[ X
]
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ANNUAL
REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
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A.
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FULL
TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF
THE ISSUER
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NAMED
BELOW:
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B.
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NAME
OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND
THE
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ADDRESS
OF ITS PRINCIPAL EXECUTIVE OFFICE:
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Page
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Report
of Independent Registered Public Accounting Firm
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1
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Statements
of Net Assets Available for Benefits as of December 31, 2008
and
September
30, 2007
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2
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Statements
of Changes in Net Assets Available for Benefits for the Year ended
December 31, 2008 and the Transition Period from October 1, 2007 through
December 31, 2007
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3
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Notes
to Financial Statements
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4
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Schedule
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Schedule
H, Line 4i – Schedule of Assets (Held at End of Year) – December 31,
2008
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14
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YUM!
BRANDS 401(k) PLAN
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||||||
Statements
of Net Assets Available for Benefits
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||||||
December
31, 2008 and September 30, 2007
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||||||
(In
thousands)
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||||||
December
31, 2008
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September
30, 2007
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|||||
Assets:
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||||||
Investments:
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||||||
Investments,
at fair value:
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||||||
YUM!
Stock Fund
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$
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167,932
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$
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189,566
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||
Investment
in common/commingled trusts
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195,466
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242,762
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||||
Self-directed
brokerage
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4,565
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7,123
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||||
Total
investments
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367,963
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439,451
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||||
Receivables:
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||||||
Participant
loans
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15,438
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15,151
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||||
Participants’
contributions
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278
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301
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||||
Employer
contributions
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224
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176
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||||
Interest
and dividends
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140
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162
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||||
Total
receivables
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16,080
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15,790
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||||
Cash
and cash equivalents
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3,155
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3,013
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||||
Total
assets
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387,198
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458,254
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||||
Liabilities:
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||||||
Other
liabilities
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(509)
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(48)
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||||
Total
liabilities
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(509)
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(48)
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||||
Net
assets available for benefits at fair value
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$
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386,689
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$
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458,206
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||
Adjustment
from fair value to contract value for fully benefit-responsive investment
contracts
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5,408
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1,000
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||||
Net
assets available for benefits
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$
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392,097
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$
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459,206
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||
See
accompanying notes to financial statements.
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||||||
YUM!
BRANDS 401(k) PLAN
|
||||||
Statements
of Changes in Net Assets Available for Benefits
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||||||
For
the Year ended December 31, 2008 and the Transition Period
from
October
1, 2007 through December 31, 2007
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||||||
(In
thousands)
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||||||
Year
Ended
December
31, 2008
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Transition
Period from
October
1, 2007 through
December
31, 2007
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|||||
Investment
(loss) income:
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||||||
Net
(depreciation) appreciation in fair value of investments
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$
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(91,912)
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$
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20,956
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||
Interest
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1,309
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371
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||||
Dividends
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3,695
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837
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||||
Other
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(2,322)
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(45)
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||||
(89,230)
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22,119
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|||||
Less
investment expenses
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(558)
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(112)
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||||
Total
investment (loss) income
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(89,788)
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22,007
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||||
Contributions:
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||||||
Participant
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31,262
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7,267
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||||
Employer
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16,537
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3,101
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||||
Total
contributions
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47,799
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10,368
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||||
Deductions
from net assets attributed to:
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||||||
Benefits
paid to participants
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(46,741)
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(10,754)
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||||
Net
(decrease) increase in net assets
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(88,730)
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21,621
|
||||
Net
assets available for benefits:
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||||||
Beginning
of period
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480,827
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459,206
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||||
End
of period
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$
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392,097
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$
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480,827
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||
See
accompanying notes to financial statements.
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(1)
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Summary
Plan Description
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(a)
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General
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(b)
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Contributions
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(c)
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Investment
Options
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YUM!
Stock Fund
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Stable
Value Fund
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Large
Company Index Fund
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Bond
Market Index Fund
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Mid-sized
Company Index Fund
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Small
Company Index Fund
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(d)
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Participants
Accounts
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(e)
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Participant
Loans
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(f)
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Vesting
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(g)
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Payment
of Benefits
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(h)
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Termination
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(i)
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Recently
Adopted Accounting Standards
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(2)
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Summary
of Accounting Policies
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(a)
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Basis
of Accounting
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(b)
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Use
of Estimates
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(c)
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Investment
Valuation and Income Recognition
|
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(d)
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Participant
Loan Valuation
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(e)
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Payment
of Benefits
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(f)
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Administrative
Costs
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(3)
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Investments
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December
31, 2008
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September
30, 2007
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|||||
YUM!
Stock Fund
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$
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167,932
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$
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189,566
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||
Stable
Value Fund
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55,690
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38,777
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||||
Large
Company Index Fund
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45,734
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72,838
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||||
Bond
Market Index Fund
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34,643
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29,716
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||||
Mid-sized
Company Index Fund
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23,772
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39,695
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||||
International
Index Fund
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20,245
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36,325
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||||
Small
Company Index Fund
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15,382
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25,411
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Transition
Period
from
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||||||
October
1, 2007
|
||||||
Year
Ended
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through
|
|||||
December
31, 2008
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December
31, 2007
|
|||||
YUM!
