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Yum! Brands serves up lump sums to some former employees

Yum Brands

Yum! Brands Inc., Louisville, Ky., on Tuesday announced it will offer a lump-sum payout to “certain former employees” participating in its U.S. defined benefit pension plans, according to an 8-K filing with the SEC.

The offer is part of the company's “effort to reduce our ongoing volatility and administration expense,” according to the filing.

The company expects to record a pretax non-cash charge of $25 million to $75 million before the end of 2012, the exact amount of which depends on the number of participants accepting the offer.

As of Dec. 31, the U.S. defined benefit plans had a fair value of plan assets of $998 million with projected benefit obligations of $1.381 billion, for a funding ratio of 72.3%.

Yum! Brands spokeswoman Amy Sherwood was not immediately available for comment.