Pizza Hut 2006 Annual Report Download - page 75

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80 YUM! BRANDS, INC.
under which PepsiCo remains liable. As of December 30, 2006,
PepsiCo remains liable for approximately $23 million on a nominal
basis related to these contingencies. This obligation ends at the
time PepsiCo is released, terminated or replaced by a qualified
letter of credit. We have not been required to make any payments
under this indemnity.
Under the Separation Agreements, PepsiCo maintains full
control and absolute discretion with regard to any combined or
consolidated tax filings for periods through October 6, 1997.
PepsiCo also maintains full control and absolute discretion
regarding any common tax audit issues. Although PepsiCo has
contractually agreed to, in good faith, use its best efforts to settle
all joint interests in any common audit issue on a basis consistent
with prior practice, there can be no assurance that determinations
made by PepsiCo would be the same as we would reach, acting
on our own behalf. Through December 30, 2006, there have not
been any determinations made by PepsiCo where we would have
reached a different determination.
23.
Selected Quarterly Financial Data (Unaudited)
First Second Third Fourth
2006 Quarter Quarter Quarter Quarter Total
Revenues:
Company sales $ 1,819 $ 1,912 $ 1,989 $ 2,645 $ 8,365
Franchise and license fees 266 270 289 371 1,196
Total revenues 2,085 2,182 2,278 3,016 9,561
Restaurant profit 284 301 321 365 1,271
Operating profit 282 307 344 329 1,262
Net income 170 192 230 232 824
Diluted earnings per common share 0.59 0.68 0.83 0.83 2.92
Dividends declared per common share 0.115 0.15 — 0.60 0.865
First Second Third Fourth
2005 Quarter Quarter Quarter Quarter Total
Revenues:
Company sales $ 1,810 $ 1,902 $ 1,975 $ 2,538 $ 8,225
Franchise and license fees 244 251 268 361 1,124
Total revenues 2,054 2,153 2,243 2,899 9,349
Restaurant profit 259 266 294 336 1,155
Operating profit 251 261 308 333 1,153
Net income 153 178 205 226 762
Diluted earnings per common share 0.50 0.59 0.69 0.77 2.55
Dividends declared per common share 0.10 0.115 — 0.23 0.445
The first three quarters of 2005 were restated pursuant to the adoption of SFAS 123R. See Note 2.