Wendy's 2008 Annual Report Download - page 123

(8) Investments
Non-Current Investments
The following is a summary of the carrying value of investments classified as non-current:
Cost (a) Gains Losses
Fair
Value
Carrying
Value Cost (a) Gains Losses
Fair
Value
Carrying
Value
Unrealized
Holding
Unrealized
Holding
Year End 2008 Year End 2007
Restricted investments held in the Equities
Account:
Available-for-sale marketable equity
securities, at fair value . . . . . . . . . . . . . $30,103 $410 $(242) $30,271 $ 30,271 $42,449 $5,631 $ (12) $48,068 $ 48,068
Derivatives, at fair value . . . . . . . . . . . . . . — 7,607
Non-marketable equity securities, at
cost . . . . . . . . . . . . . ................. 143 286
30,414 55,961
DFR investments:
Available-for-sale preferred stock, net
of unrecognized gain (Note 3) . . . . . . $81,453 $ — $(11,075) $70,378 70,378
Common stock, at equity . . . . . . . . . . . . . 1,888 1,651 1,862
$83,341 $ — $(11,075) $72,029 72,240
Other:
At equity (b):
Joint venture with THI. . . . . . . . . . 89,771 —
Other . . . . . . . . . ................. 212
At cost:
Jurlique International Pty Ltd. (c) — 8,504
Other (c) . . . . . . ................. 12,010 4,182
Non-marketable equity securities,
at cost . . . . . . ................. 645 1,022
102,638 13,708
$133,052 $141,909
(a) The cost of available-for-sale securities have been reduced by any Other Than Temporary Losses on
Investments (see Note 20).
(b) The Company’s consolidated equity in the earnings (losses) of investees accounted for under the Equity
Method includes: Joint venture with THI (“TimWen”) with our equity in its net earnings included as a
component of “Other operating expense (income), net” (see Note 21) and (2) other equity in net earnings
(losses) included as a component of “Other income (expense), net” (see Note 22).
(c) The carrying value of the investment in Jurlique International Pty Ltd. and a certain cost investment,
acquired as part of the Wendy’s Merger and included in Other cost investments, have been reduced by
Other Than Temporary Losses on Investments (see Note 20).
Equities Account
Prior to 2006, we invested $75,000 in the Equities Account, and in April 2007, we entered into an
agreement under which (1) the Management Company will continue to manage the Equities Account until at
least December 31, 2010, (2) we will not withdraw our investment from the Equities Account prior to
December 31, 2010 (see below regarding certain permitted transactions in 2008) and (3) beginning January 1,
2008, we began to pay management and incentive fees to the Management Company in an amount customary
for other unaffiliated third party investors with similarly sized portfolios. Prior thereto, we were not charged
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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)