Wendy's 2008 Annual Report Download - page 21

currently available information, including defenses available to us and/or our subsidiaries, and our current
reserve levels, we do not believe that the ultimate outcome of the environmental matter discussed below or
other environmental matters in which we are involved will have a material adverse effect on our consolidated
financial position or results of operations. See “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations” below.
In 2001, a vacant property owned by Adams Packing Association, Inc. (“Adams”), an inactive subsidiary
of the Company, was listed by the United States Environmental Protection Agency on the Comprehensive
Environmental Response, Compensation and Liability Information System (“CERCLIS”) list of known or
suspected contaminated sites. The CERCLIS listing appears to have been based on an allegation that a former
tenant of Adams conducted drum recycling operations at the site from some time prior to 1971 until the late
1970s. The business operations of Adams were sold in December 1992. In February 2003, Adams and the
Florida Department of Environmental Protection (the “FDEP”) agreed to a consent order that provided for
development of a work plan for further investigation of the site and limited remediation of the identified
contamination. In May 2003, the FDEP approved the work plan submitted by Adams’ environmental
consultant and during 2004 the work under that plan was completed. Adams submitted its contamination
assessment report to the FDEP in March 2004. In August 2004, the FDEP agreed to a monitoring plan
consisting of two sampling events which occurred in January and June 2005 and the results were submitted to
the FDEP for its review. In November 2005, Adams received a letter from the FDEP identifying certain open
issues with respect to the property. The letter did not specify whether any further actions are required to be
taken by Adams. Adams sought clarification from the FDEP in order to attempt to resolve this matter. On
May 1, 2007, the FDEP sent a letter clarifying their prior correspondence and reiterated the open issues
identified in their November 2005 letter. In addition, the FDEP offered Adams the option of voluntarily
taking part in a recently adopted state program that could lessen site clean up standards, should such a clean
up be required after a mandatory further study and site assessment report. With our consultants and outside
counsel, we reviewed this option and sent our response and proposed work plan to FDEP on April 24, 2008
and have commenced additional testing as suggested by the FDEP and pursuant to the work plan submitted.
Once testing is completed Adams will provide an amended response to the FDEP. Nonetheless, based on
amounts spent prior to 2007 of approximately $1.7 million for all of these costs and after taking into
consideration various legal defenses available to the Company, including Adams, the Company expects that the
final resolution of this matter will not have a material effect on the Company’s financial position or results of
operations. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Legal and Environmental Matters.”
In addition to the environmental matter described above, we are involved in other litigation and claims
incidental to our current and prior businesses. We and our subsidiaries have reserved for all of our legal and
environmental matters aggregating $6.9 million as of December 28, 2008. Although the outcome of these
matters cannot be predicted with certainty and some of these matters may be disposed of unfavorably to us,
based on currently available information, including legal defenses available to us and/or our subsidiaries, and
given the aforementioned reserves and our insurance coverages, we do not believe that the outcome of these
legal and environmental matters will have a material adverse effect on our consolidated financial position or
results of operations.
Employees
As of December 28, 2008, Wendy’s/Arby’s and its subsidiaries had approximately 70,000 employees,
including 11,677 salaried employees and 58,613 hourly employees. We believe that our employee relations are
satisfactory.
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