Pizza Hut 2014 Annual Report Download - page 77

(3) YUM! Brands International Retirement Plan Benefits are payable under the same terms and conditions
as the Retirement Plan without regard to Internal Revenue
The YIRP is an unfunded, non-qualified defined benefit plan Service limitations on amounts of includible compensation
that covers certain international employees who are and maximum benefits.
designated by the Company as third country nationals.
Mr. Su is eligible for benefits under this plan. The YIRP (4) Present Value of Accumulated Benefits
provides a retirement benefit similar to the Retirement Plan
except that part C of the formula is calculated as the sum of: For all plans, the Present Value of Accumulated Benefits
(determined as of December 31, 2014) is calculated
a) Company financed State benefits or Social assuming that each participant is eligible to receive an
Security benefits if paid periodically unreduced benefit payable in the form of a single lump sum
b) The actuarial equivalent of all State paid or at age 62. This is consistent with the methodologies used in
mandated lump sum benefits financed by the financial accounting calculations. In addition, the economic
Company assumptions for the lump sum interest rate, post retirement
mortality, and discount rate are also consistent with those
c) Any other Company financed benefits that are used in financial accounting calculations at each
attributable to periods of pensionable service and measurement date.
that are derived from a plan maintained or
contributed to by the Company or one or more of
the group of corporations that is controlled by the
Company.
Nonqualified Deferred Compensation
Amounts reflected in the Nonqualified Deferred All of the phantom investment alternatives offered under the
Compensation table below are provided for under the EID Program are designed to match the performance of
Company’s Executive Income Deferral (‘‘EID’’) Program, actual investments; that is, they provide market rate returns
Leadership Retirement Plan (‘‘LRP’’) and Third Country and do not provide for preferential earnings. The S&P 500
National Plan (‘‘TCN’’). These plans are unfunded, index fund, bond market index fund and stable value fund
unsecured deferred, account-based compensation plans. are designed to track the investment return of like-named
For each calendar year, participants are permitted under the funds offered under the Company’s 401(k) Plan. The YUM!
EID Program to defer up to 85% of their base pay and up to Stock Fund and YUM! Matching Stock Fund track the
100% of their annual incentive award. As discussed investment return of the Company’s common stock.
beginning at page 42, Messrs. Novak, Grismer and Bergren Participants may transfer funds between the investment
are eligible to participate in the LRP. The LRP provides an alternatives on a quarterly basis except (1) funds invested in
annual allocation to the accounts of Messrs. Novak and the YUM! Stock Fund or YUM! Matching Stock Fund may
Grismer equal to 9.5% of each of his salary plus target not be transferred once invested in these funds and (2) a
bonus and to Mr. Bergren equal to 28% of his salary plus participant may only elect to invest into the YUM! Matching
target bonus. As discussed beginning at page 42, Mr. Creed Stock Fund at the time the annual incentive deferral election
is eligible to participate in the TCN. The TCN provides for an is made. In the case of the Matching Stock Fund,
annual allocation to Mr. Creed’s account equal to 15% of his participants who defer their annual incentive into this fund
salary plus target bonus. acquire additional phantom shares (called restricted stock
units (‘‘RSUs’’)) equal to 33% of the RSUs received with
EID Program respect to the deferral of their annual incentive into the
YUM! Matching Stock Fund (the additional RSUs are
Deferred Investments under the EID Program. Amounts referred to as ‘‘matching contributions’’). The RSUs
deferred under the EID Program may be invested in the attributable to the matching contributions are allocated on
following phantom investment alternatives (12 month the same day the RSUs attributable to the annual incentive
investment returns are shown in parentheses): are allocated, which is the same day we make our annual
YUM! Stock Fund (ⳮ1.54%*) stock appreciation right grants. Eligible amounts attributable
to the matching contribution under the YUM! Matching
YUM! Matching Stock Fund (ⳮ1.54%*) Stock Fund are included in column (c) below as
S&P 500 Index Fund (13.61%) contributions by the Company (and represent amounts
actually credited to the NEO’s account during 2014).
Bond Market Index Fund (5.93%) Beginning with their 2009 annual incentive award, NEOs
Stable Value Fund (1.40%) are no longer eligible to participate in the Matching Stock
Fund.
* Assumes dividends are not reinvested.
2015 Proxy Statement YUM! BRANDS, INC. 55
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EXECUTIVE COMPENSATION
Proxy Statement