YUM BRANDS INC, 10-Q filed on 5/5/2021
Quarterly Report
v3.21.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2021
Apr. 29, 2021
Cover [Abstract]    
Document Quarterly Report true  
Entity Incorporation, State or Country Code NC  
Entity Tax Identification Number 13-3951308  
Trading Symbol YUM  
Security Exchange Name NYSE  
Entity Address, Address Line One 1441 Gardiner Lane,  
Entity Address, City or Town Louisville,  
Entity Address, State or Province KY  
Entity Address, Postal Zip Code 40213  
City Area Code (502)  
Local Phone Number 874-8300  
Document Transition Report false  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Registrant Name YUM! BRANDS, INC.  
Entity Central Index Key 0001041061  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding Common Stock, no par value  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2021  
Entity File Number 1-13163  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   297,901,153
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenues    
Total Revenues $ 1,486 $ 1,263
Costs and Expenses, Net    
Company restaurant expenses 392 298
General and Administrative Expense 206 208
Franchise and property expenses 23 58
Franchise advertising and other services expense 343 310
Refranchising (gain) loss (15) (13)
Other (income) expense (6) 152
Total costs and expenses, net 943 1,013
Operating Profit 543 250
Investment (income) expense, net 0 34
Other pension (income) expense 3 3
Interest expense, net 131 118
Income Before Income Taxes 409 95
Income tax provision 83 12
Net Income $ 326 $ 83
Basic Earnings Per Common Share $ 1.09 $ 0.28
Diluted Earnings Per Common Share 1.07 0.27
Dividends Declared Per Common Share $ 0.50 $ 0.47
Product [Member]    
Revenues    
Revenues $ 476 $ 355
Franchise [Member]    
Revenues    
Revenues 658 596
Advertising [Member]    
Revenues    
Revenues $ 352 $ 312
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net Income $ 326 $ 83
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature    
Adjustments and gains (losses) arising during the period 3 (102)
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, before tax 3 (102)
Tax (expense) benefit 0 0
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, net of tax 3 (102)
Changes in pension and post-retirement benefits    
Unrealized gains (losses) arising during period, before Tax 47 0
Reclassification of (gains) losses into Net Income 7 5
Changes in pension and post-retirement benefits, before Tax 54 5
Tax (expense) benefit (13) (1)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax, Total 41 4
Changes in derivative instruments    
Unrealized gains (losses) arising during the period 24 (77)
Reclassification of (gains) losses into Net Income 4 (6)
Changes in derivative instruments, before Tax 28 (83)
Tax (expense) benefit (7) 20
Changes in derivative instruments, net of tax 21 (63)
Other comprehensive income (loss), net of tax 65 (161)
Comprehensive Income (Loss) $ 391 $ (78)
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash Flows - Operating Activities    
Net Income $ 326 $ 83
Depreciation and amortization 39 27
Impairment and closure expense [1] 1 140
Refranchising (gain) loss (15) (13)
Investment (income) expense, net 0 34
Contributions to defined benefit pension plans (2) (1)
Deferred income taxes 14 (31)
Share-based compensation expense 21 18
Changes in accounts and notes receivable 27 25
Changes in prepaid expenses and other current assets (9) (17)
Changes in accounts payable and other current liabilities (123) (51)
Changes in income taxes payable 5 (11)
Other, net 40 35
Net Cash Provided by Operating Activities 324 238
Cash Flows - Investing Activities    
Capital spending (45) (35)
Acquisition of The Habit Restaurants, Inc., net of cash acquired 0 (408)
Proceeds from refranchising of restaurants 20 2
Other, net 39 0
Net Cash Provided by (Used in) Investing Activities 14 (441)
Cash Flows - Financing Activities    
Proceeds from long-term debt 800 0
Repayments of long-term debt (912) (20)
Revolving credit facilities, three months or less, net 0 950
Short-term borrowings by original maturity    
More than three months - proceeds 0 66
More than three months - payments 0 (44)
Three months or less, net 0 0
Repurchase shares of Common Stock (286) 0
Dividends paid on Common Stock (150) (141)
Debt Issuance Costs 5 0
Other, net (10) (13)
Net Cash Provided by (Used in) Financing Activities (563) 798
Effect of Exchange Rates on Cash and Cash Equivalents 3 (53)
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (222) 542
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period 1,024 768
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period $ 802 $ 1,310
[1] The quarter ended March 31, 2020, includes a charge of $139 million related to the impairment of Habit Burger Grill goodwill. See Note 2.
v3.21.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
shares in Millions, $ in Millions
Mar. 31, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 561 $ 730
Accounts and notes receivable, net 508 534
Prepaid expenses and other current assets 385 425
Total Current Assets 1,454 1,689
Property, plant and equipment, net 1,215 1,235
Goodwill 597 597
Intangible assets, net 354 343
Other assets 1,416 1,435
Deferred Income Taxes 514 553
Total Assets 5,550 5,852
Current Liabilities    
Accounts payable and other current liabilities 1,061 1,189
Income taxes payable 24 33
Short-term borrowings 394 453
Total Current Liabilities 1,479 1,675
Long-term debt 10,229 10,272
Other liabilities and deferred credits 1,754 1,796
Total Liabilities 13,462 13,743
Shareholders' Equity    
Common Stock, no par value, 750 shares authorized; 298 shares issued in 2021 and 300 issued in 2020 0 0
Accumulated Deficit (7,566) (7,480)
Accumulated other comprehensive loss (346) (411)
Total Shareholders' Deficit (7,912) (7,891)
Total Liabilities and Shareholders' Deficit $ 5,550 $ 5,852
Common Stock, No Par Value $ 0 $ 0
Common Stock, Shares Authorized 750 750
Common Stock, Shares, Issued 298 300
v3.21.1
CONDENSED STATEMENT OF SHAREHOLDERS EQUITY Statement - USD ($)
shares in Thousands, $ in Millions
Total
Accounting Standards Update 2016-13 [Member]
Issued Common Stock
Accumulated Deficit
Accumulated Deficit
Accounting Standards Update 2016-13 [Member]
Accumulated Other Comprehensive Loss
Total Shareholders' Deficit $ (8,016)   $ 0 $ (7,628)   $ (388)
Issued Common Stock, Shares     300,000      
Net Income 83     83    
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (102)          
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature           (102)
Pension and post-retirement benefit plans, net of tax 4         4
Changes in derivative instruments, net of tax (63)         (63)
Comprehensive Income (Loss) (78)          
Dividends declared (142)     (142)    
Repurchase of shares of Common Stock, shares     0      
Repurchase of shares of Common Stock, value 0          
Employee Stock Option and SARs Exercises, Shares     1,000      
Employee Stock Option and SARs Exercises, Value (13)   $ (13)      
Share-based compensation events (28)   (28)      
Tax (expense) benefit 1          
Change in Derivatives Instruments, Tax 20          
Total Shareholders' Deficit (8,229) $ (8) $ 15 (7,695)   (549)
Issued Common Stock, Shares     301,000      
Accumulated Deficit         $ (8)  
Total Shareholders' Deficit (7,891)   $ 0 (7,480)   (411)
Issued Common Stock, Shares     300,000      
Accumulated Deficit (7,480)          
Net Income 326     326    
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature 3          
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature           3
Pension and post-retirement benefit plans, net of tax 41         41
Changes in derivative instruments, net of tax 21         21
Comprehensive Income (Loss) 391          
Dividends declared (151)     (151)    
Repurchase of shares of Common Stock, shares [1]     (2,599)      
Repurchase of shares of Common Stock, value (275) [1]   $ (14) (261)    
Employee Stock Option and SARs Exercises, Shares     1,000      
Employee Stock Option and SARs Exercises, Value (10)   $ (10)      
Share-based compensation events (24)   (24)      
Tax (expense) benefit 13          
Change in Derivatives Instruments, Tax 7          
Total Shareholders' Deficit (7,912)   $ 0 $ (7,566)   $ (346)
Issued Common Stock, Shares     298,000      
Accumulated Deficit $ (7,566)          
[1] (a) Excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but cash settlement dates subsequent to December 31, 2020.
v3.21.1
Financial Statement Presentation
 3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Presentation Financial Statement Presentation
We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements.  Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, (“2020 Form 10-K”).  

