Pizza Hut 2015 Annual Report Download

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01
YUM! BRANDS 2015 ANNUAL REPORT

Table of contents

  • Page 1
    YUM! BRANDS 2015 ANNUAL REPORT 01

  • Page 2
    ...strong brands are critical to delivering sustained growth and creating long-term shareholder value. 02 DEAR STAKEHOLDERS 04 CHINA DIVISION 06 KFC DIVISION 07 PIZZA HUT DIVISION 08 TACO BELL DIVISION 09 HUGE HEART 10 CONCLUSION $6.2 BILLION OF INCREMENTAL CAPITAL RETURN PRIOR TO CHINA BUSINESS SPIN...

  • Page 3
    ... three of our brand divisions, with Taco Bell at 5%, KFC at 3% and Pizza Hut at 1%. China's same-store sales declined 4% in 2015 but we have plans to return both KFC China and Pizza Hut Casual Dining to positive growth in 2016. We opened 2,365 new restaurants globally in 2015. This year we expect to...

  • Page 4
    ...NEW RESTAURANT growth of 10%. OPENINGS IN 2015 743 KFC CHINA KFC, which represents about 75% of China's operating profit, grew same-store sales 6% in the fourth quarter, continuing the sequential improvement we saw throughout the year. While same-store sales declined 4% for the year, total system...

  • Page 5
    ... specials and value pizzas - as well as other initiatives to drive traffic. We have our work cut out for us here, but the China team has a number of strategies and concepts in test that we expect to improve results. We know there is substantial runway for PIZZA HUT CASUAL new units and same-store...

  • Page 6
    ... to see KFC's "Always Original" positioning gaining momentum and being adopted globally, which I believe will lend further strength to the brand. Franchisees opened 85% of our 705 new international restaurants in 2015. Total system sales grew 11% in emerging markets for the year, with particular...

  • Page 7
    ... U.S. business to drive growth in these developed markets going forward. In 2016 we expect to open at least 525 new international restaurants. We also expect to grow operating profit 7% in constant currency, which includes a two percentage point benefit from the 53rd operating week. NEW PIZZA HUT...

  • Page 8
    ... great brand internationally. We know this process will take time, but we're making real progress here. In 2016 we expect to open at least 300 global new restaurants and to grow operating profit in constant currency 9%, which includes a three percentage point benefit from the 53rd operating week...

  • Page 9
    ... community engagement efforts that positively impact the local communities where they live and work. And trust me, we are going to get better and more courageous every day at delivering the high quality, high integrity contributions our consumers most care about in our food, people, communities...

  • Page 10
    ... 10% growth in operating profit in constant currency this year, which includes the benefit of the 53rd operating week, and are setting up two separate companies that will lead the restaurant industry going forward. Yum! is in a unique position. We have three iconic brands and are making them...

  • Page 11
    ...Chief Executive Officer Important Notice Regarding the Availability of Proxy Materials for the Shareholders Meeting to Be Held on May 20, 2016-this notice and the proxy statement are available at www.yum.com/investors/investor_materials.asp. The Annual Report on Form 10-K is available at www.yum.com...

  • Page 12

  • Page 13
    ...of the close of business on March 22, 2016. Proxy Statement ANNUAL REPORT: A copy of our 2015 Annual Report on Form 10-K is included with this proxy statement. WEBSITE: You may also read the Company's Annual Report and this Notice and proxy statement on our website at www.yum.com/annualreport and...

  • Page 14
    ... Exercises and Stock Vested...67 Pension Benefits ...67 Nonqualified Deferred Compensation ...69 Potential Payments Upon Termination or Change in Control ...72 DIRECTOR COMPENSATION EQUITY COMPENSATION PLAN INFORMATION AUDIT COMMITTEE REPORT ADDITIONAL INFORMATION APPENDIX A: YUM! BRANDS, INC. LONG...

  • Page 15
    ... as information about our directors and most highly paid executive officers. QUESTIONS AND ANSWERS ABOUT THE MEETING AND VOTING What is the purpose of the Annual Meeting? At our Annual Meeting, shareholders will vote on several important Company matters. In addition, our management will report on...

  • Page 16
    ...for the fiscal year ending December 31, 2016; • An advisory vote on executive compensation; • The approval of the Company's Long Term Incentive Plan As Amended; and • One (1) shareholder proposal. We will also consider other business that properly comes before the meeting. 2 YUM! BRANDS, INC...

  • Page 17
    ... the polls close at the Annual Meeting. You may do this by: • Signing another proxy card with a later date and returning it to us prior to the Annual Meeting; • Voting again by telephone or through the Internet prior to 11:59 p.m., Eastern Daylight Saving Time, on May 19, 2016; YUM! BRANDS, INC...

  • Page 18
    ... in person or if you properly return a proxy by Internet, telephone or mail. In order for us to conduct our Annual Meeting, a majority of the outstanding shares of YUM common stock, as of March 22, 2016, must be present in person or represented by proxy at the Annual Meeting. This is referred to as...

  • Page 19
    ... outcome of any of these proposals. When will the Company announce the voting results? The Company will announce the voting results of the Annual Meeting on a Current Report on Form 8-K filed within four business days of the Annual Meeting. Proxy Statement What if other matters are presented for...

  • Page 20
    ... Policy, and information about how to report concerns about the Company. To access these documents on the Company's website, www.yum.com, click on "Investors" and then "Corporate Governance". Highlights of our corporate governance practices are described below. Proxy Statement 6 YUM! BRANDS...

  • Page 21
    ...independent under the rules of the New York Stock Exchange ("NYSE"). How often did the Board meet in fiscal 2015? The Board of Directors met 10 times during fiscal 2015. Each director attended at least 75% of the meetings of the Board and the committees of which he or she was a member and that were...

  • Page 22
    ... providing the day-to-day leadership over operations. In 2015, while serving as Executive Chairman, Mr. Novak was responsible for supporting the CEO on corporate strategy, innovative business and brand building ideas, and leadership development. The Board created the Lead Director position in August...

  • Page 23
    ...empowered with sufficient authority to ensure independent oversight of the Company and its management. The Lead Director position has no term limit and is subject only to annual approval by the independent members of the Board. Based upon the recommendation of the Nominating and Governance Committee...

