Wendy's 2010 Annual Report Download - page 104

WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES
WENDY’S/ARBY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
(6) Pledged assets
The following is a summary of assets pledged as collateral for certain debt:
Year End 2010
Wendy’s
/Arby’s
Restaurants Corporate
Wendy’s
/Arby’s
Cash and cash equivalents ............................. $ 172,921 $ — $ 172,921
Accounts and notes receivable (including long-term) ......... 92,336 — 92,336
Inventories ......................................... 21,558 — 21,558
Properties ......................................... 497,420 9,183 506,603
Goodwill .......................................... 841,156 — 841,156
Other intangible assets ................................ 1,233,530 — 1,233,530
Other assets ........................................ 24,309 13 24,322
$2,883,230 $9,196 $2,892,426
Year End 2009
Wendy’s
/Arby’s
Restaurants Corporate
Wendy’s
/Arby’s
Cash and cash equivalents ............................. $ 515,655 $ — $ 515,655
Accounts and notes receivable (including long-term) ......... 98,320 — 98,320
Inventories ......................................... 21,870 — 21,870
Investments ........................................ 4,664 — 4,664
Properties ......................................... 520,722 10,812 531,534
Other intangible assets ................................ 1,256,800 — 1,256,800
$2,418,031 $10,812 $2,428,843
(7) Investments
The following is a summary of the carrying value of our investments:
Year End
2010 2009
At equity: Joint venture with THI ................................... $ 98,631 $ 97,476
Cost investment ................................................. 3,775 4,664
Total Wendy’s/Arby’s Restaurants ............................... 102,406 102,140
Cost investments ................................................ 4,817 4,880
Total Wendy’s/Arby’s ......................................... $107,223 $107,020
Investment in joint venture with Tim Hortons Inc.
Wendy’s is a partner in TimWen and our 50% share of the joint venture is accounted for using the equity
method of accounting. Our equity in earnings from this joint venture is included in “Other operating expense,
net.” The carrying value of our investment in TimWen exceeded the Companies’ interest in the underlying equity of
the joint venture by $60,306 and $59,446 as of January 2, 2011 and January 3, 2010, respectively, primarily due to
purchase price adjustments recorded in the Wendy’s Merger, net of accumulated amortization. This purchase price
adjustment is being accounted for as if TimWen were a consolidated subsidiary, and is assumed to have been allocated
to net amortizable assets with an average life of 21.2 years from the Closing Date.
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