Wendy's 2008 Annual Report Download - page 156

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(21) Other Operating Expense (Income), Net
2008 2007 2006
Rent expense of properties subleased to third parties, net . ............. $ 3,114 $ — $ —
Equity in net earnings of joint venture with THI ..................... (1,974) — —
Other, net ......................................................... (487) 263 887
$ 653 $263 $887
(22) Other Expense, Net
2008 2007 2006
Interest income ................................................ $4,990 $ 725 $ 969
Amortization of fair value of debt guarantees (Note 26) ........... 79 618 192
Costs of a financing alternative not consummated................. (5,131) — —
Equity in net earnings (losses) of investees (Note 8) .............. (732) (2,096) 2,725
Gain (loss) on foreign currency put and call arrangement (Note 12) — (877) (420)
Costs related to a strategic business alternative not consummated . . — (369) (2,135)
Loss on investment in DFR of shares distributed from the 2007
Trusts (Note 8 and 27) ...................................... — (2,872) —
Gain from sales of investment in Encore (Note 8) ................ — 2,558 2,259
Gain on sale of a portion of the investment in Jurlique (Note 8) . . — — 1,722
Other income ................................................. 197 1,258 3,412
Other expense ................................................. (9) (301) (47)
$ (606) $(1,356) $ 8,677
(23) Discontinued Operations
Prior to 2006, we sold the stock of the companies comprising our former premium beverage and soft
drink concentrate business segments (collectively, the “Beverage Discontinued Operations”) and the stock or
the principal assets of the companies comprising SEPSCO’s former utility and municipal services and
refrigeration business segments (the “SEPSCO Discontinued Operations”). During 2006, we closed two Arby’s
restaurants which were a component of the Arby’s restaurants segment (the “Arby’s Restaurant Discontinued
Operations”).
The Company has accounted for all of these operations as discontinued operations.
The income (loss) from discontinued operations consisted of the following:
2008 2007 2006
Sales ........................................................... $ — $ — $ 725
Loss from operations before benefit from income taxes .............. $ — $ — $ (662)
Benefit from income taxes . . ...................................... — — 250
— — (412)
Gain (loss) on disposal of businesses before
benefit from income taxes...................................... 242 (247) (721)
Benefit from income taxes (see Note 14)........................... 1,975 1,242 1,004
2,217 995 283
Income (loss) from discontinued operations......................... $2,217 $ 995 $ (129)
148
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)