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Reorganization and Realignment Costs
 9 Months Ended
Sep. 29, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure Reorganization and Realignment Costs

The following is a summary of the initiatives included in “Reorganization and realignment costs:”
 
Three Months Ended
 
Nine Months Ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
G&A realignment
$
396

 
$
629

 
$
4,695

 
$
6,375

System optimization initiative
7

 
312

 
76

 
316

Reorganization and realignment costs
$
403

 
$
941

 
$
4,771

 
$
6,691



General and Administrative (“G&A”) Realignment

In May 2017, the Company initiated a plan to further reduce its G&A expenses. Additionally, the Company announced in May 2019 changes to its leadership structure that includes the creation of two new positions, a President, U.S and Chief Commercial Officer and a President, International and Chief Development Officer, and the elimination of the Chief Operations Officer position. During the nine months ended September 29, 2019 and September 30, 2018, the Company recognized costs related to the plan totaling $4,695 and $6,375, respectively, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $2,700, comprised of (1) severance and related employee costs of approximately $1,900, (2) recruitment and relocation costs of approximately $450, (3) third-party and other costs of approximately $50 and (4) share-based compensation of approximately $300. The Company expects to incur total costs aggregating approximately $35,000 to $38,000 related to the plan.

As a result of the realignment of our management and operating structure as described above, the Company is continuing to evaluate the impact these changes will have on its existing operating segment structure. The Company currently expects to report its results in the following three segments beginning with our Annual Report on Form 10-K for the fiscal year ended December 29, 2019: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development.

The following is a summary of the activity recorded as a result of the G&A realignment plan:
 
Three Months Ended
 
Nine Months Ended
 
Total
Incurred Since Inception
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
 
Severance and related employee costs
$
214

 
$
57

 
$
2,816

 
$
3,168

 
$
21,569

Recruitment and relocation costs
58

 
200

 
654

 
708

 
2,220

Third-party and other costs
25

 
39

 
112

 
971

 
2,222

 
297

 
296

 
3,582

 
4,847

 
26,011

Share-based compensation (a)
99

 
333

 
1,113

 
1,528

 
7,797

Termination of defined benefit plans
—

 
—

 
—

 
—

 
1,335

Total G&A realignment
$
396

 
$
629

 
$
4,695

 
$
6,375

 
$
35,143

_______________

(a)
Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A realignment plan.

The accruals for our G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $3,491 and $507 as of September 29, 2019, respectively, and $6,817 and $1,432 as of September 30, 2018, respectively. The tables below present a rollforward of our accruals for the plan.
 
Balance
December 30,
2018
 
Charges
 
Payments
 
Balance
September 29,
2019
Severance and related employee costs
$
7,241

 
$
2,816

 
$
(6,216
)
 
$
3,841

Recruitment and relocation costs
83

 
654

 
(580
)
 
157

Third-party and other costs
—

 
112

 
(112
)
 
—

 
$
7,324

 
$
3,582

 
$
(6,908
)
 
$
3,998


 
Balance
December 31,
2017
 
Charges
 
Payments
 
Balance
September 30,
2018
Severance and related employee costs
$
12,093

 
$
3,168

 
$
(7,103
)
 
$
8,158

Recruitment and relocation costs
177

 
708

 
(794
)
 
91

Third-party and other costs
—

 
971

 
(971
)
 
—

 
$
12,270

 
$
4,847

 
$
(8,868
)
 
$
8,249



System Optimization Initiative

The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. The Company has incurred costs of $72,268 under the initiative since inception and does not expect to incur any additional costs during the remainder of 2019.