XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Investments | 12 Months Ended
--- | ---
Jan. 02, 2022
Investments [Abstract] |
Investments | Investments The following is a summary of the carrying value of our investments:
| Year End
| January 2, 2022 |  | January 3, 2021
Equity method investments | $ | 39,870 |  |  | $ | 44,574 |
Other investments in equity securities | 10,000 |  |  | — |
| $ | 49,870 |  |  | $ | 44,574 |
Equity Method Investments Wendy’s has a 50% share in the TimWen real estate 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, 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 $417 and $1,022 during 2020 and 2019, respectively. The Brazil JV has ceased operations and no income or loss was recorded during 2021. A wholly-owned subsidiary of Wendy’s has loans outstanding related to the Brazil JV totaling $17,125 as of both January 2, 2022 and January 3, 2021. 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 bear interest at rates ranging from 3.25% to 6.5% per year. Of the total loans outstanding as of January 2, 2022, $12,775 was due primarily in the fourth quarter of 2020 and $4,350 is due primarily in 2024. As of January 2, 2022 and January 3, 2021, the Company had reserves of $4,640 on the past due loans related to the Brazil JV. The Company is currently pursuing collection of certain of the past due amounts. See Note 7 for further information. The carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by $20,532 and $23,433 as of January 2, 2022 and January 3, 2021, respectively, primarily due to purchase price adjustments from the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (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 2, 2022, January 3, 2021 and December 29, 2019.
| Year Ended
| 2021 |  | 2020 |  | 2019
Balance at beginning of period | $ | 44,574 |  |  | $ | 45,310 |  |  | $ | 47,021 |
Equity in earnings for the period | 14,329 |  |  | 8,389 |  |  | 10,943 |
Amortization of purchase price adjustments (a) | (3,126) |  |  | (2,293) |  |  | (2,270) |
| 11,203 |  |  | 6,096 |  |  | 8,673 |
Distributions received | (16,337) |  |  | (8,376) |  |  | (13,400) |
Foreign currency translation adjustment included in “Other comprehensive income” and other | 430 |  |  | 1,544 |  |  | 3,016 |
Balance at end of period | $ | 39,870 |  |  | $ | 44,574 |  |  | $ | 45,310 |
_______________ (a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years. Other Investments in Equity Securities During 2021, the Company made an investment in equity securities of $10,000. In October 2019, the Company received a $25,000 cash settlement related to a previously held investment. As a result, the Company recorded $24,366 to “Investment income (loss), net” and $634 to “General and administrative” for the reimbursement of related costs during the fourth quarter of 2019.

X
- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_InvestmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration