Pizza Hut 2004 Annual Report Download - page 77

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The฀Board฀of฀Directors฀and฀Shareholders฀
YUM!฀Brands,฀Inc.:
We฀ have฀ audited฀ the฀ accompanying฀ consolidated฀ balance฀ sheets฀ of฀ YUM!฀ Brands,฀ Inc.฀ and฀ Subsidiaries฀ (“YUM”)฀ as฀ of฀
December฀25,฀2004฀and฀December฀27,฀2003,฀and฀the฀related฀consolidated฀statements฀of฀income,฀cash฀flows,฀and฀share-
holders’฀equity฀and฀comprehensive฀income฀for฀each฀of฀the฀years฀in฀the฀three-year฀period฀ended฀December฀25,฀2004.฀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฀the฀standards฀of฀the฀Public฀Company฀Accounting฀Oversight฀Board฀(United฀
States).฀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฀25,฀2004฀and฀December฀27,฀2003,฀and฀the฀results฀of฀its฀operations฀and฀its฀cash฀
flows฀for฀each฀of฀the฀years฀in฀the฀three-year฀period฀ended฀December฀25,฀2004,฀in฀conformity฀with฀U.S.฀generally฀accepted฀
accounting฀principles.
We฀also฀have฀audited,฀in฀accordance฀with฀the฀standards฀of฀the฀Public฀Company฀Accounting฀Oversight฀Board฀(United฀States),฀
the฀effectiveness฀of฀YUM’s฀internal฀control฀over฀financial฀reporting฀as฀of฀December฀25,฀2004,฀based฀on฀criteria฀established฀
in฀Internal฀Control฀—฀Integrated฀Framework฀issued฀by฀the฀Committee฀of฀Sponsoring฀Organizations฀of฀the฀Treadway฀Commission฀
(COSO),฀and฀our฀report฀dated฀February฀28,฀2005฀expressed฀an฀unqualified฀opinion฀on฀management’s฀assessment฀of,฀and฀the฀
effective฀operation฀of,฀internal฀control฀over฀financial฀reporting.
KPMG฀LLP฀
Louisville,฀Kentucky฀
February฀28,฀2005
Report฀of฀Independent฀Registered฀Public฀Accounting฀Firm
75
Yum!฀Brands,฀Inc.