Pizza Hut 2008 Annual Report Download - page 131

9
Environmental Matters
The Company is not aware of any federal, state or local environmental laws or regulations that will materially affect its
earnings or competitive position, or result in material capital expenditures. However, the Company cannot predict the
effect on its operations of possible future environmental legislation or regulations. During 2008, there were no material
capital expenditures for environmental control facilities and no such material expenditures are anticipated.
Government Regulation
U.S. Division. The Company and its U.S. Division are subject to various federal, state and local laws affecting its
business. Each of the Company’s restaurants in the U.S. must comply with licensing and regulation by a number of
governmental authorities, which include health, sanitation, safety and fire agencies in the state or municipality in which
the restaurant is located. In addition, the Company must comply with various state laws that regulate the
franchisor/franchisee relationship. To date, the Company has not been significantly affected by any difficulty, delay or
failure to obtain required licenses or approvals.
The Company is also subject to federal and state laws governing such matters as employment and pay practices, overtime,
tip credits and working conditions. The bulk of the Company’s employees are paid on an hourly basis at rates related to
the federal and state minimum wages.
The Company is also subject to federal and state child labor laws which, among other things, prohibit the use of certain
“hazardous equipment” by employees younger than 18 years of age. The Company has not been materially adversely
affected by such laws to date.
The Company continues to monitor its facilities for compliance with the Americans with Disabilities Act (“ADA”) in
order to conform to its requirements. Under the ADA, the Company could be required to expend funds to modify its
restaurants to better provide service to, or make reasonable accommodation for the employment of, disabled persons.
International and China Divisions. The Company’s restaurants outside the U.S. are subject to national and local laws and
regulations which are similar to those affecting the Company’s U.S. restaurants, including laws and regulations
concerning labor, health, sanitation and safety. The restaurants outside the U.S. are also subject to tariffs and regulations
on imported commodities and equipment and laws regulating foreign investment. International compliance with
environmental requirements has not had a material adverse effect on the Company’s results of operations, capital
expenditures or competitive position.
Employees
As of year end 2008, the Company employed approximately 336,000 persons, approximately 85 percent of whom were
part-time. Approximately 26 percent of the Company’s employees are employed in the U.S. The Company believes that
it provides working conditions and compensation that compare favorably with those of its principal competitors. Most
Company employees are paid on an hourly basis. Some of the Company’s non-U.S. employees are subject to labor
council relationships that vary due to the diverse cultures in which the Company operates. The Company considers its
employee relations to be good.
(d) Financial Information about Geographic Areas
Financial information about our significant geographic areas (U.S., International Division and China Division) is
incorporated herein by reference from Selected Financial Data in Part II, Item 6, page 22; Management’s Discussion and
Analysis of Financial Condition and Results of Operations (“MD&A”) in Part II, Item 7, pages 24 through 52; and in the
related Consolidated Financial Statements and footnotes in Part II, Item 8, pages 53 through 106.
Form 10-K