Company restaurant expenses

$ 6,584

$ 5,652

$ 5,597

Costs and Expenses, Net

1,725

1,506

1,235

Franchise and property expenses

1,060

1,064

917

117

145

180

Franchise advertising and other services expense

1,576

1,314

1,368

Costs and Expenses, Total

(35)

(34)

(37)

Other (income) expense

2

154

4

4,445

4,149

3,667

2,139

1,503

1,930

Other Pension (income) expense

^[1]

(86)

(74)

67

^[1]

7

14

4

Interest Income (Expense), Net

^[1]

544

543

486

Income (Loss) Attributable to Parent, before Tax, Total

1,674

1,020

1,373

Income tax provision

99

116

79

Basic Earnings Per Common Share (in dollars per share)

$ 1,575

$ 904

$ 1,294

$ 5.30

$ 2.99

$ 4.23

Diluted Earnings Per Common Share (in dollars per share)

5.21

2.94

4.14

Dividends Declared Per Common Share (in dollars per share)

$ 2.00

$ 1.88

$ 1.68

Company Sales

Revenues

Revenue from Contract with Customer, Excluding Assessed Tax

$ 2,106

$ 1,810

$ 1,546

Franchise and property revenue [Member]

Revenues

Revenue from Contract with Customer, Excluding Assessed Tax

2,900

2,510

2,660

Franchise contributions for advertising and other services

Revenues

Revenue from Contract with Customer, Excluding Assessed Tax

$ 1,578

$ 1,332

$ 1,391

[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net Income	$ 1,575	$ 904	$ 1,294
Translation adjustments and gains (losses) arising during the year	(24)	39	28
Translation reclassifications of adjustments and (gains) losses into Net Income	0	0	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	(24)	39	28
Translation adjustments tax (expense) benefit	0	0	(4)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(24)	39	24
Pension Unrealized gains (losses) arising during the year	65	(8)	(39)
Pension reclassification of (gains) losses into Net Income	16	18	10
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Unrealized Gains (Losses), before Tax	81	10	(29)
Pension and post-retirement benefit plans (tax impact)	(19)	(2)	7
Pension and post-retirement benefit plans (net of tax impact)	62	8	(22)
Cash Flow Hedge unrealized gains (losses) arising during the year	34	(99)	(51)
Cash Flow Hedge Reclassification of (gains) losses into Net Income	28	6	(25)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	62	(93)	(76)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	(14)	23	20
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	48	(70)	(56)
Other Comprehensive Income (Loss), Net of Tax	86	(23)	(54)
Comprehensive Income	$ 1,661	$ 881	$ 1,240

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Cash Flows - Operating Activities

$ 1,575

$ 904

$ 1,294

164

146

112

19

172

5

(35)

(34)

(37)

Share-based compensation expense

^[1]

(86)

(74)

67

Deferred income taxes

(200)

(65)

(232)

75

97

59

Changes in Accounts and Notes Receivable

(46)

62

(56)

Changes in Prepaid Expense and Other Assets

(33)

8

(8)

Changes in accounts payable and other current liabilities

122

128

(36)

Changes in income taxes payable

(41)

(110)

23

Other, net

192

71

124

Net Cash Provided by Operating Activities

1,706

1,305

1,315

Cash Flows - Investing Activities

Capital spending

(230)

(160)

(196)

Payments to Acquire Businesses, Net of Cash Acquired

0

(408)

0

Proceeds from refranchising of restaurants

0

206

0

85

19

110

Other, net

(28)

8

(2)

Net Cash Provided by (Used in) Investing Activities

(173)

(335)

(88)

Cash Flows - Financing Activities

Proceeds from long-term debt

4,150

1,650

800

Repayments of long-term debt

(3,657)

(1,517)

(331)

Revolving credit facilities, three months or less, net

0

Short-term borrowings by original maturity

More than three months - proceeds

0

95

130

More than three months - payments

0

(100)

(126)

Three months or less, net

0

Repurchase shares of Common Stock

(1,591)

(239)

(815)

Dividends paid on Common Stock

(592)

(566)

(511)

Debt issuance costs

(37)

(20)

(10)

Other, net

(40)

(41)

(75)

Net Cash Used in Financing Activities

(1,767)

(738)

(938)

Effect of Exchange Rate on Cash and Cash Equivalents

(19)

24

5

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect

(253)

256

294

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance

1,024

768

474

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance

$ 771

$ 1,024

$ 768

[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Consolidated Balance Sheets - USD ($)
shares in Millions, $ / shares in Millions, $ in Millions

Dec. 31, 2021

Dec. 31, 2020

Current Assets

Cash and cash equivalents

$ 486

$ 730

Accounts and notes receivable, net

596

534

Prepaid Expense and Other Assets, Current

450

425

Total Current Assets

1,532

1,689

Property, Plant and equipment, net

1,207

1,235

657

597

^[1]

Intangible assets, net

359

343

Other assets

1,487

1,435

Deferred Income Taxes

724

553

Accounts payable and other current liabilities

^[2]

5,966

5,852

Current Liabilities

1,334

1,189

Income taxes payable

13

33

Debt, Current

68

453

Total Current Liabilities

1,415

1,675

Long-term debt

11,178

10,272

Other Liabilities, Noncurrent

1,746

1,796

Total Liabilities

14,339

13,743

Shareholders' Equity

Common stock, no par value, 750 shares authorized; 300 shares issued in 2020 and 2019

0

Accumulated other comprehensive income (loss)

(8,048)

(7,480)

(325)

(411)

Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total

(8,373)

(7,891)

Total Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity

$ 5,966

$ 5,852

Common Stock, par value

$ 0

Common Stock, shares authorized

750

Common Stock, shares issued

289

300

[1]	Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.
[2]	U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion and $3.0 billion in 2021 and 2020, respectively.

Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Millions

Total

Common Stock

Retained Earnings

Accumulated Other Comprehensive Income (Loss)

Accounting Standards Update 2016-02 [Member]

Accounting Standards Update 2016-13 [Member]

Retained Earnings

Accounting Standards Update 2016-02 [Member]

Retained Earnings

Accounting Standards Update 2016-13 [Member]

Balance at Dec. 31, 2018

$ (7,926)

$ 0

$ (7,592)

$ (334)

Balance (in shares) at Dec. 31, 2018

306,000

Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)

1,294

24

Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax

(4)

Pension and post-retirement benefit plans (net of tax impact)

(22)

Pension and post-retirement benefit plans (tax impact)

7

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

(56)

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax

(20)

Comprehensive income - including noncontrolling interests

1,240

Dividends declared

(514)

Repurchase of shares of Common Stock

$ (810)

^[1]

$ (14)

(796)

Repurchase of shares of Common Stock (in shares)

(7,788)

^[1]

(8,000)

Employee stock option and SARs exercises (includes tax impact)

$ 75

$ 57

18

Employee stock option and SARs exercises (in shares)

2,000

71

$ 71

Balance at Dec. 31, 2019

(8,016)

$ 0

(7,628)

(388)

Balance (in shares) at Dec. 31, 2019

300,000

Stockholders' Equity Attributable to Parent

$ (2)

$ 2

Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)

904

39

Pension and post-retirement benefit plans (net of tax impact)

8

Pension and post-retirement benefit plans (tax impact)

(2)

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

(70)

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax

(23)

Comprehensive income - including noncontrolling interests

881

Dividends declared

(569)

Repurchase of shares of Common Stock

$ (250)

^[2]

$ (71)

(179)

Repurchase of shares of Common Stock (in shares)

(2,419)

^[2]

(2,000)

Employee stock option and SARs exercises (includes tax impact)

$ 41

Employee stock option and SARs exercises (in shares)

2,000

112

$ 112

Balance at Dec. 31, 2020

(7,891)

$ 0

(7,480)

(411)

Balance (in shares) at Dec. 31, 2020

300,000

Stockholders' Equity Attributable to Parent

$ (8)

7,480

$ 8

Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)

1,575

(24)

Pension and post-retirement benefit plans (net of tax impact)

62

Pension and post-retirement benefit plans (tax impact)

(19)

Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax

48

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax

14

Comprehensive income - including noncontrolling interests

1,661

Dividends declared

(594)

Repurchase of shares of Common Stock

$ (1,580)

^[2]

$ (31)

(1,549)

Repurchase of shares of Common Stock (in shares)

(12,981)

^[2]

(13,000)

Employee stock option and SARs exercises (includes tax impact)

$ 50

Employee stock option and SARs exercises (in shares)

2,000

81

$ 81

Balance at Dec. 31, 2021

(8,373)

$ 0

$ (8,048)

$ (325)

Balance (in shares) at Dec. 31, 2021

289,000

Summary of Significant Accounting Policies

$ 8,048

[1]	2019 amount excludes the effect of $5 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2018, but settlement dates subsequent to December 31, 2018.
[2]	2021 amount excludes and 2020 amount includes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business 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 53,000 restaurants in 157 countries and territories primarily under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill (collectively, the "Concepts"). The Company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style and pizza food categories. The Habit Burger Grill, a concept we acquired in March 2020, is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. At December 31, 2021, 98% of our restaurants were owned and operated by franchisees. Through our widely-recognized Concepts, we develop, operate or franchise a system of both traditional and non-traditional restaurants. The terms "franchise" or "franchisee" within these Consolidated Financial Statements are meant to describe third parties that operate units under either franchise or license agreements. Our traditional restaurants feature dine-in, carryout and, in some instances, drive-thru service. Non-traditional units include express units which have a more limited menu and operate in non-traditional locations like malls, airports, gasoline service stations, train stations, subways, convenience stores, stadiums, amusement parks and colleges, where a full-scale traditional outlet would not be practical or efficient. As of December 31, 2021, over 45,000 of our restaurants are also currently offering delivery. We also operate or franchise multibrand units, where two or more of our Concepts are operated in a single unit. As of December 31, 2021, YUM consisted of four operating segments: •The KFC Division which includes our worldwide operations of the KFC concept •The Taco Bell Division which includes our worldwide operations of the Taco Bell concept •The Pizza Hut Division which includes our worldwide operations of the Pizza Hut concept •The Habit Burger Grill Division which includes our worldwide operations of the Habit Burger Grill concept

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Our preparation of the accompanying Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“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 Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Principles of Consolidation and Basis of Preparation. Intercompany accounts and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it.

Our most significant variable interests are in certain entities that operate restaurants under our Concepts’ franchise arrangements. We do not typically provide significant financial support such as loans or guarantees to our franchisees. Thus, our most significant variable interests in franchisees result from real estate lease arrangements to which we are a party. At the end of 2021, YUM has future lease payments due from certain franchisees, on a nominal basis, of approximately $1 billion, and we are secondarily liable on certain other lease agreements that have been assigned to certain franchisees. See the Lease Guarantees section in Note 20. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

We do not have an equity interest in any of our franchisee businesses except for a minority interest in an entity, Devyani International Limited (“Devyani”), that owns our KFC India and Pizza Hut India master franchisee rights, a minority interest in an entity that owns our KFC Brazil and Pizza Hut Brazil master franchisee rights and a minority interest in an entity that operates Taco Bell franchised units in India. These minority interests do not give us the ability to significantly influence these entities. We account for our investment in Devyani and the entity that owns our KFC Brazil and Pizza Hut Brazil master franchisee rights as equity securities. When the fair value of these equity securities is readily determinable we record changes in

fair value in Investment (income) expense, net. When the fair value of these equity securities is not readily determinable we apply the measurement alternative in accordance with Accounting Standards Codification (“ASC”) Topic 321 and, when applicable, record fair value changes from observable prices as well as impairment in Investment (income) expense, net. We account for our investment in the entity that operates Taco Bell units in India as an available-for-sale debt security. This available-for-sale debt security is carried at fair value with unrealized gains and losses, net of tax, included as a component of Other comprehensive income (loss), on the Consolidated Statements of Comprehensive Income.

We participate in various advertising cooperatives with our franchisees, typically within a country where we have both Company-owned restaurants and franchise restaurants, established to collect and administer funds contributed for use in advertising and promotional programs designed to increase sales and enhance the reputation of the Company and our Concepts. Contributions to the advertising cooperatives are required for both Company-owned and franchise restaurants and are generally based on a percentage of restaurant sales. We maintain certain variable interests in these cooperatives. As the cooperatives are required to spend all funds collected on advertising and promotional programs, total equity at risk is not sufficient to permit the cooperatives to finance their activities without additional subordinated financial support. Therefore, these cooperatives are VIEs. As a result of our voting rights, we consolidate certain of these cooperatives for which we are the primary beneficiary.

Fiscal Year. 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 Habit Burger Grill subsidiaries operate 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 remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates.

Fiscal year 2019 included 53 weeks for our U.S. businesses and for our international subsidiaries that reported on a period calendar. The 53rd week added $66 million to Total revenues, $24 million to Operating Profit and $17 million to Net Income in our 2019 Consolidated Statement of Income.

Our next fiscal year scheduled to include a 53rd week for our period calendar reporters is 2024.

Foreign Currency. The functional currency of our foreign entities is the currency of the primary economic environment in which the entity operates. Functional currency determinations are made based upon a number of economic factors, including but not limited to cash flows and financing transactions. The operations, assets and liabilities of our entities outside the U.S. are initially measured using the functional currency of that entity. Income and expense accounts for our operations of these foreign entities are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities of these foreign entities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. As of December 31, 2021, net cumulative translation adjustment losses of $206 million are recorded in Accumulated other comprehensive income ("AOCI") in the Consolidated Balance Sheet.

The majority of our foreign currency net asset exposure is in countries where we have Company-owned restaurants. As we manage and share resources at the individual brand level within a country, cumulative translation adjustments are recorded and tracked at the foreign-entity level that represents the operations of our individual brands within that country. Translation adjustments recorded in AOCI are subsequently recognized as income or expense generally only upon sale of the related investment in a foreign entity, or upon a sale of assets and liabilities within a foreign entity that represents a complete or substantially complete liquidation of that foreign entity. For purposes of determining whether a sale or complete or substantially complete liquidation of an investment in a foreign entity has occurred, we consider those same foreign entities for which we record and track cumulative translation adjustments.

Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in Other (income) expense in our Consolidated Statements of Income.

Reclassifications. We have reclassified certain items in the Consolidated Financial Statements for prior periods to be comparable with the classification for the fiscal year ended December 31, 2021. These reclassifications had no effect on previously reported Net Income.

Revenue Recognition. Below is a discussion of how our revenues are earned, our accounting policies pertaining to revenue recognition under ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) and other required disclosures.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue transaction and collected from a customer are excluded from revenue.

Company Sales

Revenues from the sale of food items by Company-owned restaurants are recognized as Company sales when a customer purchases the food, which is when our obligation to perform is satisfied.

Franchise and Property Revenues

Franchise Revenues

Our most significant source of revenues arises from the operation of our Concepts' stores by our franchisees. Franchise rights may be granted through a store-level franchise agreement or through a master franchise agreement that sets out the terms of our arrangement with the franchisee. Our franchise agreements require that the franchisee remit continuing fees to us as a percentage of the applicable restaurant’s sales in exchange for the license of the intellectual property associated with our Concepts' brands (the “franchise right”). Our franchise agreements also typically require certain, less significant, upfront franchise fees such as initial fees paid upon opening of a store, fees paid to renew the term of the franchise right and fees paid in the event the franchise agreement is transferred to another franchisee.

Continuing fees represent the substantial majority of the consideration we receive under our franchise agreements. Continuing fees are typically billed and paid monthly and are usually 4% - 6% for store-level franchise agreements. Master franchise agreements allow master franchisees to operate restaurants as well as sub-franchise restaurants within certain geographic territories. The percentage of sales that we receive for restaurants owned or sub-franchised by our master franchisees as a continuing fee is typically less than the percentage we receive for restaurants operating under a store-level franchise agreement. Based on the application of the sales-based royalty exception within Topic 606 continuing fees are recognized as the related restaurant sales occur.

Upfront franchise fees are typically billed and paid when a new franchise or sub-franchise agreement becomes effective or when an existing agreement is transferred to another franchisee or sub-franchisee. We have determined that the services we provide in exchange for upfront franchise fees, which primarily relate to pre-opening support, are highly interrelated with the franchise right and are not individually distinct from the ongoing services we provide to our franchisees. As a result, upfront franchise fees are recognized as revenue over the term of each respective franchise or sub-franchise agreement. Revenues for these upfront franchise fees are recognized on a straight-line basis, which is consistent with the franchisee’s or sub-franchisee's right to use and benefit from the intellectual property.

Additionally, from time-to-time we provide consideration to franchisees in the form of cash (e.g. cash payments to offset new build costs) or other incentives (e.g. free or subsidized equipment) with the intent to drive new unit development or same-store sales growth that will result in higher future revenues for the Company. Such payments are capitalized and presented within Prepaid expense and other current assets or Other assets. These assets are being amortized as a reduction in Franchise and property revenues over the period of expected cash flows from the franchise agreements to which the payment relates.

Property Revenues

From time to time, we enter into rental agreements with franchisees for the lease or sublease of restaurant locations. These rental agreements typically originate from refranchising transactions and revenues related to the agreements are recognized as they are earned. Amounts owed under the rental agreements are typically billed and paid on a monthly basis. Related expenses are presented as Franchise and property expenses within our Consolidated Statements of Income and primarily include depreciation or, in the case of a sublease, rental expense.

Franchise Contributions for Advertising and Other Services

Advertising Cooperatives

We have determined we act as a principal in the transactions entered into by the advertising cooperatives we are required to consolidate based on our responsibility to define the nature of the goods or services provided and/or our commitment to pay for advertising services in advance of the related franchisee contributions. Additionally, we have determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. Franchisees remit to these consolidated advertising cooperatives a percentage of restaurant sales as consideration for providing the advertising services. As a result, revenues for advertising services are recognized when the related franchise restaurant sales occur based on

the application of the sales-based royalty exception within Topic 606. Revenues for these services are typically billed and received on a monthly basis.

Other Goods or Services

On a much more limited basis, we provide goods or services to certain franchisees that are individually distinct from the franchise right because they do not require integration with other goods or services we provide. Such arrangements typically relate to technology, supply chain and quality assurance services. The extent to which we provide such goods or services varies by brand, geographic region and, in some instances, franchisee. In instances where we rely on third parties to provide goods or services to franchisees at our direction, we have determined we act as a principal in these transactions. These revenues are recognized as the goods or services are transferred to the franchisee.

Franchise Support Costs. Certain direct costs of our franchise operations are charged to Franchise and property expenses. These costs include provisions for estimated uncollectible upfront and continuing fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, marketing funding on behalf of franchisees, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

The costs we incur to provide support services to our franchisees for which we do not receive a reimbursement are charged to General and administrative expenses (“G&A”) as incurred. Expenses related to the provisioning of goods or services for which we receive reimbursement for all or substantially all of the expense amount from a franchisee are recorded in Franchise advertising and other services expense (the associated revenue is recorded within Franchise contributions for advertising and other services as described above). The majority of these expenses relate to advertising and are incurred on behalf of franchisees by the advertising cooperatives we are required to consolidate. These expenses are accounted for as described in the Advertising Costs policy below. For such expenses that do not relate to advertising the expenses are recognized as incurred.

Advertising Costs. To the extent we participate in advertising cooperatives, we, like our participating franchisees, are required to make contributions. Our contributions are based on a percentage of sales of our participating Company restaurants. These contributions as well as direct marketing costs we may incur outside of a cooperative related to Company restaurants are recorded within Company restaurant expenses. Advertising expense included in Company restaurant expenses totaled $84 million, $68 million and $73 million in 2021, 2020 and 2019, respectively.

To the extent we consolidate advertising cooperatives, we incur advertising expense as a result of our obligation to spend franchisee contributions to those cooperatives (see above for our accounting for these contributions). Such advertising expense is recorded in Franchise advertising and other services expense and totaled $1,264 million, $1,079 million and $1,133 million in 2021, 2020 and 2019, respectively. At the end of each fiscal year additional advertising costs are accrued to the extent advertising revenues exceed the related advertising expense to date, as we are obligated to expend such amounts on advertising.

From time to time, we may make the decision to incur discretionary advertising expenditures on behalf of franchised restaurants. Such amounts are recorded within Franchise and property expenses and totaled $11 million, $10 million and $10 million in 2021, 2020 and 2019, respectively.

To the extent the advertising cooperatives we are required to consolidate are unable to collect amounts due from franchisees they incur bad debt expense. In 2021 and 2020 we recorded $6 million and $7 million in net recoveries, respectively, and in 2019 we recorded $19 million in net provisions, within Franchise advertising and other services expense related to recoveries on and provisions for uncollectible franchisee receivables. To the extent our consolidated advertising cooperatives have a provision or recovery for bad debt expense, the cooperative’s advertising spend obligation is adjusted such that there is no net impact within our Financial Statements.

Share-Based Employee Compensation. We recognize ongoing share-based payments to employees, including grants of employee stock options and stock appreciation rights (“SARs”), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest. Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in either Company restaurant expenses or G&A. See Note 16 for further discussion of our share-based compensation plans.

Legal Costs. Settlement costs are accrued when they are deemed probable and reasonably estimable. Anticipated legal fees related to self-insured workers' compensation, employment practices liability, general liability, automobile liability, product

liability and property losses (collectively, "property and casualty losses") are accrued when deemed probable and reasonably estimable. Legal fees not related to self-insured property and casualty losses are recognized as incurred. See Note 20 for further discussion of our legal proceedings.

Impairment or Disposal of Long-Lived Assets. Long-lived assets, including Property, plant and equipment (“PP&E”) as well as right-of-use operating lease assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The assets are not recoverable if their carrying value is less than the undiscounted cash flows we expect to generate from such assets. If the assets are not deemed to be recoverable, impairment is measured based on the excess of their carrying value over their fair value.

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless it is more likely than not that we will refranchise restaurants as a group. We review our long-lived assets of such individual restaurants (primarily PP&E, right-of-use operating lease assets and allocated intangible assets subject to amortization) that we intend to continue operating as Company restaurants annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses as our primary indicator of potential impairment for our annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets. For restaurant assets that are not deemed to be recoverable, we write-down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Fair value is an estimate of the price a franchisee would pay for the restaurant and its related assets, including any right-of-use assets, and is determined by discounting the estimated future after-tax cash flows of the restaurant, which include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make such as sales growth and margin improvement. The discount rate used in the fair value calculation is our estimate of the required rate of return that a franchisee would expect to receive when purchasing a similar restaurant and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. Individual restaurant-level impairment is recorded within Other (income) expense. Any right-of-use asset may alternatively be valued at the amount we could receive for such right-of-use asset from a third-party that is not a franchisee through a sublease if doing so would result in less overall impairment of the restaurant assets in total.

In executing our refranchising initiatives, we most often offer groups of restaurants for sale. When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment. We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants. For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds. To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates or rental payments, not at prevailing market rates, we consider the off-market terms in our impairment evaluation. We recognize any such impairment charges in Refranchising (gain) loss. We recognize gains on restaurant refranchisings when the sale transaction closes and control of the restaurant operations have transferred to the franchisee.

When we decide to close a restaurant, it is reviewed for impairment, which includes an estimate of sublease income that could be reasonably obtained, if any, in relation to the right-of-use operating lease asset. Additionally, depreciable lives are adjusted based on the expected disposal date. Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses from previously closed stores are generally expensed as incurred. Any costs recorded upon store closure as well as any subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination or changes in estimates of sublease income are recorded in Other (income) expense. To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Other (income) expense.

Management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, sublease income and refranchising proceeds. Accordingly, actual results could vary significantly from our estimates.

Guarantees. We recognize, at inception of a guarantee, a liability for the fair value of certain obligations undertaken. Additionally, effective January 1, 2020, we adopted the Financial Accounting Standards Board’s Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (“Topic 326”) which required that we also recognize as a liability the expected credit losses over the life of such guarantees. As a result of the adoption of Topic 326, we recorded a cumulative adjustment to Accumulated deficit of $8 million to establish such expected credit loss liability for our outstanding guarantees.

The majority of our guarantees are issued as a result of assigning our interest in obligations under operating leases as a condition to the refranchising of certain Company restaurants. We recognize a liability for such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain secondarily liable. The related expense and any subsequent changes are included in Refranchising (gain) loss. Any expense and subsequent changes in the guarantees for other franchise support guarantees not associated with a refranchising transaction are included in Franchise and property expenses.

Income Taxes. We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our Income tax provision in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.

We recognize the benefit of positions taken or expected to be taken in our tax returns in our Income tax provision when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement with the taxing authorities. We evaluate these amounts on a quarterly basis to ensure that they have been appropriately adjusted for audit settlements and other events we believe may impact the outcome. Changes in judgment that result in subsequent recognition, derecognition or a change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our Income tax provision.

We do not record a deferred tax liability for unremitted earnings of our foreign subsidiaries to the extent that the earnings meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the earnings indefinitely. The decision as to the amount of unremitted earnings that we intend to maintain in non-U.S. subsidiaries considers items including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the U.S.

See Note 18 for a further discussion of our income taxes.

Fair Value Measurements. Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities we record or disclose at fair value, we determine fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.


Level 1			Inputs based upon quoted prices in active markets for identical assets.

Level 2			Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3			Inputs that are unobservable for the asset.

Cash and Cash Equivalents. Cash equivalents represent funds we have temporarily invested (with original maturities not exceeding three months), including short-term, highly liquid debt securities. Cash and overdraft balances that meet the criteria for right of setoff are presented net on our Consolidated Balance Sheet.

Receivables. The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise agreements, including contributions due to advertising cooperatives we consolidate. These receivables

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 on our Consolidated Balance Sheet. Effective with the adoption of Topic 326 on January 1, 2020, our receivables are now stated net of expected credit losses. The impact to our net receivables as a result of adopting the standard was not significant. Expected credit losses for uncollectible franchisee receivable balances consider both current conditions and reasonable and supportable forecasts of future conditions. Current conditions we consider include pre-defined aging criteria as well as specified events that indicate we may not collect the balance due. Reasonable and supportable forecasts used in determining the probability of future collection consider publicly available data regarding default probability. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is dependent upon future economic events and other conditions that may be beyond our control. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.

We recorded $8 million of net bad debt recoveries in 2021 and $12 million and $24 million of net bad debt expense in 2020 and 2019, respectively, within Franchise and property expenses related to continuing fees, initial fees and rent receivables from our franchisees.

Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2021 and 2020, respectively, are as follows:


	2021		2020
Accounts and notes receivable	$	632	$	579
Allowance for doubtful accounts	(36)		(45)
Accounts and notes receivable, net	$	596	$	534

Our financing receivables primarily consist of notes receivables and direct financing leases with franchisees which we enter into from time-to-time. As these receivables primarily relate to our ongoing business agreements with franchisees, we consider such receivables to have similar risk characteristics and evaluate them as one collective portfolio segment and class for determining the allowance for doubtful accounts. Balances of notes receivable and direct financing leases due within one year are included in Accounts and notes receivable, net while amounts due beyond one year are included in Other assets. Amounts included in Other assets totaled $68 million (net of an allowance of less than $1 million) and $72 million (net of an allowance of less than $5 million) at December 31, 2021, and December 31, 2020, respectively. Financing receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. Interest income recorded on financing receivables has historically been insignificant.

Property, Plant and Equipment. PP&E is carried net of accumulated depreciation and amortization. We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows: 5 to 25 years for buildings and leasehold improvements and 3 to 20 years for machinery and equipment. We suspend depreciation and amortization on assets that are held for sale.

Leases and Leasehold Improvements. We adopted ASU No. 2016-02, Leases (“Topic 842”) as of the beginning of the year ended December 31, 2019, using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of 2019. The cumulative effect of this transition was recorded as an increase to Accumulated deficit of $2 million as of this date. We lease land, buildings or both for certain of our Company-operated restaurants and restaurant support centers worldwide. Rental expense for leased Company-operated restaurants is presented in our Consolidated Statements of Income within Company restaurant expenses and rental expense for restaurant support centers is presented within G&A. The length of our lease terms, which vary by country and often include renewal options, are an important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance or operating as well as the timing of recognition of rent expense over the duration of the lease. We include renewal option periods in determining the term of our leases when failure to renew the lease would impose a penalty on the Company in such an amount that a renewal appears to be reasonably certain at the commencement of the lease. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements that might be impaired if we choose not to continue the use of the leased property. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. We generally do not receive leasehold improvement incentives upon opening a store that is subject to a lease. We expense rent associated with leased land or buildings while a restaurant is being constructed whether rent is paid or we are subject to a rent holiday. Our leasing activity for other assets, including equipment, is not significant.

