Wendy's 2009 Annual Report Download - page 69

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Overall Market Risk
Our overall market risk as of January 3, 2010 includes cash equivalents, certain cost investments and our
equity investment in TimWen. As of January 3, 2010 and December 28, 2008, these investments were
classified in our consolidated balance sheets as follows (in millions):
2009 2008
Year End
Cash equivalents included in “Cash and cash equivalents” . . . . . . . . . . . . . . . . . . . . $238.4 $ 36.8
Current restricted cash equivalents ........................................ 1.1 20.8
Investment related receivables included in “Accounts and notes receivable”. . . . . 0.1 —
Short-term investments included in “Prepaid expenses and other current assets” 0.3 0.2
Non-current restricted cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 34.0
Non-current investments.................................................. 107.0 133.0
Investment related receivables included in “Deferred costs and other assets” . . . . — 0.4
$353.2 $225.2
Certain liability positions related to investments included in “Other
liabilities”:
Derivatives in liability positions....................................... $ — $ (3.0)
Securities sold with an obligation to purchase . . . . . . . . . . . . . . . . . . . . . . . . . . — (16.6)
$ — $ (19.6)
Equities Account
Prior to 2007, we invested $75.0 million in the Equities Account, which was 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 the Withdrawal Agreement which
provided that we would be permitted to withdraw all amounts in 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 $47.0 million was
released 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 $5.5 million, were not required to return the $47.0 million referred to above and were
no longer obligated to pay investment management and incentive fees to the Management Company. The
Equities Account investments were liquidated in the Equities Sale, of which $31.9 million was received by us,
net of the Withdrawal Fee and for which we realized a gain of $2.3 million in the 2009, both included in
“Investment expense (income), net.”
Our cash equivalents are short-term, highly liquid investments with maturities of three months or less
when acquired and consisted principally of cash in bank, money market and mutual fund money market
accounts, and are primarily not in Federal Deposit Insurance Corporation (“FDIC”) insured accounts, $7.4
million of which was restricted as of January 3, 2010.
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