Investments

Investment in Joint Venture with Tim Hortons Inc.

Wendy’s is a partner in a Canadian restaurant real estate joint venture (“TimWen”) with Tim Hortons Inc. Wendy’s 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.”

Presented below is an unaudited summary of activity related to our investment in TimWen included in our unaudited condensed consolidated financial statements:



	Nine Months Ended
	September 30, 2012			October 2, 2011
Balance at beginning of period	$	91,742		$	98,631

Equity in earnings for the period	10,254			10,258
Amortization of purchase price adjustments (a)	(2,340		)	(2,170		)
	7,914			8,088

Distributions received	(10,760		)	(10,784		)
Foreign currency translation adjustment included in “Other comprehensive income (loss), net”	3,570			(5,050		)
Balance at end of period (b)	$	92,466		$	90,885

_____________________


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


(b)	Included in “Investments.”

Presented below is a summary of unaudited financial information of TimWen as of and for the nine months ended September 30, 2012 and October 2, 2011, respectively, in Canadian dollars. The summary balance sheet financial information does not distinguish between current and long-term assets and liabilities.



	September 30, 2012		October 2, 2011
Balance sheet information:
Properties	C$	72,050	C$	76,158
Cash and cash equivalents	3,779		2,644
Accounts receivable	4,244		4,418
Other	2,112		2,628
	C$	82,185	C$	85,848

Accounts payable and accrued liabilities	C$	1,232	C$	1,541
Other liabilities	8,412		8,975
Partners’ equity	72,541		75,332
	C$	82,185	C$	85,848



	Nine Months Ended
	September 30, 2012		October 2, 2011
Income statement information:
Revenues	C$	29,732	C$	29,131
Income before income taxes and net income	20,566		20,404

Sale of Investment in Jurlique International Pty Ltd.

On February 2, 2012, Jurl Holdings, LLC (“Jurl”), a 99.7% owned subsidiary, completed the sale of our investment in Jurlique International Pty Ltd. (“Jurlique”) for which we received proceeds of $27,287, net of the amount held in escrow. The amount held in escrow as of September 30, 2012 was $3,374, which was adjusted for foreign currency translation, and was included in “Deferred costs and other assets.” In connection with the anticipated proceeds of the sale and in order to protect ourselves from a decrease in the Australian dollar through the closing date, we entered into a foreign currency related derivative transaction for an equivalent notional amount in U.S. dollars of the expected proceeds of A$28,500 Australian dollars. We recorded a “Gain on sale of investment, net” of $27,407, which included a loss of $2,913 on the settlement of the derivative transaction discussed above.

We have reflected net income attributable to noncontrolling interests of $2,384, net of income tax benefit of $1,283, during the nine months ended September 30, 2012 in connection with the equity and profit interests discussed below. The net assets and liabilities of the subsidiary that held the investment were not material to the consolidated financial statements. Therefore, the noncontrolling interest in those assets and liabilities was not previously reported separately. As a result of this sale and distributions to the minority shareholders, there are no remaining noncontrolling interests in this consolidated subsidiary.

Prior to 2009 when our predecessor entity was a diversified company active in investments, 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 gain on sale of Jurlique, we distributed, based on the related agreement, approximately $3,667 to Jurl’s minority shareholders, including approximately $2,296 to the Former Executives.