Pizza Hut 2005 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 of the 2005 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

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฀31,฀2005฀and฀December฀25,฀2004,฀and฀the฀related฀consolidated฀statements฀of฀income,฀cash฀
fl฀ows฀and฀shareholders’฀equity฀and฀comprehensive฀income฀for฀each฀of฀the฀years฀in฀the฀three-year฀period฀ended฀
December฀31,฀2005.฀These฀consolidated฀fi฀nancial฀statements฀are฀the฀responsibility฀of฀YUM’s฀management.฀Our฀
responsibility฀is฀to฀express฀an฀opinion฀on฀these฀consolidated฀fi฀nancial฀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฀assur-
ance฀about฀whether฀the฀fi฀nancial฀statements฀are฀free฀of฀material฀misstatement.฀An฀audit฀includes฀examining,฀
on฀a฀test฀basis,฀evidence฀supporting฀the฀amounts฀and฀disclosures฀in฀the฀fi฀nancial฀statements.฀An฀audit฀also฀
includes฀assessing฀the฀accounting฀principles฀used฀and฀signifi฀cant฀estimates฀made฀by฀management,฀as฀well฀as฀
evaluating฀the฀overall฀fi฀nancial฀statement฀presentation.฀We฀believe฀that฀our฀audits฀provide฀a฀reasonable฀basis฀
for฀our฀opinion.
In฀our฀opinion,฀the฀consolidated฀fi฀nancial฀statements฀referred฀to฀above฀present฀fairly,฀in฀all฀material฀
respects,฀the฀fi฀nancial฀position฀of฀YUM฀as฀of฀December฀31,฀2005฀and฀December฀25,฀2004,฀and฀the฀results฀of฀
its฀operations฀and฀its฀cash฀fl฀ows฀for฀each฀of฀the฀years฀in฀the฀three-year฀period฀ended฀December฀31,฀2005,฀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฀fi฀nancial฀reporting฀as฀of฀December฀31,฀
2005,฀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฀March฀2,฀2006฀
expressed฀an฀unqualifi฀ed฀opinion฀on฀management’s฀assessment฀of,฀and฀the฀effective฀operation฀of,฀internal฀
control฀over฀fi฀nancial฀reporting.
As฀discussed฀in฀Notes฀2฀and฀15฀to฀the฀consolidated฀fi฀nancial฀statements,฀YUM฀adopted฀the฀provisions฀of฀
the฀Financial฀Accounting฀Standards฀Board’s฀Statement฀of฀Financial฀Accounting฀Standards฀No.฀123R฀(Revised฀
2004),฀“Share-Based฀Payment,”฀and฀changed฀its฀method฀for฀accounting฀for฀share-based฀payments.
KPMG฀LLP
Louisville,฀Kentucky
March฀2,฀2006
Report฀of฀Independent฀Registered฀
Public฀Accounting฀Firm
50.฀ ฀ ฀ |฀ ฀ ฀ Yum!฀Brands,฀Inc.