Wendy's 2009 Annual Report Download - page 71

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because actual adverse fluctuations would likely differ. As of January 3, 2010, we did not hold any market-risk
sensitive instruments which were entered into for trading purposes. As such, the table below reflects the risk
for those financial instruments entered into as of January 3, 2010 and December 28, 2008 based upon assumed
immediate adverse effects as noted below (in millions):
Carrying
Value
Interest
Rate Risk
Equity
Price Risk
Foreign
Currency
Risk
Year End 2009
Cash equivalents.......................................... $ 238.4 $ — $ — $ —
Current and non-current restricted cash equivalents . . . . . . . . . . 7.4 — ——
Available-for-sale equity security . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 — ——
Interest Rate Swaps....................................... 1.6 (5.6) — —
Equity investment ........................................ 97.5 — (9.8) (9.8)
Cost investments.......................................... 9.5 (0.1) (0.8) —
DFR Notes............................................... 25.7 (0.3) — —
Long-term debt, excluding capitalized lease and sale-leaseback
obligations—variable rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (251.5) (5.3) — —
Long-term debt, excluding capitalized lease and sale-leaseback
obligations—fixed rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,056.3) (36.7) — —
Carrying
Value
Interest
Rate Risk
Equity
Price Risk
Foreign
Currency
Risk
Year End 2008
Cash equivalents............................................ $ 36.8 $ — $ — $ (0.4)
Investment related receivables................................ 0.4 — ——
Current and non-current restricted cash equivalents . . . . . . . . . . . . 54.8 — ——
Available-for-sale equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 — ——
Available-for-sale equity securities—restricted . . . . . . . . . . . . . . . . . 30.2 — (3.0) —
Equity investments ......................................... 90.0 — (9.0) (9.0)
Cost investments ........................................... 12.8 (0.1) (1.2) —
DFR Notes ................................................ 25.3 (0.3) — —
Investments in liability positions:
Securities sold with an obligation to purchase—restricted . . . . . . (16.6) (0.2) (1.7) —
Total return swap on equity securities—restricted . . . . . . . . . . . . . (3.0) — (1.5) (1.1)
Long-term debt, excluding capitalized lease and sale-leaseback
obligations—variable rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (385.0) (11.9) — —
Long-term debt, excluding capitalized lease and sale-leaseback
obligations—fixed rate.................................... (495.9) (61.0) — —
The sensitivity analysis of financial instruments held at January 3, 2010 and December 28, 2008 assumes
(1) an instantaneous one percentage point adverse change in market interest rates, (2) an instantaneous 10%
adverse change in the equity markets in which we are invested and (3) an instantaneous 10% adverse change in
the foreign currency exchange rates versus the United States dollar, each from their levels at January 3, 2010
and December 28, 2008, respectively, and with all other variables held constant. The equity price risk reflects
the impact of a 10% decrease in the carrying value of our equity securities, including those in “Cost
investments” in the tables above. The sensitivity analysis also assumes that the decreases in the equity markets
and foreign exchange rates are other than temporary. We have not reduced the equity price risk for available-
for-sale investments and cost investments to the extent of unrealized gains on certain of those investments,
which would limit or eliminate the effect of the indicated market risk on our results of operations and, for cost
investments, our financial position.
Our cash equivalents and restricted cash equivalents included $238.4 million and $7.4 million,
respectively, as of January 3, 2010 of bank money market accounts and interest-bearing brokerage and bank
64