Wendy's 2008 Annual Report Download - page 82

At December 30, 2007 our investments were classified in the following general types or categories (in
millions):
Type At Cost
At Fair
Value (a)(b) Amount Percent
Carrying Value
Cash equivalents . ............................................. $ 60.5 $ 60.5 $ 60.5 24.1%
Investment related receivables.................................. 0.4 0.4 0.4 0.1%
Current and non-current investments accounted for as
available-for-sale securities (c)................................ 124.6 121.0 121.0 48.3%
Other current and non-current investments in investment
limited partnerships and similar investment entities
accounted for at cost........................................ 2.1 2.4 2.1 0.9%
Other current and non-current investments accounted for at:
Cost .................................................... 11.9 16.5 11.9 4.7%
Equity .................................................. 1.9 1.6 1.9 0.8%
Fair value . . ............................................. 5.9 7.6 7.6 3.0%
Non-current restricted cash equivalents ......................... 45.3 45.3 45.3 18.1%
Total cash equivalents and long investment positions ............ $252.6 $255.3 $250.7 100.0%
Liability positions related to investments:
Non-current derivatives in liability positions .................... $ — $ (0.3) $ (0.3) 100.0%
(a) There was no assurance at December 30, 2007 that we would have been able to sell certain of these
investments at these amounts.
(b) Includes amounts managed in the Equities Account by the Management Company, detailed above.
(c) In addition to the Equities Account information included in footnote (b), non-current investments
accounted for as available-for-sale securities includes $70.4 million of the carrying and fair value of DFR
preferred stock, net of unrecognized gain.
Our marketable securities are reported at fair market value and are classified and accounted for as
“available-for-sale” with net unrealized holding gains or losses, net of income taxes, reported as a separate
component of comprehensive income or loss bypassing net income or loss. Investment limited partnerships and
other non-current investments in which we do not have significant influence over the investees are accounted
for at cost. Unrealized holding gains or losses, net of income taxes, for derivatives and securities sold with an
obligation to purchase (“short-sales”) are reported as a component of net income or loss. Realized gains and
losses on investment limited partnerships and other non-current investments recorded at cost are reported as
income or loss in the period in which the securities are sold. Investments in which we have significant
influence over the investees are accounted for in accordance with the equity method of accounting under which
our results of operations include our share of the income or loss of the investees. We review all of our
investments in which we have unrealized losses and recognize investment losses currently for any unrealized
losses we deem to be other than temporary. The cost-basis component of investments reflected in the tables
above and below represents original cost less a permanent reduction for any unrealized losses that were deemed
to be other than temporary.
Sensitivity Analysis
Our estimate of market risk exposure is presented for each class of financial instruments held by us at
December 28, 2008 and December 30, 2007 for which an immediate adverse market movement causes a
potential material impact on our financial position or results of operations. We believe that the adverse market
movements described below represent the hypothetical loss to future earnings and do not represent the
maximum possible loss nor any expected actual loss, even under adverse conditions, because actual adverse
fluctuations would likely differ. In addition, since our investment portfolio is subject to changes in our
portfolio management strategy, and general market conditions, these estimates are not necessarily indicative of
the actual results which may occur. As of December 28, 2008, we did not hold any market-risk sensitive
instruments which were entered into for trading purposes. As such, the table below reflects the risk for those
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