XML 49 R32.htm IDEA: XBRL DOCUMENT
v3.20.4

Segment Information (Notes) | 12 Months Ended
--- | ---
Jan. 03, 2021
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company is comprised of the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. Wendy’s U.S. includes the operation and franchising of Wendy’s restaurants in the U.S. and derives its revenues from sales at Company-operated restaurants and royalties, fees and advertising fund collections from franchised restaurants. Wendy’s International includes the franchising of Wendy’s restaurants in countries and territories other than the U.S. and derives its revenues from royalties, fees and advertising fund collections from franchised restaurants. Global Real Estate & Development includes real estate activity for owned sites and sites leased from third parties, which are leased and/or subleased to franchisees, and also includes our share of the income of our TimWen real estate joint venture. In addition, Global Real Estate & Development earns fees from facilitating Franchise Flips and providing other development-related services to franchisees. The Company measures segment profit based on segment adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”). Segment adjusted EBITDA excludes certain unallocated general and administrative expenses and other items that vary from period to period without correlation to the Company’s core operating performance. When the Company’s chief operating decision maker reviews balance sheet information, it is at a consolidated level. The accounting policies of the Company’s segments are the same as those described in Note 1. Revenues by segment are as follows:
| Year Ended
| 2020 |  | 2019 |  | 2018
Wendy’s U.S. | $ | 1,431,382 |  |  | $ | 1,404,307 |  |  | $ | 1,312,491 |
Wendy’s International | 65,642 |  |  | 68,198 |  |  | 67,630 |
Global Real Estate & Development | 236,801 |  |  | 236,497 |  |  | 209,815 |
Total revenues | $ | 1,733,825 |  |  | $ | 1,709,002 |  |  | $ | 1,589,936 |
The following table reconciles profit by segment to the Company’s consolidated income before income taxes:
| Year Ended
| 2020 |  | 2019 |  | 2018
Wendy’s U.S. (a) | $ | 393,314 |  |  | $ | 369,193 |  |  | $ | 355,455 |
Wendy’s International | 20,119 |  |  | 20,246 |  |  | 25,597 |
Global Real Estate & Development | 100,731 |  |  | 107,116 |  |  | 110,632 |
Total segment profit | 514,164 |  |  | 496,555 |  |  | 491,684 |
Advertising funds surplus | 2,904 |  |  | 1,337 |  |  | 4,153 |
Unallocated general and administrative (b) | (94,256) |  |  | (81,230) |  |  | (104,208) |
Depreciation and amortization | (132,775) |  |  | (131,693) |  |  | (128,879) |
System optimization gains, net | 3,148 |  |  | 1,283 |  |  | 463 |
Reorganization and realignment costs | (16,030) |  |  | (16,965) |  |  | (9,068) |
Impairment of long-lived assets | (8,037) |  |  | (6,999) |  |  | (4,697) |
Unallocated other operating income, net | 190 |  |  | 291 |  |  | 444 |
Interest expense, net | (117,737) |  |  | (115,971) |  |  | (119,618) |
Loss on early extinguishment of debt | — |  |  | (8,496) |  |  | (11,475) |
Investment (loss) income, net | (225) |  |  | 25,598 |  |  | 450,736 |
Other income, net | 1,449 |  |  | 7,771 |  |  | 5,381 |
Income before income taxes | $ | 152,795 |  |  | $ | 171,481 |  |  | $ | 574,916 |
_______________ (a)2020 includes advertising funds expense of $14,600 related to the Company funding of incremental advertising. (b)Includes corporate overhead costs, such as employee compensation and related benefits. 2018 also includes the impact of legal reserves for a settlement of the financial institutions class action of $27,500. Net income (loss) of our equity method investments for the Brazil JV and TimWen are included in segment profit for the Wendy’s International and Global Real Estate & Development segments, respectively. Net income (loss) of equity method investments by segment was as follows:
| Year Ended
| 2020 |  | 2019 |  | 2018
Wendy’s International | $ | (417) |  |  | $ | (1,022) |  |  | $ | (1,344) |
Global Real Estate & Development | 6,513 |  |  | 9,695 |  |  | 9,420 |
Total net income of equity method investments | $ | 6,096 |  |  | $ | 8,673 |  |  | $ | 8,076 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration