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(16) Share-Based Compensation (Tables)
 12 Months Ended
Jan. 01, 2012
Share-based Compensation [Abstract]  
Schedule of Share-based Compensation, Stock Options, Activity
The table below summarizes 2011 activity and includes certain additional information for The Wendy’s Company stock options.
 
Common Stock Options
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life in Years
 
Aggregate
Intrinsic
Value
Outstanding at
     January 2, 2011
28,074

 
$
6.45

 
 
 

Granted
5,715

 
$
5.00

 
 
 
 
Exercised
(1,477
)
 
$
4.25

 
 
 

Forfeited / expired
(2,053
)
 
$
8.22

 
 
 
 
Outstanding at
     January 1, 2012
30,259

 
$
6.16

 
5.0

 
$
15,707

Vested or expected to vest at
     January 1, 2012
29,700

 
$
6.19

 
4.9

 
$
15,291

Exercisable at
     January 1, 2012
21,655

 
$
6.77

 
3.4

 
$
9,291
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair value of stock options on the date of grant was calculated utilizing the following weighted average assumptions:
 
2011
 
2010
 
2009
Risk-free interest rate
1.74
%
 
2.01
%
 
2.46
%
Expected option life in years
5.6

 
5.4

 
5.1

Expected volatility
45.2
%
 
45.2
%
 
49.6
%
Expected dividend yield
1.59
%
 
1.53
%
 
1.35
%
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
The following table summarizes the activity of The Wendy’s Company non-vested restricted shares for 2011:
 
Common Stock
 
Shares
 
Weighted
Average
Fair Value
Non-vested at January 2, 2011
1,053

 
$
4.59

Granted
721

 
$
5.01

Vested
(691
)
 
$
4.69

Forfeited
(40
)
 
$
4.50

Non-vested at January 1, 2012
1,043

 
$
4.82
Schedule of Share-based Payment Award, Performance Share Awards, Valuation Assumptions
The fair value of market condition awards granted in 2011 and 2010 was estimated on the date of the grant using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that the market conditions will be achieved, as noted in the table below:
 
2011
 
2010
Risk-free interest rate
0.61
%
 
0.93
%
Expected life in years
3.02

 
2.98

Expected volatility
52.0
%
 
55.0
%
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
The following table summarizes the activity of The Wendy’s Company non-vested performance shares for 2011:
 
Performance Condition Awards
 
Market Condition Awards
 
Shares
 
Weighted
Average
Fair Value
 
Shares
 
Weighted
Average
Fair Value
Non-vested at January 2, 2011
1,207

 
$
3.91

 
832

 
$
5.56

Granted
—

 
$
—

 
1,292

 
$
6.91

Dividend equivalent units issued (a)
17

 
$
—

 
21

 
$
—

Vested
(215
)
 
$
3.91

 
(431
)
 
$
6.56

Forfeited
(354
)
 
$
3.91

 
(273
)
 
$
5.72

Non-vested at January 1, 2012
655

 
$
3.91

 
1,441

 
$
6.46

_____________________

(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.
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
Total share-based compensation expense and related income tax benefit recognized in Wendy’s Restaurants consolidated statements of operations were as follows:
 
2011
 
2010
 
2009
The Wendy’s Company stock options
$
9,733

 
$
7,566

 
$
9,157

Restricted Shares
1,087

 
1,540

 
1,201

Performance Shares:
 
 
 
 
 
Performance Condition Shares
820

 
—

 
—

Market Condition Shares (a)
4,688

 
469

 
—

Compensation adjustments (b)
(361
)
 
—

 
—

Total share-based compensation expense (c)
15,967

 
9,575

 
10,358

Less: Income tax benefit
(5,949
)
 
(3,424
)
 
(3,720
)
Share-based compensation expense, net of income tax benefit
$
10,018

 
$
6,151

 
$
6,638

_____________________

(a)
Includes expense of $2,347 for the accelerated vesting of awards partially offset by a credit of $384 for awards that were canceled in conjunction with the sale of Arby’s and the relocation of the Companies’ Atlanta headquarters and the restaurant support center to Ohio.

(b)
Adjustments related to modifications of share-based compensation awards.

(c)
Excludes $700, $3,215 and $3,212 for 2011, 2010 and 2009, respectively, which is included in discontinued operations.

Total share-based compensation expense and related income tax benefit recognized in The Wendy’s Company consolidated statements of operations were as follows:
 
2011
 
2010
 
2009
Stock options
$
9,898

 
$
7,700

 
$
10,515

Restricted Shares
1,943

 
2,311

 
1,567

Performance Shares:
 
 
 
 
 
Performance Condition Shares
820

 
—

 
—

Market Condition Shares (a)
4,688

 
478

 
—

Compensation adjustments (b)
(361
)
 
—

 
—

Compensation expense credited to “Stockholders’ Equity” (c)
16,988

 
10,489

 
12,082

Dividends and related interest on the Restricted Shares
2

 
3

 
13

Total share-based compensation expense
16,990

 
10,492

 
12,095

Less: Income tax benefit
(6,338
)
 
(3,773
)
 
(4,380
)
Share-based compensation expense, net of income tax benefit
$
10,652

 
$
6,719

 
$
7,715


_____________________

(a)
Includes expense of $2,347 for the accelerated vesting of awards partially offset by a credit of $384 for awards that were canceled in conjunction with the sale of Arby’s and the relocation of the Companies’ Atlanta headquarters and restaurant support center to Ohio.

(b)
Adjustments related to modifications of share-based compensation awards.

(c)
Excludes $700, $3,215 and $3,212 for 2011, 2010 and 2009, respectively, which is included in discontinued operations.