Wendy's 2015 Annual Report Download - page 120

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THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)
its operating agreement. The ownership percentages in 280 BT for the purpose of the distribution and as of
December 29, 2013 for The Wendy’s Company, the former officers of The Wendy’s Company and other investors
were 80.1%, 11.2% and 8.7%, respectively. The distribution during the first quarter of 2014 to
The Wendy’s Company and the former officers of The Wendy’s Company was $22 and $5, respectively. 280 BT did
not make any distributions to its members in 2013.
(23) Legal and Environmental Matters
We are involved in litigation and claims incidental to our current and prior businesses. We provide accruals for
such litigation and claims when payment is probable and reasonably estimable. As of January 3, 2016, the Company
had accruals for all of its legal and environmental matters aggregating $3,008. We cannot estimate the aggregate
possible range of loss due to most proceedings being in preliminary stages, with various motions either yet to be
submitted or pending, discovery yet to occur, and significant factual matters unresolved. In addition, most cases seek
an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement
discussions or judicial or arbitral decisions is thus inherently difficult. Based on currently available information,
including legal defenses available to us, and given the aforementioned accruals and our insurance coverage, we do not
believe that the outcome of these legal and environmental matters will have a material effect on our consolidated
financial position or results of operations.
(24) Advertising Costs and Funds
We currently participate in two national advertising funds (the “Advertising Funds”) established to collect and
administer funds contributed for use in advertising and promotional programs. Contributions to the Advertising
Funds are required from both company-owned and franchised restaurants and are based on a percentage of restaurant
sales. In addition to the contributions to the various Advertising Funds, company-owned and franchised restaurants
make additional contributions to other local and regional advertising programs.
Restricted assets and related liabilities of the Advertising Funds at January 3, 2016 and December 28, 2014
were as follows:
Year End
2015 2014
Cash and cash equivalents ............................................ $13,704 $15,085
Accounts and notes receivable ......................................... 50,231 42,717
Other assets ...................................................... 3,464 7,506
Total assets ................................................... $67,399 $65,308
Accounts payable .................................................. $ 3,872 $ 3,736
Accrued expenses and other current liabilities ............................. 64,603 70,206
Member’s deficit ................................................... (1,076) (8,634)
Total liabilities and deficit ....................................... $67,399 $65,308
Our advertising expenses in 2015, 2014 and 2013 totaled $64,312, $73,454 and $94,498, respectively.
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