Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:



	September 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Measurements
Financial assets
Cash equivalents	$	444,012	$	444,012	$	338	$	338	Level 1
Non-current cost method investments (a)	640		2,409		639		327,710		Level 3

Financial liabilities
Series 2018-1 Class A-2-I Notes (b)	446,625		425,678		—		—		Level 2
Series 2018-1 Class A-2-II Notes (b)	471,438		449,186		—		—		Level 2
Series 2015-1 Class A-2-I Notes (b)	—		—		855,313		856,510		Level 2
Series 2015-1 Class A-2-II Notes (b)	873,000		866,714		879,750		897,961		Level 2
Series 2015-1 Class A-2-III Notes (b)	485,000		481,654		488,750		513,188		Level 2
7% debentures, due in 2025 (b)	90,454		104,500		89,514		107,000		Level 2
Guarantees of franchisee loan obligations (c)	22		22		37		37		Level 3

_______________

(a)

The fair value of our indirect investment in Arby’s as of December 31, 2017 was based on applying a multiple to Arby’s adjusted earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. On February 5, 2018, a subsidiary of ARG Parent acquired Buffalo Wild Wings, Inc. As a result, our ownership interest included both the Arby’s and Buffalo Wild Wings brands under the newly formed combined company, Inspire Brands. On August 16, 2018, the Company sold its remaining ownership interest to Inspire Brands for $450,000. See Note 7 for further information. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments.


(b)	The fair values were based on quoted market prices in markets that are not considered active markets.


(c)	Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for equipment financing. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage.

Fair value of assets and liabilities (other than cash and cash equivalents) measure at fair value on a nonrecurring basis



			Fair Value Measurements
	September 30, 2018		Level 1		Level 2		Level 3
Held and used	$	226	$	—	$	—	$	226
Held for sale	1,115		—		—		1,115
Total	$	1,341	$	—	$	—	$	1,341



			Fair Value Measurements
	December 31, 2017		Level 1		Level 2		Level 3
Held and used	$	757	$	—	$	—	$	757
Held for sale	1,560		—		—		1,560
Total	$	2,317	$	—	$	—	$	2,317