Yum! Brands, Inc. and its Subsidiaries (collectively referred to herein as the “Company,” “YUM,” “we,” “us” or “our”) franchise or operate a system of over 50,000 restaurants in more than 150 countries and territories.  As of March 31, 2021, 98% of these restaurants were owned and operated by franchisees.  The Company’s KFC, Pizza Hut and Taco Bell brands are global leaders of the chicken, pizza and Mexican-style food categories, respectively. The Habit Burger Grill, a concept we acquired on March 18, 2020, is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more.

As of March 31, 2021, YUM consisted of four operating segments:  

•The KFC Division which includes our worldwide operations of the KFC concept
•The Pizza Hut Division which includes our worldwide operations of the Pizza Hut concept
•The Taco Bell Division which includes our worldwide operations of the Taco Bell concept
•The Habit Burger Grill Division which includes our worldwide operations of the Habit Burger Grill concept

YUM's fiscal year begins on January 1 and ends December 31 of each year, with each quarter comprised of three months. The majority of our U.S. subsidiaries and certain international subsidiaries operate on a weekly periodic calendar where the first three quarters of each fiscal year consists of 12 weeks and the fourth quarter consists of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks. Our remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates. Our Habit Burger Grill Division operates on a weekly periodic calendar where each quarter consists of 13 weeks, except in fiscal years with 53 weeks when the fourth quarter consists of 14 weeks.

Our preparation of the accompanying Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.

The accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2020 Form 10-K, the results of the interim periods presented. Our results of operations, comprehensive income, cash flows and changes in shareholders' deficit for these interim periods are not necessarily indicative of the results to be expected for the full year.

Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate.
v3.21.1
Habit Burger Acquisition (Notes)
 3 Months Ended
Mar. 31, 2021
Business Acquisition [Line Items]  
Business Combination Disclosure [Text Block] Habit Burger Grill Acquisition
On March 18, 2020, we completed the acquisition of all of the issued and outstanding common shares of The Habit Restaurants, Inc. As of the date of acquisition, The Habit Restaurants, Inc. operated 245 company-owned and 31 franchised Habit Burger Grill restaurants across the U.S. and in China, offering a flavor-forward variety of made-to-order items chargrilled over an open flame. We expect Habit Burger Grill to benefit from the global scale and resources of YUM and that the acquisition will accelerate and diversify YUM's growth.

Total cash consideration paid in connection with the acquisition was $408 million, net of acquired cash of $20 million. The acquisition was accounted for as a business combination using the acquisition method of accounting. During the quarter ended March 31, 2021, we finalized our estimate of the fair value of the net assets acquired, which resulted in goodwill being reduced by $15 million compared to the initial fair value estimate recorded in the quarter ended March 31, 2020 ($2 million of this reduction was recorded in the quarter ended March 31, 2021). The final allocation of consideration to the net tangible and intangible assets acquired upon the March 18, 2020 acquisition is presented in the table below.
Total Current Assets$11 
Property, plant and equipment, net111 
Habit Burger Grill brand (included in Intangible assets, net)96 
Operating lease right-of-use assets (included in Other assets)196 
Other assets28 
Total Assets442 
Total Current Liabilities(68)
Operating lease liabilities (included in Other liabilities and deferred credits)(170)
Total Liabilities(238)
Total identifiable net assets204 
Goodwill204 
Net consideration transferred$408 

During the first quarter of 2020, the operations of substantially all Habit Burger Grill restaurants were impacted by COVID-19. As a result, we performed an interim impairment test of the Habit Burger Grill reporting unit goodwill as of March 31, 2020. This test of impairment included comparing the estimated fair value of the Habit Burger Grill reporting unit to its carrying value, including goodwill, as originally determined through our preliminary purchase price allocation. The fair value estimate of the Habit Burger Grill reporting unit was based on the estimated price a willing buyer would pay for the reporting unit and was determined using an income approach through a discounted cash flow analysis using unobservable inputs (Level 3). The most impactful of these inputs included future average unit volumes of Habit Burger Grill restaurants as well as restaurant unit counts. The fair value was determined based upon a probability-weighted average of three scenarios, which included assumed recovery of Habit Burger Grill average unit volumes to a pre—COVID-19 level over periods ranging from the beginning of 2021 to the end of 2022. Factors impacting restaurant unit counts were near-term unit closures as the result of COVID-19 as well as the pace of expected new unit development. Unit counts assumed were correlated with the expected recoveries in average unit volumes. Based upon this fair value estimate, we determined that the carrying value of our Habit Burger Grill reporting unit exceeded its fair value. As a result, during the first quarter of 2020 we recorded a goodwill impairment charge of $139 million to Other (income) expense and a corresponding income tax benefit of $32 million. As we continued to refine our preliminary purchase price allocation in the quarter ended September 30, 2020, the impairment charge was adjusted upward by $5 million, which resulted in a corresponding income tax benefit of $1 million. Subsequent to these 2020 goodwill impairment charges and the finalization of the allocation of consideration to the net assets acquired (described above), the Habit Burger Grill reporting unit goodwill is approximately $60 million as of March 31, 2021.
v3.21.1
Earnings Per Common Share ("EPS")
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS) Earnings Per Common Share (“EPS”)
 Quarter ended
 20212020
Net Income$326 $83 
Weighted-average common shares outstanding (for basic calculation)301 302 
Effect of dilutive share-based employee compensation4 5 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)305 307 
Basic EPS$1.09 $0.28 
Diluted EPS$1.07 $0.27 
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
2.3 4.2 

(a)These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.21.1
Shareholders' Deficit
 3 Months Ended
Mar. 31, 2021
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholder's Deficit
Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the quarters ended March 31, 2021 and 2020 as indicated below.  All amounts exclude applicable transaction fees. 

 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased		Remaining Dollar Value of Shares that may be Repurchased
Authorization Date20212020202120202021
November 20192,599 
(a)
— $275 
(a)
$— $1,475

(a) Excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but cash settlement dates subsequent to December 31, 2020.

Changes in Accumulated other comprehensive loss ("AOCI") are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term NaturePension and Post-Retirement BenefitsDerivative InstrumentsTotal
Balance at December 31, 2020, net of tax$(182)$(96)$(133)$(411)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax
3 36 18 57 
(Gains) losses reclassified from AOCI, net of tax
— 5 3 8 
3 41 21 65 
Balance at March 31, 2021, net of tax$(179)$(55)$(112)$(346)
v3.21.1
Other (Income) Expense
 3 Months Ended
Mar. 31, 2021
Other Income and Expenses [Abstract]  
Other (Income) Expense Other (Income) Expense
Quarter ended
 3/31/20213/31/2020
Foreign exchange net (gain) loss and other(a)
$(7)$12 
Impairment and closure expense(b)
1 140 
Other (income) expense$(6)$152 

(a)    The quarter ended March 31, 2021, includes a gain of $6 million associated with the sale of property.
(b)    The quarter ended March 31, 2020, includes a charge of $139 million related to the impairment of Habit Burger Grill goodwill. See Note 2.
v3.21.1
Supplemental Balance Sheet Information
 3 Months Ended
Mar. 31, 2021
Supplemental Balance Sheet Information Disclosure [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information
Accounts and Notes Receivable, net

The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise and lease agreements.  Trade receivables consisting of royalties from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable, net in our Condensed Consolidated Balance Sheets.  Accounts and notes receivable, net also includes receivables generated from advertising cooperatives that we consolidate.
3/31/202112/31/2020
Accounts and notes receivable, gross$545 $579 
Allowance for doubtful accounts(37)(45)
Accounts and notes receivable, net$508 $534 

Property, Plant and Equipment, net
3/31/202112/31/2020
Property, plant and equipment, gross$2,466 $2,465 
Accumulated depreciation and amortization(1,251)(1,230)
Property, plant and equipment, net$1,215 $1,235 

Assets held-for-sale totaled $17 million and $7 million, respectively, as of March 31, 2021 and December 31, 2020, and are included in Prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets.

