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System Optimization Gains, Net
 12 Months Ended
Jan. 03, 2016
Property, Plant and Equipment [Line Items]  
System Optimization Gains, Net
Properties

 
Year End
 
2015
 
2014
Owned:
 
 
 
Land
$
379,982

 
$
383,356

Buildings and improvements
508,186

 
490,762

Office, restaurant and transportation equipment
308,274

 
384,660

Leasehold improvements
371,734

 
365,441

Leased:
 
 
 
Capital leases (a)
65,873

 
39,762

 
1,634,049

 
1,663,981

Accumulated depreciation and amortization (b)
(406,105
)
 
(422,811
)
 
$
1,227,944

 
$
1,241,170

_______________

(a)
These assets principally include buildings and improvements.

(b)
Includes $9,827 and $9,798 of accumulated amortization related to capital leases at January 3, 2016 and December 28, 2014, respectively.

In connection with the reimaging of restaurants as part of our Image Activation program, we recorded $8,607 and $19,353 of accelerated depreciation and amortization during the years ended January 3, 2016 and December 28, 2014, respectively, on certain long-lived assets to reflect their use over shortened estimated useful lives.
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-owned restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as helping to facilitate 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-owned 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-owned restaurants to franchisees, respectively, which included the sale of all of its company-owned restaurants in Canada. In addition, during 2015 the Company helped facilitate the transfer of 71 restaurants between franchisees. The Company expects to complete its plan to reduce its company-owned restaurant ownership to approximately 5% with the sale of approximately 315 restaurants during 2016, of which 99 restaurants were classified as held for sale as of January 3, 2016.

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 5.

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
 
Year Ended
 
2015
 
2014 (a) (b)
 
2013 (a)
Number of restaurants sold to franchisees
327

 
237

 
244

 
 
 
 
 
 
Proceeds from sales of restaurants
$
193,860

 
$
128,292

 
$
130,154

Net assets sold (c)
(86,493
)
 
(53,043
)
 
(60,895
)
Goodwill related to sales of restaurants
(29,970
)
 
(18,032
)
 
(20,578
)
Net (unfavorable) favorable leases (d)
(846
)
 
34,335

 
(57
)
Other (e)
(5,499
)
 
(5,692
)
 
(1,957
)
 
71,052

 
85,860

 
46,667

Post-closing adjustments on sales of restaurants (f)
1,285

 
(1,280
)
 
—

Gain on sales of restaurants, net
72,337

 
84,580

 
46,667

 
 
 
 
 
 
Gain on sales of other assets, net (g)
1,672

 
5,089

 
4,609

System optimization gains, net
$
74,009

 
$
89,669

 
$
51,276

_______________

(a)
Reclassifications have been made to the prior year presentation to include sales of restaurants previously reported in “Other operating expense, net” to conform to the current year presentation. Reclassifications have also been made to reflect the Bakery’s gain on sales of other assets as discontinued operations. See Note 1 for further details.

(b)
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 4 for further details.

(c)
Net assets sold consisted primarily of cash, inventory and equipment.

(d)
During 2015, 2014 and 2013, the Company recorded favorable lease assets of $34,437, $63,120 and $37,749, respectively, and unfavorable lease liabilities of $35,283, $28,785 and $37,806, 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)
During 2015, notes receivable from franchisees received in connection with sales of restaurants in 2014 were repaid and as a result, we recognized the related gain on the sales of restaurants of $4,492.
(g)
During 2015, 2014 and 2013, Wendy’s received cash proceeds of $10,478, $17,263 and $18,844, respectively, primarily from the sale of surplus properties as well as from the sale of a company-owned aircraft during 2014 and franchisees exercising options to purchase previously leased properties in 2013.

Assets Held for Sale
 
January 3,
2016
 
December 28, 2014 (a)
Number of restaurants classified as held for sale
99

 
106

Net restaurant assets held for sale (b)
$
50,262

 
$
25,266

 
 
 
 
Other assets held for sale (b)
$
7,124

 
$
13,469

_______________

(a)
Reclassifications have been made to the prior year presentation to include restaurants previously excluded from our system optimization initiative to conform to the current year presentation. See Note 1 for further details.

(b) Net restaurant assets held for sale include company-owned restaurants and consist primarily of cash, inventory, equipment and an estimate of allocable goodwill. Other assets held for sale primarily consist of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.”

Subsequent to January 3, 2016, the Company completed the sale of certain assets used in the operation of 17 Wendy’s company-owned restaurants for cash proceeds of approximately $7,900, subject to customary purchase price adjustments.