Wendy's 2009 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2009 Wendy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

Year ended
January 3, 2010
Quarter ended
December 28, 2008
Income statement information:
Revenues........................................... C$38,471 C$9,462
Income before income taxes and net income . . . . . . . . . . . 27,532 6,325
Investment in Jurlique International Pty Ltd.
We account for our approximately 11% investment in Jurlique International Pty Ltd. (“Jurlique”) (an
Australian manufacturer and multi-channel global marketer, which sells a high-end series of natural skincare
products in certain department stores, duty-free shops, company and franchised locations) under the Cost
Method since our voting interest does not provide us the ability to exercise significant influence over Jurlique’s
operational and financial policies. Jurlique is being affected by the global economic recession leading to lower
than anticipated sales and margins. Based on financial results provided by the company, which noted
significant declines in operations in 2008, economic conditions and our internal valuations of the company, we
determined that our investment in this company was more than likely not recoverable. Therefore, we recorded
other than temporary losses of $8,504 in 2008.
Investment Activity
Proceeds from sales of current and non-current available-for-sale securities, and gross realized gains and
gross realized losses on those transactions, which are included in “Investment (expense) income, net” are as
follows:
2009 2008 2007
Proceeds from sales........................................ $32,243 $87,301 $105,170
Gross realized gains ....................................... $ 3,035 $ 4,222 $ 21,691
Gross realized losses....................................... (618) (5,809) (682)
$ 2,417 $ (1,587) $ 21,009
The following is a summary of the components of the net change in unrealized gains and losses on
available-for-sale securities included in other comprehensive (loss) income:
2009 2008 2007
Unrealized holding gains (losses) arising during the year . . . . . . . . . $ 101 $(4,505) $ (9,842)
Reclassifications of prior year unrealized holding (gains) losses
into net income or loss..................................... (168) 8,206 (15,811)
Equity in change in unrealized holding (losses) gains arising
during the year ............................................ — (201) 2,170
(67) 3,500 (23,483)
Income tax benefit (provision) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 (1,288) 8,723
Non-controlling interests in increase in unrealized holding gains
of a consolidated subsidiary ................................. — — (697)
$ (49) $ 2,212 $(15,457)
96
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)