Wendy's 2008 Annual Report Download - page 124

any management fees. As a result of the withdrawal restriction, the amounts in the Equities Account are
reported as non-current assets and liabilities. The Equities Account is invested principally in the equity
securities of a limited number of publicly-traded companies, cash equivalents and equity derivatives and had a
fair value of $37,696 and $99,320 as of December 28, 2008 and December 30, 2007, respectively, consisting
of:
December 28, 2008 (b) December 30, 2007
Restricted cash equivalents . . ....................... $26,515 $43,356
Investments ....................................... 30,414 48,354
Derivatives in an asset position (included in
“Investments”) (a) ............................... — 7,607
Investment related receivables (included in “Accounts
and notes receivable”) ............................ — 203
Investment related receivables (included in “Deferred
costs and other assets”) . . . ....................... 372 110
Securities sold with an obligation to purchase
(included in “Other liabilities”) ................... (16,626) —
Derivatives in a liability position (included in “Other
liabilities”) (a)................................... (2,979) (310)
Total fair value.................................... $37,696 $99,320
(c) We did not designate any of the derivatives as hedging instruments and, accordingly, all of these derivative
instruments were recorded at fair value with changes in fair value recorded in our results of operations.
(d) The fair value of the Equities Account at December 28, 2008 excludes $47,000 of restricted cash released
from the Equities Account in 2008. We obtained permission from the Management Company to release
this amount from the aforementioned investment restriction and we are obligated to return this amount to
the Equities Account by January 29, 2010.
DFR Investments
Prior to 2006, the Company was granted 404 shares of restricted common stock of DFR (the “DFR
Restricted Shares”) and options to purchase an additional 1,346 shares of common stock of DFR (collectively
with DFR Restricted Shares, the “DFR Investments”). The DFR Investments vested one third in each of 2005,
2006 and 2007. DFR Restricted Shares which vested had fair values of $1,236 and $2,270 in 2007 and 2006,
respectively. The restricted options that vested had fair values of $316 and $239 in 2007 and 2006,
respectively. During 2007 and 2006, the Company received unrestricted shares of common stock of DFR (the
“Incentive Fee Shares”) with respect to the payment of a portion of the incentive fees otherwise due to the
Company by DFR, aggregating 21 and 52 shares, respectively.
In May 2006, the Company granted an aggregate 50 of the vested DFR Restricted Shares owned by the
Company as restricted stock to two then employees of the Company. This restricted stock was scheduled to
vest ratably over a three-year vesting period with the first one-third vesting in February 2007. The remaining
two-thirds vested in December 2007 in connection with the Deerfield Sale. In March 2007, the Company
granted an aggregate 97 of the vested DFR Restricted Shares owned by the Company as restricted stock to
other then employees of the Company. These shares were anticipated to vest ratably over a three-year period
beginning in February 2008. Prior to vesting, the shares granted were accounted for under the Equity Method
(see Note 27). With the exception of the March 2007 grant of the vested DFR Restricted Shares to employees,
all of DFR Restricted Shares were distributed to the members of Deerfield immediately prior to the Deerfield
Sale.
116
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)