Pizza Hut 2011 Annual Report Download - page 112

8
Employees
As of year end 2011, the Company and its Concepts employed approximately 466,000 persons, approximately 87 percent of whom
were part-time. The Company believes that it provides working conditions and compensation that compare favorably with those
of its principal competitors. The majority of employees are paid on an hourly basis. Some employees are subject to labor council
relationships that vary due to the diverse cultures in which the Company operates. The Company and its Concepts consider their
employee relations to be good.
(d) Financial Information about Geographic Areas
Financial information about our significant geographic areas (China Division, International Division and U.S.) is incorporated
herein by reference from Selected Financial Data in Part II, Item 6, pages 19 and 20; MD&A in Part II, Item 7, pages 21 through
47; and in the related Consolidated Financial Statements in Part II, Item 8, pages 48 through 93.
(e) Available Information
The Company makes available through the Investor Relations section of its internet website at www.yum.com its annual report
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after electronically filing such material
with the Securities and Exchange Commission ("SEC"). Our Corporate Governance Principles and our Code of Conduct are also
located within this section of the website. The reference to the Company’s website address does not constitute incorporation by
reference of the information contained on the website and should not be considered part of this document. These documents, as
well as our SEC filings, are available in print to any shareholder who requests a copy from our Investor Relations Department.
Item 1A. Risk Factors.
You should carefully review the risks described below as they identify important factors that could cause our actual results to
differ materially from our forward-looking statements and historical trends.
Food safety and food-borne illness concerns may have an adverse effect on our business.
Food-borne illnesses, such as E. coli, hepatitis A, trichinosis or salmonella, and food safety issues have occurred in the past, and
could occur in the future. Any report or publicity linking us or one of our Concept restaurants, including restaurants operated by
our franchisees, to instances of food-borne illness or other food safety issues, including food tampering or contamination, could
adversely affect our Concepts’ brands and reputations as well as our revenues and profits. If a customer of our Concepts or
franchisees becomes ill from food-borne illnesses, we and our franchisees may temporarily close some restaurants, which would
decrease our revenues. In addition, instances of food-borne illness, food tampering or food contamination solely involving our
suppliers or distributors or solely at restaurants of competitors could adversely affect our sales as a result of negative publicity
about the foodservice industry generally. Such instances of food-borne illness, food tampering and food contamination may not
be within our control. The occurrence of food-borne illnesses or food safety issues could also adversely affect the price and
availability of affected ingredients, which could result in disruptions in our supply chain and/or lower margins for us and our
franchisees.
Our China operations subject us to risks that could negatively affect our business.
A significant and growing portion of our restaurants are located in China. As a consequence, our financial results are increasingly
dependent on our results in China, and our business is increasingly exposed to risks there. These risks include changes in economic
conditions (including consumer spending, unemployment levels and wage and commodity inflation), income and non-income
based tax rates and laws and consumer preferences, as well as changes in the regulatory environment and increased competition. In
addition, our results of operations in China and the value of our Chinese assets are affected by fluctuations in currency exchange
rates, which may adversely affect reported earnings. There can be no assurance as to the future effect of any such changes on our
results of operations, financial condition or cash flows.
In addition, any significant or prolonged deterioration in U.S.-China relations could adversely affect our China business. Certain
risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law
regulates the scope of our foreign investments and business conducted within China. There are also uncertainties regarding the
interpretation and application of laws and regulations and the enforceability of intellectual property and contract rights in China. If
we were unable to enforce our intellectual property or contract rights in China, our business would be adversely impacted.
Form 10-K