Wendy's 2011 Annual Report Download - page 14

Environmental and Other Matters
The Wendy’s Company’s and Wendy’s Restaurants’ past and present operations are governed by federal, state
and local environmental laws and regulations concerning the discharge, storage, handling and disposal of hazardous or
toxic substances. These laws and regulations provide for significant fines, penalties and liabilities, sometimes without
regard to whether the owner or operator of the property knew of, or was responsible for, the release or presence of the
hazardous or toxic substances. In addition, third parties may make claims against owners or operators of properties for
personal injuries and property damage associated with releases of hazardous or toxic substances. We cannot predict
what environmental legislation or regulations will be enacted in the future or how existing or future laws or
regulations will be administered or interpreted. We similarly cannot predict the amount of future expenditures that
may be required to comply with any environmental laws or regulations or to satisfy any claims relating to
environmental laws or regulations. We believe that our operations comply substantially with all applicable
environmental laws and regulations. Accordingly, the environmental matters in which we are involved generally relate
either to properties that our subsidiaries own, but on which they no longer have any operations, or properties that we
or our subsidiaries have sold to third parties, but for which we or our subsidiaries remain liable or contingently liable
for any related environmental costs. Our company-owned Wendy’s restaurants have not been the subject of any
material environmental matters. Based on 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
matters in which we are involved will have a material adverse effect on our consolidated financial position or results of
operations.
The Wendy’s Company and Wendy’s Restaurants are involved in litigation and claims incidental to our current
and prior businesses. We provide reserves for such litigation and claims when payment is probable and reasonably
estimable. The Companies believe they have adequate reserves for continuing operations for all of their legal and
environmental matters. We cannot estimate the aggregate possible range of loss due to most proceedings being in
preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur, and significant
factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve
multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently
difficult. Based on our currently available information, including legal defenses available to us, and given the
aforementioned reserves and our insurance coverage, we do not believe that the outcome of these legal and
environmental matters will have a material effect on our consolidated financial position or results of operations.
Employees
As of January 1, 2012, the Companies and their subsidiaries had approximately 42,800 employees, including
approximately 2,800 salaried employees and approximately 40,000 hourly employees. We believe that our employee
relations are satisfactory.
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