Pizza Hut 2008 Annual Report Download - page 196

74
Note 7 – Franchise and License Fees
2008 2007 2006
Initial fees, including renewal fees $ 61 $ 4
9
$ 5
7
Initial franchise fees included in refranchising gains (2
0
) (1
0
) (1
7
)
41 3
9
4
0
Continuing fees 1,395 1,27
7
1,15
6
$ 1,43
6
$ 1,31
6
$ 1,19
6
Note 8 – Other (Income) Expense
2008 2007 2006
Equity income from investments in unconsolidated
affiliates $ (41) $ (51) $ (51)
Minority Interest(a) 11
—
—
Gain upon sale of investment in unconsolidated
affiliate(b)(c) (10
0
) (
6
) (
2
)
Contract termination charge(d)
—
—
8
Wrench litigation income(e)
—
(11)
—
Foreign exchange net (gain) loss and other (1
6
) (3) (
7
)
Other (income) expense $ (14
6
) $ (71) $ (5
2
)
(a) On January 1, 2008, the Company began consolidating an entity in China in which we have a majority
ownership interest. See Note 5.
(b) Fiscal year 2008 reflects the gain recognized on the sale of our interest in our unconsolidated affiliate in Japan.
See Note 5.
(c) Fiscal years 2007 and 2006 reflect recognition of income associated with receipt of payments for a note
receivable arising from the 2005 sale of our fifty percent interest in the entity that operated almost all KFCs and
Pizza Huts in Poland and the Czech Republic to our then partner in the entity.
(d) Reflects an $8 million charge associated with the termination of a beverage agreement in the U.S. segment.
(e) Fiscal year 2007 reflects financial recoveries from settlements with insurance carriers related to a lawsuit settled
by Taco Bell Corporation in 2004.
Form 10-K