Wendy's International (WEN)

Amortization of Intangibles and Deferred Costs

Goodwill, representing the costs in excess of net assets of acquired companies, is not amortized.

Asset management contracts are amortized on the straight-line basis over their estimated lives of 5 to 27 years for CDO contracts and 15 years for contracts under which the Company manages investment funds.

Other intangible assets are amortized on the straight-line basis using the following estimated useful lives of the related classes of intangibles: the terms of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising, for favorable leases; 20 years for reacquired rights under franchise agreements; 3 to 5 years for costs of computer software acquired new; 2 years for costs of computer software acquired used; 15 years for trademarks and distribution rights and 3 to 8 years for non-compete agreements.

Deferred financing costs and original issue debt discount are amortized as interest expense over the lives of the respective debt using the interest rate method.

See Note 9 for further information with respect to the Company’s intangible assets.

Amortization of Intangibles and Deferred Costs

       Goodwill, representing the costs in excess of net assets of acquired companies, is not amortized.

       Asset management contracts are amortized on the straight-line basis over their estimated lives of 2 years to 27 years for CDO contracts and 15 years for contracts under which the Company acts as the investment manager for investment funds.

       Other intangible assets are amortized on the straight-line basis using the estimated useful lives of the related classes of intangibles: the lives of the respective leases, including periods covered by renewal options that the Company is reasonably assured of exercising, for favorable leases; 20 years for reacquired rights under franchise agreements; 3 years to 5 years for costs of computer software acquired new; 2 years for costs of computer software acquired used; 15 years for trademarks and distribution rights and 2 years to 8 years for non-compete agreements.

       Deferred financing costs and original issue debt discount are amortized as interest expense over the lives of the respective debt using the interest rate method.

       See Note 9 for further information with respect to the Company's intangible assets.