Wendy's 2012 Annual Report Download - page 21

Our international operations are subject to various factors of uncertainty and there is no assurance that
international operations will be profitable.
In addition to many of the risk factors described throughout this Item 1A, Wendy’s business outside of the
United States is subject to a number of additional factors, including international economic and political conditions,
risk of corruption and violations of the United States Foreign Corrupt Practices Act or similar laws of other countries,
differing cultures and consumer preferences, the inability to adapt to international customer preferences, inadequate
brand infrastructure within foreign countries to support our international activities, inability to obtain adequate
supplies meeting our quality standards and product specifications or interruptions in obtaining such supplies,
currency regulations and fluctuations, diverse government regulations and tax systems, uncertain or differing
interpretations of rights and obligations in connection with international franchise agreements and the collection of
royalties from international franchisees, the availability and cost of land, construction costs, other legal, financial or
regulatory impediments to the development and/or operation of new restaurants, and the availability of experienced
management, appropriate franchisees, and joint venture partners. Although we believe we have developed the support
structure required for international growth, there is no assurance that such growth will occur or that international
operations will be profitable.
To the extent we invest in international company-operated restaurants or joint ventures, we would also have the
risk of operating losses related to those restaurants, which would adversely affect our results of operations and financial
condition.
We rely on computer systems and information technology to run our business. Any material failure, interruption
or security breach of our computer systems or information technology may result in adverse publicity and
adversely affect the operation of our business and results of operations.
We are significantly dependent upon our computer systems and information technology to properly conduct
our business. A failure or interruption of computer systems or information technology could result in the loss of data,
business interruptions or delays in business operations. Also, despite our considerable efforts and technological
resources to secure our computer systems and information technology, security breaches, such as unauthorized access
and computer viruses, may occur resulting in system disruptions, shutdowns or unauthorized disclosure of
confidential information. A significant security breach of our computer systems or information technology could
require us to notify customers, employees or other groups, result in adverse publicity, loss of sales and profits, and
incur penalties or other costs that could adversely affect the operation of our business and results of operations.
Failure to comply with laws, regulations and third party contracts regarding the collection, maintenance and
processing of information may result in adverse publicity and adversely affect the operation of our business and
results of operations.
We collect, maintain and process certain information about customers and employees. Our use and protection
of this information is regulated by various laws and regulations, as well as by third party contracts. If our systems or
employees fail to comply with these laws, regulations or contract terms, it could require us to notify customers,
employees or other groups, result in adverse publicity, loss of sales and profits, increase fees payable to third parties,
and incur penalties or remediation and other costs that could adversely affect the operation of our business and results
of operations.
We may be required to recognize additional asset impairment and other asset-related charges.
We have significant amounts of long-lived assets, goodwill and intangible assets and have incurred impairment
charges in the past with respect to those assets. In accordance with applicable accounting standards, we test for
impairment generally annually, or more frequently, if there are indicators of impairment, such as:
• significant adverse changes in the business climate;
• current period operating or cash flow losses combined with a history of operating or cash flow losses or a
projection or forecast that demonstrates continuing losses associated with long-lived assets;
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