  • Page 24
    ... shareholder return; emphasize long-term incentives; drive ownership mentality; and require executives to personally invest in Company stock. In early 2016, the Management Planning and Development Committee (the "Committee") oversaw the risk assessment of our compensation programs for all employees...

  • Page 25
    ... with Division annual operating plans and requires capital expenditure approval, ensuring alignment with development and return requirements • The financial performance which determines employee awards is closely monitored by the Audit Committee and the full Board • The Company has implemented...

  • Page 26
    ...appropriate members of management and/ or the Board of Directors with respect to all concerns it receives. The full text of our Policy on Reporting of Concerns Regarding Accounting and Other Matters is available on our website at www.yum.com/investors/governance/ complaint.asp. 12 YUM! BRANDS, INC...

  • Page 27
    ... and approves the compensation of the chief executive officer and other senior executive officers • Reviews management succession planning Number of Meetings in Fiscal 2015 4 The Board has determined that all of the members of the Management Planning and Development Committee are independent...

  • Page 28
    ... of executive officers, director compensation, and transactions with other companies if the aggregate amount of the transaction does not exceed the greater of $1 million or 2% of that company's total revenues and the related person is not an executive officer of the other company. 14 YUM! BRANDS...

  • Page 29
    ... number of shares of Company common stock and expects non-management directors to retain shares acquired as compensation as a director until at least 12 months following their departure from the Board. YUM directors receive a significant portion of their annual compensation in stock. The Company...

  • Page 30
    ... significant experience on other public company boards of directors and board committees. There are no family relationships among any of the directors and executive officers of the Company. Director ages are as of the date of this proxy statement. Proxy Statement 16 YUM! BRANDS, INC. - 2016 Proxy...

  • Page 31
    ... Brian C. Cornell • Expertise in strategic planning, retail business, branding and corporate leadership • Public company directorship experience • Independent of Company Age 57 Director since 2015 Chairman and Chief Executive Officer Target Corp. YUM! BRANDS, INC. - 2016 Proxy Statement 17

  • Page 32
    ...and management experience, including as chief executive officer of Taco Bell • Expertise in strategic planning, global branding, franchising, and corporate leadership • Public company directorship and committee experience Greg Creed Age 58 Director since 2014 Chief Executive Officer, YUM David...

  • Page 33
    ... Statement SPECIFIC QUALIFICATIONS, EXPERIENCE, SKILLS AND EXPERTISE: • Operating and management experience, including as president and chief executive officer of global travel-related services company • Expertise in finance, marketing and international business development • Public company...

  • Page 34
    MATTERS REQUIRING SHAREHOLDER ACTION Keith Meister has been the Managing Partner of Corvex Management LP, a New York based investment firm, since 2011. From 2003 to August 2010, Mr. Meister served as Chief Executive Officer and then Principal Executive Officer and Vice Chairman of the Board of ...

  • Page 35
    ...branding, marketing, sales, strategic planning and international business development • Independent of Company P. Justin Skala Age 56 Director since January 28, 2016 Chief Operating Officer of North America, Europe, Africa/Eurasia and Global Sustainability for the Colgate - Palmolive Company YUM...

  • Page 36
    ...: • Global operating and management experience, including as group president of a consumer products company • Expertise in branding, marketing, sales, strategic planning and international business development Elane B. Stock • Independent of Company Age 51 Director Since 2014 Group President...

  • Page 37
    ... o r s c a n b e f o u n d i n o u r G o v e r n a n c e P r i n c i p l e s a t www.yum.com/investors/governance/principles.asp and at page 9 under "What other significant Board practices does the Company have? - Majority Voting Policy." Proxy Statement YUM! BRANDS, INC. - 2016 Proxy Statement 23

  • Page 38
    ... Audit-related fees include audits of financial statements of certain employee benefit plans, agreed upon procedures and other attestations. (3) Tax fees consist principally of fees for international tax compliance, tax audit assistance, and VAT and other tax advisory services. 24 YUM! BRANDS, INC...

  • Page 39
    ... person or represented by proxy and entitled to vote at the Annual Meeting. While this vote is advisory and non-binding on the Company, the Board of Directors and the Management Planning and Development Committee will review the voting results and consider YUM! BRANDS, INC. - 2016 Proxy Statement 25

  • Page 40
    ...or our subsidiaries ("Outside Directors"); • We have added a limitation on the number of shares under the Plan that may be awarded in the form of incentive stock options ("ISOs"); • We have added more broad provisions relating to clawbacks and compensation recovery policies; • We have modified...

  • Page 41
    ... may any stock option or SAR granted under the Plan be surrendered to us in consideration for a cash payment if, at the time of such surrender, the exercise price of the stock option or SAR is greater than the then current fair market value of a share of our common stock. YUM! BRANDS, INC. - 2016...

  • Page 42
    ... the award is forfeited or canceled, or used to satisfy the applicable tax withholding obligation, such shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of stock available for delivery under the Plan. If the exercise price of any stock option...

  • Page 43
    ...the Plan. After the Approval Date, no awards may be granted under the YumBucks Plan, the 1997 Plan or the SharePower Plan. On March 30, 2016, the last reported sale price of our common stock on the New York Stock Exchange was $82.25 per share. Other Share Limitations The following limitations shall...

  • Page 44
    ... the economic benefit of the award. The exercise price of a stock option shall be payable in cash or by tendering (including by way of a net exercise), by either actual delivery of shares or by attestation, shares of stock acceptable to the Committee, and valued at fair market value as of the day of...

  • Page 45
    ... assets; return on equity; return on investment; revenues; stock price; total shareholder return; customer satisfaction metrics; or restaurant unit development. Each goal may be expressed on an absolute and/or relative basis, may be based on or otherwise employ comparisons based on internal targets...

  • Page 46
    ... the repricing of stock options and SARS, amendments expanding the group of eligible individuals, or amendments increases in the aggregate number of shares reserved under the Plan, the shares that may be issued in the form of ISOs, limitations on certain types of Full Value Awards and amendments of...

  • Page 47
    ... market value of the underlying stock at the date of grant and performance awards to employees that the Committee designates as PerformanceBased Compensation are intended to qualify as such "performance-based compensation". A number of requirements must be met in order for particular compensation...

