Wendy's 2013 Annual Report Download - page 86
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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
The following is an analysis of the allowance for doubtful accounts:
Year End
2013 2012 2011
Balance at beginning of year:
Current .............................................. $6,321 $4,053 $ 7,321
Non-current .......................................... 2,881 963 3,778
Provision for doubtful accounts:
Franchisees and other ................................... (574) 670 264
Arby’s allowance transferred in sale ............................. — — (5,504)
Uncollectible accounts written off, net of recoveries ................ (4,794) (28) (843)
Breakfast notes receivables fully reserved (see Note 2) ............... — 3,544 —
Balance at end of year:
Current .............................................. 3,559 6,321 4,053
Non-current .......................................... 275 2,881 963
Total ................................................ $3,834 $9,202 $ 5,016
(6) Investments
The following is a summary of the carrying value of our investments:
Year End
2013 2012
Equity investments:
Joint venture with THI ......................................... $79,810 $ 89,370
Joint venture in Japan (a) ....................................... — (1,750)
Cost investments:
Arby’s (b) ................................................... — 19,000
Other cost investments ......................................... 3,387 4,913
$83,197 $111,533
(a) In 2012, our equity investment in a joint venture in Japan was included in “Other liabilities” as Wendy’s had
provided certain guarantees and the partners had agreed on a plan to finance anticipated future cash
requirements of the joint venture. Beginning in the second quarter of 2013, we consolidated the joint venture in
Japan. Refer to the “Joint Venture in Japan” discussion below for additional information.
(b) In 2013, we received a dividend from our investment in Arby’s, which was recorded as a reduction to the
carrying value of our investment. Refer to the “Indirect Investment in Arby’s” discussion below for additional
information.
Investment in Joint Venture with Tim Hortons Inc.
Wendy’s is a partner in TimWen and our 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.” The
carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by
$47,476 and $54,088 as of December 29, 2013 and December 30, 2012, respectively, primarily due to purchase price
adjustments from the Wendy’s merger.
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