Fair Value Measurements (Tables)

3 Months Ended

Apr. 02, 2017

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:



	April 2, 2017				January 1, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Measurements
Financial assets
Cash equivalents	$	2,341	$	2,341	$	5,335	$	5,335	Level 1
Non-current cost method investments (a)	2,436		325,361		2,436		326,283		Level 3

Financial liabilities
Series 2015-1 Class A-2-I Notes (b)	861,875		862,763		864,063		857,349		Level 2
Series 2015-1 Class A-2-II Notes (b)	886,500		888,096		888,750		880,005		Level 2
Series 2015-1 Class A-2-III Notes (b)	492,500		479,198		493,750		474,543		Level 2
7% debentures, due in 2025 (b)	88,585		101,500		88,277		99,750		Level 2
Guarantees of franchisee loan obligations (c)	267		267		280		280		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
	April 2, 2017		Level 1		Level 2		Level 3
Held and used	$	—	$	—	$	—	$	—
Held for sale	1,074		—		—		1,074
Total	$	1,074	$	—	$	—	$	1,074



			Fair Value Measurements
	January 1, 2017		Level 1		Level 2		Level 3
Held and used	$	5,462	$	—	$	—	$	5,462
Held for sale	1,552		—		—		1,552
Total	$	7,014	$	—	$	—	$	7,014