  • Page 48
    ...Micky Pant, CEO Yum Restaurants China Brian Niccol, CEO Taco Bell Jing-Shy S. Su, Former Chairman and CEO Yum Restaurants China All current executive officers as a group All non-employee directors as a group All current employees as a group (excluding executive officers) Number of Shares Covered by...

  • Page 49
    ... make informed choices with respect to the brands available that will enhance the appreciation and marketability of the product. Proxy Statement 2. Management Statement in Opposition to Shareholder Proposal What is the Company's position regarding this proposal? Our Board of Directors unanimously...

  • Page 50
    ... Bell and Pizza Hut have removed or have plans to remove artificial flavors and colors. Taco Bell is working on additional ingredient simplification by removing artificial preservatives and additives, where possible, and was one of the first quick service restaurants to post ingredient statements...

  • Page 51
    ... of YUM common stock as of December 31, 2015 by • each of our directors, • each of the executive officers named in the Summary Compensation Table on page 62, and • all directors and executive officers as a group. Unless we note otherwise, each of the following persons and their family members...

  • Page 52
    ...497 shares • all executive officers as a group, 53,249 shares (2) The amounts shown include beneficial ownership of shares that may be acquired within 60 days pursuant to stock options and SARs awarded under our employee or director incentive compensation plans. For stock options, we report shares...

  • Page 53
    ......45 C. Long-Term Equity Performance-Based Incentives ...48 IV. 2015 Named Executive Officer Total Direct Compensation and Performance Summary ...49 V. Retirement and Other Benefits ...55 VI. How Compensation Decisions Are Made ...56 VII. Compensation Policies and Practices ...58 YUM! BRANDS, INC...

  • Page 54
    EXECUTIVE COMPENSATION I. A. Executive Summary Yum 2015 Performance(1) • The Taco Bell Division delivered exceptional results, continuing to roll-out innovative products and building on its breakfast menu, fueling 8% system sales growth, 5% same-store sales growth and 12% operating profit growth...

  • Page 55
    ...compared to the S&P 500. Base Salary âœ" âœ" âœ" âœ" âœ" âœ" Proxy Statement Drive ownership mentality-We require executives to personally invest in the Company's success by owning a substantial amount of Company stock. âœ" We Don't Do We employ compensation and governance best practices that...

  • Page 56
    .... Mr. Novak retired as CEO effective December 31, 2014 and was appointed Executive Chairman of the YUM Board of Directors effective January 1, 2015. Based on the Committee's review of a variety of external and internal factors, the Committee targeted total compensation and set pay at the 50th...

  • Page 57
    ... SARs/Options, our stock price must increase and, in the case of PSUs, we must attain certain performance thresholds before our executives realize any value. As shown below, our 2012 PSU award under our Performance Share Plan did not pay out to our NEOs in 2015 since the Company's YUM! BRANDS, INC...

  • Page 58
    ...Target 4% Creed Target 3% 2 5% 0% -5 (9%) 9% 0 2013 Base Salary 2014 Bonus 2015 EPS -10% CEO Total Direct Compensation reflects Performance Similarly with cash compensation, our CEO's actual direct compensation (comprised of base salary, bonus and annual long-term incentive value at grant date...

  • Page 59
    ... potential and market value. Specific salary increases take into account these factors. The Committee reviews the NEOs' salary and performance annually. B. Annual Performance-Based Cash Bonuses Our performance-based annual bonus program, the YUM Leaders' Bonus Program, is a cash-based plan. The...

  • Page 60
    ... from management. The objectives were also reviewed by the Board to ensure the goals support the Company's overall strategic objectives. The performance objectives were developed through the Company's annual financial planning process, which takes into account Division growth strategies, historical...

  • Page 61
    ... 25% YUM weighting. Weighted average of each subsidiary business unit's Team Factor based on number of restaurants. Excludes US units. Weighted average of each Brand's Team Factor based on number of restaurants. KFC's standard operating profit growth rate target is 10% year-over-year. For 2015, the...

  • Page 62
    EXECUTIVE COMPENSATION C. Long-Term Equity Performance-Based Incentives based on the closing market price of the underlying YUM common stock on the date of grant. Therefore, SARs/Options awards will only have value if our NEOs are successful in increasing share price above the awards' exercise ...

  • Page 63
    ... direct compensation: 2015 TOTAL DIRECT COMPENSATION Stock Appreciation Rights $3,108,013 Variable Compensation Performance Shares $1,075,016 Annual Incentive Award $787,050 Total Long-Term Equity Compensation Fixed Compensation Total Annual Cash Compensation Base Salary $1,104,615 YUM! BRANDS...

  • Page 64
    ... date from the Company. Variable Compensation Stock Appreciation Rights $1,680,012 Total Long-Term Equity Compensation Performance Shares $420,070 Annual Incentive Award $445,200 Total Annual Cash Compensation Fixed Compensation Base Salary $790,192 50 YUM! BRANDS, INC. - 2016 Proxy Statement

  • Page 65
    ...: 2015 TOTAL DIRECT COMPENSATION Stock Appreciation Rights $2,168,382 Variable Compensation Performance Shares $750,020 Annual Incentive Award $530,000 Total Long-Term Equity Compensation Proxy Statement Fixed Compensation Total Annual Cash Compensation Base Salary $1,005,192 YUM! BRANDS...

  • Page 66
    ... Annual cash bonus target was increased to 115% of base salary. • Target grant value of equity award remained unchanged. These increases brought Mr. Pant's total direct compensation to between the 50th and 75th percentile of the Executive Peer Group. Fixed Compensation Variable Compensation Stock...

  • Page 67
    ... long term performance at Taco Bell and in recognition of promotion to Taco Bell CEO (grant date fair market value of award was $1,091,491). These increases brought Mr. Niccol's total direct compensation to between the 50th and 75th percentile of the Executive Peer Group for his position. The...

  • Page 68
    ... the Chief Executive Officer of Yum! Restaurants China until February 15, 2016. The Committee determined his overall individual performance for 2015 was below target and approved a 65 individual performance factor. This was based upon the China Division not achieving operating profit or system sales...

  • Page 69
    ... their base salary and target bonus (9.5% for Mr. Grismer, 20% for Mr. Pant and 9.5% for Mr. Niccol) and an annual earnings credit of 5%. The Company provides retirement benefits for certain international employees through the YUM! Brands International Retirement Plan ("YIRP") and the Third Country...

