Wendy's 2014 Annual Report Download - page 86

THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Presented below is a summary of the financial information of TimWen, including the balance sheets as of
December 28, 2014 and December 29, 2013 and certain income statement information for the years ended
December 28, 2014, December 29, 2013 and December 30, 2012. The summary balance sheet financial information
does not distinguish between current and long-term assets and liabilities.
Year End
2014 2013
Balance sheet information:
Properties .................................................... $56,952 $64,520
Cash and cash equivalents ........................................ 3,588 3,339
Accounts receivable ............................................. 2,663 2,924
Other ....................................................... 2,105 2,268
$65,308 $73,051
Accounts payable and accrued liabilities ............................. $ 1,995 $ 1,127
Other liabilities ................................................ 6,158 7,256
Partners’ equity ................................................ 57,155 64,668
$65,308 $73,051
Year Ended
2014 2013 2012
Income statement information:
Revenues ......................................... $36,604 $ 38,751 $ 39,702
Income before income taxes and net income .............. 25,604 27,586 27,377
Joint Venture in Japan
A wholly-owned subsidiary of Wendy’s entered into a joint venture for the operation of Wendy’s restaurants in
Japan (the “Japan JV”) with Ernest M. Higa and Higa Industries, Ltd., a corporation organized under the laws of Japan
(collectively, the “Higa Partners”) during the second quarter of 2011. Through the first quarter of 2013 as further
described below, our 49% share of the Japan JV was accounted for as an equity method investment. Our share of the
Japan JV’s net losses of $1,090 and $1,827 during the years ended December 29, 2013 and December 30, 2012,
respectively, are included in “Other operating expense, net” in our consolidated statements of operations.
In January 2013, Wendy’s and the Higa Partners agreed to fund future anticipated cash requirements of the
Japan JV up to a maximum amount per partner. In conjunction with the first contributions in April 2013 of $1,000
and $219 by Wendy’s and the Higa Partners, respectively, the partners executed an amendment to the original joint
venture agreement which included revised rights and obligations of the partners and changes to the ownership and
profit distribution percentages. As a result of the changes in the ownership rights and obligations of the partners in
April 2013, Wendy’s consolidated the Japan JV beginning in the second quarter of 2013. Beginning in the second
quarter of 2013, we reported the Japan JV’s results of operations in the appropriate line items in our consolidated
statements of operations and the net loss attributable to the Higa Partners’ ownership percentage in “Net loss
(income) attributable to noncontrolling interests.” The consolidation of the Japan JV’s three restaurants did not have
a material impact on our consolidated financial statements. In August 2013, additional contributions of $1,000 and
$219 were made by Wendy’s and the Higa Partners, respectively.
In December 2013, Wendy’s and the Higa Partners agreed to terminate Wendy’s investment in the joint
venture and repay their respective portions of the Japan JV’s outstanding financing debt and liabilities related to
restaurant closure costs (the “Obligations”). In connection with that agreement, Wendy’s (1) made a contribution to
the Japan JV of $2,800 to pay the Obligations attributable to Wendy’s interest and (2) loaned $2,800 to the Japan JV
to pay the Obligations attributable to the Higa Partners interest. Wendy’s also loaned $197 to the Japan JV to help
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