Pizza Hut 2005 Annual Report Download - page 70
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Please find page 70 of the 2005 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.foreverytwosharesofCommonStock(onehalfrightper
share). Each right initially entitles the registered holder
topurchaseaunitconsistingofoneonethousandthofa
share(a“Unit”)of SeriesAJuniorParticipating Preferred
Stock,withoutparvalue,atapurchasepriceof$130per
Unit,subjecttoadjustment.Therights,whichdonothave
votingrights,willbecomeexercisableforourCommonStock
tenbusinessdaysfollowingapublicannouncementthata
personorgrouphasacquired,orhascommencedorintends
tocommenceatenderofferfor,15%ormore,or20%more
ifsuchpersonorgroupowned10%ormoreontheadoption
dateofthisplan,ofourCommonStock.Intheeventtherights
becomeexercisableforCommonStock,eachrightwillentitle
itsholder(otherthantheAcquiringPersonasdefinedinthe
Agreement)topurchase,attheright’sthencurrentexercise
price,YUMCommonStockandthereafterweareacquiredin
amergerorotherbusinesscombination,eachrightwillentitle
itsholdertopurchase,attheright’sthencurrentexercise
price, Common Stock of the acquiring company having a
valueoftwicetheexercisepriceoftheright.
We can redeem the rights in their entirety, prior to
becomingexercisable,at$0.01perrightundercertainspeci-
fiedconditions.TherightsexpireonJuly21,2008,unlesswe
extendthatdateorwehaveearlierredeemedorexchanged
therightasprovidedintheAgreement.
Thisdescriptionoftherightisqualifiedinitsentiretyby
referencetotheoriginalRightsAgreement,datedJuly21,
1998,andtheAgreementofSubstitutionandAmendmentof
CommonShareRightsAgreement,datedAugust28,2003,
betweenYUMandAmericanStockTransferandTrustCompany,
theRightAgent(bothincludingtheexhibitsthereto).
18.SHAREHOLDERS’EQUITY
TheCompanyinitiatedquarterlydividendpaymentstoour
stockholdersin2004.In2004,theCompanydeclaredthree
cashdividends of $0.10 per shareofCommonStock. In
2005,theCompanydeclaredonecashdividendof$0.10per
shareofCommonStockandthreecashdividendsof$0.115
pershareofCommonStock.TheCompanyhaddividends
payableof$32millionand$29millionasofDecember31,
2005andDecember25,2004,respectively.
UndertheauthorityofourBoardofDirectors,werepur-
chasedsharesofourCommonStockinthefollowingshare
repurchase programs during 2005, 2004 and 2003. All
amountsexcludeapplicabletransactionfees.
SharesRepurchased DollarValueof
Program (thousands) SharesRepurchased
AuthorizationDate 2005 2004 2003 2005 2004 2003
November2005 644 — —$ 31 $ — $ —
May2005 10,140 — — 500 — —
January2005 9,963 — — 500 — —
May2004 534 5,953 — 25 275 —
November2003 — 8,072 169 — 294 6
November2002 — — 9,153 — — 272
Total 21,281 14,025 9,322$1,056 $569 $278
AsofDecember31,2005,wehave$469millionavailable
for future repurchases under our November 2005 share
repurchaseprogram.Basedonmarketconditionsandother
factors, additional repurchases may be made from time
totimeintheopenmarketorthroughprivatelynegotiated
transactionsatthediscretionoftheCompany.
Accumulated Other Comprehensive Income (Loss)
Comprehensive income is net income plus certain other
items that are recorded directly to shareholders’ equity.
Amounts included in other accumulated comprehensive
lossfortheCompany’sderivativeinstrumentsandminimum
pensionliabilityarerecordednetoftherelatedincometax
effects.Thefollowingtablegivesfurtherdetailregardingthe
compositionofotheraccumulatedcomprehensivelossat
December31,2005andDecember25,2004.
2005 2004
Foreigncurrencytranslation
adjustment $ (59) $ (34)
Minimumpensionliabilityadjustment,
netoftax (110) (95)
Unrealizedlossesonderivativeinstruments,
netoftax (1) (2)
Totalaccumulatedothercomprehensiveloss $(170) $(131)
19.INCOMETAXES
Thedetailsofourincometaxprovision(benefit)aresetforth
below.Amounts do notincludetheincometax benefitof
approximately$1milliononthe$2millioncumulativeeffect
adjustmentrecordedintheyearendedDecember27,2003
duetotheadoptionofSFAS143.
2005 2004 2003
Current: Federal $ 241 $ 78 $181
Foreign 113 79 114
State 11 (13) (4)
365 144 291
Deferred: Federal (66) 41 (23)
Foreign (20) 67 (16)
State (15) 34 16
(101) 142 (23)
$ 264 $286 $268
Included inthefederal taxprovisionabove for2005and
2004isapproximately$20millioncurrenttaxand$6million
deferred tax, respectively, provided on $500million of
earningsinourforeigninvestmentswhichwerepatriatedto
theU.S.in2005.Wemadethedeterminationtorepatriate
suchearningsastheresultofTheAmericanJobsCreationAct
of2004whichbecamelawonOctober22,2004(the“Act”).
TheActallowedadividendsreceiveddeductionof85%of
repatriatedqualifiedforeignearningsinfiscalyear2005.
Taxespayablewerereducedby$94million,$102million
and$26millionin2005,2004and2003,respectively,asa
resultofstockoptionexercises.
74. | Yum!Brands,Inc.