Right-of-use assets and liabilities are recognized upon lease commencement for operating and finance leases based on the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Subsequent amortization

of the right-of-use asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. For finance leases, the right-of-use asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. As most of our leases do not provide an implicit discount rate, we use our incremental secured borrowing rate based on the information available at commencement date, including the lease term and currency, in determining the present value of lease payments for both operating and finance leases. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Right-of-use assets are assessed for impairment in accordance with our long-lived asset impairment policy, which is performed annually for restaurant-level assets or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We reassess lease classification and remeasure right-of-use assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate new lease or upon certain other events that require reassessment. The difference between operating lease rental expense recognized in our Consolidated Statements of Income and cash payments for operating leases is recognized within Other, net within Net Cash Provided by Operating Activities in our Consolidated Statements of Cash Flows.

In certain instances, we lease or sublease certain restaurants to franchisees. Our lessor and sublease portfolio primarily consists of stores that have been leased to franchisees subsequent to refranchising transactions. Our most significant leases with lease and non-lease components are leases with our franchisees that include both the right to use a restaurant as well as a license of the intellectual property associated with our Concepts’ brands. For these leases, which are primarily classified as operating leases, we account for the lease and non-lease components separately. Revenues from rental agreements with franchisees are presented within Franchise and property revenues in our Consolidated Statements of Income and related expenses (e.g. depreciation and rent expense) are presented within Franchise and property expenses.

Goodwill and Intangible Assets. From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business. Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our reporting units are our business units (which are aligned based on geography) in our KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist. We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from Company-owned restaurant operations, if any, and franchise royalties. The discount rate is our estimate of the required rate of return that a third-party buyer would expect to receive when purchasing a business from us that constitutes a reporting unit. We believe the discount rate is commensurate with the risks and uncertainty inherent in the forecasted cash flows. An impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value.

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. If the restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained. The fair value of the portion of the reporting unit disposed of in a refranchising is determined by reference to the discounted value of the future cash flows expected to be generated by the restaurant and retained by the franchisee, which includes a deduction for the anticipated, future royalties the franchisee will pay us associated with the franchise agreement entered into simultaneously with the refranchising transition. The fair value of the reporting unit retained is based on the price a willing buyer would pay for the reporting unit and includes the value of franchise agreements. Appropriate adjustments are made if a franchise agreement includes terms that are determined to not be at prevailing market rates. As such, the fair value of the reporting unit retained can include expected cash flows from future royalties from those restaurants currently being refranchised, future royalties from existing franchise businesses and company restaurant operations. As a result, the percentage of a reporting unit’s goodwill that will be written off in a refranchising transaction will be less than the percentage of the reporting unit’s Company-owned restaurants that are refranchised in that transaction and goodwill can be allocated to a reporting unit with only franchise restaurants.

We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. Intangible assets that are deemed to have a definite life are amortized on a straight-line basis to their residual value.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset's fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is estimated by discounting the expected future after-tax cash flows associated with the intangible asset.

Our definite-lived intangible assets that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed not recoverable on an undiscounted basis is written down to its estimated fair value, which is our estimate of the price a willing buyer would pay for the intangible asset based on discounted expected future after-tax cash flows. For purposes of our impairment analysis, we update the cash flows that were initially used to value the definite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life.

Capitalized Software. We state capitalized software at cost less accumulated amortization within Intangible assets, net on our Consolidated Balance Sheets. We calculate amortization on a straight line basis over the estimated useful life of the software which ranges from 3 to 7 years upon initial capitalization.

Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks, and to reduce our exposure to market-driven charges in certain of the liabilities associated with employee compensation deferrals into our Executive Income Deferral (“EID”) Plan. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our Consolidated Balance Sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately.

As a result of the use of derivative instruments, 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 carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At December 31, 2021 and December 31, 2020, all of the counterparties to our interest rate swaps and foreign currency forwards had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

Common Stock Share Repurchases. From time-to-time, we repurchase shares of our Common Stock under share repurchase programs authorized by our Board of Directors. Shares repurchased constitute authorized, but unissued shares under the North Carolina laws under which we are incorporated. Additionally, our Common Stock has no par or stated value. Accordingly, we record the full value of share repurchases, or other deductions to Common Stock such as shares cancelled upon employee share-based award exercises, upon the trade date, against Common Stock on our Consolidated Balance Sheet except when to do so would result in a negative balance in such Common Stock account. In such instances, on a period basis, we record the cost of any further share repurchases, or other deductions to Common Stock as an addition to Accumulated deficit. Due to the large number of share repurchases of our stock over the past several years, our Common Stock balance is frequently zero at the end of any period. Accordingly, $1,549 million, $179 million and $796 million in share repurchases in 2021, 2020 and 2019, respectively, were recorded as an addition to Accumulated deficit. Additionally, $18 million related to shares cancelled upon employee share-based award exercises in 2019 were recorded as an addition to Accumulated deficit. See Note 17 for additional information on our share repurchases.

Pension and Post-retirement Medical Benefits. We measure and recognize the overfunded or underfunded status of our pension and post-retirement plans as an asset or liability in our Consolidated Balance Sheet as of our fiscal year end. The

funded status represents the difference between the projected benefit obligations and the fair value of plan assets, which is calculated on a plan-by-plan basis. The projected benefit obligation and related funded status are determined using assumptions as of the end of each year. The projected benefit obligation is the present value of benefits earned to date by plan participants, including the effect of future salary increases, as applicable. The difference between the projected benefit obligations and the fair value of plan assets that has not previously been recognized in our Consolidated Statement of Income is recorded as a component of AOCI.

The net periodic benefit costs associated with the Company's defined benefit pension and post-retirement medical plans are determined using assumptions regarding the projected benefit obligation and, for funded plans, the market-related value of plan assets as of the beginning of each year, or remeasurement period if applicable. We record the service cost component of net periodic benefit costs in G&A. Non-service cost components are recorded in Other pension (income) expense. We have elected to use a market-related value of plan assets to calculate the expected return on assets, net of administrative and investment fees paid from plan assets, in net periodic benefit costs. For each individual plan we amortize into pension expense the net amounts in AOCI, as adjusted for the difference between the fair value and market-related value of plan assets, to the extent that such amounts exceed 10% of the greater of a plan’s projected benefit obligation or market-related value of assets, over the remaining service period of active participants in the plan or, for plans with no active participants, over the expected average life expectancy of the inactive participants in the plan. The market-related value of plan assets is the fair value of plan assets as of the beginning of each year adjusted for variances between actual returns and expected returns. We attribute such variances to the market-related value of plan assets evenly over five years.

We record a curtailment when an event occurs that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the future services of a significant number of employees. We record a curtailment gain when the employees who are entitled to the benefits terminate their employment; we record a curtailment loss when it becomes probable a loss will occur. We recognize settlement gains or losses only when we have determined that the cost of all settlements in a year will exceed the sum of the service and interest costs within an individual plan.

Franchise Support Costs

Franchise Support Costs. Certain direct costs of our franchise operations are charged to Franchise and property expenses. These costs include provisions for estimated uncollectible upfront and continuing fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, marketing funding on behalf of franchisees, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

The costs we incur to provide support services to our franchisees for which we do not receive a reimbursement are charged to General and administrative expenses (“G&A”) as incurred. Expenses related to the provisioning of goods or services for which we receive reimbursement for all or substantially all of the expense amount from a franchisee are recorded in Franchise advertising and other services expense (the associated revenue is recorded within Franchise contributions for advertising and other services as described above). The majority of these expenses relate to advertising and are incurred on behalf of franchisees by the advertising cooperatives we are required to consolidate. These expenses are accounted for as described in the Advertising Costs policy below. For such expenses that do not relate to advertising the expenses are recognized as incurred.

Acquisitions

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Business Combination Disclosure

Acquisitions

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). This 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, net	111
Habit Burger Grill brand (included in Intangible assets, net)	96
Operating lease right-of-use assets (included in Other assets)	196
Other assets	28
Total Assets	442
Total Current Liabilities	(68)
Operating lease liabilities (included in Other liabilities and deferred credits)	(170)
Total Liabilities	(238)
Total identifiable net assets	204
Goodwill	204
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 during the quarter ended March 31, 2021, of the allocation of consideration to the net assets acquired (described above), the Habit Burger Grill reporting unit goodwill was $60 million. The pro forma impact on our results of operations if the acquisition had been completed as of the beginning of 2019 would not have been significant.

Dragontail Systems Acquisition

On September 7, 2021, we completed the acquisition of Dragontail Systems Limited (“Dragontail”). The Dragontail acquisition advances our digital capabilities and its AI-based integrated kitchen order management and delivery technologies are intended to strengthen store operations, enhance the customer experience and make it easier for team members to run a restaurant. Total cash consideration paid in connection with the acquisition was $66 million, net of cash acquired of $3 million. This net consideration has been classified within Other, net cash flows from investing activities within our Consolidated Statements of Cash Flows.

The acquisition was accounted for as a business combination using the acquisition method of accounting. The primary assets recorded as a result of the preliminary purchase price allocation were goodwill of $57 million and amortizable intangible assets of $11 million. The amortizable intangible assets, which consist of software, have an estimated weighted average useful life of 7 years. The goodwill recorded resulted from synergies expected to be achieved through leveraging our scale and resources to enhance these technologies and deploy them globally to our brands and franchisees over time. Goodwill recognized from the Dragontail acquisition is non-deductible for tax purposes and has been allocated to our reporting units within the Pizza Hut Division operating segment that are expected to most benefit from the Dragontail acquisition. The purchase price allocation for Dragontail is preliminary and subject to completion of valuation analyses.

The financial results of Dragontail have been included in our Consolidated Financial Statements since the date of the acquisition but did not significantly impact our results for the year ended December 31, 2021. The pro forma impact on our results of operations if the acquisition had been completed as of the beginning of 2020 would not have been significant. The direct transaction costs associated with the acquisition were also not material and were expensed as incurred.

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share (EPS)

Earnings Per Common Share (“EPS”)


	2021		2020		2019
Net Income	$	1,575	$	904	$	1,294
Weighted-average common shares outstanding (for basic calculation)	297		302		306
Effect of dilutive share-based employee compensation	5		5		7
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)	302		307		313

Basic EPS	$	5.30	$	2.99	$	4.23

Diluted EPS	$	5.21	$	2.94	$	4.14
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)	1.1		4.8		2.0

(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.

Items Affecting Comparability of Net Income and Cash Flows

12 Months Ended

Dec. 31, 2021

Items Affecting Comparability Of Net Income And Cash Flows Disclosure [Abstract]

Items Affecting Comparability of Net Income and Cash Flows

Refranchising (Gain) Loss

The Refranchising (gain) loss by our Divisional reportable segments is presented below. Given the size and volatility of refranchising initiatives, our chief operating decision maker (“CODM”) does not consider the impact of Refranchising (gain) loss when assessing Divisional segment performance. As such, we do not allocate such gains and losses to our Divisional segments for performance reporting purposes.

During the years ended December 31, 2021, 2020 and 2019, we refranchised 83, 97 and 25 restaurants, respectively. Additionally, during the years ended December 31, 2021, 2020 and 2019, we sold certain restaurant assets associated with existing franchise restaurants to the franchisee. We received $85 million, $19 million and $110 million in pre-tax cash refranchising proceeds in 2021, 2020 and 2019, respectively, as a result of the sales of these restaurants and restaurant assets. In 2020, we also received as refranchising proceeds minority interests in Devyani International Limited (“Devyani”), as discussed further below. At the time of the refranchisings, these minority interests had fair values estimated to be $31 million. In 2019, we also received as refranchising proceeds a minority interest in an entity that owns our KFC and Pizza Hut master franchisee rights in Brazil. At the time of refranchising, the fair value of this minority interest was estimated to be $6 million.

A summary of Refranchising (gain) loss is as follows:


	Refranchising (gain) loss
	2021		2020		2019
KFC Division	$	(1)	$	(33)	$	(6)
Taco Bell Division	(29)		(2)		(31)
Pizza Hut Division	1		1		—
Habit Burger Grill Division	(6)		—		—
Worldwide	$	(35)	$	(34)	$	(37)

Unlocking Opportunity Initiative

On June 24, 2020, the Yum! Brands, Inc. Board of Directors approved the establishment of the Company’s new global “Unlocking Opportunity Initiative” including a $100 million investment over the next five years to fight inequality by unlocking opportunities for employees, restaurant team members and communities. The Company contributed $50 million in the second quarter of 2020 to Yum! Brands Foundation, Inc. (a stand-alone, not-for-profit organization that is not consolidated

in the Company's results) as part of these efforts and investment. As a result of the size and specific nature of this contribution the associated General and administrative expense was not allocated to any of our segment operating results for performance reporting purposes.

COVID-19 Relief

During the year ended December 31, 2020, we recorded a charge of $25 million related to a contribution made to Yum! Brands Foundation, Inc. expected to fund past and anticipated payments for COVID-19 relief provided to restaurant-level employees within the YUM system diagnosed with COVID-19 or acting as the primary caregiver for someone diagnosed with COVID-19. As a result of the size and specific nature of this contribution the associated General and administrative expense was not allocated to any of our segment operating results for performance reporting purposes.

Resource Optimization

During the year ended December 31, 2021, we recorded charges of $7 million to General and administrative expenses and $2 million to Other (income) expense and we recorded a credit of $1 million to Other pension (income) expense related to a resource optimization program initiated in the third quarter of 2020. During the year ended December 31, 2020, we recorded charges of $36 million to General and administrative expenses and $2 million to Other pension (income) expense related to this resource optimization program.

The charges incurred as a result of this program were primarily associated with a voluntary retirement program offered to our U.S. based employees and a worldwide severance program. This program is part of our efforts to optimize our resources, reallocating them toward critical areas of the business that will drive future growth. These critical areas include accelerating our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. Due to their scope and size, these costs were not allocated to any of our segment operating results for performance reporting purposes.

Investment in Devyani

In 2020, we received an approximate 5% minority interest in Devyani, an entity that operates KFC and Pizza Hut franchised units in India. The minority interest was received in lieu of cash proceeds upon the refranchising of approximately 60 KFC restaurants in India. At the time of the refranchisings, the fair value of this minority interest was estimated to be approximately $31 million. On August 16, 2021, Devyani executed an initial public offering and subsequently the fair value of this investment became readily determinable. As a result, concurrent with the initial public offering we began recording changes in fair value in Investment (income) expense, net in our Consolidated Statements of Income and recognized pre-tax investment income of $87 million, in the year ended December 31, 2021 (see Note 14).

Refinancing of Credit Agreement and Redemption of Subsidiary Senior Unsecured Notes

On March 15, 2021, certain subsidiaries of the Company completed a refinancing of our Credit Agreement. As a result, fees expensed of $4 million as well as previously recorded unamortized debt issuance costs written off of $8 million were recognized within Interest expense, net.

On April 23, 2021, certain subsidiaries of the Company 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 redemption amount was equal to 102.625% of the $1,050 million aggregate principal amount redeemed, reflecting a $28 million “call premium”. We recognized the call premium and the write-off of $6 million of unamortized debt issuance costs associated with the notes within Interest expense, net.

On September 9, 2020, certain subsidiaries of the Company issued a notice of redemption for $1,050 million aggregate principal amount of 5.00% Subsidiary Senior Unsecured Notes due in 2024. The redemption amount included a $26 million call premium plus accrued and unpaid interest to the date of redemption of October 9, 2020. We recorded the call premium, $6 million of unamortized debt issuance costs associated with the notes and $2 million of accrued and unpaid interest associated with the period of time from prepayment of the notes with the trustee on September 25, 2020, to their redemption date within Interest expense, net.

See Note 11 for further discussion of the Credit Agreement and Subsidiary Senior Unsecured Notes.

Investment in Grubhub, Inc. ("Grubhub")

In April of 2018 we purchased 2.8 million shares of Grubhub common stock for $200 million. In the quarter ended September 30, 2020, we sold our entire investment in Grubhub and received proceeds of $206 million. While we held our investment in Grubhub common stock we recognized changes in the fair value in our investment in our Consolidated Statements of Income. For the years ended December 31, 2020 and 2019, we recognized pre-tax investment income of $69 million and pre-tax investment expense of $77 million, respectively.

Income Tax Matters

In December of 2019, we completed intra-entity transfers of certain intellectual property (“IP”) rights. As a result of the transfer of certain of these rights, largely to subsidiaries in the United Kingdom (“UK”), we received a step-up in tax basis to current fair value under applicable tax law. To the extent this step-up in tax basis was amortizable against future taxable income, we recognized a one-time deferred tax benefit of $226 million in the quarter ended December 31, 2019. Additionally, we recognized a related deferred tax benefit of $3 million in the year ended December 31, 2020.

On July 22, 2020, the UK Finance Act 2020 was enacted resulting in an increase in the UK corporate tax rate from 17% to 19%. As a result, in the year ended December 31, 2020, we remeasured the related deferred tax assets originally recorded as described above and recognized an additional $25 million deferred tax benefit.

On June 10, 2021, the UK Finance Act 2021 was enacted resulting in an increase in the UK corporate income tax rate from 19% to 25%. As a result, in the year ended December 31, 2021, we remeasured the related deferred tax assets originally recorded as described above and recognized an additional $64 million deferred tax benefit.

In July 2021, we concentrated management responsibility for European (excluding the UK) KFC franchise development, support operations and management oversight in Switzerland (the “KFC Europe Reorganization”). Concurrent with this change in management responsibility, we have completed intra-entity transfers of certain KFC IP rights from subsidiaries in the UK to subsidiaries in Switzerland. With the transfers of these rights, we received a step-up in amortizable tax basis to current fair value under applicable Swiss tax law. As a result of this transfer, we recorded a net one-time deferred tax benefit of $152 million in the year ended December 31, 2021.

In December 2021, we continued our KFC Europe Reorganization and completed intra-entity transfers of additional European KFC IP rights from subsidiaries in the U.S. to subsidiaries in Switzerland. With the transfers of these additional rights, we received a step-up in amortizable tax basis to current fair value under applicable Swiss tax law. As a result of this transfer, we recorded a net one-time deferred tax benefit of $35 million in the year ended December 31, 2021.

See Note 18.

Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer

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.


	2021
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	65	$	944	$	21	$	520	$	1,550
Franchise revenues	198		661		279		4		1,142
Property revenues	14		44		5		—		63
Franchise contributions for advertising and other services	28		545		317		1		891

China
Franchise revenues	235		—		62		—		297

Other
Company sales	531		—		25		—		556
Franchise revenues	1,049		37		249		—		1,335
Property revenues	61		—		2		—		63
Franchise contributions for advertising and other services	612		7		68		—		687
	$	2,793	$	2,238	$	1,028	$	525	$	6,584


	2020
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	60	$	882	$	21	$	346	$	1,309
Franchise revenues		184		593		272		1		1,050
Property revenues		16		44		5		—		65
Franchise contributions for advertising and other services		18		483		317		—		818

China
Franchise revenues		204		—		51		—		255

Other
Company sales		446		—		55		—		501
Franchise revenues		833		25		222		—		1,080
Property revenues		58		—		2		—		60
Franchise contributions for advertising and other services		453		4		57		—		514
		$	2,272	$	2,031	$	1,002	$	347	$	5,652


	2019
		KFC Division		Taco Bell Division		Pizza Hut Division		Total
U.S.
Company sales		$	74	$	919	$	21	$	1,014
Franchise revenues		175		602		282		1,059
Property revenues		20		44		6		70
Franchise contributions for advertising and other services		10		483		318		811

China
Franchise revenues		214		—		60		274

Other
Company sales		497		2		33		532
Franchise revenues		912		27		246		1,185
Property revenues		69		—		3		72
Franchise contributions for advertising and other services		520		2		58		580
		$	2,491	$	2,079	$	1,027	$	5,597

Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits on our Consolidated Balance Sheet. A summary of significant changes to the contract liability balance during 2021 and 2020 is presented below.


	Deferred Franchise Fees
Balance at December 31, 2019	$	441
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(76)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	53
Other(a)	(3)
Balance at December 31, 2020	$	415
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(74)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	87
Other(a)	(7)
Balance at December 31, 2021	$	421

(a) Includes impact of foreign currency translation, as well as, in 2021, the recognition of deferred franchise fees into Refranchising (gain) loss upon the modification of existing franchise agreements when entering into master franchise agreements.

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


Less than 1 year	$	68
1 - 2 years	61
2 - 3 years	57
3 - 4 years	50
4 - 5 years	44
Thereafter	141
Total	$	421

We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Data (Notes)

12 Months Ended

Dec. 31, 2021

Supplemental Cash Flow Data


	2021		2020		2019
Cash Paid For:
Interest(a)	$	474	$	480	$	497
Income taxes	308		328		283
Significant Non-Cash Investing and Financing Activities:
Non-cash refranchising proceeds(b)	—		31		6
Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
Cash and cash equivalents as presented in Consolidated Balance Sheets	$	486	$	730	$	605
Restricted cash included in Prepaid expenses and other current assets(c)	250		258		138
Restricted cash and restricted cash equivalents included in Other assets(d)	35		36		25
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows	$	771	$	1,024	$	768

(a)Amounts exclude payments of $28 million in both 2021 and 2020 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).

(b)In 2020 we received as refranchising consideration a minority interest in an entity (Devyani) that operates KFC and Pizza Hut franchised units in India (see Note 5) and in 2019 we received as refranchising consideration a minority interest in an entity that owns our KFC and Pizza Hut master franchisee rights in Brazil.

(c)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 cash held in reserve for Taco Bell Securitization interest payments (see Note 11).

(d)Primarily trust accounts related to our self-insurance programs.

Other (Income) Expense

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other (Income) Expense


	2021		2020		2019
Foreign exchange net (gain) loss and other(a)	$	(14)	$	(18)	$	(1)
Impairment and closure expense(b)	16		172		5
Other (income) expense	$	2	$	154	$	4

(a) The year ended December 31, 2019, includes a charge of $8 million for the settlement of contingent consideration associated with our 2013 acquisition of the KFC Turkey and Pizza Hut Turkey businesses.

(b) The year ended December 31, 2020, includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 3). The year ended December 31, 2020, also includes charges of $12 million related to the impairment of restaurant-level assets and charges of $11 million related to the write-off of software no longer being used.

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2021

Supplemental Balance Sheet Information Disclosure [Abstract]

Supplemental Balance Sheet Information


Prepaid Expenses and Other Current Assets	2021		2020
Income tax receivable	$	50	$	35
Restricted cash	250		258
Assets held for sale(a)	12		7
Other prepaid expenses and current assets	138		125
Prepaid expenses and other current assets	$	450	$	425


Property, Plant and Equipment	2021		2020
Land	$	412	$	428
Buildings and improvements	1,403		1,423
Finance leases, primarily buildings	67		71
Machinery, equipment and other	595		543
Property, plant and equipment, gross	2,477		2,465
Accumulated depreciation and amortization	(1,270)		(1,230)
Property, plant and equipment, net	$	1,207	$	1,235

Depreciation and amortization expense related to PP&E was $134 million, $132 million and $114 million in 2021, 2020 and 2019, respectively.


Other Assets	2021		2020
Operating lease right-of-use assets	$	809	$	851
Franchise incentives	164		163
Investment in Devyani International Limited	118		31
Other	396		390
Other assets	$	1,487	$	1,435


Accounts Payable and Other Current Liabilities	2021		2020
Accounts payable	$	227	$	215
Accrued compensation and benefits	292		225
Accrued advertising	229		196
Operating lease liabilities	88		97
Accrued interest	78		73
Other current liabilities	420		383
Accounts payable and other current liabilities	$	1,334	$	1,189

(a) Assets held for sale reflect the carrying value of restaurants we have offered for sale to franchisees and excess properties that we do not intend to use for restaurant operations in the future.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:


	KFC		Taco Bell		Pizza Hut		Habit Burger Grill		Worldwide


















































Goodwill, net as of December 31, 2019(a)	$	233	$	98	$	199	$	—	$	530
Disposals and other, net(b)	2		—		3		—		5
Habit Burger Grill acquisition and impairment (See Note 3)	—		—		—		62		62
Goodwill, net as of December 31, 2020(a)	$	235	$	98	$	202	$	62	$	597
Acquisitions	—		—		—		10		10
Disposals and other, net(b)	(3)		—		(2)		(2)		(7)
Dragontail Systems acquisition (See Note 3)	—		—		57		—		57
Goodwill, net as of December 31, 2021(a)	$	232	$	98	$	257	$	70	$	657

(a)Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.

(b)Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Intangible assets, net for the years ended 2021 and 2020 are as follows:


	2021				2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets
Capitalized software costs	$	409	$	(214)	$	335	$	(160)
Reacquired franchise rights	41		(33)		39		(33)
Franchise contract rights	100		(88)		100		(85)
Other	53		(36)		53		(33)
	$	603	$	(371)	$	527	$	(311)

Indefinite-lived intangible assets
KFC trademark	$	31			$	31
Habit Burger Grill brand asset	96				96
	$	127			$	127

Amortization expense for all definite-lived intangible assets was $76 million in 2021, $63 million in 2020 and $52 million in 2019. Amortization expense for definite-lived intangible assets is expected to approximate $82 million in 2022, $60 million in 2023, $46 million in 2024, $21 million in 2025 and $11 million in 2026.

Short-term Borrowings and Long-term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Debt


	2021		2020
Short-term Borrowings
Current maturities of long-term debt	$	75	$	463
Less current portion of debt issuance costs and discounts	(7)		(10)
Short-term borrowings	$	68	$	453

Long-term Debt
Securitization Notes	$	3,811	$	2,869
Subsidiary Senior Unsecured Notes	750		1,800
Term Loan A Facility	750		431
Term Loan B Facility	1,489		1,916
YUM Senior Unsecured Notes	4,475		3,725
Finance lease obligations (See Note 12)	64		72
	$	11,339	$	10,813
Less debt issuance costs and discounts	(86)		(78)
Less current maturities of long-term debt	(75)		(463)
Long-term debt	$	11,178	$	10,272

Securitization Notes

Taco Bell Funding, LLC (the “Issuer”), a special purpose limited liability company and a direct, wholly-owned subsidiary of Taco Bell Corp. (“TBC”) through a series of securitization transactions has issued fixed rate senior secured notes collectively referred to as the “Securitization Notes”. The following table summarizes Securitization Notes outstanding at December 31, 2021:


				Interest Rate
Issuance Date	Anticipated Repayment Date(a)	Outstanding Principal (in millions)		Stated		Effective(b)
May 2016	May 2026	$	955	4.970	%	5.14	%
November 2018	November 2028	$	606	4.940	%	5.06	%
August 2021	February 2027	$	900	1.946	%	2.11	%
August 2021	February 2029	$	600	2.294	%	2.42	%
August 2021	August 2031	$	750	2.542	%	2.64	%

(a)The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.

(b)Includes the effects of the amortization of any discount and debt issuance costs.

The Securitization Notes were issued in transactions pursuant to which certain of TBC’s domestic assets, consisting principally of franchise-related agreements and domestic intellectual property, were contributed to the Issuer and the Issuer’s special purpose, wholly-owned subsidiaries (the “Guarantors”, and collectively with the Issuer, the "Securitization Entities") to secure the Securitization Notes. The Securitization Notes are secured by substantially all of the assets of the Securitization Entities, and include a lien on all existing and future U.S. Taco Bell franchise and license agreements and the royalties payable thereunder, existing and future U.S. Taco Bell intellectual property, certain transaction accounts and a pledge of the equity interests in asset owning Securitization Entities. The remaining U.S. Taco Bell assets that were excluded from the transfers to the Securitization Entities continue to be held by Taco Bell of America, LLC ("TBA") and TBC. The Securitization Notes are not guaranteed by the remaining U.S. Taco Bell assets, the Company, or any other subsidiary of the Company.