  • Page 70
    .... Committee members and management team members from compensation, investor relations and legal continued to be directly involved in engagement efforts during 2015 that served to reinforce our open door policy. The efforts included: • Contacting the top 100 shareholders, representing ownership of...

  • Page 71
    EXECUTIVE COMPENSATION COMMITTEE ANNUAL COMPENSATION PROCESS • Reviews competitive analysis/benchmarking for CEO and direct reports • Reviews bonus and performance share plan metrics, targets, and leverage recommendations for the following year • Evaluates feedback from shareholders and proxy...

  • Page 72
    ... 8 4 202 8 5 38 (1) Calculated as of December 31, 2015 and represents shares owned outright, vested RSUs and all RSUs awarded under the Company's Executive Income Deferral Program. (2) Based on YUM closing stock price of $73.05 as of December 31, 2015. 58 YUM! BRANDS, INC. - 2016 Proxy Statement

  • Page 73
    ...Board of Directors more than six months prior to the actual meeting. The Committee sets the annual grant date as the second business day after our fourth quarter earnings release. The exercise price of awards granted under our Long-Term Incentive Plan ("LTIP") is set as the closing price on the date...

  • Page 74
    ... rules the Chief Financial Officer is not subject to these limits.) The bonus pool for 2015 was equal to 1.5% of operating profit (adjusted to exclude special items believed to be distortive of consolidated results on a year-over-year basis - these are the same items excluded in the Company's annual...

  • Page 75
    ...statement titled "Compensation Discussion and Analysis" and, on the basis of that review and discussion, recommended to the Board that the section be incorporated by reference into the Company's Annual Report on Form 10-K and included in this proxy statement. THE MANAGEMENT PLANNING AND DEVELOPMENT...

  • Page 76
    ... receipt of salary into the Executive Income Deferral ("EID") Program or into the Company's 401(k) Plan. (2) Amounts shown in this column represent the grant date fair values for performance share units (PSUs) granted in 2015, 2014 and 2013. Further information regarding the 2015 awards is included...

  • Page 77
    ... present value of his accrued benefits under the Retirement Plan during the 2015 fiscal year (using interest rate and mortality assumptions consistent with those used in the Company's financial statements). Mr. Creed is not an active participant in the Retirement Plan but maintains a balance in...

  • Page 78
    ... as of the last day of employment must be exercised within 90 days following termination of employment. (4) The exercise price of the SARs/stock options granted in 2015 equals the closing price of YUM common stock on the grant date, February 6, 2015. 64 YUM! BRANDS, INC. - 2016 Proxy Statement

  • Page 79
    ...and option awards contained in Part II, Item 8, "Financial Statements and Supplementary Data" of the 2015 Annual Report in Notes to Consolidated Financial Statements at Note 14, "Share-based and Deferred Compensation Plans." Outstanding Equity Awards at Year-End The following table shows the number...

  • Page 80
    ... amount represents deferral of his 2013 and 2014 bonuses into the EID Program's Matching Stock Fund. (3) The market value of these awards are calculated by multiplying the number of shares covered by the award by $73.05, the closing price of YUM stock on the NYSE on December 31, 2015. (4) The awards...

  • Page 81
    ..."), and the YUM! Brands International Retirement Plan ("YIRP") determined using interest rate and mortality rate assumptions consistent with those used in the Company's financial statements. 2015 FISCAL YEAR PENSION BENEFITS TABLE Number of Years of Present Value of Payments During Credited Service...

  • Page 82
    ...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. 68 YUM! BRANDS...

  • Page 83
    ... with those used in financial accounting calculations at each measurement date. (2) YUM! Brands International Retirement Plan The YIRP is an unfunded, non-qualified defined benefit plan that covers certain international employees who are designated by the Company as third country nationals. Mr...

  • Page 84
    ... attributable to the matching contribution under the YUM! Matching Stock Fund are included in column (c) below as contributions by the Company (and represent amounts actually credited to the NEO's account during 2015). Beginning with their 2009 annual incentive award, those who are eligible for PSU...

  • Page 85
    ... year. Under the LRP, Mr. Novak receives an annual earnings credit equal to 120% of the applicable federal interest rate. Mr. Grismer, Mr. Niccol and Mr. Pant receive an annual earnings credit equal to 5%. The Company's contribution ("Employer Credit") for 2015 is equal to 9.5% of salary plus target...

  • Page 86
    ... if the NEO's employment had terminated on December 31, 2015, given the NEO's compensation and service levels as of such date and, if applicable, based on the Company's closing stock price on that date. These benefits are in addition to benefits available generally to salaried employees, such as...

  • Page 87
    ..., assuming target performance. Pension Benefits. The Pension Benefits Table on page 67 describes the general terms of each pension plan in which the NEOs participate, the years of credited service and the present value of the annuity payable to each NEO assuming termination of employment as of...

  • Page 88
    EXECUTIVE COMPENSATION • All RSUs under the Company's EID Program held by the executive will automatically vest. • All PSU awards under the Company's Performance Share Plan awarded in the year in which the change in control occurs will be paid out at target assuming a target level performance ...

  • Page 89
    ... used to value the awards, see the discussion of stock awards and option awards contained in Part II, Item 8, "Financial Statements and Supplementary Data" of the 2015 Annual Report in Notes to Consolidated Financial Statements at Note 14, "Share-based and Deferred Compensation Plans." YUM! BRANDS...

  • Page 90
    ... Management Planning and Development Committee (Mr. Walter in 2015) receives an additional $15,000 stock retainer annually. These retainers were paid in November 2014 for 2015. Initial Stock Grant upon Joining Board. Non-employee directors also receive a one-time stock grant with a fair market value...

  • Page 91
    ..., 2015, the equity compensation plans under which we may issue shares of stock to our directors, officers and employees under the Long Term Incentive Plan (the "1999 Plan"), the 1997 Long Term Incentive Plan (the "1997 Plan"), the SharePower Plan and the Restaurant General Manager Stock Option Plan...

  • Page 92
    ... Area Coaches, Franchise Business Leaders and other supervisory field operation positions that support RGMs and have profit and loss responsibilities within a defined region or area. While all non-executive officer employees are eligible to receive awards under the RGM plan, all awards granted have...