Other Assets3/31/202112/31/2020
Operating lease right-of-use assets(a)
$840 $851 
Franchise incentives171 163 
Other405 421 
Other assets$1,416 $1,435 

(a)    Non-current operating lease liabilities of $816 million and $823 million as of March 31, 2021 and December 31, 2020, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.

Reconciliation of Cash and Cash Equivalents for Condensed Consolidated Statements of Cash Flows
3/31/202112/31/2020
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets$561 $730 
Restricted cash included in Prepaid expenses and other current assets(a)
207 258 
Restricted cash and restricted cash equivalents included in Other assets(b)
34 36 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows$802 $1,024 

(a)    Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and Taco Bell Securitization interest reserves.

(b)    Primarily trust accounts related to our self-insurance program.
v3.21.1
Income Taxes
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 Quarter ended
 20212020
Income tax provision$83 $12 
Effective tax rate20.2 %12.5 %

The increase in our effective tax rate for the first quarter 2021 as compared with the first quarter 2020 is primarily due to a reduction in the rate impact of the benefit associated with excess tax benefits on share-based compensation due to pre-tax earnings being significantly lower in the first quarter 2020 as compared to the first quarter 2021.
v3.21.1
Revenue Recognition Accounting Policy
 3 Months Ended
Mar. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
Quarter ended 3/31/2021
KFC DivisionPizza Hut DivisionTaco Bell DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$14 $5 $208 $121 $348 
Franchise revenues44 67 144 1 256 
Property revenues4 — 10 — 14 
Franchise contributions for advertising and other services6 79 117 — 202 
China
Franchise revenues62 16 — — 78 
Other
Company sales119 9 — — 128 
Franchise revenues230 57 8 — 295 
Property revenues14 1 — — 15 
Franchise contributions for advertising and other services132 17 1 — 150 
$625 $251 $488 $122 $1,486 
Quarter ended 3/31/2020
KFC DivisionPizza Hut DivisionTaco Bell DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$16 $5 $198 $9 $228 
Franchise revenues38 62 131 — 231 
Property revenues4 1 10 — 15 
Franchise contributions for advertising and other services4 70 107 — 181 
China
Franchise revenues47 10 — — 57 
Other
Company sales114 13 — — 127 
Franchise revenues212 59 7 — 278 
Property revenues14 1 — — 15 
Franchise contributions for advertising and other services117 14 — — 131 
$566 $235 $453 $9 $1,263 
Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees. A summary of significant changes to the contract liability balance during 2021 is presented below.

Deferred Franchise Fees
Balance at December 31, 2020$415 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(17)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period12 
Other(a)
(3)
Balance at March 31, 2021$407 

(a)    Primarily includes impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$64 
1 - 2 years59 
2 - 3 years54 
3 - 4 years49 
4 - 5 years43 
Thereafter138 
Total$407 
 [1]
[1] (a)    Primarily includes impact of foreign currency translation.
v3.21.1
Reportable Operating Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
We identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
 Quarter ended
Revenues20212020
KFC Division$625 $566 
Pizza Hut Division251 235 
Taco Bell Division488 453 
Habit Burger Grill Division122 9 
 $1,486 $1,263 

 Quarter ended
Operating Profit 20212020
KFC Division$300 $224 
Pizza Hut Division102 76 
Taco Bell Division178 144 
Habit Burger Grill Division— (2)
Corporate and unallocated G&A expenses(50)(50)
Unallocated Company restaurant expenses— (1)
Unallocated Franchise and property expenses— (2)
Unallocated Refranchising gain (loss)15 13 
Unallocated Other income (expense) (See Note 5)
(2)(152)
Operating Profit$543 $250 
Investment income (expense), net(a)
— (34)
Other pension income (expense) (See Note 10)(3)(3)
Interest expense, net(b)
(131)(118)
Income before income taxes$409 $95 

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Includes changes in the value of Grubhub, Inc. ("Grubhub") common stock and other investments. For the quarter ended March 31, 2020, we recognized investment expense of $22 million related to changes in fair value of our investment in Grubhub common stock. In the quarter ended September 30, 2020, we sold our investment in Grubhub.

(b)Includes fees expensed and unamortized debt issuance costs written off totaling $12 million related to the refinancing of the Credit Agreement during the quarter ended March 31, 2021 (see Note 11).
v3.21.1
Pension Benefits
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Pension Benefits Pension BenefitsWe sponsor qualified and supplemental (non-qualified) noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees.  The most significant of these plans, the YUM Retirement Plan (the “Plan”), is funded. We fund our other U.S. plan as benefits are paid.  The Plan and our non-qualified plan in the U.S. are closed to new salaried participants.  
The components of net periodic benefit cost associated with our U.S. pension plans are as follows:

 Quarter ended
 20212020
Service cost$2 $2 
Interest cost8 9 
Expected return on plan assets(11)(11)
Amortization of net loss6 4 
Amortization of prior service cost1 1 
Net periodic benefit cost$6 $5 
v3.21.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
We use derivative instruments to manage certain of our market risks related to fluctuations in interest rates and foreign currency exchange rates.

Interest Rate Swaps

We have entered into interest rate swaps, with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments primarily under our Term Loan B Facility. At both March 31, 2021 and December 31, 2020, our interest rate swaps expiring in July 2021 had notional amounts of $1.55 billion and our interest rate swaps expiring in March 2025 had notional amounts of $1.5 billion. These interest rate swaps are designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in expected future interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of March 31, 2021 or December 31, 2020.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Condensed Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through March 31, 2021, the swaps were highly effective cash flow hedges.

Foreign Currency Contracts

We have entered into foreign currency forward and swap contracts with the objective of reducing our exposure to earnings volatility arising from foreign currency fluctuations associated with certain foreign currency denominated intercompany receivables and payables. The notional amount, maturity date, and currency of these contracts match those of the underlying intercompany receivables or payables. Our foreign currency contracts are designated cash flow hedges as the future cash flows of the contracts are expected to offset changes in intercompany receivables and payables due to foreign currency exchange rate fluctuations.

Gains or losses on the foreign currency contracts are reported as a component of AOCI. Amounts are reclassified from AOCI each quarter to offset foreign currency transaction gains or losses recorded within Other (income) expense when the related intercompany receivables and payables affect earnings due to their functional currency remeasurements. Through March 31, 2021, all foreign currency contracts related to intercompany receivables and payables were highly effective cash flow hedges.

As of March 31, 2021 and December 31, 2020, outstanding foreign currency contracts related to intercompany receivables and payables had total notional amounts of $34 million and $39 million, respectively. These foreign currency forward contracts all have durations that expire in 2021.
As a result of the use of interest rate swaps and foreign currency contracts, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with major financial institutions carefully selected based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At March 31, 2021, all of the counterparties to our interest rate swaps and foreign currency contracts had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

Gains and losses on derivative instruments designated as cash flow hedges recognized in OCI and reclassifications from AOCI into Net Income:
 Quarter ended
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 2021 2020 2021 2020
Interest rate swaps$24 $(83)$4 $2 
Foreign currency contracts— 6 — (8)
Income tax benefit/(expense)(6)19 (1)1 

As of March 31, 2021, the estimated net loss included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is $34 million, based on current LIBOR interest rates.

