operated restaurants to franchised restaurants, our total beverage purchase requirements under the agreement is estimated to be approximately $49,300 over the remaining life of the contract, which expires the later of reaching the minimum usage requirement or January 1, 2023. Beverage purchases made by the Company under this agreement during 2016 , 2015 and 2014 were $12,839 , $15,720 and $13,918 , respectively. As of January 1, 2017 , $43 is due to the beverage vendor and is included in “Accounts payable,” principally for annual estimated payments that exceeded usage, under this agreement. Capital Expenditure Commitments As of January 1, 2017 , the Company had $11,325 of outstanding commitments, included in “Accounts payable,” for capital expenditures expected to be paid in 2017. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Jan. 01, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties The following is a summary of transactions between the Company and its related parties, which are included in continuing operations: Year Ended 2016 2015 2014 Transactions with QSCC: Wendy’s Co-Op (a) $ (890 ) $ (1,265 ) $ (1,516 ) Lease income (b) (193 ) (185 ) (185 ) Use of Company-operated aircraft by the Management Company (c) $ — $ — $ (375 ) TimWen lease and management fee payments (d) $ 11,602 $ 11,843 $ 6,064 _______________ Transactions with QSCC (a) Wendy’s has a purchasing co-op relationship agreement (the “Wendy’s Co-op”) with its franchisees which establishes Quality Supply Chain Co-op, Inc. (“QSCC”). QSCC manages, for the Wendy’s system in the U.S. and Canada, contracts for the purchase and distribution of food, proprietary paper, operating supplies and equipment under national agreements with pricing based upon total system volume. QSCC’s supply chain management facilitates continuity of supply and provides consolidated purchasing efficiencies while monitoring and seeking to minimize possible obsolete inventory throughout the Wendy’s supply chain in the U.S. and Canada. Wendy’s and its franchisees pay sourcing fees to third-party vendors on certain products sourced by QSCC. Such sourcing fees are remitted by these vendors to QSCC and are the primary means of funding QSCC’s operations. Should QSCC’s sourcing fees exceed its expected needs, QSCC’s board of directors may return some or all of the excess to its members in the form of a patronage dividend. Wendy’s recorded its share of patronage dividends of $890 , $1,265 and $1,516 in 2016 , 2015 and 2014 , respectively, which are included as a reduction of “Cost of sales.” (b) Effective January 1, 2011 , Wendy’s leased 14,333 square feet of office space to QSCC for an annual base rental of $176 . The lease expired on December 31, 2016. A new lease agreement was signed effective January 1, 2017, expiring on December 31, 2020 for an annual base rental of $215 . The Wendy’s Company received $193 , $185 and $185 of lease income from QSCC during 2016 , 2015 and 2014 , respectively, which has been recorded as a reduction of “General and administrative.” Use of Company-operated aircraft by the Management Company (c) The Wendy’s Company, through a wholly-owned subsidiary, was party to a three -year aircraft management and lease agreement, which expired in March 2014, with CitationAir, a subsidiary of Cessna Aircraft Company, pursuant to which the Company leased a corporate aircraft to CitationAir to use as part of its Jet Card program fleet. During the first quarter of 2014, our Chairman, who was our former Chief Executive Officer, and our Vice Chairman, who was our former President and Chief Operating Officer (the “Former Executives”) and a director, who was our former Vice Chairman, and members of their immediate families, used their Jet Card agreements for business and personal travel on aircraft in the Jet Card program fleet. A management company formed by the Former Executives and a director (the “Management Company”) paid CitationAir directly, and the Company received credit from CitationAir for charges related to such travel of approximately $375 during 2014. TimWen lease and management fee payments (d) A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen for the operation of Wendy’s/Tim Hortons combo units in Canada. Prior to the second quarter of 2015, Wendy’s operated certain of the Wendy’s/Tim Hortons combo units in Canada and subleased some of the restaurant facilities to franchisees. As a result of the Company completing its plan to sell all of its Company-operated restaurants in Canada to franchisees during the second quarter of 2015, all of the restaurant facilities are subleased to franchisees. Wendy’s paid TimWen $11,806 , $12,059 and $6,313 under these lease agreements during 2016 , 2015 and 2014 , respectively. In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $204 , $216 and $249 during 2016 , 2015 and 2014 , respectively, which has been included as a reduction to “General and administrative.” Other related party transactions On June 2, 2015, the Company entered into a stock purchase agreement to repurchase our common stock from Nelson Peltz, Peter W. May (Messrs. Peltz and May are members of the Company’s Board of Directors) and Edward P. Garden (who served on the Company’s Board of Directors until December 14, 2015) 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 purchased 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 . Matthew Peltz served on the ARG Holding Corporation Board of Directors from September 2012 through December 2015. He did not receive compensation as a director of ARG Holding Corporation. A subsidiary of the Company owns 18.5% of the common stock of ARG Holding Corporation. On March 24, 2014, the Company completed the sale of 40 Company-operated restaurants in the Phoenix, Arizona market to Arizona Restaurant Company, LLC (“ARC”) as part of the Company’s system optimization initiative. John N. Peters, who served as the Company’s Senior Vice President – North America Operations until his retirement on March 10, 2014, is a 10% owner and manager of ARC. Pursuant to an Asset Purchase Agreement dated November 20, 2013 and related transaction documents: (1) the Company sold to ARC substantially all of the assets (other than real property) used in the operation of the restaurants for an aggregate purchase price of approximately $21,000 (including inventory, cash banks and franchise and development fees), subject to adjustment as set forth in the agreement; (2) the Company and ARC entered into lease and sublease agreements with respect to the real property and buildings for the restaurants; and (3) ARC agreed to develop five new restaurants and complete Image Activation remodels at seven existing restaurants following the closing. As of December 28, 2014 the Company had $27 accrued for amounts owed to Mr. Peters in connection with his employment with the Company, which was paid during 2015. As part of its overall retention efforts, The Wendy’s Company provided certain of its Former Executives and current and former employees, the opportunity to co-invest with The Wendy’s Company in certain investments. During 2013, The Wendy’s Company and certain of its former management had one remaining co-investment, 280 BT Holdings LLC (“280 BT”), a limited liability company formed to invest in certain operating entities. In early 2014, 280 BT received a liquidating distribution following the dissolution of its last investment. Upon receipt of the liquidating distribution, 280 BT made a final, equivalent distribution to its members in accordance with the terms of its operating agreement. The ownership percentages in 280 BT for the purpose of the distribution and as of December 29, 2013 for The Wendy’s Company, the former officers of The Wendy’s Company and other investors were 80.1% , 11.2% and 8.7% , respectively. The distribution during the first quarter of 2014 to The Wendy’s Company and the former officers of The Wendy’s Company was $22 and $5 , respectively. |
Legal and Environmental Matters
Legal and Environmental Matters | 12 Months Ended |
Jan. 01, 2017 | |
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 January 1, 2017 , the Company had accruals for all of its legal and environmental matters aggregating $1,227 . 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. The Company was named as a defendant in a civil complaint that was filed in the U.S. District Court for the Middle District of Florida on February 8, 2016 by plaintiff Jonathan Torres. The complaint asserted claims of breach of implied contract, negligence and violations of the Florida Unfair and Deceptive Trade Practices Act arising from the Company’s alleged failure to safeguard customer credit card information and the alleged failure to provide notice that credit card information had been compromised. The complaint sought certification of a putative nationwide class of consumers impacted by the alleged failures. The plaintiff sought monetary damages, injunctive and equitable relief, attorneys’ fees and other costs. The Company’s motion to dismiss the complaint was granted, without prejudice, on July 15, 2016. An amended complaint was filed in the same court by plaintiff Jonathan Torres and six additional named plaintiffs on July 29, 2016. The amended complaint names the Company’s subsidiary, Wendy’s International, LLC (“Wendy’s International”), as the defendant and asserts claims of breach of implied contract, negligence and violations of state consumer protection or deceptive trade practices statutes in the states of Florida, New York, New Jersey, Mississippi, Tennessee and Texas arising from Wendy’s International’s alleged failure to safeguard customer credit card information and the alleged failure to provide notice that credit card information had been compromised. The amended complaint also asserts violations of state data breach statutes in Florida, New York, New Jersey, Tennessee and Texas based on Wendy’s International’s alleged failure to timely and fully disclose the alleged data breach. The amended complaint seeks certification of a putative nationwide class of consumers impacted by the alleged failures, or in the alternative, statewide classes for Florida, New York, New Jersey, Mississippi, Tennessee and Texas. The plaintiffs seek monetary damages, injunctive and equitable relief, attorneys’ fees and other costs. The Company’s motion to dismiss the amended complaint is pending before the court. The Company was named as a defendant in a civil complaint that was filed in the U.S. District Court for the Western District of Pennsylvania on April 25, 2016 by plaintiff First Choice Federal Credit Union. The complaint asserts claims of common law negligence, negligence per se due to the alleged violation of section 5 of the Federal Trade Commission Act, and declaratory and injunctive relief. All of these claims are based on the allegations arising from the Company’s alleged failure to safeguard customer credit card information and the alleged failure to provide notice that credit card information had been compromised. The complaint sought certification of a putative nationwide class of banks, credit unions, financial institutions and other entities in the United States impacted by the alleged failures. The plaintiff sought monetary damages, a declaratory judgment, injunctive relief, attorneys’ fees and other costs. The Company was named as a defendant in four other civil complaints filed by financial institutions in the U.S. District Court for the Western District of Pennsylvania based on the allegations arising from the Company’s alleged failure to safeguard customer credit card information and the alleged failure to provide notice that credit card information had been compromised. These cases were consolidated into the First Choice Federal Credit Union case. An amended civil complaint was filed in the consolidated proceeding in the U.S. District Court for the Western District of Pennsylvania on July 22, 2016 naming the Company and two of its subsidiaries as defendants. The amended complaint was brought by 22 financial institutions and five association plaintiffs (representing members who are credit unions and other similar financial institutions). The amended complaint asserts claims of common law negligence, negligence per se due to the alleged violation of section 5 of the Federal Trade Commission Act, violation of the Ohio Deceptive Trade Practices Act, and declaratory and injunctive relief. The amended complaint also seeks certification of a putative nationwide class of banks, credit unions, financial institutions and other entities in the United States impacted by the alleged failures. The plaintiffs seek monetary damages, a declaratory judgment, injunctive relief, attorneys’ fees and other costs. The Company’s motion to dismiss the amended complaint is pending before the court. The Company believes it has meritorious defenses to each of the actions described above and intends to vigorously oppose the claims asserted in each of the complaints. Certain of the Company’s present and former directors, and one non-director executive officer of the Company, were named as defendants in a putative shareholder derivative complaint that was filed in the U.S. District Court for the Southern District of Ohio on December 16, 2016 by plaintiff James Graham. The Company was also named as a nominal defendant. The complaint asserts claims of breach of fiduciary duty, waste of corporate assets, unjust enrichment and gross mismanagement arising out of the credit card incidents described above. The plaintiff seeks an accounting for all damages incurred or that will be incurred as a result of the alleged wrongful acts or omissions, a judgment directing the Company to reform its governance and internal procedures, restitution and disgorgement, attorneys’ fees and other costs. |
Advertising Costs and Funds
Advertising Costs and Funds | 12 Months Ended |
Jan. 01, 2017 | |
Marketing and Advertising Expense [Abstract] | |
Advertising Costs and Funds [Text Block] | Advertising Costs and Funds We currently participate in two national advertising funds (the “Advertising Funds”) established to collect and administer funds contributed for use in advertising and promotional programs. Contributions to the Advertising Funds are required from both Company-operated and franchised restaurants and are based on a percentage of restaurant sales. In addition to the contributions to the various Advertising Funds, Company-operated and franchised restaurants make additional contributions to other local and regional advertising programs. Restricted assets and related liabilities of the Advertising Funds at January 1, 2017 and January 3, 2016 were as follows: Year End January 1, 2017 January 3, 2016 Cash and cash equivalents $ 19,359 $ 13,704 Accounts and notes receivable, net 49,983 50,231 Other assets 6,418 3,464 Total assets $ 75,760 $ 67,399 Accounts payable $ 8,362 $ 3,872 Accrued expenses and other current liabilities 71,068 64,603 Member’s deficit (3,670 ) (1,076 ) Total liabilities and deficit $ 75,760 $ 67,399 Our advertising expenses in 2016 , 2015 and 2014 totaled $41,064 , $64,312 and $73,454 , respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 01, 2017 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information [Text Block] | Geographic Information The table below presents revenues and properties information by geographic area: U.S. Canada Other International Total 2016 Revenues $ 1,373,345 $ 45,959 $ 16,114 $ 1,435,418 Properties 1,162,006 30,257 76 1,192,339 2015 Revenues $ 1,749,131 $ 104,003 $ 17,163 $ 1,870,297 Properties 1,198,553 29,296 95 1,227,944 2014 Revenues $ 1,734,164 $ 247,792 $ 16,546 $ 1,998,502 Properties 1,202,545 38,538 87 1,241,170 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jan. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) [Text Block] | Quarterly Financial Information (Unaudited) The tables below set forth summary unaudited consolidated quarterly financial information for 2016 and 2015 . The Company reports on a fiscal year typically consisting of 52 or 53 weeks ending on the Sunday closest to December 31. All of the Company’s fiscal quarters in 2016 contained 13 weeks. During 2015, the Company’s first, second and third fiscal quarters contained 13 weeks and the Company’s fourth quarter contained 14 weeks. 2016 Quarter Ended (a) April 3 July 3 October 2 January 1 Revenues $ 378,787 $ 382,718 $ 364,012 $ 309,901 Cost of sales 214,736 202,554 186,546 140,865 Operating profit 63,829 65,648 106,088 79,215 Net income $ 25,363 $ 26,480 $ 48,890 $ 28,891 Basic income per share $ .09 $ .10 $ .19 $ .11 Diluted income per share $ .09 $ .10 $ .18 $ .11 2015 Quarter Ended (b) March 29 June 28 September 27 January 3 Revenues $ 451,769 $ 489,534 $ 464,629 $ 464,365 Cost of sales 305,111 315,122 291,524 272,316 Operating profit 37,911 64,308 55,939 116,312 Income from continuing operations 18,150 24,825 8,323 88,681 Net income (loss) from discontinued operations 9,357 15,370 (739 ) (2,825 ) Net income $ 27,507 $ 40,195 $ 7,584 $ 85,856 Basic income (loss) per share: Continuing operations $ .05 $ .07 $ .03 $ .32 Discontinued operations .03 .04 — (.01 ) Net income $ .08 $ .11 $ .03 $ .31 Diluted income (loss) per share: Continuing operations $ .05 $ .07 $ .03 $ .32 Discontinued operations .03 .04 — (.01 ) Net income $ .07 $ .11 $ .03 $ .31 _______________ (a) The Company’s consolidated statements of operations in fiscal 2016 were materially impacted by system optimization gains, net, reorganization and realignment costs, impairment of long-lived assets and a gain recognized on a lease buyout. The pre-tax impact of system optimization gains, net for the first, third and fourth quarters was $8,426 , $37,756 and $23,825 , respectively (see Note 2 for additional information). The pre-tax impact of reorganization and realignment costs for the first, second, third and fourth quarters was $3,250 , $2,487 , $2,129 and $2,217 , respectively (see Note 4 for additional information). The pre-tax impact of impairment of long-lived assets during the first, second and fourth quarters was $7,105 , $5,525 and $3,250 , respectively (see Note 16 for additional information). The pre-tax impact of a gain recognized on a lease buyout during the first quarter was $11,606 . (b) The Company’s consolidated statements of operations in fiscal 2015 were materially impacted by system optimization gains, net, reorganization and realignment costs, impairment of long-lived assets and loss on early extinguishment of debt. The pre-tax impact of system optimization gains, net for the second and fourth quarters was $15,654 and $59,258 , respectively (see Note 2 for additional information). The pre-tax impact of reorganization and realignment costs for the first, second, third and fourth quarters was $4,613 , $6,279 , $5,754 and $5,264 , respectively (see Note 4 for additional information). The pre-tax impact of impairment of long-lived assets during the second and fourth quarters was $10,018 and $11,533 , respectively (see Note 16 for additional information). The pre-tax impact of loss on early extinguishment of debt during the second quarter was $7,295 (see Note 11 for additional information). Additionally, the Company’s consolidated statements of operations were materially affected during the fourth quarter by a $54,911 dividend from our investment in Arby’s, which was recognized in investment income, net (see Note 17 for additional information). |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include all of the Company’s subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company participates in two national advertising funds established to collect and administer funds contributed for use in advertising and promotional programs for Company-operated and franchised restaurants. The revenue, expenses and cash flows of such advertising funds are not included in the Company’s consolidated statements of operations or consolidated statements of cash flows because the contributions to these advertising funds are designated for specific purposes and the Company acts as an agent, in substance, with regard to these contributions. The assets and liabilities of these funds are reported as “Advertising funds restricted assets” and “Advertising funds restricted liabilities.” |
Use of Estimates, Policy [Policy Text Block] | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Reclassifications, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to prior year presentation to conform to the current year presentation. The Company has changed the presentation of franchise revenues to separately present “Franchise rental income” and “Franchise royalty revenue and fees” in our consolidated statements of operations. These reclassifications are due to the growth in rental income and royalty revenue received from franchisees primarily driven by the Company’s system optimization initiative (see Note 2 for additional information on our system optimization initiative). Also, the Company has separately presented the related “Franchise rental expense” for properties that are leased or subleased to franchisees, which was previously recorded to “Other operating expense, net.” The Company believes this new presentation will aid users in understanding its results of operations. The prior periods reflect the reclassifications of these revenues and expenses to conform to the current year presentation. There was no impact to total revenues, operating profit, income from continuing operations before income taxes or net income as a result of these reclassifications. |
Fiscal Year, Policy [Policy Text Block] | Fiscal Year The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31 and are referred to herein as (1) “the year ended January 1, 2017 ” or “ 2016 ,” which consisted of 52 weeks, (2) “the year ended January 3, 2016 ” or “ 2015 ,” which consisted of 53 weeks, and (3) “the year ended December 28, 2014 ” or “ 2014 ,” which consisted of 52 weeks. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less when acquired are considered cash equivalents. The Company’s cash and cash equivalents principally consist of cash in bank and money market mutual fund accounts and are primarily not in Federal Deposit Insurance Corporation insured accounts. We believe that our vulnerability to risk concentrations in our cash equivalents is mitigated by (1) our policies restricting the eligibility, credit quality and concentration limits for our placements in cash equivalents and (2) insurance from the Securities Investor Protection Corporation of up to $500 per account, as well as supplemental private insurance coverage maintained by substantially all of our brokerage firms, to the extent our cash equivalents are held in brokerage accounts. |
