Pizza Hut 2000 Annual Report Download - page 52

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Facility Actions Net Gain
Facility actions net gain consists of three components as described in Note 2:
• Refranchising gains (losses),
• Store closure costs (credits), and
• Impairment of long-lived assets 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 for 2000, 1999 and 1998 were as follows:
2000 1999 1998
(Excluding (Excluding
1997 4th 1997 4th
Qtr. Charge Qtr. Charge
Total Total Adjustments) Total Adjustments)
U.S.
Refranchising net gains(a) $(202) $(405) $(396) $(275) $(249)
Store closure costs (credits) 6515 (9) 27
Impairment charges for stores that will continue to be used in the business 36 6 23 23
Impairment charges for stores to be closed in the future 59955
Facility actions net gain (188) (385) (366) (256) (194)
International
Refranchising net (gains) losses(a) 2(17) (22) (4) (32)
Store closure costs (credits) 48 7 (18) 2
Impairment charges for stores that will continue to be used in the business 510 10 2 2
Impairment charges for stores to be closed in the future 13311
Facility actions net (gain) loss 12 4(2) (19) (27)
Worldwide
Refranchising net gains(a) (200) (422) (418) (279) (281)
Store closure costs (credits) 10 13 22 (27) 29
Impairment charges for stores that will continue to be used in the business(b) 816 16 25 25
Impairment charges for stores to be closed in the future(b) 612 12 6 6
Facility actions net gain $(176) $(381) $(368) $(275) $(221)
Facility actions net gain, after-tax $÷(98) $(226) $(216) $(162) $(129)
(a) Includes initial franchise fees in the U.S. of $17 million in 2000, $38 million in 1999 and $39 million in 1998, and in International of $3 million,
$7 million and $5 million in 2000, 1999 and 1998, respectively. See Note 6.
(b) Impairment charges for 2000 and 1999 were recorded against the following asset categories:
2000 1999
Property, plant and equipment $12 $25
Intangible assets:
Goodwill –1
Reacquired franchise rights 22
Total impairment $14 $28
50 TRICON GLOBAL RESTAURANTS, INC. AND SUBSIDIARIES