Pizza Hut 2002 Annual Report Download - page 58

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payroll and employee benefits and occupancy and other oper-
ating expenses.
2002 2001 2000
Stores held for sale at December 28, 2002:
Sales $ 228 $ 228 $ 221
Restaurant profit 31 26 28
Stores disposed of in 2002, 2001 and 2000:
Sales $ 147 $ 436 $ 948
Restaurant profit 20 43 115
Restaurant margin includes a benefit from the suspension of
depreciation and amortization of approximately $6 million, $1 mil-
lion and $2 million in 2002, 2001 and 2000, respectively.
Unusual Items (Income) Expense
2002 2001 2000
U.S. $3 $15 $ 29
International (1)
—
8
Unallocated (29) (18) 167
Worldwide $ (27) $ (3) $ 204
Unusual items income in 2002 primarily included: (a) recoveries
of approximately $39 million related to the AmeriServe Food
Distribution Inc. (“AmeriServe”) bankruptcy reorganization process;
less (b) integration costs of approximately $6 million related to the
YGR acquisition; and (c) costs to defend certain wage and hour lit-
igation. See Note 25 for discussions of the AmeriServe bankruptcy
reorganization process.
Unusual items income in 2001 primarily included: (a) recov-
eries of approximately $21 million related to the AmeriServe
bankruptcy reorganization process; less (b) aggregate settlement
costs of $15 million associated with certain litigation; and (c)
expenses, primarily severance, related to decisions to streamline
certain support functions. The reserves established related to deci-
sions to streamline certain support functions were utilized in 2002.
Unusual items expense in 2000 included: (a) $170 million of
expenses related to the AmeriServe bankruptcy reorganization
process; (b) an increase in the estimated costs of settlement of cer-
tain wage and hour litigation along with the associated defense
costs incurred in 2000; (c) costs associated with the formation of
new unconsolidated affiliates; less (d) the reversal of excess
provisions arising from the resolution of a dispute associated with
the disposition of our non-core businesses, which is discussed in
Note 24.
SUPPLEMENTAL CASH FLOW DATA
2002 2001 2000
Cash Paid for:
Interest $ 153 $ 164 $ 194
Income taxes 200 264 252
Significant Non-Cash
Investing and Financing Activities:
Assumption of debt and capital leases
related to the acquisition of YGR $ 227 $
—
$
—
Capital lease obligations incurred
to acquire assets 23 18 4
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 a franchisee acquisition
—
36 6
Fair market value of assets received
in connection with a
non-cash acquisition
—
9
—
FRANCHISE AND LICENSE FEES
2002 2001 2000
Initial fees, including renewal fees $33 $32 $48
Initial franchise fees included
in refranchising gains (6) (7) (20)
27 25 28
Continuing fees 839 790 760
$866 $ 815 $ 788
OTHER (INCOME) EXPENSE
2002 2001 2000
Equity income from investments
in unconsolidated affiliates $ (29) $ (26) $ (25)
Foreign exchange net (gain) loss (1) 3
—
$ (30) $ (23) $ (25)
NOTE
10
NOTE
9
NOTE
8
56.