Restricted Cash, Policy [Policy Text Block] | Restricted Cash In accordance with the Company’s securitized financing facility, certain cash accounts have been established with the trustee for the benefit of the trustee and the noteholders, and are restricted in their use. Such restricted cash primarily represents cash collections and cash reserves held by the trustee to be used for payments of principal, interest and commitment fees required for the Company’s senior secured notes. Changes in such restricted cash are presented as a component of cash flows from operating and financing activities in the consolidated statements of cash flows since the cash is restricted to the payment of interest and principal, respectively. Furthermore, certain cash receipts from asset dispositions and insurance proceeds held by the trustee are restricted for reinvestment in capital assets useful to the Company’s operations in accordance with the securitized financing facility. Changes in such restricted cash are presented as a component of cash flows from investing activities in the consolidated statement of cash flows since the cash is restricted for investing activities. In addition, the Company has outstanding letters of credit with various parties that are cash collateralized. The related cash collateral is classified as restricted cash in the consolidated balance sheets. Changes in such restricted cash are presented as a component of cash flows from investing activities in the consolidated statements of cash flows. Refer to Note 6 for further information. |
Accounts and Notes Receivable, Policy [Policy Text Block] | Accounts and Notes Receivable, Net Accounts and notes receivable, net, consist primarily of royalties, rents, property taxes and franchise fees due principally from franchisees and credit card receivables. The need for an allowance for doubtful accounts is reviewed on a specific identification basis based upon past due balances and the financial strength of the obligor. |
Inventories, Policy [Policy Text Block] | Inventories The Company’s inventories are stated at the lower of cost or market, with cost determined in accordance with the first-in, first-out method and consist primarily of restaurant food items and paper supplies. |
Properties and Depreciation and Amortization, Policy [Policy Text Block] | Properties and Depreciation and Amortization Properties are stated at cost, including internal costs of employees to the extent such employees are dedicated to specific restaurant construction projects, less accumulated depreciation and amortization. Depreciation and amortization of properties is computed principally on the straight-line basis using the following estimated useful lives of the related major classes of properties: five to 20 years for office and restaurant equipment (including technology), three to 15 years for transportation equipment and seven to 30 years for buildings and improvements. When the Company commits to a plan to cease using certain properties before the end of their estimated useful lives, depreciation expense is accelerated to reflect the use of the assets over their shortened useful lives. Capital leases and leasehold improvements are amortized over the shorter of their estimated useful lives or the terms of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising. The Company reviews properties for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If such review indicates an asset group may not be recoverable, an impairment loss is recognized for the excess of the carrying amount over the fair value of an asset group to be held and used or over the fair value less cost to sell of an asset to be disposed. See “Impairment of Long-Lived Assets” below for further information. The Company classifies assets as held for sale and ceases depreciation of the assets when there is a plan for disposal of the assets and those assets meet the held for sale criteria. Assets held for sale are included in “Prepaid expenses and other current assets” in the consolidated balance sheets. |
Goodwill, Policy [Policy Text Block] | Goodwill Goodwill, representing the excess of the cost of an acquired entity over the fair value of the acquired net assets, is not amortized. Goodwill associated with our Company-operated restaurants is reduced as a result of restaurant dispositions based on the relative fair values and is included in the carrying value of the restaurant in determining the gain or loss on disposal. If a Company-operated restaurant is sold within two years of being acquired from a franchisee, the goodwill associated with the acquisition is written off in its entirety. For goodwill impairment testing purposes, we include two reporting units comprised of our (1) North America Company-operated and franchise restaurants and (2) international franchise restaurants. The Company tests goodwill for impairment annually during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test of goodwill may be completed through a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value of a reporting unit exceeds its fair value, we perform a two-step quantitative goodwill impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and we must perform step two of the impairment test (measurement). Step two of the impairment test, if necessary, requires the estimation of the fair value for the assets and liabilities of a reporting unit in order to calculate the implied fair value of the reporting unit’s goodwill. If the Company determines that impairment may exist, the amount of the impairment loss is measured as the excess, if any, of the carrying amount of the goodwill over its implied fair value. In determining the implied fair value of the reporting unit’s goodwill, the Company allocates the fair value of a reporting unit to all of the assets and liabilities of that unit as if the unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Our fair value estimates are subject to change as a result of many factors including, among others, any changes in our business plans, changing economic conditions and the competitive environment. Should actual cash flows and our future estimates vary adversely from those estimates we use, we may be required to recognize goodwill impairment charges in future years. |
Impairment of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Our long-lived assets include (1) properties and related definite-lived intangible assets (e.g., favorable leases) that are leased and/or subleased to franchisees and (2) Company-operated restaurant assets and related definite-lived intangible assets, which include favorable leases and reacquired rights under franchise agreements. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We assess the recoverability of our long-lived assets by comparing the carrying amount of the asset group to future undiscounted net cash flows expected to be generated through leases and/or subleases or by our individual Company-operated restaurants. If the carrying amount of the long-lived asset group is not recoverable on an undiscounted cash flow basis, then impairment is recognized to the extent that the carrying amount exceeds its fair value and is included in “Impairment of long-lived assets.” Our critical estimates in this review process include the anticipated future cash flows from leases and/or subleases or individual Company-operated restaurants, which is used in assessing the recoverability of the respective long-lived assets. Our impairment losses principally reflect impairment charges resulting from leasing and/or subleasing long-lived assets to franchisees in connection with the sale or anticipated sale of restaurants. Our fair value estimates are subject to change as a result of many factors including, among others, any changes in our business plans, changing economic conditions and the competitive environment. Should actual cash flows and our future estimates vary adversely from those estimates we used, we may be required to recognize additional impairment charges in future years. |
Other Intangible Assets [Policy Text Block] | Other Intangible Assets Definite-lived intangible assets are amortized on a straight-line basis using the following estimated useful lives of the related classes of intangibles: for favorable leases, the terms of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising; three to five years for computer software; four to 20 years for reacquired rights under franchise agreements; and 20 years for franchise agreements. Trademarks have an indefinite life and are not amortized. The Company reviews definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Indefinite-lived intangible assets are tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that the assets may be impaired. Our annual impairment test for indefinite-lived intangible assets may be completed through a qualitative assessment to determine if the fair value of the indefinite-lived intangible assets is more likely than not greater than the carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value exceeds the fair value, we test for impairment using a quantitative process. If the Company determines that impairment of its intangible assets may exist, the amount of impairment loss is measured as the excess of carrying value over fair value. Our estimates in the determination of the fair value of indefinite-lived intangible assets include the anticipated future revenues of Company-operated and franchised restaurants and the resulting cash flows. |
Investments, Policy [Policy Text Block] | Investments The Company has a 50% share in a partnership 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 Tim Hortons USA Inc.) In addition, the Company has a 20% share in a joint venture for the operation of Wendy’s restaurants in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method, under which our results of operations include our share of the income (loss) of the investees in “ Other operating income, net .” Investments in limited partnerships and other non-current investments in which the Company does not have significant influence over the investees, which includes our indirect 18.5% interest in Arby’s Restaurant Group, Inc. (“Arby’s”), are recorded at cost with related realized gains and losses reported as income or loss in the period in which the securities are sold or otherwise disposed. Our 18.5% equity interest as of January 1, 2017 has the potential to be diluted by stock options issued as incentives to Arby’s management. Cash distributions and dividends received that are determined to be returns of capital are recorded as a reduction of the carrying value of our investments and returns on our investments are recorded to “Investment income, net.” The difference between the carrying value of our TimWen equity investment and the underlying equity in the historical net assets of the investee is accounted for as if the investee were a consolidated subsidiary. Accordingly, the carrying value difference is amortized over the estimated lives of the assets of the investee to which such difference would have been allocated if the equity investment were a consolidated subsidiary. To the extent the carrying value difference represents goodwill, it is not amortized. |
Derivative Instruments, Policy [Policy Text Block] | Derivative Instruments The Company used interest rate swap agreements to manage its exposure to changes in interest rates as well as to maintain an appropriate mix of fixed and variable rate debt. In May 2015, the Company terminated its floating to fixed interest rate swap agreements which were accounted for as cash flow hedges. Changes in the fair value of the cash flow hedging instruments were recorded as an adjustment to “ Accumulated other comprehensive loss ” to the extent of the effectiveness of such hedging instruments and subsequently reclassified into “Interest expense” in the period that the hedged forecasted transaction affects earnings. |
Share-based Compensation, Policy [Policy Text Block] | Share-Based Compensation The Company has granted share-based compensation awards to certain employees under several equity plans. The Company measures the cost of employee services received in exchange for an equity award, which include grants of employee stock options and restricted shares, based on the fair value of the award at the date of grant. Share-based compensation expense is recognized net of estimated forfeitures, determined based on historical experience. The Company recognizes share-based compensation expense over the requisite service period unless the awards are subject to performance conditions, in which case we recognize compensation expense over the requisite service period to the extent performance conditions are considered probable. The Company determines the grant date fair value of stock options using a Black-Scholes-Merton option pricing model (the “Black-Scholes Model”). The grant date fair value of restricted share awards (“RSAs”), restricted share units (“RSUs”) and performance-based awards are determined using the average of the high and low trading prices of our common stock on the date of grant, unless the awards are subject to market conditions, in which case we use a Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. |
Foreign Currency Translation, Policy [Policy Text Block] | Foreign Currency Translation Substantially all of the Company’s foreign operations are in Canada where the functional currency is the Canadian dollar. Financial statements of foreign subsidiaries are prepared in their functional currency and then translated into U.S. dollars. Assets and liabilities are translated at the exchange rate as of the balance sheet date and revenues, costs and expenses are translated at a monthly average exchange rate. Net gains or losses resulting from the translation are recorded to the “Foreign currency translation adjustment” component of “ Accumulated other comprehensive loss .” Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in “General and administrative.” |
Income Taxes, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under the asset and liability method. A deferred tax asset or liability is recognized whenever there are (1) future tax effects from temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (2) operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the years in which those differences are expected to be recovered or settled. Deferred tax assets are recognized to the extent the Company believes these assets will more likely than not be realized. In evaluating the realizability of deferred tax assets, the Company considers all available positive and negative evidence, including the interaction and the timing of future reversals of existing temporary differences, projected future taxable income, recent operating results and tax-planning strategies. When considered necessary, a valuation allowance is recorded to reduce the carrying amount of the deferred tax assets to their anticipated realizable value. The Company records uncertain tax positions on the basis of a two-step process whereby we first determine if it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is then measured for purposes of financial statement recognition as the largest amount of benefit that is greater than 50% likely of being realized upon being effectively settled. Interest accrued for uncertain tax positions is charged to “Interest expense.” Penalties accrued for uncertain tax positions are charged to “General and administrative.” |
Revenue Recognition, Multiple-deliverable Arrangements[Policy Text Block] | Restaurant Dispositions In connection with the sale of Company-operated restaurants to franchisees, the Company typically enters into several agreements, in addition to an asset purchase agreement, with franchisees including franchise, development, relationship and lease agreements. See “Franchised Restaurants” in Item 1 herein, for further information regarding these agreements. The Company typically sells restaurants’ cash, inventory and equipment and retains ownership or the leasehold interest to the real estate to lease and/or sublease to the franchisee. The Company has determined that its restaurant dispositions usually represent multiple-element arrangements, and as such, the cash consideration received is allocated to the separate elements based on their relative selling price. Cash consideration generally includes up-front consideration for the sale of the restaurants, technical assistance fees and development fees and future cash consideration for royalties and lease payments. The Company considers the future lease payments in allocating the initial cash consideration received. The Company obtains third-party evidence to estimate the relative selling price of the stated rent under the lease and/or sublease agreements which is primarily based upon comparable market rents. Based on the Company’s review of the third-party evidence, the Company records favorable or unfavorable lease assets/liabilities with a corresponding offset to the gain or loss on the sale of the restaurants. The cash consideration per restaurant for technical assistance fees and development fees is consistent with the amounts stated in the related franchise agreements which are charged for separate standalone arrangements. Therefore, the Company recognizes the technical assistance and development fees when earned. Future royalty income is also recognized in revenue as earned. See “Revenue Recognition” below for further information. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition “Sales” includes revenues recognized upon delivery of food to the customer at Company-operated restaurants. “Sales” excludes taxes collected from the Company’s customers. “Franchise royalty revenue and fees” includes royalties and franchise fees. Royalties from franchised restaurants are based on a percentage of net sales of the franchised restaurant and are recognized as earned. Initial franchise fees and development fees are recorded as deferred income when received and are recognized as revenue when a franchised restaurant is opened as all material services and conditions related to the franchise fee have been substantially performed upon the restaurant opening. Initial franchise fees received in connection with sales of Company-operated restaurants to franchisees and facilitating franchisee-to-franchisee restaurant transfers as well as renewal franchise fees are recognized as revenue when the license agreements are signed and the fee is paid since there are no remaining material services and conditions related to the franchise fees. Franchise fee deposits are forfeited and recognized as revenue upon the termination of the related commitments to open new franchised restaurants. “Franchise rental income” includes rental income from properties owned and leased by the Company and leased or subleased to franchisees. Rental income is recognized on a straight-line basis over the respective operating lease terms. Favorable and unfavorable lease amounts related to the leased and/or subleased properties are amortized to rental income on a straight-line basis over the remaining term of the leases. See “Leases” below for further information on rental income and favorable and unfavorable lease amounts. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of sales includes food and paper, restaurant labor and occupancy, advertising and other operating costs. Cost of sales excludes depreciation and amortization expense. |
Vendor Incentives, Policy [Policy Text Block] | Vendor Incentives The Company receives incentives from certain vendors. These incentives are recognized as earned and are classified as a reduction of “Cost of sales.” |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs The Company incurs various advertising costs, including contributions to certain advertising cooperatives based upon a percentage of net sales by Company-operated restaurants. All advertising costs are expensed as incurred, with the exception of media development costs that are expensed beginning in the month that the advertisement is first communicated, and are included in “Cost of sales.” |
Franchise support and other costs [Policy Text Block] | Franchise Support and Other Costs The Company incurs costs to provide direct support services to our franchisees, as well as certain other direct and incremental costs to the Company’s franchise operations. These costs primarily relate to franchise development services, system meetings, the provision for doubtful accounts and internal costs associated with our system optimization initiative, which are charged to “General and administrative,” and customer care and help desk support services, which are charged to “Other operating income, net,” as incurred. |
Self-insurance, Policy [Policy Text Block] | Self-Insurance The Company is self-insured for most workers’ compensation losses and health care claims and purchases insurance for general liability and automotive liability losses, all subject to a $500 per occurrence retention or deductible limit. The Company provides for their estimated cost to settle both known claims and claims incurred but not yet reported. Liabilities associated with these claims are estimated, in part, by considering the frequency and severity of historical claims, both specific to us, as well as industry-wide loss experience and other actuarial assumptions. We determine our insurance obligations with the assistance of actuarial firms. Since there are many estimates and assumptions involved in recording insurance liabilities and in the case of workers’ compensation a significant period of time elapses before the ultimate resolution of claims, differences between actual future events and prior estimates and assumptions could result in adjustments to these liabilities. |
