Fair Value Measurements (Tables)

9 Months Ended

Oct. 02, 2016

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:



	October 2, 2016				January 3, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Measurements
Financial assets
Cash equivalents	$	88,247	$	88,247	$	45,339	$	45,339	Level 1
Non-current cost method investments (a)	2,726		301,991		2,828		249,870		Level 3

Financial liabilities
Series 2015-1 Class A-2-I Notes (b)	866,250		866,943		872,813		849,106		Level 2
Series 2015-1 Class A-2-II Notes (b)	891,000		900,088		897,750		879,795		Level 2
Series 2015-1 Class A-2-III Notes (b)	495,000		491,090		498,750		484,648		Level 2
7% debentures, due in 2025 (b)	87,971		101,000		87,057		100,500		Level 2
Guarantees of franchisee loan obligations (c)	301		301		851		851		Level 3

_______________

(a)

The fair value of our indirect investment in Arby’s Restaurant Group, Inc. (“Arby’s”) is based on applying a multiple to Arby’s adjusted earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments.


(b)	The fair values were based on quoted market prices in markets that are not considered active markets.

(c)

Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for new restaurant development and equipment financing. In addition, during 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception and adjusted for a history of defaults.

Fair Value, Nonrecurring [Table Text Block]



			Fair Value Measurements						Nine Months Ended October 2, 2016 Total Losses
	October 2, 2016		Level 1		Level 2		Level 3		Nine Months Ended October 2, 2016 Total Losses
Held and used	$	5,471	$	—	$	—	$	5,471	$	12,768
Held for sale	1,642		—		—		1,642		223
Total	$	7,113	$	—	$	—	$	7,113	$	12,991



			Fair Value Measurements						2015 Total Losses
	January 3, 2016		Level 1		Level 2		Level 3		2015 Total Losses
Held and used	$	10,244	$	—	$	—	$	10,244	$	22,346
Held for sale	4,328		—		—		4,328		2,655
Total	$	14,572	$	—	$	—	$	14,572	$	25,001