Wendy's 2011 Annual Report Download - page 115

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THE WENDY’S COMPANY AND SUBSIDIARIES
WENDY’S RESTAURANTS, LLC AND SUBSIDIARIES
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
Arby’s company-owned restaurant impairment losses of $43,151 and $56,513 in 2010 and 2009, respectively,
predominantly reflected impairment charges on restaurant level assets resulting from the deterioration in operating
performance of certain restaurants and additional charges for capital improvements in restaurants impaired in prior
years which did not subsequently recover. These impairment losses represented the excess of the carrying amount over
the fair value of the affected assets and are included in discontinued operations and not included in the table above.
Arby’s impairment losses for the period from January 3, 2011 through July 4, 2011 (its date of sale) were not
significant. See Note 2 for more information on discontinued operations.
The fair values of impaired assets were generally estimated based on the present values of the associated cash
flows and on market value with respect to land (Level 3 inputs).
(20) Investment Income (Expense), Net
(The Wendy’s Company)
2011 2010 2009
Interest income .............................................. $ 8 $ 12 $ 165
Distributions, including dividends ............................... 234 248 205
Gain on DFR Notes .......................................... — 4,909 —
Realized gains, net ............................................ 250 179 2,948
Fee on early withdrawal of Equities Account ........................ — — (5,500)
Other ..................................................... (8) (89) (910)
$484 $5,259 $(3,092)
(21) Other Than Temporary Losses on Investments
(The Wendy’s Company)
2009
Decline in fair value of available-for-sale securities primarily held in the Equities Account ...... $ 801
Decline in fair value of cost method investments ..................................... 3,115
$3,916
(22) Retirement Benefit Plans
401(k) Plans
Subject to certain restrictions, the Companies have a 401(k) defined contribution plan (the “401(k) Plan”) for
all of its employees who meet certain minimum requirements and elect to participate. Effective January 1, 2010, there
were prior existing 401(k) plans (the “Prior Plans”) that were combined into the 401(k) Plan. The 401(k) Plan
permits employees to contribute up to 75% of their compensation, subject to certain limitations and provides for
matching contributions of employee contributions up to 4% of compensation and for discretionary profit sharing
contributions.
Under the Prior Plans, employees could contribute various percentages of their compensation ranging up to a
maximum of 50% or 75%, depending on the respective plan, subject to certain limitations. The Prior Plans provided
for matching contributions of employee contributions up to 6% depending on the respective plan. Some of these
Prior Plans also permitted or required profit sharing contributions.
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