Wendy's 2009 Annual Report Download - page 109

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The Company’s cash flow hedges included the Term Loan Swap Agreements and the equity in DFR’s cash
flow hedges. The following is a summary of the components of the net change in unrealized gains and losses on
cash flow hedges included in comprehensive income (loss):
2008 2007
Unrealized holding gains (losses) arising during the year . . . . . . . . . . . . . . . . . . . . $251 $ (826)
Equity in change in unrealized holding gains (losses) arising during the year . . 3 (1,087)
Reclassifications of prior year unrealized holding gains into net income or loss — (1,951)
254 (3,864)
Income tax (provision) benefit............................................. (99) 1,472
$155 $(2,392)
The following income and expense items were recognized by the Company related to its derivative
activity during each of the years presented below:
2009 2008 2007
Interest expense (income):
Interest Rate Swaps...................................... $(2,865) $ — $ —
Term Loan Swap Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,797 (1,917)
Investment expense (income), net:
Put and call option combinations on equity securities . . . . . . (286) (2,411) (3,315)
Total return swaps on equity securities . . . . . . . . . . . . . . . . . . . . — 5,165 (2,144)
Put options............................................. — (1,036) 1,036
Trading derivatives...................................... — — 741
Other expense, net:
Settlement of foreign currency put and call arrangement . . . . — — 877
$(3,151) $ 3,515 $(4,722)
102
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)