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System Optimization (Gains) Losses, Net (Tables)
 12 Months Ended
Dec. 30, 2018
Property, Plant and Equipment  
Summary of Disposition Activity
 
Year End
 
December 30, 2018
 
December 31, 2017
Owned:
 
 
 
Land
$
377,277

 
$
379,297

Buildings and improvements
507,219

 
503,955

Leasehold improvements
403,896

 
390,958

Office, restaurant and transportation equipment
266,030

 
255,632

Leased:
 
 
 
Capital leases (a)
223,156

 
222,878

 
1,777,578

 
1,752,720

Accumulated depreciation and amortization (b)
(564,342
)
 
(489,661
)
 
$
1,213,236

 
$
1,263,059

_______________

(a)
These assets principally include buildings and improvements.

(b)
Includes $33,187 and $22,688 of accumulated amortization related to capital leases at December 30, 2018 and December 31, 2017, respectively.
System Optimization  
Property, Plant and Equipment  
Summary of Disposition Activity
The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
 
Year Ended
 
2018
 
2017
 
2016
Number of restaurants sold to franchisees
3

 
—

 
310

 
 
 
 
 
 
Proceeds from sales of restaurants
$
1,436

 
$
—

 
$
251,446

Net assets sold (a)
(1,370
)
 
—

 
(115,052
)
Goodwill related to sales of restaurants (b)
(208
)
 
—

 
(41,561
)
Net favorable (unfavorable) leases (c)
220

 
—

 
(24,592
)
Other
11

 
—

 
(3,103
)
 
89

 
—

 
67,138

Post-closing adjustments on sales of restaurants (d)
445

 
2,541

 
(1,411
)
Gain on sales of restaurants, net
534

 
2,541

 
65,727

(Loss) gain on sales of other assets, net (e)
(71
)
 
2,018

 
6,204

Loss on DavCo and NPC Transactions
—

 
(43,635
)
 
—

System optimization gains (losses), net
$
463

 
$
(39,076
)
 
$
71,931

_______________

(a)
Net assets sold consisted primarily of equipment.

(b)
Goodwill disposed of as a result of the sale of Company-operated restaurants during 2016 included goodwill of $11,429 that had been reclassified to assets held for sale during 2015.  See Note 10 for further information.

(c)
During 2016, the Company recorded favorable lease assets of $7,612 and unfavorable lease liabilities of $32,204 as a result of leasing and/or subleasing land, buildings and/or leasehold improvements to franchisees, in connection with sales of restaurants.

(d)
2018 and 2017 include (1) cash proceeds, net of payments, of $6 and $294, respectively, related to post-closing reconciliations with franchisees and (2) the recognition of deferred gains of $1,029 and $312, respectively, as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. 2017 also includes the recognition of a deferred gain of $1,822 (C$2,300) resulting from the release of a guarantee provided by Wendy’s to a lender on behalf of a franchisee in connection with the sale of eight Canadian restaurants to the franchisee during 2014.

(e)
During 2018, 2017 and 2016, Wendy’s received cash proceeds of $1,781, $10,534 and $10,727, respectively, primarily from the sale of surplus properties. 2017 also includes the recognition of a deferred gain of $375 related to the sale of a share in an aircraft.
Summary of DavCo and NPC Transactions
The following is a summary of the activity recorded as a result of the DavCo and NPC Transactions:
 
Year Ended
 
2017
Acquisition (a)
 
Total consideration paid
$
86,788

Identifiable assets and liabilities assumed:
 
Net assets held for sale
70,688

Capital lease assets
49,360

Deferred taxes
27,830

Capital lease obligations
(97,797
)
Net unfavorable leases (b)
(22,330
)
Other liabilities (c)
(6,924
)
Total identifiable net assets
20,827

Goodwill (d)
$
65,961

 
 
Disposition
 
Proceeds
$
70,688

Net assets sold
(70,688
)
Goodwill (d)
(65,961
)
Net favorable leases (e)
24,034

Other (f)
(1,708
)
Loss on DavCo and NPC Transactions
$
(43,635
)
_______________

(a)
The fair values of the identifiable intangible assets and taxes related to the acquisition were provisional amounts as of December 31, 2017, pending final purchase accounting adjustments. The Company finalized the purchase price allocation during 2018 with no differences from the provisional amounts previously reported. The Company utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuation process.

(b)
Includes favorable lease assets of $1,229 and unfavorable lease liabilities of $23,559.

(c)
Includes a supplemental purchase price liability recorded to “Accrued expenses and other current liabilities” of $6,269, which was settled during 2018 upon the resolution of certain lease-related matters.

(d)
Includes tax deductible goodwill of $21,795.

(e)
The Company recorded favorable lease assets of $30,068 and unfavorable lease liabilities of $6,034 as a result of subleasing land, buildings and leasehold improvements to NPC.

(f)
Includes cash payments for selling and other costs associated with the transaction.