Pizza Hut 2008 Annual Report Download - page 198
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76
Intangible assets, net for the years ended 2008 and 2007 are as follows:
2008 2007
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Definite-lived intangible assets
Franchise contract rights $ 147 $ (70) $ 157 $ (73)
Trademarks/brands 221 (35) 221 (26)
Lease tenancy rights 31 (7) 27 (6)
Favorable/unfavorable operating
leases 12 (9) 15 (12)
Reacquired franchise rights 11 (1) 17 (1)
Other 6 (2) 6 (2)
$ 428 $ (124) $ 443 $ (120)
Indefinite-lived intangible assets
Trademarks/brands $ 31 $ 31
We have recorded intangible assets through past acquisitions representing the value of our KFC, LJS and A&W
trademarks/brands. The value of a trademark/brand is determined based upon the value derived from the royalty we
avoid, in the case of Company stores, or receive, in the case of franchise and licensee stores, for the use of the
trademark/brand. We have determined that our KFC trademark/brand intangible asset has an indefinite life and therefore
is not amortized. We have determined that our LJS and A&W trademarks/brands are subject to amortization and are
being amortized over their expected useful lives which are currently thirty years.
Amortization expense for all definite-lived intangible assets was $18 million in 2008, $19 million in 2007 and $15 million
in 2006. Amortization expense for definite-lived intangible assets will approximate $17 million annually in 2009 through
2012 and $14 million in 2013.
Note 11 – Accounts Payable and Other Current Liabilities
2008 2007
Accounts payable $ 508 $ 519
Capital expenditure liability 130 120
Accrued compensation and benefits 376 372
Dividends payable 87 75
Proceeds from sale of interest in Japan unconsolidated affiliate (See Note 5)
—
128
Other current liabilities 372 436
$ 1,473 $ 1,650
Form 10-K