Wendy's 2009 Annual Report Download - page 110

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(10) Fair Value of Financial Instruments
The carrying amounts and estimated fair values of the Company’s financial instruments for which the
disclosure of fair values is required were as follows:
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
2009 2008
Year End
Financial assets:
Cash and cash equivalents (a) . . . . . . . . . . . . . . . . . . . . $ 591,719 $ 591,719 $ 90,090 $ 90,090
Restricted cash equivalents (a):
Current...................................... 1,114 1,114 20,792 20,792
Non-current ................................. 6,242 6,242 34,032 34,032
Short-term investment (b) ....................... 263 263 162 162
DFR Notes receivable (c) . . . . . . . . . . . . . . . . . . . . . . . . 25,696 28,655 25,344 25,344
Non-current Cost Investments for which it is:
Practicable to estimate fair value (d) . . . . . . . . . . . 9,544 11,355 12,010 11,927
Not practicable to estimate fair value (e) . . . . . . . — — 788 —
Restricted investments (b) . . . . . . . . . . . . . . . . . . . . . . . — — 30,271 30,271
Interest Rate Swaps (f) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,589 1,589 — —
Financial liabilities:
Long-term debt, including current portion:
10.00% Senior Notes (b). . . . . . . . . . . . . . . . . . . . . . 551,779 610,200 — —
Senior secured term loan, weighted average
effective interest of 7.25% as of January 3,
2010 (b) .................................. 251,488 252,904 385,030 238,718
6.20% senior notes (b) . . . . . . . . . . . . . . . . . . . . . . . . 204,303 223,425 199,111 168,974
6.25% senior notes (b) . . . . . . . . . . . . . . . . . . . . . . . . 193,618 199,200 188,933 176,000
Sale-leaseback obligations (g) . . . . . . . . . . . . . . . . . . 125,176 118,634 123,829 136,707
Capitalized lease obligations (g). . . . . . . . . . . . . . . . 89,886 86,706 106,841 111,788
7% Debentures (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,081 85,500 78,974 61,320
6.54% Secured equipment term loan (g). . . . . . . . 18,901 18,790 19,790 21,072
Other ....................................... 7,679 7,643 9,069 9,262
Total long-term debt, including current
portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,522,911 $1,603,002 $1,111,577 $923,841
Securities sold with an obligation to purchase—
restricted (b)............................... $ — $ — $ 16,626 $ 16,626
Other derivatives in liability positions—
restricted (b)............................... — — 2,979 2,979
Guarantees of:
Lease obligations for Arby’s restaurants not
operated by the Company (h). . . . . . . . . . . . . . . . . . 382 382 460 460
Debt obligations of AmeriGas Eagle Propane, L.P. (i) — — — 690
Wendy’s franchisee loans obligations (j) . . . . . . . . . . . $ 592 $ 592 $ 706 $ 706
(a) The carrying amounts approximated fair value due to the short-term maturities of the cash equivalents or
restricted cash equivalents.
(b) The fair values are based on quoted market prices.
(c) The fair value of the DFR Notes is based on the present value of the probability weighted average of
expected cash flows of the DFR Notes.
103
Wendy’s/Arby’s Group, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)