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Guarantees and Other Commitments and Contingencies
9 Months Ended
Sep. 30, 2012
Guarantees and Other Commitments and Contingencies [Abstract]  
Guarantees and Other Commitments and Contingencies
Guarantees and Other Commitments and Contingencies

Except as described below, the Company did not have any significant changes to its guarantees, other commitments and contingencies as disclosed in the notes to our consolidated financial statements included in the Form 10-K.

Franchise Image Activation Incentive Program

In order to encourage franchisees to participate in the Company’s Image Activation program, which includes innovative exterior and interior restaurant designs for new and reimaged restaurants, the Company initiated a cash incentive program during the third quarter of 2012 for franchisees. The cash incentive program, which is for the reimaging of restaurants completed during 2013, totals $10,000 and is limited to a maximum of $100 for each franchisee.

Loan Guarantee

During the third quarter of 2012, Wendy’s provided a $2,000 guarantee to a lender for a franchisee, in connection with the refinancing of the franchisee’s debt which originated in 2007. Pursuant to the agreement, the guarantee is subject to an annual reduction over a five year period. Wendy's also received a $3,000 prepayment on the note receivable owed by the franchisee as part of the refinancing. As of September 30, 2012, Wendy’s has accrued a liability for the fair value of this guarantee of $220, the calculation for which was based upon a weighted average risk percentage established at the inception of the guarantee. See our Form 10-K for a description of our prior franchisee loan guarantees.

Japan Joint Venture Guarantee

In 2012, the Company (1) provided a guarantee to certain lenders to the Japan JV for which our joint venture partners have agreed, should it become necessary, to reimburse and otherwise indemnify us for their 51% share of the guarantee and (2) agreed to reimburse and otherwise indemnify our joint venture partners for our 49% share of the guarantee by our joint venture partners of a line of credit granted by a different lender to the Japan JV to fund working capital requirements. As of September 30, 2012, our portion of these contingent obligations totaled approximately $3,500 (¥273,900) based upon then current rates of exchange. The fair value of our guarantees is immaterial. Our obligations could total up to approximately $6,500 if our joint venture partners are unable to perform their reimbursement and indemnity obligations to us.

Capital Expenditures Commitments

As of September 30, 2012, the Company had approximately $21,700 of outstanding commitments for capital expenditures expected to be paid during the remainder of 2012, of which approximately $15,800 pertained to capital expenditures related to our Image Activation program.