Goodwill And Other Intangible Assets

12 Months Ended

Jan. 03, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for 2020 and 2019 was as follows:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Balance at December 30, 2018:
Goodwill, gross	$	595,560	$	39,173	$	122,548	$	757,281
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	595,560		29,776		122,548		747,884
Changes in goodwill:
Restaurant acquisitions (b)	6,931		—		—		6,931
Currency translation adjustment	—		1,096		—		1,096
Balance at December 29, 2019:
Goodwill, gross	602,491		40,269		122,548		765,308
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	602,491		30,872		122,548		755,911
Changes in goodwill:
Restaurant dispositions (c)	(5,394)		—		—		(5,394)
Currency translation adjustment and other	(223)		755		—		532
Balance at January 3, 2021:
Goodwill, gross	596,874		41,024		122,548		760,446
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	$	596,874	$	31,627	$	122,548	$	751,049

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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)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.

(c)During 2020, in connection with the Company’s plan to sell 43 Company-operated restaurants in New York in the second quarter of 2021, goodwill of $5,394 was reclassified to assets held for sale. See Note 3 for further information.

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


	Year End
	January 3, 2021						December 29, 2019
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Indefinite-lived:
Trademarks	$	903,000	$	—	$	903,000	$	903,000	$	—	$	903,000
Definite-lived:
Franchise agreements	349,255		(203,938)		145,317		348,825		(187,063)		161,762
Favorable leases	163,015		(55,581)		107,434		166,098		(47,695)		118,403
Reacquired rights under franchise agreements	9,872		(3,414)		6,458		10,172		(2,766)		7,406
Software	206,741		(143,990)		62,751		181,666		(125,025)		56,641
	$	1,631,883	$	(406,923)	$	1,224,960	$	1,609,761	$	(362,549)	$	1,247,212


Aggregate amortization expense:
Actual for fiscal year:
2018	$	52,064
2019	53,182
2020	52,588
Estimate for fiscal year:
2021	$	47,669
2022	42,612
2023	39,419
2024	34,889
2025	28,095
Thereafter	129,276