|
|
 | | | |
- close
- close
- close
- close
| |||||||||
These excerpts taken from the WEN 10-K filed Mar 13, 2009. Impairments
Goodwill
The
Company tests goodwill for impairment annually, or more frequently if events or
changes in circumstances indicate that the asset may be impaired, by comparing
the fair value of each reporting unit, using discounted cash flows or market
multiples based on earnings, to the carrying value to determine if there is an
indication that a potential impairment may exist. If we determine that an
impairment may exist, we then measure the amount of the impairment loss as the
excess, if any, of the carrying amount of the goodwill over its implied fair
value. In determining the implied fair value of the reporting unit’s goodwill,
the Company allocates the fair value - 80
-
WENDY’S/ARBY’S
GROUP, INC. AND SUBSIDIARIES
(FORMERLY
TRIARC COMPANIES, INC.)
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(In
Thousands Except Per Share Amounts )
of a
reporting unit to all of the assets and liabilities of that unit as if the unit
had been acquired in a business combination and the fair value of the reporting
unit was the price paid to acquire the reporting unit. The excess of
the fair value of the unit over the amounts assigned to the assets and
liabilities is the implied fair value of goodwill. If the carrying amount of a
reporting unit’s goodwill exceeds the implied fair value of that goodwill, an
impairment loss is recognized in an amount equal to that excess.
Following
the Wendy’s Merger, the Company operates in two business segments consisting of
two restaurant brands: (1) Wendy’s restaurant operations and (2) Arby’s
restaurant operations. Each segment includes Company-owned restaurants and
franchise reporting units which are considered to be separate reporting units
for purposes of measuring goodwill impairment under SFAS 142.
See Notes
9 and 18 for further disclosure related to the Company’s Goodwill
impairment.
Long-lived
assets
The
Company reviews its long-lived assets for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable. If such review indicates an asset may not be
recoverable, an impairment loss is recognized for the excess of the carrying
amount over the fair value of an asset to be held and used or over the fair
value less cost to sell of an asset to be disposed.
See Note
18 for further disclosure related to the Company’s impairment
charges.
Impairments Goodwill The Company tests goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired, by comparing the fair value of each reporting unit, using discounted cash flows or market multiples based on earnings, to the carrying value to determine if there is an indication that a potential impairment may exist. If we determine that an impairment may exist, we then measure the amount of the impairment loss as the excess, if any, of the carrying amount of the goodwill over its implied fair value. In determining the implied fair value of the reporting unit’s goodwill, the Company allocates the fair value - 80 - - WENDY’S/ARBY’S GROUP, INC. AND SUBSIDIARIES (FORMERLY TRIARC COMPANIES, INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED (In Thousands Except Per Share Amounts ) of a reporting unit to all of the assets and liabilities of that unit as if the unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of the unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Following the Wendy’s Merger, the Company operates in two business segments consisting of two restaurant brands: (1) Wendy’s restaurant operations and (2) Arby’s restaurant operations. Each segment includes Company-owned restaurants and franchise reporting units which are considered to be separate reporting units for purposes of measuring goodwill impairment under SFAS 142. See Notes 9 and 18 for further disclosure related to the Company’s Goodwill impairment. Long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such review indicates an asset may not be recoverable, an impairment loss is recognized for the excess of the carrying amount over the fair value of an asset to be held and used or over the fair value less cost to sell of an asset to be disposed. See Note 18 for further disclosure related to the Company’s impairment charges. This excerpt taken from the WEN 10-K filed Feb 29, 2008. Impairments
Goodwill
The
Company reviews its goodwill for impairment at least annually. The
amount of impairment, if any, in goodwill is measured by the excess, if any, of
the net carrying amount of the goodwill over its implied fair
value.
Although
the Company reports its Company-owned restaurants and its franchising of
restaurants as one business segment and acquired Sybra and RTM with the
expectation of strengthening and increasing the value of its Arby’s brand, its
Company-owned restaurants are considered to be a separate reporting unit for
purposes of measuring goodwill impairment under SFAS
142. Accordingly, goodwill is tested for impairment at the
Company-owned restaurant level based on its separate cash flows independent of
the Company’s strategic reasons for owning restaurants. The reporting
unit for Company-owned restaurants includes the restaurants acquired in both the
December 2002 acquisition of Sybra, Inc. (the “Sybra Acquisition”) and the
acquisition of RTM (see Note 3).
Long-Lived
Assets
The
Company reviews its long-lived assets for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable. If such review indicates an asset may not be
recoverable, an impairment loss is recognized for the excess of the carrying
amount over the fair value of an asset to be held and used or over the fair
value less cost to sell of an asset to be disposed.
See Note
19 for further disclosure related to the Company’s impairment
charges.
This excerpt taken from the WEN 10-K filed Mar 1, 2007. Impairments Goodwill The Company reviews its goodwill for impairment at least annually. The amount of impairment, if any, in goodwill is measured by the excess, if any, of the net carrying amount of the goodwill over its implied fair value. Although the Company reports its Company-owned restaurants and its franchising of restaurants as one business segment and acquired Sybra and RTM with the expectation of strengthening and increasing the value of its Arby’s brand, its Company-owned restaurants are considered to be a separate reporting unit for purposes of measuring goodwill impairment under SFAS 142. Accordingly, goodwill is tested for impairment at the Company-owned restaurant level based on its separate cash flows independent of the Company’s strategic reasons for owning restaurants. The reporting unit for Company-owned restaurants includes the restaurants 89
Triarc Companies, Inc. and Subsidiaries acquired in both the December 2002 acquisition of Sybra, Inc. (the “Sybra Acquisition”) and the acquisition of RTM (see Note 3). Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such review indicates an asset may not
be recoverable, an impairment loss is recognized for the excess of the carrying amount over the fair value of an asset to be held and used or over the fair value less cost to sell of an asset to be disposed. See Note 19 for further disclosure related to the Company’s impairment charges. | EXCERPTS ON THIS PAGE:
|
| |||||||