Leases, Policy [Policy Text Block] | Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns and leases sites from third parties, which it leases and/or subleases to franchisees. At inception, each lease or sublease is evaluated to determine whether the lease will be accounted for as an operating or capital lease, including the determination of direct financing leases based on its terms. Capital lease assets and related obligations are recorded at the lower of the present value of future minimum lease payments or fair market value at lease inception. When determining the lease term, we include option periods for which failure to renew the lease imposes a significant economic detriment. For properties used for Company-operated restaurants, the primary economic detriment relates to the existence of unamortized leasehold improvements which might be impaired if we choose not to exercise the available renewal options. The lease term for properties leased or subleased to franchisees, is determined based upon the economic detriment to the franchisee and includes consideration of the length of the franchise agreement, historical performance of the restaurant and the existence of bargain renewal options. For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense or income, as applicable, on a straight line basis (“Straight-Line Rent”) over the applicable lease terms. Lease terms are generally initially between 15 and 20 years and, in most cases, provide for rent escalations and renewal options. The term used for Straight-Line Rent is calculated initially from the date of possession of the leased premises through the expected lease termination date. We recognize rent expense or income, as applicable, from the possession date to the restaurant opening date. There is a period under certain lease agreements referred to as a rent holiday (“Rent Holiday”) that generally begins on the possession date and ends on the rent commencement date. During a Rent Holiday, no cash rent payments are typically due under the terms of the lease; however, expense or income, as applicable, is recorded for that period on a straight-line basis. For leases that contain rent escalations, we record the rent payable or receivable, as applicable, during the lease term, as determined above, on the straight-line basis over the term of the lease (including the Rent Holiday beginning upon possession of the premises), and record the excess of the Straight-Line Rent over the minimum rents paid or received as a deferred lease liability or asset which is included in “Other liabilities” or “Other assets,” as applicable. Certain leases contain provisions, referred to as contingent rent (“Contingent Rent”), that require additional rental payments based upon restaurant sales volume. Contingent Rent is recognized each period as the liability is incurred or the asset is earned. For direct financing leases, the Company records its investment in properties leased to franchisees on a net basis, which is comprised of its gross investment less unearned income. The current and long-term portions of our net investment in direct financing leases are included in “ Accounts and notes receivable, net ” and “ Other assets ,” respectively. Unearned income is recognized as interest income over the lease term and is included in “Interest expense.” Favorable and unfavorable lease amounts are recorded as components of “Other intangible assets” and “Other liabilities,” respectively. Favorable and unfavorable lease amounts are amortized on a straight-line basis over the term of the leases. When the expected term of a lease is determined to be shorter than the original amortization period, the favorable or unfavorable lease balance associated with the lease is adjusted to reflect the revised lease term. Rental expense, rental income and favorable and unfavorable lease amortization is recognized in the consolidated statements of operations based on the nature of the underlying lease. Amounts related to leases for Company-operated restaurants are recorded to “Cost of sales.” Rental expense, including any related amortization, for leased properties that are subsequently subleased to franchisees is recorded to “Franchise rental expense.” Rental income, including any related amortization, for properties leased or subleased to franchisees is recorded to “Franchise rental income.” Amounts related to leases for corporate offices and equipment are recorded to “General and administrative.” Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not limited to, property values, market rents, property lives, discount rates and probable term, all of which can impact (1) the classification and accounting for a lease or sublease as operating or capital, including direct financing, (2) the Rent Holiday and escalations in payment that are taken into consideration when calculating Straight-Line Rent, (3) the term over which leasehold improvements for each restaurant are amortized and (4) the values and lives of favorable and unfavorable leases. The amount of depreciation and amortization, interest and rent expense and income reported would vary if different estimates and assumptions were used. |
Concentration of Risk, Policy [Text Block] | Concentration of Risk Wendy’s had no customers which accounted for 10% or more of consolidated revenues in 2016 , 2015 or 2014 . As of January 1, 2017 , Wendy’s had one main in-line distributor of food, packaging and beverage products, excluding produce and breads, that serviced approximately 49% of its Company-operated and franchised restaurants and four additional in-line distributors that, in the aggregate, serviced approximately 47% of its Company-operated and franchised restaurants. We believe that our vulnerability to risk concentrations related to significant vendors and sources of its raw materials is mitigated as we believe that there are other vendors who would be able to service our requirements. However, if a disruption of service from any of our main in-line distributors was to occur, we could experience short-term increases in our costs while distribution channels were adjusted. Wendy’s restaurants are principally located throughout the U.S. and to a lesser extent, in 30 foreign countries and U.S. territories with the largest number in Canada. Wendy’s restaurants are located in 50 states and the District of Columbia, with the largest number in Florida, Texas, Ohio, Georgia, California, Pennsylvania, Michigan and North Carolina. Because our restaurant operations are generally located throughout the U.S. and to a much lesser extent, Canada and other foreign countries and U. S. territories, we believe the risk of geographic concentration is not significant. We could be adversely affected by changing consumer preferences resulting from concerns over nutritional or safety aspects of beef, poultry, french fries or other products we sell or the effects of food safety events or disease outbreaks. Our exposure to foreign exchange risk is primarily related to fluctuations in the Canadian dollar relative to the U.S. dollar for our Canadian operations. However, our exposure to Canadian dollar foreign currency risk is mitigated by the fact that less than 10% of Wendy’s restaurants are in Canada. The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees for royalties, franchise fees and rent. In addition, we have notes receivable from certain of our franchisees. The financial condition of these franchisees is largely dependent upon the underlying business trends of the Wendy’s brand and market conditions within the quick-service restaurant industry. This concentration of credit risk is mitigated, in part, by the number of franchisees and the short-term nature of the franchise receivables. |
New Accounting Standards and New Accounting Standards Adopted, Policy [Policy Text Block] | New Accounting Standards Adopted In September 2015, the Financial Accounting Standards Board (“FASB”) issued an amendment that requires an acquirer to recognize adjustments to provisional amounts during the measurement period, in the period such adjustments are identified, rather than retrospectively adjusting previously reported amounts. The Company adopted this amendment, prospectively, during the first quarter of 2016. The adoption of this guidance did not impact 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 Company adopted this amendment, prospectively, during the first quarter of 2016. The adoption of this guidance did not materially impact our consolidated financial statements. In February 2015, the FASB issued an amendment that revises the consolidation requirements and significantly changes the consolidation analysis required under current guidance. The Company adopted this amendment during the first quarter of 2016. The adoption of this guidance did not impact our consolidated financial statements. In June 2014, the FASB issued an amendment to clarify that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition and therefore should not be reflected in estimating the grant-date fair value of the award. The Company adopted this amendment during the first quarter of 2016. The adoption of this guidance did not impact our consolidated financial statements. New Accounting Standards In January 2017, the FASB issued an amendment that simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. The Company does not expect the amendment, which requires prospective adoption and is effective commencing with our 2020 fiscal year, to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an amendment that clarifies the definition of a business in determining whether to account for a transaction as an asset acquisition or a business combination. The Company does not expect the amendment, which is effective commencing with our 2018 fiscal year, to have a material impact on our consolidated financial statements. In November 2016, the FASB issued an amendment that clarifies guidance for proper classification and presentation of restricted cash in the statement of cash flows. The amendment requires retrospective adoption for all periods presented in the statement of cash flows and is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In August 2016, the FASB issued an amendment that provides guidance for proper classification of certain cash receipts and payments in the statement of cash flows. The amendment requires retrospective adoption for all periods presented in the statement of cash flows and is effective commencing with our 2018 fiscal year. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In June 2016, the FASB issued an amendment that will require the Company to determine impairment of financial instruments based on expected losses rather than incurred losses. The transition method varies with the type of instrument; however, most debt instruments will be transitioned using a modified retrospective approach. The amendment is effective commencing with our 2020 fiscal year. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In March 2016, the FASB issued an amendment that modifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as statement of cash flows presentation. The transition requirement is generally modified retrospective, with the exception of recognition of excess tax benefits and tax deficiencies that requires prospective adoption. The amendment is effective commencing with our 2017 fiscal year. During our 2016, 2015 and 2014 fiscal years, $3,257 , $46,718 and $8,546 , respectively, of excess tax benefits and tax deficiencies were recorded to additional paid-in capital that would have been recorded as a reduction to the provision for income taxes (or as an increase to retained earnings as a cumulative adjustment to the extent the amounts represent unrecognized benefits of prior years) if this new guidance had been adopted as of the respective dates. The cash flows used in financing activities related to the excess tax benefits from share-based compensation arrangements, which amounted to $3,082 , $49,613 and $9,363 during our 2016, 2015 and 2014 fiscal years, respectively, will be reclassified retrospectively to cash flows provided by operating activities. Additionally, during our 2016, 2015 and 2014 fiscal years, $8,354 , $19,209 and $8,680 , respectively, was paid to taxing authorities for withheld shares on share-based compensation arrangement activities, which will be reclassified retrospectively from cash flows provided by operating activities to cash flows used in financing activities. Upon adoption of the amendment, the Company will recognize the remaining $1,880 unrecognized tax benefit for deductions in excess of cumulative compensation costs relating to the exercise of stock options and vesting of restricted stock. This tax benefit will be recognized in the first quarter of 2017 as a reduction to the Company’s deferred tax liability with an equal offsetting increase to “Accumulated deficit.” The Company will continue to estimate forfeitures each period. In March 2016, the FASB issued an amendment that clarifies the steps for assessing triggering events of embedded contingent put and call options within debt instruments. The Company does not expect the amendment, which is effective commencing with our 2017 fiscal year, to have a material impact on our consolidated financial statements. In March 2016, the FASB issued an amendment related to equity method accounting, which eliminates the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in level of ownership interest or degree of influence. The Company does not expect the amendment, which is effective commencing with our 2017 fiscal year, to have a material impact on our consolidated financial statements. In March 2016, the FASB issued an amendment that provides guidance on extinguishing financial liabilities for certain prepaid stored-value products. The Company does not expect the amendment, which is effective commencing with our 2018 fiscal year, to have a material impact on the restricted assets and liabilities related to the Company’s national advertising fund. In February 2016, the FASB issued new guidance on leases, which outlines principles for the recognition, measurement, presentation and disclosure of leases applicable to both lessors and lessees. The new guidance requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment requires the recognition and measurement of leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements and plan to reflect adoption when effective in the first quarter of our 2019 fiscal year. As shown in Note 20 , there are $1,258,065 in future minimum rental payments for operating leases that are not currently on our balance sheet; therefore, we expect this will have a material impact on our balance sheet and related disclosures. In January 2016, the FASB issued an amendment that revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The amendment is 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 July 2015, the FASB issued an amendment that requires entities to measure inventory at the lower of cost and net realizable value, rather than the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. The Company does not expect the amendment, which is effective commencing with our 2017 fiscal year, to have a material impact on our consolidated financial statements. In May 2014, the FASB issued amended guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is now effective commencing with our 2018 fiscal year. The guidance allows for either a full retrospective or modified retrospective transition method. We are continuing to evaluate which transition method to use. This guidance will not impact our recognition of revenue from Company-operated restaurant sales or our recognition of continuing royalty revenues from franchisees, which are based on a percentage of franchise sales. We anticipate deferring the initial fees from franchisees over the life of the related franchise agreements and we expect to consolidate the operations and cash flow results of our national advertising funds, both of which will have a material impact on our consolidated financial statements. |
System Optimization Gains, Net
System Optimization Gains, Net (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Year End January 1, 2017 January 3, 2016 Owned: Land $ 381,305 $ 379,982 Buildings and improvements 504,730 508,186 Office, restaurant and transportation equipment 234,275 308,274 Leasehold improvements 371,954 371,734 Leased: Capital leases (a) 115,541 65,873 1,607,805 1,634,049 Accumulated depreciation and amortization (b) (415,466 ) (406,105 ) $ 1,192,339 $ 1,227,944 _______________ (a) These assets principally include buildings and improvements. (b) Includes $13,705 and $9,827 of accumulated amortization related to capital leases at January 1, 2017 and January 3, 2016 , respectively. |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Assets Held for Sale January 1, January 3, 2016 Number of restaurants classified as held for sale — 99 Net restaurant assets held for sale (a) $ — $ 50,262 Other assets held for sale (a) $ 4,800 $ 7,124 _______________ (a) As of January 3, 2016 , net restaurant assets held for sale included Company-operated restaurants and consisted 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 .” |
System Optimization [Member] | |
Property, Plant and Equipment [Line Items] | |
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: Year Ended 2016 2015 2014 (a) Number of restaurants sold to franchisees 310 327 237 Proceeds from sales of restaurants $ 251,446 $ 193,860 $ 128,292 Net assets sold (b) (115,052 ) (86,493 ) (53,043 ) Goodwill related to sales of restaurants (c) (41,561 ) (29,970 ) (18,032 ) Net (unfavorable) favorable leases (d) (24,592 ) (846 ) 34,335 Other (e) (3,103 ) (5,499 ) (5,692 ) 67,138 71,052 85,860 Post-closing adjustments on sales of restaurants (f) (1,411 ) 1,285 (1,280 ) Gain on sales of restaurants, net 65,727 72,337 84,580 Gain on sales of other assets, net (g) 6,204 1,672 5,089 System optimization gains, net $ 71,931 $ 74,009 $ 89,669 _______________ (a) In addition, during 2014 Wendy’s acquired and immediately sold 18 restaurants to a franchisee for cash proceeds of $15,779 and recognized a gain on sale of $1,841 . No goodwill was recognized on this acquisition and as a result no goodwill was allocated to the sale. See Note 3 for further details. (b) Net assets sold consisted primarily of equipment. (c) Goodwill disposed of as a result of the sale of Company-operated restaurants during 2016 included goodwill of $11,429 that had been reclassified to assets held for sale during 2015. Goodwill disposed of during 2015 included goodwill of $8,457 that had been reclassified to assets held for sale during 2014. See Note 9 for further information. (d) During 2016 , 2015 and 2014 , the Company recorded favorable lease assets of $7,612 , $34,437 and $63,120 , respectively, and unfavorable lease liabilities of $32,204 , $35,283 and $28,785 , respectively, as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. (e) 2015 includes a deferred gain of $4,568 on the sale of 17 restaurants to franchisees during 2015 as a result of certain contingencies related to the extension of lease terms. 2014 includes a deferred gain of $1,995 ( C$2,300 ) on the sale of eight Canadian restaurants to a franchisee as a result of Wendy’s providing a guarantee to a lender on behalf of the franchisee. See Note 21 for further information on the guarantee. (f) 2015 includes the recognition of a gain on sale of $4,492 related to the repayment of notes receivable from franchisees in connection with sales of restaurants in 2014. (g) During 2016 , 2015 and 2014 , Wendy’s received cash proceeds of $10,727 , $10,478 and $17,263 , respectively, primarily from the sale of surplus properties as well as from the sale of a Company-operated aircraft during 2014. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The table below presents the allocation of the total purchase price to the fair value of assets acquired and liabilities assumed for restaurants acquired from franchisees: Year Ended 2016 2015 2014 Restaurants acquired from franchisees 2 4 27 Total consideration paid, net of cash received $ 2,209 $ 1,232 $ 27,630 Identifiable assets acquired and liabilities assumed: Properties 2,218 1,303 9,498 Acquired franchise rights — 760 6,650 Other assets 9 — 941 Capital leases obligations — (438 ) — Unfavorable leases — (440 ) — Other liabilities (18 ) (80 ) (565 ) Total identifiable net assets 2,209 1,105 16,524 — 127 11,106 Gain on acquisition of restaurants (a) — — 349 Post-closing adjustments (b) — (1,535 ) — Goodwill $ — $ (1,408 ) $ 11,455 _______________ (a) The fair value of the assets acquired in connection with the acquisition of three franchised restaurants during 2014 exceeded the total consideration resulting in a gain, which was included in “ Other operating income, net .” (b) Post-closing adjustments in 2015 primarily represent an adjustment to the fair value of franchise rights acquired in connection with the acquisition of franchised restaurants during 2014. |
Reorganization and Reorganiza38
Reorganization and Reorganization Costs (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
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:” Year Ended 2016 2015 2014 G&A realignment $ 692 $ 10,342 $ 12,926 System optimization initiative 9,391 11,568 18,977 Reorganization and realignment costs $ 10,083 $ 21,910 $ 31,903 |
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: Year Ended Total 2016 2015 2014 Severance and related employee costs (a) $ (344 ) $ 3,011 $ 11,917 $ 14,584 Recruitment and relocation costs 992 1,658 209 2,859 Other 44 49 88 181 692 4,718 12,214 17,624 Share-based compensation (b) — 5,624 712 6,336 Total G&A realignment $ 692 $ 10,342 $ 12,926 $ 23,960 _______________ (a) 2016 includes a reversal of an accrual of $387 as a result of a change in estimate. (b) 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 tables below present 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 January 3, 2016 Charges Payments Balance January 1, 2017 Severance and related employee costs $ 3,431 $ (344 ) $ (2,855 ) $ 232 Recruitment and relocation costs 144 992 (1,136 ) — Other — 44 (44 ) — $ 3,575 $ 692 $ (4,035 ) $ 232 Balance December 28, 2014 Charges Payments Balance January 3, 2016 Severance and related employee costs $ 11,609 $ 3,011 $ (11,189 ) $ 3,431 Recruitment and relocation costs 149 1,658 (1,663 ) 144 Other 5 49 (54 ) — $ 11,763 $ 4,718 $ (12,906 ) $ 3,575 |
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: Year Ended Total Incurred Since Inception 2016 2015 2014 Severance and related employee costs $ 82 $ 894 $ 7,608 $ 18,234 Professional fees 7,437 3,360 3,424 16,610 Other 272 930 3,678 5,743 7,791 5,184 14,710 40,587 Accelerated depreciation and amortization (a) 1,600 6,384 507 25,398 Share-based compensation (b) — — 3,760 5,013 Total system optimization initiative $ 9,391 $ 11,568 $ 18,977 $ 70,998 _______________ (a) Primarily includes accelerated amortization of previously acquired franchise rights related to Company-operated restaurants in territories that have been sold in connection with our system optimization initiative. (b) 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 tables below present a rollforward of our accrual for our system optimization initiative, which is included in “Accrued expenses and other current liabilities.” Balance January 3, 2016 Charges Payments Balance January 1, 2017 Severance and related employee costs $ 77 $ 82 $ (159 ) $ — Professional fees 708 7,437 (8,044 ) 101 Other 90 272 (362 ) — $ 875 $ 7,791 $ (8,565 ) $ 101 Balance December 28, 2014 Charges Payments Balance January 3, 2016 Severance and related employee costs $ 2,235 $ 894 $ (3,052 ) $ 77 Professional fees 146 3,360 (2,798 ) 708 Other 423 930 (1,263 ) 90 $ 2,804 $ 5,184 $ (7,113 ) $ 875 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of income (loss) amounts attributable to parent used to calculate basic and diluted income (loss) per share | Income amounts used to calculate basic and diluted income per share were as follows: Year Ended 2016 2015 2014 Income from continuing operations $ 129,624 $ 139,979 $ 116,424 Net income from discontinued operations — 21,163 5,010 Net income $ 129,624 $ 161,142 $ 121,434 |
Number of shares used to calculate basic and diluted income per share | The weighted average number of shares used to calculate basic and diluted income per share were as follows: Year Ended 2016 2015 2014 Common stock: Weighted average basic shares outstanding 262,209 323,018 370,160 Dilutive effect of stock options and restricted shares 4,503 5,707 6,022 Weighted average diluted shares outstanding 266,712 328,725 376,182 |
Cash and Receivables (Tables)