Total Return Swaps

We have entered into total return swap derivative contracts, with the objective of reducing our exposure to market-driven changes in certain of the liabilities associated with compensation deferrals into our Executive Income Deferral ("EID") plan. While these total return swaps represent economic hedges, we have not designated them as hedges for accounting purposes. As a result, the changes in the fair value of these derivatives are recognized immediately in earnings within General and administrative expenses in our Condensed Consolidated Statements of Income largely offsetting the changes in the associated EID liabilities.

See Note 13 for the fair value of our derivative assets and liabilities.
v3.21.1
Fair Value Disclosures
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Disclosures
As of March 31, 2021, the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, short-term borrowings and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair value of notes receivable, net of allowances, and lease guarantees, less reserves for expected losses, approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

3/31/202112/31/2020
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
Securitization Notes(a)
$2,861 $2,999 $2,869 $3,015 
Subsidiary Senior Unsecured Notes(b)
1,800 1,901 1,800 1,890 
Term Loan A Facility(b)
750 727 431 428 
Term Loan B Facility(b)
1,500 1,504 1,916 1,907 
YUM Senior Unsecured Notes(b)
3,725 3,952 3,725 4,094 
(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
(b)    We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates.

Recurring Fair Value Measurements

The Company has interest rate swaps, foreign currency contracts and other investments, all of which are required to be measured at fair value on a recurring basis (See Note 12 for discussion regarding derivative instruments). The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.  
Fair Value
Condensed Consolidated Balance SheetLevel3/31/202112/31/2020
Assets
Foreign Currency Contracts
Prepaid expenses and other current assets2 $1 $1 
Other Investments
Other assets1 2 45 
Liabilities
Interest Rate Swaps
Accounts payable and other current liabilities2 35 28 
Interest Rate Swaps
Other liabilities and deferred credits2 92 127 

The fair value of the Company’s interest rate swaps and foreign currency contracts were determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the duration based on observable inputs. The other investments primarily include investments in mutual funds, which were historically used to offset fluctuations for a portion of our EID liabilities and whose fair values were determined based on the closing market prices of the respective mutual funds as of March 31, 2021 and December 31, 2020. In the quarter ended March 31, 2021, upon entering into the total return swaps as disclosed in Note 13, we sold the majority of these other investments and received cash proceeds of $44 million. These proceeds have been classified within Other, net cash flows from investing activities within our Condensed Consolidated Statements of Cash Flows.
v3.21.1
Contingencies
 3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Guarantees, Commitments and Contingencies Contingencies
Lease Guarantees

As a result of having assigned our interest in obligations under real estate leases as a condition to the refranchising of certain Company-owned restaurants, and guaranteeing certain other leases, we are frequently secondarily liable on lease agreements.  These leases have varying terms, the latest of which expires in 2065.  As of March 31, 2021, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $425 million. The present value of these potential payments discounted at our pre-tax cost of debt at March 31, 2021, was approximately $350 million.  Our franchisees are the primary lessees under the vast majority of these leases.  We generally have cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of non-payment under the lease.  We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases, although such risk may not be reduced in the context of a bankruptcy or other similar restructuring of a large franchisee or group of franchisees.  The liability recorded for our expected losses under such leases as of March 31, 2021, was not material.

Legal Proceedings

We are subject to various claims and contingencies related to lawsuits, real estate, environmental and other matters arising in the normal course of business. An accrual is recorded with respect to claims or contingencies for which a loss is determined to be probable and reasonably estimable.

Yum! Restaurants India Private Limited (“YRIPL”), a Yum subsidiary that operates KFC and Pizza Hut restaurants in India, is the subject of a regulatory enforcement action in India (the “Action”). The Action alleges, among other things, that KFC International Holdings, Inc. and Pizza Hut International failed to satisfy certain conditions imposed by the Secretariat for Industrial Approval in 1993 and 1994 when those companies were granted permission for foreign investment and operation in
India. The conditions at issue include an alleged minimum investment commitment and store build requirements as well as limitations on the remittance of fees outside of India.

The Action originated with a complaint and show cause notice filed in 2009 against YRIPL by the Deputy Director of the Directorate of Enforcement (“DOE”) of the Indian Ministry of Finance following an income tax audit for the years 2002 and 2003. The matter was argued at various hearings in 2015, but no order was issued. Following a change in the incumbent official holding the position of Special Director of DOE (the “Special Director”), the matter resumed in 2018 and several additional hearings were conducted.

On January 29, 2020, the Special Director issued an order imposing a penalty on YRIPL and certain former directors of approximately Indian Rupee 11 billion, or approximately $150 million. Of this amount, $145 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. The stay order remains in effect and the next hearing is scheduled for August 9, 2021. We deny liability and intend to continue vigorously defending this matter. We do not consider the risk of any significant loss arising from this order to be probable.

We are currently engaged in various other legal proceedings and have certain unresolved claims pending, the ultimate liability for which, if any, cannot be determined at this time. However, based upon consultation with legal counsel, we are of the opinion that such proceedings and claims are not expected to have a material adverse effect, individually or in the aggregate, on our Condensed Consolidated Financial Statements.
v3.21.1
Habit Burger Acquisition (Tables)
 3 Months Ended
Mar. 31, 2021
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
Total Current Assets$11 
Property, plant and equipment, net111 
Habit Burger Grill brand (included in Intangible assets, net)96 
Operating lease right-of-use assets (included in Other assets)196 
Other assets28 
Total Assets442 
Total Current Liabilities(68)
Operating lease liabilities (included in Other liabilities and deferred credits)(170)
Total Liabilities(238)
Total identifiable net assets204 
Goodwill204 
Net consideration transferred$408 
v3.21.1
Earnings Per Common Share ("EPS") Earnings Per Common Share ("EPS") (Tables)
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
 Quarter ended
 20212020
Net Income$326 $83 
Weighted-average common shares outstanding (for basic calculation)301 302 
Effect of dilutive share-based employee compensation4 5 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)305 307 
Basic EPS$1.09 $0.28 
Diluted EPS$1.07 $0.27 
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
2.3 4.2 

(a)These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.21.1
Shareholders' Deficit (Tables)
 3 Months Ended
Mar. 31, 2021
Stockholders' Equity Note [Abstract]  
Repurchase Of Shares Of Common Stock
 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased		Remaining Dollar Value of Shares that may be Repurchased
Authorization Date20212020202120202021
November 20192,599 
(a)
— $275 
(a)
$— $1,475

(a) Excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but cash settlement dates subsequent to December 31, 2020.
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in Accumulated other comprehensive loss ("AOCI") are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term NaturePension and Post-Retirement BenefitsDerivative InstrumentsTotal
Balance at December 31, 2020, net of tax$(182)$(96)$(133)$(411)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax
3 36 18 57 
(Gains) losses reclassified from AOCI, net of tax
— 5 3 8 
3 41 21 65 
Balance at March 31, 2021, net of tax$(179)$(55)$(112)$(346)
v3.21.1
Other Income and Expenses (Tables)
 3 Months Ended
Mar. 31, 2021
Other Income and Expenses [Abstract]  
Schedule of Other Operating Cost and Expense, by Component
Quarter ended
 3/31/20213/31/2020
Foreign exchange net (gain) loss and other(a)
$(7)$12 
Impairment and closure expense(b)
1 140 
Other (income) expense$(6)$152 

(a)    The quarter ended March 31, 2021, includes a gain of $6 million associated with the sale of property.
(b)    The quarter ended March 31, 2020, includes a charge of $139 million related to the impairment of Habit Burger Grill goodwill. See Note 2.
v3.21.1
Supplemental Balance Sheet Information (Tables)
 3 Months Ended
Mar. 31, 2021
Supplemental Balance Sheet Information Disclosure [Abstract]  
Accounts and Notes Receivable
3/31/202112/31/2020
Accounts and notes receivable, gross$545 $579 
Allowance for doubtful accounts(37)(45)
Accounts and notes receivable, net$508 $534 
Property, Plant and Equipment
3/31/202112/31/2020
Property, plant and equipment, gross$2,466 $2,465 
Accumulated depreciation and amortization(1,251)(1,230)
Property, plant and equipment, net$1,215 $1,235 
Schedule of Other Assets
Other Assets3/31/202112/31/2020
Operating lease right-of-use assets(a)
$840 $851 
Franchise incentives171 163 
Other405 421 
Other assets$1,416 $1,435 

(a)    Non-current operating lease liabilities of $816 million and $823 million as of March 31, 2021 and December 31, 2020, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.
Schedule of Cash and Cash Equivalents [Table Text Block]
3/31/202112/31/2020
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets$561 $730 
Restricted cash included in Prepaid expenses and other current assets(a)
207 258 
Restricted cash and restricted cash equivalents included in Other assets(b)
34 36 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows$802 $1,024 

(a)    Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and Taco Bell Securitization interest reserves.

