Pizza Hut 2013 Annual Report Download - page 132

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YUM! BRANDS, INC.-2013 Form10-K36
Form 10-K
PART II
ITEM 8Financial Statements andSupplementaryData
The combined Operating Profits of China, YRI and India constitute
approximately 70% of our segment Operating Profit in 2013. In addition,
the Company’s foreign currency net asset exposure (defined as foreign
currency assets less foreign currency liabilities) totaled approximately
$4.2billion as of December 28, 2013. Operating in international markets
exposes the Company to movements in foreign currency exchange rates.
The Company’s primary exposures result from our operations in Asia-Pacific,
Europe and the Americas. For the fiscal year ended December 28, 2013
Operating Profit would have decreased approximately $155 million if all
foreign currencies had uniformly weakened 10% relative to the U.S. dollar.
This estimated reduction assumes no changes in sales volumes or local
currency sales or input prices.
Commodity Price Risk
We are subject to volatility in food costs as a result of market risk associated with commodity prices. Our ability to recover increased costs through
higher pricing is, at times, limited by the competitive environment in which we operate. We manage our exposure to this risk primarily through pricing
agreements with our vendors.
ITEM 8 Financial Statements
andSupplementaryData
Index to Financial Information
Page
Reference
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm 37
Consolidated Statements of Income for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 38
Consolidated Statements of Comprehensive Income for the fiscal years ended December 28, 2013, December 29, 2012 and
December 31, 2011 39
Consolidated Statements of Cash Flows for the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011 40
Consolidated Balance Sheets as of December 28, 2013 and December 29, 2012 41
Consolidated Statements of Shareholders’ Equity for the fiscal years ended December 28, 2013, December 29, 2012 and
December31, 2011 42
Notes to Consolidated Financial Statements 43
Management’s Responsibility for Financial Statements 71
Financial Statement Schedules
No schedules are required because either the required information is not present or not present in amounts sufficient to require submission of the
schedule, or because the information required is included in the above-listed financial statements or notes thereto.