Cash and Receivables (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Cash and Receivables [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | Year End January 1, 2017 January 3, 2016 Cash and cash equivalents Cash $ 192,905 $ 281,877 Cash equivalents 5,335 45,339 $ 198,240 $ 327,216 Restricted cash Current Accounts held by trustee for the securitized financing facility $ 29,096 $ 29,327 Accounts held by trustee for reinvestment in capital assets 22,014 — Collateral supporting letters of credit 6,165 13,210 Trust for termination costs for former Wendy’s executives 168 168 Other 169 164 $ 57,612 $ 42,869 Non-current (a) Trust for termination costs for former Wendy’s executives $ 738 $ 1,191 _______________ (a) Included in “Other assets.” |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Year End January 1, 2017 January 3, 2016 Accounts and Notes Receivable, Net Current Accounts receivable: Franchisees $ 74,134 $ 71,158 Other (a) 25,732 34,828 99,866 105,986 Notes receivable from franchisees (b) (c) 2,989 2,356 102,855 108,342 Allowance for doubtful accounts (4,030 ) (3,488 ) $ 98,825 $ 104,854 Non-Current (d) Notes receivable from franchisees (b) $ 9,290 $ 5,158 Allowance for doubtful accounts (26 ) (257 ) $ 9,264 $ 4,901 _______________ (a) Includes income tax refund receivables of $18,111 and $23,508 as of January 1, 2017 and January 3, 2016 , respectively. (b) Non-current notes receivable include a note receivable from the Brazil JV of $6,810 and $1,700 as of January 1, 2017 and January 3, 2016 , respectively. See Note 7 for further information. Non-current notes receivable also include a note receivable from a franchisee in Indonesia of $2,454 as of January 1, 2017 . 2015 includes notes receivable from franchisees received in connection with the sale of Company-operated restaurants during 2014, of which $83 was included in current notes receivable and $331 was included in non-current notes receivable. During 2016, the notes receivable were paid in full. See Note 2 for further information. 2015 also includes a note receivable from a franchisee in connection with the termination of our investment in a joint venture in Japan, of which $701 was included in current notes receivable and $2,212 was included in non-current notes receivable. During 2016, the note receivable was paid in full. (c) Includes the current portion of direct financing lease receivables of $101 and $25 as of January 1, 2017 and January 3, 2016 , respectively. See Note 20 for further information. (d) Included in “Other assets.” |
Allowance for Doubtful Accounts [Table Text Block] | The following is an analysis of the allowance for doubtful accounts: Year Ended 2016 2015 2014 Balance at beginning of year: Current $ 3,488 $ 2,343 $ 3,310 Non-current 257 246 256 Provision for doubtful accounts: Franchisees and other 390 979 (925 ) Uncollectible accounts written off, net of recoveries (79 ) 177 (52 ) Balance at end of year: Current 4,030 3,488 2,343 Non-current 26 257 246 Total $ 4,056 $ 3,745 $ 2,589 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Cost and Equity Method Investments [Table Text Block] | The following is a summary of the carrying value of our investments: Year End January 1, January 3, Equity investments $ 54,545 $ 55,541 Cost investments 2,436 2,828 $ 56,981 $ 58,369 |
Schedule of Equity Method Investments [Table Text Block] | Presented below is activity related to our portion of TimWen and the Brazil JV included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended January 1, 2017 , January 3, 2016 and December 28, 2014 . Year Ended 2016 2015 2014 Balance at beginning of period $ 55,541 $ 69,790 $ 79,810 Investment 172 108 — Equity in earnings for the period 10,627 11,533 12,802 Amortization of purchase price adjustments (a) (2,276 ) (2,328 ) (2,626 ) 8,351 9,205 10,176 Distributions received (11,426 ) (12,451 ) (13,896 ) Foreign currency translation adjustment included in “Other comprehensive income (loss), net” 1,907 (11,111 ) (6,300 ) Balance at end of period $ 54,545 $ 55,541 $ 69,790 _______________ (a) Based upon an average original aggregate life of 21 years. |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties [Table Text Block] | Year End January 1, 2017 January 3, 2016 Owned: Land $ 381,305 $ 379,982 Buildings and improvements 504,730 508,186 Office, restaurant and transportation equipment 234,275 308,274 Leasehold improvements 371,954 371,734 Leased: Capital leases (a) 115,541 65,873 1,607,805 1,634,049 Accumulated depreciation and amortization (b) (415,466 ) (406,105 ) $ 1,192,339 $ 1,227,944 _______________ (a) These assets principally include buildings and improvements. (b) Includes $13,705 and $9,827 of accumulated amortization related to capital leases at January 1, 2017 and January 3, 2016 , respectively. |
Goodwill And Other Intangible43
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill activity for 2016 and 2015 was as follows: Year End January 1, 2017 January 3, 2016 Balance at beginning of year $ 770,781 $ 822,562 Sale of the Bakery — (12,067 ) Restaurant dispositions (30,132 ) (32,942 ) Restaurant acquisitions (a) — (1,408 ) Currency translation adjustment and other, net 761 (5,364 ) Balance at end of year $ 741,410 $ 770,781 _______________ (a) Restaurant acquisitions in 2015 primarily represents an adjustment to the fair value of franchise rights acquired in connection with the acquisition of franchised restaurants during 2014. See Note 3 for further information. |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets [Table Text Block] | The following is a summary of the components of other intangible assets and the related amortization expense: Year End January 1, 2017 January 3, 2016 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Indefinite-lived: Trademarks $ 903,000 $ — $ 903,000 $ 903,000 $ — $ 903,000 Definite-lived: Franchise agreements 348,403 (137,047 ) 211,356 347,970 (120,298 ) 227,672 Favorable leases 208,626 (57,440 ) 151,186 209,523 (50,750 ) 158,773 Reacquired rights under franchise agreements 1,690 (1,536 ) 154 8,753 (6,503 ) 2,250 Software 123,613 (66,778 ) 56,835 97,590 (49,698 ) 47,892 $ 1,585,332 $ (262,801 ) $ 1,322,531 $ 1,566,836 $ (227,249 ) $ 1,339,587 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Aggregate amortization expense: Actual for fiscal year (a): 2014 $ 42,274 2015 54,686 2016 48,824 Estimate for fiscal year: 2017 $ 44,977 2018 43,237 2019 38,988 2020 34,826 2021 29,770 Thereafter 227,733 _______________ (a) Includes impairment charges on other intangible assets of $3,288 , $3,656 and $3,610 during 2016 , 2015 and 2014 , respectively. See Note 16 for more information on impairment of our long-lived assets. Also includes accelerated amortization on previously acquired franchise rights in territories that will be or have been sold as a part of our system optimization initiative of $1,600 , $6,384 and $474 during 2016 , 2015 and 2014 , respectively. |
Accrued Expenses and Other Cu44
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Year End January 1, 2017 January 3, 2016 Accrued compensation and related benefits $ 47,214 $ 60,566 Accrued taxes 21,571 19,925 Other 33,249 43,913 $ 102,034 $ 124,404 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consisted of the following: Year End January 1, January 3, Series 2015-1 Class A-2 Notes: (a) Series 2015-1 Class A-2-I Notes $ 864,063 $ 872,813 Series 2015-1 Class A-2-II Notes 888,750 897,750 Series 2015-1 Class A-2-III Notes 493,750 498,750 7% debentures, due in 2025 (b) 88,277 87,057 Capital lease obligations, due through 2045 211,714 109,173 Unamortized debt issuance costs (34,272 ) (39,430 ) 2,512,282 2,426,113 Less amounts payable within one year (24,652 ) (23,290 ) Total long-term debt $ 2,487,630 $ 2,402,823 Aggregate annual maturities of long-term debt, excluding the effect of purchase accounting adjustments, as of January 1, 2017 were as follows: Fiscal Year 2017 $ 24,652 2018 25,318 2019 862,464 2020 16,482 2021 18,079 Thereafter 1,611,282 $ 2,558,277 _______________ (a) 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. During 2015, the Company borrowed and repaid $19,000 under the Series 2015-1 Class A-1 Notes. 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. 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 , seven and 10 years, respectively, from the date of issuance (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 January 1, 2017 and January 3, 2016, $26,552 and $23,002 of letters of credit were outstanding against the Series 2015-1 Class A-1 Notes, respectively, which relate primarily to interest reserves required under the Indenture. During 2016 and 2015 , the Company incurred debt issuance costs of $2,495 and $43,817 , respectively, 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 January 1, 2017, the effective interest rates, including the amortization of debt issuance costs, were 3.791% , 4.340% and 4.682% 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. There were no events of default under the documents governing the Series 2015-1 Senior Notes as of January 1, 2017 . 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 January 1, 2017 and January 3, 2016 , Wendy’s Funding had restricted cash of $29,096 and $29,327 , respectively, which primarily represents cash collections and cash reserves held by the trustee to be used for payments of principal, interest and commitment fees required for the Series 2015-1 Class A-2 Notes. 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 12 for more information on the interest rate swaps. As a result, the Company recorded a loss on early extinguishment of debt of $7,295 during the second quarter of 2015, primarily consisting of the write-off of deferred costs related to the 2013 Restated Credit Agreement of $7,233 and fees paid to terminate the related interest rate swaps of $62 . (b) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the Wendy’s merger based on their outstanding principal of $100,000 and an effective interest rate of 8.6% . The fair value adjustment is being accreted and the related charge included in “Interest expense” until the debentures mature. These debentures contain covenants that restrict the incurrence of indebtedness secured by liens and certain capitalized lease transactions. Wendy’s was in compliance with these covenants as of January 1, 2017 . |
Aggregate maturities of long-term debt [Table Text Block] | Aggregate annual maturities of long-term debt, excluding the effect of purchase accounting adjustments, as of January 1, 2017 were as follows: Fiscal Year 2017 $ 24,652 2018 25,318 2019 862,464 2020 16,482 2021 18,079 Thereafter 1,611,282 $ 2,558,277 |
Pledged Assets [Table Text Block] | The following is a summary of the Company’s assets pledged as collateral for certain debt: Year End January 1, Cash and cash equivalents $ 13,300 Accounts and notes receivable, net (including long-term) 48,644 Inventories 2,761 Properties 179,781 Other intangible assets 1,112,515 Restricted cash and other assets (including long-term) 51,211 $ 1,408,212 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
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: January 1, 2017 January 3, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 5,335 $ 5,335 $ 45,339 $ 45,339 Level 1 Non-current cost method investments (a) 2,436 326,283 2,828 249,870 Level 3 Financial liabilities Series 2015-1 Class A-2-I Notes (b) 864,063 857,349 872,813 849,106 Level 2 Series 2015-1 Class A-2-II Notes (b) 888,750 880,005 897,750 879,795 Level 2 Series 2015-1 Class A-2-III Notes (b) 493,750 474,543 498,750 484,648 Level 2 7% debentures, due in 2025 (b) 88,277 99,750 87,057 100,500 Level 2 Guarantees of franchisee loan obligations (c) 280 280 851 851 Level 3 _______________ (a) The fair value of our indirect investment in Arby’s is based on applying a multiple to Arby’s adjusted 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. See Note 7 for more information. 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) 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 2016 Total Losses January 1, Level 1 Level 2 Level 3 Held and used $ 5,462 $ — $ — $ 5,462 $ 15,928 Held for sale 1,552 — — 1,552 313 Total $ 7,014 $ — $ — $ 7,014 $ 16,241 Fair Value Measurements 2015 Total Losses January 3, Level 1 Level 2 Level 3 Held and used $ 10,244 $ — $ — $ 10,244 $ 22,346 Held for sale 4,328 — — 4,328 2,655 Total $ 14,572 $ — $ — $ 14,572 $ 25,001 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income from continuing operations before income taxes is set forth below: Year Ended 2016 2015 2014 Domestic $ 192,082 $ 208,827 $ 173,143 Foreign 9,608 25,301 19,397 $ 201,690 $ 234,128 $ 192,540 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The (provision for) benefit from income taxes from continuing operations is set forth below: Year Ended 2016 2015 2014 Current: U.S. Federal $ (75,167 ) $ (12,414 ) $ 6,673 State (5,805 ) 3,346 (7,863 ) Foreign (5,307 ) (10,778 ) (8,093 ) Current tax provision (86,279 ) (19,846 ) (9,283 ) Deferred: U.S. Federal 7,975 (53,916 ) (67,977 ) State 6,733 (21,375 ) 671 Foreign (495 ) 988 473 Deferred tax benefit (provision) 14,213 (74,303 ) (66,833 ) Income tax provision $ (72,066 ) $ (94,149 ) $ (76,116 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets (liabilities) are set forth below: Year End January 1, 2017 January 3, 2016 Deferred tax assets: Unfavorable leases $ 50,771 $ 40,084 Net operating loss and credit carryforwards 44,733 51,782 Accrued compensation and related benefits 31,994 35,963 Deferred rent 19,552 17,661 Accrued expenses and reserves 16,486 18,156 Other 9,293 9,157 Valuation allowances (11,400 ) (17,097 ) Total deferred tax assets 161,429 155,706 Deferred tax liabilities: Intangible assets (495,505 ) (499,467 ) Owned and leased fixed assets net of related obligations (89,251 ) (95,619 ) Other (23,186 ) (20,333 ) Total deferred tax liabilities (607,942 ) (615,419 ) $ (446,513 ) $ (459,713 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards [Table Text Block] | The amounts and expiration dates of net operating loss and tax credit carryforwards are as follows: Amount Expiration Tax credit carryforwards: U.S. federal foreign tax credits $ 18,911 2021-2024 State tax credits 457 2020-2023 Foreign tax credits of non-U.S. subsidiaries 2,770 2021-2025 Total $ 22,138 Net operating loss carryforwards: State net operating loss carryforwards $ 779,841 2017-2035 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of income tax computed at the U.S. Federal statutory rate to reported income tax is set forth below: Year Ended 2016 2015 2014 Income tax provision at the U.S. Federal statutory rate $ (70,592 ) $ (81,945 ) $ (67,389 ) State income tax provision, net of U.S. Federal income tax effect (3,767 ) (7,234 ) (4,747 ) Non-deductible goodwill (a) (6,409 ) (7,435 ) (9,389 ) Valuation allowances (b) 4,915 (6,075 ) (665 ) Foreign and U.S. tax effects of foreign operations 2,278 4,389 4,089 Non-deductible expenses and other 1,509 4,151 1,985 $ (72,066 ) $ (94,149 ) $ (76,116 ) _______________ (a) Substantially all of the goodwill included in the gain on sales of restaurants in 2016, 2015 and 2014 under our system optimization initiative was non-deductible for tax purposes. See Notes 2 and 9 for further information. Included in the 2016 amount is a $3,837 federal benefit related to the correction to a prior year identified and recorded in the second quarter of 2016. The corresponding state benefit correction of $398 is included in the state income tax provision amount above. (b) Includes changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of the utilization of deferred tax assets. 2016 and 2015 primarily relate to changes in the likelihood of the utilization of deferred tax assets related to state net operating loss carryforwards. Included in the 2016 amount is a $2,878 benefit related to the correction to a prior year identified and recorded in the first quarter of 2016. |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | As of January 1, 2017 , the Company had unrecognized tax benefits of $19,545 , which, if resolved favorably would reduce income tax expense by $14,752 . A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: Year End January 1, January 3, December 28, Beginning balance $ 21,224 $ 25,715 $ 23,897 Additions: Tax positions of current year 306 927 — Tax positions of prior years 440 476 2,678 Reductions: Tax positions of prior years (2,126 ) (5,182 ) (582 ) Settlements (42 ) (251 ) — Lapse of statute of limitations (257 ) (461 ) (278 ) Ending balance $ 19,545 $ 21,224 $ 25,715 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | There were 470,424 shares of common stock issued at the beginning and end of 2016 , 2015 and 2014 . Treasury stock activity for 2016 , 2015 and 2014 was as follows: Treasury Stock 2016 2015 2014 Number of shares at beginning of year 198,109 104,614 77,637 Repurchases of common stock 29,545 99,881 32,716 Common shares issued: Stock options, net (2,914 ) (5,043 ) (4,930 ) Restricted stock, net (796 ) (1,258 ) (732 ) Director fees (20 ) (21 ) (24 ) Other (74 ) (64 ) (53 ) Number of shares at end of year 223,850 198,109 104,614 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table provides a rollforward of the components of accumulated other comprehensive income (loss) attributable to The Wendy’s Company, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges (a) Pension Total Balance at December 29, 2013 $ (9,803 ) $ 744 $ (1,278 ) $ (10,337 ) Current-period other comprehensive (loss) income (18,560 ) (2,788 ) 391 (20,957 ) Balance at December 28, 2014 (28,363 ) (2,044 ) (887 ) (31,294 ) Current-period other comprehensive (loss) income (37,800 ) (1,527 ) (202 ) (39,529 ) Balance at January 3, 2016 (66,163 ) (3,571 ) (1,089 ) (70,823 ) Current-period other comprehensive income (loss) 5,864 1,774 (56 ) 7,582 Balance at January 1, 2017 $ (60,299 ) $ (1,797 ) $ (1,145 ) $ (63,241 ) _______________ (a) Current-period other comprehensive income (loss) includes the effect of changes in unrealized losses on cash flow hedges, net of tax, for 2015 and 2014, respectively. In addition, 2016 and 2015 include the reclassification of unrealized losses on cash flow hedges of $1,774 and $915 , respectively, from “Accumulated other comprehensive loss” to our consolidated statements of operations consisting of $2,894 and $1,487 , respectively, recorded to “Interest expense,” net of the related income tax benefit of $1,120 and $572 , respectively, recorded to “Provision for income taxes.” See Note 12 for more information. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option activity during 2016 : Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 3, 2016 16,841 $ 7.73 Granted 3,797 10.09 Exercised (3,218 ) 6.94 Forfeited and/or expired (723 ) 10.13 Outstanding at January 1, 2017 16,697 $ 8.31 7.6 $ 86,960 Vested or expected to vest at January 1, 2017 16,559 $ 8.30 7.6 $ 86,439 Exercisable at January 1, 2017 8,842 $ 7.07 6.4 $ 57,102 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | The weighted average grant date fair value of stock options was determined using the following assumptions: 2016 2015 2014 Risk-free interest rate 1.28 % 1.76 % 1.97 % Expected option life in years 5.62 5.62 6.35 Expected volatility 28.25 % 29.25 % 35.38 % Expected dividend yield 2.38 % 2.23 % 2.43 % |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes activity of Restricted Shares during 2016 : Number of Restricted Shares Weighted Average Grant Date Fair Value Non-vested at January 3, 2016 1,799 $ 8.32 Granted 726 10.33 Vested (616 ) 7.65 Forfeited (92 ) 8.95 Non-vested at January 1, 2017 1,817 $ 9.30 |
Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions [Table Text Block] | The input variables are noted in the table below: 2016 2015 Risk-free interest rate 0.82 % 1.00 % Expected life in years 3.00 3.00 Expected volatility 27.03 % 25.56 % Expected dividend yield (a) 0.00 % 0.00 % _______________ (a) The Monte Carlo method assumes a reinvestment of dividends. |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes activity of performance shares at Target during 2016 : Performance Condition Awards Market Condition Awards Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested at January 3, 2016 917 $ 9.23 104 $ 17.08 Granted 267 9.44 246 10.25 Dividend equivalent units issued (a) 18 — 7 — Vested (b) (385 ) 7.92 — — Forfeited (18 ) 10.03 (5 ) 17.08 Non-vested at January 1, 2017 799 $ 9.89 352 $ 12.17 _______________ (a) Dividend equivalent units are issued in lieu of cash dividends for non-vested performance shares. There is no weighted average fair value associated with dividend equivalent units. (b) Excludes the vesting of an additional 246 shares, which resulted from the performance of performance condition awards exceeding Target. |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Total share-based compensation and the related income tax benefit recognized in the Company’s consolidated statements of operations were as follows: Year Ended 2016 2015 2014 Stock options $ 6,859 $ 10,081 $ 13,692 Restricted Shares 5,051 4,834 4,495 Performance shares: Performance condition awards 4,681 888 7,456 Market condition awards 1,550 1,348 37 Modifications, net — 5,805 2,376 Share-based compensation (a) 18,141 22,956 28,056 Less: Income tax benefit (a) (6,520 ) (8,380 ) (10,357 ) Share-based compensation, net of income tax benefit $ 11,621 $ 14,576 $ 17,699 _______________ (a) Excludes $275 and $187 of pre-tax share-based compensation and $106 and $72 of related income tax benefits for 2015 and 2014, respectively, which are included in “ Net income from discontinued operations .” |
Impairment of Long-Lived Asse50
Impairment of Long-Lived Assets (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Impairment of long-lived assets [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Impairment of Long-Lived Assets [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 :” Year Ended 2016 2015 2014 Restaurants leased or subleased to franchisees $ 14,010 $ 19,214 $ 11,993 Company-operated restaurants 1,918 3,132 5,146 Surplus properties 313 2,655 2,474 $ 16,241 $ 25,001 $ 19,613 |
Investment Income, Net (Tables)
Investment Income, Net (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Investment Income, Net [Abstract] | |
Investment Income | Year Ended 2016 2015 2014 Distributions, including dividends (a) $ — $ 54,911 $ 184 Gain on sale of investments, net 497 335 975 Other than temporary loss on cost method investment — (3,150 ) — Other, net 226 118 40 $ 723 $ 52,214 $ 1,199 _______________ (a) During 2015, the Company received a dividend of $54,911 from our investment in Arby’s. See Note 7 for further information. |
Discontinued Operations (Tables
Discontinued Operations (Tables) - Bakery [Member] | 12 Months Ended |
Jan. 01, 2017 | |
Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of income from discontinued operations [Table Text Block] | The following table presents the Bakery’s results of operations and the gain on disposal, which have been included in discontinued operations: Year Ended 2015 2014 Revenues (a) $ 25,885 $ 62,561 Cost of sales (b) (7,543 ) (45,710 ) 18,342 16,851 General and administrative (1,093 ) (2,525 ) Depreciation and amortization (c) (2,297 ) (5,471 ) Other expense, net (d) (19 ) (126 ) Income from discontinued operations before income taxes 14,933 8,729 Provision for income taxes (4,439 ) (3,719 ) Income from discontinued operations, net of income taxes 10,494 5,010 Gain on disposal of discontinued operations before income taxes 25,529 — Provision for income taxes on gain on disposal (14,860 ) — Gain on disposal of discontinued operations, net of income taxes 10,669 — Net income from discontinued operations $ 21,163 $ 5,010 _______________ (a) Includes sales of sandwich buns and related products previously reported in “Sales” as well as rental income. (b) 2015 includes employee separation-related costs of $791 as a result of the sale of the Bakery. In addition, 2015 includes a reduction to cost of sales of $12,486 resulting from the reversal of a liability recorded during 2013 associated with the Bakery’s withdrawal from a multiemployer pension plan. See Note 19 for further discussion. (c) Included in “Depreciation and amortization” in our consolidated statements of cash flows for the periods presented. (d) Includes net gains on sales of other assets. During 2015 and 2014, the Bakery received cash proceeds of $50 and $52 , respectively, resulting in net gains on sales of other assets of $32 and $69 , respectively. |
