(10) Goodwill and Other Intangible Assets

12 Months Ended

Jan. 01, 2012

Goodwill and Other Intangible Assets [Abstract]

At January 1, 2012 and January 2, 2011, substantially all of our goodwill was associated with Wendy’s North America restaurants. The following is a summary of the components of goodwill:



	2011			2010
Balance at beginning of year:
Wendy’s Restaurants goodwill	$	1,370,996		$	1,368,371
Accumulated impairment losses	(482,075		)	(482,075		)
Total Wendy’s Restaurants goodwill	888,921			886,296
Corporate goodwill adjustment	(5,277		)	(5,277		)
Total The Wendy’s Company goodwill	883,644			881,019
Changes in goodwill:
Arby’s goodwill sold, net of accumulated impairment losses of $482,075	(17,617		)	—
Other restaurant acquisitions and dispositions	5,626			—
Currency translation adjustment	(1,222		)	2,625
Balance at end of year:
Wendy’s Restaurants goodwill	875,708			1,370,996
Accumulated impairment losses	—			(482,075		)
Total Wendy’s Restaurants goodwill	875,708			888,921
Corporate goodwill adjustment	(5,277		)	(5,277		)
Total The Wendy’s Company goodwill	$	870,431		$	883,644

The following is a summary of the components of other intangible assets:



	Year End 2011						Year End 2010
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Non-amortizable:
Wendy’s trademarks	$	903,000	$	—	$	903,000	$	903,000	$	—	$	903,000
Amortizable:
Franchise agreements	353,262		54,853		298,409		353,771		38,077		315,694
Favorable leases	108,304		24,961		83,343		134,445		27,867		106,578
Reacquired rights under franchise agreements	1,215		1		1,214		15,716		4,172		11,544
Computer software	36,817		18,495		18,322		39,649		17,891		21,758
	$	1,402,598	$	98,310	$	1,304,288	$	1,446,581	$	88,007	$	1,358,574



Aggregate amortization expense:
Actual for fiscal year (a):
2009	$	34,398
2010	36,662
2011	33,181
Estimate for fiscal year:
2012	$	29,248
2013	28,457
2014	27,548
2015	25,261
2016	23,315
Thereafter	267,459

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(a)	Includes $2,763, $5,125 and $2,180 of impairment charges related to other intangible assets in 2011, 2010 and 2009, respectively, which have been recorded as a reduction in the cost basis of the related intangible asset.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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