Pizza Hut 2010 Annual Report Download - page 72

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(3) The amounts shown in this column represent the grant date fair values of the stock options and SARs awarded in 2010, 2009 and 2008,
respectively. For a discussion of the assumptions and methodologies used to value the awards reported in Column (d) and Column (e),
please see the discussion of stock awards and option awards contained in Part II, Item 8, ‘‘Financial Statements and Supplementary
Data’’ of the 2010 Annual Report in Notes to Consolidated Financial Statements at Note 15, ‘‘Share-based and Deferred Compensation
Plans.’’
(4) Except as provided below and in footnote (2) above, amounts in column (f) reflect the annual incentive awards earned for the 2010,
2009 and 2008 fiscal year performance periods, which were awarded by our Management Planning and Development Committee in
January 2011, January 2010 and January 2009, respectively, under the YUM Leaders’ Bonus Program, which is described further
beginning on page 39 under the heading ‘‘Performance-Based Annual Incentive Compensation’’. Under the Company’s EID Program
(which is described in more detail beginning on page 63) for 2008, executives were permitted to defer their annual incentive award and
invest that deferral into stock units, RSUs or other investment alternatives offered under the program. Under the EID Program, an
executive who elected to defer his/her annual incentive award into RSUs received additional RSUs equal to 33% of the RSUs acquired
with the deferral of the annual incentive award (‘‘matching contribution’’). Pursuant to SEC rules, annual incentives deferred into RSUs
under the EID Program and subject to a risk of forfeiture are reported in column (d). If the deferral or a portion of the deferral is not
subject to a risk of forfeiture, it is reported in column (f).
For 2008, Messrs. Novak, Su and Bergren deferred 100% of their annual incentives into RSUs, and since each had attained age 55 with
10 years of service, as explained in footnote (2), they were fully vested in the deferral of their 2008 annual incentive at the time of their
deferral and their annual incentives are reported in column (f).
For 2008, Mr. Carucci elected to defer 56% of his annual incentive into RSUs subject to a risk of forfeiture.
For 2008, Mr. Allan deferred 100% of his annual incentive into RSUs resulting in nothing to report in column (f).
Below is the 2008 annual incentive awards for each NEO as approved by our Management Planning and Development Committee. Also
reported below is the amount of 2008 annual incentive elected to be deferred by the executive and the amount of matching contribution
in the case of deferrals of the 2008 annual incentive awards into RSUs.
Amount of 2008
Annual Incentive
Elected to
be Deferred
2008 Annual into the
Incentive Matching Matching
Name Award Stock Fund Contribution
Novak ............................................. 4,057,200 4,057,200 1,352,400
Carucci ............................................ 1,131,773 633,793 211, 264
Su ............................................... 1,609,598 1,609,598 536,533
Allan ............................................. 1,965,206 1,965,206 655,069
Proxy Statement
Bergren ............................................ 973,896 973,896 324,632
(5) Amounts in column (g) reflect the aggregate increase in actuarial present value of age 62 accrued benefits under all actuarial pension
plans during the 2010 fiscal year (using interest rate and mortality assumptions consistent with those used in the Company’s financial
statements). See the Pension Benefits Table at page 59 for a detailed discussion of the Company’s pension benefits. The Company does
not pay ‘‘above market’’ interest on non-qualified deferred compensation; therefore, this column reflects pension accruals only. For
Mr. Bergren in 2009, the actuarial present value of his accrued benefit decreased $15,765; however, under SEC rules, the change is to be
reflected as a ‘‘0’’.
(6) Amounts in this column are explained in the All Other Compensation Table and footnotes to that table, which follows.
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