Pizza Hut 2009 Annual Report Download - page 74

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Vesting
A participant receives a year of vesting service for each year of employment with the Company. A
participant is 0% vested until he has been credited with at least 5 years of vesting service. Upon attaining
5 years of vesting service, a participant becomes 100% vested. All the NEOs are vested.
Normal Retirement Eligibility
A participant is eligible for Normal Retirement following the later of age 65 or 5 years of vesting
service.
Early Retirement Eligibility and Reductions
A participant is eligible for Early Retirement upon reaching age 55 with 10 years of vesting service. A
participant who has met the requirements for Early Retirement and who elects to begin receiving payments
from the plan prior to age 62 will receive a reduction of 1⁄12 of 4% for each month benefits begin before age
62. Benefits are unreduced at age 62.
The table below shows when each of the NEOs will be eligible or became eligible for Early
Retirement and the estimated lump sum value of the benefit each participant would receive from the
YUM plans (both qualified and non-qualified) if he retired from the Company at that time and received a
lump sum payment (except however, in the case of Messrs. Novak and Su, who are already Early
Retirement eligible, the estimated lump sum is calculated as if they retired on December 31, 2009).
Earliest Estimated Lump Sum Estimated Lump Sum Total
Retirement from the from the Estimated
Name Date Qualified Plan(1) Non-Qualified Plan(2) Lump Sum
David C. Novak November 1, 2007 $1,057,601 $22,892,898 $23,950,499
Rick Carucci July 1, 2012 $ 975,292 $ 5,636,523 $ 6,611,815
Sam Su May 1, 2007 $ — $ 8,103,148 $ 8,103,148
Graham Allan May 1, 2010 $ 447,099 $ 3,261,280 $ 3,708,379
Greg Creed August 1, 2012 $ 143,277 $ — $ 143,277
Proxy Statement
(1) The YUM! Brands Retirement Plan
(2) Mr. Su’s benefit is paid solely from the YUM! Brands International Retirement Plan. All other
non-qualified benefits are paid from the YUM! Brands Inc. Pension Equalization Plan.
The estimated lump sum values in the table above are calculated assuming no increase in the
participant’s Final Average Earnings. The lump sums are estimated using the mortality table and interest
assumption as used for purposes of financial accounting. Actual lump sums may be higher or lower
depending on the mortality table and interest rate in effect at the time of distribution and the participant’s
Final Average Earnings at his date of retirement.
Termination of Employment Prior to Retirement
If a participant terminates employment, either voluntarily or involuntarily, prior to meeting eligibility
for Early or Normal Retirement, benefits will be actuarially reduced from age 65 to his early
commencement date using the mortality rates in the YUM! Brands Retirement Plan and an interest rate
equal to 7% (e.g., this results in a 62.97% reduction at age 55). In addition, the participant may NOT elect
to receive his benefit in the form of a lump sum.
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