On August 19, 2021, the Issuer completed a refinancing transaction and issued $900 million of its Series 2021-1 1.946% Fixed Rate Senior Secured Notes, Class A-2-I (the “2021 Class A-2-I Notes”), $600 million of its Series 2021-1 2.294% Fixed Rate Senior Secured Notes, Class A-2-II (the “2021 Class A-2-II Notes”) and $750 million of its Series 2021-1 2.542% Fixed Rate Senior Secured Notes, Class A-2-III (the “2021 Class A-2-III Notes” and, together with the 2021 Class A-2-I Notes and the 2021 Class A-2-II Notes, the “2021 Class A-2 Notes”). The net proceeds from the issuance of the 2021 Class A-2 Notes were used to repay in full the 2016-1 Class A-2- II Notes of $480 million and 2018-1 Class A-2-I Notes of $804 million. The remaining net proceeds were distributed to TBC to pay certain transaction-related expenses, for general corporate purposes and to return capital to shareholders of the Company.

Payments of interest and principal on the Securitization Notes are made from the continuing fees paid pursuant to the franchise and license agreements with all U.S. Taco Bell restaurants, including both company and franchise operated restaurants. Interest on and principal payments of the Securitization Notes are due on a quarterly basis. In general, no amortization of principal of the Securitization Notes is required prior to their anticipated repayment dates unless as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the related indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes are required. As of the most recent quarterly measurement date the consolidated leverage ratio for both the Company and its subsidiaries as well as the Issuer and its subsidiaries exceeded 5.0:1 and, as a result, amortization payments are required.

As a result of the issuance of the 2021 Class A-2 Notes, $19 million of fees were capitalized as debt issuance costs. The debt issuance costs are being amortized to Interest expense, net through the Anticipated Repayment Dates of the Securitization Notes utilizing the effective interest rate method. Previously recorded unamortized debt issuance costs written off totaling approximately $5 million were recognized within Interest expense, net due to the extinguishment of the 2016-1 Class A-2-II Notes and 2018-1 Class A-2-I Notes.

The Securitization Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be available to make required interest payments in respect of the Securitization Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Securitization Notes under certain circumstances, (iii) certain indemnification payments relating to taxes, enforcement costs and other customary items and (iv) covenants relating to recordkeeping, access to information and similar matters. The Securitization Notes are also subject to rapid amortization events provided for in the indenture, including events tied to failure to maintain a stated debt service coverage ratio (as defined in the related indenture) of at least 1.1:1, gross domestic sales for U.S. Taco Bell restaurants being below certain levels on certain measurement dates, a manager termination event, an event of default and the failure to repay or refinance the Securitization Notes on the Anticipated Repayment Date (subject to limited cure rights). The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio. As of December 31, 2021, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events.

In accordance with the indenture, certain cash accounts have been established with the indenture trustee for the benefit of the note holders, and are restricted in their use. The indenture requires a certain amount of securitization cash flow collections to be allocated on a weekly basis and maintained in a cash reserve account. As of December 31, 2021, the Company had restricted cash of $84 million primarily related to required interest reserves included in Prepaid expenses and other current assets on the Consolidated Balance Sheets. Once the required obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the Securitization Entities.

Additional cash reserves are required if any of the rapid amortization events occur, as noted above, or in the event that as of any quarterly measurement date the Securitization Entities fail to maintain a debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1. The amount of weekly securitization cash flow collections that exceed the required weekly allocations is generally remitted to the Company. During the most recent quarter ended December 31, 2021, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement.

Term Loan Facilities, Revolving Facility and Subsidiary Senior Unsecured Notes

KFC Holding Co., Pizza Hut Holdings, LLC, and TBA, each of which is a wholly-owned subsidiary of the Company, as co-borrowers (the "Borrowers") have entered into a credit agreement providing for senior secured credit facilities and a $1.25

billion revolving facility (the Revolving Facility"). The senior secured credit facilities, which include a Term Loan A Facility and a Term Loan B Facility, and the Revolving Facility are collectively referred to as the "Credit Agreement". Additionally, the Borrowers through a series of transactions have issued Subsidiary Senior Unsecured Notes (collectively referred to as the “Subsidiary Senior Unsecured Notes”).

On March 15, 2021, the Borrowers 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. The amendment reduced the interest rate currently applicable to the refinanced Term Loan A Facility and for borrowings under the refinanced Revolving Facility by 25 basis points.

As a result of this Credit Agreement refinancing, $8 million of fees were capitalized as debt issuance costs, $3 million of which were paid directly to lenders. The debt issuance costs will be amortized to Interest expense, net through the contractual maturities of the Credit Agreement using the effective interest method. During the quarter ended March 31, 2021, fees expensed of $4 million as well as previously recorded unamortized debt issuance costs written off of $8 million were recognized within Interest expense, net due to this refinancing.

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 was equal to 102.625% of the $1,050 million aggregate principal amount redeemed, reflecting a $28 million “call premium”. We recognized the call premium and the write-off of $6 million of unamortized debt issuance costs associated with the 2026 Notes within Interest expense, net in the quarter ended June 30, 2021.

The following table summarizes borrowings outstanding under the Credit Agreement as well as our Subsidiary Senior Unsecured Notes as of December 31, 2021. There are no outstanding borrowings under the Revolving Facility and $2.1 million of letters of credit outstanding as of December 31, 2021.


					Interest Rate
	Issuance Date	Maturity Date	Outstanding Principal (in millions)		Stated		Effective(b)
Term Loan A Facility	March 2021	March 2026	$	750	(a)		0.96	%
Term Loan B Facility	March 2021	March 2028	$	1,489	(a)		4.99	%
Senior Note Due 2027	June 2017	June 2027	$	750	4.75	%	4.90	%

(a)Subsequent to the refinance, the interest rates applicable to the Term Loan A Facility as well as the Revolving Facility range from 0.75% to 1.50% plus LIBOR or from 0.00% to 0.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total leverage ratio (as defined in the Credit Agreement). As of December 31, 2021, the interest rate spreads on the LIBOR and Base Rate applicable to our Term Loan A Facility were 0.75% and 0.00%, respectively.

The interest rates applicable to the Term Loan B Facility are 1.75% plus LIBOR or 0.75% plus the Base Rate, at the Borrowers’ election.

(b) Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on LIBOR-based interest rates through December 31, 2021.

The refinanced Term Loan A Facility is 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 with the balance payable at maturity on March 15, 2026.

The Term Loan B Facility is subject to quarterly amortization payments in an amount equal to 0.25% of the initial principal amount of the facility as of the refinance date with the balance now payable at maturity on March 15, 2028. All other material provisions under the Credit Agreement remained unchanged.

The Credit Agreement is unconditionally guaranteed by the Company and certain of the Borrowers’ principal domestic subsidiaries and excludes Taco Bell Funding LLC and its special purpose, wholly-owned subsidiaries (see above). The Credit Agreement is also secured by first priority liens on substantially all assets of the Borrowers and each subsidiary guarantor, excluding the stock of certain subsidiaries and certain real property, and subject to other customary exceptions.

The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights.

The Credit Agreement includes two financial maintenance covenants which require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less and a fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1, each as of the last day of each fiscal quarter. The Credit Agreement includes other affirmative and negative covenants and events of default that are customary for facilities of this type. The Credit Agreement contains, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. We were in compliance with all debt covenants as of December 31, 2021.

The Subsidiary Senior Unsecured Notes are guaranteed on a senior unsecured basis by (i) the Company, (ii) the Specified Guarantors (as defined in the Credit Agreement) and (iii) by each of the Borrower's and the Specified Guarantors’ domestic subsidiaries that guarantees the Borrower's obligations under the Credit Agreement, except for any of the Company’s foreign subsidiaries. The indenture governing the Subsidiary Senior Unsecured Notes contains covenants and events of default that are customary for debt securities of this type. We were in compliance with all debt covenants as of December 31, 2021.

YUM Senior Unsecured Notes

The majority of our remaining long-term debt primarily comprises YUM Senior Unsecured Notes. The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2021:


				Interest Rate
Issuance Date	Maturity Date	Principal Amount (in millions)		Stated		Effective(a)
October 2007	November 2037	$	325	6.88	%	7.45	%
October 2013	November 2023	$	325	3.88	%	4.01	%
October 2013	November 2043	$	275	5.35	%	5.42	%
September 2019	January 2030	$	800	4.75	%	4.90	%
April 2020	April 2025	$	600	7.75	%	8.05	%
September 2020	March 2031	$	1,050	3.63	%	3.77	%
April 2021	January 2032	$	1,100	4.63	%	4.77	%

(a)Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward starting interest rate swaps utilized to hedge the interest rate risk prior to debt issuance.

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 Company paid debt issuance costs of $13 million in connection with the 2032 Notes. The debt issuance costs will be amortized to Interest expense, net over the life of the 2032 Notes using the effective interest method. We used the net proceeds from the 2032 Notes to fund the redemption of the 2026 Notes discussed above.

On June 30, 2021, Yum! Brands, Inc. issued a notice of redemption for $350 million aggregate principal amount of 3.75% YUM Senior Unsecured Notes due November 1, 2021 (the “2021 Notes”). The redemption, which occurred on August 2, 2021, was in an amount equal to 100% of the principal amount of the 2021 Notes, plus accrued interest to the date of redemption.

The YUM Senior Unsecured Notes represent senior, unsecured obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness. Our YUM Senior Unsecured Notes contain 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 in excess of $50 million ($100 million or more in the case of the YUM Senior Unsecured Notes issued in 2019 and subsequent years) will constitute a default under the YUM Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice.

The annual maturities of all Short-term borrowings and Long-term debt as of December 31, 2021, excluding finance lease obligations of $64 million and debt issuance costs and discounts of $93 million are as follows:


Year ended:
2022	$	68
2023	398
2024	87
2025	692
2026	1,606
Thereafter	8,424
Total	$	11,275

Interest expense on Short-term borrowings and Long-term debt was $551 million, $558 million and $519 million in 2021, 2020 and 2019, respectively.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Lease Accounting

Components of Lease Expense


	2021		2020		2019
Operating lease cost	$	145	$	137	$	115
Finance lease cost
Amortization of right-of-use assets	5		5		3
Interest on lease liabilities	4		3		3
Total finance lease cost	$	9	$	8	$	6
Sublease income	$	(59)	$	(60)	$	(69)

Supplemental Cash Flow Information


	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	140	$	133	$	104
Operating cash flows from finance leases	4		3		3
Financing cash flows from finance leases	4		5		4
Right-of-use assets obtained in exchange for lease obligations
Operating leases(a)	119		296		79
Finance leases	5		4		14
Operating lease liabilities transferred through refranchising	(25)		(3)		(25)
Finance lease and other debt obligations transferred through refranchising	(2)		(1)		(1)

(a) The year ended December 31, 2020, includes right-of-use assets acquired as part of the acquisition of Habit Burger Grill of $196 million (See Note 3).

Supplemental Balance Sheet Information


	2021			2020			Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	$	809		$	851		Other assets
Finance lease right-of-use assets	37			40			Property, plant and equipment, net
Total right-of-use assets(a)	$	846		$	891

Liabilities
Current
Operating	$	88		$	97		Accounts payable and other current liabilities
Finance	7			7			Short-term borrowings
Non-current
Operating	793			823			Other liabilities and deferred credits
Finance	57			65			Long-term debt
Total lease liabilities(a)	$	945		$	992

Weighted-average Remaining Lease Term (in years)
Operating leases	10.9			11.1
Finance leases	12.1			12.2

Weighted-average Discount Rate
Operating leases	4.9		%	5.1		%
Finance leases	6.4		%	6.5		%

(a) U.S. operating lease right-of-use assets and liabilities totaled $516 million and $577 million, respectively, as of December 31, 2021, and $499 million and $556 million, respectively, as of December 31, 2020. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell restaurant support center.

Maturity of Lease Payments and Receivables

Future minimum lease payments, including rental payments for lease renewal options we are reasonably certain to exercise, and amounts to be received as lessor or sublessor as of December 31, 2021, were as follows:


	Commitments				Lease Receivables
	Finance		Operating		Direct Financing		Operating
2022	$	10	$	131	$	4	$	84
2023	9		128		3		81
2024	8		119		3		78
2025	7		109		3		68
2026	7		101		2		72
Thereafter	48		575		23		550
Total lease payments/receipts	89		1,163		38		$	933
Less imputed interest/unearned income	(25)		(282)		(14)
Total lease liabilities/receivables	$	64	$	881	$	24

As of December 31, 2021, we have executed real estate leases that have not yet commenced with estimated future nominal lease payments of approximately $125 million, which are not included in the tables above. These leases are expected to commence in 2022 and 2023 with lease terms of up to 20 years.

Derivative Instruments (Notes)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Text Block]

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. On July 25, 2016, we agreed with multiple counterparties to swap the variable LIBOR-based component of the interest payments related to $1.55 billion of borrowings under our Term Loan B Facility. These interest rate swaps expired in July 2021. Further, on May 14, 2018, we entered into forward-starting interest rate swaps to fix the interest rate on $1.5 billion of combined borrowings under our Term Loan A and Term Loan B Facilities from the date the July 2016 swaps expired through March 2025. The interest rate swaps executed in May 2018 result in fixed rates of 3.81% and 4.81% on the swapped portion of the Term Loan A and Term Loan B Facilities, respectively, from July 2021 through March 2025. 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 December 31, 2021.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through December 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 December

31, 2021, all foreign currency contracts related to intercompany receivables and payables were highly effective cash flow hedges.

As of December 31, 2021 and 2020, foreign currency contracts outstanding related to intercompany receivables and payables had total notional amounts of $28 million and $39 million, respectively. Our foreign currency forward contracts all have durations that expire in 2022.

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 December 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:


	Gains/(Losses) Recognized in OCI						(Gains)/Losses Reclassified from AOCI into Net Income
	2021		2020		2019		2021		2020		2019

Interest rate swaps	$	34	$	(103)	$	(71)	$	29	$	10	$	(17)
Foreign currency contracts	—		4		20		(1)		(4)		(8)
Income tax benefit/(expense)	(9)		24		16		(5)		(1)		4

As of December 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 $38 million, based on current LIBOR interest rates.

Total Return Swaps

Beginning in 2021, 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 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 Consolidated Statements of Income largely offsetting the changes in the associated EID liabilities. The fair value associated with the total return swaps as of December 31, 2021, was not significant.

See Note 14 for the fair value of our derivative assets and liabilities.

Fair Value Disclosures

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosures

As of December 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 subsequent amortization approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:


	2021				2020
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Securitization Notes(a)	$	3,811	$	3,872	$	2,869	$	3,015
Subsidiary Senior Unsecured Notes(b)	750		784		1,800		1,890
Term Loan A Facility(b)	750		748		431		428
Term Loan B Facility(b)	1,489		1,490		1,916		1,907
YUM Senior Unsecured Notes(b)	4,475		4,845		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 13 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
	Consolidated Balance Sheet	Level	2021	2020
Assets
Foreign Currency Contracts	Prepaid expenses and other current assets	2	—	1
Other Investments	Other assets	1	119	45
Other Investments	Other assets	3	5	—

Liabilities
Interest Rate Swaps	Accounts Payable and other current liabilities	2	38	28
Interest Rate Swaps	Other liabilities and deferred credits	2	54	127

The fair value of the Company’s foreign currency contracts and interest rate swaps 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 as of December 31, 2021, primarily include our approximate 5% minority interest in Devyani with a fair value of $118 million. On August 16, 2021, Devyani executed an initial public offering and subsequently the fair value of these equity securities became readily determinable (see Note 5). Prior to the initial public offering the fair value of these equity securities was not readily determinable and we applied the measurement alternative in accordance with ASC Topic 321, Investments - Equity Securities.

The other investments as of December 31, 2020, 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. In the quarter ended March 31, 2021, upon entering into the total return swaps as disclosed in Note 13, we sold these investments in mutual funds and received cash proceeds of $44 million. These proceeds have been classified within Other, net cash flows from investing activities within our Consolidated Statements of Cash Flows.

Non-Recurring Fair Value Measurements

During the year ended December 31, 2021, we recognized non-recurring fair value measurements of $6 million related to refranchising related impairment. Refranchising related impairment results from writing down the assets of restaurants or restaurant groups offered for refranchising, including certain instances where a decision has been made to refranchise restaurants that are deemed to be impaired. The fair value measurements used in our impairment evaluation were based on actual bids received from potential buyers (Level 2). The remaining net book value of these restaurants at December 31, 2021, was approximately $6 million.

During the years ended December 31, 2021 and 2020, we recognized non-recurring fair value measurements of $4 million and $12 million, respectively, related to restaurant-level impairment. Restaurant-level impairment charges are recorded in Other (income) expense and resulted primarily from our impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). These amounts exclude fair value measurements made for assets that were subsequently disposed of prior to those respective year end dates. The remaining net book value of restaurant assets measured at fair value during the years ended December 31, 2021 and 2020,

was $16 million and $11 million, respectively. During the year ended December 31, 2020, we also recognized impairment charges related to our Habit Burger Grill reporting unit. See Note 3.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Pension, Retiree Medical and Retiree Savings Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Retiree Medical Benefits

Pension, Retiree Medical and Retiree Savings Plans

U.S. Pension Plans

We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit plans covering certain full-time salaried and hourly U.S. employees. The qualified plan meets the requirements of certain sections of the Internal Revenue Code and provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard to coverage, benefits and contributions. The supplemental plans provides additional benefits to certain employees. We fund our supplemental plans as benefits are paid.

The most significant of our U.S. plans is the YUM Retirement Plan (the “Plan”), which is a qualified plan. Our funding policy with respect to the Plan is to contribute amounts necessary to satisfy minimum pension funding requirements, including requirements of the Pension Protection Act of 2006, plus additional amounts from time-to-time as are determined to be necessary to improve the Plan’s funded status. We do not expect to make any significant contributions to the Plan in 2022. Our two significant U.S. plans, including the Plan and a supplemental plan, were previously amended such that any salaried employee hired or rehired by YUM after September 30, 2001, is not eligible to participate in those plans.

We do not anticipate any plan assets being returned to the Company during 2022 for any U.S. plans.

Obligation and Funded Status at Measurement Date:

The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our two significant U.S. pension plans. The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year end.


	2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,133	$	1,015
Service cost	8		8
Interest cost	32		35
Plan amendments	1		1

Special termination benefits	—		2
Benefits paid	(33)		(46)
Settlement payments	(67)		—
Actuarial (gain) loss	(5)		118

Benefit obligation at end of year	$	1,069	$	1,133

A significant component of the overall decrease in the Company's benefit obligation for the year ended December 31, 2021, was due to settlement payments, which were primarily related to a resource optimization program initiated in the third quarter of 2020 (see Note 5).

A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2020, was due to an actuarial loss, which was primarily due to a decrease in the discount rate used to measure our benefit obligation from 3.50% at December 31, 2019, to 2.80% at December 31, 2020.


	2021		2020
Change in plan assets:
Fair value of plan assets at beginning of year	$	1,014	$	886
Actual return on plan assets	88		168
Employer contributions	8		6

Benefits paid	(33)		(46)
Settlement payments	(67)		—

Fair value of plan assets at end of year	$	1,010	$	1,014
Funded status at end of year	$	(59)	$	(119)


Amounts recognized in the Consolidated Balance Sheet:
	2021		2020
Accrued benefit asset - non-current	$	43	$	—
Accrued benefit liability - current	(7)		(9)
Accrued benefit liability - non-current	(95)		(110)
	$	(59)	$	(119)

The accumulated benefit obligation was $1,048 million and $1,111 million at December 31, 2021 and 2020, respectively.


The table below provides information for those pension plan(s) with an accumulated benefit obligation in excess of plan assets. The pension plan(s) included also have a projected benefit obligation in excess of plan assets.
	2021		2020
Projected benefit obligation	$	102	$	1,133
Accumulated benefit obligation	98		1,111
Fair value of plan assets	—		1,014

Components of net periodic benefit cost:


	2021		2020		2019
Service cost	$	8	$	8	$	6
Interest cost	32		35		39
Amortization of prior service cost(a)	6		5		6
Expected return on plan assets	(43)		(43)		(44)
Amortization of net loss	14		14		1
Net periodic benefit cost	$	17	$	19	$	8
Additional (gain) loss recognized due to: Settlement charges(b)	$	—	$	—	$	3
Special termination benefits	$	—	$	2	$	—

(a)Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.


Pension gains (losses) in AOCI:
	2021		2020
Beginning of year	$	(111)	$	(136)
Net actuarial gain (loss)	49		7
Curtailments	—		1
Amortization of net loss	14		14
Amortization of prior service cost	6		5
Prior service cost	(1)		(2)
End of year	$	(43)	$	(111)


Accumulated pre-tax losses recognized within AOCI:
	2021		2020
Actuarial net loss	$	(33)	$	(96)
Prior service cost	(10)		(15)
	$	(43)	$	(111)


Weighted-average assumptions used to determine benefit obligations at the measurement dates:
	2021		2020
Discount rate	3.00	%	2.80	%
Rate of compensation increase	3.00	%	3.00	%


Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
	2021		2020		2019
Discount rate	2.80	%	3.50	%	4.60	%
Long-term rate of return on plan assets	5.25	%	5.50	%	5.75	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%

Our estimated long-term rate of return on plan assets represents the weighted-average of expected future returns on the asset categories included in our target investment allocation based primarily on the historical returns for each asset category and future growth expectations.

Plan Assets

The fair values of our pension plan assets at December 31, 2021 and 2020 by asset category and level within the fair value hierarchy are as follows:


	2021		2020
Level 1:
Cash	$	237	$	9
Cash Equivalents(a)	80		10
Fixed Income Securities - U.S. Corporate(b)	41		164
Equity Securities - U.S.(b)	—		409
Equity Securities - Non-U.S.(b)	—		102
Level 2:
Fixed Income Securities - U.S. Corporate(c)	49		148
Fixed Income Securities - U.S. Government and Government Agencies(d)	175		354
Fixed Income Securities - Other(d)	30		30
Total assets in the fair value hierarchy	612		1,226
Investments measured at net asset value(e)
Equity Securities	456		—
Total fair value of plan assets(f)	$	1,068	$	1,226

(a)Short-term investments in money market funds.

(b)Securities held in common or collective trusts.

(c)Investments held directly by the Plan.

(d)Includes securities held in common or collective trusts and investments held directly by the Plan.

(e)Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

(f)2021 and 2020 exclude net unsettled trade payables of $58 million and $212 million, respectively.

Our primary objectives regarding the investment strategy for the Plan’s assets are to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future payment requirements. To achieve these objectives, we are using a combination of active and passive investment strategies. As of December 31, 2021, the Plan's assets were in the process of being transitioned to the weighted-average target allocation summarized as follows:


Asset Category	Target Allocation
Fixed income	49	%
Equity securities	32	%
Real assets	19	%

In addition to allocation differences between target percentages and actual plan assets at December 31, 2021, due to the transition described above, allocations to each asset class may vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions.

Fixed income securities at December 31, 2021, primarily consist of a diversified portfolio of long duration instruments that are intended to mitigate interest rate risk or reduce the interest rate duration mismatch between the assets and liabilities of the Plan.

A smaller allocation (constituting 40% of the fixed income target allocation) is to diversified credit investments in a range of public and credit securities, including below investment grade rated bonds and loans, securitized credit and emerging market debt.

Equity securities at December 31, 2021, consist primarily of investments in publicly traded common stocks and other equity-type securities issued by companies throughout the world, including convertible securities, preferred stock, rights and warrants.

Real assets represent investments in real estate and infrastructure. These may take the form of debt or equity securities in public or private funds. No amounts had yet to be invested in real assets at December 31, 2021, as part of the aforementioned transition.

A mutual fund held as an investment by the Plan includes shares of Common Stock valued at $0.2 million and $0.3 million at December 31, 2021 and 2020, respectively, (less than 1% of total plan assets in each instance).

Benefit Payments

The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:


Year ended:
2022	$	47
2023	50
2024	52
2025	57
2026	59
2027 - 2031	293

Expected benefit payments are estimated based on the same assumptions used to measure our benefit obligation on the measurement date and include benefits attributable to estimated future employee service.

International Pension Plans

We also sponsor various defined benefit plans covering certain of our non-U.S. employees, the most significant of which are in the UK. Both of our UK plans have previously been frozen such that they are closed to new participants and existing participants can no longer earn future service credits.

At the end of 2021 and 2020, the projected benefit obligations of these UK plans totaled $351 million and $362 million, respectively and plan assets totaled $446 million and $440 million, respectively. These plans were both in a net overfunded position at the end of 2021 and 2020. Total actuarial pre-tax losses related to the UK plans of $5 million and $18 million were recognized in AOCI at the end of 2021 and 2020, respectively. The total net periodic benefit income recorded was less than $1 million in both 2021 and 2020, and $2 million in 2019.

The funding rules for our pension plans outside of the U.S. vary from country to country and depend on many factors including discount rates, performance of plan assets, local laws and regulations. We do not plan to make significant contributions to either of our UK plans in 2022.

Retiree Medical Benefits

Our post-retirement plan provides health care benefits, principally to U.S. salaried retirees and their dependents, and includes retiree cost-sharing provisions and a cap on our liability. This plan was previously amended such that any salaried employee hired or rehired by YUM after September 30, 2001, is not eligible to participate in this plan. Employees hired prior to September 30, 2001, are eligible for benefits if they meet age and service requirements and qualify for retirement benefits. We fund our post-retirement plan as benefits are paid.

At the end of 2021 and 2020, the accumulated post-retirement benefit obligation was $42 million and $46 million, respectively. Actuarial pre-tax gains of $6 million and $4 million were recognized in AOCI at the end of 2021 and 2020, respectively. The net periodic benefit cost recorded was $1 million in each of 2021, 2020 and 2019, the majority of which is

interest cost on the accumulated post-retirement benefit obligation. The weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for the post-retirement medical plan are identical to those as shown for the U.S. pension plans.

The benefits expected to be paid in each of the next five years are approximately $3 million and in aggregate for the five years thereafter are $13 million.

U.S. Retiree Savings Plan

We sponsor a contributory plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for eligible U.S. salaried and hourly employees. Participants are able to elect to contribute up to 75% of eligible compensation on a pre-tax basis. Participants may allocate their contributions to one or any combination of multiple investment options or a self-managed account within the 401(k) Plan. We match 100% of the participant’s contribution to the 401(k) Plan up to 6% of eligible compensation. We recognized as compensation expense our total matching contribution of $11 million in 2021, $10 million in 2020 and $11 million in 2019.

The entire disclosure for retirement benefits.

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Shareholders' Equity and Share-based Payments

Share-based and Deferred Compensation Plans

12 Months Ended

Dec. 31, 2021

Share-based and Deferred Compensation Plans

Overview

At year end 2021, we had one stock award plan in effect: the Yum! Brands, Inc. Long-Term Incentive Plan (the “LTIP”). Potential awards to employees and non-employee directors under the LTIP include stock options, incentive stock options, SARs, restricted stock, restricted stock units (“RSUs”), performance restricted stock units, performance share units (“PSUs”) and performance units. We have issued only stock options, SARs, RSUs and PSUs under the LTIP. Under the LTIP, the exercise price of stock options and SARs granted must be equal to or greater than the average market price or the ending market price of the Company’s stock on the date of grant. While awards under the LTIP can have varying vesting provisions and exercise periods, outstanding awards under the LTIP vest in periods ranging from immediate to five years. Stock options and SARs generally expire ten years after grant. At year end 2021, approximately 24 million shares were available for future share-based compensation grants under the LTIP.

Our EID Plan allows participants to defer receipt of a portion of their annual salary and all or a portion of their incentive compensation. As defined by the EID Plan, we credit the amounts deferred with earnings based on the investment options selected by the participants. These investment options are limited to cash, phantom shares of our Common Stock, phantom shares of a Stock Index Fund and phantom shares of a Bond Index Fund. Investments in cash and phantom shares of both index funds will be distributed in cash at a date as elected by the employee and therefore are classified as a liability on our Consolidated Balance Sheets. We recognize compensation expense for the appreciation or the depreciation, if any, of investments in cash and both of the index funds. Deferrals into the phantom shares of our Common Stock will be distributed in shares of our Common Stock, under the LTIP, at a date as elected by the employee and therefore are classified in Common Stock on our Consolidated Balance Sheets. We do not recognize compensation expense for the appreciation or the depreciation, if any, of investments in phantom shares of our Common Stock. Our EID plan also allows certain participants to defer incentive compensation to purchase phantom shares of our Common Stock and receive a 33% Company match on the amount deferred. Deferrals receiving a match are similar to an RSU award in that participants will generally forfeit both the match and incentive compensation amounts deferred if they voluntarily separate from employment during a vesting period that is two years from the date of deferral. We expense the intrinsic value of the match and the incentive compensation amount over the requisite service period which includes the vesting period.

