Wendy's 2009 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 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

At January 3, 2010 our investments were classified in the following general types or categories (in
millions):
Type At Cost At Fair Value (a) Amount Percent
Carrying Value
Cash equivalents ......................................... $238.4 $238.4 $238.4 67.5%
Current and non-current restricted cash equivalents. . . . . . . . . . 7.4 7.4 7.4 2.1%
Investment related receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1 0.1 0.0%
Investment accounted for as an available-for-sale security . . . . . 0.2 0.3 0.3 0.1%
Other non-current investments accounted for at:
Equity.............................................. 89.0 97.5 97.5 27.6%
Cost................................................ 9.5 11.3 9.5 2.7%
$344.6 $355.0 $353.2 100.0%
(a) There was no assurance at January 3, 2010 that we would have been able to sell certain of these investments
at these amounts.
At December 28, 2008 our investments were classified in the following general types or categories (in
millions):
Type At Cost At Fair Value (a)(b) Amount Percent
Carrying Value
Cash equivalents ....................................... $ 36.8 $ 36.8 $ 36.8 16.3%
Current and non-current restricted cash equivalents. . . . . . . . 54.8 54.8 54.8 24.3%
Investment related receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.4 0.4 0.2%
Investments accounted for as available-for-sale securities. . . . 30.2 30.4 30.4 13.5%
Other non-current investments accounted for at:
Equity............................................ 88.0 90.0 90.0 40.0%
Cost.............................................. 12.8 12.8 12.8 5.7%
$223.0 $225.2 $225.2 100.0%
Liability positions related to investments:
Securities sold with an obligation to purchase . . . . . . . . . . (19.8) (16.6) (16.6) 84.7%
Non-current derivatives in liability positions . . . . . . . . . . . — (3.0) (3.0) 15.3%
$ (19.8) $ (19.6) $ (19.6) 100.0%
(a) There was no assurance at December 28, 2008 that we would have been able to sell certain of these
investments at these amounts.
(b) Includes amounts managed in the Equities Account by the Management Company, described above.
Our investments which are accounted for at cost included limited partnerships and other non-current
investments in which we do not have significant influence over the investees. Realized gains and losses on our
investments recorded at cost are reported as income or loss in the period in which the securities are sold.
Investments accounted for in accordance with the equity method of accounting are those in which we have
significant influence over the investees and for which our results of operations include our share of the income
or loss of the investees. We review all of our investments in which we have unrealized losses and recognize
investment losses currently for any unrealized losses we deem to be other than temporary.
Sensitivity Analysis
Our estimate of market risk exposure is presented for each class of financial instruments held by us at
January 3, 2010 and December 28, 2008 for which an immediate adverse market movement would cause a
potential material impact on our financial position or results of operations. We believe that the adverse market
movements described below represent the hypothetical loss to our financial position or our results of operations
and do not represent the maximum possible loss nor any expected actual loss, even under adverse conditions,
63