XML 54 R38.htm IDEA: XBRL DOCUMENT v3.3.1.900
System Optimization Gains, Net (Tables)
 12 Months Ended
Jan. 03, 2016
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment [Table Text Block]
 
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.
Disclosure of Long Lived Assets Held-for-sale [Table Text Block]
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.”
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
 
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.