Historically, the Company has repurchased shares on the open market in excess of the amount necessary to satisfy award exercises and expects to continue to do so in 2022.

In connection with the 2016 spin-off of our China business into an independent, publicly-traded company under the name of Yum China Holdings, Inc. ("Yum China"), under the provisions of our LTIP, employee stock options, SARs, RSUs and PSUs outstanding at that time were adjusted to maintain the pre-spin intrinsic value of the awards. Depending on the tax laws of the country of employment, awards were modified using either the shareholder method or the employer method. Share-based compensation as recorded in Net Income is based on the amortization of the fair value for both YUM and Yum China awards held by YUM employees. The fair value of Yum China awards held by YUM employees became fully amortized in the year ended December 31, 2020. Share issuances for Yum China awards held by YUM employees will be satisfied by Yum China. Share issuances for YUM awards held by Yum China employees are being satisfied by YUM.

Award Valuation

We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	2021		2020		2019
Risk-free interest rate	0.5	%	1.0	%	2.5	%
Expected term	6.3 years		5.8 years		6.5 years
Expected volatility	27.0	%	24.0	%	22.0	%
Expected dividend yield	1.9	%	1.9	%	1.8	%

Grants made to executives typically have a graded vesting schedule of 25% per year over four years and expire ten years after grant. We use a single weighted-average term for our awards that have a graded vesting schedule. Based on analysis of our historical exercise and post-vesting termination behavior, we have determined that our executives exercised the awards on average after 6.3 years.

When determining expected volatility, we consider both historical volatility of our stock as well as implied volatility associated with our publicly-traded options. The expected dividend yield is based on the annual dividend yield at the time of grant.

The fair values of PSU awards without market-based conditions and RSU awards are based on the closing price of our Common Stock on the date of grant. The fair values of PSU awards with market-based conditions have been valued based on the outcome of a Monte Carlo simulation.

Award Activity

Stock Options and SARs


	Shares (in thousands)		Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year	15,562		$	74.52
Granted	757		103.85
Exercised	(3,720)		60.77
Forfeited or expired	(329)		94.60
Outstanding at the end of the year	12,270	(a)	79.96		6.12	$	723
Exercisable at the end of the year	8,405		$	72.53	5.35	$	557

(a)Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

The weighted-average grant-date fair value of stock options and SARs granted during 2021, 2020 and 2019 was $21.32, $18.83 and $19.82, respectively. The total intrinsic value of stock options and SARs exercised during the years ended December 31, 2021, December 31, 2020 and December 31, 2019, was $234 million, $170 million and $204 million, respectively.

As of December 31, 2021, $30 million of unrecognized compensation cost related to unvested stock options and SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average period of approximately 1.5 years. The total fair value at grant date of awards held by YUM employees (including Yum China awards as applicable) that vested during 2021, 2020 and 2019 was $35 million, $70 million and $31 million, respectively.

RSUs and PSUs

As of December 31, 2021, there was $81 million of unrecognized compensation cost related to 1.4 million unvested RSUs and PSUs. The majority of the unrecognized compensation cost is attributable to PSUs granted in 2021 with a net new unit performance condition and a three-year service vesting period. The total fair value at grant date of awards that vested during 2021, 2020 and 2019 was $20 million, $15 million and $14 million, respectively.

Impact on Net Income

The components of share-based compensation expense and the related income tax benefits are shown in the following table:


	2021		2020		2019
Options and SARs	$	29	$	75	$	39
Restricted Stock Units	16		20		12
Performance Share Units	30		2		8
Total Share-based Compensation Expense	$	75	$	97	$	59
Deferred Tax Benefit recognized	$	15	$	18	$	9

Cash received from stock option exercises for 2021, 2020 and 2019 was $11 million, $10 million and $1 million, respectively. Tax benefits realized on our tax returns from tax deductions associated with share-based compensation for 2021, 2020 and 2019 totaled $72 million, $58 million and $66 million, respectively.

Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Deficit

Under the authority of our Board of Directors, we repurchased shares of our Common Stock during 2021, 2020 and 2019. All amounts exclude applicable transaction fees.


	Shares Repurchased (thousands)						Dollar Value of Shares Repurchased
Authorization Date	2021		2020		2019		2021			2020			2019
May 2021	8,235		—		—		$	1,050		$	—		$	—
November 2019	4,746		2,419		—		530			250			—
August 2018	—		—		7,788		—			—			810
Total	12,981	(a)	2,419	(a)	7,788	(b)	$	1,580	(a)	$	250	(a)	$	810	(b)

(a) 2021 amount excludes and 2020 amount includes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.

(b) 2019 amount excludes the effect of $5 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2018, but settlement dates subsequent to December 31, 2018.

In May 2021, our Board of Directors authorized share repurchases from July 1, 2021 through December 31, 2022, of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock. As of December 31, 2021, we have remaining capacity to repurchase up to $950 million of Common Stock under this authorization. Unutilized share repurchase capacity of $1.2 billion under a November 2019 authorization expired on June 30, 2021.

Changes in AOCI are presented below.


	Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature		Pension and Post-Retirement Benefits(a)		Derivative Instruments(b)		Total


































































Balance at December 31, 2019, net of tax	$	(221)	$	(104)	$	(63)	$	(388)

OCI, net of tax

Gains (losses) arising during the year classified into AOCI, net of tax	39		(6)		(75)		(42)

(Gains) losses reclassified from AOCI, net of tax	—		14		5		19

	39		8		(70)		(23)

Balance at December 31, 2020, net of tax	$	(182)	$	(96)	$	(133)	$	(411)

OCI, net of tax

Gains (losses) arising during the year classified into AOCI, net of tax	(24)		50		25		51

(Gains) losses reclassified from AOCI, net of tax	—		12		23		35

	(24)		62		48		86

Balance at December 31, 2021, net of tax	$	(206)	$	(34)	$	(85)	$	(325)

(a) Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2021 include amortization of net losses of $12 million, amortization of prior service cost of $5 million and related income tax benefit of $4 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2020 include amortization of net losses of $14 million, amortization of prior service cost of $4 million and related income tax benefit of $4 million. See Note 15.

(b) See Note 13 for details on amounts reclassified from AOCI.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

U.S. and foreign income before taxes are set forth below:


	2021		2020		2019
U.S.	$	1,062	$	684	$	466
Foreign	612		336		907
	$	1,674	$	1,020	$	1,373

The details of our income tax provision (benefit) are set forth below:


		2021		2020		2019
Current:	Federal	$	45	$	37	$	129
	Foreign	214		121		166
	State	40		23		16
		$	299	$	181	$	311

Deferred:	Federal	$	21	$	(21)	$	(16)
	Foreign	(227)		(29)		(213)
	State	6		(15)		(3)
		$	(200)	$	(65)	$	(232)
		$	99	$	116	$	79

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:


	2021		2020		2019
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax	1.8		1.0		0.9
Statutory rate differential attributable to foreign operations	(1.0)		(0.9)		0.9
Adjustments to reserves and prior years	1.1		(1.7)		2.3
Excess tax benefits from stock-based awards	(2.7)		(3.4)		(3.6)
Change in valuation allowances	(0.8)		(2.5)		(0.6)
Intercompany restructuring	(11.3)		(0.3)		(16.6)
Nondeductible interest	1.4		—		—
Impact of tax law changes	(3.8)		(2.5)		—
Other, net	0.2		0.7		1.4
Effective income tax rate	5.9	%	11.4	%	5.7	%

Statutory rate differential attributable to foreign operations. This item includes local country taxes, withholding taxes, and shareholder-level taxes, net of U.S. foreign tax credits. In 2021, this item was favorably impacted by the ongoing effects of the KFC Europe Reorganization (as described below). This was partially offset by the unfavorable impact of recording deferred tax liabilities associated with unremitted foreign earnings. In 2021 and 2020, this item was favorably impacted by the ongoing effects of the 2019 Intercompany Restructuring (as described below).

Adjustments to reserves and prior years. This item includes: (1) changes in tax reserves, including interest thereon, established for potential exposure we may incur if a taxing authority takes a position on a matter contrary to our position; and (2) the effects of reconciling income tax amounts recorded in our Consolidated Statements of Income to amounts reflected on our tax returns, including any adjustments to the Consolidated Balance Sheets. In 2021, this item was unfavorably impacted by a $22 million reserve established due to a challenge of a prior year filing position in a foreign jurisdiction. In 2020, this item was favorably impacted by $11 million of adjustments made to current and deferred tax accounts in various jurisdictions to align with balances supported by 2019 and prior tax filings. Additionally, in 2020 this item was favorably impacted by a $6 million tax benefit associated with a state settlement. In 2019, this item was unfavorably impacted by $34 million in reserves related to taxes recorded associated with a prior year divestiture and $18 million of tax expense related to the establishment of reserves associated with the inclusion of stock based compensation in cost sharing arrangements as well as other matters. This unfavorable impact was partially offset by the reversal of a $20 million reserve established in 2018 due to the favorable resolution of an income tax rate dispute in a foreign jurisdiction.

Excess tax benefits from stock-based awards. 2021, 2020 and 2019 includes $46 million, $35 million and $49 million, respectively, of excess federal tax benefit related to share-based compensation.

Change in valuation allowances. This item relates to changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of using deferred tax assets that existed at the beginning of the year. In 2021, this item was favorably impacted by $15 million of tax benefit associated with a valuation allowance release resulting from a change in management’s judgment as to the realizability of foreign tax credit carryforwards in the U.S. In 2020, this item was favorably impacted by $22 million of tax benefit associated with a valuation allowance release in a foreign jurisdiction resulting from a change in management’s judgement as to realizability of indefinite lived tax loss carryforwards in that jurisdiction.

Intercompany Restructuring.

KFC Europe Reorganization - In July 2021, we concentrated management responsibility for European (excluding the UK) KFC franchise development, support operations and management oversight in Switzerland. Concurrent with this change in management responsibility, we have completed intra-entity transfers of certain KFC IP rights from subsidiaries in the UK to subsidiaries in Switzerland. With the transfers of these rights, we received a step-up in amortizable tax basis to current fair value under applicable Swiss tax law. As a result of this transfer, we recorded a one-time net deferred tax benefit of $152 million.

In December 2021, we continued our KFC Europe Reorganization and completed intra-entity transfers of additional European KFC IP rights from subsidiaries in the U.S. to subsidiaries in Switzerland. With the transfers of these additional rights, we received a step-up in amortizable tax basis to current fair value under applicable Swiss tax law. As a result of this transfer, we recorded a net one-time tax benefit of $35 million.

2019 Intercompany Restructuring - In December 2019, the Company completed an intercompany restructuring that resulted in the transfer of certain IP rights held by wholly owned foreign subsidiaries primarily to the U.S. and the UK. The IP rights transferred to the UK resulted in a step up in the tax basis for UK tax purposes resulting in a deferred tax asset of $586 million. The deferred tax asset was analyzed for realizability and a valuation allowance of $366 million was established representing the portion of the deferred tax asset not likely to be realized. The recognized tax benefit of $220 million is amortizable for UK tax purposes over a twenty-year period. The transfer of certain IP rights to other non-UK jurisdictions in 2019 resulted in the recording of deferred tax assets of $13 million and related valuation allowances of $7 million for deferred tax assets that are not likely to be realized, for a net tax benefit of $6 million.

Nondeductible Interest. As a result of the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Act”) on December 22, 2017, deductibility of U.S. interest expense was limited to 30% of U.S. Earnings Before Interest, Taxes, Depreciation and Amortization in 2021. In 2021, the Company recorded $23 million of tax expense associated with disallowed U.S. interest expense. Although the disallowed interest can be carried forward, in management’s judgment it is not expected to be realizable in the future. Due to legislative relief provisions applicable to the 2019 and 2020 tax years contained within the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Company was not impacted by the interest expense limitation in 2019 or 2020. Beginning in 2022, deductibility of U.S. interest expense will be limited to 30% of U.S. Earnings Before Interest and Taxes, which will unfavorably impact our effective tax rate.

Impact of Tax Law Changes.

UK Tax Rate Change – On June 10, 2021, the UK Finance Act 2021 was enacted resulting in an increase in the UK corporate tax rate from 19% to 25%. As such, the Company recognized a $64 million tax benefit in the quarter ended June 30, 2021 associated with remeasuring its deferred tax assets in the UK from 19% to 25%. These deferred tax assets were primarily related to the step-up in tax basis associated with the 2019 Intercompany Restructuring.

On July 22, 2020, the UK Finance Act 2020 was enacted resulting in an increase in the UK corporate tax rate from 17% to 19%. As such, the Company recognized a $25 million tax benefit in 2020 associated with remeasuring its deferred tax assets in the UK from 17% to 19%. These deferred tax assets were primarily related to the step-up in tax basis associated with the 2019 Intercompany Restructuring.

Other. This item primarily includes the net impact of permanent differences related to current year earnings, U.S. tax credits, and other individually insignificant items impacting income tax expense.

Companies subject to the Global Intangible Low-Taxed Income provision (GILTI) have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for outside basis temporary differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.

The details of 2021 and 2020 deferred tax assets (liabilities) are set forth below:


	2021		2020
Operating losses and interest deduction carryforwards	$	186	$	181
Capital losses	72		3
Tax credit carryforwards	194		226
Employee benefits	68		82
Share-based compensation	51		58
Lease-related liabilities	236		199
Accrued liabilities and other	52		47
Derivative instruments	—		50
Intangible assets	560		678
Property, plant and equipment	35		31
Deferred income	87		81
Gross deferred tax assets	1,541		1,636
Deferred tax asset valuation allowances	(462)		(789)
Net deferred tax assets	$	1,079	$	847
Intangible assets, including goodwill	$	(3)	$	(1)
Property, plant and equipment	(85)		(75)
Operating lease right-of-use assets	(200)		(161)
Employee benefits	(24)		(15)
Other	(51)		(42)
Gross deferred tax liabilities	$	(363)	$	(294)
Net deferred tax assets (liabilities)	$	716	$	553

The details of the 2021 valuation allowance activity are set forth below:


	2021		2020
Beginning of Year	$	(789)	$	(787)
Increases	(31)		(64)
Decreases	355		45
Other Adjustments	3		17
End of Year	$	(462)	$	(789)

Reported in Consolidated Balance Sheets as:


	2021		2020
Deferred income taxes	$	724	$	553
Other liabilities and deferred credits	(8)		—
	$	716	$	553

As of December 31, 2021, we had approximately $3.6 billion of unremitted foreign retained earnings. The Tax Act imposed U.S. federal tax on all post-1986 foreign Earnings and Profits accumulated through December 31, 2017. Repatriation of earnings generated after December 31, 2017, will generally be eligible for the 100% dividends received deduction or considered a distribution of previously taxed income and, therefore, exempt from U.S. federal tax. Undistributed foreign earnings may still be subject to certain state and foreign income and withholding taxes upon repatriation. Subject to limited exceptions, we do not intend to indefinitely reinvest our unremitted earnings outside the U.S. Thus, we have provided taxes, including any U.S. federal and state income, foreign income, or foreign withholding taxes on the majority of our unremitted earnings. In jurisdictions where we do intend to indefinitely reinvest our unremitted earnings, we would be required to accrue and pay applicable income taxes (if any) and foreign withholding taxes if the funds were repatriated in taxable transactions. We believe any such taxes would be immaterial.

Details of tax loss, credit carryforwards, and expiration dates along with valuation allowances as of December 31, 2021, are as follows:


	Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration
Federal net operating losses	$	18	$	4	$	—	2036-2037
Federal net operating losses - Indefinite	61		13		—		None
Foreign net operating losses	59		12		(11)		2022-2037
Foreign net operating losses - Indefinite	229		59		(35)		None
State net operating losses	1,408		59		(43)		2022-2040
Foreign capital loss carryforward - Indefinite	289		72		(72)		None
Foreign tax credits	187		187		(172)		2026-2030
State tax credits	7		7		(5)		2023
Federal interest deduction carryforward - Indefinite	81		17		(8)		None
State interest deduction carryforward - Indefinite	487		22		(21)		None
	$	2,826	$	452	$	(367)

We recognize the benefit of positions taken or expected to be taken in tax returns in the Consolidated Financial Statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement.

At December 31, 2021, the Company had $116 million of gross unrecognized tax benefits, $75 million of which would impact the effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits follows:


	2021		2020
Beginning of Year	$	175	$	188
Additions on tax positions - current year	13		5
Additions for tax positions - prior years	41		34
Reductions for tax positions - prior years	(110)		(22)
Reductions for settlements	(3)		(30)
Reductions due to statute expiration	—		—
Foreign currency translation adjustment	—		—
End of Year	$	116	$	175

The Company believes it is reasonably possible that its unrecognized tax benefits as of December 31, 2021, may decrease by approximately $3 million in the next 12 months due to settlements or statute of limitations expirations.

During 2021, 2020, and 2019 the Company recognized $4 million, $2 million and $13 million of net expense, respectively, for interest and penalties in our Consolidated Statements of Income as components of its Income tax provision.

At December 31, 2021 and 2020, the Company has recorded $3 million and $1 million of net tax receivables, respectively, associated with interest and penalties.

The Company’s income tax returns are subject to examination in the U.S. federal jurisdiction and numerous U.S. state and foreign jurisdictions.

The Company has settled audits with the IRS through fiscal year 2012 and is currently under IRS examination for 2013-2018. Our operations in certain foreign jurisdictions remain subject to examination for tax years as far back as 2006, some of which years are currently under audit by local tax authorities. See Note 20 for discussion of an Internal Revenue Service Proposed Adjustment.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Reportable Operating Segments

Reportable Operating Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

See Note 1 for a description of our operating segments.


	Revenues
	2021		2020		2019
KFC Division(a)	$	2,793	$	2,272	$	2,491
Taco Bell Division(a)	2,238		2,031		2,079
Pizza Hut Division(a)	1,028		1,002		1,027
Habit Burger Grill Division(a)	525		347		—
	$	6,584	$	5,652	$	5,597


	Operating Profit
	2021		2020		2019
KFC Division	$	1,230	$	922	$	1,052
Taco Bell Division	758		696		683
Pizza Hut Division	387		335		369
Habit Burger Grill Division	2		(22)		—
Corporate and unallocated G&A expenses(b)(c)	(260)		(312)		(188)
Unallocated Franchise and property expenses(b)(d)	1		(4)		(14)
Unallocated Refranchising gain (loss)(b)	35		34		37
Unallocated Other income (expense)(b)(e)	(14)		(146)		(9)
Operating Profit	2,139		1,503		1,930
Investment income (expense), net(b)	86		74		(67)
Other pension income (expense)(b)	(7)		(14)		(4)
Interest expense, net(b)	(544)		(543)		(486)
Income before income taxes	$	1,674	$	1,020	$	1,373


	Depreciation and Amortization
	2021		2020		2019
KFC Division	$	28	$	29	$	30
Taco Bell Division	53		56		59
Pizza Hut Division	32		24		15
Habit Burger Grill Division	28		25		—
Corporate	23		12		8
	$	164	$	146	$	112


	Capital Spending
	2021		2020		2019
KFC Division	$	60	$	59	$	81
Taco Bell Division	62		42		76
Pizza Hut Division	18		28		33
Habit Burger Grill Division	56		16		—
Corporate	34		15		6
	$	230	$	160	$	196


	Identifiable Assets(g)
	2021		2020
KFC Division	$	2,313	$	2,011
Taco Bell Division	1,397		1,387
Pizza Hut Division	850		804
Habit Burger Grill Division	586		537
Corporate(f)	820		1,113
	$	5,966	$	5,852


	Long-Lived Assets(h)
	2021		2020
KFC Division	$	1,069	$	1,160
Taco Bell Division	904		925
Pizza Hut Division	423		415
Habit Burger Grill Division	516		458
Corporate	120		68
	$	3,032	$	3,026

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $3.6 billion in 2021, $3.2 billion in 2020 and $3.0 billion in 2019.

(b) Amounts have not been allocated to any segment for performance reporting purposes.

(c) Amounts in 2020 include charitable contributions to Yum! Brands Foundation, Inc. of $50 million and $25 million related to our Unlocking Opportunity Initiative and COVID-19 employee relief, respectively. Additionally, 2020 includes $36 million for charges associated with resource optimization (see Note 5).

(d) Represents costs related to an agreement executed in May 2017 with our Pizza Hut U.S. franchisees to improve brand marketing alignment, accelerate enhancements in operations and technology and that included a permanent commitment to incremental advertising as well as digital and technology contributions by franchisees (the “Pizza Hut U.S. Transformation Agreement”).

(e) Unallocated Other income (expense) in 2020 includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 3).

(f) Primarily includes cash and deferred tax assets.

(g) U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion and $3.0 billion in 2021 and 2020, respectively.

(h) Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Commitments and Contingencies Disclosure [Abstract]

Contingencies

12 Months Ended

Dec. 31, 2021

Legal Matters and Contingencies

Contingencies

Internal Revenue Service Proposed Adjustment

As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, on October 13, 2021, we received a Notice of Proposed Adjustment (“NPA”) from the IRS for the 2014 fiscal year relating to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these reorganizations involved taxable distributions of approximately $6.0 billion. We expect to receive the final Revenue Agent’s Report (“RAR”) including the IRS’s calculation of the tax assessment in early 2022. The amount of additional tax that may be asserted by the IRS in the RAR cannot be quantified at this time; however, based on the NPA, the amount of additional tax to be proposed is expected to be material. We disagree with the IRS’s position as asserted in the NPA and intend to contest it vigorously by filing a protest disputing on multiple grounds any proposed taxes and proceeding to the IRS Office of Appeals.

The final resolution of this matter is uncertain, but the Company believes that it is more likely than not the Company’s tax position will be sustained; therefore no reserve is recorded with respect to this matter. An unfavorable resolution of this matter could have a material, adverse impact on our Consolidated Financial Statements in future periods.

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 December 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 December 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. Accordingly, the liability recorded for our expected exposure under such leases at both December 31, 2021 and 2020 was not material.

Insurance Programs

We are self-insured for a substantial portion of our current and prior years’ coverage including property and casualty losses. To mitigate the cost of our exposures for certain property and casualty losses, we self-insure the risks of loss up to defined maximum per occurrence retentions on a line-by-line basis. The Company then purchases insurance coverage, up to a certain limit, for losses that exceed the self-insurance per occurrence retention. The insurers’ maximum aggregate loss limits are significantly above our actuarially determined probable losses; therefore, we believe the likelihood of losses exceeding the insurers’ maximum aggregate loss limits is remote.

The following table summarizes the 2021 and 2020 activity related to our net self-insured property and casualty reserves as of December 31, 2021.


	Beginning Balance		Habit Acquisition(a)	Expense	Payments	Ending Balance
2021 Activity	$	50	—	23	(25)	$	48
2020 Activity	$	54	6	13	(23)	$	50

(a) Represents self-insurance liabilities assumed as part of our acquisition of Habit Burger Grill. See Note 3.

Due to the inherent volatility of actuarially determined property and casualty loss estimates, it is reasonably possible that we could experience changes in estimated losses which could be material to our growth in quarterly and annual Net Income. We believe that we have recorded reserves for property and casualty losses at a level which has substantially mitigated the potential negative impact of adverse developments and/or volatility.

In the U.S. and in certain other countries, we are also self-insured for healthcare claims and long-term disability for eligible participating employees subject to certain deductibles and limitations. We have accounted for our retained liabilities for property and casualty losses, healthcare and long-term disability claims, including reported and incurred but not reported claims, based on information provided by independent actuaries.

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 now scheduled for March 4, 2022. 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 Consolidated Financial Statements.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventIn January 2022, the U.S. Treasury published new regulations impacting foreign tax credit utilization beginning in the Company’s 2022 tax year. These regulations make foreign taxes paid to certain countries no longer creditable in the U.S. As discussed in Note 18, we currently have foreign tax credit carryforwards of $187 million, on which there is a $172 million valuation allowance. We anticipate that these regulations will result in the utilization of some amount of our existing prior year foreign tax credit carryforwards and that a corresponding amount of the existing valuation allowance will be released in the first quarter of 2022. While our determination of which foreign taxes that will no longer be creditable is not yet complete, we anticipate that the amount of valuation allowance to be released could be significant. Further, we anticipate that these regulations will result in additional cash tax due in the U.S. in future years once all existing foreign tax credit carryforwards have either been utilized or have expired. Subject to finalizing our review, we estimate we could be subject to incremental cash taxes as early as 2028.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Preparation

Principles of Consolidation and Basis of Preparation. Intercompany accounts and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it.

Our most significant variable interests are in certain entities that operate restaurants under our Concepts’ franchise arrangements. We do not typically provide significant financial support such as loans or guarantees to our franchisees. Thus, our most significant variable interests in franchisees result from real estate lease arrangements to which we are a party. At the end of 2021, YUM has future lease payments due from certain franchisees, on a nominal basis, of approximately $1 billion, and we are secondarily liable on certain other lease agreements that have been assigned to certain franchisees. See the Lease Guarantees section in Note 20. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

We do not have an equity interest in any of our franchisee businesses except for a minority interest in an entity, Devyani International Limited (“Devyani”), that owns our KFC India and Pizza Hut India master franchisee rights, a minority interest in an entity that owns our KFC Brazil and Pizza Hut Brazil master franchisee rights and a minority interest in an entity that operates Taco Bell franchised units in India. These minority interests do not give us the ability to significantly influence these entities. We account for our investment in Devyani and the entity that owns our KFC Brazil and Pizza Hut Brazil master franchisee rights as equity securities. When the fair value of these equity securities is readily determinable we record changes in

fair value in Investment (income) expense, net. When the fair value of these equity securities is not readily determinable we apply the measurement alternative in accordance with Accounting Standards Codification (“ASC”) Topic 321 and, when applicable, record fair value changes from observable prices as well as impairment in Investment (income) expense, net. We account for our investment in the entity that operates Taco Bell units in India as an available-for-sale debt security. This available-for-sale debt security is carried at fair value with unrealized gains and losses, net of tax, included as a component of Other comprehensive income (loss), on the Consolidated Statements of Comprehensive Income.We participate in various advertising cooperatives with our franchisees, typically within a country where we have both Company-owned restaurants and franchise restaurants, established to collect and administer funds contributed for use in advertising and promotional programs designed to increase sales and enhance the reputation of the Company and our Concepts. Contributions to the advertising cooperatives are required for both Company-owned and franchise restaurants and are generally based on a percentage of restaurant sales. We maintain certain variable interests in these cooperatives. As the cooperatives are required to spend all funds collected on advertising and promotional programs, total equity at risk is not sufficient to permit the cooperatives to finance their activities without additional subordinated financial support. Therefore, these cooperatives are VIEs. As a result of our voting rights, we consolidate certain of these cooperatives for which we are the primary beneficiary.

Fiscal Year

Fiscal Year. 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 Habit Burger Grill subsidiaries operate 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 remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates.

Fiscal year 2019 included 53 weeks for our U.S. businesses and for our international subsidiaries that reported on a period calendar. The 53rd week added $66 million to Total revenues, $24 million to Operating Profit and $17 million to Net Income in our 2019 Consolidated Statement of Income.

Our next fiscal year scheduled to include a 53rd week for our period calendar reporters is 2024.

Foreign Currency

Foreign Currency. The functional currency of our foreign entities is the currency of the primary economic environment in which the entity operates. Functional currency determinations are made based upon a number of economic factors, including but not limited to cash flows and financing transactions. The operations, assets and liabilities of our entities outside the U.S. are initially measured using the functional currency of that entity. Income and expense accounts for our operations of these foreign entities are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities of these foreign entities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. As of December 31, 2021, net cumulative translation adjustment losses of $206 million are recorded in Accumulated other comprehensive income ("AOCI") in the Consolidated Balance Sheet.