  • Page 93
    ... material conformity with U.S. generally accepted accounting principles and for auditing the effectiveness of the Company's internal control over financial reporting. The Committee's responsibility is to monitor and review the Company's financial reporting YUM! BRANDS, INC. - 2016 Proxy Statement 79

  • Page 94
    ... COMMITTEE REPORT process and discuss management's report on the Company's internal control over financial reporting. It is not the Committee's duty or responsibility to conduct audits or accounting reviews or procedures. The Committee has relied, without independent verification, on management...

  • Page 95
    ...? YUM shareholders with shares registered directly in their name who received shareholder materials in the mail may elect to receive future annual reports and proxy statements from us and to vote their shares through the Internet instead of receiving copies through the mail. We are offering this...

  • Page 96
    ... to serve as directors? Under the rules of the SEC, if a shareholder wants us to include a proposal in our proxy statement and proxy card for presentation at our 2017 Annual Meeting of Shareholders, the proposal must be received by us at our principal executive offices at YUM! Brands, Inc., 1441...

  • Page 97
    ...it does not meet the requirements of an ISO. (b) A stock appreciation right (an "SAR") entitles the Participant to receive, in cash or Stock, value equal to (or otherwise based on) the excess of: (i) the Fair Market Value of a specified number of shares of Stock at the time of exercise; over (ii) an...

  • Page 98
    ... under the Plan be surrendered to YUM! in consideration for a cash payment if, at the time of such surrender, the Exercise Price of the Option or SAR is greater than the then current Fair Market Value of a share of Stock. 2.6 Payment of Option Exercise Price. The payment of the Exercise Price of an...

  • Page 99
    ... by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, or the shares of Stock are not delivered because the Award is settled in cash or used to satisfy the applicable tax withholding obligation, such YUM! BRANDS, INC. - 2016 Proxy Statement 85

  • Page 100
    ... Stock that may be issued in conjunction with Awards granted pursuant to Section 3 (relating to Full Value Awards) shall be 12,000,000 shares except that shares subject to Full Value Awards granted with respect to the deferral of annual cash incentive awards under a deferred compensation plan of YUM...

  • Page 101
    ... Stock that has been held by the Participant or Stock to which the Participant is entitled under the Plan may only be used to satisfy the minimum tax withholding required by applicable law (or other rates that will not have a negative accounting impact). YUM! BRANDS, INC. - 2016 Proxy Statement...

  • Page 102
    ... of a business or entity, all or a portion of which is acquired by YUM! or a Subsidiary). Subject to the overall limitation on the number of shares of Stock that may be delivered under the Plan, the Committee may use available shares of Stock as the form of payment for compensation, grants or...

  • Page 103
    ...a Full Value Award or otherwise, as it determines to be desirable, including, without limitation, restrictions relating to disposition of the shares and forfeiture restrictions based on service, performance, Stock ownership by the Participant, conformity with YUM's recoupment, compensation recovery...

  • Page 104
    ... and restatement of the Plan. (b) Award. The term "Award" shall mean any award or benefit granted under the Plan, including, without limitation, the grant of Options, SARs, or Full Value Awards. (c) Board. The term "Board" shall mean the Board of Directors of YUM!. (d) Change in Control. Except...

  • Page 105
    ...; earnings per share; market value added or economic value added; profits; return on assets; return on equity; return on investment; revenues; stock price; total shareholder return; customer satisfaction metrics; or restaurant unit development. Each goal may be Proxy Statement "Affiliate" shall...

  • Page 106
    ... based on internal targets, the past performance of YUM! and/or the past or current performance of other companies, and in the case of earnings-based measures, may use or employ comparisons relating to capital, shareholders' equity and/or shares outstanding, investments or to assets or net assets...

  • Page 107
    ...company (as defined in Rule 12b-2 of the Exchange Act). The aggregate market value of the voting stock (which consists solely of shares of Common Stock) held by non-affiliates of the registrant as of June 13, 2015 computed by reference to the closing price of the registrant's Common Stock on the New...

  • Page 108
    ... and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes In and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information 13...

  • Page 109
    ...future results or events, including, without limitation, statements regarding the intended capital return to shareholders as well as the related borrowing required to fund such capital return, the planned separation of the Yum! Brands and Yum! China businesses, the timing of any such separation, the...

  • Page 110
    ... through the three concepts of KFC, Pizza Hut and Taco Bell (the "Concepts"), the Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of competitively priced food items. Units are operated by a Concept or by independent...

  • Page 111
    ...Restaurant Concepts Most restaurants in each Concept offer consumers the ability to dine in and/ or carry out food. In addition, Taco Bell and KFC offer a drive-thru option in many stores. Pizza Hut offers a drive-thru option on a much more limited basis. Pizza Hut typically offers delivery service...

  • Page 112
    ... food industry in terms of number of system units or system sales, either on a worldwide or individual country basis. Research and Development ("R&D") The Company operates R&D facilities in Shanghai, China (China Division); Plano, Texas (KFC and Pizza Hut Divisions); Irvine, California (Taco Bell...

  • Page 113
    ... from the related Consolidated Financial Statements in Part II, Item 8. Available Information The Company makes available through the Investor Relations section of its internet website at http://yum.com its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and...

  • Page 114
    ... other supplies may increase costs or reduce revenues. The products sold by our Concepts and their franchisees are sourced from a wide variety of domestic and international suppliers. We are also dependent upon third parties to make frequent deliveries of food 6 YUM! BRANDS, INC. - 2015 Form 10-K

  • Page 115
    ... commodities we use or operating expenses we incur could adversely affect our profit margins. Because our Concepts and their franchisees provide competitively priced food, our ability to pass along increased expenses to our customers is limited. operations, regardless of the information's accuracy...

  • Page 116
    ... is highly competitive with respect to price and quality of food products, new product development, advertising levels and promotional initiatives, customer service, reputation, restaurant location, and attractiveness and maintenance of properties. If consumer 8 YUM! BRANDS, INC. - 2015 Form 10-K

  • Page 117
    ... effect on our sales, profitability or development plans, which could harm our financial condition and operating results. In addition, in the retail food industry, labor is a primary operating cost component. Competition for qualified employees could also require us to pay higher wages to attract...

  • Page 118
    ... on the difference between the fair market value and the tax basis of the separated China business. As our tax basis in the China business is minimal, the amount of such a tax could be significant and have a material adverse effect on our results of operations and our financial condition. If the...

