Investments

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



	Year End
	December 31, 2017		January 1, 2017
Equity investments	$	55,363	$	54,545
Cost investments	639		2,436
	$	56,002	$	56,981

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 expense (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, Starboard 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 $1,134, $271 and $88 during 2017, 2016 and 2015, respectively. During 2017, a wholly-owned subsidiary of Wendy’s agreed to lend the Brazil JV an aggregate amount up to, but not to exceed, $4,800, which is in addition to $8,000 previously loaned. During 2017, 2016 and 2015, $5,990, $5,110 and $1,700 was loaned to the Brazil JV under these agreements, respectively. The loans are 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. The loans are due October 20, 2020 and bear 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 $31,033 and $31,213 as of December 31, 2017 and January 1, 2017, respectively, primarily due to purchase price adjustments from the 2008 merger of Triarc Companies, Inc. and Wendy’s (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 December 31, 2017, January 1, 2017 and January 3, 2016.



	Year Ended
	2017			2016			2015
Balance at beginning of period	$	54,545		$	55,541		$	69,790

Investment	375			172			108

Equity in earnings for the period	9,897			10,627			11,533
Amortization of purchase price adjustments (a)	(2,324		)	(2,276		)	(2,328		)
	7,573			8,351			9,205
Distributions received	(11,713		)	(11,426		)	(12,451		)
Foreign currency translation adjustment included in “Other comprehensive income (loss), net” and other	4,583			1,907			(11,111		)
Balance at end of period	$	55,363		$	54,545		$	55,541

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

Indirect Investment in Arby’s

In connection with the sale of Arby’s during 2011, Wendy’s Restaurants obtained an 18.5% equity interest in ARG Holding Corporation (“ARG Parent”) (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 December 31, 2017 and January 1, 2017. 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.”

Our 18.5% equity interest as of December 31, 2017 was diluted to 12.3% on February 5, 2018, when a subsidiary of ARG Parent acquired Buffalo Wild Wings, Inc. As a result, our diluted ownership interest includes both the Arby’s and Buffalo Wild Wings brands under the newly formed combined company, Inspire Brands.