(12) Transactions with Related Parties

3 Months Ended

Apr. 01, 2012

Transactions with Related Parties [Abstract]

Related Party Transactions

Transactions with Related Parties

The following is a summary of ongoing transactions between the Companies and their related parties, which are included in continuing operations and includes any updates and amendments since those reported in the Form 10-K:

	Three Months Ended
	April 1, 2012			April 3, 2011
SSG agreement (a)	$	—		$	(2,275	)
Subleases with related parties (b)	(49		)	(57		)
(The Wendy’s Company)
Transactions with the Management Company (c):
Advisory fees	$	—		$	250
Sublease income	(407		)	(408		)
Use of corporate aircraft	(38		)	(30		)
Liquidation services agreement	—			110
Distributions of proceeds to noncontrolling interests (see Note 4)	3,667			—

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Transactions with Purchasing Cooperatives

(a) In anticipation of the sale of Arby’s, effective April 2011, the activities of Strategic Sourcing Group Co-op, LLC (“SSG”) were transferred to Quality Supply Chain Co-op, Inc. (“QSCC”) and Arby’s independent purchasing cooperative (“ARCOP”). Wendy’s Restaurants had committed to pay approximately $5,145 of SSG expenses, which were expensed in 2010 and included in “General and administrative.” During the first quarter of 2011, the remaining accrued commitment of $2,275 was reversed and credited to “General and administrative.”

(b) The Companies received $49 and $39 of sublease income from QSCC during the first quarter of 2012 and 2011, respectively, and $18 of sublease income from SSG during the first quarter 2011.

Transactions with the Management Company

(c) The Wendy’s Company had the following transactions with the Management Company; (1) paid advisory fees of $250 in connection with a services agreement and recorded amortization of $110 related to fees paid for assistance in the sale, liquidation or other disposition of certain of our investments, both of which are included in “General and administrative” in the first quarter of 2011 and (2) recorded income of $407 and $408 under an office sublease agreement, which expires in May 2012, and income of $38 and $30 from TASCO, LLC (an affiliate of the Management Company) under an aircraft lease agreement in the first quarter of 2012 and 2011, respectively, which are included as an offset to “General and administrative.”

(Wendy’s Restaurants)

The following is a summary of continuing transactions between Wendy’s Restaurants and The Wendy’s Company:

	Three Months Ended
	April 1, 2012		April 3, 2011
Payments for Federal and state income tax (d)	$	—	$	13,078
Share-based compensation (e)	2,356		2,419
Expense under management service agreements (f)	—		1,261

_____________________

(d) Wendy’s Restaurants made cash payments to The Wendy’s Company under a tax sharing agreement as discussed in Note 8.

(e) Wendy’s Restaurants incurs share-based compensation costs for The Wendy’s Company common stock awards issued to certain employees under The Wendy’s Company equity plan. Such compensation costs are allocated by The Wendy’s Company to Wendy’s Restaurants and are recorded as capital contributions from The Wendy’s Company.

(f) Wendy’s Restaurants incurred $1,261 for management services by The Wendy’s Company during the first quarter of 2011 under a management services agreement which was terminated upon the sale of Arby’s. Such fees were included in “General and administrative” and were settled through Wendy’s Restaurants’ intercompany account with The Wendy’s Company.