Wendy's 2008 Annual Report Download - page 155

the Wendy’s restaurants segment were estimated to be their expected realizable value, which reflect market
declines in the areas where the properties are located.
(19) Investment Income, Net
2008 2007 2006
Interest income .............................................. $1,285 $ 9,100 $ 72,552
Distributions, including dividends ............................. 2,818 1,784 1,487
Realized (losses) gains on available-for-sale securities............. (1,587) 21,009 7,263
Realized gains on sales of investment limited partnerships,
similar investment entities and other Cost Investments ........ 1,637 26,712 3,559
Realized gains on securities sold and subsequently purchased ..... 5,789 — 2,334
Realized gains on a derivative other than trading ............... 2,621 3,017 1,665
Realized losses on trading securities and trading derivatives ...... — (909) (11,995)
Unrealized gains on trading securities and trading derivatives .... — 172 5,332
Unrealized gains on securities sold with an obligation to
purchase . . . ............................................... 3,211 — 3,719
Unrealized gains (losses) on derivatives other than trading ....... (4,339) 1,406 (1,317)
Investment fees .............................................. (1,997) (181) (677)
Equity in earnings of an investment limited partnership ......... — — 396
$ 9,438 $62,110 $ 84,318
(20) Other than temporary losses on investments
2008 2007 2006
Other than temporary losses on investments ................... $(112,741) $(9,909) $(4,120)
The Other than temporary losses on investments in 2008 of $112,741 related to (1) $68,086 from our
investments in common stock of DFR (see Notes 3 and 8), (2) an allowance for doubtful accounts of $21,227
related to our DFR Notes (see Note 4), (3) $13,109 of charges attributable to the decline in fair value of the
Company’s available-for-sale securities primarily held in the Equities Account due to continued weakness in
the financial markets (see Note 8), (4) a charge of $8,504 attributable to the decline in value of the Company’s
investment at cost in Jurlique (see Note 8), and (5) a charge of $1,815 attributable to the decline in fair value
of one of our cost investments (see Note 8).
The Other than temporary losses in 2007 of $9,909 related primarily to the recognition of (1) $8,693 of
charges related to certain CDO preferred stock investments resulting from a decrease in the projected cash
flows of the underlying CDOs and (2) $1,101 from a significant decline in the market value of one of the
Company’s available-for-sale investments.
The Other than temporary losses in 2006 of $4,120 related primarily to (1) a $2,142 charge related to a
significant decline in the market value of one of the investments in two deferred compensation trusts (see Note
27) and (2) $1,267 of charges related to certain CDO preferred stock investments resulting from a decrease in
the projected cash flows of the underlying CDOs.
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Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)