The majority of our foreign currency net asset exposure is in countries where we have Company-owned restaurants. As we manage and share resources at the individual brand level within a country, cumulative translation adjustments are recorded and tracked at the foreign-entity level that represents the operations of our individual brands within that country. Translation adjustments recorded in AOCI are subsequently recognized as income or expense generally only upon sale of the related investment in a foreign entity, or upon a sale of assets and liabilities within a foreign entity that represents a complete or substantially complete liquidation of that foreign entity. For purposes of determining whether a sale or complete or substantially complete liquidation of an investment in a foreign entity has occurred, we consider those same foreign entities for which we record and track cumulative translation adjustments.

Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in Other (income) expense in our Consolidated Statements of Income.

Reclassifications

Reclassifications. We have reclassified certain items in the Consolidated Financial Statements for prior periods to be comparable with the classification for the fiscal year ended December 31, 2021. These reclassifications had no effect on previously reported Net Income.

Revenue Recognition

Revenue Recognition. Below is a discussion of how our revenues are earned, our accounting policies pertaining to revenue recognition under ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) and other required disclosures.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue transaction and collected from a customer are excluded from revenue.

Company Sales

Revenues from the sale of food items by Company-owned restaurants are recognized as Company sales when a customer purchases the food, which is when our obligation to perform is satisfied.

Franchise and Property Revenues

Franchise Revenues

Our most significant source of revenues arises from the operation of our Concepts' stores by our franchisees. Franchise rights may be granted through a store-level franchise agreement or through a master franchise agreement that sets out the terms of our arrangement with the franchisee. Our franchise agreements require that the franchisee remit continuing fees to us as a percentage of the applicable restaurant’s sales in exchange for the license of the intellectual property associated with our Concepts' brands (the “franchise right”). Our franchise agreements also typically require certain, less significant, upfront franchise fees such as initial fees paid upon opening of a store, fees paid to renew the term of the franchise right and fees paid in the event the franchise agreement is transferred to another franchisee.

Continuing fees represent the substantial majority of the consideration we receive under our franchise agreements. Continuing fees are typically billed and paid monthly and are usually 4% - 6% for store-level franchise agreements. Master franchise agreements allow master franchisees to operate restaurants as well as sub-franchise restaurants within certain geographic territories. The percentage of sales that we receive for restaurants owned or sub-franchised by our master franchisees as a continuing fee is typically less than the percentage we receive for restaurants operating under a store-level franchise agreement. Based on the application of the sales-based royalty exception within Topic 606 continuing fees are recognized as the related restaurant sales occur.

Upfront franchise fees are typically billed and paid when a new franchise or sub-franchise agreement becomes effective or when an existing agreement is transferred to another franchisee or sub-franchisee. We have determined that the services we provide in exchange for upfront franchise fees, which primarily relate to pre-opening support, are highly interrelated with the franchise right and are not individually distinct from the ongoing services we provide to our franchisees. As a result, upfront franchise fees are recognized as revenue over the term of each respective franchise or sub-franchise agreement. Revenues for these upfront franchise fees are recognized on a straight-line basis, which is consistent with the franchisee’s or sub-franchisee's right to use and benefit from the intellectual property.

Additionally, from time-to-time we provide consideration to franchisees in the form of cash (e.g. cash payments to offset new build costs) or other incentives (e.g. free or subsidized equipment) with the intent to drive new unit development or same-store sales growth that will result in higher future revenues for the Company. Such payments are capitalized and presented within Prepaid expense and other current assets or Other assets. These assets are being amortized as a reduction in Franchise and property revenues over the period of expected cash flows from the franchise agreements to which the payment relates.

Property Revenues

From time to time, we enter into rental agreements with franchisees for the lease or sublease of restaurant locations. These rental agreements typically originate from refranchising transactions and revenues related to the agreements are recognized as they are earned. Amounts owed under the rental agreements are typically billed and paid on a monthly basis. Related expenses are presented as Franchise and property expenses within our Consolidated Statements of Income and primarily include depreciation or, in the case of a sublease, rental expense.

Franchise Contributions for Advertising and Other Services

Advertising Cooperatives

We have determined we act as a principal in the transactions entered into by the advertising cooperatives we are required to consolidate based on our responsibility to define the nature of the goods or services provided and/or our commitment to pay for advertising services in advance of the related franchisee contributions. Additionally, we have determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. Franchisees remit to these consolidated advertising cooperatives a percentage of restaurant sales as consideration for providing the advertising services. As a result, revenues for advertising services are recognized when the related franchise restaurant sales occur based on

the application of the sales-based royalty exception within Topic 606. Revenues for these services are typically billed and received on a monthly basis.

Other Goods or Services

On a much more limited basis, we provide goods or services to certain franchisees that are individually distinct from the franchise right because they do not require integration with other goods or services we provide. Such arrangements typically relate to technology, supply chain and quality assurance services. The extent to which we provide such goods or services varies by brand, geographic region and, in some instances, franchisee. In instances where we rely on third parties to provide goods or services to franchisees at our direction, we have determined we act as a principal in these transactions. These revenues are recognized as the goods or services are transferred to the franchisee.

Direct Marketing Costs

Advertising Costs. To the extent we participate in advertising cooperatives, we, like our participating franchisees, are required to make contributions. Our contributions are based on a percentage of sales of our participating Company restaurants. These contributions as well as direct marketing costs we may incur outside of a cooperative related to Company restaurants are recorded within Company restaurant expenses. Advertising expense included in Company restaurant expenses totaled $84 million, $68 million and $73 million in 2021, 2020 and 2019, respectively.

To the extent we consolidate advertising cooperatives, we incur advertising expense as a result of our obligation to spend franchisee contributions to those cooperatives (see above for our accounting for these contributions). Such advertising expense is recorded in Franchise advertising and other services expense and totaled $1,264 million, $1,079 million and $1,133 million in 2021, 2020 and 2019, respectively. At the end of each fiscal year additional advertising costs are accrued to the extent advertising revenues exceed the related advertising expense to date, as we are obligated to expend such amounts on advertising.

From time to time, we may make the decision to incur discretionary advertising expenditures on behalf of franchised restaurants. Such amounts are recorded within Franchise and property expenses and totaled $11 million, $10 million and $10 million in 2021, 2020 and 2019, respectively.

To the extent the advertising cooperatives we are required to consolidate are unable to collect amounts due from franchisees they incur bad debt expense. In 2021 and 2020 we recorded $6 million and $7 million in net recoveries, respectively, and in 2019 we recorded $19 million in net provisions, within Franchise advertising and other services expense related to recoveries on and provisions for uncollectible franchisee receivables. To the extent our consolidated advertising cooperatives have a provision or recovery for bad debt expense, the cooperative’s advertising spend obligation is adjusted such that there is no net impact within our Financial Statements.

Share-Based Employee Compensation

Share-Based Employee Compensation. We recognize ongoing share-based payments to employees, including grants of employee stock options and stock appreciation rights (“SARs”), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest. Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in either Company restaurant expenses or G&A. See Note 16 for further discussion of our share-based compensation plans.

Legal Costs

Legal Costs. Settlement costs are accrued when they are deemed probable and reasonably estimable. Anticipated legal fees related to self-insured workers' compensation, employment practices liability, general liability, automobile liability, product liability and property losses (collectively, "property and casualty losses") are accrued when deemed probable and reasonably estimable. Legal fees not related to self-insured property and casualty losses are recognized as incurred. See Note 20 for further discussion of our legal proceedings.

Impairment or Disposal of Property, Plant and Equipment

Impairment or Disposal of Long-Lived Assets. Long-lived assets, including Property, plant and equipment (“PP&E”) as well as right-of-use operating lease assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The assets are not recoverable if their carrying value is less than the undiscounted cash flows we expect to generate from such assets. If the assets are not deemed to be recoverable, impairment is measured based on the excess of their carrying value over their fair value.

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless it is more likely than not that we will refranchise restaurants as a group. We review our long-lived assets of such individual restaurants (primarily PP&E, right-of-use operating lease assets and allocated intangible assets subject to amortization) that we intend to continue operating as Company restaurants annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses as our primary indicator of potential impairment for our annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets. For restaurant assets that are not deemed to be recoverable, we write-down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Fair value is an estimate of the price a franchisee would pay for the restaurant and its related assets, including any right-of-use assets, and is determined by discounting the estimated future after-tax cash flows of the restaurant, which include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make such as sales growth and margin improvement. The discount rate used in the fair value calculation is our estimate of the required rate of return that a franchisee would expect to receive when purchasing a similar restaurant and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. Individual restaurant-level impairment is recorded within Other (income) expense. Any right-of-use asset may alternatively be valued at the amount we could receive for such right-of-use asset from a third-party that is not a franchisee through a sublease if doing so would result in less overall impairment of the restaurant assets in total.

In executing our refranchising initiatives, we most often offer groups of restaurants for sale. When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment. We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants. For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds. To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates or rental payments, not at prevailing market rates, we consider the off-market terms in our impairment evaluation. We recognize any such impairment charges in Refranchising (gain) loss. We recognize gains on restaurant refranchisings when the sale transaction closes and control of the restaurant operations have transferred to the franchisee.

When we decide to close a restaurant, it is reviewed for impairment, which includes an estimate of sublease income that could be reasonably obtained, if any, in relation to the right-of-use operating lease asset. Additionally, depreciable lives are adjusted based on the expected disposal date. Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses from previously closed stores are generally expensed as incurred. Any costs recorded upon store closure as well as any subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination or changes in estimates of sublease income are recorded in Other (income) expense. To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Other (income) expense.

Management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, sublease income and refranchising proceeds. Accordingly, actual results could vary significantly from our estimates.

Guarantees

Guarantees. We recognize, at inception of a guarantee, a liability for the fair value of certain obligations undertaken. Additionally, effective January 1, 2020, we adopted the Financial Accounting Standards Board’s Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (“Topic 326”) which required that we also recognize as a liability the expected credit losses over the life of such guarantees. As a result of the adoption of Topic 326, we recorded a cumulative adjustment to Accumulated deficit of $8 million to establish such expected credit loss liability for our outstanding guarantees. The majority of our guarantees are issued as a result of assigning our interest in obligations under operating leases as a condition to the refranchising of certain Company restaurants. We recognize a liability for such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain secondarily liable. The related expense and any subsequent changes are included in Refranchising (gain) loss. Any expense and subsequent changes in the guarantees for other franchise support guarantees not associated with a refranchising transaction are included in Franchise and property expenses.

Income Taxes

Income Taxes. We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our Income tax provision in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.

We recognize the benefit of positions taken or expected to be taken in our tax returns in our Income tax provision when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement with the taxing authorities. We evaluate these amounts on a quarterly basis to ensure that they have been appropriately adjusted for audit settlements and other events we believe may impact the outcome. Changes in judgment that result in subsequent recognition, derecognition or a change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our Income tax provision.

We do not record a deferred tax liability for unremitted earnings of our foreign subsidiaries to the extent that the earnings meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the earnings indefinitely. The decision as to the amount of unremitted earnings that we intend to maintain in non-U.S. subsidiaries considers items including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the U.S.

See Note 18 for a further discussion of our income taxes.

Fair Value Measurements

Fair Value Measurements. Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities we record or disclose at fair value, we determine fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.


Level 1			Inputs based upon quoted prices in active markets for identical assets.

Level 2			Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3			Inputs that are unobservable for the asset.

Cash and Cash Equivalents

Cash and Cash Equivalents. Cash equivalents represent funds we have temporarily invested (with original maturities not exceeding three months), including short-term, highly liquid debt securities. Cash and overdraft balances that meet the criteria for right of setoff are presented net on our Consolidated Balance Sheet.

Receivables

Receivables. The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise agreements, including contributions due to advertising cooperatives we consolidate. These receivables

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 on our Consolidated Balance Sheet. Effective with the adoption of Topic 326 on January 1, 2020, our receivables are now stated net of expected credit losses. The impact to our net receivables as a result of adopting the standard was not significant. Expected credit losses for uncollectible franchisee receivable balances consider both current conditions and reasonable and supportable forecasts of future conditions. Current conditions we consider include pre-defined aging criteria as well as specified events that indicate we may not collect the balance due. Reasonable and supportable forecasts used in determining the probability of future collection consider publicly available data regarding default probability. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is dependent upon future economic events and other conditions that may be beyond our control. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.

We recorded $8 million of net bad debt recoveries in 2021 and $12 million and $24 million of net bad debt expense in 2020 and 2019, respectively, within Franchise and property expenses related to continuing fees, initial fees and rent receivables from our franchisees.

Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2021 and 2020, respectively, are as follows:


	2021		2020
Accounts and notes receivable	$	632	$	579
Allowance for doubtful accounts	(36)		(45)
Accounts and notes receivable, net	$	596	$	534

Our financing receivables primarily consist of notes receivables and direct financing leases with franchisees which we enter into from time-to-time. As these receivables primarily relate to our ongoing business agreements with franchisees, we consider such receivables to have similar risk characteristics and evaluate them as one collective portfolio segment and class for determining the allowance for doubtful accounts. Balances of notes receivable and direct financing leases due within one year are included in Accounts and notes receivable, net while amounts due beyond one year are included in Other assets. Amounts included in Other assets totaled $68 million (net of an allowance of less than $1 million) and $72 million (net of an allowance of less than $5 million) at December 31, 2021, and December 31, 2020, respectively. Financing receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. Interest income recorded on financing receivables has historically been insignificant.

Property, Plant and Equipment

Property, Plant and Equipment. PP&E is carried net of accumulated depreciation and amortization. We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows: 5 to 25 years for buildings and leasehold improvements and 3 to 20 years for machinery and equipment. We suspend depreciation and amortization on assets that are held for sale.

Leases and Leasehold Improvements

Leases and Leasehold Improvements. We adopted ASU No. 2016-02, Leases (“Topic 842”) as of the beginning of the year ended December 31, 2019, using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of 2019. The cumulative effect of this transition was recorded as an increase to Accumulated deficit of $2 million as of this date. We lease land, buildings or both for certain of our Company-operated restaurants and restaurant support centers worldwide. Rental expense for leased Company-operated restaurants is presented in our Consolidated Statements of Income within Company restaurant expenses and rental expense for restaurant support centers is presented within G&A. The length of our lease terms, which vary by country and often include renewal options, are an important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance or operating as well as the timing of recognition of rent expense over the duration of the lease. We include renewal option periods in determining the term of our leases when failure to renew the lease would impose a penalty on the Company in such an amount that a renewal appears to be reasonably certain at the commencement of the lease. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements that might be impaired if we choose not to continue the use of the leased property. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. We generally do not receive leasehold improvement incentives upon opening a store that is subject to a lease. We expense rent associated with leased land or buildings while a restaurant is being constructed whether rent is paid or we are subject to a rent holiday. Our leasing activity for other assets, including equipment, is not significant.

Right-of-use assets and liabilities are recognized upon lease commencement for operating and finance leases based on the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Subsequent amortization

of the right-of-use asset and accretion of the lease liability for an operating lease is recognized as a single lease cost, on a straight-line basis, over the lease term. For finance leases, the right-of-use asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. As most of our leases do not provide an implicit discount rate, we use our incremental secured borrowing rate based on the information available at commencement date, including the lease term and currency, in determining the present value of lease payments for both operating and finance leases. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Right-of-use assets are assessed for impairment in accordance with our long-lived asset impairment policy, which is performed annually for restaurant-level assets or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We reassess lease classification and remeasure right-of-use assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate new lease or upon certain other events that require reassessment. The difference between operating lease rental expense recognized in our Consolidated Statements of Income and cash payments for operating leases is recognized within Other, net within Net Cash Provided by Operating Activities in our Consolidated Statements of Cash Flows.

In certain instances, we lease or sublease certain restaurants to franchisees. Our lessor and sublease portfolio primarily consists of stores that have been leased to franchisees subsequent to refranchising transactions. Our most significant leases with lease and non-lease components are leases with our franchisees that include both the right to use a restaurant as well as a license of the intellectual property associated with our Concepts’ brands. For these leases, which are primarily classified as operating leases, we account for the lease and non-lease components separately. Revenues from rental agreements with franchisees are presented within Franchise and property revenues in our Consolidated Statements of Income and related expenses (e.g. depreciation and rent expense) are presented within Franchise and property expenses.

Goodwill and Intangible Assets

Goodwill and Intangible Assets. From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business. Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our reporting units are our business units (which are aligned based on geography) in our KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist. We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from Company-owned restaurant operations, if any, and franchise royalties. The discount rate is our estimate of the required rate of return that a third-party buyer would expect to receive when purchasing a business from us that constitutes a reporting unit. We believe the discount rate is commensurate with the risks and uncertainty inherent in the forecasted cash flows. An impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value.

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. If the restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained. The fair value of the portion of the reporting unit disposed of in a refranchising is determined by reference to the discounted value of the future cash flows expected to be generated by the restaurant and retained by the franchisee, which includes a deduction for the anticipated, future royalties the franchisee will pay us associated with the franchise agreement entered into simultaneously with the refranchising transition. The fair value of the reporting unit retained is based on the price a willing buyer would pay for the reporting unit and includes the value of franchise agreements. Appropriate adjustments are made if a franchise agreement includes terms that are determined to not be at prevailing market rates. As such, the fair value of the reporting unit retained can include expected cash flows from future royalties from those restaurants currently being refranchised, future royalties from existing franchise businesses and company restaurant operations. As a result, the percentage of a reporting unit’s goodwill that will be written off in a refranchising transaction will be less than the percentage of the reporting unit’s Company-owned restaurants that are refranchised in that transaction and goodwill can be allocated to a reporting unit with only franchise restaurants.

We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. Intangible assets that are deemed to have a definite life are amortized on a straight-line basis to their residual value.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset's fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is estimated by discounting the expected future after-tax cash flows associated with the intangible asset.

Our definite-lived intangible assets that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed not recoverable on an undiscounted basis is written down to its estimated fair value, which is our estimate of the price a willing buyer would pay for the intangible asset based on discounted expected future after-tax cash flows. For purposes of our impairment analysis, we update the cash flows that were initially used to value the definite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life.

Capitalized Software. We state capitalized software at cost less accumulated amortization within Intangible assets, net on our Consolidated Balance Sheets. We calculate amortization on a straight line basis over the estimated useful life of the software which ranges from 3 to 7 years upon initial capitalization.

Derivative Financial Instruments

Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks, and to reduce our exposure to market-driven charges in certain of the liabilities associated with employee compensation deferrals into our Executive Income Deferral (“EID”) Plan. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our Consolidated Balance Sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately.

As a result of the use of derivative instruments, 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 carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At December 31, 2021 and December 31, 2020, all of the counterparties to our interest rate swaps and foreign currency forwards had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

Common Stock Share Repurchases

Common Stock Share Repurchases. From time-to-time, we repurchase shares of our Common Stock under share repurchase programs authorized by our Board of Directors. Shares repurchased constitute authorized, but unissued shares under the North Carolina laws under which we are incorporated. Additionally, our Common Stock has no par or stated value. Accordingly, we record the full value of share repurchases, or other deductions to Common Stock such as shares cancelled upon employee share-based award exercises, upon the trade date, against Common Stock on our Consolidated Balance Sheet except when to do so would result in a negative balance in such Common Stock account. In such instances, on a period basis, we record the cost of any further share repurchases, or other deductions to Common Stock as an addition to Accumulated deficit. Due to the large number of share repurchases of our stock over the past several years, our Common Stock balance is frequently zero at the end of any period. Accordingly, $1,549 million, $179 million and $796 million in share repurchases in 2021, 2020 and 2019, respectively, were recorded as an addition to Accumulated deficit. Additionally, $18 million related to shares cancelled upon employee share-based award exercises in 2019 were recorded as an addition to Accumulated deficit. See Note 17 for additional information on our share repurchases.

Accounts and notes receivable, net

Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2021 and 2020, respectively, are as follows:


	2021		2020
Accounts and notes receivable	$	632	$	579
Allowance for doubtful accounts	(36)		(45)
Accounts and notes receivable, net	$	596	$	534

Pension and Post-retirement Medical Benefits

Pension and Post-retirement Medical Benefits. We measure and recognize the overfunded or underfunded status of our pension and post-retirement plans as an asset or liability in our Consolidated Balance Sheet as of our fiscal year end. The

funded status represents the difference between the projected benefit obligations and the fair value of plan assets, which is calculated on a plan-by-plan basis. The projected benefit obligation and related funded status are determined using assumptions as of the end of each year. The projected benefit obligation is the present value of benefits earned to date by plan participants, including the effect of future salary increases, as applicable. The difference between the projected benefit obligations and the fair value of plan assets that has not previously been recognized in our Consolidated Statement of Income is recorded as a component of AOCI.

The net periodic benefit costs associated with the Company's defined benefit pension and post-retirement medical plans are determined using assumptions regarding the projected benefit obligation and, for funded plans, the market-related value of plan assets as of the beginning of each year, or remeasurement period if applicable. We record the service cost component of net periodic benefit costs in G&A. Non-service cost components are recorded in Other pension (income) expense. We have elected to use a market-related value of plan assets to calculate the expected return on assets, net of administrative and investment fees paid from plan assets, in net periodic benefit costs. For each individual plan we amortize into pension expense the net amounts in AOCI, as adjusted for the difference between the fair value and market-related value of plan assets, to the extent that such amounts exceed 10% of the greater of a plan’s projected benefit obligation or market-related value of assets, over the remaining service period of active participants in the plan or, for plans with no active participants, over the expected average life expectancy of the inactive participants in the plan. The market-related value of plan assets is the fair value of plan assets as of the beginning of each year adjusted for variances between actual returns and expected returns. We attribute such variances to the market-related value of plan assets evenly over five years.

We record a curtailment when an event occurs that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the future services of a significant number of employees. We record a curtailment gain when the employees who are entitled to the benefits terminate their employment; we record a curtailment loss when it becomes probable a loss will occur. We recognize settlement gains or losses only when we have determined that the cost of all settlements in a year will exceed the sum of the service and interest costs within an individual plan.

Franchise Support Costs

Franchise Support Costs. Certain direct costs of our franchise operations are charged to Franchise and property expenses. These costs include provisions for estimated uncollectible upfront and continuing fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, marketing funding on behalf of franchisees, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

The costs we incur to provide support services to our franchisees for which we do not receive a reimbursement are charged to General and administrative expenses (“G&A”) as incurred. Expenses related to the provisioning of goods or services for which we receive reimbursement for all or substantially all of the expense amount from a franchisee are recorded in Franchise advertising and other services expense (the associated revenue is recorded within Franchise contributions for advertising and other services as described above). The majority of these expenses relate to advertising and are incurred on behalf of franchisees by the advertising cooperatives we are required to consolidate. These expenses are accounted for as described in the Advertising Costs policy below. For such expenses that do not relate to advertising the expenses are recognized as incurred.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2021 and 2020, respectively, are as follows:


	2021		2020
Accounts and notes receivable	$	632	$	579
Allowance for doubtful accounts	(36)		(45)
Accounts and notes receivable, net	$	596	$	534

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Schedule of Business Acquisitions, by Acquisition


Total Current Assets	$	11
Property, plant and equipment, net	111
Habit Burger Grill brand (included in Intangible assets, net)	96
Operating lease right-of-use assets (included in Other assets)	196
Other assets	28
Total Assets	442
Total Current Liabilities	(68)
Operating lease liabilities (included in Other liabilities and deferred credits)	(170)
Total Liabilities	(238)
Total identifiable net assets	204
Goodwill	204
Net consideration transferred	$	408

Earnings Per Common Share ("EPS") (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share


	2021		2020		2019
Net Income	$	1,575	$	904	$	1,294
Weighted-average common shares outstanding (for basic calculation)	297		302		306
Effect of dilutive share-based employee compensation	5		5		7
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)	302		307		313

Basic EPS	$	5.30	$	2.99	$	4.23

Diluted EPS	$	5.21	$	2.94	$	4.14
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)	1.1		4.8		2.0

(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.

Items Affecting Comparability of Net Income and Cash Flows (Tables)

12 Months Ended

Dec. 31, 2021

Refranchising (gain) loss [Member]

Disaggregation of Revenue [Table Text Block]

Facility Actions

A summary of Refranchising (gain) loss is as follows:


	Refranchising (gain) loss
	2021		2020		2019
KFC Division	$	(1)	$	(33)	$	(6)
Taco Bell Division	(29)		(2)		(31)
Pizza Hut Division	1		1		—
Habit Burger Grill Division	(6)		—		—
Worldwide	$	(35)	$	(34)	$	(37)

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021


	2021
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	65	$	944	$	21	$	520	$	1,550
Franchise revenues	198		661		279		4		1,142
Property revenues	14		44		5		—		63
Franchise contributions for advertising and other services	28		545		317		1		891

China
Franchise revenues	235		—		62		—		297

Other
Company sales	531		—		25		—		556
Franchise revenues	1,049		37		249		—		1,335
Property revenues	61		—		2		—		63
Franchise contributions for advertising and other services	612		7		68		—		687
	$	2,793	$	2,238	$	1,028	$	525	$	6,584


	2020
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	60	$	882	$	21	$	346	$	1,309
Franchise revenues		184		593		272		1		1,050
Property revenues		16		44		5		—		65
Franchise contributions for advertising and other services		18		483		317		—		818

China
Franchise revenues		204		—		51		—		255

Other
Company sales		446		—		55		—		501
Franchise revenues		833		25		222		—		1,080
Property revenues		58		—		2		—		60
Franchise contributions for advertising and other services		453		4		57		—		514
		$	2,272	$	2,031	$	1,002	$	347	$	5,652

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]


	Deferred Franchise Fees
Balance at December 31, 2019	$	441
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(76)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	53
Other(a)	(3)
Balance at December 31, 2020	$	415
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(74)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	87
Other(a)	(7)
Balance at December 31, 2021	$	421

(a) Includes impact of foreign currency translation, as well as, in 2021, the recognition of deferred franchise fees into Refranchising (gain) loss upon the modification of existing franchise agreements when entering into master franchise agreements.

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	$	68
1 - 2 years	61
2 - 3 years	57
3 - 4 years	50
4 - 5 years	44
Thereafter	141
Total	$	421

Supplemental Cash Flow Data (Tables)

12 Months Ended

Dec. 31, 2021

Supplemental Cash Flow Elements [Abstract]

Cash paid for interest and income taxes, and significant non-cash investing and financing activities


	2021		2020		2019
Cash Paid For:
Interest(a)	$	474	$	480	$	497
Income taxes	308		328		283
Significant Non-Cash Investing and Financing Activities:
Non-cash refranchising proceeds(b)	—		31		6
Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
Cash and cash equivalents as presented in Consolidated Balance Sheets	$	486	$	730	$	605
Restricted cash included in Prepaid expenses and other current assets(c)	250		258		138
Restricted cash and restricted cash equivalents included in Other assets(d)	35		36		25
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows	$	771	$	1,024	$	768

(a)Amounts exclude payments of $28 million in both 2021 and 2020 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).

(b)In 2020 we received as refranchising consideration a minority interest in an entity (Devyani) that operates KFC and Pizza Hut franchised units in India (see Note 5) and in 2019 we received as refranchising consideration a minority interest in an entity that owns our KFC and Pizza Hut master franchisee rights in Brazil.

(c)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 cash held in reserve for Taco Bell Securitization interest payments (see Note 11).

(d)Primarily trust accounts related to our self-insurance programs.

Other (Income) Expense (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other (Income) Expense Table


	2021		2020		2019
Foreign exchange net (gain) loss and other(a)	$	(14)	$	(18)	$	(1)
Impairment and closure expense(b)	16		172		5
Other (income) expense	$	2	$	154	$	4

(a) The year ended December 31, 2019, includes a charge of $8 million for the settlement of contingent consideration associated with our 2013 acquisition of the KFC Turkey and Pizza Hut Turkey businesses.

(b) The year ended December 31, 2020, includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 3). The year ended December 31, 2020, also includes charges of $12 million related to the impairment of restaurant-level assets and charges of $11 million related to the write-off of software no longer being used.

