Pizza Hut 2008 Annual Report Download - page 205

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As of December 27, 2008, $62 million was included in Other assets related to the fair value of the Company’s interest rate
swaps. The fair value of these swaps as of December 29, 2007 was a net asset of approximately $15 million, of which
$16 million and $1 million were included in Other assets and Other liabilities and deferred credits, respectively. The
portion of this fair value which has not yet been recognized as an addition to interest expense at December 27, 2008 and
December 29, 2007 has been included as an addition of $59 million and an addition of $17 million, respectively, to long-
term debt.
Note 15 – Pension and Postretirement Medical Benefits
The following disclosures reflect our adoption of the provisions of SFAS 158 as discussed in Note 2.
Pension Benefits. We sponsor noncontributory defined benefit pension plans covering certain full-time salaried and
hourly U.S. employees. The most significant of these plans, the YUM Retirement Plan (the “Plan”), is funded while
benefits from the other U.S. plans are paid by the Company as incurred. During 2001, the plans covering our U.S.
salaried employees were amended such that any salaried employee hired or rehired by YUM after September 30, 2001 is
not eligible to participate in those plans. Benefits are based on years of service and earnings or stated amounts for each
year of service. We also sponsor various defined benefit pension plans covering certain of our non-U.S. employees, the
most significant of which are in the U.K. (including a plan for Pizza Hut U.K. employees that was sponsored by our
unconsolidated affiliate prior to our acquisition of the remaining fifty percent interest in the unconsolidated affiliate in
2006). Our plans in the U.K. have previously been amended such that new employees are not eligible to participate in
these plans.
Form 10-K