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Reorganization and Realignment Costs
 9 Months Ended
Oct. 02, 2022
Restructuring and Related Activities [Abstract]  
Reorganization and Realignment Costs Reorganization and Realignment Costs
The following is a summary of the initiatives included in “Reorganization and realignment costs:”
Three Months EndedNine Months Ended
October 2,
2022		October 3,
2021		October 2,
2022		October 3,
2021
System optimization initiative$7 $295 $548 $5,870 
Other reorganization and realignment plans1 50 80 1,511 
Reorganization and realignment costs$8 $345 $628 $7,381 

System Optimization Initiative

The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During the nine months ended October 2, 2022, the Company recognized costs totaling $548, which were primarily comprised of professional fees and other costs associated with the Company’s acquisition of 93 franchise-operated restaurants in Florida during the fourth quarter of 2021. During the nine months ended October 3, 2021, the Company recognized costs totaling $5,870, which were primarily comprised of the write-off of certain lease assets and lease termination fees associated with the bankruptcy sale process of NPC Quality Burgers, Inc. (“NPC”). As previously announced, NPC, formerly the Company’s largest franchisee, filed for chapter 11 bankruptcy in July 2020 and completed a process during the three months ended April 4, 2021 under which all of NPC’s Wendy’s restaurants were sold to Wendy’s approved franchisees. The Company expects to recognize a gain of approximately $700, primarily related to the write-off of certain NPC-related lease liabilities, upon final termination of the leases.
The following is a summary of the costs recorded as a result of our system optimization initiative:
Three Months EndedNine Months EndedTotal
Incurred Since Inception
October 2,
2022		October 3,
2021		October 2,
2022		October 3,
2021
Severance and related employee costs$— $— $— $661 $18,898 
Professional fees(28)277 346 1,016 24,023 
Other (a)18 — 151 1,354 7,769 
(10)277 497 3,031 50,690 
Accelerated depreciation and amortization (b)— — — — 25,398 
NPC lease termination costs (c)17 18 51 2,839 2,907 
Share-based compensation (d)— — — — 5,013 
Total system optimization initiative$7 $295 $548 $5,870 $84,008 
_______________

(a)The nine months ended October 3, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process.

(b)Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative.

(c)The nine months ended October 3, 2021 includes the write-off of lease assets of $1,359 and lease termination fees paid of $1,480.

(d)Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative.

The tables below present a rollforward of our accruals for our system optimization initiative, which were included in “Accrued expenses and other current liabilities” as of January 3, 2021.
Balance
January 2,
2022		ChargesPaymentsBalance
October 2,
2022
Professional fees$— $346 $(346)$— 
Other— 151 (151)— 
$— $497 $(497)$— 
Balance
January 3,
2021		ChargesPaymentsBalance
October 3,
2021
Severance and related employee costs$— $661 $(661)$— 
Professional fees1,230 1,016 (2,246)— 
Other— 1,354 (1,354)— 
$1,230 $3,031 $(4,261)$— 

Other Reorganization and Realignment Plans

Costs incurred under the Company’s other reorganization and realignment plans were not material during the nine months ended October 2, 2022 and October 3, 2021. The Company does not expect to incur any material additional costs under these plans.