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2021

Supplemental Balance Sheet Information Disclosure [Abstract]

Prepaid Expenses and Other Current Assets


Prepaid Expenses and Other Current Assets	2021		2020
Income tax receivable	$	50	$	35
Restricted cash	250		258
Assets held for sale(a)	12		7
Other prepaid expenses and current assets	138		125
Prepaid expenses and other current assets	$	450	$	425

Property, Plant and Equipment


Property, Plant and Equipment	2021		2020
Land	$	412	$	428
Buildings and improvements	1,403		1,423
Finance leases, primarily buildings	67		71
Machinery, equipment and other	595		543
Property, plant and equipment, gross	2,477		2,465
Accumulated depreciation and amortization	(1,270)		(1,230)
Property, plant and equipment, net	$	1,207	$	1,235

Schedule of Other Assets


Other Assets	2021		2020
Operating lease right-of-use assets	$	809	$	851
Franchise incentives	164		163
Investment in Devyani International Limited	118		31
Other	396		390
Other assets	$	1,487	$	1,435

Accounts Payable and Other Current Liabilities


Accounts Payable and Other Current Liabilities	2021		2020
Accounts payable	$	227	$	215
Accrued compensation and benefits	292		225
Accrued advertising	229		196
Operating lease liabilities	88		97
Accrued interest	78		73
Other current liabilities	420		383
Accounts payable and other current liabilities	$	1,334	$	1,189

(a) Assets held for sale reflect the carrying value of restaurants we have offered for sale to franchisees and excess properties that we do not intend to use for restaurant operations in the future.

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill are as follows:


	KFC		Taco Bell		Pizza Hut		Habit Burger Grill		Worldwide


















































Goodwill, net as of December 31, 2019(a)	$	233	$	98	$	199	$	—	$	530
Disposals and other, net(b)	2		—		3		—		5
Habit Burger Grill acquisition and impairment (See Note 3)	—		—		—		62		62
Goodwill, net as of December 31, 2020(a)	$	235	$	98	$	202	$	62	$	597
Acquisitions	—		—		—		10		10
Disposals and other, net(b)	(3)		—		(2)		(2)		(7)
Dragontail Systems acquisition (See Note 3)	—		—		57		—		57
Goodwill, net as of December 31, 2021(a)	$	232	$	98	$	257	$	70	$	657

(a)Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.

(b)Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class

Intangible assets, net for the years ended 2021 and 2020 are as follows:


	2021				2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets
Capitalized software costs	$	409	$	(214)	$	335	$	(160)
Reacquired franchise rights	41		(33)		39		(33)
Franchise contract rights	100		(88)		100		(85)
Other	53		(36)		53		(33)
	$	603	$	(371)	$	527	$	(311)

Indefinite-lived intangible assets
KFC trademark	$	31			$	31
Habit Burger Grill brand asset	96				96
	$	127			$	127

Short-term Borrowings and Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]


	2021		2020
Short-term Borrowings
Current maturities of long-term debt	$	75	$	463
Less current portion of debt issuance costs and discounts	(7)		(10)
Short-term borrowings	$	68	$	453

Long-term Debt
Securitization Notes	$	3,811	$	2,869
Subsidiary Senior Unsecured Notes	750		1,800
Term Loan A Facility	750		431
Term Loan B Facility	1,489		1,916
YUM Senior Unsecured Notes	4,475		3,725
Finance lease obligations (See Note 12)	64		72
	$	11,339	$	10,813
Less debt issuance costs and discounts	(86)		(78)
Less current maturities of long-term debt	(75)		(463)
Long-term debt	$	11,178	$	10,272

Securitization Notes issued that remain outstanding

The following table summarizes Securitization Notes outstanding at December 31, 2021:


				Interest Rate
Issuance Date	Anticipated Repayment Date(a)	Outstanding Principal (in millions)		Stated		Effective(b)
May 2016	May 2026	$	955	4.970	%	5.14	%
November 2018	November 2028	$	606	4.940	%	5.06	%
August 2021	February 2027	$	900	1.946	%	2.11	%
August 2021	February 2029	$	600	2.294	%	2.42	%
August 2021	August 2031	$	750	2.542	%	2.64	%

(a)The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.

(b)Includes the effects of the amortization of any discount and debt issuance costs.

Credit Agreement and Subsidiary Senior Unsecured Notes issued that remain outstanding


					Interest Rate
	Issuance Date	Maturity Date	Outstanding Principal (in millions)		Stated		Effective(b)
Term Loan A Facility	March 2021	March 2026	$	750	(a)		0.96	%
Term Loan B Facility	March 2021	March 2028	$	1,489	(a)		4.99	%
Senior Note Due 2027	June 2017	June 2027	$	750	4.75	%	4.90	%

(a)Subsequent to the refinance, the interest rates applicable to the Term Loan A Facility as well as the Revolving Facility range from 0.75% to 1.50% plus LIBOR or from 0.00% to 0.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total leverage ratio (as defined in the Credit Agreement). As of December 31, 2021, the interest rate spreads on the LIBOR and Base Rate applicable to our Term Loan A Facility were 0.75% and 0.00%, respectively.

The interest rates applicable to the Term Loan B Facility are 1.75% plus LIBOR or 0.75% plus the Base Rate, at the Borrowers’ election.

(b) Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on LIBOR-based interest rates through December 31, 2021.

Senior Unsecured Notes issued that remain outstanding

The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2021:


				Interest Rate
Issuance Date	Maturity Date	Principal Amount (in millions)		Stated		Effective(a)
October 2007	November 2037	$	325	6.88	%	7.45	%
October 2013	November 2023	$	325	3.88	%	4.01	%
October 2013	November 2043	$	275	5.35	%	5.42	%
September 2019	January 2030	$	800	4.75	%	4.90	%
April 2020	April 2025	$	600	7.75	%	8.05	%
September 2020	March 2031	$	1,050	3.63	%	3.77	%
April 2021	January 2032	$	1,100	4.63	%	4.77	%

(a)Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward starting interest rate swaps utilized to hedge the interest rate risk prior to debt issuance.

Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments

The annual maturities of all Short-term borrowings and Long-term debt as of December 31, 2021, excluding finance lease obligations of $64 million and debt issuance costs and discounts of $93 million are as follows:


Year ended:
2022	$	68
2023	398
2024	87
2025	692
2026	1,606
Thereafter	8,424
Total	$	11,275

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease, Cost


	2021		2020		2019
Operating lease cost	$	145	$	137	$	115
Finance lease cost
Amortization of right-of-use assets	5		5		3
Interest on lease liabilities	4		3		3
Total finance lease cost	$	9	$	8	$	6
Sublease income	$	(59)	$	(60)	$	(69)

Condensed Cash Flow Statement


	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	140	$	133	$	104
Operating cash flows from finance leases	4		3		3
Financing cash flows from finance leases	4		5		4
Right-of-use assets obtained in exchange for lease obligations
Operating leases(a)	119		296		79
Finance leases	5		4		14
Operating lease liabilities transferred through refranchising	(25)		(3)		(25)
Finance lease and other debt obligations transferred through refranchising	(2)		(1)		(1)

(a) The year ended December 31, 2020, includes right-of-use assets acquired as part of the acquisition of Habit Burger Grill of $196 million (See Note 3).

Condensed Balance Sheet


	2021			2020			Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	$	809		$	851		Other assets
Finance lease right-of-use assets	37			40			Property, plant and equipment, net
Total right-of-use assets(a)	$	846		$	891

Liabilities
Current
Operating	$	88		$	97		Accounts payable and other current liabilities
Finance	7			7			Short-term borrowings
Non-current
Operating	793			823			Other liabilities and deferred credits
Finance	57			65			Long-term debt
Total lease liabilities(a)	$	945		$	992

Weighted-average Remaining Lease Term (in years)
Operating leases	10.9			11.1
Finance leases	12.1			12.2

Weighted-average Discount Rate
Operating leases	4.9		%	5.1		%
Finance leases	6.4		%	6.5		%

(a) U.S. operating lease right-of-use assets and liabilities totaled $516 million and $577 million, respectively, as of December 31, 2021, and $499 million and $556 million, respectively, as of December 31, 2020. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell restaurant support center.

Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases

Future minimum lease payments, including rental payments for lease renewal options we are reasonably certain to exercise, and amounts to be received as lessor or sublessor as of December 31, 2021, were as follows:


	Commitments				Lease Receivables
	Finance		Operating		Direct Financing		Operating
2022	$	10	$	131	$	4	$	84
2023	9		128		3		81
2024	8		119		3		78
2025	7		109		3		68
2026	7		101		2		72
Thereafter	48		575		23		550
Total lease payments/receipts	89		1,163		38		$	933
Less imputed interest/unearned income	(25)		(282)		(14)
Total lease liabilities/receivables	$	64	$	881	$	24

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss) [Table Text Block]

Gains and losses on derivative instruments designated as cash flow hedges recognized in OCI and reclassifications from AOCI into Net Income:


	Gains/(Losses) Recognized in OCI						(Gains)/Losses Reclassified from AOCI into Net Income
	2021		2020		2019		2021		2020		2019

Interest rate swaps	$	34	$	(103)	$	(71)	$	29	$	10	$	(17)
Foreign currency contracts	—		4		20		(1)		(4)		(8)
Income tax benefit/(expense)	(9)		24		16		(5)		(1)		4

Fair Value Disclosures (Tables)

12 Months Ended

Dec. 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:


	2021				2020
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Securitization Notes(a)	$	3,811	$	3,872	$	2,869	$	3,015
Subsidiary Senior Unsecured Notes(b)	750		784		1,800		1,890
Term Loan A Facility(b)	750		748		431		428
Term Loan B Facility(b)	1,489		1,490		1,916		1,907
YUM Senior Unsecured Notes(b)	4,475		4,845		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.

Fair Value Measurements, Recurring Basis

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
	Consolidated Balance Sheet	Level	2021	2020
Assets
Foreign Currency Contracts	Prepaid expenses and other current assets	2	—	1
Other Investments	Other assets	1	119	45
Other Investments	Other assets	3	5	—

Liabilities
Interest Rate Swaps	Accounts Payable and other current liabilities	2	38	28
Interest Rate Swaps	Other liabilities and deferred credits	2	54	127

Pension, Retiree Medical and Retiree Savings Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Funded status of pension plans


	2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,133	$	1,015
Service cost	8		8
Interest cost	32		35
Plan amendments	1		1

Special termination benefits	—		2
Benefits paid	(33)		(46)
Settlement payments	(67)		—
Actuarial (gain) loss	(5)		118

Benefit obligation at end of year	$	1,069	$	1,133

A significant component of the overall decrease in the Company's benefit obligation for the year ended December 31, 2021, was due to settlement payments, which were primarily related to a resource optimization program initiated in the third quarter of 2020 (see Note 5).

A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2020, was due to an actuarial loss, which was primarily due to a decrease in the discount rate used to measure our benefit obligation from 3.50% at December 31, 2019, to 2.80% at December 31, 2020.


	2021		2020
Change in plan assets:
Fair value of plan assets at beginning of year	$	1,014	$	886
Actual return on plan assets	88		168
Employer contributions	8		6

Benefits paid	(33)		(46)
Settlement payments	(67)		—

Fair value of plan assets at end of year	$	1,010	$	1,014
Funded status at end of year	$	(59)	$	(119)

Amounts recognized in the Consolidated Balance Sheet


Amounts recognized in the Consolidated Balance Sheet:
	2021		2020
Accrued benefit asset - non-current	$	43	$	—
Accrued benefit liability - current	(7)		(9)
Accrued benefit liability - non-current	(95)		(110)
	$	(59)	$	(119)

Pension plans with an accumulated benefit obligation in excess of pan assets


The table below provides information for those pension plan(s) with an accumulated benefit obligation in excess of plan assets. The pension plan(s) included also have a projected benefit obligation in excess of plan assets.
	2021		2020
Projected benefit obligation	$	102	$	1,133
Accumulated benefit obligation	98		1,111
Fair value of plan assets	—		1,014

Components of net periodic benefit cost

Components of net periodic benefit cost:


	2021		2020		2019
Service cost	$	8	$	8	$	6
Interest cost	32		35		39
Amortization of prior service cost(a)	6		5		6
Expected return on plan assets	(43)		(43)		(44)
Amortization of net loss	14		14		1
Net periodic benefit cost	$	17	$	19	$	8
Additional (gain) loss recognized due to: Settlement charges(b)	$	—	$	—	$	3
Special termination benefits	$	—	$	2	$	—

(a)Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.

Pension losses in accumulated other comprehensive income (loss)


Pension gains (losses) in AOCI:
	2021		2020
Beginning of year	$	(111)	$	(136)
Net actuarial gain (loss)	49		7
Curtailments	—		1
Amortization of net loss	14		14
Amortization of prior service cost	6		5
Prior service cost	(1)		(2)
End of year	$	(43)	$	(111)

Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income


Accumulated pre-tax losses recognized within AOCI:
	2021		2020
Actuarial net loss	$	(33)	$	(96)
Prior service cost	(10)		(15)
	$	(43)	$	(111)

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost


Weighted-average assumptions used to determine benefit obligations at the measurement dates:
	2021		2020
Discount rate	3.00	%	2.80	%
Rate of compensation increase	3.00	%	3.00	%


Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
	2021		2020		2019
Discount rate	2.80	%	3.50	%	4.60	%
Long-term rate of return on plan assets	5.25	%	5.50	%	5.75	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%

Schedule of Changes in Fair Value of Plan Assets

The fair values of our pension plan assets at December 31, 2021 and 2020 by asset category and level within the fair value hierarchy are as follows:


	2021		2020
Level 1:
Cash	$	237	$	9
Cash Equivalents(a)	80		10
Fixed Income Securities - U.S. Corporate(b)	41		164
Equity Securities - U.S.(b)	—		409
Equity Securities - Non-U.S.(b)	—		102
Level 2:
Fixed Income Securities - U.S. Corporate(c)	49		148
Fixed Income Securities - U.S. Government and Government Agencies(d)	175		354
Fixed Income Securities - Other(d)	30		30
Total assets in the fair value hierarchy	612		1,226
Investments measured at net asset value(e)
Equity Securities	456		—
Total fair value of plan assets(f)	$	1,068	$	1,226

(a)Short-term investments in money market funds.

(b)Securities held in common or collective trusts.

(c)Investments held directly by the Plan.

(d)Includes securities held in common or collective trusts and investments held directly by the Plan.

(e)Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

(f)2021 and 2020 exclude net unsettled trade payables of $58 million and $212 million, respectively.

Fair values of pension plan assets

As of December 31, 2021, the Plan's assets were in the process of being transitioned to the weighted-average target allocation summarized as follows:


Asset Category	Target Allocation
Fixed income	49	%
Equity securities	32	%
Real assets	19	%

Expected benefit payments

The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:


Year ended:
2022	$	47
2023	50
2024	52
2025	57
2026	59
2027 - 2031	293

Share-based and Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2021

Weighted-average assumptions used in the Black-Scholes option-pricing model

We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	2021		2020		2019
Risk-free interest rate	0.5	%	1.0	%	2.5	%
Expected term	6.3 years		5.8 years		6.5 years
Expected volatility	27.0	%	24.0	%	22.0	%
Expected dividend yield	1.9	%	1.9	%	1.8	%

Summary of award activity

Stock Options and SARs


	Shares (in thousands)		Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year	15,562		$	74.52
Granted	757		103.85
Exercised	(3,720)		60.77
Forfeited or expired	(329)		94.60
Outstanding at the end of the year	12,270	(a)	79.96		6.12	$	723
Exercisable at the end of the year	8,405		$	72.53	5.35	$	557

(a)Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

^[1]

Impact on net income

The components of share-based compensation expense and the related income tax benefits are shown in the following table:


	2021		2020		2019
Options and SARs	$	29	$	75	$	39
Restricted Stock Units	16		20		12
Performance Share Units	30		2		8
Total Share-based Compensation Expense	$	75	$	97	$	59
Deferred Tax Benefit recognized	$	15	$	18	$	9

[1]	Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Repurchase Of Shares Of Common Stock


	Shares Repurchased (thousands)						Dollar Value of Shares Repurchased
Authorization Date	2021		2020		2019		2021			2020			2019
May 2021	8,235		—		—		$	1,050		$	—		$	—
November 2019	4,746		2,419		—		530			250			—
August 2018	—		—		7,788		—			—			810
Total	12,981	(a)	2,419	(a)	7,788	(b)	$	1,580	(a)	$	250	(a)	$	810	(b)

(a) 2021 amount excludes and 2020 amount includes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.

(b) 2019 amount excludes the effect of $5 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2018, but settlement dates subsequent to December 31, 2018.

Schedule of changes in accumulated other comprehensive income

Changes in AOCI are presented below.


	Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature		Pension and Post-Retirement Benefits(a)		Derivative Instruments(b)		Total


































































Balance at December 31, 2019, net of tax	$	(221)	$	(104)	$	(63)	$	(388)

OCI, net of tax

Gains (losses) arising during the year classified into AOCI, net of tax	39		(6)		(75)		(42)

(Gains) losses reclassified from AOCI, net of tax	—		14		5		19

	39		8		(70)		(23)

Balance at December 31, 2020, net of tax	$	(182)	$	(96)	$	(133)	$	(411)

OCI, net of tax

Gains (losses) arising during the year classified into AOCI, net of tax	(24)		50		25		51

(Gains) losses reclassified from AOCI, net of tax	—		12		23		35

	(24)		62		48		86

Balance at December 31, 2021, net of tax	$	(206)	$	(34)	$	(85)	$	(325)

(a) Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2021 include amortization of net losses of $12 million, amortization of prior service cost of $5 million and related income tax benefit of $4 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2020 include amortization of net losses of $14 million, amortization of prior service cost of $4 million and related income tax benefit of $4 million. See Note 15.

(b) See Note 13 for details on amounts reclassified from AOCI.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income before income taxes

U.S. and foreign income before taxes are set forth below:


	2021		2020		2019
U.S.	$	1,062	$	684	$	466
Foreign	612		336		907
	$	1,674	$	1,020	$	1,373

Details of income tax provision (benefit)

The details of our income tax provision (benefit) are set forth below:


		2021		2020		2019
Current:	Federal	$	45	$	37	$	129
	Foreign	214		121		166
	State	40		23		16
		$	299	$	181	$	311

Deferred:	Federal	$	21	$	(21)	$	(16)
	Foreign	(227)		(29)		(213)
	State	6		(15)		(3)
		$	(200)	$	(65)	$	(232)
		$	99	$	116	$	79

Effective income tax and tax rate reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:


	2021		2020		2019
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax	1.8		1.0		0.9
Statutory rate differential attributable to foreign operations	(1.0)		(0.9)		0.9
Adjustments to reserves and prior years	1.1		(1.7)		2.3
Excess tax benefits from stock-based awards	(2.7)		(3.4)		(3.6)
Change in valuation allowances	(0.8)		(2.5)		(0.6)
Intercompany restructuring	(11.3)		(0.3)		(16.6)
Nondeductible interest	1.4		—		—
Impact of tax law changes	(3.8)		(2.5)		—
Other, net	0.2		0.7		1.4
Effective income tax rate	5.9	%	11.4	%	5.7	%

Details of deferred tax assets (liabilities)

The details of 2021 and 2020 deferred tax assets (liabilities) are set forth below:


	2021		2020
Operating losses and interest deduction carryforwards	$	186	$	181
Capital losses	72		3
Tax credit carryforwards	194		226
Employee benefits	68		82
Share-based compensation	51		58
Lease-related liabilities	236		199
Accrued liabilities and other	52		47
Derivative instruments	—		50
Intangible assets	560		678
Property, plant and equipment	35		31
Deferred income	87		81
Gross deferred tax assets	1,541		1,636
Deferred tax asset valuation allowances	(462)		(789)
Net deferred tax assets	$	1,079	$	847
Intangible assets, including goodwill	$	(3)	$	(1)
Property, plant and equipment	(85)		(75)
Operating lease right-of-use assets	(200)		(161)
Employee benefits	(24)		(15)
Other	(51)		(42)
Gross deferred tax liabilities	$	(363)	$	(294)
Net deferred tax assets (liabilities)	$	716	$	553

The details of the 2021 valuation allowance activity are set forth below:


	2021		2020
Beginning of Year	$	(789)	$	(787)
Increases	(31)		(64)
Decreases	355		45
Other Adjustments	3		17
End of Year	$	(462)	$	(789)

Reported in Consolidated Balance Sheets as:


	2021		2020
Deferred income taxes	$	724	$	553
Other liabilities and deferred credits	(8)		—
	$	716	$	553

Loss carryforwards, by year of expiration

Details of tax loss, credit carryforwards, and expiration dates along with valuation allowances as of December 31, 2021, are as follows:


	Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration
Federal net operating losses	$	18	$	4	$	—	2036-2037
Federal net operating losses - Indefinite	61		13		—		None
Foreign net operating losses	59		12		(11)		2022-2037
Foreign net operating losses - Indefinite	229		59		(35)		None
State net operating losses	1,408		59		(43)		2022-2040
Foreign capital loss carryforward - Indefinite	289		72		(72)		None
Foreign tax credits	187		187		(172)		2026-2030
State tax credits	7		7		(5)		2023
Federal interest deduction carryforward - Indefinite	81		17		(8)		None
State interest deduction carryforward - Indefinite	487		22		(21)		None
	$	2,826	$	452	$	(367)

Unrecognized tax benefits reconciliation

A reconciliation of the beginning and ending unrecognized tax benefits follows:


	2021		2020
Beginning of Year	$	175	$	188
Additions on tax positions - current year	13		5
Additions for tax positions - prior years	41		34
Reductions for tax positions - prior years	(110)		(22)
Reductions for settlements	(3)		(30)
Reductions due to statute expiration	—		—
Foreign currency translation adjustment	—		—
End of Year	$	116	$	175

Reportable Operating Segments (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated


	Revenues
	2021		2020		2019
KFC Division(a)	$	2,793	$	2,272	$	2,491
Taco Bell Division(a)	2,238		2,031		2,079
Pizza Hut Division(a)	1,028		1,002		1,027
Habit Burger Grill Division(a)	525		347		—
	$	6,584	$	5,652	$	5,597

Reconciliation of Operating Profit (Loss) from Segments to Consolidated


	Operating Profit
	2021		2020		2019
KFC Division	$	1,230	$	922	$	1,052
Taco Bell Division	758		696		683
Pizza Hut Division	387		335		369
Habit Burger Grill Division	2		(22)		—
Corporate and unallocated G&A expenses(b)(c)	(260)		(312)		(188)
Unallocated Franchise and property expenses(b)(d)	1		(4)		(14)
Unallocated Refranchising gain (loss)(b)	35		34		37
Unallocated Other income (expense)(b)(e)	(14)		(146)		(9)
Operating Profit	2,139		1,503		1,930
Investment income (expense), net(b)	86		74		(67)
Other pension income (expense)(b)	(7)		(14)		(4)
Interest expense, net(b)	(544)		(543)		(486)
Income before income taxes	$	1,674	$	1,020	$	1,373

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated


	Depreciation and Amortization
	2021		2020		2019
KFC Division	$	28	$	29	$	30
Taco Bell Division	53		56		59
Pizza Hut Division	32		24		15
Habit Burger Grill Division	28		25		—
Corporate	23		12		8
	$	164	$	146	$	112


	Capital Spending
	2021		2020		2019
KFC Division	$	60	$	59	$	81
Taco Bell Division	62		42		76
Pizza Hut Division	18		28		33
Habit Burger Grill Division	56		16		—
Corporate	34		15		6
	$	230	$	160	$	196


	Identifiable Assets(g)
	2021		2020
KFC Division	$	2,313	$	2,011
Taco Bell Division	1,397		1,387
Pizza Hut Division	850		804
Habit Burger Grill Division	586		537
Corporate(f)	820		1,113
	$	5,966	$	5,852


	Long-Lived Assets(h)
	2021		2020
KFC Division	$	1,069	$	1,160
Taco Bell Division	904		925
Pizza Hut Division	423		415
Habit Burger Grill Division	516		458
Corporate	120		68
	$	3,032	$	3,026

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $3.6 billion in 2021, $3.2 billion in 2020 and $3.0 billion in 2019.

(b) Amounts have not been allocated to any segment for performance reporting purposes.

(c) Amounts in 2020 include charitable contributions to Yum! Brands Foundation, Inc. of $50 million and $25 million related to our Unlocking Opportunity Initiative and COVID-19 employee relief, respectively. Additionally, 2020 includes $36 million for charges associated with resource optimization (see Note 5).

(d) Represents costs related to an agreement executed in May 2017 with our Pizza Hut U.S. franchisees to improve brand marketing alignment, accelerate enhancements in operations and technology and that included a permanent commitment to incremental advertising as well as digital and technology contributions by franchisees (the “Pizza Hut U.S. Transformation Agreement”).

(e) Unallocated Other income (expense) in 2020 includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 3).

(f) Primarily includes cash and deferred tax assets.

(g) U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion and $3.0 billion in 2021 and 2020, respectively.

(h) Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets.

Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

The following table summarizes the 2021 and 2020 activity related to our net self-insured property and casualty reserves as of December 31, 2021.


	Beginning Balance		Habit Acquisition(a)	Expense	Payments	Ending Balance
2021 Activity	$	50	—	23	(25)	$	48
2020 Activity	$	54	6	13	(23)	$	50

Description of Business (Details)	12 Months Ended
Description of Business (Details)	Dec. 31, 2021 restaurants operating_segments countries_and_territiories
Segment Reporting Information [Line Items]
Approximate Number Of System Units	53,000
Approximate Number Of Countries And Territories Where System Units Are Located \| countries_and_territiories	157
Franchise Restaurant Ownership	98.00%
Number of Operating Segments \| operating_segments	4
Number of Stores Offering Delivery Services [Member]
Segment Reporting Information [Line Items]
Approximate Number Of System Units	45,000

Summary of Significant Accounting Policies (Details) $ / shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) Years $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Future lease payments due from franchisees on a nominal basis	$ 1,000
Revenues	6,584	$ 5,652	$ 5,597
Operating Profit	2,139	1,503	1,930
Net Income	1,575	904	1,294
Foreign currency translation adjustment	206
Prior Period Reclassification Adjustment	0
Advertising Expense	84	68	73
Franchise advertising and other services expense	1,576	1,314	1,368
Accumulated Deficit	$ (8,048)	(7,480)
Period Within Date Of Corresponding Sales In Which Trade Receivables Are Classified As Accounts And Notes Receivable	30 days
Accounts and notes receivable	$ 632	579
Allowance for doubtful accounts	(36)	(45)
Accounts and notes receivable, net	$ 596	534
Number of years notes receivable and direct financing leases are due within and would be included in accounts and notes receivable \| Years	1
Number of years notes receivable and direct financing leases are beyond and would be included in other assets \| Years	1
Net amounts included in Other Assets	$ 68	72
Allowance for doubtful accounts related to notes and direct financing lease receivables	$ 1	$ 5
Number of consecutive years of operating losses used as primary indicator of potential impairment for our semi-annual impairment testing of restaurant assets \| Years	2
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition \| Years	2
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised \| Years	2
Common Stock, No Par Value \| $ / shares	$ 0	$ 0
Reclassification of Retained Earnings to Common Stock for Share Repurchase	$ 1,549	$ 179	796
Employee stock option and SARs exercises (includes tax impact)	50	41	75
Reduction to Retained earnings
Schedule of Equity Method Investments [Line Items]
Net Income	$ 1,575	904	1,294
Employee stock option and SARs exercises (includes tax impact)			18
Accounting Standards Update 2016-02 [Member]
Schedule of Equity Method Investments [Line Items]
Accumulated Deficit			(2)
Accounting Standards Update 2016-13 [Member]
Schedule of Equity Method Investments [Line Items]
Accumulated Deficit		(8)
Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Continuing Fees Rate	4.00%
Minimum [Member] \| Capitalized software costs
Schedule of Equity Method Investments [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum [Member] \| Buildings and improvements
Schedule of Equity Method Investments [Line Items]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	5 years
Minimum [Member] \| Machinery, Equipment and Other
Schedule of Equity Method Investments [Line Items]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	3 years
Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Continuing Fees Rate	6.00%
Maximum [Member] \| Capitalized software costs
Schedule of Equity Method Investments [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years
Maximum [Member] \| Buildings and improvements
Schedule of Equity Method Investments [Line Items]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	25 years
Maximum [Member] \| Machinery, Equipment and Other
Schedule of Equity Method Investments [Line Items]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	20 years
Advertising Cooperatives [Domain]
Schedule of Equity Method Investments [Line Items]
Advertising Expense	$ 11	10	10
Franchise advertising and other services expense	1,264	1,079	1,133
Franchise and property expenses [Member]
Schedule of Equity Method Investments [Line Items]
Sales Allowances, Services	8	12	24
Franchise advertising and other services expenses [Member] [Member]
Schedule of Equity Method Investments [Line Items]
Sales Allowances, Services	(6)	$ (7)	19
Operating Expense \| Advertising Cooperatives [Domain]
Schedule of Equity Method Investments [Line Items]
Sales Allowances, Services	$ 0
53rd Week Impact [Member]
Schedule of Equity Method Investments [Line Items]
Revenues			66
Operating Profit			24
Net Income			$ 17

Habit Burger Acquisition (Details)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 07, 2021

USD ($)

Mar. 18, 2020

USD ($)

restaurants

Sep. 30, 2021

USD ($)

Sep. 30, 2020

USD ($)

Mar. 31, 2020

USD ($)

Dec. 31, 2021

USD ($)

restaurants

Mar. 17, 2021

USD ($)

Dec. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

Mar. 31, 2021

USD ($)

Payments to Acquire Businesses, Net of Cash Acquired

53,000

$ 408

$ 0

$ 408

$ 0

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

657

597

^[1]

530

^[1]

Goodwill impairment tax benefit [Member]

19

172

5

Income tax provision

$ 99

116

$ 79

The Habit Burger Grill [Member]

Income tax provision

$ 1

$ 32

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

20

Payments to Acquire Businesses, Net of Cash Acquired

408

The Habit Burger Grill [Member] | Franchisee Owned Stores [Member]

$ 204

$ (60)

The Habit Burger Grill [Member] | Company Owned Stores [Member]

31

Dragontail Systems Limited

245

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

$ 3

Payments to Acquire Businesses, Net of Cash Acquired

66

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets

11

Lease Agreements [Member]

$ 57

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets

$ 196

Goodwill [Member]

$ 5

$ 139

$ 144

[1]	Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.

