Transactions with Related Parties

9 Months Ended

Sep. 30, 2012

Transactions with Related Parties [Abstract]

Transactions with Related Parties

Transactions with Related Parties

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

	Nine Months Ended
	September 30, 2012			October 2, 2011
SSG agreement (a)	$	—		$	(2,275	)
Subleases with related parties (b)	(145		)	(157		)
Transactions with the Management Company (c):
Advisory fees	$	—		$	500
Sublease income	(683		)	(1,225		)
Use of company-owned aircraft (d)	(92		)	(100		)
Liquidation services agreement	—			220
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 Company received $145 and $134 of sublease income from QSCC during the first nine months of 2012 and 2011, respectively, and $23 of sublease income from SSG during the first nine months of 2011, both of which have been recorded as reductions of “General and administrative.”

Transactions with the Management Company

(c) The Company had the following transactions with a management company that was formed by the Former Executives and a director, who was our former Vice Chairman (the “Management Company”): (1) paid service fees of $500 in connection with a services agreement that expired on June 30, 2011, and recorded amortization of $220 related to fees paid for assistance in the sale, liquidation or other disposition of certain of our investments under a liquidation services agreement, which also expired on June 30, 2011, both of which are included in “General and administrative” in the first nine months of 2011, and (2) recorded income of $683 and $1,225 during the first nine months of 2012 and 2011, respectively, under an office sublease agreement, which expired in May 2012 and has been recorded as a reduction of “General and administrative.”

(d) A company-owned aircraft was being leased under an aircraft lease agreement with TASCO, LLC (an affiliate of the Management Company) (“TASCO”), which expired on June 30, 2012. The Company and TASCO entered into an extension of that lease agreement that extended the lease term to July 31, 2012, and effective as of August 1, 2012, entered into an amended and restated lease agreement (the “Lease”) that will expire on January 5, 2014. Under the Lease, all expenses related to the ownership, maintenance and operation of the aircraft will be paid by TASCO, subject to the limitation that if the amount of annual ongoing maintenance, hangar, insurance and other expenses, or the estimated amount of other scheduled maintenance expenses, exceeds the amounts stated in the Lease, then TASCO can either pay such amounts or terminate the Lease. In addition, if extraordinary and/or unscheduled repairs and/or maintenance for the aircraft become necessary and the estimated cost thereof exceeds the amount stated in the Lease, then TASCO can either pay such amounts or terminate the Lease. In the event of termination, TASCO will not be obligated to perform or pay for such repairs and/or maintenance following the date of termination. Under the previous aircraft lease agreement, the Company recorded lease income of $92 and $100 during the first nine months of 2012 and 2011, respectively, as a reduction of “General and administrative.”

Transactions with Other Related Parties

During the third quarter of 2012, Matthew Peltz was appointed to the ARG Holding Corporation Board of Directors.  A subsidiary of the Company owns 18.5% of the common stock of ARG Holding Corporation.  Matthew Peltz is the son of the Company's Chairman of the Board.