  • Page 119
    ..., suppliers, employees, customers and others related to operational, contractual or employment issues as well as claims that the Company has infringed on third party intellectual property rights. In addition, the ITEM 4 Not applicable Mine Safety Disclosures YUM! BRANDS, INC. - 2015 Form 10-K 11

  • Page 120
    ... Chief People Officer of Pizza Hut U.S. from October 2011 to November 2013. From June 2006 to September 2011, she also served as Director of Human Resources for Pizza Hut U.S. Executive officers are elected by and serve at the discretion of the Board of Directors. 12 YUM! BRANDS, INC. - 2015 Form...

  • Page 121
    ... share and two cash dividends of $0.41 per share of Common Stock, one of which had a distribution date of February 6, 2015. The Company currently targets, and will continue to target subsequent to the planned spin-off of our China business, an annual dividend payout ratio of 45% to 50% of net income...

  • Page 122
    ...2015, the last trading day of our 2015 fiscal year. The graph assumes that the value of the investment in our Common Stock and each index was $100 at December 23, 2010 and that all dividends were reinvested. In $ 250.00 200.00 Form 10-K 150.00 100.00 50.00 2010 YUM! 2011 S&P 500 2012 2013 2014...

  • Page 123
    ...II ITEM 6 Selected Financial Data SELECTED FINANCIAL DATA YUM! BRANDS, INC. AND SUBSIDIARIES 2015 2014 Fiscal Year 2013 2012 2011(g) (in millions, except per share and unit amounts) Income Statement Data Revenues Company sales Franchise and license fees and income Total Closures and impairment...

  • Page 124
    ...we retrospectively adopted Accounting Standard Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes. See Income Taxes section of Note 2. We have restated Total assets for 2014 to reflect this change, but have not restated 2013, 2012 or 2011. The selected financial data should be...

  • Page 125
    ... ongoing YUM business. The new China entity's 15% EPS growth includes contributions from both Operating Profit and financial strategies such as share repurchases. YUM's 15% total shareholder return includes ongoing Operating Profit growth targets of 10% for our KFC Division, 8% for our Pizza Hut...

  • Page 126
    .... 2015 financial highlights are below: China Division 2% 8% (4)% 743 KFC Division 7% 8% 3% 715 Pizza Hut Division 2% 1% 1% 577 Taco Bell Division 8% 12% 5% 276 India Division (5)% (118)% (13)% 54 System Sales Growth (Decline) Operating Profit Growth (Decline) Same Store Sales Growth (Decline) New...

  • Page 127
    ... initiatives related to the planned spin-off of our China business into an independent publicly-traded company and our recapitalization plan. (b) The refranchising gains in 2015 and 2013 were primarily due to gains on sales of Taco Bell restaurants. (c) Other Special Items Income (Expense) in 2013...

  • Page 128
    ... restaurants and accelerated the development of Pizza Hut Home Service (home delivery). For 2015, China Division targeted mid-single-digit same-store sales growth, moderate margin improvement, at least 700 new unit openings and Operating Profit growth of at least 15%. % B/(W) % B/(W) 2015 2014 2013...

  • Page 129
    ...factors impacting Company sales and/or Restaurant profit were wage rate inflation of 9% and same-store sales declines of 5% which led to inefficiencies in Cost of sales, partially offset by labor efficiencies and lower advertising expense. Franchise and License Fees and Income In 2015, the increase...

  • Page 130
    ...Company sales Franchise and license fees and income Total revenues Restaurant profit Restaurant margin % G&A expenses Operating Profit 2015 $ 2,106 842 $ 2,948 $ 312 14.8% $ $ 386 677 2014 $ 2,320 873 $ 3,193 $ 308 13.3% $ $ 383 708 Reported 6 4 5 12 0.7 2 9 System Sales Growth, reported System...

  • Page 131
    ... in same-store sales and international net new units, partially offset by higher restaurant operating costs in international markets. Pizza Hut Division The Pizza Hut Division has 13,728 units, approximately 60% of which are located in the U.S. The Pizza Hut Division operates as one brand that uses...

  • Page 132
    .... Significant other factors impacting Company sales and/or Restaurant profit were company same-store sales declines of 4%, commodity inflation, primarily in the U.S., and higher self-insurance costs. Form 10-K Franchise and License Fees and Income In 2015, the increase in Franchise and license...

  • Page 133
    ... U.S. The Company owns 15% of the Taco Bell units in the U.S., where the brand has historically achieved high restaurant margins and returns. For 2015, Taco Bell targeted about 150 net new units, low-single-digit same-store sales growth and Operating Profit growth of 6%. % B/(W) 2015 Reported Ex FX...

  • Page 134
    ...(a) Operating Profit (loss) $ $ 115 (19) $ $ 2014 141 (9) $ $ 2013 127 (15) Form 10-K System Sales Growth, reported(a) System Sales Growth, excluding FX(a) Same-Store Sales Growth (Decline)% Unit Count Franchise & License Company-owned 2015 693 118 811 2014 623 210 833 2013 514 191 705 New...

  • Page 135
    ... outstanding borrowings of $701 million under our revolving credit facility as of December 26, 2015. See Note 10. Other liabilities and deferred credits declined $277 million primarily due to actuarial gains and cash contributions related to our pension plans. YUM! BRANDS, INC. - 2015 Form 10-K 27

  • Page 136
    ... and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Operating in the retail food industry allows us to generate substantial cash flows from the operations of our company-owned stores and from our extensive franchise operations which require a limited YUM...

  • Page 137
    ... dates of these future cash payments. We sponsor noncontributory defined benefit pension plans covering certain salaried and hourly employees, the most significant of which are in the U.S. and UK. The most significant of the U.S. plans, the YUM Retirement Plan (the "Plan"), is funded while benefits...

  • Page 138
    ... Pizza Hut and Taco Bell Divisions and individual brands in our China and India Divisions. Fair value is the price a willing buyer would pay for the reporting unit, and is generally estimated using discounted expected future after-tax cash flows from Company-owned restaurant operations and franchise...

  • Page 139
    ... and Analysis of Financial Condition and Results of Operations During 2015, the Company's reporting units with the most significant refranchising activity and recorded goodwill were KFC India, Taco Bell U.S. and KFC China. Within KFC India, 86 restaurants were refranchised (representing 42...