Dragontail Acquisition (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 07, 2021

Mar. 18, 2020

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Payments to Acquire Businesses, Net of Cash Acquired

$ 408

$ 0

$ 408

$ 0

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets

$ 657

$ 597

^[1]

$ 530

^[1]

$ 96

Dragontail Systems Limited

Payments to Acquire Businesses, Net of Cash Acquired

$ 66

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

3

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets

57

$ 11

Acquired Finite-lived Intangible Assets, Weighted Average Useful Life

7 years

[1]	Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.

Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Earnings Per Share [Abstract]

Weighted-average common shares outstanding (for basic calculation) (in shares)

$ 1,575

$ 904

$ 1,294

297.0

302.0

306.0

Effect of dilutive share-based employee compensation (in shares)

5.0

7.0

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) (in shares)

302.0

307.0

313.0

Basic EPS (in dollars per share)

$ 5.30

$ 2.99

$ 4.23

Diluted EPS (in dollars per share)

$ 5.21

$ 2.94

$ 4.14

Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (in shares)

^[1]

1.1

4.8

2.0

[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.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Items Affecting Comparability of Net Income and Cash Flows (Details)
shares in Millions, $ in Millions

3 Months Ended

5 Months Ended

6 Months Ended

7 Months Ended

12 Months Ended

18 Months Ended

Jun. 01, 2021

USD ($)

Rate

Dec. 31, 2021

USD ($)

restaurants

Rate

Sep. 30, 2021

USD ($)

Jun. 30, 2021

USD ($)

Rate

Mar. 31, 2021

USD ($)

Rate

Dec. 31, 2020

USD ($)

restaurants

Rate

Sep. 30, 2020

USD ($)

Jun. 30, 2020

USD ($)

Jun. 09, 2021

Rate

Dec. 31, 2020

USD ($)

restaurants

Rate

Jun. 30, 2021

Jun. 30, 2018

USD ($)

shares

Dec. 31, 2021

USD ($)

restaurants

Rate

Jul. 21, 2020

Dec. 31, 2021

USD ($)

restaurants

Rate

Dec. 31, 2020

USD ($)

restaurants

Rate

Dec. 31, 2019

USD ($)

restaurants

Dec. 31, 2021

USD ($)

restaurants

Rate

Proceeds from Divestiture of Businesses, Including Noncash Consideration

$ 85

$ 19

$ 110

Noncash or Part Noncash Divestiture, Amount of Consideration Received

^[1]

0

31

6

Charitable Contribution, Authorized Spend

(35)

(34)

(37)

$ 100

Equity Method Investment, Ownership Percentage | Rate

$ 1,060

$ 1,064

917

5.00%

Investment Owned, at Fair Value

53,000

$ 118

$ 31

$ 118

$ 31

$ 118

Investment Income, Nonoperating

87

$ 4

8

$ (44)

$ 206

0

(206)

0

Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent

^[2]

86

74

(67)

Deferred income taxes

$ 200

$ 65

$ 232

(3.80%)

(2.50%)

0.00%

Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability

$ 64

Number of stores refranchised

Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]

60

Repayments of Debt, Maturing in More than Three Months

$ 6

$ 1,050

Interest rate, stated (in hundredths) | Rate

5.25%

5.00%

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | Rate

102.625%

Payment for Debt Extinguishment or Debt Prepayment Cost

$ 28

Gain (Loss) on Extinguishment of Debt

(26)

Foreign [Member]

Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent

19.00%

25.00%

19.00%

17.00%

25.00%

17.00%

Unlocking Opportunity Initiative [Member]

$ 50

COVID-19 Relief [Member]

Interest Expense [Member] | Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]

$ 25

Gain (Loss) on Extinguishment of Debt

$ (2)

Gain (loss) on disposition of assets [Member]

Number of Restaurants Refranchised | restaurants

83

97

25

General and Administrative Expense [Member]

Costs Associated with Resource Optimization Initiative

$ 7

$ 36

Other pension (income) expense [Member]

Costs Associated with Resource Optimization Initiative

1

2

Other Operating Income (Expense)

Costs Associated with Resource Optimization Initiative

2

(1)

(33)

$ (6)

1

0

(29)

(2)

(31)

(6)

0

GrubHub Inc. [Member]

Investment Owned, Balance, Shares | shares

2.8

$ 200

Intra-Entity IP Transfers [Member]

(69)

77

Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability

Deferred income taxes

3

$ 226

$ 35

$ 152

$ (25)

[1]	In 2020 we received as refranchising consideration a minority interest in an entity (Devyani) that operates KFC and Pizza Hut franchised units in India (see Note 5) and in 2019 we received as refranchising consideration a minority interest in an entity that owns our KFC and Pizza Hut master franchisee rights in Brazil.
[2]	Amounts have not been allocated to any segment for performance reporting purposes.

Revenue Recognition (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Contract with Customer, Liability

$ 6,584

$ 5,652

$ 5,597

421

415

441

Deferred Revenue, Revenue Recognized

(74)

(76)

Deferred Revenue, Additions

87

53

1 year [Member]

Deferred Revenue, Revenue Expected to be Recognized

68

2 years [Member]

Deferred Revenue, Revenue Expected to be Recognized

61

3 years [Member]

Deferred Revenue, Revenue Expected to be Recognized

57

4 years [Member]

Deferred Revenue, Revenue Expected to be Recognized

50

5 years [Member]

Deferred Revenue, Revenue Expected to be Recognized

44

Thereafter 5 years [Member]

Deferred Revenue, Revenue Expected to be Recognized

141

Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

2,106

1,810

1,546

Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

1,578

1,332

1,391

United States | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

1,550

1,309

1,014

United States | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

1,142

1,050

1,059

United States | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

891

818

811

United States | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

63

65

70

CHINA | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

297

255

274

Other, Outside the U.S. and China [Member] | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

556

501

532

Other, Outside the U.S. and China [Member] | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

1,335

1,080

1,185

Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

687

514

580

Other, Outside the U.S. and China [Member] | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

63

60

72

KFC Global Division [Member] | United States | Company Sales

^[1]

2,793

2,272

2,491

Revenue from Contract with Customer, Excluding Assessed Tax

65

60

74

KFC Global Division [Member] | United States | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

198

184

175

KFC Global Division [Member] | United States | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

28

18

10

KFC Global Division [Member] | United States | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

14

16

20

KFC Global Division [Member] | CHINA | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

235

204

214

KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

531

446

497

KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

1,049

833

912

KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

612

453

520

KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

61

58

69

Pizza Hut Global Division [Member] | United States | Company Sales

^[1]

1,028

1,002

1,027

Revenue from Contract with Customer, Excluding Assessed Tax

21

Pizza Hut Global Division [Member] | United States | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

279

272

282

Pizza Hut Global Division [Member] | United States | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

317

318

Pizza Hut Global Division [Member] | United States | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

5

6

Pizza Hut Global Division [Member] | CHINA | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

62

51

60

Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

25

55

33

Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

249

222

246

Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

68

57

58

Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

2

3

Taco Bell Global Division [Member] | United States | Company Sales

^[1]

2,238

2,031

2,079

Revenue from Contract with Customer, Excluding Assessed Tax

944

882

919

Taco Bell Global Division [Member] | United States | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

661

593

602

Taco Bell Global Division [Member] | United States | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

545

483

Taco Bell Global Division [Member] | United States | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

44

Taco Bell Global Division [Member] | CHINA | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

0

Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

0

2

Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

37

25

27

Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

7

4

2

Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | United States | Company Sales

525

347

$ 0

Revenue from Contract with Customer, Excluding Assessed Tax

520

346

The Habit Burger Grill Global Division | United States | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

4

1

The Habit Burger Grill Global Division | United States | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

1

0

The Habit Burger Grill Global Division | United States | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | CHINA | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Company Sales

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise [Member]

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

0

The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Real Estate

Revenue from Contract with Customer, Excluding Assessed Tax

0

Other, Outside the U.S. and China [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services

Revenue from Contract with Customer, Excluding Assessed Tax

0

Foreign Currency Gain (Loss) and Refranchising Gain (Loss) [Member]

Deferred Revenue, Period Increase (Decrease)

^[2]

$ (7)

$ (3)

[1]	U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $3.6 billion in 2021, $3.2 billion in 2020 and $3.0 billion in 2019.
[2]	(a) Includes impact of foreign currency translation, as well as, in 2021, the recognition of deferred franchise fees into Refranchising (gain) loss upon the modification of existing franchise agreements when entering into master franchise agreements.

Supplemental Cash Flow Data (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Interest Paid, Excluding Capitalized Interest, Operating Activities

^[1]

$ 474

$ 480

$ 497

Income taxes

308

328

283

Noncash or Part Noncash Divestiture, Amount of Consideration Received

^[2]

0

31

6

Cash and Cash Equivalents, at Carrying Value

486

730

605

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

250

258

771

1,024

768

$ 474

Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]

Payment for Debt Extinguishment or Debt Prepayment Cost

28

Prepaid Expenses and Other Current Assets [Member]

^[3]

250

258

138

Other Assets [Member]

Restricted Cash and Cash Equivalents, Noncurrent

^[4]

$ 35

$ 36

$ 25

[1]	Amounts exclude payments of $28 million in both 2021 and 2020 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).
[2]	In 2020 we received as refranchising consideration a minority interest in an entity (Devyani) that operates KFC and Pizza Hut franchised units in India (see Note 5) and in 2019 we received as refranchising consideration a minority interest in an entity that owns our KFC and Pizza Hut master franchisee rights in Brazil.
[3]	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 cash held in reserve for Taco Bell Securitization interest payments (see Note 11).
[4]	Primarily trust accounts related to our self-insurance programs.

Other (Income) Expense (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2020

Mar. 31, 2020

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Foreign currency transaction (gain) loss and other (income) expense, before tax

^[1]

$ (14)

$ (18)

$ (1)

Other Income and Expenses [Domain]

19

172

5

Other (income) expense

2

154

4

Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability

8

Other Operating Income (Expense)

Costs Associated with Resource Optimization Initiative

^[2]

16

172

$ 5

$ 2

Finite-Lived Intangible Assets [Member]

Property, Plant and Equipment [Member]

11

12

Goodwill [Member]

Prepaid Expenses and Other Current Assets [Line Items]

$ 5

$ 139

$ 144

[1]	The year ended December 31, 2019, includes a charge of $8 million for the settlement of contingent consideration associated with our 2013 acquisition of the KFC Turkey and Pizza Hut Turkey businesses.
[2]	The year ended December 31, 2020, includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 3). The year ended December 31, 2020, also includes charges of $12 million related to the impairment of restaurant-level assets and charges of $11 million related to the write-off of software no longer being used.

Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Income tax receivable

$ 50

$ 35

Prepaid Expense and Other Assets, Current

250

258

Assets held for sale

^[1]

12

7

450

425

Accumulated depreciation and amortization

2,477

2,465

(1,270)

(1,230)

Property, Plant and equipment, net

1,207

1,235

134

132

$ 114

Other Assets, Miscellaneous, Noncurrent

Other assets

1,487

1,435

$ 396

$ 390

Accounts Payable and Other Current Liabilities [Line Items]

Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]

Accounts payable and other current liabilities

$ 1,334

$ 1,189

Franchise Incentive [Member]

Other assets

164

163

Land

Buildings and improvements

412

428

Finance leases, primarily buildings

1,403

1,423

Machinery, Equipment and Other

67

71

Devyani | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]

595

543

Equity Securities, FV-NI

118

31

Other Assets [Member]

Operating Lease, Right-of-Use Asset

809

851

Prepaid Expenses and Other Current Assets [Member]

Prepaid Expenses and Other Current Assets [Line Items]

Prepaid expenses and other current assets

^[2]

250

258

$ 138

138

125

Accounts Payable and Accrued Liabilities [Member]

Accounts Payable and Other Current Liabilities [Line Items]

Accounts payable

227

215

Accrued compensation and benefits

292

225

Accrued Advertising, Current

229

196

Accrued taxes, other than income taxes

78

73

Other current liabilities

$ 420

$ 383

[1]	Assets held for sale reflect the carrying value of restaurants we have offered for sale to franchisees and excess properties that we do not intend to use for restaurant operations in the future.
[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 cash held in reserve for Taco Bell Securitization interest payments (see Note 11).

Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Sep. 07, 2021

Dec. 31, 2019

^[1]

Changes in the carrying amount of goodwill [Roll Forward]

$ 657

$ 597

^[1]

$ 530

(7)

5

^[2]

Series of Individually Immaterial Business Acquisitions

62

Changes in the carrying amount of goodwill [Roll Forward]

Dragontail Systems Limited

10

Changes in the carrying amount of goodwill [Roll Forward]

$ 57

57

Changes in the carrying amount of goodwill [Roll Forward]

232

235

^[1]

233

(3)

2

^[2]

KFC Global Division [Member] | Series of Individually Immaterial Business Acquisitions

0

Changes in the carrying amount of goodwill [Roll Forward]

KFC Global Division [Member] | Dragontail Systems Limited

0

Changes in the carrying amount of goodwill [Roll Forward]

0

Changes in the carrying amount of goodwill [Roll Forward]

98

^[1]

98

0

^[2]

Taco Bell Global Division [Member] | Series of Individually Immaterial Business Acquisitions

0

Changes in the carrying amount of goodwill [Roll Forward]

Taco Bell Global Division [Member] | Dragontail Systems Limited

0

Changes in the carrying amount of goodwill [Roll Forward]

0

Changes in the carrying amount of goodwill [Roll Forward]

257

202

^[1]

199

(2)

3

^[2]

Goodwill, Impaired, Accumulated Impairment Loss

0

17

Pizza Hut Global Division [Member] | Series of Individually Immaterial Business Acquisitions

Changes in the carrying amount of goodwill [Roll Forward]

Pizza Hut Global Division [Member] | Dragontail Systems Limited

0

Changes in the carrying amount of goodwill [Roll Forward]

57

Changes in the carrying amount of goodwill [Roll Forward]

70

62

^[1]

$ 0

(2)

0

^[2]

Goodwill, Impaired, Accumulated Impairment Loss

$ 62

144

The Habit Burger Grill Global Division | Series of Individually Immaterial Business Acquisitions

Changes in the carrying amount of goodwill [Roll Forward]

The Habit Burger Grill Global Division | Dragontail Systems Limited

10

Changes in the carrying amount of goodwill [Roll Forward]

$ 0

[1]	Goodwill, net includes $144 million of accumulated impairment loss recorded in the year ended December 31, 2020, related to our Habit Burger Grill segment and $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.
[2]	Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Goodwill and Intangible Assets (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Definite-lived intangible assets
Gross Carrying Amount	$ 603	$ 527
Accumulated Amortization	(371)	(311)
Definite-lived intangible assets, amortization expense	76	63	$ 52
Approximate amortization expense for definite-lived intangible assets - 2022	82
Approximate amortization expense for definite-lived intangible assets - 2023	60
Approximate amortization expense for definite-lived intangible assets - 2024	46
Approximate amortization expense for definite-lived intangible assets - 2025	21
Approximate amortization expense for definite-lived intangible assets - 2026	11
Trademarks/brands [Member]
Indefinite-lived intangible assets
Gross Carrying Amount	127	127
Capitalized software costs
Definite-lived intangible assets
Gross Carrying Amount	409	335
Accumulated Amortization	(214)	(160)
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	41	39
Accumulated Amortization	(33)	(33)
Franchise contract rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	100	100
Accumulated Amortization	(88)	(85)
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount	53	53
Accumulated Amortization	(36)	(33)
KFC Global Division [Member] \| Trademarks/brands [Member]
Indefinite-lived intangible assets
Gross Carrying Amount	31	31
The Habit Burger Grill Global Division \| Trademarks/brands [Member]
Indefinite-lived intangible assets
Gross Carrying Amount	$ 96	$ 96

Short-term Borrowings and Long-term Debt (Details) - USD ($)
$ in Millions

3 Months Ended

4 Months Ended

9 Months Ended

12 Months Ended

Aug. 19, 2021

Aug. 02, 2021

Jun. 01, 2021

Apr. 01, 2021

Mar. 15, 2021

Mar. 31, 2021

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Long-term Debt and Lease Obligation, Current

$ (75.0)

$ (463.0)

Debt Issuance Costs, Current, Net

(7.0)

(10.0)

Total Short-term Borrowings

$ 68.0

$ 453.0

Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]

Other Liabilities

Long-term debt and capital less obligations, excluding current maturities and debt issuance costs

$ 11,339.0

$ 10,813.0

Debt Issuance Costs, Noncurrent, Net

(86.0)

(78.0)

Long-term debt including hedge accounting adjustment

11,178.0

10,272.0

Payments of Debt Issuance Costs

250.0

258.0

37.0

20.0

$ 10.0

$ 4.0

Amount of Basis Points Term Loan A And Revolving Facility Interest Rate Reduced By Due To Refinancing

$ 8.0

0.25%

Repayments of Debt

$ 350.0

Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net

93.0

Revolving credit facilities, three months or less, net

0.0

Annual maturities of all Short-term borrowings and Long-term debt - 2022

68.0

Annual maturities of all Short-term borrowings and Long-term debt - 2023

398.0

Annual maturities of all Short-term borrowings and Long-term debt - 2024

87.0

Annual maturities of all Short-term borrowings and Long-term debt - 2025

692.0

Annual maturities of all Short-term borrowings and Long-term debt - 2026

1,606.0

Annual maturities of all Short-term borrowings and Long-term debt - After 2026

8,424.0

Annual maturities of all Short-term borrowings and Long-term debt - Total

11,275.0

Interest expense on short-term borrowings and long-term debt

551.0

558.0

519.0

Paid to Lender

Payments of Debt Issuance Costs

3.0

Term Loan A Facility [Member]

$ 750.0

750.0

$ 750.0

Mar. 15, 2021

Term Loan A Facility [Member] | June2022

Mar. 15, 2026

Term Loan B Facility [Member]

431.0

1,500.0

1,489.0

$ 1,489.0

Mar. 15, 2021

Term Loan B Facility [Member] | April2025

Mar. 15, 2026

Revolving Facility [Member]

1,900.0

Revolving credit facilities, three months or less, net

1,250.0

Revolving Facility [Member] | June2022

Revolving credit facilities, three months or less, net

$ 1,000.0

Subsidiary Senior Unsecured Notes due 2027 [Member]

$ 750.0

Jun. 15, 2017

Jun. 01, 2027

4.75%

Class A-2 Notes [Member]

Payments of Debt Issuance Costs

$ 19.0

Senior Unsecured Notes Due November 2037 [Member]

Oct. 16, 2007

Nov. 15, 2037

6.88%

7.45%

Senior Unsecured Notes Due November 2023 [Member]

$ 325.0

Oct. 31, 2013

Nov. 01, 2023

3.88%

4.01%

Senior Unsecured Notes Due November 2043 [Member]

$ 325.0

Oct. 31, 2013

Nov. 01, 2043

5.35%

5.42%

Senior Unsecured Notes Due January 2030 [Member]

$ 275.0

Sep. 11, 2019

Jan. 15, 2030

4.75%

4.90%

Senior Unsecured Notes Due April 2025

$ 800.0

Apr. 01, 2020

Apr. 01, 2025

7.75%

8.05%

Senior Unsecured Notes Due March 2031

$ 600.0

Sep. 25, 2020

Mar. 15, 2031

3.63%

3.77%

Unsecured Notes Due January 2032

$ 1,050.0

Apr. 01, 2021

Jan. 31, 2032

4.63%

4.77%

Debt Issuance Costs, Gross

$ 1,100.0

13.0

Secured Debt [Member]

Debt Issuance Costs, Gross

8.0

Secured Debt [Member] | Class A-2-II Notes [Member] | 2021

$ 600.0

Aug. 19, 2021

^[1]

Feb. 25, 2029

2.294%

Secured Debt [Member] | Class A-2-II Notes [Member] | 2016 [Member]

^[2]

2.42%

Secured Debt [Member] | Class A-2-II Notes [Member] | 2018 [Member]

$ 480.0

$ 606.0

Nov. 28, 2018

^[1]

Nov. 28, 2028

4.94%

Secured Debt [Member] | Term Loan A Facility [Member]

^[2]

5.06%

^[3]

$ 750.0

431.0

Term Loan A Facility, Repayments of Principal in Year Four

^[4]

0.96%

1.25%

Term Loan A Facility Repayments Of Principal In Year Two And Three

0.625%

Secured Debt [Member] | Term Loan B Facility [Member]

^[3]

$ 1,489.0

1,916.0

Frequency of interest payments

^[4]

4.99%

quarterly

Term Loan B, Repayment of Principal

0.25%

Secured Debt [Member] | Revolving Facility [Member]

Line of credit facility, maximum borrowing capacity

$ 1,250.0

Secured Debt [Member] | the Credit Agreement [Member]

Debt Instrument, Payment Terms

The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights

Secured Debt [Member] | Class A-2-I Notes [Member] | 2021

We were in compliance with all debt covenants as of December 31, 2021

$ 900.0

Aug. 19, 2021

^[1]

Feb. 25, 2027

1.946%

Secured Debt [Member] | Class A-2-I Notes [Member] | 2018 [Member]

^[2]

2.11%

Secured Debt [Member] | Class A-2-III Notes [Member] | 2021

$ 804.0

$ 750.0

Aug. 19, 2021

^[1]

Aug. 25, 2031

2.542%

Secured Debt [Member] | Class A-2-III Notes [Member] | 2016 [Member]

^[2]

2.64%

$ 955.0

May 11, 2016

^[1]

May 25, 2026

4.97%

Secured Debt [Member] | Securitization Notes [Member]

^[2]

5.14%

Frequency of interest payments

^[5]

$ 3,811.0

2,869.0

quarterly

Debt Instrument, Payment Terms

no amortization of principal of the Securitization Notes is required prior to their anticipated repayment dates

Long-term Debt, Contingent Payment of Principal or Interest

as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the related indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes are required. As of the most recent quarterly measurement date the consolidated leverage ratio for both the Company and its subsidiaries as well as the Issuer and its subsidiaries exceeded 5.0:1 and, as a result, amortization payments are required.

Debt Instrument, Debt Default, Description of Violation or Event of Default

The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio

Secured Debt [Member] | Class A-2 Notes [Member]

As of December 31, 2021, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events

Secured Debt [Member] | Class A-2 Notes [Member] | 2021

$ 5.0

Long-term Debt, Maturity Date

Aug. 01, 2051

Secured Debt [Member] | Class A-2 Notes [Member] | 2016 [Member]

Secured Debt [Member] | Class A-2 Notes [Member] | 2018 [Member]

May 01, 2046

Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes [Member]

Nov. 01, 2048

^[3]

$ 750.0

$ 1,800.0

Repayments of Debt, Maturing in More than Three Months

5.25%

5.00%

$ 1,050.0

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

102.625%

Payment for Debt Extinguishment or Debt Prepayment Cost

6.0

$ 28.0

28.0

Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes due 2027 [Member]

We were in compliance with all debt covenants as of December 31, 2021

Senior Unsecured Notes [Member] | YUM Senior Unsecured Notes [Member]

^[4]

4.90%

Debt Instrument, Debt Default, Description of Violation or Event of Default

^[3]

$ 4,475.0

3,725.0

Our YUM Senior Unsecured Notes contain 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 in excess of $50 million ($100 million or more in the case of the YUM Senior Unsecured Notes issued in 2019 and subsequent years) will constitute a default under the YUM Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice

Senior Unsecured Notes [Member] | Unsecured Notes Due January 2032

Proceeds from Issuance of Debt

4.625%

$ 1,100.0

Senior Unsecured Notes [Member] | Senior Unsecured Notes Due November 2021 [Member]

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

3.75%

100.00%

London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan A and B Facilities and Revolving Facility [Member]

London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan B Facility [Member]

0.75%

Base Rate [Member] | Secured Debt [Member] | Term Loan A and B Facilities and Revolving Facility [Member]

1.75%

Base Rate [Member] | Secured Debt [Member] | Term Loan B Facility [Member]

0.00%

Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]

0.75%

Minimum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]

0.75%

Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]

0.00%

Maximum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]

1.50%

Debt Service Coverage Ratio - Rapid Amortization Events [Member] | Secured Debt [Member] | Securitization Notes [Member]

0.50%

Debt Service Coverage Ratio - Cash Trap Reserve Account [Member] | Secured Debt [Member] | Securitization Notes [Member]

debt service coverage ratio (as defined in the related indenture) of at least 1.1:1

debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1

Total Leverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]

During the most recent quarter ended December 31, 2021, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement

Fixed Charge Coverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]

require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less

Prepaid Expenses and Other Current Assets [Member]

fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1

Prepaid Expenses and Other Current Assets [Member] | Securitization Notes [Member]

^[6]

$ 250.0

$ 258.0

$ 138.0

Letter of Credit [Member] | Revolving Credit Facility [Member]

84.0

Outstanding letters of credit

$ 2.1

[1]	The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.
[2]	Includes the effects of the amortization of any discount and debt issuance costs.
[3]	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.
[4]	Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on LIBOR-based interest rates through December 31, 2021.
[5]	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.
[6]	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 cash held in reserve for Taco Bell Securitization interest payments (see Note 11).