Discontinued Operations, Disposed of by Sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of income from discontinued operations [Table Text Block] | The following table summarizes the gain on the disposal of the Bakery, which has been included in discontinued operations: Year Ended 2015 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 Post-closing adjustments on the sale of the Bakery (1,809 ) Gain on disposal of discontinued operations before income taxes 25,529 Provision for income taxes (e) (14,860 ) Gain on disposal of discontinued operations, net of income taxes $ 10,669 _______________ (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. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Leases [Abstract] | |
Schedule of Rent Expense [Table Text Block] | Rental expense for operating leases consists of the following components: Year Ended 2016 2015 2014 Rental expense: Minimum rentals $ 77,952 $ 77,606 $ 76,178 Contingent rentals 18,291 18,270 19,967 Total rental expense (a) $ 96,243 $ 95,876 $ 96,145 _______________ (a) Amounts exclude sublease income of $95,072 , $61,618 , and $46,743 recognized during 2016 , 2015 and 2014 , respectively. |
Schedule of Rent Income [Table Text Block] | Rental income for operating leases and subleases consists of the following components: Year Ended 2016 2015 2014 Rental income: Minimum rentals $ 123,171 $ 68,241 $ 50,249 Contingent rentals 19,944 18,731 17,745 Total rental income $ 143,115 $ 86,972 $ 67,994 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of January 1, 2017 . Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease. Rental Payments Rental Receipts Fiscal Year Capital Leases Operating Leases Capital Leases Operating Leases Owned Properties 2017 $ 25,749 $ 74,400 $ 34,841 $ 64,562 $ 52,840 2018 26,226 72,080 35,024 64,155 53,013 2019 25,235 71,825 35,120 64,391 53,980 2020 25,727 70,831 35,753 64,144 54,573 2021 27,104 70,490 37,180 64,226 56,362 Thereafter 418,349 898,439 572,645 849,766 996,857 Total minimum payments $ 548,390 $ 1,258,065 $ 750,563 $ 1,171,244 $ 1,267,625 Less interest (336,676 ) Present value of minimum capital lease payments (a) $ 211,714 _______________ (a) The present value of minimum capital lease payments of $1,902 and $209,812 are included in “Current portion of long-term debt” and “Long-term debt,” respectively. |
Schedule Of Property Subject to or Available for Operating Lease | Properties owned by the Company and leased to franchisees and other third parties under operating leases include: Year End January 1, 2017 January 3, 2016 Land $ 271,160 $ 165,667 Buildings and improvements 312,067 188,621 Office, restaurant and transportation equipment 1,507 1,162 584,734 355,450 Accumulated depreciation and amortization (110,166 ) (63,476 ) $ 474,568 $ 291,974 |
Schedule of Capital Leased Assets [Table Text Block] | Our net investment in direct financing leases is as follows: Year End January 1, 2017 January 3, 2016 Future minimum rental receipts $ 401,452 $ 200,213 Unearned interest income (277,747 ) (135,426 ) Net investment in direct financing leases 123,705 64,787 Net current investment in direct financing leases (a) (101 ) (25 ) Net non-current investment in direct financing leases (b) $ 123,604 $ 64,762 _______________ (a) Included in “Accounts and notes receivable, net.” (b) Included in “Other assets.” |
Transactions with Related Par54
Transactions with Related Parties (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions by Related Party | The following is a summary of transactions between the Company and its related parties, which are included in continuing operations: Year Ended 2016 2015 2014 Transactions with QSCC: Wendy’s Co-Op (a) $ (890 ) $ (1,265 ) $ (1,516 ) Lease income (b) (193 ) (185 ) (185 ) Use of Company-operated aircraft by the Management Company (c) $ — $ — $ (375 ) TimWen lease and management fee payments (d) $ 11,602 $ 11,843 $ 6,064 _______________ Transactions with QSCC (a) Wendy’s has a purchasing co-op relationship agreement (the “Wendy’s Co-op”) with its franchisees which establishes Quality Supply Chain Co-op, Inc. (“QSCC”). QSCC manages, for the Wendy’s system in the U.S. and Canada, contracts for the purchase and distribution of food, proprietary paper, operating supplies and equipment under national agreements with pricing based upon total system volume. QSCC’s supply chain management facilitates continuity of supply and provides consolidated purchasing efficiencies while monitoring and seeking to minimize possible obsolete inventory throughout the Wendy’s supply chain in the U.S. and Canada. Wendy’s and its franchisees pay sourcing fees to third-party vendors on certain products sourced by QSCC. Such sourcing fees are remitted by these vendors to QSCC and are the primary means of funding QSCC’s operations. Should QSCC’s sourcing fees exceed its expected needs, QSCC’s board of directors may return some or all of the excess to its members in the form of a patronage dividend. Wendy’s recorded its share of patronage dividends of $890 , $1,265 and $1,516 in 2016 , 2015 and 2014 , respectively, which are included as a reduction of “Cost of sales.” (b) Effective January 1, 2011 , Wendy’s leased 14,333 square feet of office space to QSCC for an annual base rental of $176 . The lease expired on December 31, 2016. A new lease agreement was signed effective January 1, 2017, expiring on December 31, 2020 for an annual base rental of $215 . The Wendy’s Company received $193 , $185 and $185 of lease income from QSCC during 2016 , 2015 and 2014 , respectively, which has been recorded as a reduction of “General and administrative.” Use of Company-operated aircraft by the Management Company (c) The Wendy’s Company, through a wholly-owned subsidiary, was party to a three -year aircraft management and lease agreement, which expired in March 2014, with CitationAir, a subsidiary of Cessna Aircraft Company, pursuant to which the Company leased a corporate aircraft to CitationAir to use as part of its Jet Card program fleet. During the first quarter of 2014, our Chairman, who was our former Chief Executive Officer, and our Vice Chairman, who was our former President and Chief Operating Officer (the “Former Executives”) and a director, who was our former Vice Chairman, and members of their immediate families, used their Jet Card agreements for business and personal travel on aircraft in the Jet Card program fleet. A management company formed by the Former Executives and a director (the “Management Company”) paid CitationAir directly, and the Company received credit from CitationAir for charges related to such travel of approximately $375 during 2014. TimWen lease and management fee payments (d) A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen for the operation of Wendy’s/Tim Hortons combo units in Canada. Prior to the second quarter of 2015, Wendy’s operated certain of the Wendy’s/Tim Hortons combo units in Canada and subleased some of the restaurant facilities to franchisees. As a result of the Company completing its plan to sell all of its Company-operated restaurants in Canada to franchisees during the second quarter of 2015, all of the restaurant facilities are subleased to franchisees. Wendy’s paid TimWen $11,806 , $12,059 and $6,313 under these lease agreements during 2016 , 2015 and 2014 , respectively. In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $204 , $216 and $249 during 2016 , 2015 and 2014 , respectively, which has been included as a reduction to “General and administrative.” |
Advertising Costs and Funds (Ta
Advertising Costs and Funds (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Restricted Assets and Liabilities [Member] | |
Restricted Assets and Liabilities | |
Schedule of Restricted Assets and Liabilities [Table Text Block] | Restricted assets and related liabilities of the Advertising Funds at January 1, 2017 and January 3, 2016 were as follows: Year End January 1, 2017 January 3, 2016 Cash and cash equivalents $ 19,359 $ 13,704 Accounts and notes receivable, net 49,983 50,231 Other assets 6,418 3,464 Total assets $ 75,760 $ 67,399 Accounts payable $ 8,362 $ 3,872 Accrued expenses and other current liabilities 71,068 64,603 Member’s deficit (3,670 ) (1,076 ) Total liabilities and deficit $ 75,760 $ 67,399 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information [Table Text Block] | The table below presents revenues and properties information by geographic area: U.S. Canada Other International Total 2016 Revenues $ 1,373,345 $ 45,959 $ 16,114 $ 1,435,418 Properties 1,162,006 30,257 76 1,192,339 2015 Revenues $ 1,749,131 $ 104,003 $ 17,163 $ 1,870,297 Properties 1,198,553 29,296 95 1,227,944 2014 Revenues $ 1,734,164 $ 247,792 $ 16,546 $ 1,998,502 Properties 1,202,545 38,538 87 1,241,170 |
Quarterly Financial Informati57
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) [Table Text Block] | The tables below set forth summary unaudited consolidated quarterly financial information for 2016 and 2015 . The Company reports on a fiscal year typically consisting of 52 or 53 weeks ending on the Sunday closest to December 31. All of the Company’s fiscal quarters in 2016 contained 13 weeks. During 2015, the Company’s first, second and third fiscal quarters contained 13 weeks and the Company’s fourth quarter contained 14 weeks. 2016 Quarter Ended (a) April 3 July 3 October 2 January 1 Revenues $ 378,787 $ 382,718 $ 364,012 $ 309,901 Cost of sales 214,736 202,554 186,546 140,865 Operating profit 63,829 65,648 106,088 79,215 Net income $ 25,363 $ 26,480 $ 48,890 $ 28,891 Basic income per share $ .09 $ .10 $ .19 $ .11 Diluted income per share $ .09 $ .10 $ .18 $ .11 2015 Quarter Ended (b) March 29 June 28 September 27 January 3 Revenues $ 451,769 $ 489,534 $ 464,629 $ 464,365 Cost of sales 305,111 315,122 291,524 272,316 Operating profit 37,911 64,308 55,939 116,312 Income from continuing operations 18,150 24,825 8,323 88,681 Net income (loss) from discontinued operations 9,357 15,370 (739 ) (2,825 ) Net income $ 27,507 $ 40,195 $ 7,584 $ 85,856 Basic income (loss) per share: Continuing operations $ .05 $ .07 $ .03 $ .32 Discontinued operations .03 .04 — (.01 ) Net income $ .08 $ .11 $ .03 $ .31 Diluted income (loss) per share: Continuing operations $ .05 $ .07 $ .03 $ .32 Discontinued operations .03 .04 — (.01 ) Net income $ .07 $ .11 $ .03 $ .31 _______________ (a) The Company’s consolidated statements of operations in fiscal 2016 were materially impacted by system optimization gains, net, reorganization and realignment costs, impairment of long-lived assets and a gain recognized on a lease buyout. The pre-tax impact of system optimization gains, net for the first, third and fourth quarters was $8,426 , $37,756 and $23,825 , respectively (see Note 2 for additional information). The pre-tax impact of reorganization and realignment costs for the first, second, third and fourth quarters was $3,250 , $2,487 , $2,129 and $2,217 , respectively (see Note 4 for additional information). The pre-tax impact of impairment of long-lived assets during the first, second and fourth quarters was $7,105 , $5,525 and $3,250 , respectively (see Note 16 for additional information). The pre-tax impact of a gain recognized on a lease buyout during the first quarter was $11,606 . (b) The Company’s consolidated statements of operations in fiscal 2015 were materially impacted by system optimization gains, net, reorganization and realignment costs, impairment of long-lived assets and loss on early extinguishment of debt. The pre-tax impact of system optimization gains, net for the second and fourth quarters was $15,654 and $59,258 , respectively (see Note 2 for additional information). The pre-tax impact of reorganization and realignment costs for the first, second, third and fourth quarters was $4,613 , $6,279 , $5,754 and $5,264 , respectively (see Note 4 for additional information). The pre-tax impact of impairment of long-lived assets during the second and fourth quarters was $10,018 and $11,533 , respectively (see Note 16 for additional information). The pre-tax impact of loss on early extinguishment of debt during the second quarter was $7,295 (see Note 11 for additional information). Additionally, the Company’s consolidated statements of operations were materially affected during the fourth quarter by a $54,911 dividend from our investment in Arby’s, which was recognized in investment income, net (see Note 17 for additional information). |
Summary of Significant Accoun58
Summary of Significant Accounting Policies Corporate Structure (Details) | Jan. 01, 2017Restaurantcountries |
Franchisor Disclosure [Line Items] | |
Number of Restaurants | 6,537 |
Entity Operated Units [Member] | |
Franchisor Disclosure [Line Items] | |
Number of Restaurants | 330 |
Franchised Units [Member] | |
Franchisor Disclosure [Line Items] | |
Number of Restaurants | 6,207 |
Other International | Franchised Units [Member] | |
Franchisor Disclosure [Line Items] | |
Number of Countries Entity Operates | countries | 29 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies Principles of Consolidation (Details) | 12 Months Ended |
Jan. 01, 2017funds | |
Accounting Policies [Abstract] | |
Number of Advertising Funds | 2 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies Cash Equivalents (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Accounting Policies [Abstract] | |
Cash Equivalents, Insurance from Securities Investor Protection Corporation, Maximum per Account | $ 500 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies Properties and Depreciation and Amortization (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Office and Restaurant Equipment [Member] | Minimum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 5 years |
Office and Restaurant Equipment [Member] | Maximum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 20 years |
Transportation Equipment [Member] | Minimum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 15 years |
Building [Member] | Minimum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 7 years |
Building [Member] | Maximum [Member] | |
Properties | |
Property, Plant and Equipment, Useful Life | 30 years |
Summary of Significant Accoun62
Summary of Significant Accounting Policies Goodwill (Details) | 12 Months Ended |
Jan. 01, 2017segment | |
Goodwill [Line Items] | |
Number of Reporting Units | 2 |
Summary of Significant Accoun63
Summary of Significant Accounting Policies Other Intangible Assets and Deferred Financing Costs (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Computer Software, Intangible Asset [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Computer Software, Intangible Asset [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Reacquired rights under franchise agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Reacquired rights under franchise agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Franchise agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Summary of Significant Accoun64
Summary of Significant Accounting Policies Investments (Details) | Jan. 01, 2017 |
TimWen [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Brazil JV [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 20.00% |
Summary of Significant Accoun65
Summary of Significant Accounting Policies Self-insurance (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Insurance Claims [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss per Occurrence, Maximum | $ 500 |
Summary of Significant Accoun66
Summary of Significant Accounting Policies Leases (Details) | 12 Months Ended |
Jan. 01, 2017 | |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 15 years |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Summary of Significant Accoun67
Summary of Significant Accounting Policies Concentration of Risk (Details) | 12 Months Ended |
Jan. 01, 2017statesdistributorscountriescustomers | |
Concentration Risk [Line Items] | |
Number of Customers Accounting for More Than 10% of Revenues | customers | 0 |
Number of Main In-line Distributors | 1 |
Number of Additional In-line Distributors | 4 |
Number of States Where Restaurants are Located | states | 50 |
Main In-line Distributor Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 49.00% |
Additional In-line Distributor Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 47.00% |
Geographic Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 10.00% |
Foreign Countries [Member] | |
Concentration Risk [Line Items] | |
Number of Countries Entity Operates (Including Canada) | countries | 30 |
Summary of Significant Accoun68
Summary of Significant Accounting Policies New Accounting Standards (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Accounting Policies [Abstract] | |
Operating Leases, Future Minimum Payments Due | $ 1,258,065 |
System Optimization Gains, Ne69
System Optimization Gains, Net (Losses) Gains, Net (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2017USD ($) | Oct. 02, 2016USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Jun. 28, 2015USD ($) | Jan. 01, 2017USD ($)Restaurant | Jan. 03, 2016USD ($)Restaurant | Dec. 28, 2014USD ($)Restaurant | Dec. 29, 2013Restaurant | Feb. 28, 2015Restaurant | |
Property, Plant and Equipment [Line Items] | ||||||||||
Significant Changes, Planned Franchises to Sell | Restaurant | 540 | |||||||||
Future company-owned restaurant ownership percentage | 5.00% | |||||||||
System optimization gains, net | ||||||||||
Significant Changes, Franchises Sold | Restaurant | 255 | |||||||||
Proceeds from sales | $ 262,173 | $ 204,388 | $ 161,386 | |||||||
System optimization gains, net | $ 23,825 | $ 37,756 | $ 8,426 | $ 59,258 | $ 15,654 | 71,931 | 74,009 | 91,510 | ||
Goodwill | $ 741,410 | 770,781 | $ 741,410 | $ 770,781 | $ 822,562 | |||||
Sale of Company-Owned Restaurants to Franchisees [Member] | ||||||||||
System optimization gains, net | ||||||||||
Significant Changes, Franchises Sold | Restaurant | 310 | 327 | 237 | 244 | ||||||
Proceeds from sales | $ 251,446 | $ 193,860 | $ 128,292 | |||||||
Net assets sold | (115,052) | (86,493) | (53,043) | |||||||
Goodwill related to sales of restaurants | (41,561) | (29,970) | (18,032) | |||||||
Net (unfavorable) favorable leases | (24,592) | (846) | 34,335 | |||||||
Other | (3,103) | (5,499) | (5,692) | |||||||
Gain on sales of restaurants, Net, Before post-closing adjustments | 67,138 | 71,052 | 85,860 | |||||||
Post-closing adjustments on sales of restaurants | (1,411) | 1,285 | (1,280) | |||||||
System optimization gains, net | 65,727 | 72,337 | 84,580 | |||||||
Favorable Lease Assets | 7,612 | 34,437 | 63,120 | |||||||
Unfavorable Lease Liabilities | $ 32,204 | 35,283 | $ 28,785 | |||||||
Deferred Gain on Sale of Property | $ 4,568 | $ 4,568 | ||||||||
Franchises Sold, Deferred Gain on Sale | Restaurant | 17 | |||||||||
Recognition of Gain on Sale of Property | $ 4,492 | |||||||||
Sale of franchise-operated restaurant to franchisee [Member] | ||||||||||
System optimization gains, net | ||||||||||
Significant Changes, Franchises Sold | Restaurant | 144 | 71 | 18 | |||||||
Proceeds from sales | $ 15,779 | |||||||||
System optimization gains, net | 1,841 | |||||||||
Goodwill | 0 | |||||||||
Sale of Other Assets [Member] | ||||||||||
System optimization gains, net | ||||||||||
Proceeds from sales | $ 10,727 | $ 10,478 | 17,263 | |||||||
System optimization gains, net | 6,204 | 1,672 | 5,089 | |||||||
Sale of company-owned restaurants and other assets [Member] | ||||||||||
System optimization gains, net | ||||||||||
System optimization gains, net | $ 71,931 | 74,009 | 89,669 | |||||||
Guarantee Obligations [Member] | Sale of Company-Owned Restaurants to Franchisees [Member] | ||||||||||
System optimization gains, net | ||||||||||
Deferred Gain on Sale of Property | $ 1,995 | |||||||||
Franchises Sold, Deferred Gain on Sale | Restaurant | 8 | |||||||||
Canada, Dollars | Guarantee Obligations [Member] | Sale of Company-Owned Restaurants to Franchisees [Member] | ||||||||||
System optimization gains, net | ||||||||||
Deferred Gain on Sale of Property | $ 2,300 | |||||||||
System Optimization [Member] | ||||||||||
System optimization gains, net | ||||||||||
Goodwill, Transfers | $ 11,429 | $ 8,457 |
System Optimization Gains, Ne70
System Optimization Gains, Net Assets Held for Sale (Details) $ in Thousands | Jan. 01, 2017USD ($)Restaurant | Jan. 03, 2016USD ($)Restaurant |
Restaurant assets held for sale [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Assets | $ 0 | $ 50,262 |
Number of Restaurants Classified as Assets Held for Sale | Restaurant | 0 | 99 |
Other assets held for sale [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Disposal Group, Including Discontinued Operation, Assets | $ 4,800 | $ 7,124 |
Acquisitions (Details)
Acquisitions (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2014USD ($)Restaurant | Jan. 01, 2017USD ($)Restaurant | Jan. 03, 2016USD ($)Restaurant | Dec. 28, 2014USD ($)Restaurant | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 822,562,000 | $ 741,410,000 | $ 770,781,000 | $ 822,562,000 |
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Restaurants acquired from franchisees | Restaurant | 2 | 4 | 27 | |
Total consideration paid, net of cash received | $ 2,209,000 | $ 1,232,000 | $ 27,630,000 | |
Goodwill | 11,455,000 | 0 | (1,408,000) | 11,455,000 |
Properties | 9,498,000 | 2,218,000 | 1,303,000 | 9,498,000 |
Acquired franchise rights | 6,650,000 | 0 | 760,000 | 6,650,000 |
Other assets | 941,000 | 9,000 | 0 | 941,000 |
Capital lease obligations | 0 | 0 | (438,000) | 0 |
Unfavorable leases | 0 | 0 | (440,000) | 0 |
Other liabilities | (565,000) | (18,000) | (80,000) | (565,000) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 16,524,000 | 2,209,000 | 1,105,000 | 16,524,000 |
Business Combination, Consideration Transferred, Net of Identifiable Assets Acquired and Liabilities Assumes | 11,106,000 | 0 | 127,000 | 11,106,000 |
Gain on acquisition of restaurants | 0 | 0 | $ 349,000 | |
Prior period acquisition [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Restaurants acquired from franchisees | Restaurant | 3 | |||
Goodwill | $ 0 | $ 0 | $ (1,535,000) | $ 0 |
Sale of franchise-operated restaurant to franchisee [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Restaurants acquired from franchisees | Restaurant | 18 | |||
Total consideration paid, net of cash received | $ 26,324,000 | |||
Goodwill | 0 | 0 | ||
Properties | 10,359,000 | 10,359,000 | ||
Acquired franchise rights | $ 0 | $ 0 |
Reorganization and Reorganiza72
Reorganization and Reorganization Costs Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | $ 2,217 | $ 2,129 | $ 2,487 | $ 3,250 | $ 5,264 | $ 5,754 | $ 6,279 | $ 4,613 | $ 10,083 | $ 21,910 | $ 31,903 |
General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | 692 | 10,342 | 12,926 | ||||||||
System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | $ 9,391 | $ 11,568 | $ 18,977 |
Reorganization and Reorganiza73
Reorganization and Reorganization Costs G&A Realignment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | $ 2,217 | $ 2,129 | $ 2,487 | $ 3,250 | $ 5,264 | $ 5,754 | $ 6,279 | $ 4,613 | $ 10,083 | $ 21,910 | $ 31,903 |
General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 692 | 4,718 | 12,214 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 17,624 | 17,624 | |||||||||
Reorganization and realignment costs | 692 | 10,342 | 12,926 | ||||||||
Restructuring Charges, Incurred to Date | 23,960 | 23,960 | |||||||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | 0 | |||||||||
