Goodwill And Other Intangible Assets

12 Months Ended

Jan. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for 2022 and 2021 was as follows:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
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
Changes in goodwill:
Restaurant acquisitions	23,442		—		—		23,442
Restaurant dispositions (b)	547		—		—		547
Currency translation adjustment and other	—		240		—		240
Balance at January 2, 2022:
Goodwill, gross	620,863		41,264		122,548		784,675
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	620,863		31,867		122,548		775,278
Changes in goodwill:
Restaurant acquisitions (c)	(260)		—		—		(260)
Restaurant dispositions	—		—		—		—
Currency translation adjustment and other	—		(1,930)		—		(1,930)
Balance at January 1, 2023:
Goodwill, gross	620,603		39,334		122,548		782,485
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	$	620,603	$	29,937	$	122,548	$	773,088

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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)Represents adjustments to the amount of goodwill allocated to the Company’s sale of 47 Company-operated restaurants in New York (including Manhattan) in the second quarter of 2021 upon final disposition of the restaurants. See Note 4 for further information.

(c)Includes an adjustment to the fair value of net assets acquired in connection with the acquisition of franchised restaurants during 2021. 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 1, 2023						January 2, 2022
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Indefinite-lived:
Trademarks	$	903,000	$	—	$	903,000	$	903,000	$	—	$	903,000
Definite-lived:
Franchise agreements	348,293		(236,536)		111,757		349,391		(220,663)		128,728
Favorable leases	154,048		(67,928)		86,120		159,488		(62,136)		97,352
Reacquired rights under franchise agreements	90,509		(10,536)		79,973		91,111		(4,732)		86,379
Software	263,282		(195,332)		67,950		234,574		(169,242)		65,332
	$	1,759,132	$	(510,332)	$	1,248,800	$	1,737,564	$	(456,773)	$	1,280,791


Aggregate amortization expense:
Actual for fiscal year:
2020	$	52,588
2021	55,236
2022	58,690
Estimate for fiscal year:
2023	$	56,188
2024	49,999
2025	42,614
2026	36,777
2027	32,354
Thereafter	127,868
	$	345,800