Pizza Hut 1999 Annual Report Download - page 51

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49
Facility Actions Net (Gain) Loss. Facility actions net (gain) loss consists of three components:
• Gains and losses on sales of our restaurants to new and existing franchisees,
• Costs of closing our underperforming stores and
• Impairment charges both for restaurants we intend to continue to use in the business and, since April 23, 1998,
restaurants we intend to close beyond the quarter in which the closure decision is made.
The components of facility actions net (gain) loss for 1999, 1998 and 1997 were as follows:
1999 1998 1997
(Excluding (Excluding
1997 4th Qtr. 1997 4th Qtr. (Excluding
Charge Charge 1997 4th Qtr.
Total Adjustments) Total Adjustments) Total Charge)
U.S.
Refranchising net gains(a) $ (405) $ (396) $ (275) $ (249) $ (67) $ (144)
Store closure net costs 5 15 (9) 27 154 13
Impairment charges for stores
that will continue to be used in the business 6623 23 59 47
Impairment charges for stores to be closed in the future 9955——
Facility actions net (gain) loss (385) (366) (256) (194) 146 (84)
International
Refranchising net gains(a) (17) (22) (4) (32) (45) (104)
Store closure net costs 87(18) 2 94 22
Impairment charges for stores
that will continue to be used in the business 10 10 22523
Impairment charges for stores to be closed in the future 3311——
Facility actions net (gain) loss 4 (2) (19) (27) 101 (79)
Worldwide
Refranchising net gains(a) (422) (418) (279) (281) (112) (248)
Store closure net costs 13 22 (27) 29 248 35
Impairment charges for stores
that will continue to be used in the business(b) 16 16 25 25 111 50
Impairment charges for stores to be closed in the future(b) 12 12 66——
Facility actions net (gain) loss $ (381) $ (368) $ (275) $ (221) $ 247 $ (163)
Facility actions net (gain) loss, after-tax $ (226) $ (216) $ (162) $ (129) $ 163 $ (137)
(a) Includes initial franchise fees in the U.S. of $38 million in 1999 and $39 million in both 1998 and 1997, and in International of $7 million, $5 million and $2 million in 1999, 1998 and
1997, respectively. See Note 6.
(b) Impairment charges for 1999 and 1998 were recorded against the following asset categories:
1999 1998
Property, plant and equipment $25 $25
Intangible assets:
Goodwill 14
Reacquired franchise rights 22
Total impairment $28 $31