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 (income) 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 29, 2013			September 30, 2012
Balance at beginning of period	$	89,370		$	91,742

Equity in earnings for the period	10,357			10,254
Amortization of purchase price adjustments (a)	(2,288		)	(2,340		)
	8,069			7,914
Distributions received	(10,148		)	(10,760		)
Foreign currency translation adjustment included in “Other comprehensive income (loss), net”	(3,052		)	3,570
Balance at end of period (b)	$	84,239		$	92,466

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


(b)	Included in “Investments.”

Presented below is a summary of certain unaudited interim income statement information of TimWen:



	Nine Months Ended
	September 29, 2013		September 30, 2012
Revenues	$	29,113	$	29,655
Income before income taxes and net income	20,714		20,508

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 and recorded a gain on sale of this investment of $27,407, which included a loss of $2,913 on the settlement of a related derivative transaction. The gain was included in “Investment income and other income (expense), net” in our condensed consolidated statement of operations for the nine months ended September 30, 2012. During the three months ended September 29, 2013, $1,166 of the escrow from the sale was collected. In addition, we determined that $799 of the remaining escrow would not be received and as a result recorded the reduction of our receivable to “Investment income and other income (expense), net.” The remaining escrow of $1,012, as of September 29, 2013, is included in “Deferred costs and other assets” and has been adjusted for foreign currency translation.

We have reflected net income attributable to noncontrolling interests of $2,384, net of an income tax benefit of $1,283, for the nine months ended September 30, 2012 in connection with the equity and profit interests discussed below. As a result of this sale and the 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 profit 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.