GNC 2009 Annual Report Download - page 107

Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In addition to the foregoing, the Company is subject to numerous federal, state, local, and foreign environmental and health and safety laws
and regulations governing its operations, including the handling, transportation, and disposal of its non-hazardous and hazardous substances
and wastes, as well as emissions and discharges from our operations into the environment, including discharges to air, surface water, and
groundwater. Failure to comply with such laws and regulations could result in costs for remedial actions, penalties, or the imposition of other
liabilities. New laws, changes in existing laws or the interpretation thereof, or the development of new facts or changes in our processes could
also cause us to incur additional capital and operation expenditures to maintain compliance with environmental laws and regulations and
environmental permits. The Company also is subject to laws and regulations that impose liability and cleanup responsibility for releases of
hazardous substances into the environment without regard to fault or knowledge about the condition or action causing the liability. Under
certain of these laws and regulations, such liabilities can be imposed for cleanup of previously owned or operated properties, or for properties to
which substances or wastes the were sent in connection with current or former operations at our facilities. The presence of contamination from
such substances or wastes could also adversely affect the Company's ability to sell or lease its properties, or to use them as collateral for
financing. From time to time, the Company has incurred costs and obligations for correcting environmental and health and safety
noncompliance matters and for remediation at or relating to certain of our properties or properties at which its waste has been disposed. The
Company believes it has complied with, and is currently complying with, its environmental obligations pursuant to environmental and health and
safety laws and regulations and that any liabilities for noncompliance will not have a material adverse effect on its business or financial
performance. However, it is difficult to predict future liabilities and obligations, which could be material.
Contingencies
Due to the nature of the Company's business operations having a presence in multiple taxing jurisdictions, the Company periodically
receives inquiries and/or audits from various state and local taxing authorities. Any probable and reasonably estimatable liabilities that may
arise from these inquiries have been accrued and reflected in the accompanying financial statements. In conjunction with the Numico
Acquisition, certain other contingencies were indemnified by Numico. These indemnifications include certain legal costs associated with certain
identified cases as well as any tax costs, including audit settlements, for liabilities incurred prior to December 5, 2003.
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