Pizza Hut 2008 Annual Report Download - page 90

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columns (f) and (j) of the Grants of Plan-Based Awards table on page 63 and are discussed in further detail
at footnotes 2 and 4 of the Summary Compensation Table beginning on pages 59 and 60.
Distributions. When participants elect to defer amounts into the EID Program, they also select when
the amounts ultimately will be distributed to them. Distributions may either be made in a specific year—
whether or not employment has then ended—or at a time that begins at or after the executive’s retirement
or separation or termination of employment.
Distributions can be made in a lump sum or up to 20 annual installments. Initial deferrals are subject
to a minimum two year deferral. In general, with respect to amounts deferred after 2005 or not fully vested
as of January 1, 2005, participants may change their distribution schedule, provided the new elections
satisfy the requirements of Section 409A of the Internal Revenue Code. In general, Section 409A requires
that:
• Distribution schedules cannot be accelerated (other than for a hardship)
• To delay a previously scheduled distribution,
• A participant must make an election at least one year before the distribution otherwise would
be made, and
• The new distribution cannot begin earlier than five years after it would have begun without the
election to re-defer.
With respect to amounts deferred prior to 2005, to delay a distribution the new distribution cannot
begin until two years after it would have begun without the election to re-defer.
Investments in the YUM! Stock Fund and YUM! Discount Stock Fund are only distributed in shares
of Company stock.
Proxy Statement
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