Leases (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Mar. 18, 2020

Operating Lease, Cost

$ 145

$ 137

$ 115

Finance Lease, Right-of-Use Asset, Amortization

5

3

Finance Lease, Interest Expense

4

3

Finance Lease Cost

9

8

6

Sublease Income

(59)

(60)

(69)

Operating Lease, Payments

140

133

104

Finance Lease, Interest Payment on Liability

4

3

Finance Lease, Principal Payments

4

5

4

Right-of-Use Asset Obtained in Exchange for Operating Lease Liability

119

296

79

Right-of-Use Asset Obtained in Exchange for Finance Lease Liability

5

4

14

Operating lease liabilities transferred through refranchising

(25)

(3)

(25)

Capital lease and other debt obligations transferred through refranchising

(2)

(1)

$ (1)

Lease Right of Use Asset

^[1]

$ 846

$ 891

Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]

Accounts payable and other current liabilities

Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]

Debt, Current

Operating Lease, Liability, Noncurrent

Other Liabilities, Noncurrent

Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]

Long-term debt

Total Lease Liability

^[1]

$ 945

$ 992

Operating Lease, Weighted Average Remaining Lease Term

10 years 10 months 24 days

11 years 1 month 6 days

Finance Lease, Weighted Average Remaining Lease Term

12 years 1 month 6 days

12 years 2 months 12 days

Operating Lease, Weighted Average Discount Rate, Percent

4.90%

5.10%

Finance Lease, Weighted Average Discount Rate, Percent

6.40%

6.50%

Finance Lease, Liability

$ 64

Operating Leases, Future Minimum Payments Receivable

933

Finance Lease, Liability, Undiscounted Excess Amount

(25)

Lessee, Operating Lease, Liability, Undiscounted Excess Amount

(282)

Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount

(14)

Capital Leases, Net Investment in Direct Financing Leases, Minimum Payments to be Received

24

YUM_LesseeOperatingLeaseLeaseNotYetCommencedAssumptionAndJudgmentValueOfUnderlyingLiabilityAmount

$ 125

Lessee, Operating Lease, Term of Contract

20 years

Capital leases, future minimum commitments [Abstract]

$ 10

9

8

7

7

48

Capital leases, total future minimum commitments

89

Operating leases, future minimum commitments [Abstract]

131

128

119

109

101

575

Operating leases, total future minimum commitments

1,163

Direct Financing Lease, Lease Receivable

4

Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Two

3

Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three

3

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Four Years

3

Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Five Years

2

Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, after Rolling Year Five

23

Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, after Rolling Year Five

38

Lessor, Operating Lease, Payments to be Received, Next Twelve Months

84

Operating Leases, Future Minimum Payments Receivable, in Two Years

81

Lessor, Operating Lease, Payments to be Received, Three Years

78

Lessor, Operating Lease, Payments to be Received, Four Years

68

Lessor, Operating Lease, Payments to be Received, Five Years

72

Lessor, Operating Lease, Payments to be Received, Thereafter

550

Lease Agreements [Member]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets

$ 196

Other Liabilities [Member]

Operating Lease, Liability

881

Other Assets [Member]

Operating Lease, Right-of-Use Asset

809

$ 851

Property, Plant and Equipment [Member]

Finance Lease, Right-of-Use Asset

37

40

United States

Operating Lease, Right-of-Use Asset

516

499

Operating Lease, Liability

$ 577

$ 556

[1]

(a) U.S. operating lease right-of-use assets and liabilities totaled $516 million and $577 million, respectively, as of December 31, 2021, and $499 million and $556 million, respectively, as of December 31, 2020. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell restaurant support center.

Derivative Instruments (Details) - USD ($) $ in Millions	12 Months Ended
Derivative Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Cash Flow Hedging [Member]
Derivative, Notional Amount	$ 0
Cash Flow Hedging [Member] \| Interest Rate Swap [Member]
Derivative, Notional Amount	$ 1,550
Derivative, Maturity Date	Jul. 27, 2021
Cash Flow Hedging [Member] \| Forward-starting interest rate swap [Member]
Derivative, Notional Amount	$ 1,500
Derivative, Maturity Date	Mar. 01, 2025
Cash Flow Hedging [Member] \| Foreign Exchange Contract [Member]
Derivative, Notional Amount	$ 28	$ 39
July 2021 through March 2025 [Member] \| Fixed Income Interest Rate [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member] \| Term Loan A Facility [Member]
Derivative, Forward Interest Rate	3.81%
July 2021 through March 2025 [Member] \| Fixed Income Interest Rate [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member] \| Term Loan B Facility [Member]
Derivative, Forward Interest Rate	4.81%

Derivative Instruments (Details 2) - USD ($) $ in Millions	12 Months Ended
Derivative Instruments (Details 2) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	$ 34	$ (99)	$ (51)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(28)	(6)	25
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	(9)	24	16
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	5	1	(4)
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	(38)
Interest Rate Swap [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	34	(103)	(71)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	29	10	(17)
Foreign Exchange Contract [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	0	4	20
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (1)	$ (4)	$ (8)

Fair Value Disclosures (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Mar. 31, 2021

Sep. 30, 2020

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Mar. 15, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Equity Method Investment, Ownership Percentage

5.00%

Investment Owned, at Fair Value

$ 118

$ 31

Non-recurring basis | Fair Value, Inputs, Level 3 [Member]

$ 44

$ (206)

0

206

$ 0

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Refranchise Impairment

6

Remaining Net Book Value of Assets Measured at Fair Value

16

11

Non-recurring basis | Fair Value, Inputs, Level 3 [Member] | Closures and impairment (income) expenses

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

4

12

Non-recurring basis | Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Remaining Net Book Value of Assets Measured at Fair Value

6

Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Investments, Fair Value Disclosure

5

0

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

119

45

Other Noncurrent Liabilities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Liability, Fair Value, Gross Liability

38

28

Other Noncurrent Liabilities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward-starting interest rate swap [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Liability, Fair Value, Gross Liability

54

127

Prepaid Expenses and Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Liability, Fair Value, Gross Asset

0

1

Term Loan A Facility [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Term Loan B Facility [Member]

750

$ 750

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]

1,489

$ 1,500

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]

^[1]

750

1,800

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member]

^[1]

784

1,890

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]

^[1]

4,475

3,725

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Securitization Notes [Member]

^[1]

4,845

4,094

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Securitization Notes [Member] | Fair Value, Inputs, Level 2 [Member]

^[2]

3,811

2,869

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Term Loan A Facility [Member]

^[2]

3,872

3,015

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member]

^[1]

750

431

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Term Loan B Facility [Member]

^[1]

748

428

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member]

^[1]

1,489

1,916

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

^[1]

$ 1,490

$ 1,907

[1]	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.
[2]	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.

Pension, Retiree Medical and Retiree Savings Plans (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Amortization of prior service cost

$ 5.0

$ 4.0

Amortization of net loss

(12.0)

(14.0)

Pension settlement charges

(4.0)

Pension Unrealized gains (losses) arising during the year

$ (65.0)

8.0

$ 39.0

Maximum 401(k) participant contribution of eligible compensation

75.00%

Company match of participant contribution up to 6% of eligible compensation

100.00%

Maximum company match of participant contribution of eligible compensation

6.00%

Defined Contribution Plan, Cost

$ 11.0

10.0

11.0

Defined Benefit Plan, Real Estate

Defined Benefit Plan, Plan Assets, Investment within Plan Asset Category, Amount

$ 0.0

Fixed Income Investments

Equity securities, target allocation (in hundredths)

49.00%

Diversified credit investments in a range of public and credit securities

Equity securities, target allocation (in hundredths)

40.00%

Equity Securities

Equity securities, target allocation (in hundredths)

32.00%

Real Estate Funds

Equity securities, target allocation (in hundredths)

19.00%

Foreign Pension Plan [Member]

Benefit obligation at beginning of year

$ 362.0

Benefit obligation at end of year

351.0

362.0

440.0

Net periodic benefit cost

446.0

440.0

1.0

2.0

Actuarial net gain

(5.0)

(18.0)

446.0

440.0

Foreign Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities - US Large cap [Member]

446.0

440.0

102.0

0.0

102.0

0.0

102.0

0.0

102.0

United States

Benefit obligation at beginning of year

1,133.0

1,015.0

Service cost

8.0

6.0

Interest cost

32.0

35.0

39.0

Plan amendments

1.0

Special termination benefits

0.0

2.0

0.0

Defined Benefit Plan, Benefit Obligation, Benefits Paid

(33.0)

(46.0)

Settlement payments

67.0

0.0

Actuarial (gain) loss

(5.0)

118.0

Benefit obligation at end of year

$ 1,069.0

$ 1,133.0

$ 1,015.0

Discount rate (in hundredths)

3.00%

2.80%

3.50%

Actual return on plan assets

$ 1,014.0

$ 886.0

88.0

168.0

Employer contributions

8.0

6.0

Defined Benefit Plan, Plan Assets, Benefits Paid

(33.0)

(46.0)

Defined Benefit Plan, Plan Assets, Payment for Settlement

(67.0)

0.0

Funded status at end of year

1,010.0

1,014.0

$ 886.0

(59.0)

(119.0)

Assets for Plan Benefits, Defined Benefit Plan

43.0

0.0

Accrued benefit liability - current

(7.0)

(9.0)

Accrued benefit liability - non-current

(95.0)

(110.0)

Accrued benefit amounts recognized

(59.0)

(119.0)

Accumulated benefit obligation

1,048.0

1,111.0

Projected benefit obligation

102.0

1,133.0

Accumulated benefit obligation

98.0

1,111.0

Fair value of plan assets

0.0

1,014.0

Amortization of prior service cost

^[1]

6.0

5.0

6.0

Expected return on plan assets

(43.0)

(44.0)

Amortization of net loss

(14.0)

(1.0)

Net periodic benefit cost

17.0

19.0

8.0

Pension settlement charges

^[2]

0.0

(3.0)

Beginning of year

(111.0)

(136.0)

Pension Unrealized gains (losses) arising during the year

49.0

7.0

Other Comprehensive Income (Loss),Defined Benefit Plans, Curtailment Gain (Loss), before Tax

0.0

1.0

Amortization of net loss

14.0

Amortization of prior service cost

6.0

5.0

Prior service cost

(1.0)

(2.0)

End of year

(43.0)

(111.0)

(136.0)

Actuarial net gain

33.0

96.0

Prior service cost

(10.0)

(15.0)

Amounts recognized as a loss in Accumulated Other Comprehensive Income

$ (43.0)

$ (111.0)

$ (136.0)

Rate of compensation increase (in hundredths)

3.00%

Discount rate (in hundredths)

2.80%

3.50%

4.60%

Long-term rate return on plan assets (in hundredths)

5.25%

5.50%

5.75%

Rate of compensation increase (in hundredths)

3.00%

Net Payable For Unsettled Transactions

$ 1,010.0

$ 1,014.0

$ 886.0

$ 58.0

212.0

Approximate percentage of total plan assets in investment that includes YUM stock (in hundredths)

1.00%

$ 47.0

50.0

52.0

57.0

59.0

293.0

United States | Defined Benefit Plan, Equity Securities, Common Stock [Member]

1,010.0

1,014.0

$ 886.0

Value of mutual fund held as an investment that includes YUM stock

0.2

0.3

United States | Fair Value, Inputs, Level 1 [Member] | Cash [Member]

9.0

237.0

9.0

237.0

9.0

United States | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member]

237.0

9.0

^[3]

10.0

^[3]

80.0

10.0

^[3]

80.0

10.0

United States | Fair Value, Inputs, Level 1 [Member] | Equity Securities - US Large cap [Member]

^[3]

80.0

10.0

409.0

0.0

409.0

0.0

409.0

United States | Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, US [Member]

0.0

409.0

^[4]

164.0

^[4]

41.0

164.0

^[4]

41.0

164.0

United States | Fair Value, Inputs, Level 2 [Member] | Debt Security, Corporate, US [Member]

^[4]

41.0

164.0

148.0

49.0

148.0

49.0

148.0

United States | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member]

49.0

148.0

^[5]

30.0

^[5]

30.0

^[5]

30.0

United States | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities

^[5]

30.0

^[5]

354.0

^[5]

175.0

354.0

^[5]

175.0

354.0

United States | Fair Value, Inputs, Level 1, 2 and 3

^[5]

175.0

354.0

1,226.0

1,068.0

1,226.0

1,068.0

1,226.0

United States | FairValueInputsLevel1AndLevel2

1,068.0

1,226.0

^[6]

1,226.0

^[6]

612.0

1,226.0

^[6]

612.0

1,226.0

United States | Fair Value Measured at Net Asset Value Per Share

^[6]

612.0

1,226.0

^[7]

0.0

^[7]

456.0

0.0

^[7]

456.0

0.0

Other Postretirement Benefits Plan [Member]

^[7]

456.0

0.0

Accumulated benefit obligation

42.0

46.0

Net periodic benefit cost

1.0

Actuarial net gain

(6.0)

$ (4.0)

2022

3.0

2027 - 2031

$ 13.0

[1]	Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
[2]	Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
[3]	Short-term investments in money market funds.
[4]	Securities held in common or collective trusts.(c)Investments held directly by the Plan.
[5]	Includes securities held in common or collective trusts and investments held directly by the Plan.
[6]	2021 and 2020 exclude net unsettled trade payables of $58 million and $212 million, respectively.
[7]	Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

Share-based and Deferred Compensation Plans (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Risk-free interest rate (in hundredths)

0.50%

1.00%

2.50%

Expected term (years)

6 years 3 months 18 days

5 years 9 months 18 days

6 years 6 months

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate

27.00%

24.00%

22.00%

Expected dividend yield (in hundredths)

1.90%

1.80%

Options outstanding at the end of the year (in shares)

403

Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share)

$ 74.80

SARs outstanding at the end of the year (in shares)

11,867

SARs outstanding at the end of the year, Weighted-average exercise price (in dollars per share)

$ 80.14

Share-based Payment Arrangement, Expense, Tax Benefit

$ 75.0

$ 97.0

$ 59.0

15.0

18.0

9.0

Cash received from stock options exercises

11.0

10.0

1.0

Share-based Payment Arrangement, Exercise of Option, Tax Benefit

$ 72.0

$ 58.0

$ 66.0

Long Term Incentive Plans [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Minimum vesting period of outstanding awards (in years)

immediate

Maximum vesting period of outstanding awards (in years)

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

10 years

Approximate number of shares available for grant (in shares)

24,000

Executive Income Deferral Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of Company match on amount deferred (in hundredths)

33.00%

Stock Options and Stock Appreciation Rights [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Minimum vesting period of outstanding awards (in years)

1.5

Options outstanding at the end of the year (in shares)

12,270

^[1]

15,562

Granted (in shares)

757

Exercised (in shares)

(3,720)

Forfeited or expired (in shares)

(329)

Exercisable at the end of the year (in shares)

8,405

Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share)

$ 79.96

$ 74.52

Granted, Weighted-average exercise price (in dollars per share)

103.85

Exercised, Weighted-average exercise price (in dollars per share)

60.77

Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price

94.60

Exercisable at the end of the year, Weighted-average exercise price (in dollars per share)

$ 72.53

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term

6 years 1 month 13 days

Share Based Compensation Arrangement By Share Based Payment Award, Options, Exercisable Weighted Average Remaining Contractual Term

5 years 4 months 6 days

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

$ 723.0

Exercisable at the end of the year, Aggregate intrinsic value (in dollars)

$ 557.0

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 21.32

$ 18.83

$ 19.82

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value

$ 234.0

$ 170.0

$ 204.0

Unrecognized compensation cost

30.0

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value

35.0

70.0

31.0

Restricted Stock Units And Performance Share Units [Member]

29.0

75.0

39.0

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized compensation cost

81.0

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value

$ 20.0

15.0

14.0

Unvested RSUs and PSUs

1,400

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Units (RSUs) [Member] | Executive Income Deferral Plan [Member]

$ 16.0

20.0

12.0

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period (in years)

2 years

Performance Share Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Executives [Member] | Long Term Incentive Plans [Member]

$ 30.0

$ 2.0

$ 8.0

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

10 years

Vesting period (in years)

4 years

Graded vesting schedule of grants made to executives under other stock award plans

25%

Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period

6 years 3 months 18 days

[1]	Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

Shareholders' Equity (Details) - USD ($)
shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Jun. 30, 2021

Repurchase Of Shares Of Common Stock [Line Items]

Value of share repurchases with trade dates during the current reporting date but with settlement dates subsequent to the current reporting date.

12,981

^[1]

2,419

^[1]

7,788

^[2]

$ 11

$ 5

Number of shares repurchased with trade dates during the current reporting date but with settlement dates subsequent to the current reporting date.

100

Repurchase Of Shares Of Common Stock [Line Items]

$ 1,580

^[1]

$ 250

^[1]

$ 810

^[2]

May 2021

8,235

0

Repurchase Of Shares Of Common Stock [Line Items]

$ 1,050

$ 0

November 2019 [Member]

4,746

2,419

0

Repurchase Of Shares Of Common Stock [Line Items]

$ 530

$ 250

$ 0

August 2018 [Member]

0

7,788

Repurchase Of Shares Of Common Stock [Line Items]

$ 0

$ 810

May 2021

Stock Repurchase Program, Authorized Amount

2,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 950

November 2019 [Member]

Repurchase Of Shares Of Common Stock [Line Items]

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 1,200

[1]	2021 amount excludes and 2020 amount includes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.
[2]	2019 amount excludes the effect of $5 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2018, but settlement dates subsequent to December 31, 2018.

Shareholders' Equity (Details 2) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance

$ (411)

Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance

86

$ (23)

$ (54)

(325)

(411)

Defined Benefit Plan, Amortization of Gain (Loss)

(12)

(14)

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

5

4

Pension settlement charges

(4)

Translation Adjustment and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance

(182)

(221)

Amounts reclassified from accumulated OCI, net of tax

(24)

39

0

Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance

(24)

39

(206)

(182)

(221)

Pension and Post-Retirement Benefit Plan Losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance

(96)

(104)

^[1]

Amounts reclassified from accumulated OCI, net of tax

50

(6)

12

14

Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance

62

8

(34)

(96)

(104)

^[1]

Net Unrealized Loss on Derivative Instruments

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance

(133)

(63)

^[2]

Amounts reclassified from accumulated OCI, net of tax

25

(75)

23

5

Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance

48

(70)

(85)

(133)

(63)

^[2]

Total

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance

(411)

(388)

Amounts reclassified from accumulated OCI, net of tax

51

(42)

35

19

Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance

86

(23)

$ (325)

$ (411)

$ (388)

[1]

Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2021 include amortization of net losses of $12 million, amortization of prior service cost of $5 million and related income tax benefit of $4 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2020 include amortization of net losses of $14 million, amortization of prior service cost of $4 million and related income tax benefit of $4 million. See Note 15.

[2]

See Note 13 for details on amounts reclassified from AOCI.

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended				5 Months Ended		6 Months Ended	7 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 09, 2021	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2021	Jul. 21, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
U.S. and foreign income before income taxes [Abstract]
U.S.										$ 1,062	$ 684	$ 466
Foreign										612	336	907
Income from Continuing Operations Before Income Taxes										1,674	1,020	1,373
Details of income tax provision (benefit) [Abstract]
Current: Federal										45	37	129
Current: Foreign										214	121	166
Current: State										40	23	16
Total current income tax provision (benefit)										299	181	311
Deferred: Federal										21	(21)	(16)
Deferred: Foreign										(227)	(29)	(213)
Deferred: State										6	(15)	(3)
Deferred income taxes										200	65	232
Income Tax Expense (Benefit), Total										$ 99	$ 116	$ 79
Effective income tax rate reconciliation [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent										21.00%	21.00%	21.00%
State income tax, net of federal tax benefit (in hundredths)										1.80%	1.00%	0.90%
Statutory rate differential attributable to foreign operations (in hundredths)										(1.00%)	(0.90%)	0.90%
Effective Income Tax Rate Reconciliation Adjustments To Reserves And Prior Years										1.10%	(1.70%)	2.30%
Effective Income Tax Rate Reconciliation Share Based Compensation										(2.70%)	(3.40%)	(3.60%)
Change in valuation allowance (in hundredths)										(0.80%)	(2.50%)	(0.60%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Percent										(11.30%)	(0.30%)	(16.60%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent										1.40%	0.00%	0.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent										(3.80%)	(2.50%)	0.00%
Other, net (in hundredths)										0.20%	0.70%	1.40%
Effective income tax rate (in hundredths)										5.90%	11.40%	5.70%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount										$ 22	$ 11	$ 34
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount												20
Employee Service Share-based Compensation, Deferred Tax Benefit from Compensation Expense										46	35	49
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount										15	22
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability			$ 64
Deferred Tax Assets, Gross	$ 1,541					$ 1,636		$ 1,541		1,541	1,636
Deferred Tax Assets, Net	716					553		716		$ 716	553
Limit on deductibility of interest expense										30.00%
Tax Cuts and Jobs Act, Income Tax Expense (Benefit)										$ 23
Unrecognized Tax Benefits	116					175		116		116	175	188
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	75							75		75
Additions on tax positions related to the current year										13	5
Additions for tax positions of prior years										41	34
Reductions for tax positions of prior years										(110)	(22)
Reductions for settlements										(3)	(30)
Reductions due to statute expiration										0	0
Foreign currency translation adjustment										0	0
Income Tax Examination, Penalties and Interest Expense										4	2	13
Income Tax Examination, Penalties and Interest Accrued	3					$ 1		$ 3		3	1
UNITED KINGDOM
Effective income tax rate reconciliation [Abstract]
Deferred Tax Assets, Gross												586
Deferred Tax Assets, Net												220
non-United Kingdom
Effective income tax rate reconciliation [Abstract]
Deferred Tax Assets, Gross												13
Deferred Tax Assets, Net												6
Intra-Entity IP Transfers [Member]
Details of income tax provision (benefit) [Abstract]
Deferred income taxes											3	226
Effective income tax rate reconciliation [Abstract]
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 35	$ 152								152	(25)
Deferred Tax Assets, Increases [Member]
Effective income tax rate reconciliation [Abstract]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount										(31)	(64)
Deferred Tax Assets, Decreases
Effective income tax rate reconciliation [Abstract]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount										355	45
Deferred Tax Assets, Other Adjustments
Effective income tax rate reconciliation [Abstract]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount										$ 3	17
Tax Year 2020 [Member]
Effective income tax rate reconciliation [Abstract]
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount											$ 6
Foreign [Member]
Effective income tax rate reconciliation [Abstract]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent		19.00%	25.00%	19.00%	19.00%	19.00%	17.00%	25.00%	17.00%
Deferred Compensation, Share-based Payments [Member]
Effective income tax rate reconciliation [Abstract]
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount												$ 18

Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net deferred tax assets (liabilities) [Abstract]
Operating Loss Carryforwards	$ 186	$ 181
Deferred Tax Assets, Capital Loss Carryforwards	72	3
Deferred Tax Assets, Tax Credit Carryforwards	194	226
Employee benefits	68	82
Share-based compensation	51	58
Lease related liabilities	236	199
Various liabilities	52	47
Deferred Tax Assets, Derivative Instruments	0	50
Deferred Tax Assets, Goodwill and Intangible Assets	560	678
Deferred Tax Assets, Property, Plant and Equipment	35	31
Deferred income and other	87	81
Gross deferred tax assets	1,541	1,636
Deferred tax asset valuation allowances	(462)	(789)	$ (787)
Net deferred tax assets	1,079	847
Intangible assets, including goodwill	(3)	(1)
Property, plant and equipment	(85)	(75)
Deferred Tax Liabilities Deemed Repatriation	(200)	(161)
Deferred Tax Liabilities, Other Finite-Lived Assets	(24)	(15)
Other	(51)	(42)
Gross deferred tax liabilities	(363)	(294)
Deferred Tax Assets, Net	716	553
Reported in Consolidated Balance Sheets as:
Deferred Tax Assets, Net	$ 716	$ 553
UNITED KINGDOM
Net deferred tax assets (liabilities) [Abstract]
Gross deferred tax assets			586
Deferred Tax Assets, Net			220
Tax Credit Carryforward, Valuation Allowance			366
Reported in Consolidated Balance Sheets as:
Deferred Tax Assets, Net			220
non-United Kingdom
Net deferred tax assets (liabilities) [Abstract]
Gross deferred tax assets			13
Deferred Tax Assets, Net			6
Tax Credit Carryforward, Valuation Allowance			7
Reported in Consolidated Balance Sheets as:
Deferred Tax Assets, Net			$ 6

Income Taxes (Details 3) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2019
Operating and capital loss carryforwards [Line Items]
Foreign Earnings Repatriated	$ 3,600
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent	100.00%
Operating Loss Carryforwards	$ 186		$ 181
Operating Loss and Tax Credit Carryforward, Amount	2,826
Deferred Tax Assets, Tax Credit Carryforwards	194		226
Deferred Tax Assets, Tax Deferred Expense	452
Operating Loss and Tax Credit Carryforward, Valuation Allowance	(367)
Deferred Tax Liabilities, Other	(51)		(42)
Unrecognized Tax Benefits	116		175	$ 188
Forecast [Member]
Operating and capital loss carryforwards [Line Items]
Unrecognized Tax Benefits		$ 3
Other Noncurrent Liabilities [Member]
Operating and capital loss carryforwards [Line Items]
Deferred Tax Liabilities, Other	(8)		$ 0
Foreign [Member] \| Indefinite
Operating and capital loss carryforwards [Line Items]
Operating Loss Carryforwards	229
Tax Credit Carryforward, Amount	289
Deferred Tax Assets, Operating Loss Carryforwards	59
Deferred Tax Assets, Tax Credit Carryforwards	72
Operating Loss Carryforwards, Valuation Allowance	(35)
Tax Credit Carryforward, Valuation Allowance	(72)
Foreign [Member] \| 2022 - 2037
Operating and capital loss carryforwards [Line Items]
Operating Loss Carryforwards	59
Deferred Tax Assets, Operating Loss Carryforwards	12
Operating Loss Carryforwards, Valuation Allowance	(11)
Foreign [Member] \| 2026 - 2030
Operating and capital loss carryforwards [Line Items]
Tax Credit Carryforward, Amount	187
Deferred Tax Assets, Tax Credit Carryforwards	187
Tax Credit Carryforward, Valuation Allowance	(172)
State and Local Jurisdiction [Member] \| Indefinite
Operating and capital loss carryforwards [Line Items]
Tax Credit Carryforward, Amount	487
Deferred Tax Assets, Tax Credit Carryforwards	22
Tax Credit Carryforward, Valuation Allowance	(21)
State and Local Jurisdiction [Member] \| 2022 - 2040
Operating and capital loss carryforwards [Line Items]
Operating Loss Carryforwards	1,408
Deferred Tax Assets, Operating Loss Carryforwards	59
Operating Loss Carryforwards, Valuation Allowance	(43)
State and Local Jurisdiction [Member] \| 2023
Operating and capital loss carryforwards [Line Items]
Tax Credit Carryforward, Amount	7
Deferred Tax Assets, Tax Credit Carryforwards	7
Tax Credit Carryforward, Valuation Allowance	(5)
Domestic Tax Authority \| 2036 - 2037
Operating and capital loss carryforwards [Line Items]
Operating Loss Carryforwards	18
Deferred Tax Assets, Operating Loss Carryforwards	4
Operating Loss Carryforwards, Valuation Allowance	0
Domestic Tax Authority \| Indefinite
Operating and capital loss carryforwards [Line Items]
Operating Loss Carryforwards	61
Tax Credit Carryforward, Amount	81
Deferred Tax Assets, Operating Loss Carryforwards	13
Deferred Tax Assets, Tax Credit Carryforwards	17
Operating Loss Carryforwards, Valuation Allowance	0
Tax Credit Carryforward, Valuation Allowance	$ (8)

Reportable Operating Segments (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2020

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

$ 6,584

$ 5,652

$ 5,597

2,139

1,503

1,930

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest

1,060

1,064

917

1,674

1,020

1,373

Other Pension (income) expense

^[1]

86

74

(67)

^[1]

(7)

(14)

(4)

Interest expense, net

^[1]

(544)

(543)

(486)

164

146

112

230

160

196

^[2]

$ 5,852

5,966

5,852

^[3]

3,026

3,032

3,026

Unlocking Opportunity Initiative [Member]

19

172

5

$ 50

COVID-19 Relief [Member]

25

Goodwill [Member]

$ 5

$ 139

144

^[4]

2,793

2,272

2,491

1,230

922

1,052

28

29

30

60

59

81

^[2]

2,011

2,313

2,011

^[3]

1,160

1,069

1,160

^[4]

2,238

2,031

2,079

758

696

683

53

56

59

62

42

76

^[2]

1,387

1,397

1,387

^[3]

925

904

925

^[4]

1,028

1,002

1,027

387

335

369

32

24

15

18

28

33

^[2]

804

850

804

^[3]

415

423

415

525

347

0

2

(22)

0

28

25

0

56

16

0

^[2]

537

586

537

Corporate and Other [Member]

458

516

458

Franchise and property expenses

^[1],[5]

(260)

(312)

(188)

^[1],[6]

1

(4)

(14)

Refranchising gain (loss)

^[1]

35

34

37

Other (income) expense

^[1],[7]

(14)

(146)

(9)

23

12

8

34

15

6

^[2],[8]

1,113

820

1,113

^[3]

68

120

68

U.S.

3,600

3,200

$ 3,000

General and Administrative Expense [Member]

$ 3,000

2,800

3,000