Wendy's 2008 Annual Report Download - page 118

(6) Short-Term Investments
Short-Term Investments
The Company’s short-term investments, included in “Prepaid expenses and other current assets” in the
accompanying Consolidated Balance Sheets, are carried at fair market value and at December 28, 2008 and
December 30, 2007 consist entirely of available-for-sale securities. The cost of these securities has been reduced
by any Other Than Temporary Losses (see Note 20). Information regarding the Company’s short-term
investments at December 28, 2008 and December 30, 2007 is as follows:
Cost Gains Losses
Fair
Value
Carrying
Value Cost Gains Losses
Fair
Value
Carrying
Value
Unrealized
Holding
Unrealized
Holding
2008 2007
Available-for-sale securities . . . . . . . . . . . . ............... $162 $— $— $162 $162 $685 $1,923 $— $2,608 $2,608
Proceeds from sales and investment distribution values (see Note 27) of current and non-current available-
for-sale securities, and gross realized gains and gross realized losses on those transactions, which are included in
“Investment income, net” in the accompanying consolidated statements of operations (see Note 19), are as
follows:
2008 2007 2006
Proceeds from sales and investment distribution values ...... $87,301 $105,170 $116,641
Gross realized gains ...................................... $ 4,222 $ 21,691 $ 7,664
Gross realized losses ...................................... (5,809) (682) (401)
$ (1,587) $ 21,009 $ 7,263
The following is a summary of the components of the net change in unrealized gains and losses on
available-for-sale securities included in other comprehensive income (loss):
2008 2007 2006
Unrealized holding (losses) gains arising during the year ....... $(4,505) $ (9,842) $13,012
Reclassifications of prior year unrealized holding (losses) gains
into net income or loss ................................... 8,206 (15,811) 34
Equity in change in unrealized holding (losses) gains arising
during the year .......................................... (201) 2,170 242
3,500 (23,483) 13,288
Income tax benefit (provision) ............................... (1,288) 8,723 (5,048)
Minority interests in (increase) decrease in unrealized holding
gains of a consolidated subsidiary.......................... — (697) 737
$ 2,212 $(15,457) $ 8,977
As of December 28, 2008, we had unrealized holding gains and (losses) on available-for-sale marketable
securities before income taxes and minority interests of $410 and ($242), respectively, included in
“Accumulated other comprehensive loss.” We evaluated the unrealized losses to determine whether these losses
were other than temporary and concluded that they were not. Should either (1) we decide to sell any of these
investments with unrealized losses or (2) any of the unrealized losses continue such that we believe they have
become other than temporary, we would recognize the losses on the related investments at that time.
The change in the net unrealized (loss) gain on trading securities and trading derivatives resulted in gains
of $172 and $5,332 in 2007 and 2006, respectively, which are included in “Investment income, net” in the
accompanying Consolidated Statements of Operations (see Note 19).
110
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)