Employee Severance [Member] | General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve, Accrual Adjustment | (387) | ||||||||||
Restructuring and Related Cost, Incurred Cost | (344) | 3,011 | 11,917 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 14,584 | 14,584 | |||||||||
Recruiting and Relocation Costs [Member] | General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 992 | 1,658 | 209 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 2,859 | 2,859 | |||||||||
Other Restructuring [Member] | General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 44 | 49 | 88 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 181 | 181 | |||||||||
Share Based Compensation Expense [Member] | General and Administrative Realignment and Reinvestment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | 0 | $ 5,624 | $ 712 | ||||||||
Restructuring Charges, Incurred to Date | $ 6,336 | $ 6,336 |
Reorganization and Reorganiza74
Reorganization and Reorganization Costs G&A Realignment Accrual Rollforward (Details) - General and Administrative Realignment and Reinvestment [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 3,575 | $ 11,763 | |
Charges | 692 | 4,718 | $ 12,214 |
Payments | (4,035) | (12,906) | |
Ending balance | 232 | 3,575 | 11,763 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 3,431 | 11,609 | |
Charges | (344) | 3,011 | 11,917 |
Payments | (2,855) | (11,189) | |
Ending balance | 232 | 3,431 | 11,609 |
Recruiting and Relocation Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 144 | 149 | |
Charges | 992 | 1,658 | 209 |
Payments | (1,136) | (1,663) | |
Ending balance | 0 | 144 | 149 |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 0 | 5 | |
Charges | 44 | 49 | 88 |
Payments | (44) | (54) | |
Ending balance | $ 0 | $ 0 | $ 5 |
Reorganization and Reorganiza75
Reorganization and Reorganization Costs System Optimization Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | $ 2,217 | $ 2,129 | $ 2,487 | $ 3,250 | $ 5,264 | $ 5,754 | $ 6,279 | $ 4,613 | $ 10,083 | $ 21,910 | $ 31,903 |
System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Expected Cost Remaining | 1,300 | 1,300 | |||||||||
Restructuring and Related Cost, Incurred Cost | 7,791 | 5,184 | 14,710 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 40,587 | 40,587 | |||||||||
Reorganization and realignment costs | 9,391 | 11,568 | 18,977 | ||||||||
Restructuring Charges, Incurred to Date | 70,998 | 70,998 | |||||||||
Employee Severance [Member] | System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 82 | 894 | 7,608 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 18,234 | 18,234 | |||||||||
Consulting and Professional Fees [Member] | System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 7,437 | 3,360 | 3,424 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 16,610 | 16,610 | |||||||||
Other Restructuring [Member] | System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 272 | 930 | 3,678 | ||||||||
Restructuring and Related Cost, Cost Incurred to Date | 5,743 | 5,743 | |||||||||
Accelerated Depreciation and Amortization [Member] | System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | 1,600 | 6,384 | 507 | ||||||||
Restructuring Charges, Incurred to Date | 25,398 | 25,398 | |||||||||
Share Based Compensation Expense [Member] | System Optimization [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Reorganization and realignment costs | 0 | $ 0 | $ 3,760 | ||||||||
Restructuring Charges, Incurred to Date | $ 5,013 | $ 5,013 |
Reorganization and Reorganiza76
Reorganization and Reorganization Costs System Optimization Accrual Rollforward (Details) - System Optimization [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 875 | $ 2,804 | |
Charges | 7,791 | 5,184 | $ 14,710 |
Payments | (8,565) | (7,113) | |
Ending balance | 101 | 875 | 2,804 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 77 | 2,235 | |
Charges | 82 | 894 | 7,608 |
Payments | (159) | (3,052) | |
Ending balance | 0 | 77 | 2,235 |
Consulting and Professional Fees [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 708 | 146 | |
Charges | 7,437 | 3,360 | 3,424 |
Payments | (8,044) | (2,798) | |
Ending balance | 101 | 708 | 146 |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 90 | 423 | |
Charges | 272 | 930 | 3,678 |
Payments | (362) | (1,263) | |
Ending balance | $ 0 | $ 90 | $ 423 |
Income (Loss) Per Share (Detail
Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ 88,681 | $ 8,323 | $ 24,825 | $ 18,150 | $ 129,624 | $ 139,979 | $ 116,424 | ||||
Net income (loss) from discontinued operations | 0 | 21,163 | 5,010 | ||||||||
Net income | $ 28,891 | $ 48,890 | $ 26,480 | $ 25,363 | $ 85,856 | $ 7,584 | $ 40,195 | $ 27,507 | $ 129,624 | $ 161,142 | $ 121,434 |
Common Stock: | |||||||||||
Weighted average basic shares outstanding | 262,209 | 323,018 | 370,160 | ||||||||
Dilutive effect of stock options and restricted shares | 4,503 | 5,707 | 6,022 | ||||||||
Weighted average diluted shares outstanding | 266,712 | 328,725 | 376,182 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,558 | 2,323 | 4,946 |
Cash and Receivables Cash and C
Cash and Receivables Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 192,905 | $ 281,877 |
Cash Equivalents | 5,335 | 45,339 |
Cash and cash equivalents | 198,240 | 327,216 |
Restricted Cash and Cash Equivalents, Current | 57,612 | 42,869 |
Restricted Cash [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 57,612 | 42,869 |
Restricted Cash [Member] | Accounts held by trustee for the securitized financing facility | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 29,096 | 29,327 |
Restricted Cash [Member] | Accounts held by trustee for reinvestment in capital assets | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 22,014 | 0 |
Restricted Cash [Member] | Collateral supporting letters of credit | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 6,165 | 13,210 |
Restricted Cash [Member] | Trust for Termination Costs for Former Wendy's Executives | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 168 | 168 |
Restricted Cash [Member] | Other | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Current | 169 | 164 |
Deferred Costs and Other Assets [Member] | Trust for Termination Costs for Former Wendy's Executives | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | $ 738 | $ 1,191 |
Cash and Receivables Accounts a
Cash and Receivables Accounts and Notes Receivable (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Income Taxes Receivable | $ 18,111 | $ 23,508 | ||
Accounts receivable, gross, current | 99,866 | 105,986 | ||
Accounts and notes receivable, gross, current | 102,855 | 108,342 | ||
Allowance for doubtful accounts, current | (4,030) | (3,488) | $ (2,343) | $ (3,310) |
Accounts and notes receivable, net, current | 98,825 | 104,854 | ||
Allowance for doubtful accounts, noncurrent | (26) | (257) | $ (246) | $ (256) |
Franchisees [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross, current | 74,134 | 71,158 | ||
Notes receivable from franchisees, gross, current | 2,989 | 2,356 | ||
Notes and loans receivable from franchisees, gross, noncurrent | 9,290 | 5,158 | ||
Allowance for doubtful accounts, noncurrent | (26) | (257) | ||
Notes and loans receivable, net, noncurrent | 9,264 | 4,901 | ||
Other Receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross, current | 25,732 | 34,828 | ||
Japan JV [Member] | Franchisees [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable from franchisees, gross, current | 701 | |||
Notes and loans receivable from franchisees, gross, noncurrent | 2,212 | |||
Brazil JV [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes and loans receivable from franchisees, gross, noncurrent | 6,810 | 1,700 | ||
Indonesia [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes and loans receivable from franchisees, gross, noncurrent | 2,454 | |||
Sale of Company-Owned Restaurants to Franchisees [Member] | Franchisees [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable from franchisees, gross, current | 83 | |||
Notes and loans receivable from franchisees, gross, noncurrent | 331 | |||
Accounts and notes receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net current investment in direct financing leases | $ (101) | $ (25) |
Cash and Receivables Allowance
Cash and Receivables Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance, Current | $ 3,488 | $ 2,343 | $ 3,310 |
Beginning Balance, Noncurrent | 257 | 246 | 256 |
Provision for Doubtful Accounts, Franchisees and other | 390 | 979 | (925) |
Uncollectible accounts written-off, net of recoveries | (79) | 177 | (52) |
Ending Balance, Current | 4,030 | 3,488 | 2,343 |
Ending Balance, Noncurrent | 26 | 257 | 246 |
Allowances for Doubtful Accounts Receivable, Balance | $ 4,056 | $ 3,745 | $ 2,589 |
Investments Carrying Value of I
Investments Carrying Value of Investments (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Schedule of Investments | ||
Equity investments | $ 54,545 | $ 55,541 |
Cost investments | 2,436 | 2,828 |
Investments | $ 56,981 | $ 58,369 |
Investments Equity Investment S
Investments Equity Investment Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 28, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Note Receivable, Interest Rate | 6.50% | |||
TimWen and Brazil JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings for the period | $ 10,627 | $ 11,533 | $ 12,802 | |
TimWen [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 31,213 | 32,513 | ||
Brazil JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Equity Method Investment, Initial Ownership Percentage | 20.00% | |||
Payments to Acquire Interest in Joint Venture | $ 1 | |||
Payments to Acquire Interest in Joint Venture, Starbord | 2 | |||
Payments to Acquire Interest in Joint Venture, Infinity | $ 2 | |||
Equity Method Investment Ownership Percentage, Starbord | 40.00% | |||
Equity Method Investment Ownership Percentage, Infinity | 40.00% | |||
Equity in earnings for the period | $ (271) | (88) | ||
Loan agreement, Maximum loan amount | $ 8,000 | |||
Increase (Decrease) in Notes Receivables | $ 5,110 | $ 1,700 |
Investments Investment Rollforw
Investments Investment Rollforward (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($)yr | Jan. 03, 2016USD ($)years | Dec. 28, 2014USD ($)years | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Purchase Price Adjustment, Amortization Period | 21 | 21 | 21 |
Balance at beginning of period | $ 55,541 | ||
Distributions received | (11,426) | $ (12,451) | $ (13,896) |
Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” | 5,864 | (37,800) | (18,560) |
Balance at end of period | 54,545 | 55,541 | |
TimWen and Brazil JV [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Interest in Subsidiaries and Affiliates | 172 | ||
Balance at beginning of period | 55,541 | 69,790 | 79,810 |
Initial investment | 108 | 0 | |
Equity in earnings for the period | 10,627 | 11,533 | 12,802 |
Amortization of purchase price adjustments | (2,276) | (2,328) | (2,626) |
Equity in Earnings, Net of Amortization of Purchase Price Adjustment | 8,351 | 9,205 | 10,176 |
Distributions received | (11,426) | (12,451) | (13,896) |
Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” | 1,907 | (11,111) | (6,300) |
Balance at end of period | $ 54,545 | $ 55,541 | $ 69,790 |
Investments Indirect Investment
Investments Indirect Investment in Arby's (Details) - USD ($) $ in Thousands | Jul. 04, 2011 | Jan. 03, 2016 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||
Investment Income, Dividend | $ 0 | $ 54,911 | $ 184 | ||
Arby's Restaurant Group, Inc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from Divestiture of Business, Percentage of Buyer Stock Received | 18.50% | ||||
Distributions, including dividends | $ 54,911 | ||||
Arby's Restaurant Group, Inc [Member] | Investment Income [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment Income, Dividend | $ 54,911 | ||||
Common stock [Member] | Arby's Restaurant Group, Inc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 19,000 |
Properties (Details)
Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,607,805 | $ 1,634,049 | |
Accumulated Depreciation and Amortization, Property, Plant, and Equipment | (415,466) | (406,105) | |
Properties | 1,192,339 | 1,227,944 | $ 1,241,170 |
Capital Leases, Accumulated Amortization | 13,705 | 9,827 | |
Depreciation and amortization | 122,704 | 145,051 | 153,882 |
Property, Plant and Equipment [Member] [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 92,286 | 114,961 | 127,528 |
Assets, Accelerated Useful Lives [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 2,598 | 8,607 | $ 19,353 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 381,305 | 379,982 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 504,730 | 508,186 | |
Office, restaurant, and transportation equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 234,275 | 308,274 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 371,954 | 371,734 | |
Capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 115,541 | $ 65,873 |
Goodwill And Other Intangible86
Goodwill And Other Intangible Assets Schedule of Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 770,781 | $ 822,562 |
Goodwill, Written off related to sale of business | (30,132) | (32,942) |
Goodwill acquisitions | 0 | (1,408) |
Currency translation adjustment and other, net | 761 | (5,364) |
Balance at end of year | 741,410 | 770,781 |
Discontinued Operations [Member] | Bakery [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Written off related to sale of business | $ 0 | $ (12,067) |
Goodwill And Other Intangible87
Goodwill And Other Intangible Assets Schedule of Finite-Lived And Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite Lived And Finite Lived Intangible Assets, Gross | $ 1,585,332 | $ 1,566,836 |
Finite-Lived Intangible Assets, Accumulated Amortization | (262,801) | (227,249) |
Other intangible assets | 1,322,531 | 1,339,587 |
Franchise agreements [Member] | ||
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 348,403 | 347,970 |
Finite-Lived Intangible Assets, Accumulated Amortization | (137,047) | (120,298) |
Finite-Lived Intangible Assets, Net | 211,356 | 227,672 |
Favorable leases | ||
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 208,626 | 209,523 |
Finite-Lived Intangible Assets, Accumulated Amortization | (57,440) | (50,750) |
Finite-Lived Intangible Assets, Net | 151,186 | 158,773 |
Reacquired rights under franchise agreements [Member] | ||
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,690 | 8,753 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,536) | (6,503) |
Finite-Lived Intangible Assets, Net | 154 | 2,250 |
Software [Member] | ||
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 123,613 | 97,590 |
Finite-Lived Intangible Assets, Accumulated Amortization | (66,778) | (49,698) |
Finite-Lived Intangible Assets, Net | 56,835 | 47,892 |
Trademarks [Member] | ||
Schedule of Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 903,000 | 903,000 |
Accumulated Amortization, Indefinite Lived Assets | $ 0 | $ 0 |
Goodwill And Other Intangible88
Goodwill And Other Intangible Assets Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 48,824 | $ 54,686 | $ 42,274 |
Future amortization, 2017 | 44,977 | ||
Future amortization, 2018 | 43,237 | ||
Future amortization, 2019 | 38,988 | ||
Future amortization, 2020 | 34,826 | ||
Future amortization, 2021 | 29,770 | ||
Future amortization, Thereafter | 227,733 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 3,288 | 3,656 | 3,610 |
System Optimization [Member] | Assets, Accelerated Useful Lives [Member] | Reacquired rights under franchise agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1,600 | $ 6,384 | $ 474 |
Accrued Expenses and Other Cu89
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Accrued Liabilities [Abstract] | ||
Accrued compensation and related benefits | $ 47,214 | $ 60,566 |
Accrued taxes | 21,571 | 19,925 |
Other | 33,249 | 43,913 |
Accrued Liabilities, Current | $ 102,034 | $ 124,404 |
Long-Term Debt Schedule of Long
Long-Term Debt Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 28, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Jun. 01, 2015 | |
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 2,512,282 | $ 2,426,113 | |||
Less amounts payable within one year | (24,652) | (23,290) | |||
Total long-term debt | 2,487,630 | 2,402,823 | |||
Loss on early extinguishment of debt | $ 7,295 | 0 | 7,295 | $ 0 | |
Letters of Credit Outstanding, Amount | 33,004 | ||||
Restricted Cash and Cash Equivalents, Current | 57,612 | 42,869 | |||
Series 2015-1 Class A-2-I Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 864,063 | 872,813 | $ 875,000 | ||
Debt Instrument, Interest Rate at Period End | 3.791% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.371% | ||||
Anticipated Repayment Date | 4 years 3 months | ||||
Series 2015-1 Class A-2-II Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 888,750 | 897,750 | $ 900,000 | ||
Debt Instrument, Interest Rate at Period End | 4.34% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.08% | ||||
Anticipated Repayment Date | 7 years | ||||
Series 2015-1 Class A-2-III Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 493,750 | 498,750 | $ 500,000 | ||
Debt Instrument, Interest Rate at Period End | 4.682% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.497% | ||||
Anticipated Repayment Date | 10 years | ||||
7% debentures, due in 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 88,277 | 87,057 | |||
Debt Instrument, Face Amount | $ 100,000 | ||||
Debt Instrument, Interest Rate at Period End | 8.60% | ||||
Series 2015-1 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Deferred Finance Costs, Gross | $ 2,495 | 43,817 | |||
Term Loan, 2013 [Member] | |||||
Debt Instrument [Line Items] | |||||
Loss on early extinguishment of debt | (7,295) | ||||
Write off of Deferred Debt Issuance Cost | 7,233 | ||||
Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Deferred Finance Costs, Net | $ (34,272) | (39,430) | |||
Series 2015-1 Class A-1 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional Interest On Debt, Rate, After Anticipated Repayment Date | 5.00% | ||||
Letter of Credit [Member] | Series 2015-1 Class A-1 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | ||||
Letters of Credit Outstanding, Amount | $ 26,552 | 23,002 | |||
Line of Credit [Member] | Series 2015-1 Class A-1 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Long-term Lines of Credit | 19,000 | ||||
Capital lease obligations, due through 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt and Capital Lease Obligations | $ 211,714 | 109,173 | |||
Minimum [Member] | Series 2015-1 Class A-1 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||
Maximum [Member] | Series 2015-1 Class A-1 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.85% | ||||
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments for fees to terminate cash flow hedge | $ 62 | ||||
Restricted Cash [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted Cash and Cash Equivalents, Current | $ 57,612 | 42,869 | |||
Accounts held by trustee for the securitized financing facility | Restricted Cash [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted Cash and Cash Equivalents, Current | $ 29,096 | $ 29,327 |
Long-Term Debt Maturities of lo
Long-Term Debt Maturities of long-term debt (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 24,652 |
2,018 | 25,318 |
2,019 | 862,464 |
2,020 | 16,482 |
2,021 | 18,079 |
Thereafter | 1,611,282 |
Total long-term debt, Gross | $ 2,558,277 |
Long-Term Debt Other Long-term
Long-Term Debt Other Long-term Debt Disclosure (Details) - Jan. 01, 2017 $ in Thousands | USD ($) | CAD |
Wendy's U.S. Advertising Fund [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 25,000 | |
Canadian Subsidiary [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | CAD 6,000,000 | |
Revolving credit, Number of Entities | 1 |
Long-Term Debt Assets Pledged a
Long-Term Debt Assets Pledged as Collateral (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | $ 1,408,212 |
Cash and cash equivalents [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 13,300 |
Accounts and notes receivable (including long-term) [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 48,644 |
Inventories [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 2,761 |
Properties [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 179,781 |
Other intangible assets [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | 1,112,515 |
Other assets (including long-term) [Member] | |
Pledged Assets, Not Separately Reported On Statement Of Financial Position [Line Items] | |
Pledged Assets, Other, Not Separately Reported on Statement of Financial Position | $ 51,211 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 29, 2013 |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 5,335 | $ 45,339 | |
Non-current cost method investments | 2,436 | 2,828 | |
Guarantees of franchisee loans | 280 | 851 | |
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, Fair Value Disclosure | 864,063 | 872,813 | |
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, Fair Value Disclosure | 888,750 | 897,750 | |
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, Fair Value Disclosure | 493,750 | 498,750 | |
Reported Value Measurement [Member] | Debentures, 7% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | 88,277 | 87,057 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 5,335 | 45,339 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Non-current cost method investments | 326,283 | 249,870 | |
Guarantees of franchisee loans | 280 | 851 | |
Estimate of Fair Value, Fair Value Disclosure [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, Fair Value Disclosure | 857,349 | 849,106 | |
Estimate of Fair Value, Fair Value Disclosure [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, Fair Value Disclosure | 880,005 | 879,795 | |
Estimate of Fair Value, Fair Value Disclosure [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, Fair Value Disclosure | 474,543 | 484,648 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Debentures, 7% [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 99,750 | $ 100,500 | |
Arby's Restaurant Group, Inc [Member] | Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Non-current cost method investments | $ 0 |
Fair Value Measurements Derivat
Fair Value Measurements Derivative Instruments (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||
May 31, 2015USD ($) | Jun. 28, 2015USD ($) | May 31, 2015USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($)cash_flow_hedge | Dec. 28, 2014USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Number of Interest Rate Derivatives Held | cash_flow_hedge | 7 | |||||
Payments for termination of cash flow hedge, Operating | $ 0 | $ 7,337 | $ 0 | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (7,275) | |||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ 0 | |||||
Interest Expense [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 2,894 | 1,487 | ||||
Interest Rate Swap [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Payments for termination of cash flow hedge, Operating | $ 7,275 | |||||
Payments for fees to terminate cash flow hedge | $ 62 | |||||
Term A Loan, 2018 [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Notional Amount | 350,000 | |||||
