Wendy's 2010 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2010 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 190

  • 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
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190

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)
Based on financial results provided by the company, which noted significant declines in operations in 2008, economic
conditions and our internal valuations of the company, we determined that our investment in this company was more
than likely not recoverable. Therefore, we recorded other than temporary losses of $8,504 in 2008. In the third
quarter of 2010, the Company made an additional investment of $325 in Jurlique. As of January 2, 2011, based on
our review of the company’s most recent results of operations and financial condition, we concluded that the carrying
value of this cost investment was recoverable.
Investment Activity
(Wendy’s/Arby’s)
Proceeds from sales of current and non-current available-for-sale securities, and gross realized gains and gross
realized losses on those transactions, which are included in “Investment income (expense), net” are as follows:
2010 2009 2008
Proceeds from sales .......................................... $288 $32,243 $87,301
Gross realized gains .......................................... $125 $ 3,035 $ 4,222
Gross realized losses ......................................... — (618) (5,809)
$125 $ 2,417 $ (1,587)
The following is a summary of the components of the net change in unrealized gains and losses on
available-for-sale securities included in other comprehensive income (loss):
2010 2009 2008
Unrealized holding gains (losses) arising during the year ............... $— $ 101 $(4,505)
Reclassifications of prior year unrealized holding (gains) losses into net
income or loss ............................................ (101) (168) 8,206
Equity in change in unrealized holding (losses) gains arising during the
year .................................................... — — (201)
(101) (67) 3,500
Income tax benefit (provision) .............................. 42 18 (1,288)
$ (59) $ (49) $ 2,212
(8) Properties
Year End 2010
Wendy’s/Arby’s
Restaurants Corporate Wendy’s/Arby’s
Owned:
Land ...................................... $ 467,715 $ — $ 467,715
Buildings and improvements .................... 426,958 — 426,958
Office, restaurant and transportation equipment ..... 454,768 24,434 479,202
Leasehold improvements ....................... 393,904 3,499 397,403
Leased (a):
Capitalized leases ............................. 111,622 — 111,622
Sale-leaseback assets ........................... 123,791 — 123,791
1,978,758 27,933 2,006,691
Accumulated depreciation and amortization ............ (436,905) (18,525) (455,430)
$1,541,853 $ 9,408 $1,551,261
100