Wendy's 2009 Annual Report Download - page 102

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2007
Income statement information:
Revenues................................................................. $92,536
Loss before income taxes................................................... (95,256)
Net loss.................................................................. (96,591)
Investment in joint venture with Tim Hortons Inc.
Wendy’s is a partner in TimWen and our 50% share of the joint venture is accounted for using the
Equity Method. Our equity in earnings from this joint venture is included in “Other operating expense, net.”
The carrying value of our investment in TimWen exceeded the Company’s interest in the underlying equity of
the joint venture by $59,446 and $54,787 as of January 3, 2010 and December 28, 2008, respectively,
primarily due to purchase price adjustments recorded in the Wendy’s Merger, net of accumulated amortization.
This purchase price adjustment is being accounted for as if TimWen were a consolidated subsidiary, and is
assumed to have been allocated to net amortizable assets with an average life of 21.2 years.
Presented below is activity related to our portion of TimWen included in our Consolidated Balance Sheets
and Consolidated Statements of Operations as of and for the year ended January 3, 2010 and the quarter ended
December 28, 2008.
2009 2008
Balance at beginning of period....................................... $89,771 $ 41,649
Purchase price adjustments .......................................... — 65,455
89,771 107,104
Equity in net earnings for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,334 2,630
Amortization of purchase price adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,835) (656)
8,499 1,974
Distributions....................................................... (14,583) (2,864)
Currency translation adjustment included in “Comprehensive Income” . . . 13,789 (16,443)
Balance at end of period ............................................ $97,476 $ 89,771
Presented below is a summary of financial information of TimWen as of and for the year and quarter
ended January 3, 2010 and December 28, 2008, respectively, in Canadian dollars. The summary balance sheet
financial information does not distinguish between current and long-term assets and liabilities:
January 3, 2010 December 28, 2008
Balance sheet information:
Properties.......................................... C$83,078 C$87,292
Cash and cash equivalents ........................... 75 5,063
Accounts receivable ................................. 4,989 3,339
Other.............................................. 3,150 3,142
C$91,292 C$98,836
Accounts payable and accrued liabilities. . . . . . . . . . . . . . . C$ 2,257 C$ 2,521
Other liabilities..................................... 9,081 10,893
Partners’ equity..................................... 79,954 85,422
C$91,292 C$98,836
95
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)