Pizza Hut 2009 Annual Report Download - page 174

83
Intangible assets, net for the years ended 2009 and 2008 are as follows:
2009 2008
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Definite-lived intangible assets
Franchise contract rights $ 153 $ (78
)
$ 147 $ (71)
Trademarks/brands 225 (48
)
225 (39)
Lease tenancy rights 66 (24
)
31 (7)
Favorable operating leases 27 (8
)
9(8)
Reacquired franchise rights 121 (8
)
14 (1
)
Other 7 (2
)
6(2)
$ 599 $ (168
)
$ 432 $ (128)
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 $25 million in 2009, $18 million in 2008 and $19 million
in 2007. Amortization expense for definite-lived intangible assets will approximate $24 million annually in 2010 through
2012, $23 million and $21 million in 2013 and 2014, respectively.
Form 10-K