(b)    Primarily trust accounts related to our self-insurance program.
v3.21.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Tax And Effective Tax Rate
 Quarter ended
 20212020
Income tax provision$83 $12 
Effective tax rate20.2 %12.5 %
v3.21.1
Revenue Recognition Accounting Policy (Tables)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenue Recognition and Deferred Revenue [Abstract]    
Disaggregation of Revenue [Table Text Block]
Quarter ended 3/31/2021
KFC DivisionPizza Hut DivisionTaco Bell DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$14 $5 $208 $121 $348 
Franchise revenues44 67 144 1 256 
Property revenues4 — 10 — 14 
Franchise contributions for advertising and other services6 79 117 — 202 
China
Franchise revenues62 16 — — 78 
Other
Company sales119 9 — — 128 
Franchise revenues230 57 8 — 295 
Property revenues14 1 — — 15 
Franchise contributions for advertising and other services132 17 1 — 150 
$625 $251 $488 $122 $1,486 
Quarter ended 3/31/2020
KFC DivisionPizza Hut DivisionTaco Bell DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$16 $5 $198 $9 $228 
Franchise revenues38 62 131 — 231 
Property revenues4 1 10 — 15 
Franchise contributions for advertising and other services4 70 107 — 181 
China
Franchise revenues47 10 — — 57 
Other
Company sales114 13 — — 127 
Franchise revenues212 59 7 — 278 
Property revenues14 1 — — 15 
Franchise contributions for advertising and other services117 14 — — 131 
$566 $235 $453 $9 $1,263 
Deferred Franchise Fees [Table Text Block]
Deferred Franchise Fees
Balance at December 31, 2020$415 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(17)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period12 
Other(a)
(3)
Balance at March 31, 2021$407 

(a)    Primarily includes impact of foreign currency translation.
  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$64 
1 - 2 years59 
2 - 3 years54 
3 - 4 years49 
4 - 5 years43 
Thereafter138 
Total$407 
  
v3.21.1
Reportable Operating Segments (Tables)
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
 Quarter ended
Revenues20212020
KFC Division$625 $566 
Pizza Hut Division251 235 
Taco Bell Division488 453 
Habit Burger Grill Division122 9 
 $1,486 $1,263 

 Quarter ended
Operating Profit 20212020
KFC Division$300 $224 
Pizza Hut Division102 76 
Taco Bell Division178 144 
Habit Burger Grill Division— (2)
Corporate and unallocated G&A expenses(50)(50)
Unallocated Company restaurant expenses— (1)
Unallocated Franchise and property expenses— (2)
Unallocated Refranchising gain (loss)15 13 
Unallocated Other income (expense) (See Note 5)
(2)(152)
Operating Profit$543 $250 
Investment income (expense), net(a)
— (34)
Other pension income (expense) (See Note 10)(3)(3)
Interest expense, net(b)
(131)(118)
Income before income taxes$409 $95 

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Includes changes in the value of Grubhub, Inc. ("Grubhub") common stock and other investments. For the quarter ended March 31, 2020, we recognized investment expense of $22 million related to changes in fair value of our investment in Grubhub common stock. In the quarter ended September 30, 2020, we sold our investment in Grubhub.

(b)Includes fees expensed and unamortized debt issuance costs written off totaling $12 million related to the refinancing of the Credit Agreement during the quarter ended March 31, 2021 (see Note 11).
v3.21.1
Pension Benefits (Tables)
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost associated with our U.S. pension plans are as follows:

 Quarter ended
 20212020
Service cost$2 $2 
Interest cost8 9 
Expected return on plan assets(11)(11)
Amortization of net loss6 4 
Amortization of prior service cost1 1 
Net periodic benefit cost$6 $5 
v3.21.1
Short-term Borrowings and Long-term Debt (Tables)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
Short-term Borrowings3/31/202112/31/2020
Current maturities of long-term debt$401 $463 
Less current portion of debt issuance costs and discounts(7)(10)
Short-term borrowings$394 $453 
Long-term Debt  
Securitization Notes$2,861 $2,869 
Subsidiary Senior Unsecured Notes1,800 1,800 
Term Loan A Facility750 431 
Term Loan B Facility1,500 1,916 
YUM Senior Unsecured Notes3,725 3,725 
Finance lease obligations69 72 
$10,705 $10,813 
Less debt issuance costs and discounts(75)(78)
Less current maturities of long-term debt(401)(463)
Long-term debt$10,229 $10,272 

Details of our Short-term borrowings and Long-term debt as of December 31, 2020 can be found within our 2020 Form 10-K.

On March 15, 2021, KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC (collectively, the “Borrowers”), each of which is a wholly-owned subsidiary of the Company, completed the refinancing of the then existing $1.9 billion term loan B facility, $431 million term loan A facility and $1.0 billion revolving facility through the issuance of a $1.5 billion term loan B facility maturing March 15, 2028 (the "Term Loan B Facility"), a $750 million term loan A facility maturing March 15, 2026 (the "Term Loan A Facility") and a $1.25 billion revolving facility maturing March 15, 2026 (the "Revolving Facility") pursuant to an amendment to the Credit Agreement (as defined in our 2020 Form 10-K). The amendment reduces the interest rate currently applicable to the refinanced Term Loan A Facility and for borrowings under the refinanced Revolving Facility by 25 basis points. Subsequent to the refinance the interest rate applicable to the Term Loan A Facility and the Revolving Facility ranges from 0.75% to 1.50% plus LIBOR or from 0.00% to 0.50% plus the Base Rate, at the Borrowers' election, based on the total leverage ratio (as defined in the Credit Agreement).

The refinanced Term Loan A Facility is now subject to quarterly amortization payments in an amount equal to 0.625% of the principal amount of the facility as of the refinance date beginning with the second quarter of 2022. The Term Loan A Facility quarterly amortization payments increase to 1.25% of the principal amount of the facility as of the refinance date beginning with the second quarter of 2024. The Term Loan B Facility continues to be subject to quarterly amortization payments in an amount equal to 0.25% of the principal amount of the facility as of the refinance date. All other material provisions under the Credit Agreement remain unchanged.

As a result of this Credit Agreement refinancing, $8 million of fees were capitalized as debt issuance costs primarily within Long-term debt and Other assets on our Condensed Consolidated Balance Sheet as of March 31, 2021. During the quarter
ended March 31, 2021, fees expensed as well as previously recorded unamortized debt issuance costs written off totaling approximately $12 million were recognized within Interest expense, net due to this refinancing. Excluding the amounts associated with the Credit Agreement refinancing, cash paid for interest during the quarters ended March 31, 2021 and 2020 was $88 million and $72 million, respectively.

