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Total assets $26,211 21,453
Note to Consolidated Financial Statements (In Part)
Note 1. Summary of Significant Accounting Policies (In Part)
The excess of the cost over the fair value of net assets of purchased businesses is recorded as goodwill and is amortized on a
straight-line basis over periods of 40 years or less. The cost of other acquired intangibles is amortized on a straight-line basis
over their estimated useful lives. The Company continually evaluates the carrying value of goodwill and other intangible
assets. Any impairments would be recognized when the expected future operating cash flows derived from such intangible
assets is less than their carrying value.
Note 5 Intangible Assets
At the end of 1998 and 1997, the gross and net amounts of intangible assets were:
(Dollars in Millions) 1998 1997
Goodwill - gross $4,112 2,198
Less accumulated amortization 329 241
Goodwill - net $3,783 1,957
Patents & trademarks - gross $1,634 1,074
Less accumulated amortization 343 262
Patents and trademarks - net $1,291 812
Other intangibles - gross $2,296 613
Less accumulated amortization 161 121
Other intangibles - net $2,135 492
Total intangible assets - gross $8,042 3,885
Less accumulated amortization 833 624
Total intangible assets - net $7,209 3,261
The weighted average amortization periods for goodwill, patents and trademarks and other intangibles are 32 years,
21 years and 18 years, respectively.
Balance Sheet 91
Firms will occasionally have assets that do not fit into one of the previously discussed classifications. These assets, termed “other,” might include noncurrent receivables and noncurrent prepaids. Exhibit 3-10 summarizes types of other assets from a financial statement compilation in Accounting Trends & Techniques.
Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.3 Liabilities are usually classified as either current or long-term liabilities.
Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within a year or an operating cycle, whichever is longer. They include the following items. Exhibit 3-11 shows the current liabilities of Wendy’s International.
Payables These include short-term obligations created by the acquisition of goods and services, such as accounts payable (for materials or goods bought for use or resale), wages payable, and taxes payable. Payables may also be in the form of a written promissory note, notes payable.