Pizza Hut 2001 Annual Report Download - page 51

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49
general liability and automobile liability insurance programs. The
change in methodology resulted in a one-time increase in our
1999 operating profit of over $8 million.
At the end of 1998, we changed our method of determin-
ing the pension discount rate to better reflect the assumed
investment strategies we would most likely use to invest any
short-term cash surpluses. The pension discount methodology
change resulted in a one-time increase in our 1999 operating
profit of approximately $6 million.
In 1999, our vacation policies were conformed to a calen-
dar-year based, earn-as-you-go, use-or-lose policy. The change
provided a one-time favorable increase in our 1999 operating
profit of approximately $7 million. Other accounting policy stan-
dardization changes by our three U.S. Concepts provided a
one-time favorable increase in our 1999 operating profit of
approximately $1 million.
SUPPLEMENTAL CASH FLOW DATA
2001 2000 1999
Cash Paid for:
Interest $ 164 $ 194 $ 212
Income taxes 264 252 340
Significant Non-Cash Investing
and Financing Activities:
Issuance of promissory note to
acquire an unconsolidated affiliate $— $25 $—
Contribution of non-cash net assets
to an unconsolidated affiliate 21 67 —
Assumption of liabilities in connection
with an acquisition 36 61
Fair market value of assets
received in connection with
a non-cash acquisition 9——
Capital lease obligations incurred
to acquire assets 18 44
FRANCHISE AND LICENSE FEES
2001 2000 1999
Initial fees, including renewal fees $32 $48 $71
Initial franchise fees included in
refranchising gains (7) (20) (45)
25 28 26
Continuing fees 790 760 697
$ 815 $ 788 $ 723
7
NOTE
6
NOTE
OTHER (INCOME) EXPENSE
2001 2000 1999
Equity income from investments
in unconsolidated affiliates $ (26) $ (25) $ (19)
Foreign exchange net loss 3—3
$ (23) $ (25) $ (16)
PROPERTY, PLANT AND
EQUIPMENT, NET
2001 2000
Land $ 579 $ 543
Buildings and improvements 2,608 2,469
Capital leases, primarily buildings 91 82
Machinery and equipment 1,647 1,522
4,925 4,616
Accumulated depreciation and amortization (2,121) (2,056)
Impairment allowances (27) (20)
$ 2,777 $ 2,540
Depreciation and amortization expense was $320 million,
$319 million and $345 million in 2001, 2000 and 1999,
respectively.
INTANGIBLE ASSETS, NET
2001 2000
Reacquired franchise rights $ 294 $ 264
Trademarks and other identifiable intangibles 105 102
Goodwill 59 53
$ 458 $ 419
In determining the above amounts, we have subtracted accu-
mulated amortization of $410 million for 2001 and $415 million
for 2000. Amortization expense was $37 million, $38 million
and $44 million in 2001, 2000 and 1999, respectively.
ACCOUNTS PAYABLE AND OTHER
CURRENT LIABILITIES
2001 2000
Accounts payable $ 326 $ 326
Accrued compensation and benefits 210 209
Other current liabilities 459 443
$ 995 $ 978
11
NOTE
10
NOTE
9
NOTE
8
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