Goodwill And Other Intangible Assets

12 Months Ended

Dec. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

Goodwill activity for 2019 and 2018 was as follows:

	Year End
	December 29, 2019			December 30, 2018
Balance at beginning of year:
Goodwill, gross	$	757,281		$	752,731
Accumulated impairment losses (a)	(9,397		)	(9,397		)
Goodwill, net	747,884			743,334
Changes in goodwill:
Restaurant acquisitions (b)	6,931			7,038
Restaurant dispositions	—			(208		)
Currency translation adjustment	1,096			(2,280		)
Balance at end of year:
Goodwill, gross	765,308			757,281
Accumulated impairment losses (a)	(9,397		)	(9,397		)
Goodwill, net	$	755,911		$	747,884

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(a) Accumulated impairment losses resulted from the full impairment of goodwill of the Wendy’s international franchise restaurants during the fourth quarter of 2013.

(b) 2019 includes an adjustment to the fair value of net assets acquired in connection with the acquisition of franchised restaurants during 2018. See Note 4 for further information.

As discussed in Note 26, the realignment of our management and operating structure resulted in a change in our operating segments and reporting units as of December 29, 2019. We reallocated goodwill to the new reporting units using a relative fair value approach. In addition, we completed a quantitative assessment of any potential goodwill impairment for our previous North America reporting unit immediately prior to the reallocation and determined the reporting unit was not impaired.

The following table sets forth the reallocation of goodwill to the Company’s segments as of December 29, 2019:

	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Goodwill	$	602,491	$	30,872	$	122,548	$	755,911

The following is a summary of the components of other intangible assets and the related amortization expense:

	Year End
	December 29, 2019							December 30, 2018
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Indefinite-lived:
Trademarks	$	903,000	$	—		$	903,000	$	903,000	$	—		$	903,000
Definite-lived:
Franchise agreements	348,825		(187,063		)	161,762		348,200		(170,134		)	178,066
Favorable leases	166,098		(47,695		)	118,403		233,990		(79,776		)	154,214
Reacquired rights under franchise agreements	10,172		(2,766		)	7,406		11,807		(1,971		)	9,836
Software	181,666		(125,025		)	56,641		154,919		(105,882		)	49,037
	$	1,609,761	$	(362,549	)	$	1,247,212	$	1,651,916	$	(357,763	)	$	1,294,153

Aggregate amortization expense:
Actual for fiscal year:
2017	$	47,302
2018	52,064
2019	53,182
Estimate for fiscal year:
2020	$	46,666
2021	41,362
2022	37,048
2023	33,854
2024	29,383
Thereafter	155,899