Pizza Hut 2003 Annual Report Download - page 78

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76.
The Board of Directors
YUM! Brands, Inc.:
We have audited the accompanying consolidated balance sheets of YUM! Brands, Inc. and Subsidiaries (“YUM”) as of
December 27, 2003 and December 28, 2002, and the related consolidated statements of income, cash flows and share-
holders’ equity (deficit) and comprehensive income for each of the years in the three-year period ended December 27, 2003.
These consolidated financial statements are the responsibility of YUM’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of YUM as of December 27, 2003 and December 28, 2002, and the results of its operations and its cash
flows for each of the years in the three-year period ended December 27, 2003, in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Notes 2 and 12 to the consolidated financial statements, YUM adopted the provisions of the Financial
Accounting Standards Board’s Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible
Assets,” in 2002.
KPMG LLP
Louisville, Kentucky
February 10, 2004
Report of Independent Auditors