  • Page 140
    ... The Company is exposed to financial market risks associated with interest rates, foreign currency exchange rates and commodity prices. In the normal course of business and in accordance with our policies, we manage these risks through a variety of strategies, which may include the use of financial...

  • Page 141
    ...Financial Statements and Supplementary Data Index to Financial Information Page Reference Consolidated Financial Statements Report of Independent Registered Public Accounting Firm Consolidated Statements of Income for the fiscal years ended December 26, 2015, December 27, 2014 and December 28, 2013...

  • Page 142
    ...ITEM 8 Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders YUM! Brands, Inc.: We have audited the accompanying consolidated balance sheets of YUM! Brands, Inc. and subsidiaries (YUM) as of December 26, 2015 and...

  • Page 143
    ..., except per share data) 2015 $ 11,145 1,960 13,105 2014 $ 11,324 1,955 13,279 2013 $ 11,184 1,900 13,084 Revenues Company sales Franchise and license fees and income Total revenues Costs and Expenses, Net Company restaurants Food and paper Payroll and employee benefits Occupancy and other...

  • Page 144
    ... income (loss), net of tax Comprehensive Income - including noncontrolling interests Comprehensive Income (loss) - noncontrolling interests Comprehensive Income - Yum! Brands, Inc. See accompanying Notes to Consolidated Financial Statements. Form 10-K $ 2015 1,298 $ 2014 1,021 $ 2013...

  • Page 145
    ... three months - payments Three months or less, net Repurchase shares of Common Stock Excess tax benefit from share-based compensation Employee stock option proceeds Dividends paid on Common Stock Other, net Net Cash Used in Financing Activities Effect of Exchange Rates on Cash and Cash Equivalents...

  • Page 146
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Balance Sheets YUM! BRANDS, INC. AND SUBSIDIARIES DECEMBER 26, 2015 AND DECEMBER 27, 2014 (in millions) 2015 2014 ASSETS Current Assets Cash and cash equivalents Accounts and notes receivable, net Inventories Prepaid ...

  • Page 147
    ...long-term investment nature (net of tax impact of $4 million) Reclassification of translation adjustments into income Pension and post-retirement benefit plans (net of tax impact of $69 million) Comprehensive Income (loss) Dividends declared Repurchase of shares of Common Stock Employee stock option...

  • Page 148
    ...to public listing and applicable securities laws, and other terms and conditions as may be determined by the Board of Directors. YUM! Brands, Inc. and Subsidiaries (collectively referred to herein as "YUM" or the "Company") comprise primarily the worldwide operations of KFC, Pizza Hut and Taco Bell...

  • Page 149
    ... for franchise-related intangible assets and certain other direct incremental franchise and license support costs. Revenue Recognition. Revenues from Company-owned restaurants are recognized when payment is tendered at the time of sale. The Company presents sales net of sales-related taxes. Income...

  • Page 150
    ... in 2015, 2014 and 2013, respectively. Share-Based Employee Compensation. We recognize all share-based payments to employees, including grants of employee stock options and stock appreciation rights ("SARs"), in the Consolidated Financial Statements as compensation cost over the service period based...

  • Page 151
    ... plans and expected cash requirements in the United States. See Note 16 for a further discussion of our income taxes. Fair Value Measurements. Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants...

  • Page 152
    ... carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from Company-owned restaurant operations and franchise royalties. The discount rate is our estimate of the required rate of return...

  • Page 153
    ...Consolidated Balance Sheet as of our fiscal year end. The funded status represents the difference between the projected benefit obligations and the fair value of plan assets, which is calculated on a plan-by-plan basis. The projected benefit obligation and related funded status are determined using...

  • Page 154
    .... Refranchising (gain) loss 2015 2014 2013 $ (13) $ (17) $ (5) 30 (18) (8) 55 4 (3) (65) (4) (84) 3 2 - $ 10 $ (33) $ (100) China KFC Division(a) Pizza Hut Division(a)(b) Taco Bell Division India Worldwide (a) In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To...

  • Page 155
    ...previously closed stores. Remaining lease obligations for closed stores were not material at December 26, 2015 or December 27, 2014. NOTE 5 Supplemental Cash Flow Data 2015 2014 $ 149 684 24 $ 2013 269 489 15 Form 10-K Cash Paid For: Interest(a) Income taxes(b) Significant Non-Cash Investing and...

  • Page 156
    ...The loss associated with this planned sale reflects the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. NOTE 8 Supplemental Balance Sheet Information $ 2015 41 28 173 242 $ 2014 55 14 185 254 Prepaid Expenses and Other Current Assets Income tax...

  • Page 157
    ...ITEM 8 Financial Statements and Supplementary Data NOTE 9 Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: China Balance as of December 28, 2013 Goodwill, gross Accumulated impairment losses(a) Goodwill, net Acquisitions Impairment Losses(a) Disposals...

  • Page 158
    ...II ITEM 8 Financial Statements and Supplementary Data NOTE 10 Short-term Borrowings and Long-term Debt 2015 2014 $ 264 3 - - 267 Short-term Borrowings Current maturities of long-term debt Current portion of fair value hedge accounting adjustment Unsecured Short-Term Loan Credit Facility, expires...

  • Page 159
    ... the fair value of debt using market quotes and calculations based on market rates. As of December 26, 2015 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these...

  • Page 160
    ...compensation liabilities that employees have chosen to invest in phantom shares of a Stock Index Fund or Bond Index Fund. The other investments are classified as trading securities in Other assets in our Consolidated Balance Sheet and their fair value is determined based on the closing market prices...

  • Page 161
    ... Information for pension plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation Accumulated benefit obligation Fair value of plan assets 2015 $ 1,134 1,088 1,004 2014 $ 1,301 1,254 991 $ 2015 101 88 - 2014 $ 1,301 1,254 991 YUM! BRANDS, INC. - 2015 Form...

  • Page 162
    ...increase 2015 4.30% 6.75% 3.75% 2014 5.40% 6.90% 3.75% 2013 4.40% 7.25% 3.75% 2015 4.90% 3.75% 2014 4.30% 3.75% Our estimated long-term rate of return on plan assets represents the weighted-average of expected future returns on the asset categories included in our target investment allocation based...

