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Income Taxes
3 Months Ended
Mar. 31, 2013
Income Taxes [Abstract]  
Income Taxes
Income Taxes

The Company’s effective tax rate benefit for the three months ended March 31, 2013 and effective tax rate for the three months ended April 1, 2012 was 376.7% and 31.8%, respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 35% due to the effect of (1) the reversal of deferred tax liabilities on temporary differences related to investments in foreign subsidiaries which the Company now considers permanently invested outside of the U.S., (2) adjustments to our uncertain tax positions, (3) exclusion of the tax benefit of certain foreign ordinary losses not expected to be realized, (4) state income taxes net of federal benefit and (5) foreign rate differential.
During the three months ended March 31, 2013, the Company finalized its long-term investment plan with respect to the Company’s non-U.S. earnings. There are no plans to repatriate cash from, and Wendy’s intends to indefinitely reinvest undistributed earnings of, its non-U.S. subsidiaries. As such, the Company reversed $1,934 of deferred tax liabilities relating to investments in foreign subsidiaries which the Company now considers permanently invested outside of the U.S.
There were no significant changes to unrecognized tax benefits or related interest and penalties for the Company for the three months ended March 31, 2013 and April 1, 2012.
The Company participates in the Internal Revenue Service Compliance Assurance Process. During the three months ended March 31, 2013, we concluded, without adjustment, the examination of our January 1, 2012 tax return.