YUM Senior Unsecured Notes Issuance and Redemption of Subsidiary Senior Unsecured Notes

Subsequent to the end of the first quarter, on April 1, 2021, YUM! Brands, Inc. issued $1.1 billion aggregate principal amount of 4.625% YUM Senior Unsecured Notes due January 31, 2032 (the “2032 Notes”). Interest on the 2032 Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. The indenture governing the 2032 Notes contains covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount of $100 million or more or the failure to pay the principal of such indebtedness at its stated maturity will constitute an event of default under the 2032 Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice. We intend to use the net proceeds from the 2032 Notes to fund the redemption of the 2026 Notes discussed below.

Subsequent to the end of the first quarter, on April 23, 2021, the Borrowers issued a notice of redemption for June 1, 2021 for $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026 (the “2026 Notes”). The redemption amount will be equal to 102.625% of the $1,050 million aggregate principal amount redeemed, reflecting a “call premium”, plus accrued interest to the date of redemption.
v3.21.1
Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gains and losses on derivative instruments designated as cash flow hedges recognized in other comprehensive income and reclassifications from AOCI to earnings
Gains and losses on derivative instruments designated as cash flow hedges recognized in OCI and reclassifications from AOCI into Net Income:
 Quarter ended
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 2021 2020 2021 2020
Interest rate swaps$24 $(83)$4 $2 
Foreign currency contracts— 6 — (8)
Income tax benefit/(expense)(6)19 (1)1 
v3.21.1
Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis The following table presents the carrying value and estimated fair value of the Company’s debt obligations:
3/31/202112/31/2020
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
Securitization Notes(a)
$2,861 $2,999 $2,869 $3,015 
Subsidiary Senior Unsecured Notes(b)
1,800 1,901 1,800 1,890 
Term Loan A Facility(b)
750 727 431 428 
Term Loan B Facility(b)
1,500 1,504 1,916 1,907 
YUM Senior Unsecured Notes(b)
3,725 3,952 3,725 4,094 
(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
(b)    We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates. 		[1],[2]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Fair Value
Condensed Consolidated Balance SheetLevel3/31/202112/31/2020
Assets
Foreign Currency Contracts
Prepaid expenses and other current assets2 $1 $1 
Other Investments
Other assets1 2 45 
Liabilities
Interest Rate Swaps
Accounts payable and other current liabilities2 35 28 
Interest Rate Swaps
Other liabilities and deferred credits2 92 127 
[1] We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
[2] We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates.
v3.21.1
Financial Statement Presentation (Details)
 3 Months Ended
Mar. 31, 2021
countries_and_territiories
restaurants
Months
operating_segments
Rate
Number of Countries in which Entity Operates | countries_and_territiories 150
Number of Stores | restaurants 50,000
Percent Of System Units Located Outside United States | Rate 98.00%
Number of Reportable Segments | operating_segments 4
Fiscal period months standard for each quarter | Months 3
v3.21.1
Habit Burger Acquisition (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 18, 2020
USD ($)
restaurants
Mar. 31, 2021
USD ($)
restaurants
Sep. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Mar. 17, 2021
USD ($)
Dec. 31, 2020
USD ($)
Business Acquisition [Line Items]            
Number of Stores | restaurants   50,000        
Acquisition of The Habit Restaurants, Inc., net of cash acquired $ 408 $ 0   $ 408    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents 20          
Goodwill, Purchase Accounting Adjustments   2     $ 15  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets 11          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 111          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets 96          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets 28          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets 442          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities 68          
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation (170)          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities (238)          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net 204          
Goodwill   (597)       $ (597)
Income tax provision   83   12    
Goodwill impairment tax benefit [Member]            
Business Acquisition [Line Items]            
Income tax provision     $ 1 32    
The Habit Burger Grill [Member]            
Business Acquisition [Line Items]            
Goodwill $ (204) $ 60        
The Habit Burger Grill [Member] | Company Owned Stores [Member]            
Business Acquisition [Line Items]            
Number of Stores | restaurants 245          
The Habit Burger Grill [Member] | Franchisee Owned Stores [Member]            
Business Acquisition [Line Items]            
Number of Stores | restaurants 31          
Goodwill [Member]            
Business Acquisition [Line Items]            
Impairment expense     $ 5 $ 139    
Lease Agreements [Member]            
Business Acquisition [Line Items]            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets $ 196          
v3.21.1
Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Net Income $ 326 $ 83
Weighted-average common shares outstanding (for basic calculation) 301.0 302.0
Effect of dilutive share-based employee compensation 4.0 5.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 305.0 307.0
Basic Earnings Per Common Share $ 1.09 $ 0.28
Diluted EPS $ 1.07 $ 0.27
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation [1] 2.3 4.2
[1] These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.21.1
Shareholders' Deficit (Details) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Repurchase Of Shares Of Common Stock [Line Items]    
Repurchase of shares of Common Stock, value $ 275 [1] $ 0
Stock Repurchase Program, Remaining Authorized Repurchase Amount 1,475  
Value of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter $ 11  
Number of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter 100  
Issued Common Stock    
Repurchase Of Shares Of Common Stock [Line Items]    
Shares Repurchased 2,599 [1] 0
Repurchase of shares of Common Stock, value $ 14  
[1] (a) Excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but cash settlement dates subsequent to December 31, 2020.
v3.21.1
Shareholders' Deficit (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Schedule of changes in accumulated comprehensive income [Line Items]    
Accumulated other comprehensive loss $ (411)  
Gains (losses) arising during the year classified into AOCI, net of tax 57  
(Gains) losses reclassified from AOCI, net of tax 8  
Other comprehensive income (loss), net of tax 65 $ (161)
Accumulated other comprehensive loss (346)  
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature    
Schedule of changes in accumulated comprehensive income [Line Items]    
Accumulated other comprehensive loss (182)  
Gains (losses) arising during the year classified into AOCI, net of tax 3  
(Gains) losses reclassified from AOCI, net of tax 0  
Other comprehensive income (loss), net of tax 3  
Accumulated other comprehensive loss (179)  
Pension and Post-Retirement Benefits    
Schedule of changes in accumulated comprehensive income [Line Items]    
Accumulated other comprehensive loss (96)  
Gains (losses) arising during the year classified into AOCI, net of tax 36  
(Gains) losses reclassified from AOCI, net of tax 5  
Other comprehensive income (loss), net of tax 41  
Accumulated other comprehensive loss (55)  
Derivative Instruments    
Schedule of changes in accumulated comprehensive income [Line Items]    
Accumulated other comprehensive loss (133)  
Gains (losses) arising during the year classified into AOCI, net of tax 18  
(Gains) losses reclassified from AOCI, net of tax 3  
Other comprehensive income (loss), net of tax 21  
Accumulated other comprehensive loss $ (112)  
v3.21.1
Other (Income) Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Sep. 30, 2020
Mar. 31, 2020
Other Income and Expenses [Line Items]      
Foreign exchange net (gain) loss and other [1] $ (7)   $ 12
Impairment and closure expense [2] 1   140
Other (income) expense (6)   152
Gain (Loss) on Sale of Properties $ 6    
Goodwill [Member]      
Other Income and Expenses [Line Items]      
Impairment expense   $ 5 $ 139
[1] The quarter ended March 31, 2021, includes a gain of $6 million associated with the sale of property.
[2] The quarter ended March 31, 2020, includes a charge of $139 million related to the impairment of Habit Burger Grill goodwill. See Note 2.
v3.21.1
Supplemental Balance Sheet Information (Details)
$ in Millions
Mar. 31, 2021
USD ($)
days
Dec. 31, 2020
USD ($)
Accounts and Notes Receivable [Abstract]    
Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days 30  
Accounts and notes receivable, gross $ 545 $ 579
Allowance for doubtful accounts (37) (45)