  • Page 163
    ...assets are determined based on closing market prices or net asset values. A mutual fund held as an investment by the Plan includes shares of YUM Common Stock valued at $0.5 million at both December 26, 2015 and December 27, 2014 (less than 1% of total plan assets in each instance). Benefit Payments...

  • Page 164
    ... Share-based and Deferred Compensation Plans At year end 2015, we had four stock award plans in effect: the YUM! Brands, Inc. Long-Term Incentive Plan and the 1997 Long-Term Incentive Plan (collectively the "LTIPs"), the YUM! Brands, Inc. Restaurant General Manager Stock Option Plan ("RGM Plan...

  • Page 165
    ...49 $ 15 $ 11 $ Form 10-K Options and SARs Restricted Stock Units Performance Share Units Total Share-based Compensation Expense Deferred Tax Benefit recognized EID compensation expense not share-based $ $ $ $ Cash received from stock option exercises for 2015, 2014 and 2013, was $12 million, $29...

  • Page 166
    ... from accumulated OCI for pension and post-retirement benefit plan losses during 2015 include amortization of net losses of $46 million, settlement charges of $5 million, amortization of prior service cost of $2 million and related income tax benefit of $20 million. Amounts reclassified from...

  • Page 167
    ... 622 Form 10-K $ $ 676 (32) 644 $ $ 653 (31) 622 difference relates to carrying value for financial reporting in excess of tax basis for the investment in our China business. In October, 2015 YUM announced its intent to separate its China business into an independent publicly-traded company by...

  • Page 168
    ...the fair market value and the tax basis of the separated China business. As our tax basis in the China business is minimal, the amount of such a tax could be significant and have a material adverse effect on our results of operations and our financial condition. At December 26, 2015, the Company has...

  • Page 169
    ... II ITEM 8 Financial Statements and Supplementary Data NOTE 17 Reportable Operating Segments See Note 1 for a description of our operating segments. Revenues 2014 $ 6,934 3,193 1,148 1,863 141 $ 13,279 China KFC Division(a) Pizza Hut Division(a) Taco Bell Division(a) India 2015 $ 6,909 2,948...

  • Page 170
    ... cash, deferred tax assets and property, plant and equipment, net, related to our office facilities. Includes property, plant and equipment, net, goodwill, and intangible assets, net. U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled...

  • Page 171
    ... regarding the Company's business or financial condition and instead alleged that, during the Class Period, defendants purportedly omitted information about the Company's supply chain in China, thereby inflating the prices at which the Company's securities traded. On October 4, 2013, the Company and...

  • Page 172
    ...matter has been closed. The Company and Taco Bell were named as defendants in a number of putative class action suits filed in 2007, 2008, 2009 and 2010 alleging violations of California labor laws including unpaid overtime, failure to timely pay wages on termination, failure to pay accrued vacation...

  • Page 173
    ...362 0.83 0.81 - First Quarter Revenues: Company sales Franchise and license fees and income Total revenues Restaurant profit Operating Profit(b) Net Income - YUM! Brands, Inc. Basic earnings per common share Diluted earnings per common share Dividends declared per common share $ 2,292 432 2,724 441...

  • Page 174
    ...the Company's internal control over financial reporting or in other factors that materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the quarter ended December 26, 2015. ITEM 9B Other Information None. Form 10-K 66 YUM! BRANDS, INC...

  • Page 175
    ... and management appearing under the captions "Executive Compensation" and "Stock Ownership Information" is incorporated by reference from the Company's definitive proxy statement which will be filed with the Securities and Exchange Commission no later than 120 days after December 26, 2015. Form 10...

  • Page 176
    ... Exhibits: The exhibits listed in the accompanying Exhibit Index are filed as part of this Form 10-K. The Index to Exhibits specifically identifies each management contract or compensatory plan required to be filed as an exhibit to this Form 10-K. Form 10-K 68 YUM! BRANDS, INC. - 2015 Form 10-K

  • Page 177
    ... has duly caused this Form 10-K annual report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 16, 2016 YUM! BRANDS, INC. By: /s/GREG CREED Pursuant to the requirements of the Securities Exchange Act of 1934, this annual report has been signed below by the...

  • Page 178
    ... Foodservice Purchasing Co-op, LLC, McLane Foodservice, Inc., and certain subsidiaries of Yum! Brands, Inc., which are incorporated herein by reference from Exhibit 10.1 to YUM's Quarterly Report on Form 10-Q for the quarter ended September 4, 2010. Credit Agreement, dated March 22, 2012 among YUM...

  • Page 179
    ...op Agreement, dated as of January 1, 2012, between YUM and the Unified Foodservice Purchasing Co-op, LLC, which is incorporated herein by reference from Exhibit 10.11 to YUM's Annual Report on Form 10-K for the fiscal year ended December 31, 2011. YUM Restaurant General Manager Stock Option Plan, as...

  • Page 180
    ...10.28 to YUM's Annual Report on Form 10-K for the fiscal year ended December 27, 2014. Retirement Agreement and General Release, dated August 13, 2015, by and between the Company and Jing-Shyh S. Su, which is incorporated by reference from Exhibit 10.29 to YUM's Quarterly Report on Form 10-Q for the...

  • Page 181
    ... names of other companies and organizations, and these brand names, trademarks, service marks and trade names are the property of their respective owners. Market and Industry Data. Unless we indicate otherwise, we base the information concerning our industry contained in this report on our general...

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  • Page 184
    ... a duplicate Form 1099-B • Purchase shares of YUM through the Company's Direct Stock Purchase Plan • Sell shares held at AST Access accounts online at the following URL: https://secure.amstock.com/Shareholder/sh_login.asp. Your account number and social security number are required. If you...

  • Page 185
    ...-0535 STOCK TRADING SYMBOL-YUM The New York Stock Exchange is the principal market for YUM Common Stock, which trades under the symbol YUM. Franchise Inquiries ONLINE FRANCHISE INFORMATION Information about potential franchise opportunities is available at www.yumfranchises.com YUM's Annual Report...

  • Page 186
    ... Executive Officer, Pizza Hut Marc L. Kesselman 44 Chief Legal Officer, General Counsel and Corporate Secretary, Yum! Brands, Inc. Brian Niccol 41 Chief Executive Officer, Taco Bell Muktesh ("Micky") Pant 61 Chief Executive Officer, Yum! Restaurants China David E. Russell 46 Interim Chief Financial...