Wendy's 2009 Annual Report Download - page 100

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(6) Investments
Short-Term
The Company’s short-term investment, included in “Prepaid expenses and other current assets,” was
carried at a fair market value of $263 and $162 at January 3, 2010 and December 28, 2008, respectively, and
was our only remaining short-term investment as of the end of 2009 and 2008. On January 8, 2010, we sold
the short-term investment for approximately $288.
Long-Term
The following is a summary of the carrying value of non-current investments:
Year End 2009
Carrying Value Cost (a) Gains Losses
Fair
Value
Carrying
Value
Unrealized Holding
Year End 2008
Restricted investments held in the
Equities Account:
Available-for-sale marketable
equity securities, at fair value . $30,103 $410 $(242) $30,271 $ 30,271
Non-marketable equity securities,
at cost ...................... 143
30,414
Other:
At equity:
Joint venture with THI . . . . $ 97,476 89,771
Other..................... — 212
At cost: ....................... 9,544 12,655
107,020 102,638
$107,020 $133,052
(a) The cost of available-for-sale securities have been reduced by any “Other Than Temporary Losses on
Investments.”
Equities Account
In 2005, we invested $75,000 in brokerage accounts (the “Equities Account”), which were managed by
the Management Company. The Equities Account was invested principally in equity securities, cash
equivalents and equity derivatives of a limited number of publicly-traded companies. In addition, the Equities
Account sold securities short and invested in market put options in order to lessen the impact of significant
market downturns.
In June 2009, we and the Management Company entered into a withdrawal agreement (the “Withdrawal
Agreement”) which provided that we would be permitted to withdraw all amounts in the Equities Account on
an accelerated basis (the “Early Withdrawal”) effective no later than June 26, 2009. Prior to the Withdrawal
Agreement and as a result of an investment management agreement with the Management Company which
was terminated on June 26, 2009, we had not been permitted to withdraw any amounts from the Equities
Account until December 31, 2010, although $47,000 was released to us from the Equities Account in 2008
subject to an obligation to return that amount to the Equities Account by a specified date. In consideration for
obtaining such Early Withdrawal right, we agreed to pay the Management Company $5,500 (the “Withdrawal
Fee”), were not required to return the $47,000 referred to above and were no longer obligated to pay
investment management and incentive fees to the Management Company. The Equities Account investments
93
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)