Wendy's 2013 Annual Report Download - page 60

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As such, the table below reflects the risk for those financial instruments entered into as of December 29, 2013
and December 30, 2012 based upon assumed immediate adverse effects as noted below (in millions):
Year End 2013
Carrying
Value
Interest
Rate Risk
Cash flow hedges .................................................. $ 1.2 $(12.7)
Variable-rate long-term debt, excluding capital lease obligations .............. (1,338.1) (61.1)
Fixed-rate long-term debt, excluding capital lease obligations ................ (85.0) (0.1)
Year End 2012
Carrying
Value
Interest
Rate Risk
Fair value hedges .................................................. $ 8.2 $ (2.1)
Variable-rate long-term debt, excluding capital lease obligations .............. (1,114.8) (68.7)
Fixed-rate long-term debt, excluding capital lease obligations ................ (310.2) (12.0)
The sensitivity analysis of financial instruments held at December 29, 2013 and December 30, 2012 assumes
an instantaneous one percentage point adverse change in market interest rates from their levels at December 29, 2013
and December 30, 2012, with all other variables held constant.
As of December 29, 2013, the Company had both fixed and variable interest rate debt outstanding. The
interest rate risk presented above for variable-rate debt represents the potential impact an increase in interest rates of
one percentage point has on our results of operations related to our $1,338.1 million of variable interest rate
long-term debt outstanding as of December 29, 2013. As discussed under “Interest Rate Risk,” the Company has
forward starting interest rate swaps on $450.0 million of its variable-rate debt presented above which are effective
beginning on June 30, 2015. As such, the interest rate risk presented in the table above, excludes the effect of the
Cash flow hedges. The Company’s variable-rate long-term debt outstanding as of December 29, 2013 had a weighted
average remaining maturity of approximately five years. The interest rate risk presented above for fixed-rate debt
represents the potential impact a decrease in interest rates of one percentage point has on the fair value of our $85.0
million fixed-rate debt and not on the Company’s financial position or results of operations.
As of December 30, 2012, the Company had both fixed and variable interest rate debt outstanding. The
interest rate risk presented for fixed-rate debt, as of December 30, 2012, represents the potential impact a decrease in
interest rates of one percentage point has on the fair value of our $310.2 million fixed-rate debt and not on the
Company’s financial position or results of operations. As discussed above under “Interest Rate Risk,” the Company
had fair value hedges on a portion of its fixed-rate debt. The interest rate risk for fixed-rate debt, as of December 30,
2012, presented in the table above excludes the effect of the Fair value hedges.
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