Investments

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



	Year End
	January 1, 2017		January 3, 2016
Equity investments	$	54,545	$	55,541
Cost investments	2,436		2,828
	$	56,981	$	58,369

Equity Investments

Wendy’s has a 50% share in the TimWen joint venture and a 20% share in the Brazil JV, both of which are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.”

A wholly-owned subsidiary of Wendy’s entered into the Brazil JV during the second quarter of 2015 for the operation of Wendy’s restaurants in Brazil. Wendy’s, Starbord International Holdings B.V. and Infinity Holding E Participações Ltda. contributed $1, $2 and $2, respectively, each receiving proportionate equity interests of 20%, 40% and 40%, respectively. The Company did not receive any distributions and our share of the Brazil JV’s net losses was $271 and $88 during 2016 and 2015, respectively. The wholly-owned subsidiary of Wendy’s also agreed to lend the Brazil JV an aggregate amount up to, but not to exceed, $8,000. The loan is denominated in U.S. Dollars, which is also the functional currency of the subsidiary; therefore, there is no exposure to changes in foreign currency rates. During 2016 and 2015, the Company loaned the Brazil JV $5,110 and $1,700, respectively. The loan is due October 20, 2020 and bears interest at 6.5% per year. See Note 6 for further discussion.

The carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by $31,213 and $32,513 as of January 1, 2017 and January 3, 2016, respectively, primarily due to purchase price adjustments from the Wendy’s merger.

Presented below is activity related to our portion of TimWen and the Brazil JV included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended January 1, 2017, January 3, 2016 and December 28, 2014.



	Year Ended
	2016			2015			2014
Balance at beginning of period	$	55,541		$	69,790		$	79,810

Investment	172			108			—

Equity in earnings for the period	10,627			11,533			12,802
Amortization of purchase price adjustments (a)	(2,276		)	(2,328		)	(2,626		)
	8,351			9,205			10,176
Distributions received	(11,426		)	(12,451		)	(13,896		)
Foreign currency translation adjustment included in “Other comprehensive income (loss), net”	1,907			(11,111		)	(6,300		)
Balance at end of period	$	54,545		$	55,541		$	69,790

_______________


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

Indirect Investment in Arby’s

In connection with the sale of Arby’s, Wendy’s Restaurants obtained an 18.5% equity interest in ARG Holding Corporation (through which Wendy’s Restaurants indirectly retained an 18.5% interest in Arby’s), with a fair value of $19,000. See Note 12 for further information on the fair value of our indirect investment in Arby’s as of January 1, 2017 and January 3, 2016. Our 18.5% equity interest as of January 1, 2017 has the potential to be diluted by stock options issued as incentives to Arby’s management. We account for our interest in Arby’s as a cost method investment. The carrying value of our investment was reduced to zero during 2013 in connection with the receipt of a dividend that was determined to be a return of our investment. During 2015, the Company received a dividend of $54,911 from our investment in Arby’s, which was recognized in “Investment income, net.”