Wendy's 2011 Annual Report Download - page 127

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THE WENDY’S COMPANY AND SUBSIDIARIES
WENDY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
master separation agreement calls for good faith negotiations between the parties, followed by non-binding mediation.
Either party can bring suit if no resolution is reached following mediation. The parties are still in discussions but it no
longer appears likely that a resolution will be reached without the involvement of a neutral third party. We cannot
estimate a range of possible loss, if any, for this matter at this time since, among other things, it is still in a preliminary
stage, no arbitrator or other neutral third party has been selected by the parties, various motions have yet to be
submitted, no discovery has occurred and significant factual and legal issues are unresolved. Wendy’s intends to
vigorously assert its claim and defend against the THI claims.
(27) Advertising Costs and Funds
We currently participate in two national advertising funds (the “Advertising Funds”) established to collect and
administer funds contributed for use in advertising and promotional programs. Contributions to the Advertising
Funds are required from both company-owned and franchised restaurants and are based on a percentage of restaurant
sales. In addition to the contributions to the various Advertising Funds, company-owned and franchised restaurants
make additional contributions to other local and regional advertising programs.
Restricted assets and related liabilities of the Advertising Funds at January 1, 2012 and January 2, 2011 are as
follows:
Year End
2011 2010
Cash and cash equivalents ............................................ $26,715 $23,102
Accounts and notes receivable ......................................... 36,510 42,672
Other assets ...................................................... 6,447 10,779
Total assets ................................................... $69,672 $76,553
Accounts payable .................................................. $ 2,081 $ 3,724
Accrued expenses and other current liabilities ............................. 73,886 76,897
Member’s deficit ................................................... (6,295) (4,068)
Total liabilities and deficit ....................................... $69,672 $76,553
Our advertising expenses in 2011, 2010 and 2009 totaled $106,658, $99,023 and $99,030, respectively.
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