Accounts and notes receivable, net $ 508 $ 534
v3.21.1
Supplemental Balance Sheet Information (Details 2) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
Property, plant and equipment, gross $ 2,466 $ 2,465    
Accumulated depreciation and amortization (1,251) (1,230)    
Property, plant and equipment, net 1,215 1,235    
Operating lease, right-of-use assets [1] 840 851    
Other assets 1,416 1,435    
Other Assets, Miscellaneous, Noncurrent 405 421    
Operating Lease, Liability, Noncurrent 816 823    
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets 561 730    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents 802 1,024 $ 1,310 $ 768
Prepaid Expenses and Other Current Assets [Member]        
Assets held-for-sale 17 7    
Restricted Cash and Cash Equivalents [2] 207 258    
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents [3] 34 36    
Franchise Incentive [Member]        
Other assets $ 171 $ 163    
[1] Non-current operating lease liabilities of $816 million and $823 million as of March 31, 2021 and December 31, 2020, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.
[2] Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and Taco Bell Securitization interest reserves.
[3] Primarily trust accounts related to our self-insurance program.
v3.21.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income tax provision $ 83 $ 12
Effective tax rate 20.20% 12.50%
v3.21.1
Revenue Recognition Accounting Policy (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenues $ 1,486 $ 1,263
Product [Member]    
Revenues 476 355
Franchise [Member]    
Revenues 658 596
Advertising [Member]    
Revenues 352 312
UNITED STATES    
Operating Leases, Income Statement, Minimum Lease Revenue 14 15
UNITED STATES | Product [Member]    
Revenues 348 228
UNITED STATES | Franchise [Member]    
Revenues 256 231
UNITED STATES | Advertising [Member]    
Revenues 202 181
CHINA | Franchise [Member]    
Revenues 78 57
Other, Outside the U.S. and China [Member]    
Operating Leases, Income Statement, Minimum Lease Revenue 15 15
Other, Outside the U.S. and China [Member] | Product [Member]    
Revenues 128 127
Other, Outside the U.S. and China [Member] | Franchise [Member]    
Revenues 295 278
Other, Outside the U.S. and China [Member] | Advertising [Member]    
Revenues 150 131
KFC Global Division [Member]    
Revenues 625 566
KFC Global Division [Member] | UNITED STATES    
Operating Leases, Income Statement, Minimum Lease Revenue 4 4
KFC Global Division [Member] | UNITED STATES | Product [Member]    
Revenues 14 16
KFC Global Division [Member] | UNITED STATES | Franchise [Member]    
Revenues 44 38
KFC Global Division [Member] | UNITED STATES | Advertising [Member]    
Revenues 6 4
KFC Global Division [Member] | CHINA | Franchise [Member]    
Revenues 62 47
KFC Global Division [Member] | Other, Outside the U.S. and China [Member]    
Operating Leases, Income Statement, Minimum Lease Revenue 14 14
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Product [Member]    
Revenues 119 114
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]    
Revenues 230 212
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Advertising [Member]    
Revenues 132 117
Pizza Hut Global Division [Member]    
Revenues 251 235
Pizza Hut Global Division [Member] | UNITED STATES    
Operating Leases, Income Statement, Minimum Lease Revenue 0 1
Pizza Hut Global Division [Member] | UNITED STATES | Product [Member]    
Revenues 5 5
Pizza Hut Global Division [Member] | UNITED STATES | Franchise [Member]    
Revenues 67 62
Pizza Hut Global Division [Member] | UNITED STATES | Advertising [Member]    
Revenues 79 70
Pizza Hut Global Division [Member] | CHINA | Franchise [Member]    
Revenues 16 10
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member]    
Operating Leases, Income Statement, Minimum Lease Revenue 1 1
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Product [Member]    
Revenues 9 13
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]    
Revenues 57 59
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Advertising [Member]    
Revenues 17 14
Taco Bell Global Division [Member]    
Revenues 488 453
Taco Bell Global Division [Member] | UNITED STATES    
Operating Leases, Income Statement, Minimum Lease Revenue 10 10
Taco Bell Global Division [Member] | UNITED STATES | Product [Member]    
Revenues 208 198
Taco Bell Global Division [Member] | UNITED STATES | Franchise [Member]    
Revenues 144 131
Taco Bell Global Division [Member] | UNITED STATES | Advertising [Member]    
Revenues 117 107
Taco Bell Global Division [Member] | CHINA | Franchise [Member]    
Revenues 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member]    
Operating Leases, Income Statement, Minimum Lease Revenue 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Product [Member]    
Revenues 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]    
Revenues 8 7
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Advertising [Member]    
Revenues 1 0
Habit Division [Member]    
Revenues 122 9
Habit Division [Member] | UNITED STATES    
Operating Leases, Income Statement, Minimum Lease Revenue 0 0
Habit Division [Member] | UNITED STATES | Product [Member]    
Revenues 121 9
Habit Division [Member] | UNITED STATES | Franchise [Member]    
Revenues 1 0
Habit Division [Member] | UNITED STATES | Advertising [Member]    
Revenues 0 0
Habit Division [Member] | CHINA | Franchise [Member]    
Revenues 0 0
Habit Division [Member] | Other, Outside the U.S. and China [Member]    
Operating Leases, Income Statement, Minimum Lease Revenue 0 0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Product [Member]    
Revenues 0 0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]    
Revenues 0 0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Advertising [Member]    
Revenues $ 0 $ 0
v3.21.1
Revenue Recognition Accounting Policy (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue $ 407 $ 415
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period (17)  
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period 12  
Foreign Currency Gain (Loss) and Refranchising Gain (Loss) [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Other [1] $ (3)  
[1] (a)    Primarily includes impact of foreign currency translation.
v3.21.1
Revenue Recognition Accounting Policy (Details 3) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue $ 407 $ 415
1 year [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized 64  
2 years [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized 59  
3 years [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized 54  
4 years [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized 49  
5 years [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized 43  
Thereafter 5 years [Member]    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Recognized $ 138  
v3.21.1
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Segment Reporting Information [Line Items]    
Revenues $ 1,486 $ 1,263
Operating Profit 543 250
General and Administrative Expense 206 208
Company restaurant expenses (392) (298)
Franchise and property expenses 23 58
Refranchising (gain) loss (15) (13)
Other (income) expense 6 (152)
Investment (income) expense, net 0 34
Other pension income (expense) (3) (3)
Interest Income (Expense), Net (131) (118)
Income Before Income Taxes 409 95
Interest Expense, Debt 12  
GrubHub Inc. [Member]    
Segment Reporting Information [Line Items]    
Investment Income, Investment Expense   22
KFC Global Division [Member]    
Segment Reporting Information [Line Items]    
Revenues 625 566
Operating Profit 300 224
Pizza Hut Global Division [Member]    
Segment Reporting Information [Line Items]    
Revenues 251 235
Operating Profit 102 76
Taco Bell Global Division [Member]    
Segment Reporting Information [Line Items]    
Revenues 488 453
Operating Profit 178 144
Habit Division [Member]    
Segment Reporting Information [Line Items]    
Revenues 122 9
Operating Profit 0 (2)
Unallocated [Member]    
Segment Reporting Information [Line Items]    
General and Administrative Expense 50 50
Company restaurant expenses 0 (1)
Franchise and property expenses 0 2
Refranchising (gain) loss (15) (13)
Other (income) expense $ (2) $ (152)
v3.21.1
Pension Benefits (Details) - UNITED STATES - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Net periodic benefit cost $ 6 $ 5
General and Administrative Expense [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Service cost 2 2
Other pension (income) expense [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Interest cost 8 9
Expected return on plan assets (11) (11)
Amortization of net loss 6 4
Amortization of prior service cost $ 1 $ 1
v3.21.1
Short-term Borrowings and Long-term Debt (Details)
 1 Months Ended 3 Months Ended
Jun. 01, 2021
USD ($)
Apr. 01, 2021
USD ($)
Rate
Mar. 15, 2021
USD ($)
Mar. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]              
Revolving credit facilities, three months or less, net         $ 0 $ 950,000,000  
Amount of basis points Term Loan A and Revolving Facility interest rate reduced by due to refinancing       0.0025      
Interest Income (Expense), Net         (131,000,000) (118,000,000)  