Term B Loan, 2019 [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Liability, Notional Amount | $ 100,000 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value of Items Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2017 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Jun. 28, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Held and used, Total losses | $ 15,928 | $ 22,346 | ||||||
Held for sale, Total losses | 313 | 2,655 | ||||||
Impairment of long-lived assets | $ 3,250 | $ 5,525 | $ 7,105 | $ 11,533 | $ 10,018 | 16,241 | 25,001 | $ 19,613 |
Fair Value, Measurements, Nonrecurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 5,462 | 10,244 | 5,462 | 10,244 | ||||
Held for sale | 1,552 | 4,328 | 1,552 | 4,328 | ||||
Total | 7,014 | 14,572 | 7,014 | 14,572 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | 0 | 0 | 0 | ||||
Held for sale | 0 | 0 | 0 | 0 | ||||
Total | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | 0 | 0 | 0 | ||||
Held for sale | 0 | 0 | 0 | 0 | ||||
Total | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Property, Plant, and Equipment, Fair Value Disclosure | 5,462 | 10,244 | 5,462 | 10,244 | ||||
Held for sale | 1,552 | 4,328 | 1,552 | 4,328 | ||||
Total | $ 7,014 | $ 14,572 | $ 7,014 | $ 14,572 |
Income Taxes Income from Contin
Income Taxes Income from Continuing Operations before Income Tax and Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Income from continuing operations before income taxes and noncontrolling interests [Line Items] | |||
Domestic | $ 192,082 | $ 208,827 | $ 173,143 |
Foreign | 9,608 | 25,301 | 19,397 |
Income from continuing operations before income taxes | $ 201,690 | $ 234,128 | $ 192,540 |
Income Taxes (Provision For) Be
Income Taxes (Provision For) Benefit from Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Deferred: | |||
Deferred tax (provision) benefit | $ 14,213 | $ (89,026) | $ (69,540) |
Income tax (provision) benefit | (72,066) | (94,149) | (76,116) |
Continuing Operations [Member] | |||
Current: | |||
U.S. Federal | (75,167) | (12,414) | 6,673 |
State | (5,805) | 3,346 | (7,863) |
Foreign | (5,307) | (10,778) | (8,093) |
Current tax provision | (86,279) | (19,846) | (9,283) |
Deferred: | |||
U.S. Federal | 7,975 | (53,916) | (67,977) |
State | 6,733 | (21,375) | 671 |
Foreign | (495) | 988 | 473 |
Deferred tax (provision) benefit | 14,213 | (74,303) | (66,833) |
Income tax (provision) benefit | $ (72,066) | $ (94,149) | $ (76,116) |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 |
Deferred Tax Assets | |||
Net operating loss and credit carryforwards | $ 44,733 | $ 51,782 | |
Unfavorable leases | 50,771 | 40,084 | |
Accrued compensation and related benefits | 31,994 | 35,963 | |
Accrued expenses and reserves | 16,486 | 18,156 | |
Deferred rent | 19,552 | 17,661 | |
Other | 9,293 | 9,157 | |
Valuation allowances | (11,400) | (17,097) | $ (11,213) |
Total deferred tax assets | 161,429 | 155,706 | |
Deferred Tax Liabilities | |||
Intangible assets | (495,505) | (499,467) | |
Owned and leased fixed assets net of related obligations | (89,251) | (95,619) | |
Other | (23,186) | (20,333) | |
Total deferred tax liabilities | (607,942) | (615,419) | |
Deferred Tax Liabilities, Net | $ (446,513) | $ (459,713) |
Income Taxes Income Taxes Net O
Income Taxes Income Taxes Net Operating Losses and Tax Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Summary of Net Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 22,138 | ||
Exercise of Stock Options and Vesting of Restricted Awards, Aggregate Deductions | 175,376 | ||
Excess Tax Benefit from Share-based Compensation, Recognized | 3,082 | $ 49,613 | $ 9,363 |
Deferred Tax Asset Not Recognized, Amount of Unrecognized Deferred Tax Asset, Compensation and Benefits | 63,938 | ||
Deferred Tax Assets, Valuation Allowance | 11,400 | 17,097 | 11,213 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (5,697) | $ 5,884 | $ 665 |
Undistributed Earnings of Foreign Subsidiaries | 108,038 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 10,640 | ||
Domestic Tax Authority [Member] | |||
Summary of Net Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 18,911 | ||
State and Local Jurisdiction [Member] | |||
Summary of Net Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 457 | ||
Net Operating Loss Carryforwards | 779,841 | ||
Foreign Tax Authority [Member] | |||
Summary of Net Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 2,770 | ||
Deferred Tax Asset [Domain] | Domestic Tax Authority [Member] | |||
Summary of Net Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Net Operating Loss Carryforwards | $ 46,612 |
Income Taxes Income Taxes Effec
Income Taxes Income Taxes Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 03, 2016 | Jul. 03, 2016 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||||
Quantifying Misstatement in Current Year Financial Statements, Federal Amount | $ (3,837) | ||||
Quantifying Misstatement in Current Year Financial Statements, State Amount | $ (398) | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (2,878) | ||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (70,592) | $ (81,945) | $ (67,389) | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (3,767) | (7,234) | (4,747) | ||
Non-deductible goodwill | (6,409) | (7,435) | (9,389) | ||
Valuation allowances | 4,915 | (6,075) | (665) | ||
Foreign and U.S. tax effects of foreign operations | 2,278 | 4,389 | 4,089 | ||
Non-deductible expenses and other, net | 1,509 | 4,151 | 1,985 | ||
Provision for income taxes | (72,066) | (94,149) | (76,116) | ||
System Optimization [Member] | |||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||
Non-deductible goodwill | (7,544) | (8,987) | (9,389) | ||
Valuation allowances | (2,062) | 4,542 | |||
Foreign Tax Authority [Member] | System Optimization [Member] | |||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||
Provision for income taxes | $ (70) | ||||
State and Local Jurisdiction [Member] | System Optimization [Member] | |||||
Effective Income Tax Rate Reconciliation [Line Items] | |||||
Provision for income taxes | $ 2,692 | $ (1,587) |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Contingency [Line Items] | |||||
Unrecognized Tax Benefits, Ending Balance | $ 21,224 | $ 25,715 | $ 23,897 | $ 19,545 | $ 21,224 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | 14,752 | ||||
Unrecognized tax benefits, decrease resulting from SO initiative | 1,822 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Unrecognized Tax Benefits, Beginning Balance | 21,224 | 25,715 | 23,897 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 306 | 927 | 0 | ||
Tax positions of prior years, additions | 440 | 476 | 2,678 | ||
Tax positions of prior years, reductions | (2,126) | (5,182) | (582) | ||
Settlements, reductions | (42) | (251) | 0 | ||
Lapse of statute of limitations, reductions | (257) | (461) | (278) | ||
Unrecognized Tax Benefits, Ending Balance | 21,224 | 25,715 | 23,897 | 19,545 | 21,224 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 714 | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 75 | (1,627) | 315 | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 25 | $ (15) | $ (330) | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 1,296 | 1,223 | |||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 615 | $ 642 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 27, 2016 | Sep. 25, 2015 | Aug. 31, 2015 | Jul. 17, 2015 | Jul. 08, 2015 | Feb. 19, 2014 | Nov. 30, 2016 | Feb. 22, 2017 | Sep. 27, 2015 | Jun. 28, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Jun. 03, 2015 | Jun. 01, 2015 | Aug. 31, 2014 | Jan. 31, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.245 | $ 0.225 | $ 0.205 | ||||||||||||||
Number of Shares, beginning of year | 470,424 | 470,424 | 470,424 | 470,424 | 470,424 | ||||||||||||
Number of Shares, end of year | 470,424 | 470,424 | 470,424 | ||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Initial Shares Delivered Under ASR Agreement Percentage | 85.00% | 85.00% | |||||||||||||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | 100,000 | ||||||||||||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 1,774 | $ 915 | |||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 97 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 1,349 | ||||||||||||||||
Stock Repurchase Program, Cost Incurred | $ 2 | ||||||||||||||||
Common Stock Held in Treasury | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Number of Shares at beginning of year | 223,850 | 104,614 | 198,109 | 104,614 | 77,637 | ||||||||||||
Repurchases of common stock | 29,545 | 99,881 | 32,716 | ||||||||||||||
Common shares issued, stock options, net | (2,914) | (5,043) | (4,930) | ||||||||||||||
Common shares issued, restricted stock, net | (796) | (1,258) | (732) | ||||||||||||||
Common shares issued, Director fees | (20) | (21) | (24) | ||||||||||||||
Common shares issued, Other | (74) | (64) | (53) | ||||||||||||||
Number of Shares at end of year | 223,850 | 198,109 | 104,614 | ||||||||||||||
$100 Million Repurchase Program [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 5,655 | 2,986 | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | ||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 76,111 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 14,480 | $ 61,631 | 23,889 | ||||||||||||||
Stock Repurchase Program, Cost Incurred | $ 86 | 52 | |||||||||||||||
$1.4 Billion Repurchase Program [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 18,142 | 2,066 | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,400,000 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 184,986 | $ 21,959 | |||||||||||||||
Stock Repurchase Program, Repurchase Accrual | 1,700 | ||||||||||||||||
Stock Repurchase Program, Cost Incurred | $ 272 | 28 | |||||||||||||||
February 2017 Repurchase Program [Member] [Domain] | Subsequent Event [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | ||||||||||||||||
Tender Offer and Purchase Agreement [Domain] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 850,000 | ||||||||||||||||
Tender Offer [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 55,808 | ||||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 11.45 | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | 639,000 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 639,000 | ||||||||||||||||
Stock Repurchase Program, Cost Incurred | 2,288 | ||||||||||||||||
Accelerated Share Repurchase Program [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 316 | 3,551 | 14,385 | 11,087 | |||||||||||||
Treasury Stock, Value Acquired, Cost Method, Anticipated Under Accelerated Share Repurchase Program | $ 150,000 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 164,500 | ||||||||||||||||
Stock Repurchase Program, Cost Incurred | $ 58 | ||||||||||||||||
Purchase agreement [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 18,416 | ||||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 11.45 | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 211,000 | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 210,867 | ||||||||||||||||
$275 Million Repurchase Program [Member] | |||||||||||||||||
Stockholders' Equity Activity | |||||||||||||||||
Repurchases of common stock | 29,730 | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 275,000 | ||||||||||||||||
Stock Repurchase Program, Cost Incurred | $ 2,275 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 1,774 | $ 915 | ||
Accumulated other comprehensive loss | (63,241) | (70,823) | $ (31,294) | $ (10,337) |
Current-period other comprehensive income (loss) | 7,582 | (39,529) | (20,957) | |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (60,299) | (66,163) | (28,363) | (9,803) |
Current-period other comprehensive income (loss) | 5,864 | (37,800) | (18,560) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (1,797) | (3,571) | (2,044) | 744 |
Current-period other comprehensive income (loss) | 1,774 | (1,527) | (2,788) | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (1,145) | (1,089) | (887) | $ (1,278) |
Current-period other comprehensive income (loss) | (56) | (202) | $ 391 | |
Interest Expense [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (2,894) | (1,487) | ||
Provision for income taxes [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $ (1,120) | $ (572) |
Share-Based Compensation Summar
Share-Based Compensation Summary (Details) - 2010 Plan [Member] - shares shares in Thousands | Jan. 01, 2017 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Increase of Number of Shares Available for Grant | 20,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 34,516 |
Share-Based Compensation Stock
Share-Based Compensation Stock Options (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period | 16,841 | ||
Granted | 3,797 | ||
Exercised | (3,218) | ||
Forfeited and/or expired | (723) | ||
Outstanding, end of period | 16,697 | 16,841 | |
Vested or expected to vest, end of period | 16,559 | ||
Exercisable, end of period | 8,842 | ||
Weighted average exercise price, outstanding at beginning of period | $ 7.73 | ||
Weighted average exercise price, granted | 10.09 | ||
Weighted average exercise price, exercised | 6.94 | ||
Weighted average exercise price, forfeited and/or expired | 10.13 | ||
Weighted average exercise price, outstanding at end of period | 8.31 | $ 7.73 | |
Weighted average exercise price, vested or expected to vest | 8.30 | ||
Weighted average exercise price, exercisable | $ 7.07 | ||
Weighted average remaining contractual life in years, outstanding | 7 years 7 months 6 days | ||
Weighted average remaining contractual life in years, vested or expected to vest | 7 years 7 months 6 days | ||
Weighted average remaining contractual life in years, exercisable | 6 years 4 months 24 days | ||
Aggregate intrinsic value, outstanding | $ 86,960 | ||
Aggregate intrinsic value, vested or expected to vest | 86,439 | ||
Aggregate intrinsic value, exercisable | 57,102 | ||
Total intrinsic value, exercises in period | $ 12,594 | $ 30,116 | $ 13,948 |
Weighted average grant date fair value, granted | $ 2.12 | $ 2.27 | $ 2.34 |
Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.28% | 1.76% | 1.97% |
Expected option life in years | 5 years 7 months 12 days | 5 years 7 months 12 days | 6 years 4 months 6 days |
Expected volatility | 28.25% | 29.25% | 35.38% |
Expected dividend yield | 2.38% | 2.23% | 2.43% |
Share-Based Compensation Restri
Share-Based Compensation Restricted Shares (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Share-based Compensation, Restricted Stock, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested, beginning of period | 1,799 | ||
Granted | 726 | ||
Vested | (616) | ||
Forfeited | (92) | ||
Non-vested, end of period | 1,817 | 1,799 | |
Weighted average grant date fair value, non-vested, beginning of period | $ 8.32 | ||
Weighted average grant date fair value, granted | 10.33 | ||
Weighted average grant date fair value, vested | 7.65 | ||
Weighted average grant date fair value, forfeited | 8.95 | ||
Weighted average grant date fair value, non-vested, end of period | $ 9.30 | $ 8.32 | |
Total fair value, vested in period | $ 6,339 | $ 10,188 | $ 5,251 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Share-Based Compensation Perfor
Share-Based Compensation Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Share-based Compensation, Performance Shares, Nonvested, Number of Shares [Roll Forward] | |||
Weighted average grant date fair value, dividend equivalent units issued | $ 0 | ||
Performance Condition Award [Member] | |||
Share-based Compensation, Performance Shares, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested, beginning of period | 917 | ||
Granted | 267 | ||
Dividend equivalent units issued | 18 | ||
Vested | (385) | ||
Forfeited | (18) | ||
Non-vested, end of period | 799 | 917 | |
Weighted average grant date fair value, non-vested, beginning of period | $ 9.23 | ||
Weighted average grant date fair value, granted | 9.44 | ||
Weighted average grant date fair value, dividend equivalent units issued | 0 | ||
Weighted average grant date fair value, vested | 7.92 | ||
Weighted average grant date fair value, forfeited | 10.03 | ||
Weighted average grant date fair value, non-vested, end of period | $ 9.89 | $ 9.23 | |
Total fair value, vested in period | $ 5,954 | $ 1,156 | $ 104 |
Market Condition Performance Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.82% | 1.00% | |
Expected life in years | 3 years | 3 years | |
Expected volatility | 27.03% | 25.56% | |
Expected dividend yield | 0.00% | 0.00% | |
Share-based Compensation, Performance Shares, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested, beginning of period | 104 | ||
Granted | 246 | 0 | |
Dividend equivalent units issued | 7 | ||
Vested | 0 | ||
Forfeited | (5) | ||
Non-vested, end of period | 352 | 104 | |
Weighted average grant date fair value, non-vested, beginning of period | $ 17.08 | ||
Weighted average grant date fair value, granted | 10.25 | ||
Weighted average grant date fair value, dividend equivalent units issued | 0 | ||
Weighted average grant date fair value, vested | 0 | ||
Weighted average grant date fair value, forfeited | 17.08 | ||
Weighted average grant date fair value, non-vested, end of period | $ 12.17 | $ 17.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period Incremental Above Target | 246 | ||
Total fair value, vested in period | $ 0 | $ 10,073 | $ 6,382 |
Minimum [Member] | |||
Share-based Compensation, Performance Shares, Nonvested, Number of Shares [Roll Forward] | |||
Performance Shares Vesting Range, Percentage of Target | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation, Performance Shares, Nonvested, Number of Shares [Roll Forward] | |||
Performance Shares Vesting Range, Percentage of Target | 200.00% |
Share-Based Compensation Modifi
Share-Based Compensation Modifications of Share-Based Awards (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($)employees | Dec. 28, 2014USD ($)employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees subject to modification | employees | 25 | 45 | |
Increase in employee share-based compensation due to award modification | $ 5,977 | $ 2,376 | |
Share-based compensation | $ 18,141 | 22,956 | 28,056 |
Restructuring Charges [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in employee share-based compensation due to award modification | 5,624 | 4,472 | |
Modified Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 0 | 5,805 | 2,376 |
Modified Awards [Member] | General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | 181 | ||
Allocated share based compensation income | $ 2,096 | ||
Modified Awards [Member] | Income (loss) of discontinued operations, net of income taxes [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 172 |
Share-Based Compensation Share-
Share-Based Compensation Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 18,141 | $ 22,956 | $ 28,056 |
Less: Income tax benefit | 6,520 | 8,380 | 10,357 |
Share-based compensation, net of income tax benefit | 11,621 | 14,576 | 17,699 |
Total share-based compensation not yet recognized, non-vested awards | $ 20,888 | ||
Total share-based compensation not yet recognized, period for recognition, non-vested awards | 2 years 6 days | ||
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 6,859 | 10,081 | 13,692 |
Restricted Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 5,051 | 4,834 | 4,495 |
Performance Condition Award [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 4,681 | 888 | 7,456 |
Market Condition Performance Award [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 1,550 | 1,348 | 37 |
Modified Awards [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 0 | 5,805 | 2,376 |
Income (loss) of discontinued operations, net of income taxes [Member] | Modified Awards [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 172 | ||
Bakery [Member] | Income (loss) of discontinued operations, net of income taxes [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 275 | 187 | |
Less: Income tax benefit | $ 106 | $ 72 |
Impairment of Long-Lived Ass111
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2017 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Jun. 28, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Impairment of Long-Lived Assets [Line Items] | ||||||||
Impairment of long-lived assets | $ 3,250 | $ 5,525 | $ 7,105 | $ 11,533 | $ 10,018 | $ 16,241 | $ 25,001 | $ 19,613 |
Properties and Other Intangible Assets, Franchisee Leased / Subleased Assets [Member] | ||||||||
Impairment of Long-Lived Assets [Line Items] | ||||||||
Impairment of long-lived assets | 14,010 | 19,214 | 11,993 | |||||
Properties and Other Intangible Assets, Operating Restaurants [Member] | ||||||||
Impairment of Long-Lived Assets [Line Items] | ||||||||
Impairment of long-lived assets | 1,918 | 3,132 | 5,146 | |||||
Surplus Properties [Member] | ||||||||
Impairment of Long-Lived Assets [Line Items] | ||||||||
Impairment of long-lived assets | 313 | 2,655 | 2,474 | |||||
Impairment of long-lived assets [Member] | ||||||||
Impairment of Long-Lived Assets [Line Items] | ||||||||
Impairment of long-lived assets | $ 16,241 | $ 25,001 | $ 19,613 |
Investment Income, Net (Details
Investment Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Net Investment Income [Line Items] | |||
Gain (loss) on sale of investments, net | $ 497 | $ 335 | $ 975 |
Other than temporary loss on cost method investment | 0 | (3,150) | 0 |
Other, net | 226 | 118 | 40 |
Investment income, net | 723 | 52,214 | 1,199 |
Investment Income, Dividend | $ 0 | 54,911 | $ 184 |
Arby's Restaurant Group, Inc [Member] | Investment Income [Member] | |||
Net Investment Income [Line Items] | |||
Investment Income, Dividend | $ 54,911 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended | |||
Jan. 03, 2016 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | May 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposal of discontinued operations before income taxes | $ 0 | $ 25,529 | $ 0 | ||
Bakery [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of Membership Interests Sold | 100.00% | ||||
Capital Expenditure, Discontinued Operations | 2,693 | 2,613 | |||
Disposal Group, Including Discontinued Operation, Assets | $ 0 | 0 | 0 | ||
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 0 | 0 | ||
Bakery [Member] | 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 | $ 8,358 | $ 10,176 | |||
Disposal Group, Not Discontinued Operations [Member] | Bakery [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 0 | ||||
Discontinued Operations [Member] | Bakery [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 78,500 | ||||
Gain on disposal of discontinued operations before income taxes | 25,529 | 0 | |||
Provision for income taxes on gain on disposal | $ 14,860 | $ 0 |
Discontinued Operations Net Inc
Discontinued Operations Net Income (Loss) from Bakery Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 29, 2013 | Jan. 03, 2016 | Sep. 27, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ 0 | $ 10,494 | $ 5,010 | |||||||||
Gain on disposal of discontinued operations before income taxes | 0 | 25,529 | 0 | |||||||||
Gain on disposal of discontinued operations, net of income taxes | 0 | 10,669 | 0 | |||||||||
Net income (loss) from discontinued operations | 0 | 21,163 | 5,010 | |||||||||
Proceeds from sales | 262,173 | 204,388 | 161,386 | |||||||||
Gain on sales of other assets, net | $ 23,825 | $ 37,756 | $ 8,426 | $ 59,258 | $ 15,654 | 71,931 | 74,009 | 91,510 | ||||
