Wendy's 2010 Annual Report Download - page 129

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)
subsequently recover, and write-downs in the carrying value of surplus properties and properties held for sale.
Additionally, in 2010, the Wendy’s impairment losses included write-downs in the carrying value of options to
purchase property.
During 2009, Wendy’s/Arby’s disposed of one of its owned aircraft and recorded additional impairment in
2009 based on the sale price. At December 28, 2008, Wendy’s/Arby’s classified the aircraft as held-for-sale and
recorded an impairment charge to reflect its estimated fair value as a result of an appraisal related to its potential sale.
All of these impairment losses represented the excess of the carrying amount over the fair value of the affected
assets and are included in “Impairment of long-lived assets.” The fair values of impaired assets discussed above for the
Wendy’s and Arby’s restaurant segments were generally estimated based on the present values of the associated cash
flows and on market value with respect to land (Level 3 inputs).
(18) Investment Income (Expense), Net
(Wendy’s/Arby’s)
2010 2009 2008
Interest income ............................................ $ 14 $ 249 $1,285
Distributions, including dividends ............................. 248 205 2,818
Gain on DFR Notes ........................................ 4,909 — —
Realized gains, net .......................................... 179 2,948 8,460
Unrealized losses, net ....................................... — — (1,128)
Fee on early withdrawal of Equities Account ...................... — (5,500) —
Other ................................................... (89) (910) (1,997)
$5,261 $(3,008) $ 9,438
(19) Other Than Temporary Losses on Investments
(Wendy’s/Arby’s)
2009 2008
Decline in fair value of DFR common stock .............................. $ — $ 68,086
Allowance for doubtful accounts for DFR Notes .......................... — 21,227
Decline in fair value of available-for-sale securities primarily held in the Equities
Account ....................................................... 801 13,109
Decline in fair value of cost method investments .......................... 3,115 10,319
$3,916 $112,741
(20) Discontinued Operations
(Wendy’s/Arby’s)
Prior to 2007, we sold the stock of the companies comprising our former premium beverage and soft drink
concentrate business segments and the stock or the principal assets of the companies comprising its former utility and
municipal services and refrigeration business segments. Wendy’s/Arby’s has accounted for all of these operations as
discontinued operations.
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