Investments

The following is a summary of the carrying value of our investments:



	Year End
	2011		2010
Equity investments:
Joint venture with THI	$	91,742	$	98,631
Joint venture in Japan	77		—
Cost investments:
Arby’s	19,000		—
Other cost investment	3,832		3,775
Total Wendy’s Restaurants	114,651		102,406
Cost investments:
Jurlique	325		325
Other cost investments	4,295		4,492
Total The Wendy’s Company	$	119,271	$	107,223

Investment in TimWen Joint Venture with Tim Hortons Inc.

Wendy’s is a partner in TimWen and our 50% share of the joint venture is accounted for using the equity method of accounting. Our equity in earnings from TimWen is included in “Other operating expense, net.” The carrying value of our investment in TimWen exceeded the Companies’ interest in the underlying equity of the joint venture by $55,805 and $60,306 as of January 1, 2012 and January 2, 2011, respectively, primarily due to purchase price adjustments in the 2008 merger with Wendy’s.

Presented below is activity related to our portion of TimWen included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended January 1, 2012, January 2, 2011 and January 3, 2010.



	2011			2010			2009
Balance at beginning of period	$	98,631		$	97,476		$	89,771

Equity in earnings for the period	13,505			12,316			11,334
Amortization of purchase price adjustments (a)	(2,934		)	(2,857		)	(2,835		)
	10,571			9,459			8,499

Distributions received	(14,942		)	(13,980		)	(14,583		)
Currency translation adjustment included in “Comprehensive (loss) income”	(2,518		)	5,676			13,789
Balance at end of period (b)	$	91,742		$	98,631		$	97,476

_____________________


(a)	Based upon an average aggregate life of 21 years.


(b)	Included in “Investments.”

Presented below is a summary of the financial information of TimWen, including the balance sheets as of January 1, 2012 and January 2, 2011 and certain income statement information for the years ended January 1, 2012, January 2, 2011 and January 3, 2010, respectively, in Canadian dollars. The summary balance sheet financial information does not distinguish between current and long-term assets and liabilities.



	Year End
	2011		2010
Balance sheet information:
Properties	C$	75,030	C$	78,769
Cash and cash equivalents	2,679		1,639
Accounts receivable	4,325		4,529
Other	2,623		3,001
	C$	84,657	C$	87,938

Accounts payable and accrued liabilities	C$	2,332	C$	2,169
Other liabilities	8,848		9,339
Partners’ equity	73,477		76,430
	C$	84,657	C$	87,938



	2011		2010		2009
Income statement information:
Revenues	C$	38,927	C$	38,361	C$	38,471
Income before income taxes and net income	27,047		24,976		27,532

Investment in Joint Venture in Japan

During the second quarter of 2011, Wendy’s entered into the Japan JV. Wendy’s 49% share of the joint venture is accounted for using the equity method of accounting. The Japan JV opened its first restaurant in December 2011. As of January 1, 2012, the carrying value of our investment in the Japan JV was $77, which is included in “Investments.” For the year ended January 1, 2012, we recognized a loss of $1,106 which is included in “Other operating expense, net.”

Indirect Investment in Arby’s

In connection with the sale of Arby’s, Wendy’s Restaurants obtained an 18.5% equity interest in Buyer Parent (through which Wendy’s Restaurants indirectly retained an 18.5% interest in Arby’s) with a fair value of $19,000. See Note 2 for more information on the sale of Arby’s. We account for our interest in Arby’s as a cost method investment.

(The Wendy’s Company)

Investment in Jurlique International Pty Ltd.

Jurl Holdings, LLC (“Jurl”), a 99.7% owned subsidiary, holds our approximately 11% cost-method investment in Jurlique International Pty Ltd. (“Jurlique”), an Australian manufacturer of skin care products. Prior to 2009, we had determined that all of our then remaining $8,500 investment in Jurlique was impaired. In December 2011, Jurlique agreed to be purchased by a third party. In order to protect our expected proceeds of $28,500 Australian dollars from a decrease in the value of the Australian dollar through the expected 2012 closing date, we entered into a foreign currency related derivative transaction for an equivalent notional amount in U.S. dollars. The fair value of this derivative was not significant as of January 1, 2012.

On February 2, 2012, the sale of Jurlique was completed and we expect to record a related gain of approximately $30,000 in the first quarter of 2012. In connection with the sale, the settlement of the derivative transaction described above resulted in a loss of $2,900.

Prior to 2009, we had provided our Chairman, who was also our then Chief Executive Officer, and our Vice Chairman, who was our then President and Chief Operating Officer (the “Former Executives”), and certain other former employees, equity and profits interests in Jurl. In connection with the sale of our investment in Jurlique, the Company will distribute, based on the related agreement, approximately $3,649 to Jurl’s minority shareholders, including approximately $2,807 to the Former Executives.

Investment Activity

(The Wendy’s Company)

Proceeds from sales of current and non-current available-for-sale securities, and gross realized gains and gross realized losses on those transactions, which are included in “Investment income (expense), net” are as follows:



	2010		2009
Proceeds from sales	$	288	$	32,243

Gross realized gains	$	125	$	3,035
Gross realized losses	—		(618		)
	$	125	$	2,417

The following is a summary of the components of the net change in unrealized gains and losses on available-for-sale securities included in other comprehensive income:



	2010			2009
Unrealized holding gains arising during the year	$	—		$	101
Reclassifications of prior year unrealized holding gains into net income or loss	(101		)	(168		)
	(101		)	(67		)
Income tax benefit	42			18
	$	(59	)	$	(49	)