Interest Expense, Debt         12,000,000    
Capital lease obligations       $ 69,000,000 69,000,000   $ 72,000,000
Long-term debt and capital less obligations, including current maturities and debt issuance costs       10,705,000,000 10,705,000,000   10,813,000,000
Less Debt Issuance Costs, Noncurrent, Net       (75,000,000) (75,000,000)   (78,000,000)
Long-term Debt, Current Maturities       401,000,000 401,000,000   463,000,000
Long-term debt       10,229,000,000 10,229,000,000   10,272,000,000
Interest Paid, Including Capitalized Interest, Operating and Investing Activities         88,000,000 72,000,000  
Debt Issuance Costs         5,000,000 $ 0  
Short-term Debt [Line Items]              
Long-term Debt, Current Maturities       401,000,000 401,000,000   463,000,000
Less current portion of debt issuance costs and discounts       (7,000,000) (7,000,000)   (10,000,000)
Short-term borrowings       394,000,000 394,000,000   453,000,000
Secured Debt [Member]              
Debt Instrument [Line Items]              
Senior Notes       2,861,000,000 2,861,000,000   2,869,000,000
Debt Issuance Costs, Gross       8,000,000 8,000,000    
Term Loan A Facility [Member]              
Debt Instrument [Line Items]              
Long-term Debt     $ 750,000,000        
Term Loan A Facility [Member] | June 2022              
Debt Instrument [Line Items]              
Long-term Debt     431,000,000        
Term Loan A Facility [Member] | Secured Debt [Member]              
Debt Instrument [Line Items]              
Long-term Debt       $ 750,000,000 750,000,000   431,000,000
Debt Instrument, Frequency of Periodic Payment       quarterly      
Term Loan A Facility, Repayments of Principal in Year Four       1.25%      
Term Loan A Facility, Repayments of Principal in Year Two and Three       0.625%      
Term Loan B Facility [Member]              
Debt Instrument [Line Items]              
Long-term Debt     1,500,000,000        
Term Loan B Facility [Member] | April 2025              
Debt Instrument [Line Items]              
Long-term Debt     1,900,000,000        
Term Loan B Facility [Member] | Secured Debt [Member]              
Debt Instrument [Line Items]              
Long-term Debt       $ 1,500,000,000 1,500,000,000   1,916,000,000
Term Loan B, Repayment of Principal       0.25%      
Debt Instrument, Frequency of Periodic Payment       quarterly      
YUM Senior Unsecured Notes [Member] [Domain] | Unsecured Debt [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Debt Default, Description of Violation or Event of Default   The indenture governing the 2032 Notes contains covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount of $100 million or more or the failure to pay the principal of such indebtedness at its stated maturity will constitute an event of default under the 2032 Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice.          
Senior Notes       $ 3,725,000,000 3,725,000,000   3,725,000,000
Revolving Credit Facility [Member]              
Debt Instrument [Line Items]              
Revolving credit facilities, three months or less, net     1,250,000,000        
Revolving Credit Facility [Member] | June 2022              
Debt Instrument [Line Items]              
Revolving credit facilities, three months or less, net     $ 1,000,000,000.0        
Unsecured Notes Due March 2032 | Unsecured Debt [Member]              
Debt Instrument [Line Items]              
Proceeds from Issuance of Debt   $ 1,100,000,000          
Debt Instrument, Interest Rate, Stated Percentage | Rate   4.625%          
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]              
Debt Instrument [Line Items]              
Senior Notes       $ 1,800,000,000 $ 1,800,000,000   $ 1,800,000,000
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member] | Subsequent Event              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Stated Percentage 5.25%            
Repayments of Debt, Maturing in More than Three Months $ 1,050,000,000            
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed 102.625%            
Term Loan A Facility and Revolving Facility | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) | Minimum              
Debt Instrument [Line Items]              
Debt Instrument, Basis Spread on Variable Rate       0.75%      
Term Loan A Facility and Revolving Facility | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) | Maximum [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Basis Spread on Variable Rate       1.50%      
Term Loan A Facility and Revolving Facility | Secured Debt [Member] | Base Rate | Minimum              
Debt Instrument [Line Items]              
Debt Instrument, Basis Spread on Variable Rate       0.00%      
Term Loan A Facility and Revolving Facility | Secured Debt [Member] | Base Rate | Maximum [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Basis Spread on Variable Rate       0.50%      
v3.21.1
Derivative Instruments (Details) - Cash Flow Hedging [Member] - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months $ (34)  
Forward-starting interest rate swap [Member]    
Derivative, Maturity Date Mar. 01, 2025  
Derivative, Notional Amount $ 1,500  
Interest Rate Swap [Member]    
Derivative, Maturity Date Jul. 27, 2021  
Derivative, Notional Amount $ 1,550  
Foreign Exchange Contract [Member] | Intercompany receivables and payables [Domain]    
Derivative, Notional Amount $ 34 $ 39
v3.21.1
Derivative Instruments (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]    
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax $ 24 $ (77)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 4 (6)
Change in Derivatives Instruments, Tax 7 20
Cash Flow Hedging [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax (6) 19
Change in Derivatives Instruments, Tax (1) 1
Interest Rate Swap [Member] | Cash Flow Hedging [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax 24 (83)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 4 2
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax 0 6
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ 0 $ (8)
v3.21.1
Fair Value Disclosures (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 15, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Payments for (Proceeds from) Investments $ 44    
Term Loan A Facility [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt obligations, excluding capital leases, carrying amount   $ 750  
Term Loan B Facility [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt obligations, excluding capital leases, carrying amount   $ 1,500  
Secured Debt [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Senior Notes, Noncurrent 2,861   $ 2,869
Secured Debt [Member] | Securitization Notes [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value [1] 2,999   3,015
Secured Debt [Member] | Term Loan A Facility [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt obligations, excluding capital leases, carrying amount 750   431
Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value [2] 727   428
Secured Debt [Member] | Term Loan B Facility [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt obligations, excluding capital leases, carrying amount 1,500   1,916
Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value [2] 1,504   1,907
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Senior Notes, Noncurrent 1,800   1,800
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value [2] 1,901   1,890
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Senior Notes, Noncurrent 3,725   3,725
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term Debt, Fair Value [2] 3,952   4,094
Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Forward [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative Liability, Fair Value, Gross Asset 1   1
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Investments, Fair Value Disclosure 2   45
Other Current Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative Liability, Fair Value, Gross Liability 35   28
Other Noncurrent Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative Liability, Fair Value, Gross Liability $ 92   $ 127
[1] We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
[2] We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates.
v3.21.1
Contingencies (Details) - Property Lease Guarantee [Member]
$ in Millions
 3 Months Ended
Mar. 31, 2021
USD ($)
Guarantor Obligations [Line Items]  
Year longest lease expires 2065
Guarantor Obligations, Maximum Exposure $ 425
Guarantee Obligations Maximum Exposure At Present Value $ 350
v3.21.1
Contingencies (Details 2)
 3 Months Ended
Mar. 31, 2021
Loss Contingencies [Line Items]  
Litigation, Nature On January 29, 2020, the Special Director issued an order imposing a penalty on YRIPL and certain former directors of approximately Indian Rupee 11 billion, or approximately $150 million. Of this amount, $145 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. The stay order remains in effect and the next hearing is scheduled for August 9, 2021. We deny liability and intend to continue vigorously defending this matter. We do not consider the risk of any significant loss arising from this order to be probable.