Wendy's 2008 Annual Report Download - page 159

2008 2007 2006
Unrecognized pension (loss) recovery:
Net (loss) gain arising during the year. ........................... $(854) $227 $ 468
Amortization of unrecognized net loss to net periodic pension cost . . 23 26 48
(831) 253 516
Deferred income tax benefit (provision) ................................ 311 (90) (189)
$(520) $163 $ 327
The actuarial assumptions used in measuring the net periodic pension cost and accumulated benefit
obligations are as follows:
2008 2007 2006
Net periodic pension cost:
Expected long-term rate of return on plan assets ....................... 6.5% 6.5% 7.5%
Discount rate ....................................................... 6.0% 5.5% 5.0%
Benefit obligations at end of year:
Discount rate ....................................................... 6.3% 6.0% 5.5%
The expected long-term rate of return on plan assets of 6.5% reflects the Company’s estimate of the
average returns on plan investments and after giving consideration to the targeted asset allocation discussed
below.
The effect of the increase in the discount rate, used in determining the net periodic pension cost, from
2007 to 2008 resulted in an immaterial decrease in the net periodic pension cost. The effect of the increase in
the discount rate, used in determining the accumulated benefit obligation, from 2007 to 2008 resulted in a
decrease in the accumulated benefit obligation of $80. The effect of the decrease in the expected long-term rate
of return on plan assets, used in determining the net periodic pension cost, from 2006 to 2007 resulted in an
increase in the net periodic pension cost of $36. The effect of the increase in the discount rate used in
determining the accumulated benefit obligations, from 2006 to 2007 resulted in a decrease in the accumulated
benefit obligation of $188.
The weighted-average asset allocations of the two defined benefit plans for other than Wendy’s employees
by asset category at December 28, 2008 and December 30, 2007 are as follows:
2008 2007
Year-End
Debt securities................................................................. 65% 60%
Equity securities ............................................................... 31% 38%
Cash and cash equivalents....................................................... 4% 2%
100% 100%
Since the benefits under the Company’s defined benefit plans are frozen, the strategy for the investment of
plan assets is weighted towards capital preservation. Accordingly, the target asset allocation is 60% of assets in
debt securities with intermediate maturities and 40% in large capitalization equity securities.
The Company currently expects to contribute an aggregate $375 to its two defined benefit plans in 2009.
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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)