Bakery [Member] | Discontinued Operations [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | 25,885 | 62,561 | ||||||||||
Cost of sales | (7,543) | (45,710) | ||||||||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 18,342 | 16,851 | ||||||||||
General and administrative | (1,093) | (2,525) | ||||||||||
Depreciation and amortization | (2,297) | (5,471) | ||||||||||
Other expense, net | (19) | (126) | ||||||||||
Income (loss) from discontinued operations before income taxes | 14,933 | 8,729 | ||||||||||
(Provision for) benefit from income taxes | (4,439) | (3,719) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 10,494 | 5,010 | ||||||||||
Gain on disposal of discontinued operations before income taxes | 25,529 | 0 | ||||||||||
Provision for income taxes on gain on disposal | (14,860) | 0 | ||||||||||
Gain on disposal of discontinued operations, net of income taxes | 10,669 | 0 | ||||||||||
Net income (loss) from discontinued operations | 21,163 | 5,010 | ||||||||||
Severance Related Costs Associated with Discontinued Operation | 791 | |||||||||||
Withdrawal from Multiemployer Defined Benefit Plan [Member] | Bakery [Member] | Discontinued Operations [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | |||||||||||
Sale of Other Assets [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sales | 10,727 | 10,478 | 17,263 | |||||||||
Gain on sales of other assets, net | 6,204 | 1,672 | 5,089 | |||||||||
Sale of Other Assets [Member] | Bakery [Member] | Discontinued Operations [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sales | 50 | 52 | ||||||||||
Gain on sales of other assets, net | $ 32 | $ 69 | ||||||||||
Cost of Sales [Member] | Bakery [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 | $ 8,358 | $ 10,176 | ||||||||||
Cost of Sales [Member] | Withdrawal from Multiemployer Defined Benefit Plan [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | $ 13,500 |
Discontinued Operations Gain on
Discontinued Operations Gain on Disposal of the Bakery (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jan. 01, 2017 | Oct. 02, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Jun. 28, 2015 | Sep. 27, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | May 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of the Bakery | $ 0 | $ 78,408 | $ 0 | |||||||
Goodwill allocated to the sale of the Bakery | (30,132) | (32,942) | ||||||||
Gain on disposal of discontinued operations before income taxes | 0 | 25,529 | 0 | |||||||
Gain on disposal of discontinued operations, net of income taxes | 0 | 10,669 | 0 | |||||||
Dispositions | 262,173 | 204,388 | 161,386 | |||||||
Gain on sales of other assets, net | $ 23,825 | $ 37,756 | $ 8,426 | $ 59,258 | $ 15,654 | 71,931 | 74,009 | 91,510 | ||
Bakery [Member] | Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of the Bakery | 78,408 | |||||||||
Net working capital | 5,655 | |||||||||
Net properties sold | 30,664 | |||||||||
Goodwill allocated to the sale of the Bakery | 0 | (12,067) | ||||||||
Other | 2,684 | |||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Post Closing Adjustments, before Income Tax | 27,338 | |||||||||
Post-closing adjustments on the sale of the Bakery | (1,809) | |||||||||
Gain on disposal of discontinued operations before income taxes | 25,529 | 0 | ||||||||
Provision for income taxes | (14,860) | 0 | ||||||||
Gain on disposal of discontinued operations, net of income taxes | 10,669 | 0 | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 78,500 | |||||||||
Withdrawal from Multiemployer Defined Benefit Plan [Member] | Bakery [Member] | Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | |||||||||
Obligation for Employer Provided Health Insurance [Member] | Bakery [Member] | Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Other | $ (1,993) | |||||||||
Sale of Other Assets [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Dispositions | 10,727 | 10,478 | 17,263 | |||||||
Gain on sales of other assets, net | $ 6,204 | 1,672 | 5,089 | |||||||
Sale of Other Assets [Member] | Bakery [Member] | Discontinued Operations [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Dispositions | 50 | 52 | ||||||||
Gain on sales of other assets, net | $ 32 | $ 69 |
Retirement Benefit Plans Define
Retirement Benefit Plans Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 75.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% | ||
Defined Contribution Plan, Cost Recognized | $ 5,177 | $ 6,124 | $ 6,550 |
Retirement Benefit Plans Def117
Retirement Benefit Plans Defined Benefit Plans (Details) - Pension Plans, Defined Benefit [Member] $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2011USD ($) | Jan. 01, 2017USD ($)Pension_Plans | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Number of Plans | Pension_Plans | 2 | |||
Defined Benefit Plan, Amortization of Prior Service Cost | $ 0 | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 3,609 | $ 3,809 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,641 | 2,699 | ||
General and Administrative Expense [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Expense | $ 177 | $ 149 | $ 126 | |
Arby's Restaurant Group, Inc [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Proceeds Received from Buyer for Unfunded Liability | $ 400 |
Retirement Benefit Plans Multie
Retirement Benefit Plans Multiemployer Pension Plan (Details) - Withdrawal from Multiemployer Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 24 Months Ended | |
Mar. 29, 2015 | Dec. 29, 2013 | Jan. 03, 2016 | |
Multiemployer Plans [Line Items] | |||
Loss Contingency Accrual, Payments | $ 1,014 | ||
Cost of Sales [Member] | |||
Multiemployer Plans [Line Items] | |||
Loss Contingency Accrual, Period Increase (Decrease) | $ (12,486) | $ 13,500 |
Retirement Benefit Plans Execut
Retirement Benefit Plans Executive Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | Accrued expenses and other current liabilities [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 524 | |
Chief Executive Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Deferred Compensation Arrangement with Individual, Base Salary | $ 1,000 | |
Supplemental Employee Retirement Plans, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | $ 3,101 | $ 3,396 |
Leases Lease Disclosure (Detail
Leases Lease Disclosure (Details) | 12 Months Ended |
Jan. 01, 2017PropertyRestaurant | |
Property Subject to or Available for Operating Lease [Line Items] | |
Number of Restaurants | Restaurant | 6,537 |
Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 15 years |
Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Lessee Disclosure [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 15 years |
Lessee Disclosure [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Lessee Disclosure [Member] | Land and Building [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Property Subject to or Available for Operating Lease, Number of Units | 149 |
Lessor Disclosure [Member] [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Property Subject to Operating Lease [Member] | Lessee Disclosure [Member] | Land and Building [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Property Subject to or Available for Operating Lease, Number of Units | 53 |
Property Subject to Operating Lease [Member] | Lessee Disclosure [Member] | Land | |
Property Subject to or Available for Operating Lease [Line Items] | |
Property Subject to or Available for Operating Lease, Number of Units | 128 |
Property Subject to Operating Lease [Member] | Lessor Disclosure [Member] [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Property Subject to or Available for Operating Lease, Number of Units | 979 |
Property Subject to Operating Lease [Member] | Lessor Disclosure [Member] [Member] | Assets Leased to Others [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Property Subject to or Available for Operating Lease, Number of Units | 519 |
Entity Operated Units [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Number of Restaurants | Restaurant | 330 |
Leases Operating Lease Rent Exp
Leases Operating Lease Rent Expense and Rent Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Operating Leased Assets [Line Items] | |||
Rental expense, Minimum rentals | $ 77,952 | $ 77,606 | $ 76,178 |
Rental expense, Contingent rentals | 18,291 | 18,270 | 19,967 |
Total rental expense | 96,243 | 95,876 | 96,145 |
Sublease income | 95,072 | 61,618 | 46,743 |
Rental income, Minimum rentals | 123,171 | 68,241 | 50,249 |
Rental income, Contingent rentals | 19,944 | 18,731 | 17,745 |
Total rental income | $ 143,115 | $ 86,972 | $ 67,994 |
Leases Future Minimum Rent (Det
Leases Future Minimum Rent (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Rental Payments, Capital Leases, 2017 | $ 25,749 |
Rental Payments, Capital Leases, 2018 | 26,226 |
Rental Payments, Capital Leases, 2019 | 25,235 |
Rental Payments, Capital Leases, 2020 | 25,727 |
Rental Payments, Capital Leases, 2021 | 27,104 |
Rental Payments, Capital Leases, Thereafter | 418,349 |
Rental Payments, Capital Leases, Total minimum payments | 548,390 |
Less interest | (336,676) |
Present value of minimum capital lease payments | 211,714 |
Rental Payments, Operating Leases, 2017 | 74,400 |
Rental Payments, Operating Leases, 2018 | 72,080 |
Rental Payments, Operating Leases, 2019 | 71,825 |
Rental Payments, Operating Leases, 2020 | 70,831 |
Rental Payments, Operating Leases, 2021 | 70,490 |
Rental Payments, Operating Leases, Thereafter | 898,439 |
Rental Payments, Operating Leases, Total minimum payments | 1,258,065 |
Rental Receipts, Capital Leases, 2017 | 34,841 |
Rental Receipts, Capital Leases, 2018 | 35,024 |
Rental Receipts, Capital Leases, 2019 | 35,120 |
Rental Receipts, Capital Leases, 2020 | 35,753 |
Rental Receipts, Capital Leases, 2021 | 37,180 |
Rental Receipts, Capital Leases, Thereafter | 572,645 |
Rental Receipts, Capital Leases, Total minimum payments | 750,563 |
Rental Receipts, Operating Leases, 2017 | 64,562 |
Rental Receipts, Operating Leases, 2018 | 64,155 |
Rental Receipts, Operating Leases, 2019 | 64,391 |
Rental Receipts, Operating Leases, 2020 | 64,144 |
Rental Receipts, Operating Leases, 2021 | 64,226 |
Rental Receipts, Operating Leases, Thereafter | 849,766 |
Rental Receipts, Operating Leases, Total minimum payments | 1,171,244 |
Rental Receipts, Owned Properties, 2017 | 52,840 |
Rental Receipts, Owned Properties, 2018 | 53,013 |
Rental Receipts, Owned Properties, 2019 | 53,980 |
Rental Receipts, Owned Properties, 2020 | 54,573 |
Rental Receipts, Owned Properties, 2021 | 56,362 |
Rental Receipts, Owned Properties, Thereafter | 996,857 |
Rental Receipts, Owned Properties, Total minimum payments | 1,267,625 |
Current portion of long-term debt [Member] | |
Operating Leased Assets [Line Items] | |
Capital Lease Obligations, Current | 1,902 |
Long-term Debt [Member] | |
Operating Leased Assets [Line Items] | |
Capital Lease Obligations, Noncurrent | $ 209,812 |
Leases Properties Leased to Thi
Leases Properties Leased to Third Parties (Details) - Property Subject to Operating Lease [Member] - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Leased To Others | $ 584,734 | $ 355,450 |
Property Leased To Others, Accumulated Depreciation | (110,166) | (63,476) |
Property Leased To Others, Net | 474,568 | 291,974 |
Land | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Leased To Others | 271,160 | 165,667 |
Buildings and improvements | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Leased To Others | 312,067 | 188,621 |
Office, restaurant, and transportation equipment | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property Leased To Others | $ 1,507 | $ 1,162 |
Leases Net Investment in Direct
Leases Net Investment in Direct Financing Lease (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Jan. 03, 2016 |
Capital Leased Assets [Line Items] | ||
Future minimum rental receipts | $ 401,452 | $ 200,213 |
Unearned income | (277,747) | (135,426) |
Net investment in direct financing leases | 123,705 | 64,787 |
Accounts and notes receivable [Member] | ||
Capital Leased Assets [Line Items] | ||
Net current investment in direct financing leases | (101) | (25) |
Other assets [Member] | ||
Capital Leased Assets [Line Items] | ||
Net non-current investment in direct financing leases | $ 123,604 | $ 64,762 |
Guarantees and Other Commitm125
Guarantees and Other Commitments and Contingencies Franchisee Image Activation Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2014 | Jan. 01, 2017 | |
Other commitments[Line Items] | ||
Letters of Credit Outstanding, Amount | $ 33,004 | |
General and Administrative Expense [Member] | ||
Other commitments[Line Items] | ||
Franchisee Incentive Program, Cost | $ 4,369 | |
Standby Letters of Credit [Member] | ||
Other commitments[Line Items] | ||
Letters of Credit Outstanding, Amount | $ 6,000 |
Guarantees and Other Commitm126
Guarantees and Other Commitments and Contingencies Other Loan Guarantees (Details) CAD in Thousands, $ in Thousands | Jan. 01, 2017USD ($)yr | Dec. 28, 2014CAD | Dec. 30, 2012USD ($) |
New store development and equipment financing [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 955 | ||
New store development and equipment financing [Member] | Other Liabilities [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 135 | ||
Guarantee of Indebtedness of Others [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 1,317 | $ 2,000 | |
Guarantee Obligations, Reduction Period | yr | 5 | ||
Guarantor Obligations, Current Carrying Value | $ 145 | ||
Canada, Dollars | Guarantee of Indebtedness of Others [Member] | Other Liabilities [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | CAD | CAD 2,300 |
Guarantees and Other Commitm127
Guarantees and Other Commitments and Contingencies Lease Guarantees (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 62,909 |
Indirect Guarantee of Indebtedness [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 712 |
Guarantees and Other Commitm128
Guarantees and Other Commitments and Contingencies Insurance (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Other commitments[Line Items] | |
Accrued Risk Insurance | $ 32,774 |
Accrued Health Insurance | 3,265 |
Insurance Claims [Member] | |
Other commitments[Line Items] | |
Loss Contingency, Range of Possible Loss per Occurrence, Maximum | $ 500 |
Guarantees and Other Commitm129
Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands | Jan. 01, 2017USD ($) |
Guarantor Obligations [Line Items] | |
Letters of Credit Outstanding, Amount | $ 33,004 |
Collateral Supporting Letters of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Letters of Credit Outstanding, Amount | $ 6,165 |
Guarantees and Other Commitm130
Guarantees and Other Commitments and Contingencies Beverage Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Long-term Purchase Commitment [Line Items] | |||
Purchase Obligation, Due in Next Twelve Months | $ 8,900 | ||
Purchase Obligation, Due in Second Year | 9,200 | ||
Purchase Obligation, Due in Third Year | 10,400 | ||
Purchase Obligation, Due in Fourth Year | 10,400 | ||
Purchase Obligation, Due in Fifth Year | 10,400 | ||
Purchase Obligation | 49,300 | ||
Purchase Obligation, Purchases During Period | 12,839 | $ 15,720 | $ 13,918 |
Accounts Payable [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Amount Due from (to) Vendor for Difference between Estimated Annual Usage and Contractual Terms | $ (43) |
Guarantees and Other Commitm131
Guarantees and Other Commitments and Contingencies Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Capital expenditures included in accounts payable | $ 11,325 | $ 31,468 | $ 45,409 |
Accounts Payable [Member] | |||
Capital expenditures included in accounts payable | $ 11,325 |
Transactions with Related Pa132
Transactions with Related Parties Related Party Transaction Summary (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
Mar. 30, 2014USD ($) | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Mar. 30, 2014 | Jan. 01, 2011USD ($)ft² | |
QSCC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Area of Real Estate Property | ft² | 14,333 | |||||
Annual Base Rental | $ 215 | $ 176 | ||||
QSCC [Member] | Patronage Dividends [Domain] | Cost of Sales [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 890 | $ 1,265 | $ 1,516 | |||
QSCC [Member] | Lease Income [Domain] | General and Administrative Expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 193 | 185 | 185 | |||
The Management Company [Member] | Use of company-owned aircraft [Domain] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 0 | 0 | 375 | |||
Citation Air [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 3 years | |||||
Former Executives [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Credit for Aircraft Fees Paid by Related Party | $ 375 | |||||
TimWen [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
TimWen lease expense | 11,602 | 11,843 | 6,064 | |||
TimWen [Member] | Cost of Sales [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
TimWen lease expense | 11,806 | 12,059 | 6,313 | |||
TimWen [Member] | General and Administrative Expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 204 | $ 216 | $ 249 |
Transactions with Related Pa133
Transactions with Related Parties Other Related Party Transactions (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 17, 2015USD ($)$ / sharesshares | Mar. 24, 2014USD ($)Restaurant | Mar. 30, 2014USD ($) | Dec. 28, 2014USD ($)Restaurant | Dec. 29, 2013investment | May 29, 2015 |
Related Party Transaction [Line Items] | ||||||
Percentage of Outstanding Shares Owned by the Trian Group | 24.80% | |||||
Significant Changes, Franchises Sold | Restaurant | 255 | |||||
Arizona Restaurant Company [Domain] | ||||||
Related Party Transaction [Line Items] | ||||||
Significant Changes, Franchises Sold | Restaurant | 40 | |||||
Related party ownership percentage of franchisee | 10.00% | |||||
Related Party Transaction, Purchase Price of Assets Sold to Related Party | $ 21,000 | |||||
Number of restaurants to be developed | Restaurant | 5 | |||||
Number of Restaurants to be Remodeled | Restaurant | 7 | |||||
Due to Related Parties, Current | $ 27 | |||||
280 BT [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transactions, Number of Remaining Co-Investments | investment | 1 | |||||
280 BT Wendy's [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Subsidiary, Ownership Percentage | 80.10% | |||||
Related Party Transaction, Distribution from Related Party Investment | $ 22 | |||||
280 BT - Former Management [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Subsidiary, Ownership Percentage | 11.20% | |||||
Related Party Transaction, Distribution from Related Party Investment | $ 5 | |||||
280 BT, Investors [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Investment Subsidiary, Ownership Percentage | 8.70% | |||||
Purchase agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Treasury Stock, Shares, Acquired | shares | 18,416 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 11.45 | |||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 210,867 |
Legal and Environmental Matt134
Legal and Environmental Matters (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($)Civil_complaints | Jul. 29, 2016Plaintiff | Jul. 22, 2016DefendantsPlaintiff | |
Loss Contingency [Abstract] | |||
Accruals for legal and environmental matters | $ | $ 1,227 | ||
Number of Plaintiffs in a Civil Complaint | 6 | 5 | |
Number of Civil Complaints | Civil_complaints | 4 | ||
Number of Subsidiaries as Defendants in a Civil Complaint | Defendants | 2 | ||
Number of Plaintiffs in a Civil Complaint Financial Institutions | 22 |
Advertising Costs and Funds (De
Advertising Costs and Funds (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017USD ($)funds | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | |
Restricted Assets and Liabilities | |||
Number of Advertising Funds | funds | 2 | ||
Advertising funds restricted assets | $ 75,760 | $ 67,399 | |
Advertising funds restricted liabilities | 75,760 | 67,399 | |
Advertising Expense | 41,064 | 64,312 | $ 73,454 |
Restricted Assets and Liabilities [Member] | |||
Restricted Assets and Liabilities | |||
Cash and cash equivalents | 19,359 | 13,704 | |
Accounts and notes receivable | 49,983 | 50,231 | |
Other assets | 6,418 | 3,464 | |
Advertising funds restricted assets | 75,760 | 67,399 | |
Accounts payable | 8,362 | 3,872 | |
Accrued expenses and other current liabilities | 71,068 | 64,603 | |
Member's deficit | (3,670) | (1,076) | |
Advertising funds restricted liabilities | $ 75,760 | $ 67,399 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 309,901 | $ 364,012 | $ 382,718 | $ 378,787 | $ 464,365 | $ 464,629 | $ 489,534 | $ 451,769 | $ 1,435,418 | $ 1,870,297 | $ 1,998,502 |
Properties | 1,192,339 | 1,227,944 | 1,192,339 | 1,227,944 | 1,241,170 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,373,345 | 1,749,131 | 1,734,164 | ||||||||
Properties | 1,162,006 | 1,198,553 | 1,162,006 | 1,198,553 | 1,202,545 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 45,959 | 104,003 | 247,792 | ||||||||
Properties | 30,257 | 29,296 | 30,257 | 29,296 | 38,538 | ||||||
Other International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 16,114 | 17,163 | 16,546 | ||||||||
Properties | $ 76 | $ 95 | $ 76 | $ 95 | $ 87 |
Quarterly Financial Informat137
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Quarterly Financial Data Table [Abstract] | |||||||||||
Revenues | $ 309,901 | $ 364,012 | $ 382,718 | $ 378,787 | $ 464,365 | $ 464,629 | $ 489,534 | $ 451,769 | $ 1,435,418 | $ 1,870,297 | $ 1,998,502 |
Cost of sales | 140,865 | 186,546 | 202,554 | 214,736 | 272,316 | 291,524 | 315,122 | 305,111 | 744,701 | 1,184,073 | 1,355,086 |
Operating profit | 79,215 | 106,088 | 65,648 | 63,829 | 116,312 | 55,939 | 64,308 | 37,911 | 314,780 | 274,470 | 242,588 |
Income from continuing operations | 88,681 | 8,323 | 24,825 | 18,150 | 129,624 | 139,979 | 116,424 | ||||
Net income (loss) from discontinued operations | (2,825) | (739) | 15,370 | 9,357 | 0 | 21,163 | 5,010 | ||||
Net income | $ 28,891 | $ 48,890 | $ 26,480 | $ 25,363 | $ 85,856 | $ 7,584 | $ 40,195 | $ 27,507 | $ 129,624 | $ 161,142 | $ 121,434 |
Basic income (loss) per share: | |||||||||||
Continuing operations | $ 0.32 | $ 0.03 | $ 0.07 | $ 0.05 | $ 0.49 | $ 0.43 | $ 0.31 | ||||
Discontinued operations | (0.01) | 0 | 0.04 | 0.03 | 0 | 0.07 | 0.01 | ||||
Basic income per share | $ 0.11 | $ 0.19 | $ 0.10 | $ 0.09 | 0.31 | 0.03 | 0.11 | 0.08 | 0.49 | 0.50 | 0.33 |
Diluted income (loss) per share: | |||||||||||
Continuing operations | 0.32 | 0.03 | 0.07 | 0.05 | 0.49 | 0.43 | 0.31 | ||||
Discontinued operations | (0.01) | 0 | 0.04 | 0.03 | 0 | 0.06 | 0.01 | ||||
Diluted income per share | $ 0.11 | $ 0.18 | $ 0.10 | $ 0.09 | $ 0.31 | $ 0.03 | $ 0.11 | $ 0.07 | $ 0.49 | $ 0.49 | $ 0.32 |
System optimization gains, net | $ 23,825 | $ 37,756 | $ 8,426 | $ 59,258 | $ 15,654 | $ 71,931 | $ 74,009 | $ 91,510 | |||
Reorganization and realignment costs | 2,217 | $ 2,129 | $ 2,487 | 3,250 | 5,264 | $ 5,754 | 6,279 | $ 4,613 | 10,083 | 21,910 | 31,903 |
Impairment of long-lived assets | $ 3,250 | $ 5,525 | 7,105 | 11,533 | 10,018 | 16,241 | 25,001 | 19,613 | |||
Gain (Loss) on Sale of Loans and Leases | $ 11,606 | ||||||||||
Loss on early extinguishment of debt | $ (7,295) | $ 0 | $ (7,295) | $ 0 | |||||||
Arby's Restaurant Group, Inc [Member] | |||||||||||
Diluted income (loss) per share: | |||||||||||
Distributions, including dividends | $ 54,911 |