v3.23.2
Segment Information (Notes)
 6 Months Ended
Jul. 02, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
Revenues by segment are as follows:
Three Months EndedSix Months Ended
July 2,
2023		July 3,
2022		July 2,
2023		July 3,
2022
Wendy’s U.S.$468,753 $450,440 $909,741 $857,751 
Wendy’s International32,715 27,463 61,995 50,369 
Global Real Estate & Development60,097 59,880 118,636 118,306 
Total revenues$561,565 $537,783 $1,090,372 $1,026,426 
The following table reconciles profit by segment to the Company’s consolidated income before income taxes:
Three Months EndedSix Months Ended
July 2,
2023		July 3,
2022		July 2,
2023		July 3,
2022
Wendy’s U.S. (a)$142,947 $126,999 $268,177 $231,823 
Wendy’s International (b)8,531 9,350 15,977 14,803 
Global Real Estate & Development26,534 27,283 51,602 54,890 
Total segment profit178,012 163,632 $335,756 $301,516 
Unallocated franchise support and other costs23 — 23 6 
Advertising funds surplus (deficit)1,315 (1,375)2,421 (2,618)
Unallocated general and administrative (c)(33,653)(30,989)(65,814)(61,994)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)(33,498)(33,428)(66,970)(66,659)
Amortization of cloud computing arrangements(2,266)— (3,848)— 
System optimization (losses) gains, net(6)152 (1)3,686 
Reorganization and realignment costs(681)(156)(7,489)(620)
Impairment of long-lived assets(78)(1,860)(454)(2,476)
Unallocated other operating income, net106 305 128 321 
Interest expense, net(31,136)(32,125)(62,841)(58,490)
Loss on early extinguishment of debt— — (1,266)— 
Investment (loss) income, net(6,827)(4)(10,389)2,107 
Other income, net7,573 1,238 14,909 1,445 
Income before income taxes$78,884 $65,390 $134,165 $116,224 
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(a)Wendy’s U.S. includes advertising funds expense of $2,766 and $5,322 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising funds expense of $658 and $1,206 for the three and six months ended July 2, 2023, respectively, and $1,084 and $1,922 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $479 and $1,324 for the three and six months ended July 2, 2023, respectively, and $880 and $1,522 for the three and six months ended July 3, 2022, respectively.

(c)Includes corporate overhead costs, such as employee compensation and related benefits.