Wendy's 2008 Annual Report Download - page 121

Deferred costs and other assets
2008 2007
Year End
Deferred financing costs (a) .......................................... $20,645 $ 23,982
Deferred costs of business acquisition (b) .............................. — 7,656
Non-current finance sublease receivable, net of non-guaranteed residuals
and interest of $11,528 ........................................... 10,574 —
Non-current prepaid rent ............................................ 4,462 4,720
Other .............................................................. 7,027 2,834
42,708 39,192
Accumulated amortization. ........................................... (15,238) (11,532)
$ 27,470 $ 27,660
(a) Includes $4,060 of deferred costs related to potential future financings as of December 30, 2007 which was
written off in 2008.
(b) Represents deferred costs related to the Wendy’s Merger as of December 30, 2007 (see Note 3).
Pledged assets
The following is a summary of assets pledged as collateral for certain debt (see Note 10):
2008 2007
Year End
Cash and cash equivalents........................................... $ 19,853 $ 44,055
Accounts and notes receivable, net ................................... 17,482 18,051
Inventories ........................................................ 11,096 11,067
Properties, net ..................................................... 335,739 292,021
Other intangible assets ............................................. 22,299 23,617
Deferred costs and other assets ...................................... 2,571 2,281
$409,040 $391,092
See Note 10 regarding collateral for our amended and restated credit agreement which was executed in
March 2009. The Arby’s Credit Agreement was amended and restated as of March 11, 2009 and Wendy’s and
certain of its affiliates in addition to ARG and certain of its affiliates became parties. Wendy’s, ARG and
certain other subsidiaries are the co-borrowers (the “Co-Borrowers”) under the amended and restated Credit
Agreement. Under the amended and restated Credit Agreement substantially all of the assets of the Co-
Borrowers (other than real property, except for mortgages on certain Wendy’s real properties), the stock of
Wendy’s and ARG and certain of their domestic subsidiaries and 65% of the stock of certain of their foreign
subsidiaries (all subject to certain exclusions) are pledged as collateral security, and the Co-Borrowers’
obligations are also guaranteed by substantially all of the domestic entities comprising the Wendy’s and Arby’s
restaurant segments (all subject to certain limitations and exclusions).
113
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)