(5) Investment in Joint Ventures

9 Months Ended

Oct. 02, 2011

Investment in Joint Venture with Tim Horton's, Inc [Abstract]

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 portion of TimWen included in our condensed consolidated balance sheets and condensed consolidated statements of operations:



	Nine Months Ended
	October 2, 2011			October 3, 2010
Balance at beginning of period (a)	$	98,631		$	97,476

Equity in earnings for the period	10,258			9,309
Amortization of purchase price adjustments	(2,170		)	(2,182		)
	8,088			7,127

Distributions received	(10,784		)	(9,718		)
Currency translation adjustment included in “Comprehensive income”	(5,050		)	3,465
Balance at end of period (a)	$	90,885		$	98,350
_____________________
(a) Included in “Investments.”

Presented below is a summary of unaudited financial information of TimWen as of and for the nine months ended October 2, 2011 and October 3, 2010, respectively, in Canadian dollars. The summary balance sheet financial information does not distinguish between current and long-term assets and liabilities:



	October 2, 2011		October 3, 2010
Balance sheet information:
Properties	C$	76,158	C$	80,011
Cash and cash equivalents	2,644		2,315
Accounts receivable	4,418		3,941
Other	2,628		3,011
	C$	85,848	C$	89,278

Accounts payable and accrued liabilities	C$	1,541	C$	1,418
Other liabilities	8,975		8,844
Partners’ equity	75,332		79,016
	C$	85,848	C$	89,278



	Nine Months Ended
	October 2, 2011		October 3, 2010
Income statement information:
Revenues	C$	29,131	C$	28,620
Income before income taxes and net income	20,404		19,064

Investment in Joint Venture in Japan

During the second quarter of 2011, Wendy’s entered into a joint venture for the operation of Wendy’s restaurants in Japan (the “Japan JV”). Wendy’s 49% share of the joint venture is accounted for using the equity method of accounting. The Japan JV expects to open its first restaurant before the end of 2011.

As of October 2, 2011, the carrying value of our investment in the Japan JV was $912, which is included in “Investments.” For the nine months ended October 2, 2011, we recognized a loss of $271 which is included in “Other operating expense, net.”

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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