Stock Fund
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$
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(36,280)
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$
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24,841
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Investment
in common/commingled trusts
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(55,632)
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(3,885)
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||||
$
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(91,912)
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$
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20,956
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(4)
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Fair
Value of Financial Investments, Carried at Fair
Value
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Level
1
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Level
2
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Level
3
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Total
Fair Value
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||||||||
YUM!
stock fund
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$
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167,932
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$
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-
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$
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-
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$
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167,932
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Common/commingled
trusts
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-
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195,466
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-
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195,466
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|||||||
Self-directed
brokerage account:
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|||||||||||
Common
stock
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2,248
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-
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-
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2,248
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|||||||
Mutual
funds
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-
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2,252
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-
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2,252
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|||||||
Preferred
stock
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4
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-
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-
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4
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|||||||
Limited
partnership units
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61
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-
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-
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61
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|||||||
2,313
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2,252
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-
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4,565
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||||||||
Total
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$
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170,245
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$
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197,718
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$
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-
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$
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367,963
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(5)
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Tax
Status
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(6)
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Reconciliation
of Financial Statements to
Form 5500
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December
31, 2008
|
September
30, 2007
|
|||||
Net
assets available for benefits per the financial statements
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$
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392,097
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$
|
459,206
|
||
Less
benefits payable at end of period
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(210)
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(261)
|
||||
Less
adjustment from fair value to contract value for fully benefit-responsive
investment contracts
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(5,408)
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(1,000)
|
||||
Net
assets available for benefits per the Plan’s Form 5500
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$
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386,479
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$
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457,945
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Transition
Period
|
||||||
from
October
1, 2007
|
||||||
Year
Ended
|
through
|
|||||
December
31, 2008
|
December
31, 2007
|
|||||
Benefit
payments per the financial statements
|
$
|
46,741
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$
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10,754
|
||
Less
benefits payable at beginning of period
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(226)
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(261)
|
||||
Add
benefits payable at end of period
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210
|
226
|
||||
Benefit
payments per the Plan’s Form 5500
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$
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46,725
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$
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10,719
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Transition
Period
|
||||||
from
October
1, 2007
|
||||||
Year
Ended
|
through
|
|||||
December
31, 2008
|
December
31, 2007
|
|||||
Total
investment (loss) income per the financial statements
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$
|
(89,788)
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$
|
22,007
|
||
Less
adjustment from fair value to contract value for fully benefit-responsive
investment contracts
|
(4,417)
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9
|
||||
Total
investment (loss) income per the Plan’s Form 5500
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$
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(94,205)
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$
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22,016
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(7)
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Related
Party Transactions
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(8)
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Risks
and Uncertainties
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EIN:
13-3951308
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|||||
PN:
003
|
|||||
Schedule
H, Line 4i – Schedule of Assets (Held at End of Year)
|
|||||
December
31, 2008
|
|||||
Identity
of issue,
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Description
|
||||
borrower,
or similar party
|
of
interest
|
Fair
value
|
|||
YUM!
Stock Fund 1
|
5,331,168
|
shares
|
$
|
167,931,802
|
|
Common/commingled
trusts:
|
|||||
Stable
Value Fund 1
|
55,689,807
|
shares
|
55,689,807
|
||
Large
Company Index Fund 1
|
255,586
|
shares
|
45,733,554
|
||
Bond
Market Index Fund 1
|
1,780,781
|
shares
|
34,643,313
|
||
Mid-Sized
Company Index Fund 1
|
1,222,607
|
shares
|
23,772,365
|
||
Small
Company Index Fund 1
|
915,404
|
shares
|
15,381,540
|
||
International
Index Fund 1
|
1,508,137
|
shares
|
20,245,227
|
||
Total
|
195,465,806
|
||||
Self-directed
Brokerage Account
1
|
Various
|
4,565,029
|
|||
Loans
to participants 1
|
Interest
rates ranging
|
15,438,598
|
|||
from
4.00% to 9.25%
|
|||||
Government
STIF 1,
2
|
3,026,040
|
shares
|
3,026,040
|
||
Cash
and cash equivalents 1
|
129,003
|
||||
Total
cash and cash equivalents
|
3,155,043
|
||||
Total
|
$
|
386,556,278
|
|||
1 Party-in-interest
as defined by ERISA.
|
|||||
2
The Government STIF consists of cash equivalent investments and is
classified as cash and cash
|
|||||
equivalents
in the Statement of Net Assets Available for Benefits.
|
|||||
YUM!
BRANDS 401(k) PLAN
|
|||
By:
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/s/
Robin Lancaster
|
||
Robin
Lancaster on behalf of YUM! Brands, Inc., The Plan
Administrator
|
|||
Date: June
29, 2009
|